Fraud Lawsuit Over Encore Boston Harbor Land Deal Heads to Trial

Fraud Lawsuit Over Encore Boston Harbor Land Deal Heads to Trial

By Michael Davidson

December 16, 2024 at 01:54 PM

A fraud case against Wynn Resorts regarding the Encore Boston Harbor land sale will proceed to trial, following a recent ruling by Suffolk Superior Court Judge Kenneth W. Salinger.

FBT Everett Realty, the former landowner, alleges that Wynn Resorts manipulated concerns raised by the Massachusetts Gaming Commission (MGC) to force a price reduction from $75 million to $35 million for the casino site.

Encore Boston Harbor casino exterior

Encore Boston Harbor casino exterior

Key details of the case:

  • FBT purchased the former chemical plant site for $8 million in 2009
  • A verbal agreement for $75 million was allegedly made with Wynn in 2012
  • Price was later reduced to $35 million due to concerns about former FBT director Charles Lightbody
  • Lightbody's alleged criminal connections were later determined to be a non-issue
  • Federal court cleared FBT directors of fraud charges in 2016

The lawsuit claims Wynn falsely represented that the MGC would deny their casino license unless the land price was reduced. While Judge Salinger dismissed claims against the MGC, he found sufficient evidence to proceed with the case against Wynn Resorts.

The bench trial is scheduled for May or early June 2025. This case adds to previous controversies surrounding the license award, including the 2018 resignation of MGC chair Stephen Crosby over alleged bias toward Wynn Resorts.

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