The Nevada Gaming Commission put a two-year timeline on the licensing of Fontainebleau Las Vegas President Maurice Wooden, already under scrutiny for his past leadership at Wynn Resorts. Fontainebleau is also under a Gaming Control Board investigation for credit-approval practices that have potential implications related to federal anti-money-laundering regulations.
Wooden’s approval came despite some Commission members wondering whether to hold it pending further review by the Gaming Control Board. Board Chairman Kirk Hendrick said the ongoing investigation is confidential by law and didn’t go any deeper into the matter.
“It should have been marked confidential or under investigation,” Hendrick said of the information included in Commission members’ packets. “It’s too soon to say how serious the matter is, whether it violates federal laws, or is subject to penalties by the Gaming Commission.”
The audit didn’t come up during Wooden’s hearing two weeks ago before the Board, which recommended unanimous approval of his licensing without conditions.
During Thursday’s nearly one-hour hearing, Wooden was questioned about his knowledge of money subject to a federal investigation that led to a $5.5 million fine by the Commission Thursday. He was also questioned about whether enough was done to investigate sexual misconduct allegations that led to CEO Steve Wynn stepping down in 2018.
President of the Fontainebleau since late January 2024, Wooden served as president of Wynn Las Vegas from 2005 through the end of 2018. Commissioners raised the issue of Wooden’s knowledge about the federal investigation that dates back more than a decade and led to Wynn being fined $5.5 million by the Commission over allegations it conspired with unlicensed money-transmitting businesses worldwide to transfer funds to benefit itself.
Wooden told the Commission those transfers were overseen by another division of the company, ad that he had no knowledge of them, and only became aware of them when they were publicized last fall.
“You do have responsibility, whether it’s directly or indirectly and whether you knew about it,” said Commissioner Brian Krolicki. “I’m not making any accusations, but it was your watch.”
Krolicki said there’s zero tolerance for anything outside of normal compliance. While he said the Fontainebleau is fortunate to have Wooden as its president, the Commission has had to deal with past transgressions during the last few months that involved fining Wynn, Resorts World Las Vegas, and MGM Resorts International. “You just happen to be in front of us today when we’re talking about these things. Timing is everything.”
Commissioner George Markantonis said Wooden was president at a time “a lot of bad things came to the surface.” He cited the sexual-misconduct allegations against CEO Steve Wynn, who stepped down in February 2018, and concerns management covering them up after employee complaints.
“We’re not here to talk about that, but your licensing moving forward for the Fontainebleau,” Markantonis said. “We all have a cross to bear and this isn’t a stain but a blemish on an excellent career. I would like to think over the last five to 10 years we have matured as an industry.”
Commissioner Rosa Solis-Rainey was even tougher on Wooden, saying that he failed to initiate an internal investigation of the sexual-misconduct allegations against Wynn, despite knowing of them.
In trying to alleviate concerns, Wooden told the Commission he’s changed his management style and now goes out onto the property more to talk with staff, from valet to front desk and other operations. He didn’t do so at Wynn. He said he encourages other executives to do the same to create a culture. They want employees to share information, good and bad.
“If we manage from our offices, shame on us,” Wooden said. “We all need to manage by being out on the property. That is constantly reinforced in our leadership group. We have anonymous hotlines to communicate about anybody doing something in conflict with the company culture and policies.”
It was then that Solis-Rainey brought up the issue of credit issued based on ownership approval, rather than the traditional application and document-review process.
Wooden said if that happened, it was before his time at the Fontainebleau and doesn’t know anything about the matter.
“I believe strongly in our compliance and AML policies. I don’t think we have any information about what you’re asking about and going back to the initial audit, one or two of those happened during opening week.”
Stacie Michaels, chief administrative officer at the Fontainebleau, said she’s not aware of any individual cases, but as part of an audit, a credit review was conducted. In the draft of the report, they were notified about “some missteps in policy that were not followed with regard to a few handful of credit accounts.” That was found in three of five accounts reviewed. “Being a brand new property, that’s not unusual,” Michaels said. “That’s the information we received to date from the Board.”
Solis-Rainey said that’s a high percentage and asked if that was shared with Wooden. Michaels said it was and that the Board hasn’t yet closed their audit. “I believe the investigation goes beyond that,” Solis-Rainey said. “If you’re having three out of five, it’s a potential issue. It’s a small sample, but I would be concerned about that.”
