Chinese-based BIT Mining Ltd., formerly known as 500.com Limited, an online sports lottery service provider, recently agreed to pay a $4 million civil penalty to resolve charges it violated the Foreign Corrupt Practices Act (FCPA) from 2017 to 2019.
The Securities and Exchange Commission (SEC) alleged 500.com engaged in a bribery scheme to influence foreign officials, including Japanese parliament members, to establish an integrated resort casino in Japan. Illicit payments in the form of cash bribes, entertainment, and extravagant trips totaled approximately $2.5 million.
A 500.com senior executive authorized the bribes. The company never entered the market after the bribery scheme was revealed.
“Investors must have confidence that the operations and performance of public companies reflect merit and legitimate considerations,” Charles E. Cain, SEC Enforcement Division’s FCPA Unit chief, said. “Bribery and corruption turn that dynamic on its head, distorting the orderly operation of the markets and undermining investor confidence. Here, 500.com’s deficient controls fostered an environment that enabled a bribery scheme involving the highest level of the company and influential Japanese officials. This case underscores the need for robust internal accounting controls that are properly implemented and effective throughout an organization.”
BIT Mining also agreed to pay a $10 million criminal fine, the U.S. Department of Justice announced.