Less than three weeks before the Super Bowl kicks off in Las Vegas, a prominent casino executive has pled guilty to federal anti-money laundering charges in a case that has ensnared multiple all-star players and handlers in numerous professional sports.
Scott Sibella, a longtime Las Vegas casino executive, pled guilty on Wednesday in U.S. District Court in Los Angeles to one count of failure to file reports of suspicious transactions required to be made by casinos, pursuant to the Bank Secrecy Act (BSA). Sibella, who served as president of the MGM Grand from at least 2017 until February of 2019, is facing a fine of $250,000 and up to five years in federal prison.
While employed at MGM Grand, Sibella allowed an illegal bookmaker to gamble at MGM Grand and d properties with illicit proceeds, according to the plea agreement. The bookmaker, former minor league baseball player Wayne Nix, is awaiting sentencing on one count of conspiracy to operate an illegal gambling business and one count of subscribing to a false tax return.
Sibella not only allowed Nix to gamble at MGM Grand, he authorized the bookmaker to receive complimentary benefits at the property, including meals, room, board, and golf trips with senior executives and other high net-worth customers, the U.S. Department of Justice wrote in a statement.
Due to Sibella’s failure to report the suspicious activity by Nix, MGM Grand failed to file at least one suspicious activity report (SAR) regarding Nix’s source of funds in relation to Nix’s cash payments to MGM Grand, according to federal prosecutors.
“Financial institutions have a duty under the law to report criminal or suspicious activity occurring at the institution though SARs,” said First Assistant United States Attorney Joseph McNally. “Our office will aggressively prosecute corporate executives and employees who turn a blind eye to criminal actors depositing illegal funds at casinos and financial institutions.”
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Shortly after Nix ended his minor-league career in 2001, he opened an illegal bookmaking business in the Los Angeles area, according to prosecutors. Employing a bevy of agents to place and accept wagers, Nix facilitated the bets through Sand Island Sports, a Costa Rica company.
By March 2022, five individuals, including Nix, plead guilty for their roles in facilitating the illegal bookmaking operation. Former sports wagers with the Nix operation, according to the Washington Post.
A Southern California check-cashing business pled guilty in 2022 to a charge of failure to maintain an effective anti-money laundering program. Celebrity Financial, which ran the Sherman Oaks Check Cashing store, itted to cashing more than $18 million in checks from several clients of the illegal bookmaking operation.
As it relates to Sibella, the former MGM executive failed to alert the casino’s compliance staff that Nix was an illegal sports bookmaker, prosecutors allege. Sibella itted to law enforcement in 2022 that he believed Nix was involved in illegal sports bookmaking, according to court documents unsealed on Thursday, but told authorities that he did not believe Nix did anything to “cheat the casino.”
Separately, the Las Vegas casinos MGM Grand and The Cosmopolitan have entered into settlements that require them to pay a combined $7.45 million, according to the Justice Department. As part of the Bank Secrecy Act, such casinos are required to implement and maintain programs designed to prevent criminals from using their properties to launder the large sums of cash.
Under a non-prosecution agreement with the Justice Department, the two casinos accepted responsibility for laundering illicit funds owned by Nix and failing to properly file suspicious activity reports (SARs) on the former baseball player.
“The non-prosecution agreements with MGM Grand Hotel, LLC and The Cosmopolitan of Las Vegas should serve as notice to other casinos and financial institutions that evading BSA obligations can carry severe consequences, and we will investigate suspected non-compliance,” said IRS Special Agent Tyler Hatcher.
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After Sibella left MGM Resorts, he became president of Resorts World Las Vegas in April 2019, ahead of the 2021 opening of the $4.3 billion property on the north end of the Las Vegas Strip.
Resorts World, which is owned by The Genting Group, a Malaysian conglomerate, was not named in Thursday’s indictment. Targeted in the federal investigation by the IRS Criminal Division, Sibella was terminated by Resorts World last September. Sibella, according to Resorts World, was let go after he “violated company policies and the of his employment.”
“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 in a statement provided to the Wall Street Journal.
According to the Journal, which first reported the story, Nix arrived at the MGM Grand in 2018 eager to pay off a $120,000 gambling debt. Two VIP hosts assigned to Nix were also aware of the illegal bookmaking scheme, the Journal reported.
The hosts allowed Nix to continue to gamble with MGM Grand and properties, allowed him to present and use illicit proceeds at casino properties, and provided him with complimentary benefits to encourage him to spend his illicit proceeds at the casino, prosecutors allege. Neither host is currently employed at MGM Resorts.
Sibella is scheduled to be sentenced on May 8 in U.S. District Court, the Justice Department announced.
