South Brunswick Couple Used Investor Money To Fund Luxury Lifestyle: NJ AG

TRENTON — A South Brunswick husband and wife have been indicted for allegedly orchestrating a multimillion-dollar Ponzi scheme that defrauded investors through false promises of high returns, Attorney General Matthew J. Platkin said Thursday.

Swapnil Rege, 50, and Reema Rege, 48, both of Monmouth Junction, face numerous charges related to a scheme that allegedly stole more than $2.28 million from investors between January 2020 and August 2022.

Swapnil Rege 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 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.

According to the indictment, Swapnil Rege misled investors with agreements promising annualized returns ranging from 21 to 80 percent through his company, Swapstar Capital LLC. Investigators allege he failed to disclose critical information, including that he had been barred by the U.S. Securities and Exchange Commission since July 2019.

The two investors identified 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, Platkin said.

The couple allegedly used investor funds to purchase a mansion, pay personal credit card debts, and cover other family expenses. Authorities claim Swapnil Rege laundered more than $1.4 million to provide fake returns to investors using their own money, while also laundering over $500,000 through various accounts to conceal the source of the funds.

“Investment fraud schemes prey on vulnerable victims with empty promises of huge profits and guaranteed returns,” Platkin said. “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.”

The case has been assigned to Middlesex County, where the defendants will appear for arraignment at a later date.

The investigation is ongoing, and anyone with relevant information is encouraged to contact the Division of Criminal Justice's tip line at (800) 277-2427 or email OSFFCP@njdcj.org.

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