MINV Allen Lichtenstein Nevada Bar No. :3992 3315Russell Road, No. 222 Las Vegas, NV 89120 (702) 433-2666 phone (702) 433-9591 fax allaw@lvcoxmail.com Attorney for Proposed Intervenors, Campaign for Accountability STEVEN C. Plaintiff, v. LAS VEGAS SANDS CORP., a Nevada Corporation; SHELDON G. ADELSON, in his individual and representative capacities; DOES and ROE CORPORATIONS Defendants. Electronically Filed 06/08/2015 04:31 :59 PM Q??mtw CLERK OF THE COURT Case No.: Dept. No.: XI MOTION TO INTERVENE AND IN SUPPORT OF UNSEALING THE VICKERS REPORTS, BY CAMPAIGN FOR ACCOUNTABILITY Comes now the Campaign for Accountability by and through the undersigned attorney and ?les this Motion to Intervene in the above captioned case, pursuant to NRCP 20 and NRCP 24. The purpose of this proposed intervention is to allow to request and argue for the unsealing of material previously ?led in this case, under seal the so-called Vickers Reports. NRCP 24(a) directs the district court to approve a timely application to intervene of right when either (I) a statute grants an unconditional right to intervene, or (2) "the applicant claims an interest relating to the [subject] property . . . and the applicant is so situated that the disposition of the action may, as a practical matter, impair or impede the applicant's ability to protect that interest, unless the applicant's interest is adequately protected by existing parties. Am. Home Assur. Co. v. igktk Judiciat Dist. Court, 122 Nev. 1229, 1235, 147 P.3d 1120, 1124 (2006). \10While the named parties have argued about this issue, their moving papers and responses have all focused on those parties? individual interests. However, the Nevada Supreme Court has made it clear that the question of the public access to judicially-?led documents also involves questions of public interest that often transcend the individual interests of the individual parties. 66, Howard v. State, 291 P.3d 137 (Nev. 2012). With acute awareness of the presumption favoring public access to judicial records and documents, federal and state courts have decided that a court may exercise its inherent authority to seal those materials only where the public's right to access is outweighed by competing interests. Id. at 241. Here, no such showing has been made by any of the named parties. The public interest issue has been virtually ignored. Thus, it has become necessary for to intervene, in order to insure that the important public interest served by unsealing the Vickers Reports is adequately presented to the Court. It should be noted that on May 29, 2015, non-party Guardian News Media, LLC (?Guardian?), ?led a similar Motion to Intervene and Unseal Court Records. Because the Guardian?s Motion and the instant Motion involve similar, albeit not identical, issues and arguments, Proposed Intervenor, requests that both motions be heard on the same day. A hearing on the Guardian?s Motion is scheduled for hearing on July 10, 2015. CfA?s Motion is made based on all pleadings and papers on file herein and the Memorandum of Points and Authorities attached hereto and any further argument and evidence as may be presented at hearing. Because of the pendency of motions in this case, it is requested that the Motion to Intervene be heard on an expedited basis. Dated this 8th day of June 2015 Respectfully submitted by: Allen Lichtenstein Allen Lichtenstein Nevada Bar No. :3992 3315Russell Road, No. 222 Las Vegas, NV 89120 (702) 433-2666 phone (702) 433-9591 fax allaw@lvcoxmail.com Attorney for Proposed Intervenors, Campaign for Accountability NOTICE OF MOTION To: All parties and their counsel PLEASE TAKE NOTICE that the undersigned will bring Proposed Intervenor? Campaign for Accountability Motion to Intervene and Unseal Court Records in Department XI of the Eighth Judicial District Court, Clark County, Nevada Clark County, on the In Chambers 2015, at o?clock or as soon thereafter as counsel can be day of July heard. Allen Lichtenstein Allen Lichtenstein Nevada Bar No. :3992 3315Russell Road, No. 222 Las Vegas, NV 89120 (702) 433-2666 phone (702) 433-9591 fax allaw@lvcoxmail.com Attorney for Proposed Intervenors, Campaign for Accountability MEMORANDUM OF POINTS AND AUTHORITIES I. INTRODUCTION Pursuant to NRCP 20 and 24, Campaign for Accountability a nonpartisan public interest organization, moves this Court to join in the action of petitioner Guardian News Media LLC, (?The Guardian?), which is seeking an order permitting it to intervene as a non-party in the above-captioned matter; and to unseal Exhibit 1100. Exhibit 1100 consists of the Vickers Reports, which were prepared by International Risk Limited, a private investigative ?rm that employed an