Steve Wynn, chief executive of Wynn Resorts, created a limited liability company, called Entity Y, to hide a $7.5 million settlement with a Wynn employee who had accused him of sexual misconduct.
More than 100 women have publicly denounced the casino magnate for decades of sexual misconduct, the Wall Street Journal reported. Among those is a female manicurist at Wynn Las Vegas. She allegedly received the multimillion-dollar payment in 2005 after Wynn forced her to have sex with him, according to the paper, which cited state records.
That incident was mentioned in a lawsuit brought by Wynn’s ex-wife Elaine, who is unable to sell her stock in the company as part of an earlier agreement with her ex-husband and the company. She claims her ex-husband used company personnel and resources to conceal the sexual allegations.
Steve Wynn has vehemently denied the allegations of assault, calling them “preposterous” and said it was the workings of his ex-wife’s litigation strategy. His lawyers also claim he used personal, not company funds for the settlement.
Entity Y, created solely to handle the settlement funds, was founded in 2005. Its manager is listed as James Pisanelli, who is now representing Wynn Resorts in the lawsuit. A partner at the registered firm Brownstein Hyatt Farber Schreck LLP had worked with Wynn, Wynn Resorts and Wynn’s prior gaming companies since 1976, the firm’s website shows.
The hotelier resigned from his position as finance chair for the Republican National Committee on Jan. 27, after the allegations surfaced. His upcoming casino project in the Boston area hangs in jeopardy now, as state regulators investigate the claim to determine whether Wynn is a “suitable” casino operator.
He owns four Wynn- and Encore-branded casinos spread from Las Vegas to Macau, China. He also built and sold the Mirage, Treasure Island and Bellagio Resorts in Las Vegas. [WSJ] — Natalie Hoberman