Actress Eva Longoria is now being sued. The lawsuit is being brought by a business associate. Longoria has been accused of usury – charging an excessive amount of interest. The state of Nevada is handling the bankruptcy case of the restaurant. The suit against Longoria has been filed in California. personal loan|She is making sure that nothing forces her to live off of payday cash loans|She is making sure that nothing forces her to live off of a payday loan. Source of article – Eva Longoria sued under usury laws, Nevada bankruptcy proceeds by MoneyBlogNewz}.
Beso facing bankruptcy now
Beso, the restaurant and bar owned and operated by actress Eva Longoria, has filed for bankruptcy. Though the gross profit of the restaurant was $14.6 million, it was losing about $76,000 a month. The bankruptcy filings, intended to protect the $2.5 million in assets, named Eva Longoria as a creditor who owed quite a bit of money. All debts owed by the restaurant may be restructured. This is what the Reno, Nevada, court is trying to do. The restaurant may close at any time though even though it is expected to stay open while its debts and assets are being sorted out.
Eva Longoria sued for usury
In an attempt to keep Beso up and running, Eva Longoria provided a $1 million loan to the managers of the restaurant. There were extensive terms for repayment added to the short-term loan. Eight percent of the loan and a 23.33 percent stake in the company was what the business had to pay. The managers agreed to these terms in order to get the emergency money they needed to keep the restaurant running. Later the managers, upon reading the California state rules on usury, decided they had been charged too much and filed a lawsuit.
What Longoria's investment got her
Only $1 million was invested into the company by Eva Longoria. Then, she got $4.6 million back in interest from Beso. This $4.6 million racked up in just two years, putting the annual percentage rates above 200 percent. If Longoria is found guilty of usury for acting as a loan lender, then she could be ordered to pay back the full $4.6 million she has received in interest payments for the loan.
Citations
CTV.CA
ctv.ca/CTVNews/Entertainment/20110110/eva-longoria-restaurant-bankruptcy-110110/
Third Age
thirdage.com/news/eva-longoria-sued-actress-eva-longoria-sued-4-million_1-11-2011
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