Steve Wynn may not have been the first executive of Wynn Resorts Ltd. to terminate relationships with the casino operator for a lucrative gambling license in the Boston area.
Marc Schorr, once considered Steve Wynn's right-hand man, would have resigned as Chief Operating Officer of Wynn Resorts five years ago to gain the company's opportunity to enter Massachusetts.
Wynn Resorts got the license, but today he's fighting to keep it. The company's $ 2.5 billion casino is scheduled to open in June in Everett, Massachusetts, becoming the company's fifth resort.
Massachusetts regulators are now investigating Wynn Resorts after corporate founder and former chairman Steve Wynn molested him in January
New Wynn CEO Matt Maddox told Massachusetts regulators on Friday that the company was "fast and determined action "to dissociate himself from Steve Wynn, who retired from all positions in February and sold his entire stock in March Wynn's exit has not stopped Massachusetts regulators from investigating the charges, and possibly to pull the company license.
The circumstances surrounding Schorr's departure were unknown to Massachusetts regulators or the public at the time ̵
Testimony in front of a Nevada courtroom last month in Elaine Wynn's lawsuit against former husband Steve Wynn Resorts and Wynn Resorts for lack of conformity indicates that Schorr is a Bullet for the growth of the company could have taken.
Elaine Wynn claimed that Schorr had been fired for an illegal online gambling program.
Attorneys for Steve Wynn argued that the former board retired on reaching 65. Attempts to reach Schorr by e-mail and relatives were unsuccessful.
A former employee who was not named due to the size and influence of Wynn Resorts, he considered the review journal to be a "forced resignation."
"It was always unclear to me whether it was because of Boston or because of concern that he might not be re-admitted in Nevada," the former employee said
. His departure came months after the company was a Massachusetts Gambling license had applied.
A Nevada gaming lawyer who refused to give his name because of the sensitivity of the problem, ie illegal online betting would have been "a very serious problem" for state gambling regulators because of their questions about money laundering and tax law violations could raise. What happened
Wynn Resorts announced in March In 2013, Schorr, then 65, would retire on June 1 after 33 years in the industry as COO, much of it with Steve Wynn. Schorr would also "leave all other positions held by the company."
Schorr also resigned as president of Wynn MA LLC, the Wynn Resorts subsidiary, which asked for an official gambling license in Massachusetts.
But nothing had Schorr had plans to retire in the next few years.
In September 2012, he was nominated by the board of the Wynn Resort for another three-year term as director and continued to serve on the Wynn Macau Board.
In February 2013, he signed a new employment contract to extend his term until December 2016 and increase his base salary to $ 2.1 million.
Schorr's fate was reversed when, in the fall of 2012, a large-scale US federal investigation into offshore sports betting launched investigations that aroused Scharr's subordinates, Tim Poster.
Poster, a rising star in the company, acknowledged that he would place bets through offshore books for about two dozen friends. One of them was Schorr, according to court records. Offshore sports betting is illegal in Nevada.
Poster then resigned as Chief Operating Officer of Wynn Las Vegas in March 2013, a month after he was promoted to the position.
"Poster informed the company in early 2013 that" its bets "and immediately resigned," said Wynn Resorts spokesman Michael Weaver the review journal.
In a video deposition in court last month, Schorr said he had no idea that poster betting had placed online instead of in use the legal sports books in the city. Schorr said he only learned about the online betting scheme after freezing Poster's account during the raid.
Wynn Resorts began intensive preparations to obtain regulatory approval from Massachusetts in late 2012, when federal investigators began their attack on offshore sports betting.
The company submitted its application to Massachusetts and registered Wynn MA LLC on January 17, 2013 with Schorr as its president. He was one of three Wynn executives in the registration documents with Matt Maddox and Kim Sinatra.
Wynn board members and top executives, including Schorr, would face tough audits by the state regulators in Massachusetts later in 2013
Indeed, in February 2013, Wynn Resorts kick-started co-founder Kazuo Okada from the panel because he feared the reputation of the Japanese businessman could affect the company's offer in Massachusetts. Okada had rejected company applications.
"Mr. Okada's behavior poses a current threat to the company's reputation for integrity. This is fundamental to preserving its current gambling licenses, applying for and obtaining additional gambling licenses, including the jurisdictions in which the company has recently filed claims "Wynn Resorts said in January 2013
Massachusetts was one of the toughest jurisdictions in the US during the 2013 filing process to qualify for a gambling license.
Caesar's Entertainment Corp. The company was banned from its bidder in Massachusetts in October 2013, according to a critical report by the state's gambling investigators.
Massachusetts investigators were concerned about one of the owners of the Gansevoort Hotel Group, which recently signed an agreement with Caesars to open a boutique hotel on the Strip.
Caesars then complained about Massachusetts' standards for fitness were "unreasonable."
& # 39; Blowup & # 39;
After learning that Schorr might be involved in online gambling, Wynn Resorts conducted an investigation into his home and work computer
The company found no evidence that Schorr was personal Elaine Wynn's lawyer Mark Ferrario claims he was fired after a "blowup" with Steve Wynn
Schorr left the Wynn on April 23, 2013, about six weeks before he left.
Resorts, as president of Wynn MA back, according to Massachuse
He was not among the twelve Wynn managers and directors, who were reviewed by the state regulators for their suitability.
As part of its exit package, Wynn allowed Schorr to hold 200,000 shares of the company. According to a company that filed with the Securities and Exchange Commission, he had to retire on retirement.
The shares had a value of $ 25 million at the time of its announcement of retirement.
Wynn Resorts has been awarded the Massachusetts Gaming license in September 2014.
Massachusetts regulators are expected to decide this summer whether Wynn Resorts may retain its state gambling license.