Two men allege the owner of the now-shuttered Beta Nightclub in LoDo owes them at least $500,000.
According to a lawsuit filed by Bradley Roulier and Michael McCray, the former owners of Beta, the two established an agreement with Hussam Kayali in March 2020 to buy their remaining shares.
Kayali was to pay Roulier and McCray $250,000 each for their shares in Beta Nightclub, and then pay the former owners “certain revenue sharing amounts” monthly, according to the lawsuit.
But the lawsuit alleges those payments were never made.
“By his conduct, Kayali has substantiated that he never had — and still does not have — any intention of paying the amounts owed to plaintiffs under the membership interest redemption agreements,” the lawsuit reads.
Roulier and McCray are also asking that 12 percent interest per year be applied to the $500,000 they are asking from Kayali.
The lawsuit alleges Kayali, who also goes by Valentes Corleons, filed fraudulent tax documents that caused damages to Roulier and McCray. The complaint did not go into detail about what kind of tax documents were filed.
Calls to the attorneys representing McCray and Roulier, as well as an email to Roulier, were not returned on Friday.
Beta’s fate was sealed on Jan. 5 when Department of Excise and Licenses Director Ashley Kilroy stripped the club of its liquor and cabaret licenses.
Kilroy cited various violations, saying Kayali attempted to bribe a law enforcement officer and intimidate them by claiming he was a member of the Sicilian Mafia, and also that Kayali failed to provide adequate security.
Without those licenses, Kayali decided to close the club permanently.
“As a result, Kayali has permanently destroyed Beta’s value,” the lawsuit reads.
Kayali, on the other hand, said it is Roulier and McCray who owe him money. He told BusinessDen that because the owners were in debt and that he paid off liens and wages owed to employees, Kayali believes they could owe him $2 million.
“I have to sue them because I’m in a hole right now because of them,” Kayali told BusinessDen.
Kayali provided documents that show Ticketmaster in July sent him a demand for payment of about $382,000 for using its ticket services, and he said the company is suing him to recover those costs. But Kayali said he’s not the one who entered that agreement. Roulier and McCray did.
Kayali also said he’s planning to move back to Sicily once he’s finished with a case in Denver County Court where Beta is charged with creating a public nuisance.
Kayali sells Cabin real estate sell for same price he paid
Kayali also sold real estate earlier this month.
On Jan. 14, he sold the 5,100-square-foot building at 1919 Blake St., right next to Beta, for $2.5 million, according to public records.
Kayali bought the property, previously home to Falling Rock Tap House, for the same price last summer. He proceeded to open a business called The Cabin Tap House. On New Year’s Day, two people were shot and killed inside the club after a fight broke out.
The buyer in the Jan. 14 deal was R and R LLC. Walid Maaliki of Maaliki Motors was listed as a member of the purchasing entity.
Kayali told BusinessDen that the property sale was in the works before the shooting.
Kayali also transferred Cabin’s liquor and cabaret licenses in November to another owner, but that license has been suspended in the wake of the shooting.
Maaliki said he’s either going to have to resell the building or find a new tenant who can operate with a city license.
“The shooting happened before I purchased the property, and I have to see what the city is going to do,” Maaliki said.