SEC Cracks Down on $47 Million Affinity Fraud Targeting Orthodox Jewish Communities in New York and New Jersey

WASHINGTON, D.C. — Federal regulators have shuttered a multi-million-dollar investment fraud scheme that preyed upon tight-knit religious communities across the Northeast. The Securities and Exchange Commission (SEC) announced civil charges today against three residents of Toms River, New Jersey, for their alleged orchestration and execution of a sophisticated affinity fraud that siphoned roughly $47 million from more than 87 investors.

The primary victims of the scheme were members of Orthodox Jewish communities in New Jersey and New York, though the fallout eventually touched individuals in Arizona, Connecticut, Florida, Illinois, and Ohio. According to federal court documents filed in the District of New Jersey, the fraudulent enterprise promised lucrative, risk-free returns on short-term small business loans. Instead, the principals allegedly funded lavish personal lifestyles, perpetuated a classic Ponzi scheme, and left trusting investors facing catastrophic financial devastation exceeding $25 million.

The civil enforcement action coincides with parallel criminal charges brought by the U.S. Attorney’s Office for the District of New Jersey, signaling a coordinated, multi-agency crackdown on financial predators who weaponize shared cultural and religious identities to lower the guard of prospective investors.

Main Facts of the Case

At the center of the regulatory complaint is Leor Moshe, a Toms River resident accused of masterminding the operation through his entity, Capital Funding ASAP LLC. Between November 2019 and June 2023, Moshe allegedly utilized his standing within the Orthodox Jewish community to project an aura of piety, trustworthiness, and financial acumen.

Moshe pitched Capital Funding ASAP LLC as a secure, high-yield investment vehicle. He reportedly told investors that their capital would be deployed directly into short-term bridge loans for struggling or expanding small businesses. To entice participation, the scheme dangled extraordinary financial incentives, promising fixed returns that, in some instances, exceeded 30 percent annually.

However, the SEC’s complaint paints a starkly different picture of how the funds were actually handled. Rather than functioning as a legitimate commercial lending operation, Capital Funding ASAP LLC operated as a personal piggybank for Moshe and a financial treadmill designed to give the illusion of legitimacy.

Federal investigators allege that Moshe misappropriated more than $11 million of investor funds outright, diverting the money for personal use. An additional $850,000 was allegedly funneled into Ponzi-style payments, used to pay off earlier investors to maintain the illusion of steady, reliable returns and encourage them—and others—to plow more money into the venture.

To expand the reach of the enterprise, Moshe enlisted two fellow Toms River residents, Jacob Goldman and Isaac Odes. Neither Goldman nor Odes was registered as a broker-dealer with the SEC, nor were they associated with any registered brokerage firm—a legal requirement designed to protect consumers by ensuring that individuals selling securities meet specific professional and ethical standards.

Despite this lack of registration, Goldman and Odes allegedly acted as active recruiters for Moshe’s scheme. Working the networks within the Orthodox Jewish communities of New Jersey and New York, the pair solicited more than $23 million from at least 25 investors. They negotiated investment terms, collected funds, and served as the vital bridge of trust between Moshe and prospective victims who might otherwise have been hesitant to hand over their savings.

When the house of cards finally collapsed, the human and financial toll was immense. Out of the $47 million originally raised from more than 87 participants, investors suffered net losses exceeding $25 million.

Chronology of the Fraud

To understand how a scheme of this magnitude operated unchecked for nearly four years, federal investigators have reconstructed the timeline of Capital Funding ASAP LLC from its inception to its eventual unravelling.

November 2019: Genesis of the Scheme

Leor Moshe establishes Capital Funding ASAP LLC and begins laying the groundwork for the fraud. Capitalizing on pre-existing social and religious networks within the Orthodox Jewish communities of Ocean County, New Jersey, and parts of New York, Moshe begins pitching the enterprise as a philanthropic-adjacent, high-yield commercial lending platform. By leveraging shared cultural touchpoints, he bypasses the traditional skepticism that investors might naturally harbor toward high-return investment offers from strangers.

