Documents detail coverup at Fontainebleau Las Vegas

8 Feb, 2012

Vegas Inc reports on new documents that show developers hid cost overruns on the stalled Fontainebleau Las Vegas development. Investors holding $700 million in debt on the property are suing the general contractor; Memos from general contractor Turnberry West Construction show executives manipulated cost estimates to hide an alleged $450 million overrun in construction costs. Owner Jeff Soffer and other executives, according to the documents, manipulated estimates to receive larger loans over a period of close to 18 months. Work on the hotel and casino ceased in 2009, and Carl Icahn acquired the property out of bankruptcy.