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Adelson offers conflicting testimony

Sands CEO says questioning caused confusion

Las Vegas Sands Chairman and CEO Sheldon Adelson offered conflicting testimony Friday about whether he or a top executive of his company breached fiduciary responsibilities and offered to pay a Hong Kong businessman to find investors and help obtain a casino license in Macau.

During contentious questioning before the lunch break Richard Suen's attorney, John O'Malley, asked Adelson whether or not Las Vegas Sands President Bill Weidner wanted Suen to find investors for what was then a proposed hotel-casino development in Macau.


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  • Adelson, 74, who in 2001 was suffering severe pain from a rare neurological disorder, told O'Malley that Weidner should not have asked someone with Suen's lack of financial experience to find investors for the project.

    "Mr. Weidner breached his fiduciary duties to his company as far as you understand, is that what you're telling us?" O'Malley asked.

    "Yes," Adelson replied, "But I still love him and I have a lot of respect for him."

    During cross-examination by Adelson attorney Rusty Hardin a few hours later, Adelson attempted to clarify his comments about Weidner.

    "Neither Bill nor I violated our fiduciary responsibilities. Period," Adelson said.

    Outside of court, Adelson explained the contradictory testimony by telling the Review-Journal that he was somewhat confused by O'Malley's questioning. He said he was talking about two different types of investors; Weidner wanted Suen to find someone who would put up $500 million or $1 billion to build the project, not the traditional mortgage financing that Las Vegas Sands uses on its developments.

    "He doesn't have a case. (O'Malley) is trying to confuse the issue," Adelson said.

    Weidner is expected to testify Monday when the trial resumes at 1 p.m.

    Adelson ended a full day on the witness stand Friday in the civil lawsuit brought by Suen by telling jurors he always takes care of his employees for their efforts, but that Suen did not help Las Vegas Sands obtain a lucrative gaming subconcession in Macau and is not entitled to share in any of the revenues being produced by the company's Chinese casinos.

    "Nobody treats their employees better than I do. Nobody has a benefit plan like we do," Adelson said at the end of almost six hours of testimony. "I think he tried, but he barked up the wrong tree."

    Suen claims he set up meetings with officials from the Chinese government in 2001, which led to Las Vegas Sands winning a shared gaming concession a year later. Suen says letters between him and Adelson and Weidner show that he was promised at least $5 million and 2 percent of the gaming operations' net profits in exchange for his help.

    "I'm willing to pay him for his time and expenses," Adelson said. "But he did nothing of value. We're not deadbeats. We pay people when they work for us."

    Suen sued in 2004 and the trial is expected to last four weeks.

    Adelson was both combative and jovial while on the witness stand Friday, but he also had to be reminded several times by District Judge Michelle Leavitt not to talk over his attorneys.

    Before his testimony, Adelson entered the Regional Justice Center from the south side entrance with men in suits who appeared to be private security guards. Adelson rode an electric scooter and court security used a hand-held wand to check Adelson. The men in suits escorted Adelson to the main elevators in the lobby that the public uses.

    Adelson, who founded Las Vegas Sands in the 1990s and took the company public in 2004, is considered the world's 12th richest man by Forbes, worth between $26 billion to $28 billion, a fact that was brought out to the eight-person jury Friday.

    Adelson told the jurors he worked hard to achieve his success "and never climbed on anyone's broken back" to get there.

    Adelson began his testimony late Thursday and concluded Friday. His testimony was taken first in the trial because he is leaving the country to celebrate the Jewish holiday of Passover. Adelson's lawyer, Hardin of Houston, said he expected to recall Adelson to the witness stand later in the case.

    On the witness stand, Adelson said much of the confusion over the company's dealings with Suen in 2001 arose because of his being afflicted with lumbar plexopathy, a disorder that causes severe pain along his side and hip area. Adelson said he first became ill during a return trip from Beijing on July 4, 2001.

    Adelson still suffers from the disease today. He walks with a cane and was helped on and off the witness stand by his wife, Dr. Miriam Adelson.

    Adelson testified that doctors spent several months in 2001 trying to determine the nature and cause of his illness. The prescribed medication, however, left him sleepy and at times unaware of certain events and details.

    "I was like Rip Van Winkle, the man who went to sleep under a tree for 20 years. I was in terrible pain. Some days the pain was less and some days the pain medication was effective," Adelson said.

    Adelson admitted that one day, he took 25 different medications to try and quell the pain.

    In later testimony, Adelson said his wife, who is a doctor specializing in the treatment of drug addiction, prescribed methadone, which made the pain more manageable. By early 2002, Adelson said he was beginning to feel normal while conducting business.

    Under questioning, Adelson said he didn't believe he was incapacitated and unable to perform his duties as chairman and CEO.

