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Swapnil Rege Allegedly Involved in a Ponzi-Like Scheme

Feb 15, 2022 Barred Broker

Swapnil Rege (CRD #:4788421), a broker formerly registered with   Nomura Securities International, is named in a complaint filed by the Commodity Futures Trading Commission, according to his BrokerCheck Record accessed on January 20, 2022. 

Commodity Futures Trading Commission Allegations

On October 26, 2021, Swapnil Rege and his company SwapStar Capital were named as defendants in a complaint filed by the Commodity Futures Trading Commission. According to the allegations, Rege and SwapStar Capital received funds from at least 25 individuals based on promises to pay fixed rates of return on unsecured loans. He claimed to be using the loans to make investments. He allegedly told investors they would receive fixed returns as high as 40% to 60%. 

Swapnil Rege allegedly misappropriated a portion of the funds and spent them on personal expenses as well as Ponzi-like repayment to other clients. He also allegedly failed to disclose he was barred from executing any commodity futures or commodity options trades for a period of three years. 

SEC Bar and Fine 

According to a complaint filed by SEC, Swapnil Rege allegedly mispriced investments for a private fund for which he served as a portfolio manager. This allegedly resulted in: 

  • Artificially inflated fund profits
  • Overstatements of the fund's monthly net asset value 
  • Excess management fees 

Swapnil Rege also allegedly engaged in certain deceptive acts to cover up his mispricing. The mispricing allegedly resulted in $600,000 in excess compensation. 

SEC Sanctions

 Swapnil Rege consented to the following sanctions: 

  1. SEC indefinite bar with the right to reapply to the SEC after three years.
  2. $100,000 civil and administrative penalty 
  3. $600,000 disgorgement 
  4. $49,170.84 monetary penalty

Background Information

Swapnil Rege has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

He has also worked with the following firms: 

  • Nomura Securities International (CRD #: 4297)
  • Citigroup Global Markets (CRD#:7059)

Kurta Law Can Help 

If you have been victimized by Swapnil Rege as a broker, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.