Resorts World Las Vegas Faces RICO Lawsuit
Legal Troubles Surface at Resorts World Las Vegas
Resorts World Las Vegas is currently embroiled in legal controversy following allegations involving racketeering and illegal gambling operations. This situation adds to a series of challenges the casino has encountered recently.
Details of the RICO Lawsuit
A federal lawsuit invoking the Racketeer Influenced and Corrupt Organizations Act (RICO) has been filed against former executives of Resorts World Las Vegas. The lengthy complaint, spanning 95 pages, was brought by high-stakes gambler Robert Cipriani and businessman James Russel. It accuses several former officials, including ex-president Scott Sibella and ex-vendor David Chesnoff, of engaging in a scheme that facilitated illegal bookmaking, laundering of funds, and tampering with witnesses.
The document highlights Cipriani’s prior efforts to alert authorities about potential money laundering activities within Nevada casinos, sparking multiple investigations and regulatory responses. These actions subsequently unveiled several alleged breaches of the RICO statute.
Specifically, the lawsuit claims that Sibella and Chesnoff played key roles in money laundering and other significant breaches of legal regulations, including attempts to intimidate witnesses and take retaliatory actions against Cipriani, who had previously sought legal recourse against Resorts World in 2024. That earlier suit, however, did not succeed in court.
Claims for Compensation and Injunctive Measures
Although Cipriani’s initial lawsuit did not prevail, regulators acknowledged that Anti-Money Laundering (AML) violations had indeed occurred. This acknowledgment resulted in a $10.5 million fine imposed on Resorts World and led to the dismissal of several of its executives.
The current legal action asserts that the regulatory penalties fell short of addressing the fundamental compliance issues within the casino. The complaint cites Sibella’s 2024 guilty plea for neglecting to file a suspicious activity report during his tenure at MGM Grand as indicative of a broader compliance failure within the organization.
Due to these alleged wrongdoings, the plaintiffs are pursuing monetary damages as well as court orders to prevent future misconduct, citing harm caused by the racketeering activities.
Related Regulatory Actions in Nevada
Meanwhile, Nevada gaming officials have recently banned Wayne Nix from all casinos in the state. This sanction stems from his involvement in illegal betting networks tied to several major casino resorts in Las Vegas.
