Three businessmen are accused of misusing investors’ funds to support their ventures, including the OnlyFans model, and to indulge in lavish lifestyles marked by exotic car purchases and new restaurant openings.
Tosh Berman, Michael Tanya, and Madial Karamuz are known for their upscale restaurant, Casa Madera, in West Hollywood, which is described as offering “traditional Mexican coastal flavors.” It operates out of the Mondrian Los Angeles Hotel on Sunset Boulevard.
Investors claim these individuals “deliberately and systematically defrauded” them multiple times, diverting funds from several restaurant locations in Arizona, Nevada, and Florida. These investors are part of Madera Group Investments and Madera Group Holdings, which collectively manage funds for investment opportunities.
The complaint outlines how this group engaged in a “complex fraudulent scheme,” allegedly redirecting substantial profits earned from their restaurant operations while transferring expenses back to the restaurants and onto the investors.
Berman and Tanya reportedly squandered the money on extravagant items, such as plane tickets for the OnlyFans model and other guests to attend events, a $5 million residence in Miami, a ranch in Aspen, and high-end vehicles including a Ferrari and a Maybach SUV.
The lawsuit highlights their global travel habits, detailing trips to places like Europe, Australia, and Dubai, which were described as costly and extravagant.
Upon learning about these lavish purchases, Karamuz allegedly manipulated financial documents to conceal the spending.
Investors assert the trio has misappropriated extra funds from restaurant revenues, leaving them financially strained. They allege various forms of embezzlement, including $3 million taken from Inkind, a company offering restaurant discounts.
Instead of using these funds to mitigate financial losses from Inkind credits, the individuals reportedly kept the money and passed the financial burden onto the investors.
They also allegedly misrepresented rental fees for hosting events at Toca Madera Las Vegas for the Super Bowls LVII and LVIII. Initially, the rental contract was for $1.3 million, but they informed investors they would receive only $600,000, keeping the difference for themselves.
During the Super Bowl in February 2024, they reputedly received a similar rental fee, again pocketing an undisclosed sum.
Investors sought financial transparency from the trio in May 2024 but were denied access. Upon making a second request, Toca Madera Scottsdale sued the investors, claiming that some had transferred their shares to third parties against the operating agreement; however, the investors disputed this allegation.
The Scottsdale branch provided some records intending to satisfy investor concerns, but the investors deemed this insufficient. Ongoing discussions between the investors and the businessmen culminated in a lawsuit filed last week.
Investors assert claims of securities fraud and have filed RICO charges for racketeering along with various fraud-related allegations. They are pursuing potentially millions in damages, legal fees, and a trust for the defendants’ assets.
An attorney for the investors chose not to comment when reached, citing a policy of not discussing ongoing litigation.
