A Las Vegas nightclub mogul is suing his former partners in a club located on the Strip over a $700,000 loan he says the partners never repaid. He is seeking nearly $800,000 in damages, which would include the cost of the loan, plus interest and damages.
The nightclub owner, along with his wife, is suing three of their former partners in the Chateau nightclub, which is located at the Paris Hotel & Casino. According to the lawsuit, the plaintiffs agreed to loan the $700,000 to the defendants in June 2011. The loan was to be repaid over two years, with interest payments to total $59,818.50.
However, the lawsuit contends, after the loan was made the defendants sought to make its terms more favorable to them — without the plaintiffs’ permission. They are accused of attaching two notes to the loan that converted it to a pair of 15-year loans that divided the recipient of the money to Chateau and another company. The plaintiffs said they did not consent to the loan modification and described the new loans as being “of inferior quality and terms.”
The nightclub mogul has since left the investment group. He pleaded guilty to tax fraud charges and was sentenced to house arrest and probation, but could receive prison time as a federal judge is reviewing the sentence. The criminal case appears not to be related to the loan dispute.
Besides repayment of the loan, the plaintiffs are seeking more than $30,000 in actual and punitive damages.
Source: Las Vegas Sun, “Ex-nightclub Kingpin sues former partner over $700,000 loan,” Dave Toplikar, Sep. 18, 2012
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