Wynn Leaders Helped Hide Sexual Misconduct Allegations Against Company’s Founder, Report Says

Executives at the casino operator Wynn Resorts helped hide sexual misconduct allegations against the company’s billionaire founder, Steve Wynn, the Massachusetts gambling regulator said Tuesday.

The finding by the regulator, the Massachusetts Gaming Commission, was included in a report released by the agency as it began a three-day hearing into whether the company would be allowed to operate a $2.6 billion resort near Boston starting in June as planned.

High-ranking Wynn Resorts executives knew about the allegations against Mr. Wynn but failed to follow company policy and initiate an investigation into them, according to the report. The executives also failed to report the allegations to either the full Wynn Resorts board or to the board’s audit and compliance committees, the commission found.

“In some instances particular company executives, with the assistance of outside counsel, were part of affirmative efforts to conceal allegations against Mr. Wynn that came to their attention,” the report states.

Other failings cited by the gambling commission included not properly documenting or recording the allegations and not evaluating potential conflicts of interest involving lawyers representing Wynn Resorts and Mr. Wynn in the matter.

The commission’s report also noted a company culture that made Wynn Resorts employees fear that they would lose their jobs or simply go unheard if they complained about Mr. Wynn’s behavior.

The commission began its investigation last year after The Wall Street Journal detailed multiple sexual misconduct allegations against Mr. Wynn.

A spokeswoman and several lawyers for Mr. Wynn did not immediately respond to requests for comment.

In a statement, Wynn Resorts said it had cooperated with the commission and did not dispute any of its findings. The company said it had “changed from a founder-led organization to a global enterprise overseen by a capable, independent and accountable board of directors,” separating the chief executive and chairman roles and overhauling the board’s makeup.

The company also said it had cut ties to Mr. Wynn without paying him severance, and that employees who knew of the allegations against him and did not investigate or report them were no longer at Wynn Resorts.

In February, gambling regulators in Nevada fined Wynn Resorts $20 million for ignoring complaints about Mr. Wynn’s behavior.