Officials: Two Indian eateries in Colorado defrauded investors out of USD 380K

Washington: State authorities in Colorado have accused two Indian restaurants of defrauding investors out of USD 380,000, and they are now pursuing recovery of that sum from the establishments.

 

The owners of the Indian restaurants Bombay Clay Oven and Saucy Bombay are accused by the Colorado Division of Securities of using “half-truths and lies” to mislead investors about their ambitious plans for a national expansion. The owners then allegedly spent the USD 380,000 that the investors invested on rent, operating expenses, and Ponzi-like payments, according to a story published in the local newspaper “BusinessDen” on Wednesday.

The Bombay Group (TBG), which made a deal with financial dealer Michael Bissonnette, was the owner of the two eateries. The newspaper said that both defendants turned down invitations to talk with “BusinessDen” about the accusations.

TBG, like many others in the restaurant sector, had ambitious intentions to grow into a national chain with hundreds or perhaps thousands, of sites.

In 2014, TBG was the owner and operator of two eateries: Saucy Bombay, a new venture with a single location in a food court, and Bombay Clay Oven, a restaurant that had been in operation for more than 20 years.

According to the complaint, TBG intended to capitalize on the fast-casual restaurant trend by franchising Saucy Bombay.

“The investors in this case genuinely had faith in The Bombay Group and their eatery, Saucy Bombay,” the state securities commissioner, Tung Chan, said to the publication.

However, as we claim, the investors were misled about the transactions and have not received their money back.

“Please get in touch with the Securities Division immediately if you have invested with The Bombay Group,” he urged.