    He also testified he didn't think his illness was of a material enough nature that the company needed to file a public disclosure with the Securities and Exchange Commission. Las Vegas Sands was privately held by Adelson at the time but had public debt.

    "I guess (general counsel David Friedman) could have filed something that said 'Dear Public. Our chairman is a little cuckoo," Adelson said.

    Adelson acknowledged drafting a Dec. 27, 2001, letter to Suen, but said it was revised by Friedman before it was mailed. Friedman worked for Adelson for nine years and resigned in 2004.

    The letter notes Suen agreed to "talk to people" he knew in China who would "view The Venetian favorably to deliver a license to Macau." It ended with, "You think we brought you on as a public relations agent, and we thought we brought you on because you represented that you had the contacts that you could present our attributes to secure the license. Tell me how you think we can proceed from here."

    Adelson's name was signed to the letter by his secretary, Betty Yurcich.

    "What was sent was not what I asked to be sent," Adelson said.

    O'Malley said previously that Las Vegas Sands executives worried that paying Suen might bring SEC scrutiny because of the company's dealings with the Chinese government.

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

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    David Johann wrote on April 19, 2008 09:16 PM: Sheldon: He's 75 year old,

    http://en.wikipedia.org/wiki/Sheldon_Adelson

    and is " . . .taking up to 25 pain pills a day . . ."

    http://www.lvrj.com/news/17906064.html

    He's morbidly obese (a walking gut bucket and cholesterol colony) and from the headline above "offers conflicting testimony."

    And as one of the richest men in the world he is using his Freedom Watch organization to lobby for US war with Iran.

    Does anyone think that Sheldon might have, at least, mild Alzheimers?


    J Johnson wrote on April 19, 2008 06:28 PM: What a wind bag! Adleson has been steping on the "broken backs" of his employees and customers for years. And as if being the 12th richest person isn't enough he is trying to take over the world, but being rich doesn't bring health and happiness only a clear conscience could do that. Just a thought.


    Revenge wrote on April 19, 2008 11:12 AM: Whoever, is writing for the "god" blogger, should drop dead of cancer in both his brain and his tongue for such lies regarding the jewish people. Without the Jews you lowlife, theire would be no commerce, no banking so you can earn a small pittance, no decent food in this town without their bankrolling the 5 star resturants wher you can go and pay $15 for a burger, no nightclubs to be fleesed in and heaven for bid nofinancial crisis where you could loose yor shirt! No my friend, you are a despicable lowlife, scumscuking pencil neck geek! Now, on the other hand, the Jews, love their goyim women. Oy those tall long legged shiksha broads can give a guy a real woodie!


    Move him over there wrote on April 19, 2008 11:09 AM: Sheldon should just move to China. Let him live with the Commies. His red hair could be a tribute to the colors of their political party.


    Old Chinese Proverb wrote on April 19, 2008 11:03 AM: He who jumps in bed with Red China gets what they deserve.


    GOD wrote on April 19, 2008 10:58 AM: Even though Sheldon is jewish (you know, the ones that killed my Son)... he has earned his money on the hard work and backs of others, therefore ROCK ON SHELDON!


    Oy Vey wrote on April 19, 2008 10:31 AM: Sheldon, Boychick, first with all your gelt, cant you afford a better rag? Or for god sake pay retail for a good haircut. Looks like you got the wife to put a bowl on your head and whack off some strands! Dont worry about the memory thing, you got so much juice lay off in this town with the poers to be that they wont lay a glove on your sweet tooshe!But listen my little landsman, dont fxxxxk around with those slant eye devils, they will "s" backwards on you faster than Dr. Desani can whip out his proctoscope from your behind! Better pay up alittle backshesh to this guys, then you can go on and make acouple billion more before you plost!


    Direct pipeline wrote on April 19, 2008 10:28 AM: I hope the FEDS are watching.


    joe wrote on April 19, 2008 09:57 AM: Of course he's lying, I don't think this guy has been honest in any of his business dealings. Just ask all of the contractors who went bankrupt because he never paid them for their work on his first tower at the Venetian.

    Adelson claimed Bovis Inc. did not meet their specific project deadlines and withheld the nessecary construction installment payments as the job went on. Bovis had a hard time meeting the deadlines because Adelson kept changing the design as the project went on but he kept promising the money would be paid. Bovis was in turn unable to pay the subcontactors for their work and the subcontractors already had too much time, labor, and money dumped into the project to stop or walk away. Well, guess what? Adelson never paid and several contractors went bankrupt because they had invested all their own money to try and meet the deadlines to get paid because they weren't getting paid.

    Yea, Adelson is a real jewel, just look at how honest he is on the stand when he can't hide behind his expensive lawyers.


    LittleBird wrote on April 19, 2008 09:41 AM: Sheldon Adelson is living proof that you can have all the wealth in the world,and still be a loser.


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