As per the reports of Wall Street Journal on Saturday, Las Vegas Sands Corp. that is controlled by Sheldon Adelson, the billionaire Republican donor is the pinpoint of a federal investigation that relates to possible violations of US money laundering laws.
How Should Investors React To This report, Get Report Here
The Los Angeles-based US attorney’s office is probing into the casino firm’s handling of receipts involving millions of dollars from a Mexican businessman, who has also been indicated for drug trafficking. There is some involvement of a California businessman, who has been convicted of illegal kickbacks. The Wall Street Journal has reported these after citing all the people, who are involved in this case.
All the transactions in question have taken place since mid-2000s.
WSJ mentioned that there are no indications that testify actions by Adelson, CEO of the company and also the largest shareholder are being examined.
Reuters could not reach the Los Angeles US attorney for commenting on this matter. Ron Reese, a spokesman has said that the company has trust in how it handles this matter and it believes that it has no committed any wrong.
According to Reese’s statement, the company has been cooperating with federal investigators in all the possible ways.
The Journal feels that the timing of the investigation could expose the Justice Department to criticism that it is politically influenced. Adelson happens to be a major donor to Republican presidential nominee Mitt Romney against Barrack Obama. He plans on investing $100 million on Republican candidates.
Get Free technical Analysis on LVS Here
Adelson owns casinos in Macau, Singapore and Las Vegas. He started his campaign season as a major donor to Newt Gingrich before the latter left the Republican presidential competition.
US authorities are probing into the Sands to find out if there were violations of the Foreign Corrupt Practices Act that works against bribes to foreign officials by US companies.
Shares of LVS ended higher by 5% to $38.75 on Friday.