2012 Elections
WikiLeaks sheds light on Adelson’s Asia business
Cable describes shutdown of a $100 million Adelson nonprofit in Beijing and refers to "missteps" in China
Sheldon Adelson, chief executive of Las Vegas Sands Corporation, and his wife Miriam attend the ribbon cutting of the Four Seasons Macao hotel and casino in Macau. (Credit: Bobby Yip / Reuters) We’ve learned this election cycle that casino magnate Sheldon Adelson isn’t afraid to throw around vast sums of money to get what he wants — he and his family have given at least $11 million to help the Newt Gingrich campaign.
It hasn’t gotten any notice since Adelson became a player in presidential politics, but it turns out that the trove of diplomatic cables published by WikiLeaks contains an interesting anecdote about how Adelson aggressively promoted his casino and hotel business in the Chinese territory of Macau — and a run-in he had with the central government in Beijing.
First, some context. The news broke last March that Adelson’s Las Vegas Sands Corp. is under federal investigation into whether it has complied with the Foreign Corrupt Practices Act. The act makes it illegal to bribe foreign officials to obtain business deals.
The investigation reportedly came about after a breach-of-contract lawsuit was filed by former Sands executive Steven Jacobs that floated the possibility of an FCPA violation by Sands:
Jacobs alleges, among other things, that Adelson wanted him to conduct secret investigations of the dealings of the Macau government officials to dig up dirt so they could be intimidated, and that Adelson wanted the corporation to continue using the services of a Macau attorney with a bad reputation “despite concerns that [the individual's] retention posed serious risk under the criminal provisions of the United States code commonly known as the Foreign Corrupt Practices Act.”
A confidential September 2009 cable sent from the U.S. consulate in Hong Kong back to Washington describes Adelson’s business practices in Macau. Unlike its competitor Wynn, Adelson’s Sands was lobbying Chinese government officials in Beijing rather than focusing exclusively on local officials in Macau, according to the cable. The issues of concern to Sands included “foreign labor visas, gaming oversight and regulation, infrastructure development, and perceived interference in personnel management decisions affecting Macau resident workers.”
The cable goes on to describe Adelson’s personal interest in direct engagement with Beijing and the intriguing matter of the “Adelson Center for U.S.-China Enterprise” in Beijing, a nonprofit that was to be financed with a whopping $100 million. A former Sands executive told an unnamed American official that the Chinese government forced Sands to close the center following government inquiries about “funds transfer mechanisms used by [Sands] to establish the now-closed USD 100 million Adelson Center.” The nature of those mechanisms is not specified.
The cable continues that Sands’ “current efforts in Beijing are designed in part to offset these early ‘missteps’” — but there is no elaboration on what the “missteps” were. Sands did not immediately respond to a request for comment.
As for what the Adelson Center was supposed to do, the New Yorker reported in June 2008 that it was to act as a kind of facilitator for U.S. businesses looking to operate in China:
In early August [2008], during the Olympic Games, Las Vegas Sands will launch the Adelson Center for U.S.-China Enterprise, in Beijing, which seems positioned to wield substantial influence. If you were an American businessman coming to China, the Sands’s Bill Weidner testified at the Suen trial, “you might need a logistics partner to deliver your goods. You might need a manufacturer to manufacture your goods. You might need a law firm. You might need an accounting firm. Whatever it would take to get you involved in business in China, we would-the center would help arrange for you.”
Here is the logo for the center from a filing with the U.S. Patent and Trademark Office; it’s not clear that it was ever used:

Below is the relevant section of the cable. Another interesting moment comes further down in the cable when Sands executive Jacobs (who later sued the company) is quoted as saying that a new regulation about how much Macau casino junket operators could be paid “will be routinely violated.”
LVS [Las Vegas Sands] Macau President and CEO Steve Jacobs told EP Chief on September 17 that LVS restarted its government outreach efforts in Beijing over the past several months, and achieved “great success” in building direct relationships with senior officials. Jacobs said LVS’s direct engagement in Beijing is designed to build goodwill, explain the company’s current and planned contributions to Macau’s economy and society, and encourage freer movement of PRC residents into Macau. LVS CEO and majority shareholder Sheldon Adelson highly values direct engagement in Beijing, according to Jacobs, especially given the impact of Beijing’s visa policies on the company’s growing mass market operations in Macau.
LVS’s pre-Olympic outreach efforts were suspended in early 2009, after the PRC forced the company to close its newly established non-profit Adelson Center for U.S.-China Enterprise in Beijing. The PRC’s State Administration of Foreign Exchange in China, according to LVS’s latest quarterly report published in August 2009, “made inquiries and requested and obtained documents relating to certain payments made by the company’s wholly foreign-owned enterprises to counterparties and other vendors in China.” A former LVS senior executive told Econoff that the PRC inquiries relate primarily to funds transfer mechanisms used by LVS to establish the now-closed USD 100 million Adelson Center. LVS’s current efforts in Beijing are designed in part to offset these early “missteps.”
