How Two Indian Restaurants In the US Deceived Investors Out of ₹3 Crore
Two Indian restaurants in the US state of Colorado, Bombay Clay Oven and Saucy Bombay, have been charged with stealing $380,000, or ₹ 3,16,56,926, from investors through the use of dishonest strategies, such as “half-truths and lies,” in order to entice them to invest in their grandiose plans for a national expansion. The Bombay Group (TBG), in partnership with Michael Bissonnette, a financial dealer, owned both restaurants.
TBG had dreams of growing their company into a nationwide chain with hundreds or perhaps thousands of locations, much like many other players in the very competitive US restaurant market. Using Saucy Bombay as a model, they franchised the latter to profit from the fast-casual eating style that is rapidly gaining popularity.
The state’s securities commissioner, Tung Chan, said, “The investors in this case really believed in The Bombay Group and their restaurant, Saucy Bombay.” “But as we allege, the investors were not told the truth about the investments and they have not been paid back.”
According to the complaint, Bissonnette, Marshall, and Rohini Miranda, the proprietors of TBG, deceived investors by representing their investment as a safe and profitable venture. According to reports, the scheme promised significant profits, with quarterly payouts of up to 2,900 percent.
Unknown to the investors, the one and only Saucy Bombay store shuttered its doors at the end of 2015, despite the assurances made. Throughout 2015 and 2016, money reportedly went into TBG’s operations costs, rent, and even self-commissions for selling its own shares, despite the company closing.
The invested cash had decreased by the end of 2016, and the investors had received no returns. Despite the opening of a second facility in Saucy Bombay in 2018, it remained the only outpost, and the ambitious intentions for franchising did not come to pass.
Bissonnette and Marshall Miranda declined to respond when approached by the local media for an interview.