2020–2022: Expansion and Recruitment

As the COVID-19 pandemic strains small businesses nationwide, Moshe’s pitch—that his fund is actively supporting small enterprises with short-term loans—gains emotional resonance. To accelerate capital collection, Moshe brings in Jacob Goldman and Odes to act as unregistered sales agents. Operating as an informal network, Goldman and Odes target affluent members of their religious communities, securing millions in fresh capital through personal appeals, synagogue connections, and community referrals. During this period, the fund routinely cycles capital, using newly injected funds from unsuspecting latecomers to pay out fabricated "returns" to early investors, thereby cementing its reputation as a reliable wealth generator.

Late 2022–Early 2023: The Apex of the Operation

The enterprise reaches its peak accumulation phase, having amassed roughly $47 million total from over 87 investors spanning multiple states, including Arizona, Connecticut, Florida, Illinois, and Ohio. Behind the scenes, however, the financial structure is buckling under the weight of Moshe’s alleged personal withdrawals—totaling over $11 million—and the relentless demand for liquidity from aging portions of the Ponzi structure.

June 2023: The Collapse

The scheme reaches the end of its operational runway. As liquidity dries up and redemptions can no longer be met, the illusion shatters. Investors who had poured their life savings, retirement accounts, and children’s education funds into Capital Funding ASAP LLC find themselves cut off, unable to recover their principal or secure the promised 30-plus percent returns.

August 13, 2026: Public Reckoning

Following an extensive, multi-year investigation involving the SEC, the Federal Bureau of Investigation (FBI), and the U.S. Attorney’s Office for the District of New Jersey, federal authorities drop the hammer. The SEC files its civil enforcement complaint in federal court, while the U.S. Attorney’s Office unveils parallel criminal indictments against Moshe, marking the official beginning of accountability for the Jersey Shore triumvirate.

Supporting Financial Data and Metrics

The scale of the Capital Funding ASAP LLC fraud is underscored by the sobering figures compiled by federal investigators in their civil complaint and regulatory disclosures:

• Total Capital Raised: Approximately $47 million, gathered from investors who believed their money was being put to productive use in the small business lending sector.
• Total Investor Count: More than 87 distinct investors, primarily drawn from Orthodox Jewish communities in New York and New Jersey, with secondary pockets of victims residing in Arizona, Connecticut, Florida, Illinois, and Ohio.
• Total Net Losses: Exceeding $25 million, representing life savings, retirement capital, and familial wealth completely wiped out by the collapse.
• Personal Misappropriation: Over $11 million allegedly diverted by Leor Moshe directly for personal expenditures and unauthorized uses, bypassing the business accounts entirely.
• Ponzi-Style Recirculation: More than $850,000 funneled into payments for earlier investors to maintain the illusion of profitability and encourage continued investment.
• Unregistered Broker Impact: Jacob Goldman and Isaac Odes successfully solicited more than $23 million from at least 25 separate investors, operating completely outside the regulatory oversight of registered broker-dealers.
• Promised Returns: Upwards of 30 percent annually, an astronomical yield that regulators highlight as a classic textbook indicator of high-risk or fraudulent investment offerings.

Official Responses and Regulatory Warnings

The announcement of the charges brought swift commentary from federal law enforcement and regulatory officials, who used the case to highlight both the cruelty of affinity fraud and the vital importance of investor vigilance.

Thomas P. Smith, Jr., Associate Director of the SEC’s New York Regional Office, did not mince words when describing the mechanics of the scam and the psychological manipulation 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 SEC’s legal filings charge Leor Moshe with severe violations of the antifraud provisions enshrined in federal securities laws. Meanwhile, his alleged co-conspirators, Jacob Goldman and Isaac Odes, face charges for violating the strict broker registration provisions mandated by Section 15(a) of the Securities Exchange Act of 1934.