Justin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin More Justin Elliott.
Romney releases birth certificate
Trump goes on another birther rant, and Mitt misspells "America." Wednesday's top political stories
FILE - In this Feb. 2, 2012, file photo, Donald Trump greets Republican presidential candidate and former Massachusetts Gov. Mitt Romney during a news conference in Las Vegas. Romney is set to clinch the Republican nomination for president on Tuesday with a win in the Texas primary, a feat of endurance for a candidate who came up short four years ago and watched this year as voters flirted with a carousel of front-runners before eventually warming to him. (AP Photo/Julie Jacobson, File) (Credit: AP) - Mitt Romney may just win this thing: Surprising no one, the candidate officially captured the last of the 1,144 delegates he needs to secure the GOP nomination last night in Texas, despite months of punditry about the possibility that the race could go all the way to the GOP convention.
But maybe Romney shouldn’t even bother. As Reuters reports, astrologists foresee that Obama will be reelected. Still, it may not be easy: “The ingress of Saturn into Scorpio may trouble him,” one said. “It won’t cost him the election, but it may indicate difficulties in the first half of his second term.”
Continue Reading CloseAlex Seitz-Wald is Salon's political reporter. Email him at aseitz-wald@salon.com, and follow him on Twitter @aseitzwald. More Alex Seitz-Wald.
Florida purging voter rolls
Governor Rick Scott moves forward with a plan to disqualify thousands of mostly Hispanic and Democratic voters
Rick Scott (Credit: Reuters/Brendan McDermid) Hated Florida Governor Rick Scott has a great idea: A big, massive purge of the state’s voter roll right before a sure-to-be-close presidential election. The governor ordered his secretary of state to compile a list of registered voters who might not be citizens, based on an unreliable and out-of-date state motor vehicle administration database. The secretary of state made a list and then realized the list was not actually very useful or accurate. Then he resigned, and now Scott is just purging away.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
Mitt Romney: Politics “like a sport”
What makes Mitt tick? The nominee says he likes politics because "I can't compete in competitive sports very well"
Republican presidential candidate and former Massachusetts Governor Mitt Romney gestures as he leaves a campaign event in Hillsborough, New Hampshire May 18, 2012. (Credit: Reuters/Jessica Rinaldi) Mitt Romney may have unintentionally opened a window onto his somewhat obscured motivations for running for president in an interview with the Wall Street Journal’s Peggy Noonan today, explaining that he likes sports, but isn’t very good at them, so he does politics instead.
Asked about whether he likes “the game” of politics, the presumed GOP nominee replied, “I like competition, and I think the game [of politics] is like a sport for old guys. I mean, you know, I can’t compete in competitive sports very well, but I can compete in politics, and there’s the — what was the old ABC ‘Wide World of Sports’ slogan? ‘The thrill of victory and the agony of defeat.’ The only difference is victory is still a thrill, but I don’t feel agony in loss.”
Continue Reading CloseAlex Seitz-Wald is Salon's political reporter. Email him at aseitz-wald@salon.com, and follow him on Twitter @aseitzwald. More Alex Seitz-Wald.
Trump insinuates self into Romney campaign
How a toxic attention-seeker (not Newt) will likely end up speaking at the RNC
Businessman and real estate developer Donald Trump (L) greets Mitt Romney after endorsing his candidacy for president at the Trump Hotel in Las Vegas, Nevada February 2, 2012. (Credit: Reuters/Steve Marcus) So. Donald Trump again? Are we really doing this again? I guess we are!
There were stories, recently, in the usual places, about how Trump was being seriously considered for a major speech at the Republican Convention. I did not dwell on the story much, because I assumed that these rumors were a product of Donald Trump’s prodigious vanity and powerful imagination. Ha ha ha, sure, the Republicans will definitely want the stupid make-believe TV mogul who pretends to fire people for a living, at their big party.
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
“Battlefield Earth”: Romney vs. the Psychlos
The GOP's standard bearer calls L. Ron Hubbard's bizarro sci-fi epic his favorite novel. Is that cause for concern?
Republican presidential candidate and former Massachusetts Governor Mitt Romney reads a book to children in Manchester(Credit: Brian Snyder / Reuters) There’s a scene near the end of “Battlefield Earth,” Scientology founder L. Ron Hubbard’s 1982 science fiction epic, that may explain a bit of why Mitt Romney has said (most recently this week) that it’s his favorite novel.
Our hero, Jonnie Goodboy Tyler, has just finished taking down the Psychlo empire, which has ruled Earth for the past millennium and has dominated most of the known 16 universes for going on 300,000 years. Now Jonnie has to negotiate with the alien powers who are jockeying to fill the power vacuum left behind, and things aren’t looking so good for the human race.
Continue Reading CloseDaniel Oppenheimer's book "Turncoats: The Journey from Left to Right and How It’s Transformed America," a political and intellectual history of six prominent American intellectuals who journeyed from the left to the right of the political spectrum, will be published by Simon and Schuster More Daniel Oppenheimer.
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