Former MGM Grand President Scott Sibella avoided a prison term on Wednesday when a federal judge sentenced him to one-year probation for federal anti-money laundering violations.
Sibella, a longtime casino executive, apologized to friends and family for inflicting pain on them during an intense multi-year investigation. A former executive at MGM Grand and Resorts World Las Vegas, Sibella pleaded guilty in January to one count of failure to file a suspicious transaction report, pursuant to the Bank Secrecy Act.
Addressing U.S. District Judge Dolly Gee at a Los Angeles sentencing hearing, Sibella vowed that he would never return to her courtroom again. The sentence appears to close the chapter on Sibella’s tumultuous period at MGM.
But major questions surrounding a multi-jurisdictional investigation into the illegal guilty to stealing millions of dollars from the MLB star.
Ippei Mizuhara, the interpreter, has itted to stealing millions from Ohtani to cover his gambling losses. One bookmaker in the comprehensive probe has yet to be indicted, while another awaits sentencing in the fall.
Back in Las Vegas, speculation has intensified that two other casinos may be involved in a sweeping inquiry conducted by the U.S. Justice Department, the FBI, the Department of Homeland Security, and several other law enforcement agencies.
Petrified on whether they will be named criminally, numerous figures in the case “are not sleeping well,” this week, a confidential source told Sports Handle on Thursday evening.
A difficult period i1g3t
Sibella’s conviction stems from his association with bookmaker Wayne Nix, a former minor league pitcher in the Oakland A’s farm system. Shortly after his retirement from baseball in the early 2000s, Nix began running an illegal sports betting ring in Southern California. A host of celebrities placed wagers with the illicit book, including former MLB All-Star Yasiel Puig, ex-NBA All-Star Scottie Pippen, and Maverick Carter, the manager of LeBron James.
The operation allegedly funneled client wagers to Sand Island Sports, an offshore call center located in Costa Rica.
In 2022, Nix plead guilty to federal tax fraud charges after itting that he failed to report $1.5 million in income from the operations over a two-year period. Nix also itted to running the business for more than two decades and employing at least three former pro baseball players in his enterprise.
Although the scale of the enterprise is still unclear, a California check-cashing business pled guilty in the same year for failure to maintain an effective anti-money laundering program. Celebrity Financial, the check-cashing store, itted to cashing more than $18 million in winnings.
The charge against Sibella surrounds a $120,000 cash payment Nix made to an MGM Grand marker in 2018, according to court filings. Sibella itted to law enforcement that he believed that Nix served as a bookmaker, but he didn’t think Nix acted in an untoward manner to cheat the casino.
In January, MGM Grand and The Cosmopolitan entered into a settlement with the Justice Department that required the casinos to pay a combined fine of $7.45 million. In a non-prosecution agreement with the Justice Department, the casinos accepted responsibility for laundering illicit funds owned by Nix.
According to court records, Nix wagered at least $4 million in ill-gotten funds with the casinos.
Following his sentencing on Wednesday, Sibella itted that his decision to plead guilty was not an easy one. Moreover, the investigation has created a taxing period for Sibella and his immediate family, he noted.
Official statement from Mr. Sibella: pic.twitter.com/XFepTR4nfp
— Las Vegas Locally 🌴 (@LasVegasLocally) May 8, 2024
Developments in Mizuhara case 2514n
Mizuhara, according to the U.S. Attorney’s Office, will plead guilty to federal bank fraud and tax charges. Mizuhara, who began serving as Ohtani’s personal interpreter in 2017, allegedly stole nearly $17 million from the MLB star. Mizuhara is facing up to 33 years in federal prison.
The Dodgers fired Mizuhara in March amid reports that he owed millions in gambling debts to an illegal bookmaker. Over a three-year period through January, Mizuhara made approximately 19,000 illegal bets, with a range between $10 and $160,000 per wager, according to a federal complaint.
While Mizuhara accumulated winnings of $142.3 million, the amount was offset by losses of $182.9 million.
Lionsgate is developing a TV series on the betting scandal involving Shohei Ohtani's former interpreter, Ippei Mizuhara.
The untitled project is described as "a story of trust, betrayal and the trappings of wealth and fame." pic.twitter.com/Jb5GtY48lD
— Front Office Sports (@FOS) May 9, 2024
The wagers were placed with an enterprise run by Matt Bowyer, a California bookmaker. A known whale player in Vegas sports betting circles, Bowyer operated one of the nation’s largest betting-bookmaking operations, multiple sources told Sports Handle.
An agent of Bowyer placed wagers with Nix’s operation, a source informed Sports Handle last month.
John Spilotro, an attorney for Sibella, indicated on Wednesday that his client has no connection with Mizuhara.
“Contrary to published reports, Mr. Sibella never used a betting and never made any illegal bets,” he said in a statement provided to the Nevada Current. “In addition, Mr. Sibella had no involvement in the bookmaking activities of Mathew Bowyer and nothing whatsoever to do with Ippei Mizuhara, the former interpreter of Shohei Ohtani.”
Though Gee, the federal judge, said that Sibella “turned a blind eye,” to potential illicit behavior, she decided against giving him prison time partly because he did not have a previous criminal record.
A new figure in the case 33e41
Since Mizuhara’s termination from the Dodgers, reports have surfaced that he sent multiple six-figure wagers to an associate of Bowyer through Ohtani’s bank .
According to ESPN, an individual with access to Ohtani’s sent at least two wire transfers of $500,000 each to a Bowyer associate last fall. Earlier this week, ESPN reported that Mizuhara wired funds to “Real Housewives of Orange County” star Ryan Boyajian, an associate of Bowyer.
Bowyer, according to court records, instructed a bettor to wire thousands of dollars to an acquaintance described in filings as “Associate 1.” Last week, ESPN reported that Bowyer lost approximately $7.9 million at Resorts World Las Vegas over a 17-month period through October 2023.
Sibella, who served as president of the casino after leaving the MGM Grand, was terminated by Resorts World last fall for violating company policy.
Ryan Boyajian, 'Real Housewives of Orange County' star, tied to Ippei Mizuhara scandal: report. https://t.co/udC0450G7X Click the image to read more:
— FOX 11 Los Angeles (@FOXLA) May 9, 2024
The individual described in the complaint as “Associate 1” is Boyajian, ESPN reported on Wednesday. Boyajian, according to ESPN, transferred a portion of Mizuhara’s losses to marker s at Resorts World and a California tribal casino. The reality TV star has been granted immunity by prosecutors, ESPN reported, citing multiple sources.
As of Friday, Resorts World has not been charged criminally in the matter. Efforts to reach Resorts World this week were unsuccessful.
Federal law enforcement officials raided Bowyer’s last fall for suspicion of operating an illegal bookmaking enterprise, according to multiple sources. Bowyer has not been indicted in the case.
Mizuhara is scheduled to be arraigned on May 14th in Los Angeles.
