Court filings about Sands Corp. Macau make interesting reading

While attorneys for former Las Vegas Sands Corp. Macau President Steve Jacobs and the powerful gaming giant skirmish over jurisdiction, facts and allegations have emerged in recent court filings that are bound to intrigue Nevada's Gaming Control Board.

Jacobs was hired as a consultant for LVSC in March 2009 and later appointed president of Sands Macau operations, according to the plaintiff's motion in opposition to Sands China Ltd.'s effort to dismiss for lack of jurisdiction filed in Clark County District Court.

A trial judge will decide the jurisdictional issues, and Sands officials deny Jacobs' allegations.

Among the allegations contained in Jacobs' affidavit:

"-- (Sands owner Sheldon) Adelson's direction to me to have investigative reports prepared on Macau government officials as well as certain junket representatives reputed to have ties to Chinese gangs known as triads.

"-- Adelson's demands that SCL continue to use the legal services of Macau attorney Leonel Alves despite concerns that Mr. Alves' retention posed serious risks under the criminal provisions of the United States code commonly known as the Foreign Corrupt Practices Act ('FCPA')."

The Jacobs litigation has also made public the massive cash courier service quietly provided by SCL and LVSC. Some $68 million, according to the company's own documents, has been flown from Asia to Las Vegas. Writes Jacobs, the "funds total tens of millions of dollars and may then (be) used for a variety of purposes, including as cash advances for customers to spend when they arrive in Nevada, to re-pay past debts incurred at LVSC's Las Vegas properties, or for the benefit of authorized persons other than the transferee."

Casino customers with heavy cash must fill out the appropriate federal tax documentation or risk running afoul of this country's money laundering statutes. And U.S. Customs also requires large amounts of cash entering the country be declared.

Surely experienced casino executives using gaming licensee jets to bring millions from Asia into the country would know the laws.

Contained in the exhibits of the submission by Jacobs' attorneys Donald Campbell and Colby Williams is a spicy exchange of letters between Campbell and Sands China Ltd. attorney Patricia Glaser. Glaser wrote a letter in 2010 demanding the immediate return of "stolen" reports authored by Steve Vickers of International Risk Ltd.

Who is Vickers?

He created International Risk in 2000 at a time when Macau was completing its transition from Portuguese to Chinese control. Before that, he spent 18 years with the Hong Kong police and was the commander of its Criminal Intelligence Bureau. Hong Kong CIB keeps tabs on the Chinese triads and other organized crime groups. These days, he specializes in corporate crisis management.

In one letter, Glaser shows she's extremely motivated to have returned by Jacobs the Vickers background reports on "certain Macau government officials, as well as the two reports relating to the background investigations of Cheung Chi Tai and Heung Wah Kong."

Who is Cheung?

He is a leader of the Wo Hop To triad, Reuters has reported. Cheung was also "the person in charge" of one of the VIP rooms at the Sands Macau. He was convicted in Hong Kong in 2009 in a case involving a conspiracy to commit bodily harm and solicitation of murder. Men were ordered to break the arms and legs of a Sands Macau dealer suspected of participating in a multimillion-dollar casino-cheating scheme.

Heung Wah Keung, meanwhile, ranks as one of the most colorful characters ever associated with the Chinese triads. He is better known as Charles Heung, international high roller and actor-turned-film producer and director. Heung gambles millions at Asian casinos and in Las Vegas, where he is treated like a king.

The content of the Vickers investigative reports would surely provide compelling reading for Gaming Control Board investigators and curious newspaper columnists as well.

John L. Smith's column appears Sunday, Tuesday, Wednesday and Friday. E-mail him at Smith@reviewjournal.com or call (702) 383-0295. He also blogs at lvrj.com/blogs/smith.