Watchdog group says Adelson laundered contributions

CARSON CITY -- Sheldon Adelson, who is building the Venetian hotel-casino on the Strip, has been accused by Common Cause of illegally laundering $80,000 in campaign contributions to Mark Smith, a candidate for the County Commission.

The nonprofit organization, which serves as a watchdog over government, filed a request Wednesday with Secretary of State Dean Heller to launch an investigation or turn its complaint over to the state attorney general's office.

Adelson could not be reached for comment. But Bill Weidner, president of the parent company for the Venetian, said that "we feel comfortable we have acted within the law" and that lawyers have checked to make sure things are legal. He suggested the action by Common Cause was "politically motivated."

Smith, a Republican who is challenging incumbent Democrat Myrna Williams, said, "As far as I know, these are legal contributions." He said he did not know anything about the allegations.

Pamela Crowell, chief of elections in the secretary of state's office, said she had not had time to read the letter and accompanying documents from Common Cause and did not know what action would be taken.

In addition to the allegations of contribution laundering, Common Cause complained that Adelson is going to spend several hundred thousand dollars for television advertisements against the three county commissioners in "an unprecedented effort by one person to control the political process in Clark County."

Weidner said Adelson has a right to say what he wants on television as long as he does not coordinate his efforts with those of a politician. "Shame on Common Cause," Weidner said in referring to its statements about the television ads. Clark County, according to Weidner, has not played fair with Adelson in the construction of the Venetian.

Common Cause said Adelson, through his Venetian Casino Resorts, has also contributed $300,000 in legal ways to various candidates during this election season.

Robert May, treasurer for Common Cause, said a review of records show Adelson made 16 contributions of $5,000 each to the Smith campaign starting July 9 and ending Aug. 19. The contributions came from different companies, all associated with Adelson.

Adelson, according to May, is "in ultimate control of each" of the companies. May said he recognizes that corporations affiliated with other corporations can each make maximum $5,000 contributions, as long as the money is coming from them.

"In this case, we have substantial reason to doubt that each of these entities listed above is capable of making a bona fide contribution in the amount indicated," May said. "Information obtained from the Clark County Business License Department indicates that only three of the listed entities have business licenses. ... The other entities have no apparent means of generating revenues from which bona fide contributions could have been made.

"Accordingly, it appears highly likely that funds were transferred by and between these various entities in an attempt to launder campaign contributions in excess of the statutory limits" of $5,000 in the law, May said.

Weidner said all of these companies were formed for legitimate business, with some of them as much as 10 years old.

Before the present law was enacted in 1997, May said Adelson apparently did the same thing in contributing $94,000 to the campaign of Lance Malone, who was elected county commissioner.

If there was laundering of the campaign money, May said legal implications will follow not only for Adelson but for Smith. It's a felony to launder money to evade the $5,000 campaign limit. It is also unlawful for a candidate to accept contributions in violation of the law. May said further investigation is needed to determine whether Smith's conduct was willful and whether he knew the money was coming from the single source of Adelson.

But he said Smith should contact the groups he got the campaign money from to determine whether they were legal contributions. If Smith found there were violations, he could immediately return the money to show his good faith, May said.

Weidner said Adelson believes the County Commission is corrupt and is the "handmaiden of the Culinary Union." When Adelson refused to hire relatives of the County Commission and to grant a franchise in a hotel to one of them, the commissioners imposed roadblocks on development of the Venetian, Weidner said.

Weidner said one such roadblock was a traffic study to appease the Culinary Union, with which the casino owner has battled. "It's time to stop this. There should be fair treatment. It's time to change the way Clark County does business," Weidner said.

The businesses brought into question by Common Cause are Las Vegas Sands, Inc. Venetian Casino Resort, LLC; Mall Enterprise, LLC; Lido Casino Resort, LLC; Interface Group Holding Co., Inc.; Interface Partners, International, Ltd.; Sands Expo; Silver State Realty Trust; Grand Canal Shops Mall MM, Inc.; Lido Casino Resort Holding Co., LLC; Grand Canal Shops Mall, LLC; Grand Canal Shops Mall Construction, LLC; Lido Casino Resort, LLC; SGA Acquisition, LLC; Grand Canal Shops Mall Holding Co., LLC; and Lido Intermediate Holding Co., LLC.

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