Bidder Claims Fraud on Boston Casino License Process

Sterling Suffolk Racecourse (Sterling) claims the process where Wynn Resorts received a license
to establish a casino resort in Boston, Massachusetts was fraudulent. The lawsuit was filed last
September, and Sterling is seeking to recover damages amounting to $3 million.
They assert that the licensing process was marred with fraud. Further, they claim it was filled
with cronyism among many improprieties. Wynn had purchased the property for a whopping $75
million.
Long-time Friendship
Sterling had plenty of claims to back up their suit. For instance, the suit was recently amended to
include Stephen Crosby. Stephen Crosby was the former chairman of the Massachusetts Gaming
Commission (MGC). Sterling claims that Crosby was a long-time friend of one of the owners of
the property which had been recently purchased by Wynn Resorts.
Apparently, this friend goes by the name of Paul Lohnes. Lohnes is the majority owner of the
joint venture of FBT Everett Realty (FBT). FBT is the owner of the property, which Wynn had
recently purchased. Lohnes and Crosby’s friendly relations goes back to a very long time, and
Crosby was still the chair of the MGC when the purchase of Wynn was made.
Crosby and Lohnes had allegedly met on 2012, which is around the same time Wynn was
looking for a property to establish its casino resort. The Everett site had not yet been marketed
for use as a casino.
More People Involved
It was also recently discovered that Charlie Lightbody was involved as a partner in FBT.
Lightbody reportedly had ties to organized crime.
Sterling had also included Carlo DeMaria, who was the mayor of Everett. He was reportedly
involved in the sale of the property, and that he employed a convicted criminal to become a
consultant for FBT. DeMaria was also accused of receiving kickbacks and a lot of benefits just to
make the deal between FBT and Wynn possible. Sterling has been specific in political cronyism
and conspiracy allegations regarding DeMaria, Lightbody, and the rest of the important people
who were essential in making the deal come into fruition to the exclusion of Sterling.
This has only been one of several cases that Wynn is facing. Another issue that the company is
facing is the litigation regarding sexual misconduct against the company’s former CEO and
founder, Steve Wynn. He is already being investigated by the Nevada Gaming Control Board.
The MGC had also finished its investigations with Steve Wynn, but they are just waiting for the
ruling from Nevada before they issue their own statement.