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 in search of to recuperate the quantity from them.

In a lawsuit, the Colorado Division of Securities has alleged that the homeowners 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 growth 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 2 eating places have been owned by The Bombay Group (TBG), which entered into an settlement with securities dealer Michael Bissonnette. Each defendants declined gives 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 hundreds of places. In 2014, TBG owned and operated two eating places: Bombay Clay Oven, a restaurant that had operated for greater than twenty 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 development, the lawsuit mentioned.

“The buyers on this case actually believed in The Bombay Group and their restaurant, Saucy Bombay,” Tung Chan, the state’s securities commissioner informed the newspaper. “However as we allege, the buyers weren’t informed the reality concerning the investments they usually haven’t been paid again. If in case you have invested with The Bombay Group, please contact the Securities Division straight away,” he mentioned. 

(Apart from the headline, this story has not been edited by NDTV employees and is printed from a syndicated feed.)