investigator named Steve Vickers. These reports allegedly reveal possible business ties between the Las Vegas Sands Corporation and Cheung Chi Tai and Heung Wah Keung, high ranking members of Chinese triads. In addition to the public interest rationale see also the Guardian?s Motion seeks access to these documents to serve the compelling public interest in learning the extent to which Sheldon Adelson (?Adelson?), Chairman and CEO of LVS, a Defendant in this action, has used money acquired through criminal activity in his Macau casinos to make campaign contributions to candidates for public of?ce. Given the scope of Defendant Adelson?s past campaign contributions and his pledge to spend hundreds of millions more in the upcoming election cycle, the source of his contributions and the possibility that he may be using the campaign contribution process to launder illegally acquired money are matters of signi?cant public interest. The Vickers Reports are likely to shed light on these issues and provide the public with invaluable information. is a newly formed project of a 501(c)(3) public charity, with a mission of exposing misconduct and malfeasance in public life. examines issues of corporate accountability, public of?cials, and those who seek to in?uence public of?cials. As its ?rst action, on \10behalf of stockholder Stephen Silberstein, sued the US. Securities and Exchange Commission challenging as arbitrary, capricious, and contrary to law the refusal to grant the petition of Mr. Silberstein for a rulemaking that would require public companies to disclose corporate funds used for political contributions. Like most of America, is concerned with the pernicious effect from the ?ood of anonymous money that has poured into our elections, affording the public no opportunity to understand the true sources and interests that are funding individual political candidates. CfA?s interest in this arena extends to the activities of Sheldon Adelson, who has pledged to be one of the largest individual donors in the upcoming elections. Access to the requested documents will inform and enhance public awareness of Mr. Adelson?s role in electoral politics and provide the transparency necessary for the public to hold responsible, the officials and candidates for public of?ce who accept his money. 11. STATEMENT OF FACTS This Court, in determining its jurisdiction to hear this case, considered a wealth of documents ?led under seal that included the Vickers Reports. These reports reportedly explore possible business ties between LVS and several alleged organized crime ?gures in China, Cheung Chi Tai and Heung Wah Keung. Although the precise contents of these reports have not been revealed publicly, their very subject indicates they are likely to con?rm whether LVS was willfully doing business with organized crime figures in China known to be engaging in corruption and money laundering in Macau, the locus of Mr. Sheldon?s most lucrative gambling interests. Opening the Sands Macao in 2004 transformed Adelson from a minor player in the gambling world, to ?the undisputed top dog in the $150 billion global gaming industry and a major political power broker in Israel and the Muhammed Cohen, Sands Macao: The House that Built Sheldon Adelson, Forbes, May 15, 2014, available at es. 4/?05/7 The Macau casinos are responsible for Adelson?s great wealth; he is reportedly worth over $29 billion and is one of the globe?s richest men. According to Steve Vickers, author of the Vickers Reports and a former intelligence of?cer with the Hong Kong police and a specialist in triad activities, Macau long has had deep ties to organized crime. Katie Hunt, The Dark Side of Asia?s Gambling Mecca, CNN, June 18, 2013, available at Casinos, including those operated by LVS, rely on VIPs brought in from China by junket operators. As Vickers has explained, ?junkets are an integral part of the gaming scene and they facilitate the transfer of funds, the ?nding of high rollers and they facilitate the breaching of Chinese capital controls.? Id. ?It is common knowledge that the operation of VIP rooms in Macau casinos had long been dominated by Asian organized crime . . U.S.-China Economic Security Review Commission, 2013 Report to Congress, p. 358 (113 Cong., 2d sess. Nov. 2013), available at cc. govlsites/defaultlfileslannual reports/ omplete%2020 1 3 9/520Annual%20 Casinos in Macau, including subsidiaries of US. licensed casinos, are heavily dependent on the junket system as the primary source of income. Id. at 360. ?Without the junkets, none of the US. casino operators would make a red cent.? Id. at 360-61. According to former LVS president William Weidner, junkets channel as much as $3 billion a month from the Chinese mainland to Macau. Matt Isaacs, Lowell Bergman and Stephen Engelberg, Inside the Investigation of Leading Republican Money Man Sheldon Adelson, Pro Pablz'ca, July 16, 2012. Id. One junket company with which the Venetian Macau entered into a \10credit agreement was ?nanced by Cheung Chi Tai, named in a U.S. Senate report as the leader of a triad. Id.; Asian Organized Crime, Hearing Before the Permanent Sabeornm. 