Toca Madera Lawsuit 2026, Investors Sue Noble 33 Founders For $Millions In Alleged Fraud, OnlyFans Models, RICO

An investor has filed a lawsuit against Mexican steakhouse chain Toca Madera and the leadership of its parent company, Noble 33, alleging that Noble 33’s leaders systematically defrauded them and used the restaurants’ revenues to purchase things like fancy cars and plane trips with OnlyFans models. The lawsuit, filed January 30, 2026 in U.S. District Court for Arizona, involves business disputes between restaurant investors and company executives—not a consumer class action with settlement claim forms or public eligibility.

What Is The Toca Madera Lawsuit About?

The plaintiffs, Madera Group Investments and Madera Group Holdings managed by Scott Jackson of Endeavoring Capital, accuse Noble 33 co-founders Tosh Berman and Michael Tanha, plus CFO Mahdiar Karamooz, of securities fraud, breach of fiduciary duty, and violations of the Racketeer Influenced and Corrupt Organizations Act (RICO).

The lawsuit filed in U.S. District Court for Arizona alleges that the Toca Madera founders and a top company executive defrauded investors by siphoning money from the restaurants for their own benefit, then attempting to conceal their actions through fraudulent financial reports. The complaint claims defendants “intentionally and systematically defrauded” investors through multiple complex schemes affecting restaurants in Las Vegas, Los Angeles, Arizona, and Florida.

Alleged Fraudulent Spending And Misappropriation

According to court documents, Berman and Tanha had used the money on acquiring multiple properties, such as a ranch in Aspen, which they spent $100,000 furnishing, as well as a $5 million house in Miami. The lawsuit claims they also spent half the cost of a $25,000 monthly Miami rental property.

The complaint alleges defendants purchased luxury vehicles including a white Ferrari and Maybach SUV, plus hundreds of thousands on a luxury wakeboard boat. The lawsuit also claims Berman and Tanha spent investor funds on airfare for OnlyFans models and other women to attend openings, as well as lengthy trips to Europe, Australia, Dubai and elsewhere.

Karamooz is accused of falsifying financial records to conceal the spending once he became aware of it. The investors claim he provided altered financial reports that hid excessive expenditures by Berman and Tanha.

Super Bowl Event Revenue Allegedly Concealed

Additional claims include misrepresenting the fees earned from renting out Toca Madera Las Vegas for Super Bowls LVII and LVIII. For the first event, the restaurant allegedly brought in $1.3 million, but investors were told only $600,000 was received and allowed the owners to keep the difference.

For Super Bowl LVIII weekend in Las Vegas in 2024, the complaint alleges defendants again diverted a portion of the rental fee for their personal benefit while deceiving investors and employees about the true amount. The lawsuit claims this pattern of concealing revenue from profitable events cost investors hundreds of thousands in rightful distributions.

InKind Partnership Embezzlement Claims

One notable incident involved InDeal, a company that pays businesses to promote discounts. Berman and Tanha were supposedly paid $3 million for this deal, which they kept while using investor money to cover the discount costs. Investors allege this left the restaurant entities short on working capital and forced investors to absorb losses that should have been covered by the partnership payments.

Defendant’s Response To Allegations

Brian Timmons of Quinn Emmanuel, an attorney for defendants Berman, Tanha, and Karamooz, called the lawsuit “meritless.” Timmons said in a statement: “These are ridiculous claims, asserted by a single small investor—Scott Jackson of Endeavoring Capital. He brought these claims in desperate retaliation after being sued by the company for violating his contractual obligations, and after our clients refused his threats to tarnish their reputations unless they paid him an exorbitant sum”.

Timmons emphasized that the complaint contains no supporting evidence, documents, or witnesses referenced. He stated the suit is meritless and will be addressed through the appropriate legal process.

Current Status As Of February 2026

The lawsuit remains pending in U.S. District Court for Arizona. After a follow-up request in June 2024, the Toca Madera Scottsdale entity sued the investor groups, accusing some investors of improperly transferring shares, a claim the investors deny.

The Scottsdale restaurant later produced some documents to “placate” the investors, but plaintiffs claim the disclosures were incomplete, leading to continued disputes and ultimately the federal lawsuit filed in January 2026. Toca Madera restaurants in Las Vegas, Houston, and Arizona continue operating normally. Nothing in the investor lawsuit references operational changes or closures affecting customers.

An investor has filed a lawsuit against Mexican steakhouse chain Toca Madera and the leadership of its parent company, Noble 33, alleging that Noble 33's leaders systematically defrauded them and used the restaurants' revenues to purchase things like fancy cars and plane trips with OnlyFans models. The lawsuit, filed January 30, 2026 in U.S. District Court for Arizona, involves business disputes between restaurant investors and company executives—not a consumer class action with settlement claim forms or public eligibility.

Is There A Consumer Settlement Or Claim Form?

No. This lawsuit involves a business dispute between restaurant investors and company executives over alleged securities fraud and misappropriation of investor capital. There is no consumer class action, no public settlement, and no claim forms for Toca Madera restaurant customers or diners.

