Two Indian Restaurants in Colorado Swindled Investors Out of $380,000, Say Officials

The Colorado Division of Securities has filed a lawsuit alleging that the owners of Indian restaurants Bombay Clay Oven and Saucy Bombay used deceptive tactics to sell investors on plans for a nationwide expansion. The shareholders had invested $380,000, which the owners allegedly spent on rent, operating costs, and Ponzi-like payments, according to local newspaper “BusinessDen.” The two restaurants were owned by The Bombay Group (TBG), which had partnered with securities broker Michael Bissonnette. Both defendants declined to discuss the allegations with “BusinessDen.”

TBG had ambitious plans to expand its business into a nationwide conglomerate, joining the ranks of hundreds or even thousands of locations in the restaurant industry. In 2014, TBG operated two restaurants: Bombay Clay Oven, an established location with over two decades of operation, and Saucy Bombay, a new venture situated in a food court. TBG intended to franchise Saucy Bombay to capitalize on the fast-casual restaurant trend, as stated in the lawsuit. According to Tung Chan, the state’s securities commissioner, the investors had a strong belief in The Bombay Group and the potential of Saucy Bombay.

However, as alleged, they were not provided with truthful information about the investments and have not received their payments. He advised those who have invested with The Bombay Group to contact the Securities Division immediately. *The story has not been edited by NDTV staff and is published from a syndicated feed. *