Two Colorado Indian restaurants defrauded investors of $380,000: officials – Times of India

NEW DELHI: Colorado authorities have charged two Indian restaurants with fraud investor $380,000, which they are currently taking legal action to recover.
this Colorado Department of Securities A case was filed against two Indian restaurants, Bombay Clay Oven and Saucy Bombay. The suit alleged that the owners of The Bombay Group (TBG) used “half-truths” to woo investors for their ambitious nationwide expansion plans. However, the invested funds were used to cover rent, operating expenses and, according to local newspaper Businessden, such payments were allegedly used to form a Ponzi scheme.
BusinessDen said TBG reached a settlement with securities broker Michael Bisnett, and both defendants declined to comment on the allegations. The restaurant industry is known for its ambitious expansion plans, and TBG is no exception. As of 2014, TBG owns and operates two restaurants: Bombay Clay Oven (an established restaurant that has been in business for over two decades) and Saucy Bombay (a new restaurant located in the food court).
According to the lawsuit, TBG’s plan was to franchise Saucy Bombay to capitalize on the fast-casual restaurant trend. State Securities Commissioner Tung Chan told the newspaper, “In this case investors believed in Bombay Group and its restaurant Saucy Bombay: “But as we say, investors were not told the truth about the investment.” And if you have invested in Bombay Group, please contact the Securities Department immediately.”
(Based on input from each organization)

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