Las Vegas Sands has agreed to pay .9 million to U.S. authorities to end a five-year investigation into the casino giant’s business dealings in China.
The agreement resolves the Justice Department‘s issues with payments totaling some $60 million the company made to an unnamed consultant in China who was retained in 2006 to advance LVS’ burgeoning interests in Macau by currying favor with the Chinese government. The payments were earmarked for the establishment of a professional basketball team and to secure a Beijing real estate deal, among other things. The payments continued through 2009 and included another $5.8 million payment to the consultant without any “discernable legitimate business purpose,“ according to the government.
“Certain Sands executives knowingly and willfully failed to adequately ensure the legitimacy of payments” to the consultant, the Justice Department said, and “continued to make payments to the consultant despite warnings from its finance staff and an outside auditor that the business consultant had failed to account for portions of these funds.”
The penalty was in addition to a $9 million civil payment LVS made last April to settle a related U.S. Securities and Exchange Commission investigation that found some payments to the consultant weren’t properly authorized or documented, which could constitute a possible violation of the U.S. Foreign Corrupt Practices Act.
In exchange for the penalties LVS has avoided criminal charges and has not admitted guilt in either case.
“The company is pleased that its cooperation and long-term commitment to compliance were recognized in reaching this resolution,” said Sands spokesman Ron Reese, who added that “all inquiries related to these issues have now been completely resolved.“
