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Las Vegas Sands Corp. Message Board

  • squeezetracker squeezetracker Mar 3, 2013 10:23 AM Flag

    FCPA Penalties: Yawn... Stepped up compliance efforts and immaterial fine(s) seem likely

    Without going back to documents, I think they already settled with Chinese authorities on the documents noise for small fine and unknown what if any other sanctions, but things seem all clear with Chinese as LVS has since gotten the new Cotai resort approved, the new walkway built and 200 additional tables approved.

    As said on mrtax's thread, the biggest negative is likely the adverse publicity and the U.S. press is doing its best to make all this sound like some new event this weekend. Thankfully for the longs, it is clearly nothing new except moving to resolution phase now.

    Excerpt from SRG law firm re FCPA penalties...

    "Penalties for violations of the FCPA are strict, and the federal government has shown its willingness to impose them. Through the criminal process, corporations and other business entities are subject to fines of up to $2 million and their directors, officers, stockholders, employees and agents are subject to fines of up to $100,000 and imprisonment for up to five years. These fines are imposed per occurrence, and individuals fined for violations of the Act may not be indemnified by their employer.

    The attorney general or the SEC may also bring a civil action for violation of the FCPA resulting in fines of up to $10,000 per violation against any firm, its directors, officers, employees, agents and stockholders. In addition, the SEC may seek to impose fines not to exceed (1) the gross amount of the pecuniary gain to the defendant as a result of the violation, or (2) an amount of up to $100,000 for individuals and $500,000 for business entities.

    Finally, companies found to have violated the FCPA are bound to receive negative publicity. News reports about FCPA-related investigations are embarrassing and may negatively impact a company's ability to do business in the United States and abroad. Good will is one of the most valuable assets a company can have, and FCPA violations can seriously damage a company's reputation and brand image."

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    • Company's BOD has concluded investigation, thinks they have found non-compliance with FCPA (China matter, not the drug dealer bs) and shared findings/notified SEC and DOJ who are reviewing documents as routine follow up.. If this was a serious criminal event, the BOD and execs would have been walked out in handcuffs two years ago...

      Here's what the company filed about the impetus of the investigation.

      "On February 9, 2011, LVSC received a subpoena from the Securities and Exchange Commission requesting that the Company produce documents relating to its compliance with the Foreign Corrupt Practices Act (the “FCPA”). The Company has also been advised by the Department of Justice that it is conducting a similar investigation. It is the Company’s belief that the subpoena may have emanated from allegations contained in the lawsuit filed by Steven C. Jacobs described above. The Company is cooperating with the investigations. Based on proceedings to date, management is currently unable to determine the probability of the outcome of this matter or the range of reasonably possible loss, if any.

      [Old news... YAWN...]

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