The dice have rolled unfavorably for a former high roller at MGM Grand. Scott Sibella, the former president of the iconic casino, has copped to a federal charge for his role in a high-stakes game of avoiding Bank Secrecy Act (BSA) duties. His admission to failing to file reports of suspicious transactions comes as MGM Grand and The Cosmopolitan casinos are set to shed out $7.45 million in a bid to rectify related money laundering accusations.
Last Wednesday, Sibella, aged 61, pleaded guilty to one count of failure to file reports of suspicious transactions, the Justice Department announced. From August 2017 to February 2019, during his tenure, he knowingly allowed Wayne Nix, an illegal bookie, to place bets using dirty money. Not only was Nix allowed to gamble, but Sibella also dangled comped amenities such as luxury meals, lodging, and golf junkets with casino VIPs to keep him at the MGM tables.
Despite MGM's training on compliance protocols and Sibella's awareness of his responsibilities, he turned a blind eye. He admitted last year to law enforcement that he suspected Nix was neck-deep in illegal sports bookmaking but chose to ignore it because "he wasn't doing anything to cheat the casino."
In a breach that saw both judgment and accountability under the roulette wheel, the BSA violations have put Sibella on track for a possible five-year prison sentence and a $250,000 fine, with his sentencing set for May 8. Nix himself, who has pleaded guilty to conspiracy and tax charges, is awaiting his reckoning on March 6.
Meanwhile, the house isn't winning either. Assistant U.S. Attorney Joseph McNally stated, "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." Both MGM Grand and The Cosmopolitan have owned up to laundering Nix's illicit dough and will pay heavy fines as part of Non-Prosecution Agreements. The deals include a revamp of their compliance programs and a $750,000 external review over two years to ensure tighter ship-sailing in the BSA's tumultuous seas.
The agreements underscore a commitment from the casinos to cooperate with law enforcement investigations or procedures springing from the described conduct. With their expensive lesson in gambling compliance now at the fore, boardrooms and betting floors alike are on notice: the stakes of not playing by the rules are higher than any jackpot.
