Former MGM Grand President Pleads Guilty to Bank Secrecy Act Violation; MGM Grand and The Cosmopolitan Settle for $7.45 Million

The former president of MGM Grand casino, Scott Sibella, has pleaded guilty to a federal criminal charge for violating the Bank Secrecy Act (BSA) by failing to report suspicious transactions. The Justice Department disclosed this information, highlighting related settlements with MGM Grand and The Cosmopolitan of Las Vegas casinos, requiring them to pay a combined $7.45 million, undergo external review, and enhance their anti-money laundering (AML) compliance programs.

Sibella, 61, of Las Vegas, entered his guilty plea on Wednesday to one count of failure to file reports of suspicious transactions as required by casinos under the BSA. The plea agreement revealed that during his tenure as the president of MGM Grand from August 2017 to February 2019, Sibella knowingly allowed a casino patron, Wayne Nix, to gamble with proceeds from an illegal bookmaking business. Despite being aware of Nix's illicit activities, Sibella failed to report the suspicious transactions to the casino's compliance department.

Moreover, Sibella authorized Nix to receive complimentary benefits at the casino, such as meals, accommodations, and golf trips with senior executives and high-net-worth customers, further incentivizing Nix to patronize the casino and affiliated properties. Sibella's failure to report Nix's suspicious activity led to MGM Grand's failure to file at least one suspicious activity report related to Nix's source of funds.

Court documents unsealed on the same day revealed that Sibella admitted in 2022 to knowing about Nix's involvement in illegal sports bookmaking but chose not to act due to his position. Sibella's sentencing is scheduled for May 8, where he faces a maximum penalty of five years in prison and a $250,000 fine.

Wayne Nix had previously pleaded guilty in April 2022 to charges related to operating an illegal gambling business and subscribing to a false tax return. He is set to be sentenced on March 6.

First Assistant United States Attorney Joseph McNally emphasized the duty of financial institutions to report criminal or suspicious activities, stating, "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."

The MGM Grand and The Cosmopolitan casinos entered into Non-Prosecution Agreements (NPAs) to settle the investigation into alleged money laundering and BSA violations. MGM Grand agreed to pay a fine of $6,527,728 and forfeit $500,000, while The Cosmopolitan agreed to a fine of $928,600 and a forfeiture of $500,000. Both casinos will undergo an external compliance review, investing at least $750,000 over two years to strengthen their AML programs.

The NPAs require the casinos to cooperate with law enforcement in any additional investigations arising from the conduct described in the agreements. Federal prosecutors acknowledged the casinos' remedial efforts, acceptance of responsibility, cooperation during the investigation, agreement to pay fines, and commitment to invest in compliance measures to prevent future violations of federal law.

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