The Commodity Futures Trading Commission has filed a civil enforcement action against SwapStar Capital LLC and its owner, Swapnil Rege, with charges for fraudulent solicitation and misappropriation. Rege also violated a prior CFTC order which banned him from trading commodity interests for three years.
A day prior, the Securities and Exchange Commission also charged Rage and his company with stealing money from investment advisory clients, and violating his ban from being in the investment advisory business.
According to the SEC and the CFTC, Rage and SwapStar solicited Rege’s friends, neighbors and other individuals to lend or invest money in his business. He falsely led them to believe that the funds would be invested in securities, that investors would receive returns as high as 40% to 60%, and that lenders and investors could redeem their funds immediately or on short notice.