Bombay Clay Oven and Saucy Bombay, two Indian restaurants in Colorado, have been accused of defrauding investors out of $380,000 (approximately ₹3.16 crores) by using deceptive tactics, including "half-truths and lies," to attract investment for a planned national expansion.
Both establishments were managed by The Bombay Group (TBG), which had partnered with securities broker Michael Bissonnette.
TBG aimed to transform their business into a national chain potentially consisting of hundreds or even thousands of outlets, focusing on franchising Saucy Bombay to tap into the growing trend of fast-casual dining.
"The investors were genuinely enthusiastic about The Bombay Group and their restaurant, Saucy Bombay," stated Tung Chan, the state's securities commissioner. "However, as alleged, they were deceived about the nature of their investments and have yet to see any returns."
The lawsuit claims that TBG’s owners, Marshall and Rohini Miranda, along with Bissonnette, misrepresented the investment as a secure and profitable venture, promising extraordinarily high returns of up to 2,900 percent quarterly.
Despite these assurances, Saucy Bombay's only location closed by the end of 2015, a fact not disclosed to the investors. Even after the closure, funds allegedly continued to be funneled into TBG for operational costs, rent, and self-commissions related to stock sales throughout 2015 and 2016.
By the end of 2016, the invested funds had significantly depleted, with no financial returns delivered to the investors. Although a new Saucy Bombay location opened in 2018, it remained the only outlet, and the extensive franchising plans never came to fruition.
