State securities bureau stops investment fraud scheme across country.

NJ Bureau of Securities has taken immediate action to stop a nationwide investment fraud scheme linked to Arya International Dance Institute, based in Morris County, New Jersey. The scheme targeted friends and family of students at the South Asian Dance Academy by selling unregistered securities.

Attorney General Jennifer Davenport announced that the Bureau of Securities, part of the Division of Consumer Affairs, issued a Summary Cease and Desist Order to prevent further sales of unregistered securities tied to Arya International. The investigation revealed that Arya International, led by owner Rupal K. Patel, raised $5,469,228 from 74 investors, including 48 New Jersey residents, through these unregistered securities sales.

Davenport emphasized the commitment to addressing financial fraud and protecting New Jersey citizens from scams that jeopardize their finances. She condemned fraudulent investment schemes like the one perpetuated by Arya International, stating that such activities exploit individuals’ trust and money. Her office will continue to enforce laws that shield investors from financial exploitation.

Patel, the owner of Arya International, marketed the unregistered securities as safe investments with guaranteed returns, attracting investors with promises of 10 to 20 percent returns. However, Patel is not registered to sell securities in New Jersey, and her deceptive tactics led investors to use their children’s college savings to fund the fraudulent venture.

Jeremy E. Hollander, Acting Director of the Division of Consumer Affairs, expressed disapproval of Patel’s actions, condemning her exploitation of friends and families of her dance academy students. The Cease and Desist Order demands that Arya International cease its unlawful activities and comply with the Uniform Securities Law to protect investors.

Acting Bureau Chief Keith A. Alt highlighted the significance of verifying investments before committing capital. Operating outside the bounds of securities regulations, Patel and Arya International provided misleading information and withheld critical facts necessary for informed investment decisions. The Bureau discovered that Patel made false statements regarding the returns on Unregistered Arya Securities and Arya International’s inability to pay earlier investors due to substantial borrowing.

The scheme’s deceitful practices came to light through various misleading statements by Patel and Arya International. The Bureau’s enforcement action not only prevents further sales of unregistered securities in New Jersey but also stresses the importance of due diligence before investing money. By failing to disclose crucial information and misrepresenting investment opportunities, Patel and Arya International endangered the financial well-being of investors.