Boston Harbor Encore Land Sale Fraud Matter Heads to Court Trial
Posted on December 16, 2024, at 05:50h and last updated on December 16, 2024, at 10:25h
In a long-standing dispute, Wynn Resorts is set to face a trial for fraud and unfair trade practices, as claimed by FBT Everett Realty. The trial, scheduled for May or early June 2025, stems from events that occurred between 2009 and 2015.
The controversy began when Wynn Resorts was awarded the gaming license in 2015, a decision that was controversial and faced allegations of bias towards the company. FBT Everett Realty, the original owners of the disused chemical plant on the Mystic River, had sold the land to the company for $8 million in 2009.
According to FBT Everett Realty, they had a verbal agreement with Wynn Resorts in 2012 to sell the land for $75 million if Wynn won the bid for the sole east Massachusetts gaming license. However, the casino giant is accused of leveraging concerns about a former director, Charles A Lightbody, who retained a concealed interest in the company, to pressure FBT into accepting a lower price of $35 million.
The Massachusetts Gaming Commission (MGC) had uncovered Lightbody's concealed interest during their due diligence, but Judge Kenneth W. Salinger of Suffolk Superior Court agreed that there was enough evidence to support FBT Everett Realty's claim. Wynn Resorts, on the other hand, is said to have falsely represented that the MGC would deny its casino license if the price was not lowered.
Notably, Michael S. Bonfanti, who resigned from the MGC in 2018 due to alleged bias towards Wynn Resorts, was the person who stepped down amid these allegations, which he denied. The article, written by Philip Conneller, can be found on casinoorgphilc's platform and is related to Gaming Business, Regulation, and Tribal Gaming.
It is important to note that Judge Salinger dismissed claims against the MGC, determining that the regulator did not formally direct Wynn to lower the price. Lightbody, who had a criminal record and reputed Mafia ties, was cleared of federal fraud charges in 2016, with a judge determining that a felon can profit from selling an asset to a casino company but not from actual gaming operations.
The trial promises to shed light on the controversial decision made by the MGC in 2015 and the allegations of bias towards Wynn Resorts that followed. As the case unfolds, the public will be closely watching to see how the court will rule on this significant matter in the gaming industry.
