NJ Attorney General Alleges $5.4M Investment Scheme Linked to Arya International Dance Academy and Owner Rupal K. Patel
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By Adam Rizvi | Editor, The India Observer (TIO): TRENTON, NJ — February 25, 2026 — The New Jersey Office of the Attorney General has announced emergency enforcement action against a Morris County–based South Asian dance academy and its owner, alleging a nationwide investment scheme that raised more than $5.4 million from investors, including dozens of New Jersey residents.
According to Attorney General Jennifer Davenport, the New Jersey Bureau of Securities — operating within the New Jersey Division of Consumer Affairs — issued a Summary Cease and Desist Order against Mystical Stars, LLC, formerly Arya International Inc. (collectively referred to as “Arya International”), and its owner, Rupal K. Patel.
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State officials allege the academy sold unregistered securities tied to the business in the form of promissory notes, raising approximately $5,469,228 from 74 investors nationwide, including 48 New Jersey residents.
Investigators allege that beginning in March 2016, Patel marketed promissory notes connected to the dance academy as safe investments offering 10% to 20% returns, with repayment allegedly guaranteed.
Authorities claim many of the investors were friends and family members of students enrolled at the South Asian dance academy.
Attorney General Davenport stated that fraudulent investment schemes can exploit trust within close-knit communities and cause significant financial harm. The enforcement action seeks to halt any further sale of the alleged unregistered securities in New Jersey.
The Bureau further alleges:
- Guarantees of full repayment plus interest despite alleged inability to pay earlier investors.
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Claims of post-COVID expansion while the academy allegedly ceased operations between 2020 and 2023.
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Personal guarantees made during a period when authorities say the business was not generating new class revenue.
According to the Bureau’s findings, Arya International allegedly borrowed at least $1,960,452 through merchant cash advance agreements between 2020 and 2023, assigning rights to future receivables to third-party companies.
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Authorities also allege failures to disclose:
- Missed investor payments upon maturity of promissory notes.
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Outstanding merchant cash advance obligations.
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Certain unpaid or unfiled state tax obligations between 2010 and 2023.
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Reversal of the company’s corporate charter by the New Jersey Division of Taxation in June 2021, resulting in loss of good standing.
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That the securities were not registered, exempt, or federally covered.
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That Patel was not registered as a securities agent in New Jersey.
The Bureau concluded that the alleged conduct violated the New Jersey Uniform Securities Law, including offering and selling unregistered securities and making untrue statements or omissions of material facts in connection with investment sales.
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It is important to note that these findings stem from a civil enforcement action and do not constitute a criminal conviction at this stage.
The Bureau of Securities urges investors to verify the registration status and disciplinary history of any financial professional before investing.
New Jersey residents can contact the Bureau toll-free at 1-866-I-Invest (1-866-446-8378) or visit www.NJSecurities.gov for assistance or to file complaints.
This case highlights the importance of transparency and due diligence — especially when investment opportunities arise within trusted community networks.
The India Observer will continue to follow developments in this matter and provide updates as they become available.
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