Sands Las Vegas Under Investigation for Allegedly Taking Bribes
Shares in Sands Las Vegas were down 7 percent on news that the company is under investigation for allegedly taking bribes in Macau.
On Tuesday, the company received a subpoena from the SEC requesting documents related to the Foreign Corrupt Practices Act.
Former Sands China CEO Steve Jacobs is reported to have made the allegations after his termination without explanation. He claims to have refused to fulfill demands carried out by Sands Las Vegas CEO Sheldon Adelson.
"While handicapping the end results of investigations of this sort are nearly impossible, we believe the headline risk will serve as an overhang on shares in the near term until more on the matter is known," Wells Fargo analyst, Carlo Santarelli, wrote in a note. "That said, we believe the Jacobs lawsuit has quietly been a drag on shares in recent months given the nature of the claims and the potential for something like this to occur."
Jacobs had worked for Sands China just over a year before getting axed. He received an annual compensation of USD 1,303,683 (MOP 10.24 million), including a bonus of USD 433,333.
Las Vegas Sands said it is fully cooperating with the SEC.
- Aaron Goldstein, Gambling911.com