0n Investigations of the S. Comm. 0n Governmental Affairs, (102nd Cong. 1991). A LVS subsidiary also appears to have had a relationship with another triad member, Charles Heung. Id. U.S. regulators have described the junket operators as offering money laundering services. They attract high-stakes gamblers to VIP rooms in the Macau casinos and, in return, receive a commission on the amount of chips they deal and percent of the gambling losses incurred by the client. Id. at 360. Given the extent to which casinos in Macau rely on junket operators, LVS likely has been involved in money laundering.1 Adelson asserts strong control over his Macau casinos. As this Court found in its Amended Decision and Order issued May 28, 2015 (?Amended Decision?), Adelson is not just Chairman of the Board of Directors of LVS, but also of Sands China Limited Amended Decision at 22-23. LVS owns approximately 70% of stock and includes SCL as part of its consolidated filings with the U.S. Securities and Exchange Commission. Amended Decision at 11 26. SCL is the indirect owner and operator of the majority of Macau operations, which include the Sands Macau, the Venetian Macau, Four Seasons Macau 1 LVS previously settled a money laundering case with the government. In 2013, to avoid criminal prosecution, the Las Vegas Sands agreed to return more than $47 million sent to the Venetian casino by drug trafficker Zhenli Ye Gon, ?who at the end of 2006 or early 2007 was the largest all-cash, up- front gambler the Venetian Palazzo had ever had.? U.S. Department of Justice, ?Operator of Venetian Resort in Las Vegas Agrees to Return over $47 Million After Receiving Money Under Suspicious Circumstances,? August 27, 2013, availabie at govx?usaoic acr?Pressroorn?Z0 1 1 1 1 {3 .11trnl- Among other legal violations, the Las Vegas Sands allowed Ye Gon to transfer funds into an account that did not identify its association with the Venetian an aviation account used to pay pilots operating the company?s aircraft. Casino personnel also permitted Ye Gon to wire money incrementally rather than in larger lump sums, despite his having specifically explained that he wired the money incrementally to hide the transfers from the government. Id. 9 \10and other operations that support these properties. Amended Decision at 27-28. This Court also found that whether or not other employees, such as Steven C. Jacobs (?Jacobs?), plaintiff in the underlying action, had the title of chief executive officer of SCL, Adelson was and remains the CEO of the entire organization. Amended Decision at 11 49. ?Adelson and LVS assert an extraordinary amount of control over SCL . . . Adelson and control over SCL goes far beyond the ordinary relationship of parent to subsidiary.? Amended Decision at 11 110. The Court explained, ?Even though Jacobs and others at SCL were permitted to provide recommendations, the decisions large and small were ultimately made by Adelson and LVS in Las Vegas.? Amended Decision at 11 112. Thus, it strains credulity to believe the junket operators could engage in illegal conduct without Adelson?s knowledge and at least tacit approval. The Vickers Reports, commissioned by LVS, would likely shed light on Adelson?s knowledge of and relationship with the junket operators. Adelson is one of the nation?s top political donors, reportedly spending $150 million in an effort to unseat President Barack Obama in the 2012 election. Peter Stone, Sheldon Adelson Spent Far More on Campaign than Previously Known, Haf?ngton Post, December 3, 2012, avaz'ZabZe at ost. comf20 12 election 11 2223589html. Adelson and his wife contributed at least $98 million to 34 different candidates and groups that reveal their contributions. Theodoric Meyer, How Much Did Sheldon Adelson Really Spend on Campaign 2012, Pro Pablz?ca, December 20, 2012, available at 2012, They also contributed between $45-$55 million to nonprofit groups that do not disclose their donors. Stone, Haf?ngron Post, Dec. 3, 2012. Adelson was the largest single donor funding the 2012 presidential race and has indicated he will spend significant amounts in the 2016 race. He is so avidly courted by Republican presidential aspirants that the press frequently refers to the efforts to secure his ?nancial backing as the ?Adelson primary.? See, Kenneth P. Vogel, ?Sheldon Adelson primary? Cranks Up Next Month, Politico, March 17, 2015. US. law prohibits foreign nationals from directly or indirectly making any contributions in connection with federal, state or local elections. 