Former MGM Grand President Scott Sibella admits to violating anti-money laundering laws

Lea Hogg January 29, 2024

Share it :

Former MGM Grand President Scott Sibella admits to violating anti-money laundering laws

Scott Sibella, ex-president of MGM Grand casino, has admitted to a federal criminal charge for neglecting to report suspicious transactions, a mandate under the Bank Secrecy Act (BSA). This announcement was made by the Justice Department.

Sibella’s guilty plea

In a related development, MGM Grand and The Cosmopolitan of Las Vegas casinos have agreed to a $7.45 million settlement following an investigation into alleged violations of money laundering laws and the BSA. The settlement stipulates that the casinos must undergo an external review and bolster their anti-money laundering (AML) compliance program.

Sibella, 61, from Las Vegas, confessed to one count of failure to report suspicious transactions required by casinos. His plea agreement reveals that he was aware of a casino patron, Wayne Nix, running an illegal bookmaking business during his tenure as president of the MGM Grand from August 2017 to February 2019.

Sibella’s admission

Despite this knowledge, Sibella permitted Nix to gamble at MGM Grand and its affiliated properties with illicit proceeds from the illegal gambling business, without alerting the casino’s compliance department. Sibella not only allowed Nix to gamble at the casino but also granted him complimentary benefits, including meals, room, board, and golf trips with senior executives and other high net-worth customers of the casinos. This was done to incentivize Nix to frequent the casino and/or other affiliated properties. Despite being trained and knowledgeable about his duties, Sibella failed to inform MGM compliance personnel that Nix was an illegal sports bookmaker. As a result of Sibella’s failure to report the suspicious activity by Nix, MGM Grand failed to file at least one suspicious activity report regarding Nix’s source of funds in relation to Nix’s cash payments to MGM Grand.

Court documents unsealed today reveal that Sibella admitted to law enforcement in 2022 that he suspected Nix was involved in illegal sports bookmaking, but “didn’t want to know because of my position,… If we know, we can’t allow them to gamble…. I didn’t ask, I didn’t want to know I guess because he wasn’t doing anything to cheat the casino.”

Sibella pleaded guilty before United States District Judge Dolly M. Gee, who scheduled a May 8 sentencing hearing. At this hearing, Sibella will face a maximum penalty of five years in prison and a fine of $250,000. Nix pleaded guilty in April 2022 to one count of conspiracy to operate an illegal gambling business and one count of subscribing to a false tax return. He is scheduled to be sentenced on March 6.

First Assistant United States Attorney Joseph McNally stated, “Financial institutions have a duty under the law to report criminal or suspicious activity occurring at the institution though SARs. 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.” HSI Los Angeles Assistant Special Agent in Charge Jennifer Reyes added, “Turning a blind eye to laundering of illicit funds and knowingly avoiding reporting requirements puts public safety at risk. The El Camino Real Financial Crimes Task Force is uniquely prepared to investigate, disrupt, and prosecute the bad actors, holding them accountable for their actions.”

MGM and Caesars face class action lawsuits following cyberattacks (www.larryutley.com)