Authorities in Colorado have accused two American franchises of defrauding investors of$ 380,00, and they are now pursuing legal actions to recover the sum.
Delhi Clay Oven and Saucy Bombay, two American restaurants, have been sued by the Colorado section of securities. The users, who are businesses under The Delhi Group ( TBG), are accused of using “half-truths and lies” to urge investors to fund their ambitious plans for a global growth, according to the lawsuit. But, the invested funds were reportedly spent on hire, operating costs, and Ponzi- like payments, local news BusinessDen reported.
Both accused declined to comment on the allegations when contacted, according to Business Den, because TBG and securities agent Michael Bissonnette had an arrangement. TBG was no exception to the ambitious development plans the restaurant business is known for. In 2014, TBG owned and operated two restaurants: Delhi Clay Oven, a nicely- established cafe with over two decades of activity, and Saucy Bombay, a fresh endeavor located in a food court.
According to the petition, TBG’s intention was to brand Saucy Bombay in order to capitalize on the fast-casual restaurant trend. Tung Chan, the state’s assets director, told the paper,” The buyers in this case actually believed in The Bombay Group and their cafe, Saucy Bombay”. He continued,” But as we allege, the investors were not informed of the investments ‘ true nature and have not been reimbursed.” Choose call the stocks section right away if you have invested with The Bombay Group.
( With inputs from agencies )
