WYNN READIES SHARE SALE
Regulators say stock dump won’t halt investigation
Toppled casino icon Steve Wynn is looking to sell part — or all — of his stake in his gaming company, though state gaming regulators say the move won’t impact their investigation.
In an SEC filing yesterday, Wynn said he will “sell all or a portion” of his shares in the company. The former CEO owns more than 12 million shares, valued at more than $2 billion. Wynn stock is trading at roughly $180 per share.
“Our investigation remains very active and aggressive,” Gaming Commission spokeswoman Elaine Driscoll said yesterday. “The investigators will continue to assess the totality of the information as it continues to develop.”
The commission said Wynn divesting from the company will not change the status of the probe. Investigators have said they are looking explicitly at how much control Wynn will retain as a shareholder after his departure from Wynn Resorts.
Even though Wynn resigned as CEO earlier this year, Massachusetts law requires anyone who owns more than five percent of a casino company to pass a suitability test. It is unclear how many of shares Wynn intends to sell. Under an agreement with Wynn Resorts, Wynn can only sell a third of his shares in a quarter.
The move follows a long, drawn-out battle with his ex-wife over a stockholder agreement that mandated that they and another original Wynn Resorts investor vote unanimously and receive approval from the others to sell shares. That agreement was dissolved earlier this month.
A spokesman for Wynn did not respond to a request for comment.
Wynn resigned after sexual harassment and misconduct allegations were reported by The Wall Street Journal, including a $7.5 million settlement reportedly paid to a former manicurist after the two had sex. Gaming Commission investigators have said they are looking into whether the information was improperly withheld during the initial background check.
Last week, attorneys for Wynn reportedly told the FBI another woman was trying to extort him by threatening to disclose the details of a 2006 settlement concerning sexual misconduct. Wynn has also been accused of rape. Wynn has denied the allegations.
Since the revelations, Wynn Resorts has severed its relationship with Wynn and continued construction of the massive Wynn Boston Harbor in Everett. Still, the company has resisted calls for a new name, saying such a move would have global implications for Wynn Resorts.
The $2.4 billion resort casino is expected to open next summer.