At the time of the alleged misconduct, Rege was already barred from being in the investment advisory business.
The SEC filed charges against Swapnil J. Rege and his company SwapStar Capital, LLC with stealing money from investment advisory clients, and doing so while he was barred by the SEC from being in the investment advisory business.
According to the complaint, Rege and his company SwapStar Capital, LLC solicited Rege’s friends, neighbors, and other referrals to be the defendants’ investment advisory clients. Rege and SwapStar allegedly misrepresented to their clients that client money would be invested in securities for guaranteed returns. According to the SEC’s complaint, Rege and SwapStar instead used client money to pay fictitious gains to other clients, to return original investment amounts to other clients, and to pay for some of Rege’s personal expenses.
The SEC also alleges that Rege engaged in the alleged misconduct even after the SEC had barred him, in a 2019 SEC order, from associating with an investment adviser and ordered him to cease and desist from further violations of certain anti-fraud provisions in the Advisers Act. The complaint alleges that Rege acted as an investment adviser in violation of the bar against him. Further, according to the SEC’s complaint, Rege failed to disclose to his advisory clients that he had been barred from associating with an investment adviser.
The SEC charged Rege and Swapstar with violating antifraud provisions of Sections 206(1) and 206(2) of the Advisers Act. It also charges Rege with violating Section 203(f) of the Advisers Act and seeks court enforcement of the 2019 SEC order pursuant to Section 209(d) of the Advisers Act.
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The Sonn Law Group is currently investigating allegations surrounding Swapnil Rege and Swapstar Capital, LLC. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.