LAND OWNER SAYS WYNN SHORTED HIM
Suing over $20M shortfall
A former minority owner of the land under the massive Encore Boston Harbor is suing Wynn Resorts, claiming the casino company reneged on a deal that would have secretly paid nearly $20 million more than previously disclosed, and without the Gaming Commission’s knowledge.
The land in Everett, 33 acres on the Mystic River, sold for $35 million in 2014. The sale was embroiled in controversy over the co-ownership of Charles Lightbody, a convicted felon.
According to the complaint filed in federal court earlier this week, Lightbody’s involvement prompted the Massachusetts Gaming Commission to require the land be sold at market value, so Lightbody could not inordinately profit from the state’s casino industry.
But, according to the complaint, Lightbody’s partner Anthony Gattineri rejected the new offer, which slashed the price from $75 million to $35 million. When the Gaming Commission asked the landowners to certify that Lightbody had been bought out of the ownership group, Gattineri initially refused to sign, saying the land was worth more than $35 million, even to a noncasino buyer.
“His refusal caused a potentially fatal problem for Wynn’s licensing prospects,” the complaint states.
According to the complaint, Gattineri was repeatedly pressured by Wynn and its representatives, including former Gov. William Weld, to sign the certification.
In June 2014, months before Wynn Resorts would eventually be awarded the casino license, Gattineri met with Robert DeSalvio, president of Wynn’s Massachusetts casino, and demanded his share of the original offer, about $18.6 million, according to the complaint. Gattineri eventually signed the certification after being promised his share, the complaint states.
In the complaint, Gattineri says Wynn and DeSalvio have refused to honor their agreement, despite meetings between Gattineri and company executives. The complaint describes the agreement as a handshake deal that DeSalvio refused to put in writing.
“Mr. DeSalvio did not deny that Wynn owed Mr. Gattineri the money to make him whole,” the complaint states. “Wynn, however, has refused to either make the agreed payment to Anthony Gattineri or to make arrangements to do so. It now seems painfully apparent that Wynn never had any intention of honoring its agreement.”
In a statement, an Encore Boston Harbor spokesman denied the allegations, saying Gattineri is seeking a payday.
“This is an attempt to now extract an additional multimilliondollar payment from our company beyond what was negotiated and accepted by Mr. Gattineri and his partners in the Everett land transaction,” said Greg John, the casino spokesman. “Mr. Gattineri’s claim that a publicly traded company in a highly regulated industry would execute a $20 million transaction on a handshake deal, without any documentation or paperwork, is implausible and will be vigorously defended by Wynn.”
A spokeswoman for the Gaming Commission said the commission is aware of the lawsuit but declined to comment further.