Mayoral candidate city Rep. Isabel Salcido loaned her campaign $100,000 after defaulting on six-figure business loan
by Elida S. Perez, El Paso Matters
September 10, 2024
As city Rep. Isabel Salcido gears up for her Nov. 5 mayoral race, she loaned her campaign $100,000 even as she faces a court judgment of more than $200,000 over an unpaid debt in Harris County.
Hitesh Amin sued Salcido in Harris County in September 2021 over a $118,000 loan he gave her in August 2017 for the purchase of “a business with various equipment” under 2539 Preston LLC, for which Salcido is one of the managing members, court documents show.
Salcido never responded to the lawsuit and Amin won a default judgment in 2022 for $120,523 in principal and interest and $52,511 in legal costs. The court order includes an 18% annual interest rate for unpaid debt, so Salcido now owes more than $200,000 to Amin.
Court records show Amin has begun a process to seize an El Paso commercial property owned by Salcido as payment for the debt.
Salcido initially agreed to an interview with El Paso Matters, but didn’t follow through, instead sending text messages.
Salcido resigned her District 5 seat that covers far East El Paso mostly east of Loop 375 on Aug. 15 when she entered the crowded mayoral race. She was serving her second term that was not set to expire until January 2027. She took office in 2019 and was re-elected in November 2022. The debt doesn’t impact Salcido’s eligibility to hold office; she would only be ineligible to be sworn into office if she were indebted to the city of E
In text messages, Salcido said she purchased a boxed juice manufacturing company in Harris County and that 2539 Preston LLC was a manufacturing company that produced boxed juice for restaurants and bars.
She said her business portfolio was 80% in hospitality and 20% in real estate, but she hit financial struggles when the COVID-19 pandemic shut down businesses such as restaurants and bars.
“Like many others, I felt the weight of the crisis,” she said.
She said when Gov. Greg Abbott ordered Texas restaurants and bars to close in June 2020 due to COVID-19, it made it nearly impossible to sustain operations and meet her financial obligations.
“I reached out to all my creditors, and while some were understanding and willing to work with me, others took more drastic measures, even pursuing lawsuits,” Salcido said. “I was among the many business owners who applied for federal relief, only to see the portal close before receiving any assistance.”
Amin alleged that Salcido and the LLC “failed and refuses to pay” the monthly $987 payments on the loan and was seeking $250,000 in monetary damages.
Attorneys representing Amin could not be reached for comment.
The lawsuit alleged that Salcido, who signed a personal guarantee for the loan, had not made any payments on the loan since October 2020 and had missed 12 payments by the time the lawsuit was filed in September 2021, court documents show.
In March 2022, a Harris County judge granted Amin a judgment of default against Salcido, finding her liable for the principal, interest and legal fees.
Salcido said she did not respond to the lawsuit or attend court because she “did not receive proper notifications about the lawsuit.”
Harris County court records show that notice of the lawsuit was served on the Austin-based registered agent for 2539 Preston LLC in September 2021, and sent by registered mail to Salcido’s El Paso home in December 2021. The mail was sent after several unsuccessful attempts to serve the notice in person at her home.
Salcido said she has hired attorney Cynthia Canales from the Gordon, Davis, Johnson & Shane PC firm and plans to appeal. Harris County court records show no record of an appeal, or any entry of an attorney on behalf of Salcido or her LLC.
When asked why she loaned her mayoral campaign $100,000 rather than use the money to repay the loan from Amin, Salcido said: “Why would I pay an amount that is incorrect?”
Salcido added that she does not know what the exact amount is that she still owed, but disagrees with the amount stated in the judgment.
A promissory note filed with the Harris County court showed that 2539 Preston LLC borrowed $118,000 in August 2017 from Amin, who lives in Pasadena, Texas. The 20-year loan carried an 8% interest rate, with $987 monthly payments.
Salcido signed a personal guarantee in August 2017 to repay the loan.
At the time of the lawsuit filing in September 2021, the LLC and Salcido owed $108,362.84 in unpaid principal and $8,452.08 in overdue interest payments, with interest accumulating at $24.08 per day, according to an affidavit Amin provided the court.
The Harris County judge ruled that Salcido would have to pay an additional $7,500 in attorney fees if she appeals the decision to an appellate court, and another $7,500 if she appeals to the Texas Supreme Court.
On Aug. 7, attorneys representing Amin filed a request with the Harris County judge for a writ of execution with the El Paso County Sheriff’s Office to seize Salcido’s property at 520 W. Franklin Ave. near Downtown El Paso as payment for the debt. The judge has not yet responded to the request.
The race for mayor has drawn a crowded field of eight candidates. Mayor Oscar Leeser has served two terms and cannot seek reelection. City Reps. Cassandra Hernandez, Brian Kennedy and Salcido are running for mayor. Kennedy and Salcido both resigned to run with at least two years left on their terms.
Also running for the seat are Elizabeth Cordova, a magazine owner; Steven B. Winters, an Army retiree; Marco Antonio Contreras, a restaurant owner; and businessman Renard U. Johnson.
This article first appeared on El Paso Matters and is republished here under a Creative Commons license.
