Chinese online sports lottery provider 500.com Ltd says it has found no violation of the US Foreign Corrupt Practices Act of 1977 following an internal investigation into allegations that former consultants to the company offered bribes to a Japanese politician to gain favor towards an IR bid.
The internal investigation related to the case of Japanese House of Representatives member Tsukasa Akimoto, who is accused of accepting bribes during his time as Cabinet Office Deputy Minister in charge of IRs, plus four 500.com consultants accused of offering them to him.
Two of those consultants, Masahiko Konno and Katsunori Nakazato, are currently in front of the Tokyo District Court and facing potential jail time if prosecutors get their way.
Nevertheless, 500.com issued a statement on Wednesday announcing that, having reviewed the report from an independent investigation conducted by King & Wood Mallesons (KWM), which it had appointed, the board “has concluded that it did not find a sufficient basis to establish a violation of the US Foreign Corrupt Practices Act of 1977 in connection with the Company’s prior activities in Japan.”
The Foreign Corrupt Practices Act of 1977 makes it unlawful for certain classes of persons and entities to make payments to foreign government officials to assist in obtaining or retaining business.
500.com added that it has reviewed the company’s compliance policies, procedures and internal controls in light of suggestions from KWM and has updated all based on recommendations from the board’s Special Investigation Committee.
500.com had been looking to develop an IR in either Hokkaido or Okinawa, but pulled out of the race when it became clear that neither prefecture would continue to pursue a bid with the central government.
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