State complaint seeks $2 million fine from Las Vegas Sands
The Nevada Gaming Control Board on Wednesday filed a two-count, 14-page complaint against Las Vegas Sands Corp. that could result in a $2 million fine for the company.
The complaint, which addresses Sands’ alleged failure to uphold the reputation of the state’s gaming industry, will be considered May 19 by the Nevada Gaming Commission.
One count stemmed from a settlement Sands reached with the Securities and Exchange Commission in April that closed a six-year investigation involving the company’s compliance with the United States Foreign Corrupt Practices Act. That investigation found no evidence of corrupt intent or bribery by the company.
The second count involved an August 2013 nonprosecution agreement Sands reached with the U.S. Attorney’s Office for the Central District of California for the company’s failure to file suspicious casino activity report.
“The company cooperated fully with the (Nevada Gaming Control Board) and looks forward to resolution of this matter,” Sands spokesman Ron Reese said in an email late Wednesday.
On the first count, Senior Deputy Attorney General John Michela submitted a 15-page SEC complaint released April 7 that focused on poor record-keeping by former Sands Chief Operating Officer William Weidner in 2006. Sands was fined $9 million and ordered to hire an independent consultant to monitor business activities in China and Macau for two years.
In the second count, Michela noted that the company did not file a Casino Suspicious Activity Report with the Financial Crimes Enforcement Network when it should have had reason to believe that high-stakes gambler Zhenli Ye Gon was involved in criminal activity. In its agreement with the California U.S. Attorney’s Office, Sands voluntarily agreed to return $47.4 million in wagers placed by Ye Gon to the U.S. Treasury.
The state statute Sands is accused of violating involves “failure to exercise discretion and sound judgment to prevent incidents which might reflect on the repute of the State of Nevada and act as a detriment to the development of the industry.”
The Review-Journal is owned by the Adelson family, majority owners of Las Vegas Sands.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Find him on Twitter: @RickVelotta
