Published on: November 18, 2025, at 07:09h.
Updated on: November 18, 2025, at 07:10h.
- Wynn hosts allegedly facilitated underground banking for illicit cash.
- Recent findings indicate cartel-related funds funneled through high-stakes gambling.
- Undercover operation uncovers cash linked to prostitution delivered to casino patrons.
In September 2024, Wynn Las Vegas consented to surrender $130 million as part of a federal non-prosecution agreement for its involvement with unlicensed money-transmitting operations and inadequate anti-money-laundering (AML) practices. This marked the largest forfeiture imposed on a casino in the U.S.
Recent revelations from a CNN investigative report shed light on how these illegal activities were orchestrated. Specific Wynn VIP hosts were found to be complicit in laundering money for underground Chinese banking networks linked to drug cartels, prostitution, and human trafficking.
The core of the operation centered around federal cases in San Diego involving four Chinese nationals based in Las Vegas: Lei Zhang, Bing Han, Liang Zhou, and Fan Wang.
By 2020, all four had pleaded guilty to running an unauthorized money-transmitting business that primarily serviced Chinese gamblers seeking cash to wager in Las Vegas, according to court documents.
The Cash Flow
Zhang was responsible for gathering large amounts of U.S. currency from various sources and delivering it to gamblers within the country. Investigators revealed to CNN that these sources potentially included networks linked to prostitution, human smuggling, and Mexican drug trafficking.
The gamblers would then send an equivalent sum in yuan using Chinese mobile payment applications to accounts controlled by Zhang or his associates. This method allowed them to circumvent U.S. financial reporting regulations as well as Chinese capital outflow restrictions.
Zhang indicated that he was frequently referred to clients by casino hosts at Wynn and other establishments. According to his sentencing documentation and comments from the Department of Justice, these hosts benefited from increased cash gambling by high-stakes players and occasionally received a portion of Zhang’s earnings.
According to phone records referenced in the CNN investigation, the Wynn hosts engaged in communication with these individuals hundreds of times each week.
A plea agreement for Wang reveals he was similarly introduced to players by casino hosts, who were aware of their need for cash to continue gambling.
Undercover Operation
In May 2019, an undercover agent, posing as a gambler, set up a meeting with Zhang in a Las Vegas hotel room, as per investigators quoted by CNN.
Zhang arrived with a bag and was accompanied by a woman described by authorities as a “madam” overseeing prostitution activities.
When agents entered the suite, they discovered four stacks of cash totaling approximately $150,000. Investigators reported that the woman contributed part of this cash, which allegedly originated from her prostitution activities, intending to oversee the transaction.
Zhang received a 15-month prison sentence and was ordered to forfeit $150,000. The other three also agreed to relinquish substantial amounts, as per DOJ statements.
Evidential materials from these four Las Vegas cases assisted in informing the federal investigation that led to Wynn’s 2024 settlement. The DOJ’s agreement referenced earlier misconduct extending back to 2014, which involved “flying money” transfers and proxy gambling schemes associated with international patrons.
Financing Drug Activities
U.S. officials have highlighted that such underground banking practices, predominantly managed by Chinese brokers, serve as the preferred means for Mexican drug cartels to launder substantial cash profits derived from fentanyl and other drug trades. Prosecutor Mark Pletcher estimated the underground-banking issue could exceed “nine figures” annually.
Wynn asserts that these actions are historical, that implicated employees have been dismissed, and that measures have been taken to enhance internal controls. The company also mentioned the addition of compliance personnel and the formation of an independent oversight committee following the federal inquiry.
Apart from the federal forfeiture, the Nevada Gaming Control Board imposed a fine of $5.5 million on Wynn in May 2025 concerning state-level AML violations connected to these infractions.