A former top China executive at Las Vegas Sands Corp. suggested in a court filing made public Thursday that there was potential wrongdoing by company executives, including allegations that chairman Sheldon Adelson approved a “prostitution strategy” at the casino operator’s Macau properties.
The filing in Nevada District Court in Las Vegas by Steve Jacobs, the executive, is one of the most explosive yet in a continuing legal dispute between Mr. Jacobs and his former employer. Mr. Jacobs and his attorney accused the casino operator of withholding documents Mr. Jacobs is seeking in order to establish jurisdiction in his wrongful termination lawsuit, which was first filed in 2010.
[...]
In the filing, Mr. Jacobs alleged that senior executives were concerned about a project Mr. Jacobs launched after he arrived in Macau in May 2009, called “Operation Clean Sweep,” designed to rid the casino floor of loan sharks and prostitution. The executives were concerned with his plan because “the prior prostitution strategy had been personally approved by Adelson,” Mr. Jacobs alleged in the filing. The filing didn’t provide details on the purported “prostitution strategy.”
According to the filing, executives confirmed by email Mr. Adelson’s involvement in the strategy and highlighted its “success.” Mr. Jacobs says he put hard copies of those emails in a folder labeled “Outrageous” in his office drawer.
Such activity is forbidden by the Foreign Corrupt Practices Act. Interestingly enough, this act is currently under attack by Republicans and the U.S. Chamber of Commerce, especially certain USCoC members like Wal-Mart — though I wouldn’t be surprised if Mr. Adelson’s troubles have lent an urgency to GOP efforts to gut the FCPA. It wouldn’t be the first time Republican legislators have saved this particular benefactor from feeling the pinch of law enforcement or any other sort of regulations or accountability. Just ask Newt Gingrich:
Let’s start at the very beginning. Adelson remembers meeting Gingrich in Washington in 1995, when Gingrich was House Speaker and Adelson was lobbying to get the U.S. embassy in Israel moved from Tel Aviv to Jerusalem. Other reports have them being introduced in 1996 by a far-right anti-union operative in Nevada who worked for Adelson. Details of the subsequent courtship are murky, although the huge favor Gingrich did for Adelson in 1996 by turning off a federal investigation of the gambling industry probably did a lot to cement their friendship.
Two years later, Nevada conservatives sponsored a “Paycheck Protection” ballot initiative – the right-wing term for measures weakening unions by banning them from automatically deducting dues from members’ pay. Adelson was gung-ho for it – and “would spend any amount of money,” D. Taylor, secretary-treasurer of Las Vegas’s Culinary Workers Union Local 226, told me; however, the Nevada Republican Party was split over whether to take on the powerful Vegas unions. That was when Gingrich did the anti-labor side a solid, recording a videotaped message in support of the measure at a Nevada GOP dinner at the height of the intra-party civil war. And, in another detail the Times missed, Gingrich also promised to block an IRS proposal to tax meals that casinos provide employees. (An amendment to that effect, costing the U.S. Treasury $316 million, indeed ended up in an IRS reform law.) Soon after, Gingrich enjoyed a fundraiser at the Vegas convention center owned by Adleson. Ah, young love.
Has Sheldon Adelson finally found himself in a situation he can’t bully or buy his way out of? Time will tell. Meanwhile, various eyes are on Mitt Romney, to see if the sudden exposure of Adelson’s Macau prostitution scandals might cause him to have a group acting on his behalf return that $10 million Adelson gave them.




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The Foreign Corrupt Practices Act really took down Murdoch in America hasn’t it?
America is the most corrupt country on earth. It’s just that the corruption is all at the top.
Thing is, the FCPA isn’t geared for media. (Unless of course Rupert’s been running brothels disguised as gambling houses, in which case we could go after him.)
The only thing of that sort that Murdoch was vulnerable under in the US was a law that forbade foreign nationals from owning TV networks — and the first thing Newt did when he became Speaker was to get that law overturned.
Hmm let’s see. There was once a thingy called Glass-Steagall. Now it’s gone. Can FCPA be far behind?
Color me skeptical. The corruption has grown exponentially at the top since the ’70s. I don’t see anything at all happening to him.
