Las Vegas Sands Denounces Media Reports About Anti-Corruption Law Review

Las Vegas Sands (NYSE: LVS  ) has lashed out at various media regarding what it characterized as "misleading and sensationalistic" reporting of the company's recently filed 10-K disclosure to the SEC. In that document, the company wrote that an internal review "had reached certain preliminary findings, including that there were likely violations of the books and record and internal controls provisions" of the Foreign Corrupt Practices Act.

The FCPA is a federal law that prohibits American companies from bribing public officials in foreign countries.

The company has accused media outlets of reporting the news in an "inflammatory and defamatory" manner. It singled out The New York Times, which ran an article on the subject headlined "Casino Says It Likely Cheated."

Las Vegas Sands emphasized that "it will vigorously defend itself against that type of uninformed and misleading reporting."

In a Sunday press release, the company said it "did not report any violations of the anti-bribery provisions of the FCPA" and "insists no violations of the anti-bribery provisions of the FCPA have occurred." It noted that it said in the 10-K that there were likely violations of accounting provisions and "a potential violation of the accounting provisions could range anywhere from a single transaction recorded incorrectly to other errors in the accounting records."

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  • Report this Comment On March 05, 2013, at 11:48 AM, spokanimal wrote:

    This FCPA thing is being blown way out of proportion.

    LVS's 10-k disclosure is stuff we knew about clear last summer.

    Look at it this way:

    Banks are required to train their employees to report cash transactions in excess of $10,000. If they don't train them to do that, it's an FCPA "books and records" violation.

    Furthermore, if a bank employee fails to correctly report a $10,000 cash transaction, it's also a violation.

    Just because a $10,000 cash transaction happened and wasn't reported DOESN'T MEAN IT WAS RELATED TO MONEY LAUNDERING OR A PAYOFF OF A FOREIGN OFFICIAL.

    Las Vegas Sand's books and records were insufficient, and they corrected that insufficiency in spades last year. There were also likely transactions that should have been reported that were not because of that insufficiency of their books and records.

    But, given all that is known from the books and record keeping systems that Sands had in place over the past half decade, there is no evidence of any laundering or payoffs to foreign officials...

    ... except for the un-substantiated, sour-grapes accusations being leveled by an ex-employee who was fired for good cause after practically ruining Sand's junket VIP market share back in 2010.

    Like CNBC's Jim Cramer said yesterday morning... this whole FCPA thing is just a "minor distraction"... and I wholeheartedly agree.

    Spokanimal

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