Nevada regulators probe money laundering concerns at Fontainebleau Las Vegas amid licensing process

The Nevada Gaming Control Board has launched an investigation into Fontainebleau Las Vegas over potential violations of anti-money laundering laws, after an audit flagged irregular credit issuance practices that may contravene the federal Bank Secrecy Act, regulators said Thursday.

The investigation, which had not been publicly disclosed, surfaced inadvertently during a routine licensing hearing for Maurice Wooden, the resort’s president since January 2024. Commissioners expressed discomfort with granting a full, unlimited gaming license given the unresolved allegations, instead approving a two-year limited license for Wooden in a unanimous vote.

“I don’t know of any of the questions you’re asking about right now,” Wooden told the Nevada Gaming Commission during the hearing, where he said anti-money laundering (AML) compliance is a top priority for the resort. “AML is one of the most important topics, if not the most important topic, we always discuss in our leadership meetings.”

The $3.7 billion Fontainebleau, which opened in December 2023 and is privately owned by Miami-based developer Jeffrey Soffer, came under scrutiny after property ownership allegedly overruled management’s decision to deny credit to a patron, triggering concerns from state gaming agents.

Wooden’s attorney, Dan Reaser, said the investigation had not been raised during his client’s background check or interview process. “The record needs to be clear with regard to the investigation of Mr. Wooden. This issue was never raised, so the ability to respond to it was eliminated until today,” he told the commission.

Reaser urged regulators to avoid penalizing Wooden for a matter related to the property’s ownership. “There’s a piece of information about the company that has been inserted, and you want to know whether or not that information about the company and its audit reflects somehow on Mr. Wooden,” he said.

Gaming Control Board Chairman Kirk Hendrick confirmed that an investigation is ongoing but said the material should not have been included in the licensing file.

“This is currently under investigation and it’s therefore confidential by law,” Hendrick said. “I don’t want to go any deeper into this matter until the board has an opportunity to review it and, of course, speak with the licensee.”

Fontainebleau said in an unsigned statement it was “pleased that Maurice Wooden was found suitable” and that the property is “continuing to work with the Gaming Control Board on our ongoing audit.”

Several commissioners cited the investigation in their reservations. “It’s just that we are aware of information, and we can’t unknow it,” Commissioner Brian Krolicki said. “It’s not comfortable for me to move forward with something that is still fluid.”

In not supporting a full gaming license for Wooden, Commissioner Rosa Solis-Rainey said: “I don’t think we necessarily have all the information.”

The investigation comes amid heightened scrutiny of anti-money laundering compliance on the Las Vegas Strip. Regulators have recently fined MGM Resorts International, Genting Group’s Resorts World Las Vegas, and Wynn Resorts over similar concerns.

Wooden will be required to reapply for a permanent license in 2027.