Casino mogul Steve Wynn's former corporation was fined a $ 20 million record of Nevada game regulators on Tuesday for failing to investigate sexual abuse claims made against him before he left a year ago.
Punishment against Wynn Resorts Ltd. ending a survey that began after The Wall Street Journal reported that several women said the company's founder harassed or attacked them.
Wynn Resorts will keep its gaming concert under the Nevada Gaming Commission decision approved by four commissioners who set the fine.
"It's not about a man," said Commissioner Philip Pro, a former federal judge. "It's about a mistake in a corporate culture to effectively control itself as it should."
Pro called the commission "guardians of the integrity of gambling" responsible for ensuring that licensees "do not do things that bring disrepute to the industry" in Nevada.
The previous highest bow in state history was $ 5.5 million in 201
Commissioners John Moran Jr. and Deborah Fuetsch said
Chairman Tony Alamo said $ 20 million "makes it clear to all licensees that this culture cannot be tolerated," while allowing the publicly traded company "cure".
] "It must move needles here," he said. "It must ring all over the country."
Steve Wynn himself was not part of the settlement, and neither Wynn nor any personal representatives participated in the Commission's hearing. Wynn has denied all charges against him. One of his lawyers, Colby Williams, said by phone that he was aware of the fine, but refused to comment.
The commission has frozen Wynn's Nevada casino license. No other disciplinary action has been taken against him or the other board members and managers named in the settlement. No one is still with the company.
"Isn't it strange that the people … who are the subject of this are not even in the room today?" Moran observed the new slate of the company's managers and board members sitting in front of him. "The people who are in this room now … they are left with the train wreck to try to fix it."
Wynn stepped down as chairman and CEO of the company in February 2018 after reports that he harassed or attacked more women. He also sold the company's shares.
Details of the survey and its findings were not disclosed.
However, Wynn Resorts acknowledged in settlement documents that several former board members and executives knew about, but failed to investigate after Wynn paid $ 7.5 million in 2005 to a former salon employee who claimed he raped her and that she became pregnant as follow.
"Mr. Wynn … engaged in intimate and sexual behavior with (company) employees, the decision documents say.
The company also failed to investigate a cocktail server's claim that from 2005 to 2006 Wynn pushed her into a not -spiritual sexual relationship, the documents said. Wynn paid a private settlement of $ 975,000 to the woman and her parents, the settlement said.
Wynn Resorts has not admitted or denied that company executives were made aware of allegations that Wynn sexually harassed several airline charges on company flights.
"The company's first response during this period was driven by Mr. Wynn's strained denial of all claims," said a statement by Wynn Resort's spokesman Michael Weaver. It acknowledged a "short-term focus on defending" Mr. Wynn, instead of reassuring employees of the company's commitment to a safe and respectful working environment. "
The company points to changes in wholesale leadership, b. Otherwise, hiring a new CEO requires new sexual harassment prevention training for all employees and adds a women's leadership to promote workplace equality.
"Overall, these 25,000 employees, led by CEO Matt Maddox and a reshaped board, are the company that stands before the commission today, not Steve Wynn," the company said in its December 25.
A company settlement is also in Massachusetts, where game regulators launched a similar survey of whether Wynn Resorts should be allowed to operate a more than $ 2 billion residential casino resort slated to open in June.
Wynn's name was removed project now called Encore Boston Harbor.  Steve Wynn sued to prevent the release of a Massachusetts Gaming Commission report on the probe, claiming that it contains confidential information protected by lawyer client privileges. A hearing is scheduled Monday before a Nevada judge who has temporarily blocked the release of the report.
The Nevada Final "puts an unfortunate reference, but a necessity for the industry and Wynn Resorts as a company," said Jennifer Roberts, associate director of the International Center for Gaming Regulation at the University of Nevada, Las Vegas.
"It will be interesting to see how this affects what Massachusetts should do," she added.
Wynn Resorts traded at more than $ 200 per share before the Wall Street Journal report, and closed at around $ 165 after Wynn's resignation. Company inventory closed at $ 130.45 on Tuesday, up $ 1.25.