Builder of $1.5 billion Venetian megaresort fires back at accuser

Thursday, March 18, 1999 | 11:17 a.m.

The company managing construction of the massive Venetian hotel-casino has filed a counterclaim against an ex-employee who accused it of wrongdoing.

Lehrer McGovern Bovis Inc. said John Prendeville demanded the company pay him $6.8 million in exchange for his "silence" about alleged bid-rigging, kickbacks and other activities in the Venetian project.

When LMB declined, Prendeville filed a suit in federal court and contacted lenders and subcontractors involved in the Venetian "in an effort to sabotage LMB's business relationships," according to documents filed in federal court Wednesday.

Prendeville could not be reached for comment today, but he has previously denied that he tried to extort money from LMB. He said he has provided information about alleged activities on the work site to various agencies after LMB and Venetian officials refused to correct problems.

The LMB complaint said Prendeville also contacted the Clark County Building Department "referring to the Venetian project as a fire trap" and claiming hazardous conditions on the work site.

County building inspectors issued a correction notice to The Venetian last week ordering that it prove walls built outside Uniform Building Code guidelines are safe. They attributed their concerns to information provided by Prendeville.