US hotel chain covered up CEO’s misconduct allegations for years
Senior executives at US hotel company Wynn Resorts were aware of sexual misconduct allegations against founder Steve Wynn but did nothing about it, according to a report.
The report, by the state Gaming Commission of Massachusetts, outlined years of ‘inaction and failures’ on the part of the company.
It was released as the commission reviews whether Wynn Resorts should keep its state gaming licence.
The report focused in part on secret settlement payments made to some of the accusers which were not disclosed during the application for the gaming licence.
"Their efforts at secrecy made it exceedingly difficult, if not impossible, for gaming regulators to detect potentially derogatory information through typical regulatory means," the report said.
The company has not denied any of the allegations made in the report and is looking to move on from a year of highly damaging headlines.
Steve Wynn was ousted last year after numerous sexual misconduct allegations were made public.
New CEO Matthew Maddox said: "I am sorry that our company did not live up to its values."
A similar investigation in Nevada saw it keep its licence but was hit with a record $20 million fine.
Since the allegations were made public, Wynn Resorts says it has undertaken wide ranging reforms including dismissing every executive who knew about the allegations and took no action.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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