Customers who ate at Toca Madera locations are not parties to this litigation and cannot file claims for compensation. The legal battle focuses on how company executives allegedly used investor money—not food quality, service issues, or consumer harm.

Separate Employment Class Action

It’s worth noting that Toca Madera faced a separate 2020 employment class action. Custis Law, P.C. filed a class action lawsuit against Tocaya Organica and Toca Madera for violations of California’s Labor Code and Unfair Competition Law on behalf of current and former employees who worked between June 16, 2016 and August 2020.

That employment lawsuit alleged wage theft, unpaid overtime, meal break violations, and failure to reimburse employees for business expenses like personal cell phone use and vehicle mileage. The 2020 case is separate from the current 2026 investor fraud lawsuit.

Who Are The Parties?

Plaintiffs:

Madera Group Investments
Madera Group Holdings
Manager: Scott Jackson (Endeavoring Capital)

Defendants:

Tosh Berman (Noble 33 co-founder and chairman)
Michael Tanha (Noble 33 co-founder and chairman)
Mahdiar Karamooz (Noble 33 CFO)

Court: U.S. District Court for Arizona

Claims: Securities fraud, breach of fiduciary duty, RICO violations, aiding and abetting

Common Misconceptions About The Toca Madera Lawsuit

Misconception: This is a food safety or customer service lawsuit.
Reality: This is an investor fraud case about alleged misappropriation of business funds by company executives.

Misconception: Restaurant customers can file claims or get refunds.
Reality: Only business investors are parties to this litigation. Diners have no claim eligibility.

Misconception: Toca Madera restaurants are closing or bankrupt.
Reality: All Toca Madera locations continue normal operations despite the investor lawsuit.

What Happens Next?

The lawsuit proceeds through federal court discovery, where both sides will exchange evidence and documents. Plaintiffs seek damages potentially totaling millions, attorneys’ fees, and a trust over defendants’ assets to prevent further misappropriation.

Defendants will file formal responses denying the allegations and likely move to dismiss some or all claims. The case could settle privately, go to trial, or remain in litigation for months or years as complex securities fraud and RICO cases typically do.

The separate Houston litigation over Toca Madera’s “fire dance” performances also continues in federal court, unrelated to the investor fraud allegations.

FAQs

What is the Toca Madera lawsuit about?

The Toca Madera lawsuit is an investor fraud case filed January 30, 2026 in Arizona federal court. Investors claim Noble 33 founders Tosh Berman and Michael Tanha, plus CFO Mahdiar Karamooz, misappropriated millions from restaurant revenues for luxury homes, cars, trips with OnlyFans models, and personal expenses while providing false financial reports to investors.

Can restaurant customers file claims in the Toca Madera lawsuit?

No. This is a business dispute between investors and company executives over alleged securities fraud. Customers who dined at Toca Madera restaurants cannot file claims or receive any settlement compensation. No consumer class action exists.

Are Toca Madera restaurants still open?

Yes. All Toca Madera locations in Las Vegas, Houston, Los Angeles, and Arizona continue operating normally. The investor lawsuit does not affect restaurant operations, and no closures have been announced. This is a financial dispute between investors and executives—not an operational issue.

What is the RICO charge in the Toca Madera lawsuit?

RICO (Racketeer Influenced and Corrupt Organizations Act) allows plaintiffs to sue for organized fraudulent activity. The investors claim defendants engaged in a pattern of securities fraud, embezzlement, and financial misrepresentation constituting racketeering. If proven, RICO violations can result in triple damages.

How much money are investors suing for?

The lawsuit seeks damages potentially totaling millions, though no specific dollar amount is stated in the complaint. Plaintiffs want compensation for diverted funds, fraudulent financial reporting damages, attorneys’ fees, and a court-ordered trust over defendants’ assets to prevent further misappropriation.

What did the defendants allegedly spend investor money on?

Court documents claim Berman and Tanha bought a $5 million Miami home, an Aspen ranch, luxury vehicles (Ferrari, Maybach SUV), wakeboard boat, paid $25,000/month for Miami rental, flew OnlyFans models to restaurant openings, traveled to Europe/Australia/Dubai, and purchased multiple engagement rings—all allegedly using investor capital meant for restaurant operations.

Is this the only lawsuit against Toca Madera?

No. Toca Madera also faces a separate 2020 employment class action for wage violations and a November 2025 lawsuit against Houston city officials over “fire dance” performance restrictions. The investor fraud case is distinct from these other legal disputes.

Last Updated: February 11, 2026

Disclaimer: This article provides general information about the Toca Madera investor lawsuit and is not legal advice. This is a business dispute with no consumer claim process.

Concerned About Securities Fraud? Learn about the Celgene $239 Million Securities Class Action Lawsuit Settlement to understand how investor fraud cases work.

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About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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Toca Madera Lawsuit 2026, Investors Sue Noble 33 Founders For $Millions In Alleged Fraud, OnlyFans Models, RICO—No Consumer Settlement Available