NJ Bureau of Securities Orders Morris County Dance Academy, Owner to Stop Alleged Unregistered Investment Sales

State officials say Arya International and owner Rupal K. Patel raised about $5.47 million from 74 investors nationwide, including 48 New Jersey residents, by selling promissory notes that were not registered as securities.

The New Jersey Bureau of Securities has issued an emergency Summary Cease and Desist Order against Arya International, a South Asian dance academy based in Morris County, and its owner, Rupal K. Patel, alleging the pair sold unregistered securities and misled investors in a nationwide investment scheme.

Acting Attorney General Jennifer Davenport said in a press release that the Bureau, which sits within the Division of Consumer Affairs, took the action to halt further sales of the investments in New Jersey. State officials alleged Patel and Arya International raised $5,469,228 from 74 investors, including 48 New Jersey residents, by targeting friends and family members of the academy’s students across the country.

What the state alleges

According to the Attorney General’s Office, Patel is the owner, chief executive officer, director, and sole shareholder of Arya International, which the release describes as a “charitable dance and entertainment organization” offering South Asian dance instruction in multiple locations.

Investigators alleged that beginning in March 2016, Patel and the company offered investments tied to the dance academy in the form of promissory notes, which the Bureau characterized as unregistered securities. The release said Patel was not registered to sell securities in New Jersey and marketed the investments as “safe,” promising returns of 10 to 20 percent that were “personally guaranteed” by Patel and the company, according to state officials.

“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,” Davenport said. “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.”

State officials said some investors allegedly put children’s college savings into the venture after hearing the promised returns, and that the Bureau’s investigation found multiple statements and omissions it considered material to investors’ decisions.

Among the allegations, the Bureau said Arya International and Patel:

Promised repayment to new investors despite allegedly being unable to pay earlier investors.
Claimed in a 2022 solicitation email that the academy had expanded after COVID-19, while the Bureau alleged the academy was shut down for three years between 2020 and 2023.
Continued to describe the investments as personally guaranteed between 2020 and 2023, while the Bureau alleged the company had run out of money and was not generating new revenue after being shut down during the pandemic.

The Bureau also said it found investors were not told, among other things, that promissory notes allegedly went unpaid at maturity, that the company had assigned interests in receivables to merchant cash advance companies, and that its corporate charter was revoked in 2021, according to the release.

“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.”

“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.”

What a “cease and desist” order means

A Summary Cease and Desist Order is an emergency administrative action used by securities regulators to stop conduct they believe violates state securities laws. The order generally directs the named parties to stop offering or selling the investment product and to stop making misleading claims while the case proceeds.

The Bureau said the order was issued under the New Jersey Uniform Securities Law and concluded that Patel and Arya International violated the law by offering and selling unregistered securities and engaging in fraudulent practices, according to the state’s release.

How to check an investment in New Jersey

The Bureau urged investors to “Check Before You Invest,” and said residents can request information about a financial professional’s registration status and disciplinary history through the Bureau.

According to the Attorney General’s Office, investors can contact the Bureau toll-free in New Jersey at 1-866-I-Invest (1-866-446-8378), from outside New Jersey at (973) 504-3600, or visit the Bureau’s website, NJSecurities.gov, for more information.

Who, what, where, when, why, how

Who: New Jersey Bureau of Securities; Mystical Stars, LLC (formerly Arya International Inc.); owner Rupal K. Patel; New Jersey Division of Consumer Affairs; Acting AG Jennifer Davenport.
What: Emergency Summary Cease and Desist Order alleging unregistered securities sales and misleading statements/omissions tied to promissory note investments.
Where: Arya International is described as based in Morris County, New Jersey, with investors allegedly located across the U.S.
When: Press release dated February 25, 2026; alleged conduct beginning March 2016, with key disputed pandemic-era claims focused on 2020–2023.
Why: Regulators said the investments were not registered and that investors were misled or not given information required to make informed decisions.
How: The Bureau said it used its enforcement authority under the New Jersey Uniform Securities Law to issue an emergency order directing the company and Patel to stop the alleged activity.