PARSIPPANY-TROY HILLS, N.J. (Morris County) — New Jersey securities regulators have ordered a Morris County-based dance academy and its owner to stop selling investments tied to what authorities describe as a nationwide fraudulent scheme that raised more than $5.4 million.
Attorney General Jennifer Davenport announced that the New Jersey Bureau of Securities issued a summary cease and desist order against Mystical Stars LLC, formerly Arya International Inc., and its owner, Rupal K. Patel. The business operates as Arya International, a South Asian dance academy based at 1571 Route 46 in Parsippany-Troy Hills, N.J.
According to the Bureau of Securities, Patel and Arya International raised $5,469,228 from 74 investors — including 48 New Jersey residents — through the sale of unregistered securities in the form of promissory notes. Authorities allege the scheme targeted friends and family members of students enrolled at the dance academy.
“As part of our commitment to tackling the affordability crisis, our office will hold financial predators accountable whenever they cheat New Jerseyans out of their hard-earned money,” said Attorney General Davenport. “Fraudulent investment schemes like the one run by Arya International cause significant financial harm to the public, unlawfully exploiting their trust and siphoning away their money. My office will continue to take action to halt fraudulent conduct and ensure compliance with the laws that protect our investors from financial predators.”
Patel, who authorities say is not registered to sell securities in New Jersey, allegedly marketed the investments as safe opportunities offering 10% to 20% returns, personally guaranteed by the company and Patel.
“Rupal Patel used her position as head of Arya International to shamelessly prey on and financially exploit friends and families of her students,” said Jeremy E. Hollander, acting director of the Division of Consumer Affairs. “The Cease and Desist Order issued today demands they immediately stop this unlawful conduct and fully comply with our Uniform Securities Law.”
Officials said the order alleges that Patel and the company made untrue statements and omitted material facts in connection with the sale of the investments. Among the findings, regulators said Arya International had borrowed at least $1.96 million through merchant cash advance agreements between 2020 and 2023 and had assigned rights to future accounts receivable to those companies. Authorities also allege the academy shut down for three years during the COVID-19 pandemic despite claims of post-pandemic expansion.
“This enforcement action not only halts any further sale of these unregistered securities in New Jersey, but also underscores the importance of verifying an investment before committing your money,” said Acting Bureau Chief Keith A. Alt. “By operating outside the regulatory framework of the securities industry, Patel and Arya International misled investors and withheld critical information that investors needed—and were legally entitled to receive—in order to make informed investment decisions.”
Regulators also allege the company failed to disclose that it had not paid certain state taxes, that its corporate charter was revoked in 2021 by the New Jersey Division of Taxation, and that the securities were not registered or exempt from registration as required by law.
The Bureau concluded that Patel and Arya International violated the New Jersey Uniform Securities Law by offering and selling unregistered securities and engaging in fraudulent practices. The order requires them to immediately cease the sale of the investments.
Authorities reminded investors to verify the registration and disciplinary history of financial professionals before investing. Information is available through the New Jersey Bureau of Securities.
