Former Resorts World and MGM Resorts executive Scott Sibella last week pleaded guilty for failing to file reports of suspicious transactions related to his oversight of gambler Wayne Nix, who operated an illegal sportsbook and allegedly laundered millions of dollars during Sibella’s time at MGM Grand. Nix, a former minor league baseball pitcher, also pled guilty to one count of tax evasion.
The IRS contends that Sibella was aware of Nix’s illegal operation and chose to ignore it, while accepting more than $4 million and comping Nix during his gambling excursions to Las Vegas.
“Mr. Sibella’s willful violation of Bank Secrecy Act obligations to report suspicious activities put the credibility of the MGM Grand at risk,” said Tyler Hatcher, special agent-in-charge for the Los Angeles Field Office of Internal Revenue Service criminal investigation.
In addition to Sibella’s plea, the IRS agreed not to prosecute MGM Grand and The Cosmopolitan of Las Vegas in exchange for fines and penalties. MGM will pay a fine of $6.5 million, and forfeit $500,000 in proceeds traceable to the violation, which will be counted toward the fine, while the Cosmopolitan will fork over $928,600, and forfeit $500,000 in gaming win, which will also be counted toward the fine.
Sibella issued a statement following the plea bargain: “I am pleased to have this investigation and its findings reaching a conclusion. I take full responsibility for my actions and inactions, but I must make clear I took no action for my personal benefit or inurement. I wish to thank the U.S. Attorney’s Office for its professionalism throughout this process.
“I am proud of my 35 years of contributions and leadership to the industry that has meant so much to and has supported me. I am appreciative of the many colleagues with whom I have been associated over my career and that I have been entrusted to lead, and who have supported me and my family throughout this process. As this process comes to a conclusion, I look forward to continuing to provide my knowledge, skills and insights to support the continued growth, evolution and professionalism of the gaming industry.”
Sibella also pointed out that these activities occurred in performance of his job and that he personally did not profit from his actions.
MGM Resorts admitted that its compliance department failed to catch Sibella’s transgressions. The company admitted that Sibella and two unnamed casino hosts knew about Nix’s illegal operations, yet continued to allow him to gamble at MGM Grand and other company properties, and provided him with comps that encouraged him to continue to play.
Under the Bank Secrecy Act, any transaction above $5,000 is considered suspicious and must be reported to the IRS using “know your customer” (KYC) guidelines.
Sibella was removed as president of MGM Grand in April 2019 as part of the company’s cost-reduction strategy and was hired by Resorts World as CEO of the new Las Vegas property a few months later.
He was fired by Resorts World in 2023 for violating company procedures in granting subcontracted business leases prior to the property’s opening in June 2020. He was also accused by gambler R.J. Cipriani of false arrest, but Sibella denied knowing Cipriani and was vindicated after an investigation by the Nevada Gaming Control Board.
Nonetheless, a further investigation by the board could be in the offing.
“The Nevada Gaming Control Board (NGCB) is aware of the actions taken by the U.S. Attorney’s Office for the Central District of California against Scott Sibella, a former president at the MGM Grand property in Las Vegas, as well as the MGM Grand Hotel and The Cosmopolitan of Las Vegas,” NGCB Chairman Kirk Hendrick said in a statement last week. “The NGCB has been monitoring the situation, and will ensure that all individuals and entities involved in Nevada’s gaming industry are held to the highest standards.”
Sibella is scheduled to be sentenced May 8 and faces up to five years in prison and a fine of $250,000.
In a column in the Nevada Independent, writer John L. Smith said that the brazenness of Sibella’s actions reflects poorly on the entire industry and other casino executives should be worried.
“Sibella and others made a mockery of federal anti-money laundering regulations and the fact that, as a major casino operation, MGM had a duty to know its customers,” Smith wrote.