2 U.S.C. 44le. Given the extent to which Adelson?s wealth derives from his Macau casinos and the extent to which the Macau casinos derive their profits from the junkets, which are controlled by the triads and are heavily involved in money laundering it is quite possible Macau organized crime funds have wound up in the coffers of candidates for federal office and/ or in the treasuries of so-called dark money groups supporting them. In an interview with PBS, Senator John McCain noted, ?much of Mr. Adelson?s casino profits that go to him come from his casino in Macau . . . which says that, obviously, maybe in a roundabout way, foreign money is coming into an American campaign political campaigns.? Interview with Sen. John McCain, PBS News Hour, June 14, 2012, available at 06?- ARGUMENT A. Non-Party Intervener Should Be Permitted to Enter the Case as an Intervenor Under Nevada Procedures to Protect and Exercise Important First Amendment Rights Accorded Members of the General Public. NRCP 24(b) provides in pertinent part: ?Upon timely application anyone may be permitted to intervene in an action: (I) when a statute confers a conditional right to intervene; or (2) when an applicant?s claim or defense and the main action have a question of law or fact in common.? Federal courts, interpreting the nearly identical federal counterpart to NRCP 24(b), have routinely extended this right of intervention by non-parties to civil actions pursuant to Fed. R. \10Civ. P. 24(b) to challenge con?dentiality or protective orders entered in a particular matter. See, Beckman Indus, Inc. v. Internat?l Ins. Co., 966 F.2d 470 (9th Cir.), cert. denied, 506 US. 868,; Pansy v. Borough ofStroudsberg, 23 F.3d 772 (3d Cir. 1994); Public Citizen Liggett Group, Inc, 858 F.2d 775 (1st Cir.), cert. denied, 488 US. 1030 (1989). NRCP 20(a) provides: ?All persons may join in one action as plaintiffs if they assert any right to relief jointly, severally, or in the alternative in respect of or arising out of the same transaction, occurrence, or series of transactions or occurrences and if any question of law or fact common to all these persons will arise in the action.? Here, seeks access to documents currently under seal, a purpose that ?ts squarely within the underlying purpose of both NRCP 20(a) and NRCP 24(b). As The Guardian previously filed a motion to intervene and unseal the same court records seeks unsealed, CfA?s action is properly viewed in conjunction with The Guardian?s. Without the intervention of both The Guardian and the strong public interest in these documents will not be fully represented, disserving the public?s constitutional and common law right of public access to judicial documents. B. CfA?s Right to Challenge the Con?dentiality of the Vickers Reports is Based on the First Amendment and the Right of Public Access to Judicial Documents. ?The common law right of public access to judicial documents is said to predate the Constitution.? United States v. Amodeo, 44 F.3d 141, 145 (2d Cir. 1995). Following this common law principle, the United States Supreme Court has recognized the public?s right to inspect and copy court documents and otherwise have access to judicial proceedings. Nixon v. Warner Communications, Inc, 435 US. 589, 597 (1978). This right, which includes access to records and documents in judicial proceedings, is anchored in the value of keeping ?a watchful 10 \10the workings of public agencies? and in publishing ?information concerning the operation of government, id. at 597-98, and it stems from both the First Amendment and the common law. See, Globe Newspaper Co. v. Superior Court, 457 US. 596, 604 (1982); Richmond Newspapers, Inc. v. Virginia, 448 US. 555, 588 (1980). Acting on this recognition from the Supreme Court, lower courts repeatedly have recognized this First Amendment right extends to civil proceedings. See, e. g, Kamakana v. City Cnty. 0f Honolulu, 447 F.3d 1172 (9th Cir. 2006) Moreover, in the State of Nevada, there is a presumption all stages of court proceedings should be open to the public. See, e. g. Stepnens Media LLC v. Eigntn Judicial District Court, 221 P.3d 1240, 1248 (Nev. 2009). Such public access ?inherently promotes public scrutiny of the judicial process,? which in turn ?enhances both the fairness of . . . and the public con?dence in? our justice system. Id., citing Forum Communications 12. Paulson, 752 177, 181 (ND. 2008). To overcome