https://mynewsla.com/crime/2024/01/25/ex-casino-exec-admits-failing-to-report-o-c-mans-suspicious-transactions/
A former president of the MGM Grand casino pleaded guilty to a federal criminal charge for failing to file required reports of suspicious transactions made by a Newport Coast man who operated an illegal gambling business, officials announced Thursday.
Scott Sibella, 61, of Las Vegas, pleaded guilty Wednesday in Los Angeles federal court to one count of failure to file reports of suspicious transactions. Such reports are required by the Bank Secrecy Act to be filed by casinos, according to the U.S. Department of Justice.
In related matters that resolve an investigation into alleged violations of money laundering laws and the BSA, MGM Grand and The Cosmopolitan of Las Vegas casinos have entered into settlements that require them to pay a combined $7.45 million, undergo external review and enhance their anti-money laundering compliance program, the DOJ said.
According to his plea agreement, Sibella was the president of the MGM Grand from at least August 2017 until February 2019, during which time he knew that a casino patron, Wayne Nix, ran and operated an illegal bookmaking business.
Despite knowing this, Sibella allowed Nix to gamble at MGM Grand and affiliated properties with illicit proceeds generated from the illegal gambling business without notifying the casino’s compliance department. Not only did Sibella allow Nix to gamble at the casino, he also authorized Nix to receive complimentary benefits at the casino, including meals, room, board and golf trips with senior executives and other high net-worth customers of the casinos to further encourage Nix to patronize the casino and/or other affiliated properties.
According to court documents unsealed Thursday, Sibella admitted to law enforcement in 2022 that he believed 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 U.S. District Judge Dolly Gee, who scheduled a May 8 sentencing hearing, at which time Sibella will face up to 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.
