Personal Injury

Resort conglomerate MGM must rehire and compensate whistleblower fired for reporting SEC violations

MGM Resorts International logo Resort conglomerate MGM must rehire and compensate whistleblower fired for reporting SEC violationsLAS VEGAS, N.V. – MGM International must immediately reinstate and pay an employee $325,000 for violating the state’s whistleblower protection laws, the Occupational Safety and Health Administration (OSHA) has ordered.

According to OSHA, the Signature Condominiums LLC, a subsidiary of MGM Resorts International, fired an employee in retaliation for reporting co-workers who engaged in “forecasting” in an effort to increase condominium sales. Forecasting is this context is an illegal activity in which potential buyers are provided information about projected condo occupancy rates and revenues.

Under Securities and Exchange Commission (SEC) rules, if a condominium unit is offered for sale with an emphasis on forecasting the economic benefits to the buyer, it is deemed a “security,” and can only be offered by a professional security broker licensed to sell securities.

The terminated employee’s coworkers were not licensed security brokers, OSHA determined.

“This employee tried to ensure the employer was following the law and paid a hefty price for speaking up,” said Ken Atha, OSHA’s regional administrator in San Francisco.

In addition to reinstatement and $325,000 in compensation, OSHA ordered MGM to post a notice informing all employees of the whistleblower protections under the Sarbanes-Oxley Act, which mandates certain corporate and auditing responsibilities.

Additionally, OSHA ordered MGM to clear the employee’s personnel record of any references to the unlawful termination and provide a neutral job reference if needed.

MGM Resorts International is headquartered in Delaware and owns and operates several Las Vegas hotels and casinos, including the MGM Grand Las Vegas, the Bellagio, and New York-New York.


The Occupational Safety and Health Administration