Gaming tycoon in Israeli fraud trial - Monday 12th of September 2005
THE gaming tycoon who plans to convert Londons Olympia exhibition centre into the capitals first super-casino along with US entertainments giant MGM Mirage, faces trial in Israel this week on numerous fraud charges.
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Ian Nigel Davis, whose R J Bown (Holdings) includes the Westcliff Casino in Westcliff-on-Sea, Essex, and Bristols Triangle Club in its portfolio, is accused of obtaining property by deception and 23 instances of false accounting.
Davis, who also owns the Seashell restaurant in Marylebone, central London, could face seven years in jail if found guilty of the charges brought by Israels Securities Authority.
The charges relate to management fees paid to Investment in Industry, known in Israel as 3i, a Davis vehicle that held a stake in Israeli steel firm, Middle East Tube. Investment in Industry, chaired by Avraham Burg, has nothing to do with 3i, the UK FTSE 100 venture capital group, formerly known as Investors in Industry.
Davis is also accused of concealing the true ownership of shares by using a friend as a frontman. Last week, he was said to be incommunicado - travelling in the desert. But a source close to him said he denied all the charges.
This would not even be a criminal case in the UK, the source said. It is a business dispute that has got out of hand.
The source also suggested that under Israeli law such disputes could not be settled in the civil courts.
Daviss most high-profile project in the UK is a scheme to turn Olympia in west London into a super-casino in partnership with MGM Mirage.
Last November, the Americans bought a 25% stake in Bown subsidiary Metro Casinos, the unit that directly controls the Bristol gaming club.
MGM Mirage is one of the biggest casino operators in the world, with a string of massive resort-style hotel casinos in Las Vegas and elsewhere. Its operations include New York New York, The Excalibur and the pyramid-shaped Luxor.
A spokesman for MGM, which is understood to have held extensive discussions with Earls Court exhibition centre and Olympia, told Financial Mail that it was aware of the allegations against Davis.
There is no other action contemplated at this time until the outcome of the allegations is known, he said. Alan Feldman, senior vice-president of MGM Mirage, said his companys interest in developing Olympia did not involve Davis or the R J Bown company directly.
Davis, once chairman of electrical goods firm Stanelco, gives his home address as Bowns company HQ in Hertfordshire. He is also understood to have a multi-million-pound house in Hampstead, northwest London.
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