The Commission’s civil lawsuit is seeking a comprehensive suite of remedies:

• Permanent Injunctive Relief: To bar the defendants from engaging in future violations of federal securities laws.
• Disgorgement of Ill-Gotten Gains: Forcing the defendants to surrender all financial benefits derived from the fraud, augmented by prejudgment interest.
• Civil Penalties: Monetary fines assessed against Moshe, Goldman, and Odes to punish unlawful conduct and deter future market participants from similar malfeasance.
• Conduct-Based Injunctions: Specific restrictions targeting Moshe to prevent him from participating in similar business ventures or capital-raising activities in the future.

In tandem with the SEC’s civil actions, the U.S. Attorney’s Office for the District of New Jersey announced criminal charges against Moshe, exposing him to potential prison time and severe criminal fines. The SEC formally acknowledged the indispensable investigative assistance provided by the U.S. Attorney’s Office and the Federal Bureau of Investigation (FBI) in bringing the multi-agency case to fruition.

Protecting Vulnerable Communities

Recognizing that affinity fraud—where fraudsters exploit religious, ethnic, professional, or social ties to build trust—is a particularly insidious form of financial crime, regulatory bodies are urging heightened awareness.

The SEC’s Office of Investor Education and Assistance maintains dedicated resources to help insulate targeted demographics from predators. Officials have directed public attention to the agency’s online portal addressing Investment Scams Targeting Groups, which provides actionable guidance on recognizing community-based financial manipulation.

Furthermore, regulators reiterated a fundamental rule of thumb for anyone approached with an investment opportunity: always verify the credentials of the person selling the product. Investors are encouraged to utilize Investor.gov to perform background checks on brokers, investment advisers, and firms before parting with a single dollar, ensuring that the individuals soliciting funds are legally registered and properly supervised.

Broader Implications of the Scandal

The unfolding legal drama surrounding Capital Funding ASAP LLC holds profound implications for how financial crime is investigated, prosecuted, and prevented within distinct cultural and religious enclaves.

1. The Perils of Affinity Fraud

Affinity fraud remains one of the most difficult financial crimes to intercept because it weaponizes community bonds. Victims are often conditioned to trust individuals who share their faith, cultural background, or social circle, leading them to bypass the rigorous due diligence they might exercise with an institutional financial advisor. When a community insider like Moshe, backed by recruiters like Goldman and Odes, violates that trust, the psychological trauma often matches or exceeds the financial loss, fracturing community relationships and breeding widespread skepticism and suspicion.

2. The Enforcement Toll on Unregistered Intermediaries

The inclusion of Jacob Goldman and Isaac Odes in both SEC and potential criminal actions underscores a vital regulatory message: facilitating an unregistered securities offering is a serious crime, regardless of whether you are the primary architect of the fraud. By holding middlemen accountable for sourcing millions in capital without proper registration, federal regulators are sending a clear warning to independent finders, unregulated brokers, and community pitchmen who operate outside the bounds of securities law.

3. The Growing Cross-Agency Collaboration

The seamless coordination between the SEC’s New York Regional Office, the U.S. Attorney’s Office for the District of New Jersey, and the FBI highlights a robust federal posture against white-collar crime. By pursuing both civil restitution through the SEC and punitive criminal penalties through the Department of Justice, federal authorities ensure that perpetrators face comprehensive consequences—stripping them of their ill-gotten wealth while holding them personally accountable through criminal prosecution.

As the legal proceedings in the District of New Jersey move forward, the case of Capital Funding ASAP LLC stands as a stark reminder of the vigilance required in the modern financial landscape. For investors across the country—and particularly within tight-knit communities targeted by predatory actors—the golden rule remains unchanged: no matter how trusted the messenger, high-yield promises must always be scrutinized, verified, and checked against regulatory authorities before any capital is committed.