New revelations have exposed how criminal groups sneaked huge sums of dirty money into Las Vegas‘s upscale gambling world. They used casino employees and underground financiers to hide where the cash came from. 

Underground Cash Brokers Tied to Wynn Scandal Exposed in Newly Released Case Records

Recently released investigation records linked to federal lawsuits and regulatory deals show how a loose network of middlemen, VIP hosts, and foreign gamblers created an unofficial system. This setup worked well for years at Wynn Las Vegas and other casinos on the Las Vegas Strip.

The findings add to the resort’s 2024 deal with federal prosecutors, where it agreed to give up about $130 million to settle claims that it did not stop unlawful money-transfer operations on its grounds. State regulators this year added a separate $5.5 million fine, pointing to ongoing compliance issues tied to the same behavior.

Investigators say the case centered on a group of middlemen in Las Vegas who helped Chinese high-stakes gamblers get US money to play with. Court documents from San Diego reveal that by 2020, four people — Lei Zhang, Bing Han, Liang Zhou, and Fan Wang — admitted to running illegal money-swap businesses. These operations sidestepped American reporting requirements and Chinese rules about moving money out of the country. As part of their guilty pleas, they had to give up hundreds of thousands of dollars.

Criminal Networks Used VIP Rooms and Casino Staff to Funnel Dirty Money

Law enforcement officials explain the simple process: people in China sent money through mobile banking apps, while underground money handlers gave out matching amounts of US cash in Las Vegas, often in private rooms or quiet spots on casino floors. CNN reports that investigators believe some of this cash came from sex work, people smuggling, and drug-dealing groups, making this unofficial money route appealing to drug gangs looking to get rid of large amounts of cash from selling fentanyl and other drugs.

Data collected in federal cases reveals that some Wynn hosts played a role in connecting gamblers with brokers. Their motivation seemed to stem from higher betting volumes and the chance to share in commissions. Investigators’ analyses of phone records indicated constant contact between hosts and money couriers. A 2019 undercover operation showed how well-established this system had become. Agents pretending to be players met Zhang in a hotel room. He arrived with a large amount of cash and a person who investigators said was in charge of a prostitution operation.

Federal prosecutors say the bigger picture shows a problem across the country where hidden groups use casinos to turn dirty money into clean cash. Wynn says ex-employees were behind the wrong actions and points out it has now hired more compliance staff and put in place better checks. Still, as more details come to light, casinos on the Las Vegas Strip are under closer watch.