Nevada gaming regulators have launched an investigation into possible Fontainebleau money laundering violations. The accusations come after an audit that raised red flags about the casino’s internal credit practices. The probe, which had not been previously disclosed, came to light Thursday during a routine licensing hearing before the Nevada Gaming Commission for Maurice Wooden, the resort’s president since January.
Regulators said the audit uncovered irregularities that could violate the Federal Bank Secrecy Act. Specifically, investigators are examining whether the property’s ownership interfered with management’s decision to deny credit to a patron—an action that could undermine required financial compliance protocols.The Gaming Commission voted unanimously to grant Wooden a two-year limited gaming license, rather than the standard full license, citing concerns about the unresolved investigation.
Wooden’s attorney, Dan Reaser, pushed back on the timing of the announcement of a Fontainebleau money laundering investigation, stating that the investigation had not come up during Wooden’s background check or prior interviews. Nevada Gaming Control Board Chairman Kirk Hendrick confirmed that an investigation is underway, but stressed that the matter remains confidential under state law.
Hendrick also acknowledged the inclusion of sensitive material in the licensing review was inappropriate and declined to comment further. Commissioners expressed discomfort with moving forward on a full license while the investigation into the alleged Fontainebleau money laundering issues remains open. In recent months, MGM Resorts, Resorts World Las Vegas, and Wynn Resorts have all been fined for related compliance issues.