Friday, Sept. 24, 2004 | 11:37 a.m.
Station Casinos Inc. has agreed to pay $2.4 million in fines and investigatory costs to settle a financial reporting complaint from the state Gaming Control Board.
The Nevada Gaming Commission was scheduled to consider approval of the settlement at today's meeting in Las Vegas.
According to a settlement document signed by the three Gaming Control Board members, the company would pay $1.5 million in fines, a $700,000 compensatory payment and $173,621 in costs and expenses incurred by the board in the course of the investigation, which began in April 2003.
It's the second-highest fine assessed by the state for a violation of a money-laundering complaint, with the largest paid by MGM Mirage in 2003 when former company compliance officer Christopher Morishita failed to file a series of financial reports. MGM Mirage paid a $5 million fine in that case.
In the Station incident, Control Board investigators found similar circumstances. According to the settlement, the board acknowledged that "the violations alleged in the complaint were administrative in nature and did not indicate any intent by the respondent to intentionally circumvent the requirement of accurately reporting currency transactions on appropriate forms nor was there any evidence of money laundering."
The incident began as a series of alleged irregularities in reporting at Station's Santa Fe Station property. The company alerted the Control Board and conducted its own internal audits and the investigation ultimately led to reporting problems at the company's Sunset Station and Fiesta casino properties.
Station drafted a comprehensive report that was reviewed by Control Board investigators. The company hired gaming attorney Frank Schreck to negotiate the settlement with Deputy Attorney General Jennifer Carvalho of the Attorney General's Offices' Gaming Division.
Station Casinos agreed to waive its right to a public hearing on the charges and representatives of the firm could not be reached for comment.
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