wynn-presser-05jpg-7097c646735fe7b9.jpgNew charges of Wynn Resorts as thoroughly corrupt applicant; Mayor accused of accepting kickback, again

By Josh Resnek

The efforts of Suffolk Downs to secure a gaming license for a casino in Revere were decisively trampled by Wynn Resorts, a corrupt applicant, as proven by the outcome of the three day Massachusetts Gaming Commission hearings which ended Thursday, according to Suffolk Sterlings lawyers, in a 100 page memorandum filed in Federal Court late Friday afternoon.

The memorandum argues that revelations made during the hearings, proves Wynn Resorts culture of deception and complicity at the highest level, with secret payoffs, mistreatment of women and a clear attitude that the rules do not matter, sank Sterling Suffolk.

“The defendants’ association with felons, false certifications to the MGC, false testimony to the MGC, and the plainly conflicted relationship between the Chairman of the MGC and one of the FBT owners (of the land), enlisted Everett Mayor Carlo DeMaria, and put him on the FBT payroll. DeMaria’s ongoing effort attempted to drive innocent businessmen out of their business for the benefit of FBT and Wynn.”

The memorandum claims Wynn Resorts was awarded the license when it should have been denied because Wynn lied throughout the proceedings.

“Wynn Resorts, the ultimate awardee of the license, and its current and former control persons together with the criminally owned business (FBT) from which they purchased the land on which the Wynn casino is being built could never have prevailed in a fair contest,” it is alleged in the memorandum.

The memorandum details, more or less, exactly what was revealed in the recent three days of hearings.

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“Defendants systematically deceived the unrecused members of the MGC about the true facts which would have required, pursuant to the Massachusetts Gaming Act, a finding that each of the Wynn Defendants was unsuitable and the denial of their applications.”

Sterling Suffolk is suing Wynn Resorts and Steve Wynn, President of Wynn Resorts Matthew Maddox and Wynn Resorts Legal Counsel Kim Sinatra and FBT Realty. FBT sold the land to Wynn Resorts.

The memorandum alleges Mayor DeMaria first approached FBT Realty and that he was looking for a piece of the action.

“FBT agreed to hire a DeMaria hanger on and bagman to provide unspecified consulting services and pay the bagman, as a conduit to funnel money to DeMaria,” it is written in the memorandum.

“This arrangement (for a 3% of the land’s proceeds) put the bagman on the payroll and the mayor. This arrangement fully incentivized Mayor DeMaria to abuse the powers of his office in whatever ways would help maximize the ultimate total sales proceeds from the Everett site.”

The memorandum asserts Former MGC Chairman Stephen Crosby, who resigned last September under a cloud of suspicion, was also affiliated with FBT.

“He was an old friend and business partner of FBT’s principal owner Paul Lohnes. Crosby felt a sense of obligation to pay Lohnes back for bailing Crosby out of a failed business venture some years back earlier. Shortly after Lohnes had a private dinner with Crosby in May 2012, Lohnes raised the idea with his FBT business partners and bragged that his personal connection with Crosby ensured that Crosby would manipulate the process in favor of any casino proposal that would use the Site and thereby create profit for FBT,” it is detailed in the memorandum.

The memorandum alleges Crosby did not reveal the true nature of his business and personal relationship with Crosby as required by the State Ethics Commission and failed to disclose two meetings with FBT partners at Lohnes’ home until the FBI began raising questions about the land sale and the ownership of FBT.

It alleges that one of the FBT owners, a convicted felon, met with Maddox on at least two occasions in the spring of 2013 to discuss the Wynn purchase of the FBT land.

Maddox has testified he has no recollection of such meetings taking place.

The memorandum details how Mayor DeMaria was paid by his bagman, whose payout came to him via the bagman after the bagman sued FBT in 2015 claiming he had not been paid all of his promised share of the proceeds from the sale of the Everett site. The bagman’s lawsuit was settled on undisclosed terms in December 2016.

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