Las Vegas Sands says Chinese authorities investigating Macau subsidiary

A publicly traded subsidiary of Las Vegas Sands Corp. told the Hong Kong Stock Exchange Thursday it was being investigated by Chinese authorities for alleged breaches of regulations.

Sands China Ltd., which covers the company's holdings in Macau, said it was asked by the Hong Kong Securities and Futures Commission to produce "certain documents," the company said in a statement to the stock exchange.

Analysts told various news services in Hong Kong the investigation concerns allegations that were raised in a wrongful termination lawsuit filed in Clark County District Court by Steven Jacobs, who spent more than a year as the CEO of Sands China.

In court filings, Jacobs accused Sands China and Las Vegas Sands of using improper leverage against Macau government officials.

The allegations have led to investigations by the Gaming Control Board, the Securities and Exchange Commission, the Department of Justice and the FBI into possible violations of the U.S. Foreign Corrupt Practices Act.

"If it is just Steve Jacobs again, I don't think it is a big issue," Gabriel Chan, an analyst at Credit Suisse in Hong Kong told Reuters News Service. "The SFC has to respond to the FBI and the SEC in the States, so if it is not really new news, I am not that worried about it."

Las Vegas Sands Chairman Sheldon Adelson has said the ex-employee's lawsuit was "pure threatening, blackmailing and extortion. That is what it is all about."

According to Bloomberg News Service, Sands China shares fell the most in more than three months in Hong Kong trading on March 2 after Las Vegas Sands revealed the investigations.

At an investment forum, Adelson said the Jacobs' lawsuit "was not a serious case." He said the company was cooperating with authorities.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.