Rege Fair Fund Plan

If you transferred funds to Swapnil J. Rege, SwapStar Capital, LLC (collectively, the “Defendants”) for investment purposes from January 1, 2019 through October 31, 2021, both dates inclusive (the “Relevant Period”), you may be eligible to recover from the Rege Fair Fund.  You must submit a completed Claim Form with the necessary documentation so that it is postmarked (or if not sent by U.S Mail, received) by APRIL 25, 2025 (the “Claims Bar Date”) to be considered for eligibility to recover from the Rege Fair Fund.

PLEASE READ THE PLAN NOTICE CAREFULLY AND IN ITS ENTIRETY.  IF YOU TIMELY SUBMIT A CLAIM FORM AND YOU SATISFY THE ELIGIBILITY CRITERIA UNDER THE DISTRIBUTION PLAN APPROVED BY THE COMMISSION, YOU MAY BE ELIGIBLE FOR A DISTRIBUTION PAYMENT FROM THE REGE FAIR FUND. THE PLAN NOTICE CONTAINS IMPORTANT INFORMATION REGARDING THE REGE FAIR FUND, THE PLAN, AND ELIGIBILITY UNDER THE PLAN.

Background

On October 26, 2021, the SEC filed its complaint against the Defendants (the “Complaint”). According to the Complaint, from mid-2019 through October 2021, Mr. Rege, the sole owner of SwapStar since its inception, acted as an investment advisor and continued to associate with an investment advisor in violation of the investment adviser bar imposed by the SEC on July 18, 2019, in the 2019 Administrative Proceeding. According to the Complaint, Mr. Rege failed to disclose his bar from acting as an investment advisor to his clients and misrepresented the nature of the Commission enforcement action filed against him. The SEC further alleged that Mr. Rege and SwapStar engaged in a scheme to misappropriate assets from clients they advised by instructing clients to deposit funds for investment into bank accounts associated with Mr. Rege or SwapStar, claiming the funds would then be transferred to brokerage accounts. According to the Complaint, Mr. Rege and SwapStar instead used a significant portion of the funds deposited by their advisory clients for Mr. Rege’s personal expenses. Finally, the SEC alleged that the only brokerage accounts to which Mr. Rege or SwapStar transferred client funds were two accounts held in the name of Ms. Rege, rendering her in possession of funds to which she had no legitimate claim and which she received because of Mr. Rege’s and SwapStar’s unlawful behavior.

On August 23, 2022, the Court entered Final Judgements against the Defendants (the “Final Judgements”). Dkts. 20-31. The Final Judgements against Mr. Rege and SwapStar ordered them to pay, jointly and severally, a total of $5,469,926 in disgorgement, prejudgment interest, and civil penalties to the Commission. Dkt. 30-31.

The Fair Fund consists of $1,237,532.60, paid by the Defendants pursuant to the Final Judgements, plus any accrued interest and earning. The Fair Fund has been deposited in an SEC-designated account with the United States Department of the Treasury for investment. Funds collected from or paid by the Defendants or the Relief Defendant pursuant to the Final Judgements in the future, as well as any accrued interest will be added to the Fair Fund.

On January 17, 2024, the Court entered an Order to establishing a Fair Fund (the “Fair Fund”), appointing Miller Kaplan Arase LLP (“MKA”) as tax administrator for the Fair Fund (“Tax Administrator”), and authorizing the SEC to approve payment of the Fair Fund’s tax obligations and the related fees and expenses of the Tax Administrator without further order of the Court. Dkt. 35.

On March 8, 2024, the Court entered an Order appointing Analytics Consulting, LLC (“Analytics”) as distribution agent (the “Distribution Agent”) of the Fair Fund and authorizing the SEC to approve payment of the Distribution Agent’s fees for administration without further order of the Court. Dkt. 37.

On November 12, 2024, the Court issued an order approving the Plan.

Who is Potentially Eligible for Compensation?

If you transferred funds to the Defendants for investment purposes during the period January 1, 2019, through October 31, 2021, inclusive; are not an Excluded Party as defined in the Plan; and suffered a loss according to the Plan; you may be eligible for a Distribution Payment from the Rege Fair Fund.  Distribution Payments will be subject to a $20 Minimum Distribution Amount.

Excluded Parties are defined as: a) the Defendants and Relief Defendants; b) present or former officers or directors of Defendants or any assigns, creditors, heirs, distributees, spouses, parents, children, or controlled entities of any of the foregoing Persons or entities; c) any employee or former employee of the Defendants or any of its affiliates who has been terminated for cause or has otherwise resigned, in connection with the conduct alleged in the Complaint; d) any Person who, as of the Claims Bar Date, has been the subject of criminal charges related to the conduct alleged in the Complaint or any related Commission action; e) any firm, trust, corporation, officer, or other entity in which Defendants has or had a controlling interest; f) the Distribution Agent, its employees, and those Persons assisting the Distribution Agent in its role as the Distribution Agent; or g) any purchaser or assignee of another Person’s right to obtain a recovery from the Fair Fund for value; provided, however, that this provision will not be construed to exclude those Persons who obtained such a right by gift, inheritance, or devise.

How to Make a Claim

You must complete and sign the Claim Form and submit it to the Distribution Agent so that it is postmarked (or if not sent by U.S. Mail, received) no later than APRIL 25, 2025.

The Claim Form can be downloaded online here: View Claim Form. If you have any questions or would like the Distribution Agent to send you a Claim Form, call 1-888-391-3385 or email info@RegeFairFund.com.

If you do not complete and timely submit a Claim Form, you will not be considered for eligibility to receive a Distribution Payment under the Plan.