Las Vegas Sands Under Investigation for Foreign Corrupt Practices
Las Vegas Sands (NYSE:LVS) is being investigated by the Securities and Exchange Commission and Justice Department regarding its compliance with the Foreign Corrupt Practices Act, which prohibits U.S. companies from making improper payments to foreign officials.
The news sent Sands shares down more than 4%.
In its annual report filed on Tuesday, Sands said it received a subpoena from the SEC requesting it produce documents relating to its compliance with the FCPA. It has also been advised that the Department of Justice is conducting a similar investigation.
The casino operator warned that a violation, or “applicable anti-money laundering regulation,” could have a negative impact on its business.
“Any determination that we have violated the FCPA could have a material adverse effect on our financial condition,” the company said in the filings.
The owner of The Venetian and The Palazzo resort casinos in Las Vegas said it believes the subpoenas derived from allegations in a lawsuit filed by Steven Jacobs, its former head of Macau operations.
Sands said it intends to corporate with the investigations.