Las Vegas Sands Corp. and its subsidiary Sands China have filed a counterclaim accusing the former chief executive of the Macau company, Steve Jacobs, of extortion. According to the Las Vegas Sun, the two companies filed the new court papers last week. The counterclaim, as quoted by the newspaper, says that after Mr Jacobs was fired from Sands China, he threatened to go public with several allegedly false allegations unless “he was paid money to which he was not entitled.” Among the allegations were claims that the company’s chairman, Sheldon Adelson, had bribed or attempted to bribe Macau’s chief executive and that he had instructed subordinates to collect damaging information about public officials for Sands China to be used as improper leverage. The counterclaim says Mr Jacobs “engaged in intentional acts intended and designed to disrupt the prospective business relationship by wrongfully accusing Las Vegas Sands Corp. and its officers of engaging in criminal and improper activity.” According to the Las Vegas Sun, the counterclaim also accuses Mr Jacobs of violating a non-competition agreement between Las Vegas Sands and Sands China that prohibited the latter from engaging in gaming businesses outside Greater China. That happened when Mr Jacobs announced Sands China would be pursuing casino businesses in Japan. The disclosure by Mr Jacobs that Sands China was interested in Japan injured “Las Vegas Sands’ prospective business relationship with necessary third parties in development of the Japanese market,” the counterclaim says. Sands also alleges Mr Jacobs commissioned an investigative report by consulting firm International Risk Ltd., regarding Macau public officials, putting at risk the company’s relationship with the governments of Macau and Beijing. The counterclaim says Mr Jacobs did not seek authorization from the board of Sands China or from chairman Sheldon Adelson prior to commissioning the report. The counterclaim also alleges that Mr Jacobs refused to immediately end junket contracts involving alleged organized crime figure Cheung Chi Tai, identified as a triad member and junket operator by a Reuters report last year.
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