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Thu, September 17, 2020 – 10:26 am
Davinder Singh Chambers, who specializes in dispute resolution and international arbitration, was appointed after Singapore police began a third-party transfer investigation at Marina Bay Sands, said the people, who asked not to be identified to discuss private matters.
The review by one of Singapore’s best-known law firms adds to scrutiny of the casino by the US Department of Justice and Singaporean authorities after a client sued the firm last year alleging that S $ 9.1 million of your money was transferred to other players without your knowledge. . The lawsuit was settled out of court in June, and the casino agreed to refund the full amount. There was a “non-admission” of liability on both sides.
Marina Bay Sands said in a statement that when issues related to handling customer transfers arose, the company thoroughly reviewed the matter and concluded that no funds were transferred from sponsors in a manner that was contrary to the customer’s intent.
“MBS continues to work closely with its regulators to monitor MBS’s compliance with all legal obligations,” the casino said.
Las Vegas Sands fell 4.2 percent in New York, after falling as much as 8.9 percent, the most since March. The shares fell 25 percent this year as of Tuesday’s close.
A representative for Davinder Singh Chambers declined to comment. The Singapore police force said it is inappropriate to comment as investigations are ongoing.
The client’s lawsuit prompted scrutiny from a host of authorities on how Marina Bay Sands handled and monitored third-party transfers. The transactions, when authorized, are legal and are used by groups of wealthy players in Asia to pool winnings and losses at different casinos.
Transfers are sometimes made through so-called junket operators, which provide transportation, hotels and credit to high rollers. In Macau, junkets allow Chinese players to circumvent strict capital controls by promising assets on the mainland in exchange for casino credit.
While junkets are generally more strictly controlled in Singapore, a previous investigation by Marina Bay Sands and the Hogan Lovells law firm found cases of employees failing to meet proper standards when filling in payment details on signed authorization forms. previously or photocopied, depending on the people. It also uncovered cases where original documents were destroyed, the people said.
During the Hogan Lovells review that spanned 2013-2017, more than 3,000 letters of authorization were used to support transfers of funds from sponsors to third parties worth approximately S $ 1.4 billion, according to the people.
The Las Vegas Sands unit in Singapore, one of the most profitable in billionaire Sheldon Adelson’s gaming empire, called on Hogan Lovells’ team that specializes in corporate investigations and contentious regulatory matters after the Casino Regulatory Authority launched its investigation. following the 2019 lawsuit from boss Wang Xi.
Meanwhile, the U.S. Attorney’s Office interviewed a former Marina Bay Sands compliance chief in July as part of the justice department’s investigation into whether anti-money laundering procedures had been violated in handling high rollers, people said. familiar with the matter.
Of the transactions analyzed in the Hogan Lovells review, letters authorizing transfers worth S $ 365 million from various clients had signatures that appeared to be similar, facilitating numerous transfers, one of the people said. A group of employees participated in transfers of S $ 763 million. That focus on just a handful of staff failed to attract the required attention, according to the person.
In response to a Bloomberg News inquiry, the Casino Regulatory Authority (CRA) said it has completed investigations into allegations that Marina Bay Sands (MBS) made unauthorized transfers from a user’s account. While the regulator concluded that the casino did not violate requirements in that case, including those related to money laundering, “there were weaknesses in MBS’s casino control measures related to fund transfers,” it said in a statement.
CLOSE SUPERVISION
The regulator “takes a serious view of these matters and ordered MBS to strengthen its control measures, which MBS has taken since then,” according to the statement. “The CRA will continue to exercise close supervision to ensure that the MBS measures are effective.”
Marina Bay Sands told the regulator that it had strengthened its scrutiny process in April 2018 to ensure players authorize every fund transfer and that requests are approved by the casino’s compliance department, the person said. Employees are also trained to detect and report suspicious behavior and any activity related to unlicensed travel.
Davinder Singh is well known for representing Singapore Prime Minister Lee Hsien Loong in various defamation cases, as well as many other high-profile banking, debt restructuring and fraud lawsuits. Hogan Lovells is known for his anti-corruption research and work.
BLOOMBERG
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