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Wynn, owner of Wynn Las Vegas and the Encore, first sued Francis in July, claiming the soft-core porn king owed $2 million in gambling debts from February 2007.
Francis insisted he had already paid his debt through agreements and discounts.
Francis told The Associated Press, "The Wynn Hotel has chosen not to honor its agreement to apply certain discounts to balances they have already been paid for."
Francis also indicated that he planned on "exposing how exactly Mr. Wynn deceives his high-end customers."
Wynn responded with this defamation lawsuit in Clark County Court, claiming he has suffered injury to his reputation and "shame, mortification, hurt feelings and emotional distress."
In June, Francis pleaded not guilty to charges of tax evasion for allegedly deducting more than $20 million of bogus business expenses on his 2002 and 2003 returns. Trial is set for Sept. 16 in Los Angeles.
Francis claims that he never saw his tax returns before they were filed, and that his accountant contacted the IRS after quitting and reported the accounting mistakes to collect money through the Tax Whistleblower Program.
Wynn is represented by Frank Schreck with Brownstein Hyatt
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