Washington:

Two Indian eating places in Colorado have duped traders to the tune of USD 380,000, state regulators have alleged and at the moment are searching 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 traders 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 2 eating places had been owned by The Bombay Group (TBG), which entered into an settlement with securities dealer Michael Bissonnette. Each defendants declined presents to debate the allegations with “BusinessDen”, the day by day reported.

Like many within the restaurant trade, TBG had grand plans to broaden its enterprise right into a nationwide conglomerate, with a whole bunch and even hundreds of areas. 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 court docket.

TBG’s plan was to franchise Saucy Bombay in an effort to capitalise on the fast-casual restaurant pattern, the lawsuit stated.

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

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