In fact, I think people in this country have now learned the lesson so well that the elite are above the law that they accept it both consciously and unconsciously to the point they don’t even question it anymore.
“Sheldon Adelson approved a “prostitution strategy” at the casino operator’s Macau properties”
No scandal here. Fox ‘News’ will decree that either this didn’t happen at all or the accusers are all lying or it’s not a crime at all. And this ‘news’ will cease to exist.
I thought bribes were included under the FCPA
Actually, Rupert became a US citizen as the work around
You make a good point. People have become numb to this shit. And it all started back there in the seventies. At least some are now starting to write about that neo liberal awakening back then and some are even starting to question it. You know the whole free market worshipping thing that leaves millions unemployed and lets creeps like Adelson steal all he can.
I’m gonna go with it never happened at all.
Short answer: No
The “free market” they crow about has always been an utter lie in this country.
From the start of this country business has held out it’s hand to the government for:
logging rights
mining rights
water rights
grazing rights
trading rights
Now they hold out their hands for free money and monopolized trading agreements.
Crush the “free market” lie.
Oh, yeah, but that was after Newt got the law struck down IIRC.
It’s not that people have become numb to it, it’s that it’s so seldom reported anywhere that most people can see it — and when it is, it’s certainly not given the heavy, repetitive emphasis that, say, Paris Hilton or Lindsay Lohan get every time they vomit in public.
Steven Brill of the late lamented Brill’s Content used to compare how back in the 1970s the alleged news magazines Newsweek and Time almost never had the same cover stories as did the relentlessly fluffy People magazine. By the late 1990s the three mags were nearly indistinguishable from one another.
Ah, but this story is in a Murdoch property, the Wall Street Journal. Which is in essence the print version of FOX News.
Is perhaps Uncle Rupert — who takes a great interest in the print portion of his empire — trying to rein in a potential media rival?
As Murdick did did with Kerry Packer in OZ, if I remember the distant past correctly (distant both in time & space).
Yes, your memory is accurate (I lived downundah many years ago & have been familiar with a lot of the media “stuff” since the ’70s, esp bc a number of my “mates” are “journos”).
My first guess, when reading this, is that Rupert is going after a rival in the way that he knows best. Nothing more, nothing less. Rupert could give a shit about ethics – I mean srsly, I don’t think Murdoch knows such a concept even exists, or if so, it’s only for the CHUMPS & rubes, not for him.
Thanks, PW.
Fistly I have to recommend based solely on your blingee photo alone. Had me laughing out loud. Very good.
And thanks also for the content, which is interesting but utterly unsurpising.
I DO see citizens writing letters to the Editor about Adelson & how he’s buying influence. So there is *some* awareness of this CROOK and the power he wields with his purse string.
That said, this dog won’t hunt, and the story will go away where all scurrilous deeds by the CROOKS at the top go… Adelson has so much money, he can just BUY OFF whomever he feels like. The end.
Yawn, not another sex scandal. Adelson is a scumbag to be sure, but I don’t frankly care if a Vegas-based nightclub operation set up prostitution in one of its high-roller facilities out in the middle of nowhere. The man needs to be brought down for the colossally immoral attempt to buy out the US political system, and also for the dubious position of being effectively an agent of a foreign power (Israel) engaged in political operation here.
I agree.
Time to rally Americans for their country’s sovereignty and against foreign powers purchasing the “elected” officials of our government.
How hard can that be to do?
Time to call these people traitors and their bought and paid for Senators and Congressmen and Presidents illegitimate.
yes to both of you. exactly. That’s the real story which needs to be hammered endlessly.
If Murdoch is dinging Adelson about some sex scandal, Murdoch is probably ALSO motivated to shine the spotlight on something like that bc, in the scheme of things, it IS inconsequential. Murdoch shines the negative spotlight on prostitution in order to *distract* the rubes from the REAL story, which is that Adelson, like Murdoch, buy influence and power in our nation illigitimately.
You srsly want to take down the Israeli lobby?
So the No.1 friend of Bibi, Avigdor, and the Likuds is going to face prosecution in the nation that supports and/or condones every illegal action perpetrated by Israel. Like that would happen. I’m sure Eric “Chiquita Killer” Holder will drop his war crimes and Wall Street investigations and prosecutions to work on convicting Adelson.
