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GAMING CONCESSION: Adelson fights lawsuit

Sands chairman denies owing consultant millions for Macau efforts

Las Vegas Sands Corp. Chairman Sheldon Adelson said Thursday he didn't believe a Hong Kong businessman could help his casino company win a gaming concession in Macau because, at the time, there wasn't any opportunity for casino expansion in the Chinese special administrative region.

Still, Adelson said, he and Las Vegas Sands President Bill Weidner traveled to Beijing in 2001 to meet with Chinese government officials under the belief "that you never leave any stone unturned."


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  • Adelson, 74, testified Thursday in Clark County District Court on the first day of testimony in a civil trial to determine whether Richard Suen and Round Square Co. helped Las Vegas Sands win a Macau gambling license in 2002 and are owed millions of dollars.

    Adelson almost didn't reach the witness stand in Judge Michelle Leavitt's courtroom.

    Attorneys for Suen asked the judge for a mistrial following the opening statement of Las Vegas Sands attorney Rusty Hardin. Attorney James Pisanelli said Hardin "poisoned the jury" by presenting prejudicial information that was not supposed to be brought into evidence.

    Pisanelli asked that the eight-person jury be dismissed and a new panel chosen.

    Leavitt decided against a mistrial, but said she would inform the jurors in jury instructions that comments during opening statements should not be construed as evidence.

    Hardin's opening remarks did contain one bombshell.

    During 2001, he told jurors, Adelson, the world's 12th richest person according to Forbes, suffered from a rare neurological disorder that caused him to have severe pain down his side.

    Hardin said Adelson was on painkillers for much of the year and that his senior management handled day-to-day affairs of the company.

    "He was not totally with it a lot of the time," Hardin said. "Sometimes he was taking up to 25 pain pills a day."

    Hardin said the pain medication was why Adelson and Weidner gave conflicting comments about Suen in their depositions.

    Adelson took the witness stand at 4:45 p.m. and was questioned by Suen attorney John O'Malley for an hour and 15 minutes.

    Adelson is scheduled to return at 8:30 this morning. He is scheduled to leave the country Saturday to celebrate the Jewish holiday of Passover.

    Adelson said he met with Suen initially in 2000 at the request of his brother, Leonard Adelson, a business associate of Suen. Sheldon Adelson said his knowledge of Macau and the potential of operating a casino there was virtually nonexistent at the time.

    Adelson said he traveled to Asia to drum up high-roller business for The Venetian, which at the time was Las Vegas Sands' only hotel-casino. Adelson said his philosophy in 2000 "was not to do business where the American flag doesn't fly."

    However, Adelson was persuaded to attend a meeting in Beijing in 2001 with Chinese Vice Premier Qian Qichen at the behest of Suen and under the guise of building a convention center in the Chinese capital.

    Adelson said Suen told him not to mention Macau or casinos during the meeting.

    "I told Richard the last thing I wanted to do was build a convention center" in Beijing, Adelson said.

    During the meeting, Adelson said, the vice premier said he wanted to change the image of Macau, which at the time, had a casino monopoly operated by Hong Kong billionaire Stanley Ho.

    "It was a seedy, backwater of a gambling town," Adelson said. "It was not so good. They wanted to make it better. It was prostitution infested, crime infested and triad (Chinese organized crime) infested. Nothing like that would ever happen in a state like Nevada."

    Adelson also met with then Beijing Mayor Liu Qi, who asked him to "help China win the Olympics." Adelson said he called "four or five" congressmen he knew, including then-House Majority Leader Tom DeLay, R-Texas, about legislation that could hinder China's Olympic bid. Adelson said he did not ask Delay or any of the congressmen to do anything that would "go against their beliefs."

    During his opening remarks, O'Malley said Adelson and Weidner made differing financial offers to settle payment with Suen after Las Vegas Sands was awarded a gaming concession in February 2002 in conjunction with Hong Kong-based Galaxy Entertainment.

    Sands and Galaxy split and Sands was awarded a sub-concession.

    Suen claims he was promised a $5 million success fee and 2 percent of the net profits from a Las Vegas Sands casino venture in Macau.

    O'Malley told jurors then-Sands executive David Friedman would be in violation of U.S. law governing dealings with foreign governments if he paid Suen any kind of fee.

    Later, Las Vegas Sands offered Suen an opportunity to oversee the procurement of products that would be used in any hotels the company built in Macau, "which could be worth up to $100 million," according to testimony.

    It was disputed in court whether the job would be for work Suen did before the casino concession was awarded or for future earnings. The deal fell apart when Suen asked for a guaranteed $25 million.

    Adelson reportedly told Suen in 2003, "I'm not going to pay you, so sue me."

    During his opening statement, Hardin said Suen is overstating his importance in helping Las Vegas Sands obtain a Macau gaming license.

    Hardin told jurors that Las Vegas Sands won the license on its own efforts and merits.

