Las Vegas Sands
The Las Vegas Sands Corp has revealed that it’s currently under investigation by the US Department of Justice and the Securities and Exchange Commission, following allegations made by the company’s former Macau CEO, Steve Jacobs. Jacobs has alleged that the Las Vegas Sands Corp may have attempted to use “improper leverage” against senior officials in Macau. It’s this accusation which has attracted the attention of the Department of Justice, as the Foreign Corrupt Practices Act means that companies cannot make inappropriate payments to officials in other countries.
According to Reuters, Las Vegas Sands has expressed that it will defend itself against the allegations made by Jacobs and assist with the investigations. However, Carlos Santarelli, an analyst at Wells Fargo, has warned that “the headline risk will serve as an overhang on the shares in the near term”, adding that this will continue until more is known about the investigations.
This news comes after Macau announced a revenue increase of 48% in February. Las Vegas Sands Corp has also recently reported that net profit for its properties operated thorough Sands China Ltd increased to $666.5 million in 2010.