this presumption of openness, a litigant under Nevada law must identify a compelling privacy or safety interest that outweighs the public interest in access to the court record. Jones v. Nev. Comm 'n on Judicial Discipline, 318 P.3d 1078, 1085 (Nev. 2014). Supreme Court Rule 3 provides procedures for sealing court records or documents in civil cases. It states that when a motion is made to seal, the information to be sealed remains con?dential for a reasonable period until the court determines whether appropriate grounds eXist for sealing the records. See SRCR 3. Courts may only seal their records or documents when the sealing is "justi?ed by identified compelling privacy or safety interests that outweigh the public interest in access to the court record." SRCR 3(4) This presumption favoring public access to judicial records and documents is only overcome when the party requesting the sealing of a record or document demonstrates that "the public right of access is outweighed by a signi?cant competing interest.? Howard 12. State, 128 Nev. 291 P.3d 137, 142 (2012) (discussing SRCR 3). 318 P.3d at 1085. ll Further, if a court ?nds such a compelling interest, any sealing order must require the least restrictive means and duration. Charles V. Second Judicial Dist. Court ofNev., 2014 Nev. Unpub. LEXIS 1035, *1 (Nev. 2014), citing Howard, 291 P.3d at 142-143. C. Because the Vickers Reports Involve Information Concerning Possible Corruption in Nevada?s Gaming Industry, the Public Interest Value of Unsealing this Material is Particularly Crucial. Because of the unique nature of the gaming industry in Nevada, public scrutiny and transparency are necessary to avoid any possible taint or suggestion of corruption. The purpose of this public interest is ?to protect the public health, safety, morals, good order and general welfare of the inhabitants of the State of Nevada, and to preserve the competitive economy and the policies of free competition of the State of Nevada.? State v. Rosentnai, 93 Nev. 36, 43, 559 P.2d 830, 834 (1977). Further, ?gaming is a privilege conferred by the state and does not carry with it the rights inherent in useful trades and occupations.? Id. at 44, citing State ex rel. Grimes v. Board, 53 Nev. 364, 1 P.2d 570 (1931); Dunn v. Tax Commission, 67 Nev. 173, 216 P.2d 985 (1950). The vital necessity of public con?dence in the integrity of those who operate gaming establishments in Nevada is explicitly stated in NRS 463.0129. NRS 463.0129 Public policy of state concerning gaming; license or approval revocable privilege. 1. The Legislature hereby ?nds, and declares to be the public policy of this state, that: The gaming industry is vitally important to the economy of the State and the general welfare of the inhabitants. The continued growth and success of gaming is dependent upon public con?dence and trust that licensed gaming and the manufacture, sale and distribution of gaming devices and associated equipment are conducted honestly and competitively, that establishments which hold restricted and nonrestricted licenses where gaming is conducted and where gambling devices are operated do not unduly impact the quality of life enjoyed by residents of the surrounding neighborhoods, that the rights of the creditors of licensees are protected and that gaming is free from criminal and corruptive elements. 12 Thus, strong public interest in unsealing the Vickers Reports is undeniable. The Reports address possible corruption involving Nevada gaming licensees. Both the Legislature and the Nevada Supreme Court have unequivocally designated avoidance of corruption in the gaming industry as of paramount public interest. Yet, a party wishing to keep certain documents under seal can still overcome the public interest by showing ?compelling privacy or safety interest that outweigh the public interest in access to the court record.? Jones, supra. D. None of the Named Parties Have Justi?ed Denying Public Access to the Vicker Reports. In Howard, supra, the Nevada Supreme Court set forth examples of court records that may be properly sealed by the Court. The list includes: records containing privileged attomey?client communications where the privilege has not been waived, records containing information that is permitted or required under federal or Nevada law to be sealed, and records containing information the sealing of which is justi?ed or required by an identi?ed signif1cant competing interest. Howard, 291 P.3d atl43. No assertion has been made that the Vickers Reports fall into any of these categories. Instead, here, Defendant Las Vegas Sands has followed its near universal practice of seeking to bar public access to judicial