Photo: Longoria at Beso
The beginning of 2011 is not going as planned for Eva Longoria first her Beso restaurant and nightclub in Las Vegas files for bankruptcy protection now some shareholders are not pleased with her involvement in the deal.
Allegedly Longoria invested $1 million of her own money in the Las Vegas venture, an expansion of her popular California restaurant, yet received yearly 8% interest payments totaling $4.6 million and a 23.33 percent ownership stake. All this happened, the lawsuit alleges, at the expense of other investors, who appear to have had their ownership diminished in order to give Longoria her share.
The lawsuit filed by other investors in the deal say the 8 percent violates California usury law, meaning for what Longoria put in she wasn’t suppose to get that much in interest payments and ownership. The lawsuit is asking that the $4.6 million she earned be put back into the company.
The company meanwhile is $5.7 million in debt, late on its rent and fighting to survive. The bankruptcy filing does not affect the Beso restaurant in Hollywood nor Longoria’s involvement with that site.