Attorney General Matthew J. Platkin announced today that a Middlesex County couple has been indicted by a state grand jury for allegedly defrauding investors out of more than $2 million. The indictment accuses Swapnil Rege and Reema Rege of orchestrating a Ponzi scheme that promised high returns, but diverted funds for their personal expenses while providing fake returns to investors.
Swapnil Rege, 50, faces multiple charges, including second-degree securities fraud, investment adviser fraud, theft by deception, and first-degree money laundering, among others. His wife, Reema Rege, 48, is charged with securities fraud, investment adviser fraud, theft by deception, and a separate charge of receiving stolen property.
“Investment fraud schemes prey on vulnerable victims with empty promises of huge profits and guaranteed returns," stated Attorney General Platkin. "The defendants charged in this case allegedly used investors’ funds in a classic Ponzi scheme, enriching themselves along the way."
DCJ Director Theresa L. Hilton highlighted the deceptive practices involved, stating, "If it sounds too good to be true, it probably is." She emphasized the department's commitment to monitoring such illegal activities.
The Legal Chief of the Office of Securities Fraud and Financial Crimes Prosecutions (OSFFCP), Pablo Quiñones, stated, "The defendants allegedly took advantage of investors by duping them out of millions of dollars and using the money for their personal benefit."
The indictment outlines that between January 24, 2020, and August 15, 2022, Swapnil Rege misled two investors into investing approximately $2.28 million through false investment agreements, promising returns of 21 to 80 percent. Rege allegedly promoted the scheme through the company Swapstar Capital LLC, failing to disclose a prior barring by the U.S. Securities and Exchange Commission since July 2019.
The couple allegedly used the investors' funds for their personal lifestyle, including purchasing a mansion, paying off credit card debts, and other expenses. Swapnil Rege is accused of laundering over $1.4 million of stolen funds and further laundering more than $500,000 to conceal the fraud's nature.
Reema Rege's involvement allegedly included knowing participation in the fraud scheme and receiving stolen securities and money.
The case will proceed in Middlesex County under Superior Court Assignment Judge Robert T. Lougy. Deputy Chief Adam Heck and Deputy Attorney General Michael Burke are managing this case, supervised by Legal Chief Quiñones.
The ongoing investigation involves detectives and investigators from the Division of Criminal Justice within the OSFFCP. The public is encouraged to provide information via the DCJ tip line or through the OSFFCP’s complaint email.
The charges and allegations remain accusations, with the defendants presumed innocent until proven guilty.
