Middlesex County Couple Charged in Suspected Multimillion-Dollar Ponzi Scheme

A Middlesex County couple has been indicted for reportedly engaging in a Ponzi scheme that defrauded investors of over $2 million. Swapnil Rege, 50, and Reema Rege, 48, both residents of Monmouth Junction, New Jersey, are facing a slew of charges for their alleged involvement in this fraudulent operation. The indictment reveals Swapnil Rege has been charged with multiple counts of securities fraud, investment adviser fraud, theft by deception, money laundering, theft by unlawful taking, and passing a bad check. His wife, Reema Rege, has been charged as a co-defendant with securities fraud, investment adviser fraud, theft by deception, and receiving stolen property.

Attorney General Matthew J. Platkin expressed grave concern over investment fraud schemes that exploit vulnerable individuals with bogus promises of substantial profits and guaranteed returns. Platkin emphasized that the defendants purportedly used investors’ funds in a classic Ponzi scheme to enrich themselves while deceiving victims with fake returns. The indictment serves as a stern warning to those who seek to exploit New Jersey investors for personal gain, promising that justice will prevail.

DCJ Director Theresa L. Hilton echoed the sentiments of Attorney General Platkin, cautioning against falling prey to investment advisers who allure unsuspecting individuals with lofty claims. Hilton emphasized the commitment of law enforcement to hunt down and prosecute unlawful activities like these to safeguard investors from fraudulent schemes.

The Office of Securities Fraud and Financial Crimes Prosecutions (OSFFCP) highlighted the heinous nature of these crimes, condemning the defendants for allegedly manipulating investors out of millions of dollars to benefit themselves personally. Legal Chief Pablo Quiñones stressed that white-collar frauds, such as those alleged in this case, remain a key priority, promising relentless pursuit of justice against individuals engaging in such illicit conduct.

According to the indictment, between January 24, 2020, and August 15, 2022, Swapnil Rege allegedly misled two investors by offering investment agreements and promissory notes that guaranteed returns on their principal investments, ranging from 21 to 80 percent annually. Rege purportedly managed these investments through his company, Swapstar Capital LLC, concealing critical information such as his previous ban by the U.S. Securities and Exchange Commission since July 2019. The victims collectively invested approximately $2.28 million, with Rege reportedly misappropriating stocks worth $119,371 from an investor’s trading account and misappropriating $100,000 from the investor’s individual retirement account, later attempting to repay the theft with a bad check.

To conceal their nefarious activities, Swapnil Rege allegedly utilized funds from investors to provide them with fictitious returns and for personal expenses such as buying a mansion, settling credit card debts, and covering other family-related costs. Rege allegedly furthered the scheme by laundering more than $1.4 million in stolen funds, underscoring the severe nature of these allegations and the detrimental impact on unsuspecting investors.