How These Restaurants Duped Investors of $380,000 With Fake Promises of Lucrative Expansion

Two Indian restaurants based out of Colorado, Bombay Clay Oven, and Saucy Bombay, located in Colorado in the United States, have been accused of defrauding investors of $380,000. In the lawsuit, the Colorado Division of Securities has alleged that the eateries used "half-truths and lies" to sell investors on their grand plans for a nationwide expansion before spending the  USD 380,000 that shareholders invested on rent, operating costs, and Ponzi-like payments, local newspaper "BusinessDen." As per reports, both restaurants were owned by The Bombay Group (TBG) which had plans to expand at an ambitious rate. TBG wanted to do so by franchising Sauscy Bombay to use the fast-casual restaurant trend to their advantage. 

"The investors in this case believed in The Bombay Group and their restaurant, Saucy Bombay," the state's securities commissioner Tung Chan told NDTV World. "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 said.

The lawsuit claimed that the owners of TBG, Marshall and Rohini Miranda and Bossinnette, misrepresented the investment as a secure and profitable venture, promising returns as high as 2,900% quarterly. The lawsuit also talked about how Saucy Bombay's only location shut down by the end of 2015 which was something the investors were alien of. Even after the restaurant was shut, funds allegedly continued to be funneled into TBG for rent, operational costs, and other self-commissions related to stock sales. The funds were depleting at full tilt and were over by 2016. Saucy Bombay went on to open a new restaurant however no sign of expansion was to be seen.

Bombay Clay Oven had been in the business for over two decades until 2019. The Mirandas first opened Bombay Clay Oven back in 1993 in Highlands Ranch before moving the restaurant to Cherry Creek in 1997. The restaurant which had been a part of Cheery Creek scenery since 1997 shut down back in 2019.

"Thank you all for 22 wonderful years of support and memories. After 22 years in Cherry Creek North, we have closed our restaurant in Cherry Creek," the restaurant wrote on the website. At the time, it also said that they were still delivering food online, through Doordash, Postmates, Ubereats, or Grubhub.

Saucy Bombay later opened across the street from East High School back in 2016 and offered a quick service version of the Mirandas many from Bombay Clay Oven. "It felt like a good fit, with the Tattered Cover next door and [East High School] across the street," Rohini Miranda told Westword at the time.

The Saucy Bombay included a range of Indian classics served as wraps, bowls as well as plates with choices of vegetables as well as meat. "You can get a meal for about $10 in under three minutes," Marshall said at the time.  The Saucy Bombay ran on this connect for more than five years before moving to the Cherry Creek North neighborhood. The fate of the restaurants and their owners is yet to unfold.