Kim Sinatra leaving Wynn Resorts
Wynn Resorts is parting ways with a top executive who apparently had been aware of a $7.5 million private legal settlement Steve Wynn had negotiated with a former employee to settle allegations of sexual misconduct.
In a short, two-sentence filing with the Securities and Exchange Commission on Thursday, Wynn said Kim Sinatra would step down as executive vice president, general counsel, and secretary on July 15. The filing said the terms of her departure had not been finalized yet.
Sinatra’s departure could play a key role in the Massachusetts Gaming Commission’s suitability review of Wynn, which has dragged on for more than five months. Sinatra is a key player at Wynn, often considered the No. 2 employee at the company behind CEO Matt Maddox. She is paid $13 million a year, on par with CEOs at other gaming companies. She also played a hands-on role in landing a Massachusetts casino license, which allowed the company to begin construction of a $2.5 billion casino and hotel in Everett that is scheduled to open next year.
The Massachusetts casino license is now in doubt, as investigators for the Gaming Commission try to determine whether the company is suitable to retain its license after allegations of sexual misconduct were raised against Steve Wynn, prompting his resignation. Many members of the company’s board of directors have also left.
Elaine Wynn, Steve Wynn’s ex-wife, alleged in a lawsuit against the company that she had asked Sinatra in 2009 whether she knew anything about a settlement her ex-husband had negotiated with an employee in 2005. She claimed Sinatra told her “that Mr. Wynn had decided the matter should not be disclosed to the board or other company counsel.” Sinatra several months ago issued a statement saying Elaine Wynn had only made an oblique reference to a settlement during their 2009 conversation.
Despite the allegations by Steve Wynn’s ex-wife, Sinatra has given no indication her job was in trouble. She joined Maddox in April before the Gaming Commission to give reassurances that the company has moved on from Steve Wynn.
“There is no association with Steve Wynn. There is no business association with Steve Wynn,” Maddox said at the time. “I’m my own man. Kim Sinatra is her own woman.”
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