It took a Wall Street Journal investigation to prompt Nevada gaming regulators to look into one of the worst-kept secrets in Las Vegas — the alleged harassment of employees at the hands of former gaming mogul Steve Wynn.
“Immediately upon learning of the allegations raised against Mr. Wynn in the WSJ article, the BOARD launched a thorough and extensive investigation of RESPONDENTS and Mr. Wynn,” said a Gaming Control Board complaint released Monday.
“Through its investigation, the Board found multiple allegations of sexual misconduct and/or sexual harassment against Mr. Wynn.”
The complaint says three Wynn executives – former President and CEO Marc Schorr, former Vice-President of Hotel Operations Doreen Whennen and former Vice-President and Chief Human Resources Officer Arte Nathan, “all failed to initiate an investigation” into allegations by “Employee 1,” a salon employee who said she had been raped by Wynn in 2005 and became pregnant.
Wynn paid the employee and her husband $7.5 million in a settlement, the complaint says.
The complaint goes on to say Kimmarie Sinatra, attorney for Wynn Resorts, did not investigate when she became aware of the allegations in 2012.
Sinatra left the resort last year with a $1.8 million severance.
The company’s failure to investigate the 2005 incident as well as all other complaints received is a violation of state law and gaming regulations, the complaint says.
The complaint says Employee 2, a cocktail server, “alleged that Mr. Wynn pressured her into a nonconsensual sexual relationship that lasted from 2005 through her departure from RESORTS in 2006. Mr. Wynn entered into a private settlement with Employee 2 and her parents in the amount of $975,000 on December 6, 2006.”
The complaint alleges Schorr, Nathan and former Wynn General Counsel Kevin Tourek knew of the allegations and failed to initiate an investigation. Tourek and former Wynn President Maurice Wooden knew of sexual harassment allegations against Wynn made in 2014 by a former cocktail waitress identified as Employee 3, according to the complaint.
Additionally, the complaint says several managers knew of but failed to investigate allegations of sexual harassment leveled against Wynn by Employees 4, 5 and 6, who worked in the Encore Spa.
A flight attendant with a jet service owned by Wynn Resorts complained to Wynn in writing in 2016 of allegations against him by several flight attendants. Neither Sinatra nor Wynn counsel Stacie Michaels initiated an investigation, according to the complaint.
The complaint alleges “multiple allegations were made by various individuals that Employee 8 had facilitated sexual relationships between cocktail servers at Wynn and Mr. Wynn and/or guests of Wynn.”
Employee 8 is believed to be former Director of Cocktail Services Nancie Homel, who denied the allegations in this 2008 interview.
The complaint is the final salvo of departing Control Board Chairwoman Becky Harris. Earlier this month, Gov. Steve Sisolak announced Harris’ replacement.
Wynn Resorts is agreeing to a monetary fine yet to be determined by gaming regulators.