LAS VEGAS
Casino magnate Sheldon Adelson—a pioneer in making Las Vegas what it is today as well as in the making of Macau as a gaming destination—is under investigation for bribery and practices that promote prostitution on his casino floors, according to PBS and Forbes Magazine.
Adelson, head of Las Vegas Sands Corp., is alleged in the PBS piece to have retained local legal counsel in Macau to push through some rulings that he needed to successfully create a Macau subsidiary, to be known as China Sands. However, it is a crime in the U.S. to pay foreign officials to influence policy in their countries.
Meanwhile, the former CEO of China Sands, Steve Jacobs, has filed a court memorandum alleging that Adelson took part in a strategy that promoted prostitution on Sands’ casino floors. However, it’s been alleged that Jacobs has an ax to grind following his firing in 2010 for what Adelson described as breaking company policy and pursuing unauthorized deals. Jacobs later retaliated, suing Sands for breach of contract and alleging he was let go after refusing orders from Adelson to break the law. He has since accused the Sands of promoting prostitution, working with mafia figures, bullying banks and potentially violating the Foreign Corrupt Practices Act by putting a government official on its payroll.
The suit has led to an ongoing SEC investigation—neither Sands or Adelson have been brought up on any charges.
