The Bombay Group owned two restaurants in Colorado, ‘Bombay Clay Oven’ and ‘Saucy Bombay’, which defrauded investors of $380,000. The US state regulators have alleged this and are now seeking to recover the amount from them.
The alleged fraudulent restaurant owners sold grandiose schemes of nationwide expansion before spending the amount that shareholders invested on rent, operating costs and Ponzi-like payments, as reported by US media.
The two restaurants had agreed with securities broker Michael Bissonnette. Both defendants declined to comment on the allegations when approached by US media.
The Bombay Group (TBG), like many in the restaurant industry, harbored ambitions of expanding its operations into a nationwide conglomerate, envisioning hundreds or even thousands of locations.
In 2014, TBG managed two restaurants: Bombay Clay Oven, an establishment with over two decades of operation, and Saucy Bombay, a new venture located in a food court.
TBG’s strategy involved franchising Saucy Bombay to tap into the growing trend of fast-casual dining, as outlined in the lawsuit.
Tung Chan, the state’s securities commissioner, noted, “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.”
