By: Eastern Eye
The Colorado Division of Securities has accused the proprietors of ‘Bombay Clay Oven’ and ‘Saucy Bombay’, two Indian restaurants in Colorado, of defrauding investors of $380,000. The Bombay Group, which owned the restaurants, allegedly used “half-truths and lies” to convince investors to finance their plans for nationwide expansion. State regulators are now seeking to recover the amount from the owners.
US media reports suggest that the alleged fraudulent owners spent the investors’ money on rent, operating costs, and Ponzi-like payments. The restaurants had enlisted securities broker Michael Bissonnette, but both defendants declined to comment on the allegations when approached by US media.
In 2014, The Bombay Group managed Bombay Clay Oven, an established restaurant with over two decades of operation, and Saucy Bombay, a new venture located in a food court. The group intended to franchise Saucy Bombay to capitalize on the fast-casual dining trend.
Tung Chan, the state’s securities commissioner, emphasized, “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.”
