This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Wynn Resorts Boots Director, Redeems Stake

Stocks in this article: WYNN

NEW YORK ( TheStreet) --The board of Wynn Resorts (WYNN) is booting company co-founder and director Kazuo Okada and forcibly buying out his stake in the company.

The moves follow what the company says was a year-long investigation into potentially improper payments to overseas gaming regulators by Okada and his associates. Okada was Wynn's largest shareholder.

They also come after the disclosure earlier this month that the Securities and Exchange Commission was looking into donations Wynn made to educational institutions in Macau, China, where Wynn operates casinos.

In a news release Saturday, Wynn Resorts said its own probe, led by former FBI Director Louis Freeh, uncovered "more than three dozen instances over a three-year period in which Mr. Okada and his associates engaged in improper activities for their own benefit in apparent violation of U.S. anti-corruption laws."

> > Bull or Bear? Vote in Our Poll

All board members with the exception of Okada voted to request his resignation, the release said.

The board also has redeemed 24 million shares of Wynn Resorts owned by Aruze USA, of which Okada is the principal shareholder.

Based on Friday's closing level of $112.69, those shares have a market value of $2.7 billion.

But Wynn Resorts is compensating Okada with significantly less. The company said it will pay him $1.9 billion in 10 years. The payment is in line with Wynn's articles of incorporation, the release said.

The news release also said that Wynn on Saturday filed a lawsuit against Okada and his company's Aruze USA and Universal Entertainment Corp. in Nevada District Court for breach of fiduciary duty and related offenses.

Wynn Resorts operates high-end casinos in Las Vegas and Macau, China.

It's not the only U.S. casino company to be troubled with probes into potential overseas bribery.

Rival Las Vegas Sands (LVS) is being investigated for its compliance with the U.S. Foreign Corrupt Practices Act.

Shares of Las Vegas Sands ended Friday down 47 cents at $52.79.

This article was written by a staff member of TheStreet.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs