Consumers Affected
74
The New Jersey Bureau of Securities issued a Summary Cease and Desist Order against Arya International Inc. (operating as Mystical Stars, LLC) and owner Rupal K. Patel for operating a nationwide investment fraud scheme involving unregistered securities. The scheme targeted friends and family of dance students, raising over $5.4 million from 74 investors, including 48 New Jersey residents, through false promises of guaranteed 10-20% returns. The order requires the entities to immediately halt sales of unregistered securities and cease misleading investors.
The Bureau issued a Summary Cease and Desist Order directing Arya International Inc. (Mystical Stars, LLC) and Rupal K. Patel to stop selling unregistered securities, cease making untrue statements to investors, and disclose all material facts in future investment solicitations. The order formally finds violations of the New Jersey Uniform Securities Law for unregistered securities sales, fraud, and omissions of material facts.
In-house legal teams at education or entertainment entities soliciting investments should review all investor agreements (including promissory notes) to ensure securities are properly registered with state regulators and include full disclosure of material facts such as outstanding debts, tax compliance status, and corporate good standing. Agreements with merchant cash advance or factoring providers must be reviewed for compliance with state lending laws. Entities should verify all personnel selling securities are registered as agents, and implement clauses prohibiting false investment return guarantees in customer-facing agreements. All marketing materials and investor solicitations should be audited to eliminate untrue statements of material fact, and vendor agreements should include representations of compliance with state securities registration requirements.
Entity
Arya International Inc. (Mystical Stars, LLC)
Industry
EducationOfficial Press Release
https://www.njoag.gov/nj-bureau-of-securities-takes-action-to-halt-nationwide-investment-fraud-scheme-by-nj-based-arya-international-dance-institute-and-its-owner/
2026 0225 Patel and Arya International Summary Cease and Des
http://www.njoag.gov/wp-content/uploads/2026/02/2026-0225_Patel-and-Arya-International-Summary-Cease-and-Desist-Order.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"Mystical Stars, LLC, formerly Arya International Inc. (collectively, with Mystical Stars, LLC, “Arya International”)"
"For Immediate Release: February 25, 2026"
"violated the New Jersey Uniform Securities Law"
"Patel and Arya International targeted friends and family of Arya International students across the U.S., raising $5,469,228 from 74 investors–including 48 New Jersey residents–through unregistered securities sales."
"Summary Cease and Desist Order directing Mystical Stars, LLC, formerly Arya International Inc. (collectively, with Mystical Stars, LLC, “Arya International”), and its owner, Rupal K. Patel, to stop selling unregistered securities and misleading investors."
"raising $5,469,228 from 74 investors–including 48 New Jersey residents"
$100K
New Jersey Attorney General Jennifer Davenport and the Division of Consumer Affairs announced a Consent Order with King Distribution LLC and 17 related retail smoke shops, resolving allegations that the companies illegally sold flavored vapor products in violation of New Jersey’s consumer protection laws. The Consent Order imposes a $100,000 civil penalty, requires reimbursement of $22,279 in investigation costs, and prohibits the companies from selling or distributing flavored vapor products in New Jersey. The enforcement action is part of New Jersey’s ongoing efforts to protect youth from flavored vape products, which have been permanently banned in the state since January 2020.
The New Jersey Bureau of Securities issued a Cease and Desist Order on April 30, 2026, against Titan Macro Finance for operating an investment fraud scheme via WhatsApp and Instagram that defrauded at least one New Jersey investor of $64,000. The scheme involved unregistered broker-dealer activity, fake trading profits, and undisclosed fees to access investor funds. The action was coordinated with the California Department of Financial Protection and Innovation, which issued a similar order against the entity for violating California’s Commodity Code.
New Jersey Attorney General Jennifer Davenport and the Bureau of Securities issued a public warning to state residents about fraudulent investment schemes proliferating on Meta-owned platforms including Facebook, Instagram, and WhatsApp. The alert details common scam tactics such as pump-and-dump schemes, confidence scams, and fraudulent cryptocurrency offerings, and provides tips for residents to avoid victimization. No enforcement action against any entity was announced in this release.
New Jersey Attorney General Jennifer Davenport led a bipartisan coalition of 27 state attorneys general in submitting a comment letter to the Federal Trade Commission urging federal rulemaking to regulate hidden and deceptive rental housing fees. The AG also issued guidance clarifying New Jersey’s new $50 rental application fee cap, effective May 1, 2026, warning that deceptive fee practices may violate the New Jersey Consumer Fraud Act. No specific enforcement action against a named individual entity was announced, with enforcement of the fee cap set to begin May 1, 2026.
$2.0M
New Jersey Attorney General Jennifer Davenport announced a multistate settlement with NCL Bahamas, Ltd. (Norwegian Cruise Line) resolving allegations of deceptive sales practices and unfair cancellation, refund, and future cruise credit policies during the COVID-19 pandemic. The settlement requires NCL to pay $2 million to participating states, implement employee training and management approval processes for sales communications during disasters, and prohibits deceptive sales statements and prioritizing sales over consumer health and safety. NCL has already issued over $3 billion in refunds and future cruise credits to consumers nationwide related to the underlying allegations.
Ibelis Gonzalez, a 46-year-old Jersey City resident, was indicted on charges including second-degree theft by deception, second-degree impersonation/theft of identity, and third-degree false government documents. She is alleged to have used fake identification to obtain debit cards in six victims' names, stealing approximately $86,840 from their bank accounts between May and June 2024. The case is being prosecuted by the New Jersey Division of Criminal Justice, with potential maximum fines of $150,000 for second-degree charges and $15,000 for third-degree charges.