Washington:
Two Indian eating places in Colorado have duped buyers to the tune of USD 380,000, state regulators have alleged and at the moment are looking for to recuperate the quantity from them.
In a lawsuit, the Colorado Division of Securities has alleged that the house owners of Indian eating places Bombay Clay Oven and Saucy Bombay used “half-truths and lies” to promote buyers on their grandiose plans for a nationwide enlargement earlier than spending the USD 380,000 that shareholders invested on lease, working prices and Ponzi-like funds, native newspaper “BusinessDen” reported on Wednesday.
The two eating places have been owned by The Bombay Group (TBG), which entered into an settlement with securities dealer Michael Bissonnette. Both defendants declined presents to debate the allegations with “BusinessDen”, the every day reported.
Like many within the restaurant business, TBG had grand plans to broaden its enterprise right into a nationwide conglomerate, with a whole lot and even 1000’s of places. In 2014, TBG owned and operated two eating places: Bombay Clay Oven, a restaurant that had operated for greater than 20 years, and Saucy Bombay, a brand new endeavour with a single location in a meals courtroom.
TBG’s plan was to franchise Saucy Bombay in an effort to capitalise on the fast-casual restaurant pattern, the lawsuit stated.
“The investors in this case really believed in The Bombay Group and their restaurant, Saucy Bombay,” Tung Chan, the state’s securities commissioner instructed the newspaper. “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,” he stated.Â
(Except for the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)