Wynn Security Chief Resigns After Saying He Spied On Elaine Wynn

Editor's Note: Stern resigned from after the hearings. An earlier version of this story, citing a brief, stated that Stern was fired.

EVERETT, MA — The head of security at Wynn Resorts resigned last week after testifying that he spied on Steve Wynn's ex-wife, Elaine, according to a legal brief filed Monday. James Stern, a former FBI agent, admitted to the Massachusetts Gaming Commission that he used company money to surveil Elaine Wynn.

Stern told investigators he spied on Elaine Wynn during a legal dispute with former Wynn board member Kazuo Okada. The surveillance did not pertain to the Wall Street Journal story detailing sexual misconduct allegations against Steve Wynn, which was published years after litigation involving Okada, according to the brief.

"For avoidance of doubt, no surveillance was undertaken on any alleged victims," the brief stated.

Both a spokesperson for Elaine Wynn and an attorney for Okada denied the two ever met, MassLive reported.

Last week's testimony was the first time details emerged about Stern's purported surveillance of Elaine Wynn, of which he said both her ex-husband and current Wynn CEO Matt Maddox were unaware. Investigators also found Stern surveilled Jorgen Nielsen, a former Wynn employee and source to the Wall Street Journal.

The commission's report stated that Stern believed Nielsen had employees' personal information and was collaborating with Elaine Wynn to hurt Wynn Resorts and its founder, according to MassLive.

Stern resigned April 6, the brief stated.

"Any person hired to replace Mr. Stern as the head of corporate security and investigations will report to Wynn Resorts' Chief Global Compliance Officer," according to the brief. "No surveillance will be conducted of employees or third parties without the permission of the Chief Global Compliance Officer and the General Counsel or other in-house counsel to whom she delegates responsibility."