2 Russian business who invested $1 million into Star Island, the holding company which owned the Mansion nightclub in South Beach, have sued Justin Levine and Keith Menin and additional companies tied to Menin accusing them of defrauding the investors. According to a Miami Herald article, Levine and Menin substantially understated the club’s debt load and have not repaid a $500,000 loan from the Russians. Also they are claiming the revenue projections were false (editor’s note – there typically are multiple disclaimers in a club investment prospectus stating projections are just that and not guarantees). Lastly the investors were interested in the deal based on a planned renovation and relaunching of a new club at the Mansion site.
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