Michaels said one of those three accounts was reviewed and found to have been handled properly.
“From our information, they’re also investigating instances from anonymous Fontainebleau employees,” Solis-Rainey said in response. “I’m concerned over AML issues of any type.”
Michaels said they cooperated fully and provided information to the Board as requested and it was the first she’d heard of any anonymous complaint.
Fontainebleau legal counsel Dan Reaser said the company has a “best-in-class” style of compliance with an independent compliance committee. That’s different from what existed at the Wynn.
Before voting for a two-year license, Solis-Rainey said she had no concerns about Wooden’s operational experience, but was concerned about what he did and didn’t know while president at Wynn Resorts. “I would hope going forward, whether something you think is significant or not, you investigate aggressively.”
Markantonis reiterated that they were there to review Wooden’s license and questioned the legitimacy of bringing in a confidential issue.
Reaser explained that it was the middle of the process and both the Board and licensee have rights. At the end, an audit report is issued, followed by a closing conference in which the parties debate whether it’s correct. Then an appeal process can end up before the Commission.
“We’re at the early stages of that process, none of the procedural protections have kicked in yet, and it’s a company matter,” Reaser said. “It doesn’t go to this individual’s probity or acumen. I don’t believe it’s disqualifying.”
Krolicki asked if it was normal for ownership to approve credit, but Michaels couldn’t respond, not knowing the specifics. She said it doesn’t mean the process was overridden.
“It could mean somebody has to issue the credit with credit authority within the organization and different people have different credit authority at different levels,” Michaels said. “Someone has to be the credit authorizer to issue the credit to the customer and owners have credit authority to issue it.”
Michaels said all credit approval goes through the same process, but credit at higher dollar values goes through a few more approvals.
Wooden responded that he has credit approval when it exceeds the level of a host or the player-development team.
Before the vote, Togliatti issued a warning to the industry, citing the Wynn and other cases where people felt singled out. “The buck is only stopping with that particular person and not on other properties. I guess maybe that was the case before, but it’s not going to be the case anymore—not after listening to these people meeting after meeting for four years.”
Togliatti said while she appreciates Wooden’s change in management style and the importance of what a culture should look like, it’s not enough to say you’re the president but didn’t know what was happening. “The dark and it’s a bad place to be when you (appear) here going forward.”
Wooden responded, “Absolutely.”
In the end, Togliatti said they’re not in a position to know more about the audit investigation and should disregard it for now. She said she has to trust that if the Board had concerns of “such significance or potential concerns,” it wouldn’t have forwarded Wooden’s license to the Commission with a recommendation for approval. “That gives me some assurances that this that can be dealt with by the company and actors as needed.”
Upon the motion for full licensing by Markantonis, Solis-Rainey couldn’t support it, as Wooden has served as president since shortly after the property opened, even if credit approvals were made by ownership. “I don’t think the record is fully developed. I’m not comfortable enough supporting it.”
Commissioner Abbi Silver asked if a two-year limitation would work and Solis-Rainey agreed. She mentioned her own background in the audit field and that any violations could be minor or even clerical in nature. Still, she added, “The issues on the table could go beyond that,” Solis-Rainey said. “This would give us time to resolve them.”
Krolicki told Wooden a two-year license is not disparaging to him, but the Commission is aware of information that they can’t unknow and has to wait for the investigating report to be finished.
Krolicki broached the idea of referring it back to the Board. He said Wooden deserves “any cloud to be gone” and for the Commission to do its due diligence.
Reaser argued that any referral back to the Board would be unfair. The issue was never raised during the application process. “I understand it could be the basis for a limited license for two to three years, while you get to the bottom of the audit issue and can review independently whether Mr. Wooden was properly apprised.”
Reaser said while they aren’t thrilled with a two-year license, Wooden is willing to have his reputation, acumen, and probity tested.
Togliatti said the licensing decision was more than just the revelation about the audit. “If he hadn’t been the president of the Wynn, (subject to) all of our discipline later, we wouldn’t be having this conversation. It’s not fair to say we’re looking at this one little thing in a vacuum. It’s the big picture of what was going on in 2014 and this back story. If we’d found out of this confidential investigation alone, this might be a different conversation.”
