NJ Orders Parsippany Dance Academy to Halt $5.4 Million Investment Scheme

Authorities allege the owner of Arya International dance academy defrauded investors, including students' friends and family members.

Published on Feb. 26, 2026

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The New Jersey Bureau of Securities has issued a cease and desist order against Mystical Stars LLC, formerly Arya International Inc., and its owner Rupal K. Patel, ordering them to immediately stop selling unregistered securities that allegedly raised over $5.4 million from 74 investors, including 48 New Jersey residents. Authorities claim Patel promoted the investments as safe opportunities offering high returns, but failed to disclose material facts such as the company's financial troubles and tax issues.

Why it matters

This case highlights the need for stronger oversight and regulation of the financial services industry, particularly when it comes to protecting vulnerable investors from fraudulent schemes. The alleged actions of Patel and Arya International demonstrate how unscrupulous individuals can exploit positions of trust to defraud unsuspecting investors, often targeting those with close personal connections.

The details

According to the Bureau of Securities, Patel and Arya International raised $5,469,228 from 74 investors through the sale of unregistered promissory notes. Authorities allege the scheme targeted friends and family members of students enrolled at the dance academy. Patel is accused of making untrue statements and omitting material facts about the company's financial situation, including outstanding merchant cash advances and a three-year shutdown during the COVID-19 pandemic. Regulators also found that Arya International's corporate charter had been revoked by the New Jersey Division of Taxation in 2021 and that the securities were not properly registered.

  • The Bureau of Securities issued the cease and desist order on February 26, 2026.
  • Arya International allegedly raised $5,469,228 from investors between 2020 and 2023.
  • Arya International's corporate charter was revoked by the New Jersey Division of Taxation in 2021.

The players

Mystical Stars LLC

Formerly known as Arya International Inc., a Parsippany-based dance academy that is the subject of the cease and desist order.

Rupal K. Patel

The owner of Mystical Stars LLC (formerly Arya International Inc.) who is accused of running the fraudulent investment scheme.

New Jersey Bureau of Securities

The state agency that issued the cease and desist order against Mystical Stars LLC and Rupal K. Patel.

Jennifer Davenport

The New Jersey Attorney General who announced the cease and desist order.

Jeremy E. Hollander

The acting director of the New Jersey Division of Consumer Affairs.

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What they’re saying

“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.”

— Jennifer Davenport, New Jersey Attorney General (parsippanyfocus.com)

“Rupal Patel used her position as head of Arya International to shamelessly prey on and financially exploit friends and families of her students.”

— Jeremy E. Hollander, Acting Director, New Jersey Division of Consumer Affairs (parsippanyfocus.com)

“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.”

— Keith A. Alt, Acting Bureau Chief, New Jersey Bureau of Securities (parsippanyfocus.com)

What’s next

The judge will decide on Tuesday whether to allow Rupal K. Patel and Mystical Stars LLC to continue operating while the case is pending.

The takeaway

This case highlights the need for stronger oversight and regulation of the financial services industry to protect vulnerable investors from fraudulent schemes. It serves as a reminder for all investors to thoroughly research any investment opportunity and verify the registration and disciplinary history of financial professionals before committing their money.