Sheldon Adelson, for anyone who might not be aware, is a casino mogul whose name is in the industry no matter where you look. This time, Adelson is in the spotlight because one of his casinos has recently settled with US law enforcement and is going to pay almost $7 million in damages. The payout is coming as a result of a massive investigation into corrupt practices.
The corruption had to do with monies paid out to foreign entities in an effort to enrich himself and those close to him.
According to the agreement made between the US government and Las Vegas Sands Corp., the payout was made to bring to end a probe regarding a more than $50 million payout to acquire a Chinese basketball team and other properties in China and Macau.
The official agreement laid out a fine in the amount of $6.96 million, but in addition to that there is also a $9 million payment made by Sands Corp. to the SEC as a result of payments made that were either not authorized by the US government of were not properly documented. As is typical of cases like this, the Las Vegas Sands Corp. was, technically, never charged with committing a crime and, therefore, need not admit any sort of guilt.
Ron Reese is a spokesperson for Sands Corp., and in a statement he said, “The company is pleased that its cooperation and long-term commitment to compliance were recognized in reaching this resolution…all inquiries related to these issues have now been completely resolved.”
The government was not nearly as pleased as Sands, however. As part of a larger statement, government representatives said, “Certain Sands executives knowingly and willfully failed to … adequately ensure the legitimacy of payments … continued to make payments to the consultant despite warnings from its finance staff and an outside auditor that the business consultant had failed to account for portions of these funds.”
As unlikely as it might seem, the person who was the source of the warning from Sands’ own finance department was ultimately terminated by the company for an undisclosed reason.
The probes that were just resolved began in 2011 and were aimed at Sands attempting to enter the Macau casino industry thought what were labeled as illicit means. Macau is a special region of China and former colony of Portugal that has become a hotbed of gambling, especially for those in Asia.
Adelson and Sands control the Venetian and Palazzo resorts on the Las Vegas Strip and have, like many other casinos, been looking to make moves in Macau. More recently, Adelson and his family have been linked with being the biggest supporters and financial contributors to the construction of a football stadium in hopes that it will attract the Oakland Raiders of the NFL. In addition to this, Adelson and his family are also major contributors to the Republican party. Adelson is a major casino mogul, but also a major opponent of online casinos, so if you haven’t heard his name before, you are sure to hear it at some point in the future,