The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against SwapStar Capital LLC and its owner, Swapnil Rege, on charges of fraud and embezzlement. The owner also violated a previous CFTC order prohibiting him from trading commodity interests for three years. Earlier, the US Securities and Exchange Commission (SEC) also accused the company’s owner of stealing money from clients and violating his ban on participating in the investment advisory business.
According to the SEC and CFTC, Rege and SwapStar have invited individuals to invest money in his business. He lied to them that the funds would be invested in securities and investors would receive a return of 40% to 60%, and the opportunity to redeem their funds immediately or in a short time. Both the CFTC and the SEC seek permanent bans on trade and registration against defendants, as well as fines and seizures.