MONMOUTH JUNCTION, NJ — Swapnil Rege, 50, and Reema Rege, 48, a married couple from Monmouth Junction, New Jersey, have been indicted by a state grand jury on multiple financial crime charges related to an alleged Ponzi scheme that defrauded investors of more than $2 million between January 2020 and August 2022.
The New Jersey Attorney General, Matthew J. Platkin, announced the indictment, which includes serious charges for both defendants related to their operation of Swapstar Capital LLC, an investment entity through which they allegedly promised exceptionally high returns—ranging from 21 to 80 percent annually—on what was purported to be profitable securities trading. Instead of legitimate investments, authorities assert that the Rege couple misappropriated investor funds for personal use and to generate false returns, which is a key characteristic of a Ponzi scheme.
According to the indictment, the Reges allegedly misled two investors into committing approximately $2.28 million to their scheme. Swapnil Rege, acting as an investment adviser, is accused of stealing stocks worth over $119,000 from one investor’s trading account, as well as misappropriating another $100,000 from the same investor’s retirement account. Rege allegedly attempted to repay the stolen funds with a $100,000 bad check, but the check bounced.
A critical detail omitted by Swapnil Rege—the fact that he had been barred by the U.S. Securities and Exchange Commission (SEC) since July 2019—was allegedly not disclosed to the victims, which prosecutors assert played a significant role in securing their investments.
To further deceive victims and maintain the appearance of legitimacy, Swapnil Rege allegedly laundered more than $1.4 million to create the illusion of returns for other investors, using funds from new investors to pay earlier investors. Additionally, over $500,000 was funneled through various financial accounts to conceal the movement of stolen funds. The Reges reportedly used the misappropriated funds for personal expenses, including the purchase of a mansion and to make credit card payments.
Reema Rege, who is charged alongside her husband, faces multiple counts including securities fraud and theft by deception. She is also accused of receiving over $75,000 in stolen securities and money, allegedly aware that the funds were derived from criminal activity.
The indictment has been presented to Superior Court Assignment Judge Robert T. Lougy in Mercer County, who has transferred the case to Middlesex County for further proceedings. The Rege couple is scheduled to appear for arraignment at a later date.
This investigation was led by the Division of Criminal Justice’s Office of Securities Fraud and Financial Crimes Prosecutions (OSFFCP), with contributions from Detective Nicholas Trocchio and Special Investigator Joseph Czarnecki. The case is being prosecuted by Deputy Chief Adam Heck and Deputy Attorney General Michael Burke, under the supervision of Legal Chief Quiñones and Deputy Legal Chief Brendan Stewart.
Authorities are encouraging anyone with information related to this case to contact the Division of Criminal Justice’s tip line at (800) 277-2427 or email OSFFCP@njdcj.org.
As with all criminal cases, it is important to note that the defendants are presumed innocent until proven guilty in a court of law.
