MGM Executive Reaches Plea Deal On Money Laundering ChargesCasinos Also Agree To Pay $8.4 Million |
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The former president of MGM Grand pleaded guilty last week for violating federal anti-money laundering laws in a case involving former minor league baseball player turned underground bookie Wayne Nix.
Scott Sibella could now receive a $250,000 fine and five years in prison. Despite pleading guilty, Sibella denied any personal gain from the money laundering scheme that was carried out at MGM Grand.
“I take full responsibility for my actions and inactions, but I must make clear I took no action for my personal benefit or inurement,” Sibella said.
Details On the Betting Scheme
The most recent developments come after a federal investigation involving Nix. Prosecutors allege the bookmaker visited the MGM Grand several times over three years and wagered up to $3 million. Sibella never alerted federal officials as required under anti-money laundering laws.
The investigation found that Nix and his associates were treated to numerous perks including golf trips with company executives as well as free rooms, meals, and more. As part of his plea, Sibella also admitted to knowing Nix ran an underground sportsbook.
That enterprise used professional athletes to help acquire bettors and also used the relationship with the MGM Grand to expand as well, according to the investigation. In 2022, Nix and several associates pleaded guilty to running the illegal operation and other crimes, including tax violations.
Sibella, who later worked as president of Resorts World Las Vegas before being let go last year, admitted to federal officials that he knew Nix ran an illegal business, but allowed him and others involved to gamble “because he wasn’t doing anything to cheat the casino.”
Organized crime have targeted casinos in recent years to launder cash gained by illegal means.
“Mr. Sibella’s willful violation of Bank Secrecy Act obligations to report suspicious activities put the credibility of the MGM Grand at risk,” IRS special agent Tyler Hatcher said. “The Bank Secrecy Act mandates reporting of suspicious activities to protect financial institutions from becoming participants in money-laundering activities often benefitting criminal or terrorist organizations.”
The MGM Grand and Cosmopolitan also agreed to significant fines as part of non-prosecution agreements with the Justice Department as well. MGM Grand will pay $7 million with the Cosmopolitan paying also $1.4 million.
The two properties also agreed to step up money laundering protections and compliance procedures. The last year has seen MGM Resorts in the news quite a bit – from a major cyber security breach to a lawsuit by a high roller who alleges he was drugged at the MGM Grand.
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