Steve Wynn, His Companies Trim Worker’s Suit Alleging Forced Sex

(Bloomberg Law) -- Steve Wynn, Wynn Resorts Ltd., and Wynn Las Vegas LLC convinced a Nevada federal judge to narrow a female former employee's suit alleging she was required to perform sexual acts on Wynn and a very important guest.

Brenna Schrader failed to plead the predicate acts needed to pursue claims under Nevada's Racketeer Influenced and Corrupt Organizations law against Wynn and the companies, the U.S. District Court for the District of Nevada said Thursday.

According to Schrader, the abuse began in late 2012 when she was assigned to massage Wynn and he ordered her to perform oral sex on him. She thereafter became a “24/7, on call, sexual servant,” including Wynn recommending her as a massage therapist to important guests, she says.

Her state law RICO claims alleged the abuse amounted to unlawful trafficking. But she failed to allege Wynn or the companies transported her in or around the country or that she entered the U.S. unlawfully, the court said.

Schrader's bid to base her state RICO claims on the abuse amounting to involuntary servitude similarly failed as did those for sex trafficking, Judge James C. Mahan said. She didn't allege she was paid for the sex. She only alleged the loss of credit for time worked and vacation time, which isn't the same as collecting a fee or something else of value, the judge said.

Schrader likewise can't base her RICO claims on an allegations that she was, in essence, forced to earn a living from prostitution, Mahan said.

The one predicate act she successfully pleaded was sexual assault, but Nevada's RICO statute requires two predicate acts for a viable claim, he said.

But Schrader can pursue an intentional infliction of emotional distress claim against Wynn based on the alleged abuse by him in 2017 and 2018, the judge said.

Her IIED claim failed to the extent it was founded on the alleged abuse by the unnamed VIP guest, the court said.

Schrader also can pursue her civil conspiracy claim against Wynn, Mahan said. Her allegations based on him regularly recommending her for massage services to guests as a pretext for sex acts supports such a claim, the judge said.

The ruling didn't address Schrader's Title VII of the 1964 Civil Rights Act claims, which remain pending.

Richard Harris Law Firm represents Schrader. Peterson Baker PLLC represents Wynn. Jackson Lewis PC represents the companies.

The case is Schrader v. Wynn, 2022 BL 112197, D. Nev., No. 2:19-cv-02159, 3/31/22.

To contact the reporter on this story: Patrick Dorrian in Washington at pdorrian@bloomberglaw.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Steven Patrick at spatrick@bloomberglaw.com

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