    Hardin said Suen was trying to steer Las Vegas Sands into building a convention hall in Beijing, a deal that was separate from his helping gain a Chinese gambling concession.

    "Mr. Suen claims he brought the idea (of a Macau casino) to Las Vegas Sands," Hardin said. "That's not the case. Mr. Adelson's team was well-aware of Macau and the possibilities."

    Hardin said Weidner believed Suen should have been paid for some of his efforts and expenses while he was working with the company in 2001 and tried to negotiate a settlement. However, Hardin said Suen never presented the company with a breakdown of his time and expenses.

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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    Jeff wrote on May 02, 2008 10:10 PM: If Adelson agreed to compensate Richard Suen for his role in securing a gambling license in Macau for his Las Vegas Sands, then were is Suen's contract with Adelson and/or Las Vegas Sands????? What idiot does not make the other side sign a contract before he/she provides any service? Richard Suen is not a smart businessman. He deserves to lose.


    Sheldon should move wrote on April 18, 2008 06:14 PM: Sheldon should move to Red China with his Communist friends. We surely don't need the likes of him here.


    Cynical Observer wrote on April 18, 2008 05:30 PM: Here in the US, the jury will ultimately have to decide if the plaintiff rendered any services to Sands, and if yes, what was their value. These "no written contract" situations are a huge head ache because there is no way for the party with the money (Sands) to put a cap on their potential liability for payment of "service fees".

    That's why I hope Sands wins this one. If you want a big fee, get a written contract. No written contract, no fee.

    However, on a more mysterious level, business in China is done on a more ad hoc basis, so the interesting question will be whether this plaintiff is simply a Chinese shake down artist, or someone with serious influence which will lead to Sands Macao having "difficulties" in their continuing operations.

    I once saw a Chinese bank doing business here in USA write off a $3 Million loan, because the two borrowers were sons of a high ranking General in the Red Army.
    While the bank was on solid ground to collect in the USA, their Chinese board of directors members "decided to avoid difficulties".

    If Sheldon Adelson can "avoid difficulties" in Macao, God bless him.
    .


    Ken wrote on April 18, 2008 03:35 PM: Adelson will try to screw over anyone when it comes to money. Chances are the whole disease is a fake just to get sympathy from the jury. Just ask any building contractor about getting the shaft from Adelson. how do you think he became the worlds 12th richest man.


    eulogy wrote on April 18, 2008 02:42 PM: How much did Sheldon leave??

    All of it!

    Can't take it with you when you go.

    It is easier for a camel to go through the eye of a needle, than for a rich man to enter into heaven.


    Dave wrote on April 18, 2008 01:07 PM: Hardin said the pain medication was why Adelson and Weidner gave conflicting comments about Suen in their depositions.

    Any excuse to get out of paying your obligations. Tantamount to saying 'I didn't realize that was illegal.'

    Most wealthy folks get rich by jewing others out of their rightfull share. How do you think that phrase came to be?


    Chuck Norris wrote on April 18, 2008 10:07 AM: Sam Adelson is a friend of mine. Any stinking bink comes around and starts a fight with my boy Adelson, is gonna meet one of my "GROIN KICKS". You hear me Suen. Your days as a baritone are over, you're gonna quickly turn into a soprano.


    Jackie Chan wrote on April 18, 2008 10:03 AM: Suen, you eat everything. You come here no more!!

    Come on Suen, 2% of profits. Who the heck would make a deal like that to you. China, with the publicity from the LVRJ, was a top story in the papers for years at the turn of the century. Before you claim what you do, this China deal was not an "Ancient Chinese Secret" to begin with.


    Dr Johnson wrote on April 18, 2008 10:01 AM: The only lawsuit we care about is the one needed, against the Henderson police department, officers and chief, for the Execution and Murder of a mother in front of her children.

    There is NO excuse for this and the cops who pulled the trigger needs to fired, jailed and given the death penalty. Further as companies owners of store fronts, and medical facilities, Henderson police are no longer welcome and will be turned away.

    This murder cannot be swept under the rug as the inquest has done. WE will never forget or forgive this horrable police action. There is NO excuse for the murder of female that was tasered to the ground with her teeth gringing and her body shaking, then being shot DEAD at point blank range.. Henderson police MUST PAY..




    Dr Johnson wrote on April 18, 2008 10:01 AM: The only lawsuit we care about is the one needed, against the Henderson police department, officers and chief, for the Execution and Murder of a mother in front of her children.
    There is NO excuse for this and the cops who pulled the trigger needs to fired, jailed and given the death penalty. Further as companies owners of store fronts, and medical facilities, Henderson police are no longer welcome and will be turned away.
    This murder cannot be swept under the rug as the inquest has done. WE will never forget or forgive this horrable police action. There is NO excuse for the murder of female that was tasered to the ground with her teeth gringing and her body shaking, then being shot DEAD at point blank range.. Henderson police MUST PAY..


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