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IN BUSINESS COURTS ADELSON SANCTIONED FOR REFUSAL TO ANSWER QUESTIONS By Steve Green senior staff writer Billionaire Las Vegas casino executive Sheldon Adelson and one of his attorneys were hit with sanctions by a judge after Adelson repeatedly refused to answer questions during a lawsuit deposition. U.S. Magistrate Judge Carl Hoffman also ordered Adelson, CEO of Las Vegas Sands Corp., to appear for another deposition in the lawsuit, an overtime claim by a former driver for Adelson. The order came over Adelson's objections. "There is no question Adelson is a busy, high-ranking executive. However, that status, by itself, is insufficient to preclude his deposition. The court is satisfied that Adelson has personal knowledge of facts relevant to this lawsuit and his deposition may go forward," Hoffman wrote in his Dec. 5 order. At issue is an Oct. 6 deposition that was terminated early, after just 10 minutes, by the plaintiff's attorney after Adelson politely but firmly refused to answer some questions on the advice of his COURTS FBI SAYS LAS VEGAS COMPANY WAS RUNNING KICKBACK SCHEME By Steve Green senior staff writer Federal regulators halted trading in the stock of a little-known Las Vegas company, and one of its executives was charged in what the FBI called a criminal securities kickback scheme. The Securities and Exchange Commission said it suspended trading in the shares of seven microcap or "penny stock" companies around the country, including 1st Global Financial Corp. of Las Vegas. Officials at 1st Global Financial, which uses the stock symbol FGBF, couldn't be reached for comment on the SEC order. In criminal complaints filed in federal courts in Boston and around the country, the Justice Department and SEC said 13 people — including several corporate officers, lawyers and a stock promoter — had used kickbacks and other schemes to trigger investments in various thinly traded stocks. "The schemes involved secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in certain companies; the kickbacks were to be concealed through the use of sham consulting agreements," the SEC said in a statement. "What the insiders and promoters did not know was that the purported investment fund representative was actually an undercover FBI agent." The SEC said the charges came on the heels of an investigation aimed at preventing fraud in the micro-cap stock markets. "Fraud in the microcap stock markets is of increasing concern to regulators, as such markets have proven to be fertile grounds for fraud and abuse," the SEC statement said. One of the 13 people charged in connection with the investigation was Albert Reda, 65, of Tustin, Calif., treasurer and a member of the board of directors of 1st Global Financial. Reda was charged with mail and wire fraud. Women To Watch 2012 W SPECIAL PUBLICATION AND EVENT omen to Watch recognizes outstanding women who are clearly leaders in their industry, community and careers. These dynamic women will be profi led in this publication and honored at a formal event that is one of the most touching and emotional events of the year. For advertising and sponsorship information contact your account executive or call 702.990.2443 for more information. For nomination information, check www.VEGASinc.com or e-mail rob.langrell@gmgvegas.com 14 | 12 DECEMBER 2011 | SPACE RESERVATION EVENT DATE PUBLICATION DATE January 16, 2012 Last week in January January 30, 2012 attorney, Patrick Hicks. A video of the deposition filed as a court exhibit shows Hicks repeatedly objecting to questions that Hicks charged had nothing to do with the driver's overtime claim. After the deposition was terminated, Hicks filed court papers saying Adelson shouldn't be subjected to further depositions in the case as his underlings — rather than Adelson — know the details about the driver's employment. But Hoffman, in the Dec. 5 order, said some of the questions posed to Adelson by the driver's attorney, Donald Campbell, were acceptable. Hoffman said they also appeared to be relevant as they dealt with Adelson's understanding of two companies that provide services for Adelson and his family. The judge found Hicks had repeatedly objected on relevance grounds and demanded repeatedly that Campbell explain the relevance of the questions. SHELDON ADELSON "It is inappropriate to interrogate opposing counsel during the course of a deposition," Hoffman wrote in his order. "The court finds that Adelson's refusal to answer questions based upon his counsel's continuous suggestive, argumentative and unnecessary objections improperly impeded and frustrated fair examination of Adelson during the deposition." As a sanction, Hoffman ordered that Adelson and his codefendant companies in the case pay all of the plaintiff driver's costs and attorney's fees associated with the initial deposition, that Adelson's deposition be taken again within three weeks and that the defendants pay all costs and legal fees associated with the new deposition. Hoffman noted there had been plenty of acrimony in the case, in separate overtime and race discrimination complaints filed by Campbell against Las Vegas Sands and in past litigation pitting Campbell against Adelson. The controversies in the driver's lawsuit were further inflamed when a spokesman for Las Vegas Sands told VEGAS INC on Sept. 19 that in a state court lawsuit deposition in 2006, Campbell had become angry and tried to throw books at Adelson. Hoffman noted that Campbell had filed a video of that deposition disproving the spokesman's account. The judge further noted that Adelson's request was denied for Campbell to be found in contempt of court for allegedly releasing the 2006 deposition video to the media. Presented by: