US-based operator Las Vegas Sands is being investigated by the US Securities and Exchange Commission over its compliance with the Foreign Corrupt Practices Act, which prohibits bribing foreign officials.
In a regulatory filing on March 1, the company, which operates casinos in the US, Macau and Singapore, revealed that it received a subpoena from the SEC on February 9. The Department of Justice, it said, is also conducting a similar investigation alongside the SEC. Macau’s Secretary for Economy and Finance, Tam Pak Yuen, is also understood to have requested a report. LVS has denied the allegations and said it will be cooperating with the investigations.
The investigation is believed to be connected to claims made by Steven Jacobs, the former chief executive of Sands China, in documents filed with Nevada’s court. In October, Jacobs sued LVS over wrongful dismissal. In his court filing, he alleged that he was unfairly dismissed by the company because he refused to "use improper leverage against senior government officials of Macau".
He also claimed LVS chairman Sheldon Adelson asked him to withhold information from the Sands China board.
The operator announced Jacobs’ removal from his position as CEO in an SEC filing in July and in a letter sent to him in Augus it said his employment contract had been terminated because he had repeatedly exceeded his authority and failed to keep the board informed of important decisions. These included negotiating unauthorised arrangements with possible partners and signing a deal with Playboy to open a club in Macau.
Announcing its annual results for 2010, Sands China revealed net revenues of $4.1bn, a 25 per cent increase on the previous year. Profit for the period stood at $666.5m - a 210 per cent jump since the end of 2009.
