Two Indian Restaurants Scam Investors Out of $3 Million in the US

The Bombay Group (TBG) operated two restaurants and had ambitions of expanding their business. They aimed to grow into a national chain by franchising their newer venture, Saucy Bombay, to take advantage of the fast-casual dining trend. However, a lawsuit alleges that TBG’s owners and a securities broker misled investors into believing their investment was secure and lucrative.

The plan promised high quarterly dividends, but the sole location of Saucy Bombay closed by the end of 2015 without the investors’ knowledge. Money continued to flow into TBG’s accounts in 2015 and 2016, allegedly used for operational expenses, rent, and self-commissions for selling its own stock. But by the end of 2016, the invested capital had decreased, and the promised returns did not materialize.

Despite a new Saucy Bombay location opening in 2018, it remained the only outpost, and the franchising plans failed. When contacted for comment, both the securities broker and TBG’s owner declined to speak. According to the lawsuit, the investors were not informed about the true state of the investments and had not been repaid.

The state’s securities commissioner stated that the investors had faith in The Bombay Group and Saucy Bombay, but alleged that they were not told the truth about their investments.