By: Eastern Eye
The Colorado Division of Securities has alleged that the owners of two Indian restaurants in Colorado, ‘Bombay Clay Oven’ and ‘Saucy Bombay’, defrauded investors of $380,000. The Bombay Group, which owned the restaurants, is accused of using “half-truths and lies” to lure investors into schemes of nationwide expansion. The state regulators are now seeking to recover the amount from the owners.
According to US media reports, the alleged fraudulent owners spent the investors’ money on rent, operating costs, and Ponzi-like payments. The restaurants had agreed with securities broker Michael Bissonnette, but both defendants declined to comment on the allegations when approached by US media.
In 2014, The Bombay Group managed two restaurants: Bombay Clay Oven, which had been in operation for over two decades, and Saucy Bombay, a new venture located in a food court. The group’s strategy involved franchising Saucy Bombay to tap into the fast-casual dining trend.
Tung Chan, the state’s securities commissioner, stated, “The investors in this case truly had faith in The Bombay Group and its restaurant, Saucy Bombay. But as we allege, the investors were not told the truth about the investments, and they have not been paid back. If you have invested with The Bombay Group, please contact the Securities Division right away.”
