Wynn Resorts Forcibly Buys Out Biggest Stakeholder

Published February 19, 2012 6:18PM (EST)

NEW YORK (AP) — Wynn Resorts says it forcibly bought back shares from its biggest stakeholder after finding the Japanese tycoon made improper payments to gambling regulators.

The Las Vegas company says it took action against Kazuo Okada after a year-long investigation uncovered that he engaged in activities that violated U.S. anti-corruption laws. Wynn has asked Okada to resign from the board.

The company says discoveries include cash payments and gifts totaling about $110,000 to foreign gaming regulators

Okada is the founder of casino game maker Universal Entertainment. He held an almost 20 percent stake in Wynn Resorts Ltd.

An email was sent seeking comment from Okada but it generated no immediate response.

Wynn says it filed a lawsuit against Okada and Universal Entertainment in Nevada District Court for breach of fiduciary duty and related offenses.


By Salon Staff

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