proceedings in which it is a litigant, but has offered no real justi?cation compelling or otherwise to justify withholding the Vickers Reports from public view.2 In Defendants? November 26, 2014 Motion to Designate the Vickers Reports as Highly Conf1dential Documents, nowhere does it discuss, mention or even acknowledge the public 2 It is quite likely other documents also under seal would be of significant public interest and we urge the Court to unseal all exhibits except where a party has established a compelling need for continued secrecy. l3 \10interest standard for unsealing documents. Instead, their argument relies virtually entirely on the con?dentiality agreement between the parties. Yet, parties to a case cannot override the public policy implications of the Supreme Court?s presumption of openness, simply because they choose to litigate in private. Their private agreements cannot trump important public policy considerations, as expressed in Howard and Jones. Similarly, on page 2 of Defendants? January 5, 2015 Request for an Evidentiary Hearing, they list what they view as the only three salient questions for the Court concerning the Vickers Reports. 1) Who commissioned each of the three Vickers' Reports; 2) The purpose for which each report was commissioned; and 3) Whether any of the Reports is relevant to jurisdiction over SCL. Nowhere was there any mention of whether there is any private interest overriding the powerful public interest in favor of disclosure. Also, it should be noted that whether or not the Vickers Reports are relevant to jurisdiction is not a question that goes to the issue of whether there is any basis to alter the presumption that disclosure is in the public interest. By contrast, the public interest in how public corporations operate and the role of the profits they generate in public elections overwhelms any dz' mim?mz?s interest in secrecy. For years allegations of criminality and ties to the powerful Chinese triads have surrounded Mr. Adelson?s Macau gambling operation. At the same time, it is his Macau casinos that have so greatly enriched Mr. Adelson, providing him the ability to yield control through the payment of campaign contributions over a signi?cant segment of the political system. Mr. Adelson?s alleged close ties to illegal and corrupt foreign practices raise very serious and credible questions, not only about possible corruption in the Nevada gaming industry, but also about whether those practices have financed his campaign activities and whether he has used the 14 \10anonymity of campaign contributions to launder illegally obtained foreign funds. The Vickers Reports will shed light on these questions and inform the significant public interests at stake. Accordingly, they should be unsealed and open to the public given the strong public interest in disclosure and the complete absence of any ?clearly articulated and compelling reason? to keep the Vickers Reports under seal. Katzmarz v. Victoria ?5 Secret Catalogue, 923 F. Supp. 580, 588 (S.D.N.Y. 1996). IV. CONCLUSION The presumption of openness afforded our judicial proceedings must be zealously protected and can be overcome only by the most compelling need for secrecy with no reasonable alternative available. Press-Enterprise Co. v. Superior Court, 478 U.S. 1, 13-14 (1986). Accordingly, Campaign for Accountability respectfully requests that this Court grant this application to intervene and unseal Exhibit 1100, the Vickers Reports. In the alternative, should the Court so choose, requests that this Motion be treated as an Amicus brief and Motion for Leave to ?le an Amicus Brief. Dated this 8th day of June 2015 Respectfully submitted by: Allen Lichtenstein Allen Lichtenstein Nevada Bar No. :3992 3315Russell Road, No. 222 Las Vegas, NV 89120 (702) 433-2666 phone (702) 433-9591 fax allaw@lvcoxmail.com Attorney for Proposed Intervenors, Campaign for Accountability 15 CERTIFICATE OF SERVICE I hereby certify that on June 8, 2015, I served all parties in the above titled case with the foregoing Motion to Intervene, via the Court?s electronic ?ling and service system, and/ or the United States Mail, addressed to the following: \10James Pianelli, Esq. Pisanelli Bice, PLLC 400 S. 7th Street Suite 300 Las Vegas, NV 89101 J. Stephan Peek, Esq. Holland and Hart 9555 Hillwood Drive 2nd Floor Las Vegas, NV 89134 Steven L. Morris, Esq. Morris Legal Group 300 South Fourth Street Las Vegas, NV 89101 Jon Randall Jones, Esq. Kemp, Jones Coulthard, LLP Wells Fargo Tower 3800 Howard Hughes Parkway Seventeenth Floor Las Vegas, Nevada 89169 David J. Merrill, Esq David J. Merrill P.C. 10161 Park Run Drive, Suite 150 Las Vegas, NV 89145 Allen Lichtenstein l6