LOS ANGELES, California – Former President of MGM Grand Casino Pleads Guilty to Violating Bank Secrecy Act
LOS ANGELES – Scott Sibella, 61, of Las Vegas, pleaded guilty late Wednesday afternoon to one count of failure to file reports of suspicious transactions required to be made by casinos.
According to his plea agreement, Sibella was the president of the MGM Grand from at least August of 2017 until February of 2019, during which time he knew that a casino patron, Wayne Nix, ran and operated an illegal bookmaking business. Despite this knowledge, 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.
Sibella 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.
Despite being trained and having knowledge of his duties, Sibella failed to report to MGM compliance personnel that Nix was an illegal sports bookmaker. Because 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.
Sibella pleaded guilty before United States District Judge Dolly M. Gee, who scheduled a May 8 sentencing hearing, at which time Sibella will face a maximum penalty of five years in prison and a fine of $250,000.
The 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 (AML) compliance program.
“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.”
“Turning a blind eye to laundering of illicit funds and knowingly avoiding reporting requirements puts public safety at risk,” said HSI Los Angeles Assistant Special Agent in Charge Jennifer Reyes. “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.”
“Mr. Sibella’s willful violation of Bank Secrecy Act obligations to report suspicious activities put the credibility of the MGM Grand at risk,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The BSA mandates reporting of suspicious activities to protect financial institutions from becoming participants in money laundering activities often benefitting criminal or terrorist organizations. While president of MGM Grand, Mr. Sibella undermined the trust and confidence of his employees, customers, and the public at large.”
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.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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