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On the second day of its casino license suitability hearing before the Massachusetts Gaming Commission, Wynn Resorts executives will attempt to convince state gambling regulators the company has been completely transformed after sexual misconduct allegations against former CEO Steve Wynn last year.
Patricia Mulroy, board member, said of Steve Wynn: “I have to be very frank with you. That man did lots of things wrong that are beyond comprehension.”
“I was brand new to this board and this board could not focus on that discussion,” said Mulory. “Everything was seen from the filter of the litigation and the animosity towards Mrs. Wynn… I could kick myself here from China that I didn’t speak up. I let myself get sucked into that vortex of vitriol and for that I am just furious with myself.”
Mulory said she was told the 2005 settlement “was viewed as a single indiscretion,” adding that she would ask former general counsel Kim Sinatra on whether there were any other settlements.
Commission Chairwoman Cathy Judd-Stein grilled Maddox on Sinatra’s severance package multiple times: “Did Ms. Sinatra know that her severance payment was being signed on Aug. 3? Did she ask you to make sure to sign on Aug. 3? Did she know before our deposition that she was going to be paid nearly $10 million?”
Maddox stated that he did not know and deferred to counsel, but said he did have conversations with Sinatra before the IEB’s deposition.
“At the time we believe we believe this was the right business decision,” said board member Betsy Atkins of the Sinatra severance package. “We were concerned about stabilizing the company… And not invited another big, ugly, public, protracted lawsuit.”
Jay Johnson, board member and former U.S. Navy admiral, says that “When the WSJ came out, to say that I was disappointed would be an understatement. It rocked my boat and I wasn’t sure if I wasn’t sure I wanted to stay on this board.”
“I changed that view because of what’s happened in the last 14 months,” said Johnson, adding that the company’s changes were “nothing short of remarkable.”
For live updates from the hearing, follow the Herald’s Jonathan Ng on Twitter:
Read the commission’s investigative report and key excerpts:
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