The U.S. attorney is expected to provide a deep dive into the intricacies of these cases.
A federal prosecutor from the U.S. attorney’s office in central California who has handled anti-money laundering cases involving Las Vegas casinos, including the MGM Grand hotel-casino and its former President Scott Sibella, is expected to speak on the cases at a conference focusing on the Bank Secrecy Act this week at Caesars Palace.
U.S. Attorney Jeff Mitchell is among the speakers scheduled at a four-day BSA/AML conference that began Monday and is sponsored by BSA-AML Compliance Group.
The online description of Mitchell’s presentation at the conference said: “Jeff Mitchell will deliver an insightful presentation on the prosecutions of several southern California illegal bookmakers, the MGM Grand Casino and its former President Scott Sibella, the Cosmopolitan Casino, and a money service business. This session will provide a deep dive into the intricacies of these cases, highlighting the stipulated revisions to MGM’s AML program as part of the settlement agreement with the casino.”
The conference is directed at casino executives, gaming regulators and casino compliance officers wanting to learn more about federal banking regulations and how casinos must comply with those laws.
A representative of the group said media members would not be allowed to attend any of the conference presentations.
Mitchell was part of the team of attorneys that prosecuted MGM Resorts International and its then-president, Sibella.
Sibella was sentenced to one year’s probation and fined $9,500 for violating the federal Bank Secrecy Act established to fight money laundering at financial institutions.
U.S. District Judge Dolly Gee pronounced the sentence in May in the Central District Court of California in downtown Los Angeles.
Sibella, who pleaded guilty Jan. 24, failed to file suspicious transactions reports required of casinos while leading the MGM Grand between August 2017 and February 2019.
A Nevada Gaming Control Board complaint was filed against Sibella in late April and it has yet to be adjudicated by the Nevada Gaming Commission.
MGM paid $7.45M fine
The MGM Grand and The Cosmopolitan of Las Vegas, both owned by MGM Resorts International, entered into non-prosecution settlement agreements with the U.S. Attorney’s Office, paying a total $7.45 million fine for its role in the case and are cooperating with authorities that are further investigating the reach of illegal bookmaking in California.
According to court records, Sibella turned a blind eye to the presence of illegal bookmaker Wayne Nix, a former minor-league baseball pitcher, who gambled illegally at the MGM Grand.
Sibella later worked for Resorts World Las Vegas before he was fired for violating company policies.
A different illegal bookmaker who took bets from Los Angeles Dodgers baseball star Shohei Ohtani’s former interpreter, Ippei Mizuhara, pleaded guilty Friday to federal charges of running an illegal gambling business.
Mathew Bowyer, San Juan Capistrano, California, pleaded guilty to money laundering, operating an illegal gambling operation and filing a false tax return and is scheduled to be sentenced Feb. 7.
Bowyer could face up to 10 years in federal prison for the money-laundering count, up to five years for the unlawful gambling business charge and up to three years for the false tax return.
Resorts World has not been implicated in federal investigations, but representatives of the company earlier this month said they were cooperating with federal authorities.
Other presentations at the conference include compliance guidance by FinCEN and IRS and a panel discussion of Bank Secrecy Act experts from the Chickasaw Nation, MGM Resorts International, Penn Entertainment, and California’s Yaamava’ Casino.
This is a developing story. Check back for updates.
