Las Vegas Sands pays US$9m to settle SEC’s Macau corruption investigation, without admitting guilt

Las Vegas Sands is paying a US$9 million fine to settle a regulatory investigation that painted an unflattering picture of the casino owner’s expansion into Macau.

The resolution announced Thursday closes a Securities and Exchange Commission probe that began more than five years ago.

The corruption case revolved around Las Vegas Sands’ efforts to become a major player in Macau, the enclave in China that has turned into a gold mine for US casinos.

The SEC penalised Las Vegas Sands for its dealings with a consultant paid US$62 million to serve as a “beard” for some of its business in Macau and Beijing. The inquiry concluded some payments weren’t properly authorised or documented.

Las Vegas Sands Corp neither admitted nor denied any of the SEC’s findings. The company, controlled by billionaire Sheldon Adelson, had conceded in its 2012 annual report that it had probably violated the book-keeping and controls provisions of the Foreign Corrupt Practices Act that prohibits overseas bribery.

Although the SEC didn’t accuse Las Vegas Sands of resorting to bribery, its conclusions depicted a company willing to go to extreme lengths to establish itself in China. The company now generates most of its revenue in Macau, a former Portuguese colony where Las Vegas Sands operates four casinos and a variety of hotels.

The SEC alleges Las Vegas Sands violated anti-corruption laws shortly after it connected in 2006 with an unidentified consultant claiming to be a former Chinese government official.