Thursday, March 31, 2011

LVS' (LVS) Sands China Investigated by Hong Kong Securities

Las Vegas Sands’s (NYSE:LVS) Sands China Ltd. is under investigation by Hong Kong Securities and Futures Commission for alleged breaking of regulations, after parent company Las Vegas Sands is being investigated by U.S. regulators.

This is an extension of the investigation by the U.S. Securities and Exchange Commission and Justice Department, announced earlier in March, where they asked for documents related to Sands China's compliance with the Foreign Corrupt Practices Act.

Sands China said in a statement that they have been “requested to produce certain documents” in relationship to that.

If there is a breach in the Foreign Corrupt Practices Act, it would mean a company based in the U.S. would have offered some type of payment to foreign officials for the purpose of keeping or winning business from them.

Initially the investigations came about from allegations from former Sands China CEO Steven Jacobs, who asserted the company had broken his employment contract with them.

Founder and Chief Executive Officer Sheldon Adelson said this, “When the smoke clears, I am absolutely, not 100 percent, but 1,000 percent positive that there won’t be any fire below it.”

Shares of Las Vegas Sands remain under pressure, trading at $41.89, falling $1.58, or 3.63 percent, as of 2:40 PM EDT.

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