Casino giant Las Vegas Sands to settle with SEC for $9 million
Apr 09, 2016 11:48 AM EDT
The Las Vegas Sands is set to pay a $9 million settlement to Securities and Exchange Commission for their activities during a 5-year time. The bond is to end the investigation regarding the casino's Chinese operations during 2006 through 2011.
According to Las Vegas Review Journal, Las Vegas Sands will pay the $9 million fine to SEC and a further requirement of independent consultant on its business activities in China and Macau, all of which are under the settlement they've reached on Thursday. The company owns The Venetian and Palazzo on the Las Vegas Strip while having properties in Macau, Singapore and Pennsylvania as well. The settlement includes that the years of investigation by SEC with aid from United States Foreign Corrupt Practices Act have found no evidence of corrupt intent or bribery done by the company. It should be noted the that United States Foreign Corrupt Practices Act makes it illegal for companies to attempt in influencing foreign government officials with personal bribes.
The allegations done by SEC focused on the Las Vegas Sands' contribution to a Chinese basketball team, plans for a business center in Beijing and ferry deal in Macau as reported by Wall Street Journal. The Commission said that Sheldon Adelson, owner of the company, transferred more than $62 million to a consultant in China without legitimate documents or proper authorization. They added that ""despite knowledge by senior LVSC management that they could not account for significant funds previously transferred to the consultant."
Yahoo wrote that the company neither denied nor admitted the allegations thrown by the SEC's findings. The company had conceded in its 2012 annual report that they may have violated the book-keeping and controls provision of the Act that prohibits bribery to country officials. Though there are no accusations pertaining to bribery, SEC's conclusions establish that the company will go to great lengths to present itself in China. The company is now generating most of its revenues in Macau where four casinos and variety of hotels are built.
Now, Las Vegas Sands will submit to the reviews by an outside consultant during the next 2 years to ensure its record-keeping and internal controls are adhering to the United States Foreign Corrupt Practices Act.