Rubinstein’s experience speaks to secretive nature of Wynn Resorts corporate culture By John L. Smith, CDC Gaming Reports April 8, 2019 at 8:00 pm Obscured in the many sensational elements of the 209-page final report by the Massachusetts Gaming Commission in its investigation of the sexual harassment scandal inside Wynn Resorts is an intriguing moment that might shine a little light on the atmosphere at the company under its former chairman, Steve Wynn. Wynn, in a deposition in an unrelated case, claimed he was being extorted when he paid $7.5 million in 2005 to settle with a former company manicurist who accused him of rape. The settlement, handled through Wynn’s personal attorney Frank Schreck, labor and employment lawyer Gregory Kamer, and attorney James Pisanelli, was so secretive around the company that Wynn Resorts general counsel Marc Rubinstein wasn’t informed of it. According to the investigative report, Rubinstein learned of the settlement essentially by accident after reviewing an invoice from Kamer’s office that he didn’t “recognize or authorize.” When Rubinstein asked Kamer about the invoice, Kamer referenced the 2005 settlement agreement. “He thought I knew, and I said, ‘I don’t know the first thing about this. What are you talking about?’” Rubinstein told investigators. “And I think at that point he stopped really talking and referred me to Marc Schorr.” One of Wynn’s closest friends, Schorr was the company’s chief operating officer. A strange thing happened when the curious Rubinstein followed up with Schorr, according to the report. When he asked about the settlement, “Mr. Schorr rebuffed his inquiry and told him it was not any of his business.” Which must have come as quite a surprise to the general counsel of the company. It was then Rubinstein sought the advice of his own counsel. He was told by attorney Jerome Coben to gather more information. “At that time, according to Attorney Rubinstein, he became aware that there had been a claim involving Mr. Wynn’s relations with an employee, and he may have known of the pregnancy claim, but he was not told of the rape allegation.” When Schorr learned that Rubinstein was doing his due diligence and had sought advice of another lawyer, Schorr “was clearly unhappy,” according to the report. Rubinstein eventually was allowed access to the settlement itself, but only under secretive conditions: He could read it, but he couldn’t copy it or take notes about what he read. The settlement, he recalled, was mostly focused on the paternity issue. The report made it clear that Rubinstein wasn’t informed of the sexual assault allegation. He told investigators, “certainly if there was an allegation of criminal misconduct, that it was that serious, I think there would’ve been an obligation, or at least an inclination to advise at least the Gaming Control Board Chairperson.” A few months later, Rubinstein recalled having a conversation with Wynn. From the report: “…Mr. Wynn told him that he needed Attorney Rubinstein’s loyalty to him first and the Company second. Mr. Wynn gave Attorney Rubinstein the choice of either 1) tearing up his employment contract and working for the Company on an at-will basis, or 2) leaving the company with the severance amount set forth in his employment contract. Attorney Rubinstein told investigators that Mr. Wynn told him he was looking for “a brother and a lawyer.” Apparently, Wynn was looking for a little brother, one he could control. Rubinstein resigned from his position as general counsel a few months later. Massachusetts Gaming Commission investigators then duly noted Rubinstein’s comment that Wynn’s behavior was “always appropriate” in his presence. Contact John L. Smith at firstname.lastname@example.org. On Twitter: @jlnevadasmith.