Las Vegas Sands to pay $6.96M to resolve federal inquiry

Las Vegas Sands Corp. has agreed to pay a $6.96 million fine to resolve the federal government’s investigation of company compliance with the Foreign Corrupt Practices Act in some of its dealings in China and Macau.

The non-prosecution settlement stems from the same case that led the Securities and Exchange Commission to fine Sands $9 million in April. The SEC and the Justice Department often work together on cases, but in the Sands case, the agencies worked separately.

Acting Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division and Special Agent-in-Charge Aaron Rouse of the FBI’s Las Vegas Field Office announced the settlement Thursday. Sands officials said they were relieved the investigation, which began in 2011, has finally ended.

“The company is pleased that its cooperation and long-term commitment to compliance were recognized in reaching this resolution,” company spokesman Ron Reese said in an emailed statement. “We are equally pleased that all inquiries related to these issues have now been completely resolved.”

The Justice Department resolved the case based on a number of factors, including the nature and seriousness of the internal controls violations and the fact that Sands fully cooperated in the investigation and addressed its findings. Sands’ cooperation included conducting a thorough internal investigation and voluntarily collecting, analyzing and organizing evidence and information for the government in response to requests, including translating key documents.

The Foreign Corrupt Practices Act makes it illegal for companies and their executives to attempt to influence foreign government officials with personal payments.

Sands admitted to paying an estimated $5.8 million to a business consultant in Asia without any legitimate business purpose.

Sands no longer employs or is affiliated with any of the individuals implicated in the alleged illegal conduct. It revamped and expanded its compliance and audit functions and made significant personnel changes, including the retention of new leaders of its legal, compliance, internal audit and financial gatekeeper functions. Reese said the company made no admission of guilt as part of the settlement.

All told, the investigations cost Sands about $18 million.

The SEC settlement required that Sands hire an independent consultant on its business activities in China and Macau.

The investigation found no evidence of corrupt intent or bribery by the company, which owns The Venetian and Palazzo on the Las Vegas Strip as well as properties in Macau, Singapore and Pennsylvania.

Sands also was punished by the Nevada Gaming Commission a month after the SEC settlement was announced. The company was ordered to pay a $2 million fine on a two-count complaint — one involving the SEC matter — for the company’s failure to uphold the reputation of the state’s gaming industry.

The second count of the Nevada complaint involved an August 2013 non-prosecution agreement Sands reached with the U.S. attorney’s office for the Central District of California for the company’s failure to file a suspicious casino activity report.

The Review-Journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.