SEC Charges Three Toms River Residents in $47 Million Affinity Fraud Targeting Orthodox Jewish Communities

WASHINGTON, D.C. — In a sweeping crackdown on affinity fraud, the Securities and Exchange Commission (SEC) charged three residents of Toms River, New Jersey, on August 13, 2026, for their involvement in a sophisticated, multi-year Ponzi scheme. The operation allegedly raised approximately $47 million from more than 87 investors, predominantly targeting members of Orthodox Jewish communities across New York and New Jersey.

The federal complaint, filed in the U.S. District Court for the District of New Jersey, details how the ringleaders exploited close-knit community ties, shared cultural backgrounds, and mutual trust to siphon millions of dollars into personal luxuries and Ponzi-style payouts. Simultaneously, the U.S. Attorney’s Office for the District of New Jersey announced parallel criminal charges against the scheme’s primary orchestrator, Leor Moshe.

Main Facts of the Case

According to the SEC’s filings, the fraudulent enterprise was spearheaded by Leor Moshe through his company, Capital Funding ASAP LLC. Between November 2019 and June 2023, Moshe leveraged his active membership within the Orthodox Jewish community to project an image of financial success, reliability, and communal alignment.

Moshe pitched Capital Funding ASAP LLC to prospective investors as a lucrative, low-risk vehicle. He claimed that capital pooled into the firm would be deployed directly to fund short-term bridge loans for struggling or expanding small businesses. To entice victims, Moshe promised extraordinary fixed returns, with some proposals dangling projected gains in excess of 30 percent.

However, the SEC alleges that the promise of small-business financing was entirely fictitious. Instead of issuing commercial loans, Moshe allegedly diverted more than $11 million of investor capital for his own personal enrichment, purchasing lavish assets and sustaining an upscale lifestyle. Furthermore, more than $850,000 was cycled back to fund Ponzi-like disbursements—paying off earlier investors with capital from newer arrivals to maintain the illusion of a profitable, functioning enterprise.

To expand the reach of the operation, Moshe enlisted two fellow Toms River residents, Jacob Goldman and Isaac Odes. Neither Goldman nor Odes was registered as a broker-dealer or associated with any registered financial institution, a legal requirement for individuals soliciting securities investments. Acting as unlicenced intermediaries, Goldman and Odes aggressively recruited investors, negotiated investment terms, and facilitated the massive transfer of funds into Moshe’s accounts.

By the time the scheme unraveled, investors spanning multiple states—including Arizona, Connecticut, Florida, Illinois, New Jersey, New York, and Ohio—suffered collective losses exceeding $25 million.

Chronology of the Fraud

A detailed timeline reconstructed from regulatory filings and investigative disclosures highlights how the multi-year operation evolved, expanded, and ultimately collapsed:

• November 2019: Leor Moshe officially launches Capital Funding ASAP LLC and begins soliciting capital from acquaintances, friends, and fellow members of the Orthodox Jewish community in New Jersey and New York. He establishes the core narrative that funds will be dedicated to short-term small-business loans.
• 2020 – 2021: As the COVID-19 pandemic strains traditional financing channels, Moshe capitalizes on economic anxieties. He ramps up his pitch, utilizing promises of double-digit returns (exceeding 30% in some cases) to draw in larger sums of money from an expanding network of trusting victims.
• 2021 – 2022: To accelerate capital acquisition, Moshe brings in Jacob Goldman and Odes to act as unofficial brokers. Unregistered and operating outside regulatory oversight, Goldman and Odes successfully solicit over $23 million from at least 25 new investors, significantly broadening the geographic and financial footprint of the fraud.
• June 2023: The operational timeline of the scheme concludes. By this point, Capital Funding ASAP LLC has raised roughly $47 million from more than 87 distinct investors, while a massive deficit builds beneath the surface due to personal misappropriation and Ponzi-style redemptions.
• August 13, 2026: Following a comprehensive joint investigation involving the SEC, the Federal Bureau of Investigation (FBI), and the U.S. Attorney’s Office for the District of New Jersey, civil enforcement actions are officially filed. The U.S. Attorney’s Office simultaneously announces parallel criminal indictments against Moshe.

