TWO former senior employees of UOB Kay Hian Private Limited (UOBKH) were charged on Wednesday for allegedly lying to the Monetary Authority of Singapore (MAS) in relation to reports on a then Catalist aspirant. Lan Kang Ming, 38, and Wee Toon Lee, 34, each face three charges of providing MAS with false information in October 2018 in relation to due diligence reports on an unidentified company applying to list on the Catalist board of the Singapore Exchange. MAS said in a media statement on Wednesday that it was performing an onsite inspection of UOBKH between June and August 2018, to assess the latter's controls, policies and procedures in relation to its role as an issue manager for Initial Public Offering (IPOs). During the examination, Lan and Wee were said to have provided different versions of a due diligence report relating to background checks on a company applying to be listed on the Catalist board of the Singapore Exchange. UOBKH had acted as the issu...
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By GRACE LEONG
03 March 2011
US regulators are investigating Las Vegas Sands Corp (LVS), the parent of Marina Bay Sands (MBS), for its Macau operations’ compliance with the US Foreign Corrupt Practices Act, the company disclosed in an annual report.
In a filing with the US Securities and Exchange Commission (SEC) on Tuesday, LVS said it received a subpoena on Feb 9 from the SEC to produce documents relating to its compliance with anti-bribery laws at its operations in Macau, now the world’s largest gaming market.
‘The company has also been advised by the Department of Justice that it is conducting a similar investigation,’ the Las Vegas-based company said in the filing. The company said it intends to cooperate with the investigations. The Nevada Gaming Control Board in Las Vegas is also probing the matter.
The Foreign Corrupt Practices Act (FCPA), which comes under the jurisdiction of the US Department of Justice, prohibits US companies and their intermediaries from making bribes to foreign officials to get business in their countries.
LVS said it believes the SEC subpoena ‘emanated’ from a lawsuit filed in Las Vegas against the company by Steven Jacobs, former president and CEO of the group’s Hong Kong-listed unit, Sands China Ltd, which runs casinos and resorts in Macau.
Mr. Jacobs, who was fired for cause last July, slapped a wrongful termination lawsuit against the company, alleging he was fired because he refused to carry out LVS chairman and CEO Sheldon Adelson’s ‘illegal demands’.
In his suit, Mr. Jacobs alleged that he was ordered to use the services of Macau attorney Leonel Alves despite concerns that his hiring ‘posed serious risks’ under the criminal provisions of the FCPA.
He also claims he was ordered to arrange secret investigations of high-ranking Macau government officials so that ‘any negative information obtained could be used to exert ‘leverage’ to coax them into aligning their interests with the company’. Mr. Jacobs also alleged Mr. Adelson demanded that he withhold information from the Sands China board of directors involving ‘junkets and triads, government investigations, Leonel Alves and FCPA concerns’, and cost overruns on the Cotai strip.
LVS, in its response, said Mr. Jacobs was fired on the basis that he had overstepped his authority; failed to inform the Sands China board of important decisions; failed to get authorisation prior to signing an agreement with Playboy China; and had other unauthorised negotiations with potential partners such as the Four Seasons hotel group. LVS has also asked for Mr. Jacobs’ suit to be dismissed, arguing that any disputes must be resolved in courts in Macau, and not in Las Vegas. Venetian Macau also filed a criminal complaint last month with the Macau public prosecutor against Mr. Jacobs, accusing him of defamation and extortion.
Meanwhile, Las Vegas Sands shares tanked 6.3 per cent, or US$2.94, to US$43.70 in Tuesday’s trading session on the New York Stock Exchange.
Phillip Securities Research in Singapore downgraded the stock to a trading sell from a trading buy because it is concerned the development of this case ‘under the media’s watch may be detrimental to share price movement and create unnecessary price volatility which unnerves our investors’.
‘We are further concerned about the ultimate ruling and the radiating repercussions should LVS be found guilty of certain malpractices. Should other jurisdictions such as Hong Kong, Macau and Singapore act on a tip-off from SEC of worrisome activities, the backlash on LVS could be huge,’ Phillip Securities analyst Magdalene Choong said in a report yesterday.
‘We do not think MBS will have its licence suspended but we do not think we can say the same for Macau as the severity really depends on what (Sands China) had sought to undermine,’ she said.
Praveen Choudhary, an analyst with Morgan Stanley Research Asia/Pacific, has upgraded Sands China to an overweight rating from equal-weight. But, he cautioned, if the company were to pay significant fines, it could impact Morgan Stanley’s valuation.
‘We believe the overhang on the stock will remain until it is resolved, but we do not expect it to impact operations,’ he said.
Officials from the Casino Regulatory Authority of Singapore could not provide a response by press time yesterday.
Wendell Wong, an attorney with Singapore law firm Drew & Napier and who has been involved in FCPA-related investigations in Asia, said FCPA probes are not unusual. ‘They can be triggered by a whole host of factors. It does not necessarily follow that a company’s business in other jurisdictions will be affected or compromised due to any ongoing probe(s). What is most important is the willingness to protect stakeholders’ interests,’ he said.