The proprietors of Toca Madera, a steakhouse on the Las Vegas Strip, are being sued by investors for allegedly mismanaging and using funds for personal luxuries.
The lawsuit lists several allegations, including private securities fraud, aiding and abetting, and a breach of fiduciary duty, along with a RICO charge.
The defendants in the lawsuit are Mahdiar Karamooz, Tosh Berman, and Michael Tanha. The suit claims these individuals “intentionally and systematically defrauded” investors through various complex schemes.
It is alleged that they also redirected funds from other restaurants they owned, leaving those establishments to bear the operational costs, resulting in losses for investors.
These other restaurants are situated in Los Angeles, Arizona, and Florida.
Karamooz allegedly sent tampered financial reports to investors to mask the excessive spending by Berman and Tanha.
In a post, Las Vegas Locally reported on the group’s personal purchases, which included multiple engagement rings.
The lawsuit states Berman and Tanha spent funds on acquiring properties, such as a ranch in Aspen, which cost $100,000 to furnish, and a $5 million house in Miami. They also allegedly covered half the cost of a $25,000 rental on Miami’s coast.
They reportedly purchased several sports cars, including a Ferrari and a Maybach SUV, and spent several hundred thousand dollars on a luxury wakeboard boat.
Plane tickets were among the purchases made with misused funds, with OnlyFans models flown in for restaurant openings, or for trips to Europe, Australia, and Dubai.
Additional claims by investors suggest embezzlement from various deals.
The men worked with InDeal, which pays establishments to promote discounts to customers. They received $3 million for the deal, which they retained while using investor funds to cover the discounts.
Additionally, when renting out Toca Madera for two Super Bowls, they allegedly deceived investors about the amounts received and kept the excess.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com