State investigators denounce "bankruptcy of companies" in Wynn report



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Massachusetts Gaming Commission investigators determined that Wynn Resorts' "inaction and failure" played a role in the non-disclosure of allegations of sexual misconduct against CEO Steve Wynn at the time. at the time the company had obtained its casino license in the Boston area.

Investigators wrote, "Significant changes to the company's leadership, policies, structure and internal controls do not eliminate the fact that the company's failures revealed in this survey are significant, repetitive and reflect of historical governance of the company. "

"The inaction and failure of the former CEOs of this publicly traded company, led by its founder at the time, appears to have contributed to a culture in which employees were reluctant to report to management the allegations against Mr. Wynn. "

The findings, contained in a 199-page report by the Commission's Bureau of Investigation and Enforcement, come when regulators open a three-day hearing on whether Wynn Resorts remains fit to hold its casino license.

Regulators will ask the executives whether Wynn Resorts deliberately concealed any alleged presumed sexual assault from Steve Wynn when the company was tested for licensure and granted a casino license in the Boston area . Steve Wynn has denied these allegations several times.

The board found that three individual candidates – Steve Wynn, Elaine Wynn and Kimmarie Sinatra – had been aware of a 2015 settlement agreement between Steve Wynn and an employee, but had not disclosed any information to the company. commission in 2013 and thereafter.

"At no point during the 2013 suitability investigation, the existence of allegations of sexual misconduct involving Mr. Wynn was revealed to investigators" , according to the commission's investigation report.

Matthew Maddox, CEO of Wynn Resorts, said Tuesday that when the charges against Steve Wynn surfaced, the company was "shaken."

"14 months ago, when the Wall Street Journal article was published, our society was deeply shaken," Maddox told the commission. "We were in crisis and many of us in denial.

"When I took office on February 7, 2018, I knew we had to be strong, be quick and discover the truth. Only the truth would allow this society to survive and thrive. We needed to be transparent, cooperative and progressive.

"I began to understand that there were a lot of victims – and these victims felt powerless. For that, I am deeply remedied. They felt that they did not have a voice. What they talked about, they could be subject to retaliation. Or if they did, it would not be the subject of an investigation. For that I am really sorry. I'm sorry that our company did not respect its values. And when I started realizing this truth, I took it very personally. And decided that no matter who would be the CEO of Wynn Resorts or the chairman of the board, this would never happen again.

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