Russian gambling zone partner arrested

Oleg Drozdov who is a minority shareholder in the planned casino resort with Lawrence Ho in the Primorye gaming project has been arrested over allegations of malpractice in an unrelated case involving a solid waste scheme.

Summit Ascent Holdings Ltd which is the company controlled by Lawrence Ho the co-CEO of Melco Crown Entertainment in Macau made a statement to the Hong Kong stock exchange confirming that an indirect partner in a Russian casino project has been arrested by police in that country.

The charges against Mr Drozdov were reported in a local Russian newspaper on the 7^th November saying, Oleg Drozdov had been detained for investigation by Russian law enforcement. It’s reportedly regarding alleged malpractices by a business called OOO Vladivostokservis and relates to the construction of a solid waste treatment facility in Vladivostok in the Russian Far East. The malpractice involves some $11 million in construction fees when Mr Drozdov served a director of the firm.

Mr Ho’s company Summit Ascent said that the investigation into Mr Drozdov “does not relate, in any way, to the Primorye gaming project or to Oriental Regent or FGCE [First Gambling Company of the Far East]”. Summit Ascent added the investigation was in progress and no charges had so far been made against Mr Drozdov.
The company continued by saying: “The company has also received direct assurances from Mr Sidorov, first vice governor of the Primorsky Administration, which administers the Gambling Zone of the Primorye Region, that the investigation and allegations relating to Mr Drozdov will not, in any way, affect the Primorye Gaming Project or the company’s investment in the Primorye Gaming Zone.”