Wynn Resorts' board of directors was under scrutiny Wednesday as it defended its actions after learning in 2016 of founder Steve Wynn's settlement with a woman accusing him of sexual misconduct.
Every member of the board testifying in a Massachusetts Gaming Commission hearing to decide the fate of its Everett casino license said they were shocked by the 2018 Wall Street Journal report detailing multiple sexual assault allegations against the casino mogul.
Board member Patricia Mulroy was asked if she was aware in 2016 that the allegations against Wynn involved a sexual assault or rape. She said she was not.
"To say that I was disappointed would be very much an understatement," said board member Jay Johnson. "It rocked my boat."
Mulroy testified that the settlement came to their attention in a claim Elaine Wynn brought against her ex-husband, but the board was assured by then-General Counsel Kim Sinatra that it was an "outlier."
One commissioner pressed Mulroy, saying, "You said the board was angry at Elaine Wynn, why weren't they angry at Steve Wynn?"
Mulroy responded, "Because they didn't believe Elaine Wynn."
A gaming commission investigation found Elaine Wynn notified the general counsel about the settlement years earlier.
But Mulroy testified the board was under the impression it was a personal matter between the Wynns in their legal battles against each other.
"I could kick myself from here to China that I didn't — that I didn't speak up," Mulroy said.
The hearing continues for a third and final day Thursday, when Elaine Wynn is expected to testify.