Fontainebleau said to be subject of Nevada AML investigation

Recent developments in Nevada’s gambling sector underscore an escalating focus on anti-money laundering (AML) compliance, stirring significant conversations among regulators and operators alike.

The landscape of AML investigations in Southern Nevada has reached a critical juncture, with the Fontainebleau Las Vegas emerging as the latest establishment under scrutiny. This revelation came to light during a recent Nevada Gaming Commission meeting, where it was disclosed that the casino is currently involved in an AML investigation concerning credit approval practices.

Owned by Jeffrey Soffer and Koch Real Estate Investments, the Fontainebleau is an ambitious $3.7 billion project that finally opened its doors in December 2023 after facing numerous delays. During discussions regarding the licensure of Maurice Wooden, the resort’s president since January 2024, suspicions about potential AML issues were inadvertently raised.

Commissioner Rosa Solis-Rainey queried Wooden about the investigation, prompting a somewhat evasive response. Reported by the Nevada Current, Wooden stated, “I’m not sure of any investigation as it relates to anything with AML. Is there something specific? I’m not sure.” This interaction sparked a tense exchange among officials, highlighting the delicate nature of regulatory confidentiality in such matters.

With the Nevada Gaming Control Board (NGCB) and the Nevada Gaming Commission (NGC) serving as the primary regulatory bodies, the NGCB spearheads investigations and provides recommendations to the commission, which makes the final rulings. NGCB Chair Kirk Hendrick swiftly interjected, underscoring the need to halt discussions until the board could fully review the case and communicate with the licensee.

“I don’t want to delve deeper into this matter until the board has an opportunity to review it and, of course, speak with the licensee,” Hendrick remarked, illustrating the regulatory protocol that governs such sensitive investigations.

LeForbes Investigation Indicators

In a twist of fate, Wooden’s license was ultimately approved unanimously, albeit with a limited two-year duration pending the resolution of ongoing inquiries. While the NGCB had recommended an indefinite license, Fontainebleau’s representatives characterized the situation as an “ongoing audit” and expressed satisfaction with Wooden’s temporary suitability.

Although no official details about the investigation have been released, conversations during the commission meeting suggested that the casino’s management faced scrutiny for overriding credit denials issued by staff. Fontainebleau executive Stacy Michaels confirmed that audits had revealed discrepancies in five player accounts, with concerns arising from three of them.

Reports indicate that the casino may have issued a substantial $2 million marker in January 2024 to Damien LeForbes, a noted illegal bookmaker with historical ties to other AML investigations involving major operators such as MGM Resorts and Resorts World Las Vegas. LeForbes’ connection with Matt Bowyer, another figure embroiled in similar scandals, raises further eyebrows about the interlinked nature of these investigations.

RJ Cipriani, a professional gambler and informant in these ongoing cases, alleged that LeForbes mismanaged the funds acquired from the credit marker, utilizing them to settle other debts before exhausting the marker itself. “All the casinos that took DJ LeForbes’ and Matt Bowyer’s action are being investigated by the GCB,” Cipriani disclosed recently.

Recurring Themes in AML Oversight

The current wave of investigations reveals a connected web of individuals within the Las Vegas casino industry, suggesting a tight-knit environment where numerous executives are facing scrutiny. Maurice Wooden, for example, previously served as president of Wynn Las Vegas from 2013 to 2018, a period during which Wynn was penalized $5.5 million for AML violations linked to unlicensed money transfers. This timeline coincides with Wooden’s leadership, raising further questions about his AML commitment.

“AML is one of the most critical topics, if not the foremost issue, we tackle in our leadership meetings,” Wooden emphasized during his license application discussion last week, signifying a potential shift in focus for casino management as the industry grapples with heightened regulatory oversight.

As the Fontainebleau and other establishments navigate these challenges, the takeaway remains clear: thorough AML practices are not merely regulatory obligations; they are essential components of responsible gaming and trust in a thriving gambling ecosystem. The continued investigation of high-profile cases sets a precedent for accountability across the industry, urging all operators to enhance their compliance protocols and strengthen their ethical foundations.