TRENTON, N.J. — A Middlesex County couple has been indicted by a state grand jury for allegedly orchestrating a Ponzi-style fraud that siphoned more than $2 million from investors through false promises of high returns, New Jersey Attorney General Matthew J. Platkin announced Wednesday.
Swapnil Rege, 50, and his wife Reema Rege, 48, both of Monmouth Junction, are accused of running the scheme between January 2020 and August 2022 through Swapstar Capital LLC, using falsified documents and undisclosed regulatory sanctions to mislead victims. Authorities say funds were then diverted for personal use, including the purchase of a mansion and the payment of credit card debts.
Key Points
- Swapnil and Reema Rege allegedly defrauded investors of over $2 million through a fake investment scheme.
- The funds were reportedly used to buy a mansion and pay personal expenses, while fake returns were paid with investor money.
- Both face multiple felony charges including securities fraud, money laundering, and theft by deception.
Multiple felony charges for both defendants
Swapnil Rege is facing 12 felony counts, including first-degree money laundering and second-degree securities fraud, theft, and passing a bad check. Reema Rege is charged as a co-defendant on five counts, including receiving stolen property valued at more than $75,000.
The indictment alleges that Swapnil Rege misled two investors with promises of annual returns as high as 80 percent, supposedly from profitable securities trading. Instead, prosecutors say he used new investor money to pay off previous ones in classic Ponzi scheme fashion and attempted to cover the theft with fraudulent financial documents.
Attorney General Platkin emphasized the state’s commitment to pursuing financial crimes. “The defendants charged in this case allegedly used investors’ funds in a classic Ponzi scheme, enriching themselves along the way,” Platkin stated.
Alleged financial deception spanned multiple accounts
Prosecutors say Swapnil Rege also abused his position as an investment adviser by transferring over $219,000 from one victim’s trading and retirement accounts without consent. A $100,000 check allegedly issued to cover the theft was found to be fraudulent.
To continue the scheme and disguise the origin of the funds, Rege is accused of laundering more than $1.9 million through numerous financial transactions and bank accounts. The indictment outlines elaborate efforts to use investor money to maintain the appearance of success, while masking personal gains.
Reema Rege is accused of knowingly participating in the fraud and is charged with aiding in the concealment and use of stolen securities and funds for personal benefit.
Case assigned to Middlesex County for prosecution
The indictment was handed up in Mercer County to Assignment Judge Robert T. Lougy and the case will proceed in Middlesex County, where the couple will appear in court for arraignment. The exact date has not yet been scheduled.
Deputy Chief Adam Heck and Deputy Attorney General Michael Burke are prosecuting the case under the supervision of the Office of Securities Fraud and Financial Crimes Prosecutions. The investigation was led by detectives from the Division of Criminal Justice, including Detective Nicholas Trocchio and Special Investigator Joseph Czarnecki.