Debts are coming due in the Wayne Nix illegal bookmaking case with its intriguing connections to the Las Vegas Strip. His former partner Edon Kagasoff can attest to that.

Kagasoff recently learned that the more than $3.1 million in cash he had once stockpiled in his home and bank accounts had been ordered forfeited by U.S. District Judge Dolly M. Gee as part of his plea agreement in the case. The final order, signed Feb. 15, gives some insight into the cash-rich action Kagasoff and Nix were booking with celebrities and high-rollers through the Costa Rica-based Sand Island internet sports book. Sand Island’s owner of record is Joseph Castaleo, who previously pleaded guilty to operating an illegal gambling business.

Kagasoff’s stash included approximately $525,000 found at his home, $2.1 million deposited in four Bank of America accounts, $491,000 in two Citibank accounts and another $47,000 from a Wells Fargo account.

That was the hard part. Indicted in March 2022, Kagasoff’s plea agreement and sentence raised barely a welt. He was placed on probation for just six months. The guy already has his passport back.

Pending another delay, Nix awaits a scheduled March 8 sentencing date.  He pleaded guilty on April 11, 2022, to one count of conspiracy to operate an illegal sports gambling business and one count of filing a false tax return. His sentencing has been delayed during his cooperation with the investigation being brought by the U.S. Attorney’s Office in the Central District of California, IRS Criminal Investigation agents, Homeland Security Investigations and other members of the El Camino Real Financial Crimes Task Force.

With a new document filed Feb. 20 under seal, it wouldn’t be surprising to see the Nix sentencing delayed. From what is known about the investigation, there’s likely more work to do.

Among the more high-profile names to surface in the investigation is former Los Angeles Dodgers slugger and Nix customer Yasiel Puig. The ballplayer is charged, but not for gambling on ball games. Originally hit with a single count of lying to federal law enforcement, Puig backed away from his plea agreement and now faces trial for that offense and for obstructing the investigation.

Of much greater interest to Nevadans, especially those employed in the executive offices of Las Vegas Strip casino resorts, is the scheduled May 8 sentencing of former MGM Grand and Resorts World Las Vegas President Scott Sibella after he accepted a plea agreement for a single violation of the Bank Secrecy Act. Sibella admitted he allowed Nix to gamble millions at MGM despite knowing his status as an illegal bookmaker, which violated the law’s aptly named “know your customer” rule.

Given the Kagasoff wrist slap and what promises to be a glorified scolding for Nix, despite the possibility of a five-year sentence, it’s hard to imagine that Sibella will face any real jail time. Especially if, as he said in a statement, “I take full responsibility for my actions and inactions, but I must make clear I took no action for my personal benefit or inurement.”

Sibella’s statement is complicated by court documents that say he not only knew about Nix’s business, but “placed bets directly with Nix and one of Nix’s agents. Nix assigned account number #3507 on the Sand Island Sports website to Sibella to track Sibella’s betting history.”

Of course, if Sibella bets on sports as poorly as I do, there wouldn’t be much in the way of “personal benefit.”

Other areas of the investigation ought to give the Gaming Control Board’s Maytag repairmen pause. According to court documents, Nix frequently traveled from his California home to play at Strip casinos, including but not limited to the MGM Grand and The Cosmopolitan. He typically brought cash in “high-denomination bills, and, at times, Nix transported the cash in duffle bags, brown paper bags, or leather purses.”

In other words, the high-roller was enjoying money laundering services and hiding in plain sight.

The MGM was put on the spot, but court documents name other casinos affiliated with the company in the Nix money-changing effort, including Aria, The Mirage and the Bellagio. The company signed a non-prosecution agreement, paid a $7.45 million fine and agreed to overhaul its anti-money laundering compliance program.

Aside from Sibella and two casino hosts not yet publicly charged, that makes me wonder just how many other casino employees — including executives — noticed Nix and his pile of money and concluded there was nothing suspicious about his activity. I am also left to wonder whether we’ll ever find out.

One thing the investigation has accomplished: It’s sending a clear message that federal authorities, at least those based in California, are looking closely at illegal bookmaking networks and their sources of money laundering. 

For these reasons and more — including reliable sources who say other illegal bookmakers with Strip casino accounts have been interviewed by federal agents — I’m betting we haven’t heard the last of the Las Vegas end of this investigation.

John L. Smith is an author and longtime columnist. He was born in Henderson and his family’s Nevada roots go back to 1881. His stories have appeared in Time, Readers Digest, The Daily Beast, Reuters, Ruralite and Desert Companion, among others. He also offers weekly commentary on Nevada Public Radio station KNPR.