Wynn CEO Supported But Security Chief Leaves

Wynn Resorts said Nevada regulators had confirmed its CEO Matt Maddox was “suitable” to hold his position after a lengthy investigation into the company following sexual misconduct allegations against founder Steve Wynn.

Wynn said it had received a written response that said Maddox was “found suitable as an officer of Wynn Resorts in Nevada in January 2010 and remains in good standing with the Nevada Gaming Control Board.”

Wynn Chairman Philip Satre welcomed the move and praised Maddox’s role in the efforts to reshape the company in the wake of the scandal, which forced the resignation of Steve Wynn. “Matt Maddox has the full confidence of me as chairman as well as the entire Board of Directors of Wynn Resorts as our CEO today, tomorrow, and into the future,” he said. “Immediately upon taking over as CEO, Matt led the transformation of our company with a new executive team, new policies and procedures, and a new corporate culture–a transformation the Nevada regulators referred to at a hearing as a total ‘paradigm shift.'”

These findings come as Massachusetts regulators mull Wynn’s continued suitability to run the Encore given a damning report that found Wynn executives concealed misconduct allegations.

In a separate case, Wynn has parted ways with its security chief after he was accused of spying on an employee. James Stern, a former FBI agent, allegedly sent undercover operatives to monitor current and former employees, including former Wynn casino stylist Jorgen Nielsen.

Before he left, Stern had made visits to Japan and was part of the company’s efforts to prepare its bid for a Japan IR license. (AGB)