Ex-Wynn salon director sues company, CEO for allegedly spying on him

The former artistic director of a salon at Wynn Las Vegas has filed a lawsuit against Wynn Resorts CEO Matt Maddox and two former Wynn employees that alleges invasion of privacy and civil conspiracy.

Jorgen Nielsen, who was a source in the Wall Street Journal’s January 2018 report of alleged sexual misconduct by former Wynn CEO Steve Wynn, filed the lawsuit Thursday in Clark County District Court. Nielsen oversaw salon operations at Wynn Las Vegas and Encore Las Vegas until 2013.

The lawsuit names Maddox, former Wynn general counsel Kim Sinatra, former Wynn Director of Security James Stern and Wynn Resorts as a corporate entity.

Steve Wynn has denied all allegations of sexual harassment since they were first reported.

Nielsen’s lawsuit accuses Wynn operatives of conducting “a covert sting operation” two months after the allegations first came to light and of spying on him through an individual posing as a customer of the Palms Salon where Nielsen had moved.

Nielsen said the customer attempted to find derogatory or personal information about him to provide to Steve Wynn, who filed a defamation lawsuit against Nielsen.

In a Friday email, a Wynn Resorts spokesman said, “This lawsuit is without merit and we will vigorously defend ourselves against it. As Matt Maddox clearly stated in his sworn testimony before the Massachusetts Gaming Commission, the company did not authorize any inappropriate surveillance activity. Ms. Sinatra and Mr. Stern no longer work for Wynn Resorts.”

Efforts to reach Steve Wynn and Sinatra have been unsuccessful.

Stern is CEO and managing partner of Las Vegas-based Global Gaming & Resort Security, which provides security and gaming advice internationally.

“Mr. Stern has an impeccable military and law enforcement background, denies any wrongdoing, and we will file a motion to dismiss at the appropriate time,” his attorneys, David Chesnoff and Richard Schonfeld, said in an email Friday.

Details of the spying incident were disclosed in a three-day adjudicatory hearing of the Massachusetts Gaming Commission in April into whether the company remained suitable to open the Encore Boston Harbor resort later in the year.

Stern testified in the hearing, and it was disclosed that he also conducted surveillance of Steve Wynn’s ex-wife, Elaine Wynn, the company’s top shareholder. Stern left the company two days after the hearing concluded.

The Massachusetts Gaming Commission fined the company $35 million and Maddox individually $500,000, but the company was allowed to keep its license and successfully opened Encore Boston Harbor on June 23.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.