Nevada regulators approve $2 million fine against Las Vegas Sands

State regulators today approved a $2 million fine against Las Vegas Sands Corp. that stemmed from past allegations of accounting problems with the casino operator’s business in China and anti-money-laundering issues in Las Vegas.

The Nevada Gaming Commission unanimously voted in favor of the fine announced by the Gaming Control Board last week. The board revealed the fine on Wednesday, when it also filed a complaint against Sands alleging violations of state gaming law.

The regulatory actions were related to two earlier developments.

One was an April settlement Sands reached with the Securities and Exchange Commission concerning allegations that the company did not properly account for millions of dollars it paid to an overseas consultant.

The other was a 2013 agreement Sands reached in relation to activity involving a high roller at the Venetian in Las Vegas.

Sands did not admit or deny any allegations in the Nevada regulatory complaint. Attorney Mark Clayton stressed that point to commissioners today and also noted that Sands had cooperated extensively and taken remedial action.

No Sands executives addressed the commission at its meeting in Las Vegas.

Commission Chairman Tony Alamo said that, reading the Sands complaint and settlement, it looked “like amateur hour.” But, he said he understood the company did not admit or deny the allegations and felt better about the fact that the government agreed not to prosecute Sands in the 2013 case. Still, Alamo said, “it reads awful.”

He said the $2 million fine was the fifth-largest ever agreed to by the commission.

Sands’ April SEC settlement concluded an investigation into whether the company violated the Foreign Corrupt Practices Act, which bans giving bribes to officials overseas.

The SEC didn’t accuse Sands of bribing anyone but said in a statement that the company “frequently lacked supporting documentation or proper approvals” for more than $62 million it paid to an Asian consultant.

The consultant helped obscure the role Sands played in transactions such as the purchase of a basketball team and a building in mainland China, the SEC said. Gambling in China is only allowed in Macau, a special administrative region where Sands operates multiple resorts.

Per the SEC agreement, Sands agreed to retain an independent consultant for two years whose duties will include reviewing the company’s internal controls related to the Foreign Corrupt Practices Act.

In the 2013 matter, Sands reached an agreement with the U.S. Attorney’s Office under which it avoided charges but agreed to “return” more than $47 million to the U.S. Treasury. That deal concerned allegations that Sands did not properly report suspicious activity of a high roller at the Venetian.

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