TRENTON — Attorney General Matthew J. Platkin today announced that a state grand jury indicted a Middlesex County husband and wife for allegedly defrauding investors of more than $2 million through a fraud scheme that guaranteed high returns, but instead diverted funds for the couple’s personal benefit and provided fake returns to the victims.

Swapnil Rege, 50, of Monmouth Junction, New Jersey, is charged by indictment with one count of second-degree securities fraud, two counts of second-degree investment adviser fraud, two counts of second-degree theft by deception, two counts of second-degree theft by failure to make required disposition of property received, two counts of first-degree money laundering, two counts of second-degree theft by unlawful taking, and one count of second-degree passing a bad check in connection with the alleged fraud scheme.

Reema Rege, 48, of Monmouth Junction, New Jersey, was also charged as a co-defendant in the indictment with one count of second-degree securities fraud, one count of second-degree investment adviser fraud, and two counts of second-degree theft by deception. Reema Rege also faces a separate charge of second-degree receiving stolen property.

“Investment fraud schemes prey on vulnerable victims with empty promises of huge profits and guaranteed returns,” said Attorney General Platkin. “The defendants charged in this case allegedly used investors’ funds in a classic Ponzi scheme, enriching themselves along the way. The charges in the indictment serve as reminder to those who would take advantage of New Jersey investors that we will hold you accountable.”

“If it sounds too good to be true, it probably is. Unscrupulous investment advisers are always coming up with new ways to lure their unsuspecting victims into handing over their money,” said DCJ Director Theresa L. Hilton. “We will always be on the lookout for such illegal activity.”

“The defendants allegedly took advantage of investors by duping them out of millions of dollars and using the money for their personal benefit, while continuing a Ponzi scheme that paid investors fake returns with their own money,” said Legal Chief Pablo Quiñones of the Office of Securities Fraud and Financial Crimes Prosecutions (OSFFCP). “White-collar frauds, such as those alleged in this case, are a top priority of our office, and we will continue to ensure that those who engage in such conduct are brought to justice.”

As alleged in the indictment, from January 24, 2020, to August 15, 2022, Swapnil Rege misled two investors with investment agreements and promissory notes that guaranteed them the return of their principal investment plus large, annualized returns of 21 to 80 percent generated from purportedly profitable securities trading activity that Swapnil Rege managed through his investment company, Swapstar Capital LLC (Swapstar). Swapnil Rege allegedly failed to disclose important information to investors, such as the fact that he had been barred by the U.S. Securities and Exchange Commission since July 2019. The two investors identified in the indictment were allegedly misled into collectively investing approximately $2.28 million. Swapnil Rege also used his investment-adviser relationship with one of the victims to allegedly take stocks valued at $119,371 from the investor’s personal trading account and allegedly steal another $100,000 from the investor’s individual retirement account. Swapnil Rege allegedly then sought to pay back the investor with a $100,000 bad check.

To conceal and further the alleged scheme, Swapnil Rege allegedly used money received from investors to pay them fake investment returns and for defendants’ personal benefit, including to purchase a mansion for their family, pay personal credit card debts, and pay other family and personal expenses. Swapnil Rege allegedly promoted the fraudulent scheme by laundering more than $1.4 million in stolen funds through various financial transactions to provide the fake returns to investors using their own money. He also allegedly laundered more than $500,000 of the fraud proceeds using numerous bank accounts and securities trading accounts to conceal or disguise the nature, location, source, ownership, or control of the funds.

As alleged in the indictment, Reema Rege knowingly participated in the alleged investment fraud scheme described in the counts in which she is charged as a co-defendant. Reema Rege is also charged in a separate count with allegedly receiving more than $75,000 in securities and money, knowing or believing the money had probably been stolen from investors.

The indictment was handed up to state Superior Court Assignment Judge Robert T. Lougy in Mercer County, who assigned the case to Middlesex County, where the defendants will be ordered to appear in court at a later date for arraignment.

Deputy Chief Adam Heck and Deputy Attorney General Michael Burke are handling this matter for the OSFFCP, under the supervision of Legal Chief Quiñones and Deputy Legal Chief Brendan Stewart.

The charges are the result of an investigation conducted by detectives and investigators within the Division of Criminal Justice assigned to the OSFFCP, including Detective Nicholas Trocchio and Special Investigator Joseph Czarnecki.

The investigation remains ongoing. Anyone with pertinent information is asked to contact the DCJ’s tip line at (800) 277-2427 or use the OSFFCP’s complaint email at OSFFCP@njdcj.org.

The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Defense counsel: TBD

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