Supporting Data and Financial Breakdown

The sheer scale of the Capital Funding ASAP LLC operation underscores the devastating impact of affinity fraud. Quantitative metrics provided in the regulatory complaints illustrate the depth of the deception:

• Total Capital Raised: Approximately $47 million was funneled into the enterprise by investors between November 2019 and June 2023.
• Total Investor Pool: More than 87 individual investors, primarily concentrated within Orthodox Jewish communities in New Jersey and New York, participated in the scheme.
• Geographic Spread: Victims hailed from at least seven states, including Arizona, Connecticut, Florida, Illinois, New Jersey, New York, and Ohio.
• Net Investor Losses: Total realized losses surpassed $25 million once the scheme collapsed.
• Misappropriated Funds: Leor Moshe allegedly diverted more than $11 million for direct personal use.
• Ponzi Payments: More than $850,000 was utilized to service earlier investors, creating a false sense of security and encouraging secondary investments.
• Unregistered Intermediary Yield: Jacob Goldman and Isaac Odes successfully recruited more than $23 million from at least 25 investors through illicit, unregistered solicitations.

Official Responses and Regulatory Statements

Law enforcement and regulatory authorities have forcefully condemned the defendants’ actions, emphasizing the particularly predatory nature of frauds that weaponize shared religious and cultural identities against vulnerable savers.

Thomas P. Smith, Jr., Associate Director of the SEC’s New York Regional Office, didn’t mince words regarding the psychological tactics employed by the defendants.

"As our complaint alleges, the defendants promised some investors that they could see returns in excess of thirty percent which definitely falls into the ‘if it sounds too good to be true, it probably is’ category," Smith stated. "In reality, the Jersey Shore triumvirate took advantage of their relationships within Orthodox Jewish communities to raise money for Moshe’s scheme and enrich themselves."

The legal mechanisms deployed by the SEC are robust. The civil complaint charges Moshe with multiple violations of the antifraud provisions enshrined in federal securities laws. Meanwhile, Goldman and Odes face formal charges for violating the broker registration provisions outlined in Section 15(a) of the Securities Exchange Act of 1934.

The SEC is pursuing aggressive remedies in federal court, including:

• Permanent injunctive relief to bar future violations.
• Disgorgement of all ill-gotten gains, paired with prejudgment interest.
• Substantial civil monetary penalties against all three defendants.
• A conduct-based injunction specifically targeting Moshe to prevent him from engaging in similar financial activities.

In addition to the SEC’s civil enforcement actions, the U.S. Attorney’s Office for the District of New Jersey initiated parallel criminal proceedings against Moshe, signaling that prison time is a distinct possibility for the primary architect of the fraud. Both the SEC and federal prosecutors acknowledged the critical investigative support provided by the FBI.

Broader Implications and Preventing Affinity Fraud

The case of Capital Funding ASAP LLC serves as a stark reminder of the persistent threat posed by "affinity fraud"—a specialized type of investment scam that preys upon members of identifiable groups, such as religious organizations, ethnic minorities, professional associations, or immigrant communities.

Why Affinity Fraud Works

Fraudsters who engage in affinity fraud often either belong to the targeted group themselves or intentionally recruit individuals who do. By embedding themselves within a community’s social fabric, perpetrators build an immediate, unearned sense of trust. Victims are often lulled into a false sense of security, assuming that shared values, religious observances, or cultural backgrounds preclude dishonest behavior. Consequently, victims frequently skip basic due diligence, failing to verify the background of the promoter, check registrations, or scrutinize the actual mechanics of the proposed investment.

Regulatory Guidance and Resources

In the wake of this enforcement action, federal regulators are intensifying educational outreach to safeguard communities from predatory schemes. The SEC’s Office of Investor Education and Assistance maintains dedicated resources to help the public identify and avoid targeted financial scams.

Investors are strongly encouraged to consult the SEC’s specialized webpage on Investment Scams Targeting Groups for practical guidance on recognizing warning signs. Furthermore, the SEC urges all individuals to utilize Investor.gov—a free online tool—to verify the professional background, licensing status, and disciplinary history of anyone offering or selling securities.

As the legal proceedings against Leor Moshe, Jacob Goldman, and Isaac Odes progress through the federal court system in New Jersey, financial watchdogs hope this high-profile case will serve as both a deterrent to would-be fraudsters and a vital wake-up call for communities to verify before they trust.