Reading this brings to mind Casino Jack Abramoff and political the junkets to the Marianas Islands*.. “Honeypot” stings are notoriously effective when high rollers and politicos go to exotic locales..the recent CIA imbroglio is a perfect example.
Anyone else recall Adam Kidan and Jack Abramoff;s connection to Gus Boulis and Sun Cruz?
(Coincidentally enough,Boulis’ Sun Cruz Casino ship was looking to set up shop in Macao,shortly before his murder.IIRC..)
Interesting and deft exchange last night on Bill Maher. Abramoff re: Adelson.
The two you named have a quality that is common amongst the “aristocracy” in this country, including the top scum of Wall Street and our political system. They are all sociopaths and their amorality allows them amass money and power at the expense of the 99%.
Excerpt
:“Recently, Kidan charted an aggressive, expansionist course toward exotic ports of call 10,000 miles away in the Pacific Ocean,” the Miami Daily Business Review reported on June 15, 2001.
SunCruz was in the “final stages” of bringing casino ships to berths in Hong Kong and to the former Portuguese colony of Macao, and that SunCruz officials had visited Guam, where they also intended to start a floating casino, the paper reported.
TOP TEN THINGS YOU NEVER KNEW ABOUT JACK ABRAMOFF
TOP TEN THINGS YOU NEVER KNEW ABOUT JACK ABRAMOFF,Republican lobbyist scandal SunCruz casino ship scandal,
http://www.madcowprod.com/10272005.html – Cached
Good memory. Didn’t Boulis die under “mysterious” circumstances? Maher seemed uncomfortable and in denial when Abramoff truthfully pointed out that the corruption of both “parties” in our duopoly was a fact. Bill has to rationalize that his $1 million donation to the Obama campaign was justified. Bill’s not as intelligent, perceptive, or informed as he thinks he is.
Thanks !!
For a long time, I didn’t “get” the Boulis Abramoff connection..however, the film that Kevin Specey did about Abramoff,although not one of his greatest efforts,DID clarify the connection more clearly for me.If you get a chance,its worth a watch.
I have been a fan of Maher for a long time…but you are correct…smart and smart ass aren’t the same thing.Maybe Bill could use a gentle reminder?
Perhaps Bill just has access to superior bud, but he seems to increasingly alternate from objective/informed to subjective/misinformed/disinformed during campaign season. One thing I can’t excuse him & Michael Moore for is discouraging Ralph Nader from campaigning for President. A spirited endorsement and support from those two would have benefited the nation.
PS. utilize the reply button at the bottom right to reply directly to another’s comment.
There is no scandal that a billionaire with Adelson’s money can’t weather.
Maher has always claimed to be a “libertarian” … whatever the EFF that means. I don’t watch him (or anyone on tv, frankly) very often. Maher, imo, is uneven/inconsistent in his political viewpoints, although he’s done some good stuff.
I think Maher, like anyone else making heaps and piles and bundles of money is blinded by his financial status.
and for some reason, most citizens, including the likes of Maher, appear loath to let go of the notion of a binary political system. I don’t totally understand why, but Maher’s not unusual in that regard.
I haven’t seen the Kevin Spacey film mentioned by the other commenter.
You betcha! Adelson’s bought everyone in sight, so like W & Alfred E. Newman, Adelson’s theme might as well be: WHAT? Me worry?!!??
Absolutely. They don’t give a rats patoot about anyone or anything. And believe me, if they ever happen to think about it, they laugh & scoff and look down on the PEASANTS who actually, you know, have some sort of a conscience/morals/values/whatever.
Ethics & morals are for pussy peons, who are there to be ground under by the sociopaths at the top. Never forget it. Very very rare, to almost non-existent, that any of the 1% see life any differently than that. They are NOT like the 99%, and that’s how they ground under everyone in sight to get to the top. Don’t forget it.
Thanks for the reminder about Abramoff. I’m sure there are other similar stories out there like that.
Your welcome.
I would be curious if there are political junkets to Adelson’e establishments….