ANTICORRUPTION DEVELOPMENTS

Las Vegas Sands Corporation Agrees to Pay Approximately $7 Million to Resolve DOJ FCPA Enforcement Action

On January 19, 2017, Las Vegas Sands Corporation ("Sands"), a Nevada-­based gaming and resort company, executed a nonprosecution agreement (NPA) with the Department of Justice (DOJ) resolving the government's investigation of alleged violations of the Foreign Corrupt Practices Act (FCPA).

Specifically, the DOJ's enforcement action alleges that, from 2006 through 2009, Sands engaged a consultant for the purpose of promoting the company's brand in the People's Republic of China and Macao, but that the consultant failed to provide sufficient documentation of the purpose for the payments demanded (as much as

$700,000 in expenses was unaccounted for); in certain instances, payment was provided without any discernible legitimate business purpose; and Sands terminated a finance department employee who raised concerns about the payments. The DOJ's enforcement action does not allege that Sands paid any bribes in violation of the FCPA, but that Sands failed to maintain an adequate system of internal accounting controls under the FCPA.

Sands agreed to pay an approximately $7 million criminal penalty to resolve the enforcement action. Additionally, in May 2016, Sands paid a $2 million fine to the Nevada Gaming Control Board (NGCB) and, in April 2016, agreed to pay a $9 million civil penalty to the Securities and Exchange Commission (SEC) to resolve related investigations (a total of approximately $18 million).

The DOJ's Press Release and NPA are here, the NGCB's Stipulation Agreement is available here, and the SEC's Press Release and Cease­and­Desist Order are available here. For more information, see The New York Times' coverage here; The Wall Street Journal's coverage here, here, here, here and here; and the FCPA Blog's coverage here.

Download - Red Notice Newsletter - January 2017

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.