US Attorney Jeff Mitchell discussed several high-profile West Coast anti-money laundering (AML) legal cases during an appearance at a Vegas conference on the Bank Secrecy Act (BSA). The BSA prevents financial institutions from facilitating money laundering.
Mitchell, who led a series of recent litigations, including those against MGM Grand and its former president, Scott Sibella, addressed the conference yesterday. Mitchell was also behind prosecutions of illegal bookies Wayne Nix and Mathew Bowyer. Bowyer is the bookmaker tied to the Shohei Ohtani scandal, while Nix, a former MLB player, took bets from Yasiel Puig, now also former MLB.
Per a Las Vegas Review-Journal report, the media could not attend the conference. However, according to the talk’s online description, Mitchell would:
Deliver an insightful presentation on the prosecutions of several southern California illegal bookmakers, the MGM Grand Casino and its former President Scott Sibella, the Cosmopolitan Casino, and a money service business. This session will provide a deep dive into the intricacies of these cases, highlighting the stipulated revisions to MGM’s AML program as part of the settlement agreement with the casino.
Caesars Palace hosted the Aug. 12-15 event presented by BSA-AML Compliance Group.
Mitchell Shares Lessons From Prosecutions
According to the BSA-AML website, the compliance-focused organization exists to:
Put training at the forefront of anti-money laundering compliance and to elevate the importance and professionalism of the gaming industry.
To that end, the group offered the conference for casino executives, compliance offers, and state regulators seeking a deeper understanding of federal banking compliance requirements.
According to the description, Mitchell shared insights into the MGM, Sibella, Nix, and Bowyer cases and detailed the required changes to MGM’s AML program.
The changes resulted from agreed-to non-prosecution settlements between MGM Resorts International’s MGM Grand and Cosmopolitan of Las Vegas properties and the feds. The agreements also cost the properties $7.45 million in combined fines and require continued cooperation with further investigations into California’s illegal bookmaking problem.
In May, Sibella received one year’s probation and a $9,500 fine after pleading guilty on Jan. 24 to sidestepping the BSA. According to prosecutors, Sibella allowed Nix, a known bookie, to gamble at MGM Grand. In April, Sibella was also named in a Nevada Gaming Control Board (NGCB) complaint that the Nevada Gaming Commission (NGC) has yet to rule on.
For his part, Nix pled guilty in April 2022 to a single count each conspiracy to operate an illegal sports gambling business and filing a false tax return. After being rescheduled at least twice, Nix faces the judge for sentencing in late September.
In a similar but mainly unrelated case, Bowyer pled guilty last week to running an illegal gambling business, money laundering, and filing a false return. He faces up to 18 years in prison; however, his lawyer, Diane Bass, told the Associated Press they expect a two to three-year sentence.
Bowyer’s sentencing is on the calendar for Feb. 7, 2025.
Compliance Connects Casino Operators, Law Enforcement
In addition to Mitchell’s talk and several keynotes, topics covered during the four-day event include:
- Advanced Surveillance Techniques using Artificial Intelligence and Facial Recognition
- 2024 Elections and Their Effects Upon the Gaming Industry and AML Compliance
- Cyber-Threats and the Gaming Industry
- Leveraging Marketing & Hosts to Support Compliance
- National Money Laundering Risk Assessment and Illicit Finance Strategy
- What Your State Gaming Regulators Want You to Know
About the Author
