The US Securities and Exchange Commission has charged three Toms River, New Jersey residents over an alleged 47 million dollar affinity investment fraud that targeted members of Orthodox Jewish communities across New Jersey and New York.
Allegations of Misappropriated Funds and Ponzi Payments
According to the complaint filed in federal court in the District of New Jersey, Leor Moshe operated Capital Funding ASAP LLC between November 2019 and June 2023, raising capital from more than 87 investors. Moshe told prospective investors that their capital would fund short-term loans for small businesses, offering fixed returns that in some instances exceeded 30 percent.
Rather than directing the capital into small business financing, the SEC alleges that Moshe misappropriated more than 11 million dollars for personal use and directed over 850,000 dollars towards Ponzi-like payments to earlier investors. Total investor losses across seven states exceeded 25 million dollars.
Unregistered Broker Activity and Regulatory Remedies
The SEC further alleges that Moshe paid fellow Toms River residents Jacob Goldman and Isaac Odes to recruit investors into the scheme. Neither Goldman nor Odes were registered as broker-dealers or associated with a registered broker-dealer. The pair solicited more than 23 million dollars from at least 25 investors, negotiated terms, and facilitated collection.
The regulatory action charges Moshe with violations of the antifraud provisions of federal securities laws, while Goldman and Odes face charges for violating broker registration provisions under the Securities Exchange Act of 1934. The SEC is seeking permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and a conduct-based injunction against Moshe. The US Attorney's Office for the District of New Jersey has also announced parallel criminal charges against Moshe.
