New Jersey securities regulators have ordered Parsippany-based dance academy, Arya International, and its owner, Rupal K Patel, to immediately halt the sale of investments tied to what authorities describe as a nationwide fraudulent scheme that raised more than $5.4 million from dozens of investors.
Attorney General Jennifer Davenport announced that the New Jersey Bureau of Securities issued a summary cease and desist order against Mystical Stars LLC, formerly known as Arya International Inc., and its owner, Rupal K. Patel. The business operates as Arya International, a South Asian dance academy located on Route 46 in Parsippany-Troy Hills.
According to regulators, Patel and the academy raised $5,469,228 from 74 investors — including 48 New Jersey residents — by selling unregistered securities in the form of promissory notes.
Authorities allege the offerings were marketed primarily to friends and family members of students enrolled at the academy, capitalizing on established trust within the community.
Patel is not registered to sell securities in New Jersey, officials said. Investigators allege she promoted the investments as safe opportunities promising returns between 10% and 20%, personally guaranteed by both the company and Patel. Regulators contend that the investments were neither registered nor exempt from registration as required under state law.
“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,” NJ Attorney General Jennifer Davenport said, adding that fraudulent schemes exploit public trust and cause significant financial harm.
Jeremy E. Hollander, acting director of the Division of Consumer Affairs, alleged that Patel used her leadership role at Arya International to financially exploit families connected to the academy.
The order demands that the company and its owner immediately stop the unlawful conduct and comply with the state’s Uniform Securities Law.
The Bureau further alleges that Patel and the company made untrue statements and omitted key material facts in connection with the investments. Regulators found that between 2020 and 2023, Arya International borrowed at least $1.96 million through merchant cash advance agreements and assigned rights to future accounts receivable. Authorities also allege the academy remained closed for three years during the COVID-19 pandemic despite claims of post-pandemic expansion.
Additionally, officials say the company failed to disclose unpaid state taxes and that its corporate charter was revoked in 2021 by the New Jersey Division of Taxation.
The enforcement action halts any further sale of the investments in New Jersey. Regulators urged investors to verify the registration status and disciplinary history of financial professionals through the New Jersey Bureau of Securities before committing their money.
