Fraud by 2 Indian Restaurants in Colorado Costs Investors $380,000, Say Officials

The Colorado Division of Securities has accused the owners of Indian restaurants Bombay Clay Oven and Saucy Bombay of using deception to attract investors for a planned nationwide expansion. According to local newspaper “BusinessDen,” the owners allegedly spent the $380,000 raised from shareholders on rent, operating costs, and Ponzi-like payments.

The restaurants were owned by The Bombay Group (TBG), which had aspirations to expand into a nationwide conglomerate with numerous locations. TBG’s expansion plans included franchising Saucy Bombay to capitalize on the fast-casual restaurant trend.

However, the lawsuit alleges that investors were misled about the investment and have not been repaid. The securities commissioner urged affected investors to contact the Securities Division.

The lawsuit also revealed that TBG had previously operated Bombay Clay Oven for more than two decades, and was venturing into a new endeavor with Saucy Bombay, which had a single location in a food court. The defendants declined to discuss the allegations with “BusinessDen.”

The state’s securities commissioner expressed concern for investors who believed in The Bombay Group and its restaurants, emphasizing that the truth was reportedly withheld from them. This situation has prompted a call for affected investors to reach out to the Securities Division.