Toms River Man Pleads Guilty in $47 Million Ponzi Scheme That Targeted Orthodox Jewish Investors
Federal prosecutors say a Toms River man admitted orchestrating a Ponzi-like investment scheme that defrauded more than 97 investors out of approximately $47 million, using millions of dollars to fund gambling and other personal expenses.
TOMS RIVER, N.J. — In a New Jersey courtroom this week, a Toms River man has pleaded guilty to scamming tens of millions of dollars from Orthodox Jews in the Toms River, Jackson, and Lakewood area.
A Toms River investment promoter has pleaded guilty to federal wire fraud after admitting he defrauded more than 97 investors—primarily members of the Orthodox Jewish community—out of approximately $47 million through a years-long Ponzi-like investment scheme.
Leor Moshe, 43, of Toms River, entered the guilty plea before U.S. District Judge Robert Kirsch in Trenton federal court. Sentencing is scheduled for Dec. 16.
According to the U.S. Attorney’s Office for the District of New Jersey, Moshe operated the scheme between June 2019 and June 2023 through his company, Capital Funding ASAP LLC.
Calls to Capital Funding ASAP went unanswered today.
Prosecutors say investor money funded gambling and personal expenses
Federal prosecutors said Moshe convinced investors their money would be used exclusively to finance short-term business loans that would generate returns ranging from 9% to 53%.
Instead, authorities said he used new investor funds to make Ponzi-style payments to earlier investors while diverting approximately $11 million for personal expenses, including gambling debts, home renovations, mortgage payments and car loans.
“The defendant turned the trust of his own religious community into a tool for fraud, exploiting personal relationships to fuel a massive Ponzi scheme,” U.S. Attorney Robert Frazer said. “Thanks to the combined efforts of our colleagues at the SEC and federal law enforcement, he has been brought to justice.”
Frazer added that his office “will continue to expose financial fraud, protect the investing public, and hold accountable those who abuse positions of trust for personal gain.”
How the scam operated
Newly filed federal court records provide a detailed look at how prosecutors say a Toms River investment promoter orchestrated a $47 million Ponzi-like scheme that targeted members of the Orthodox Jewish community in New Jersey and New York.
Leor Moshe defrauded more than 97 investors through his company, Capital Funding ASAP LLC. The criminal information filed in U.S. District Court outlines how prosecutors say the investment scheme operated between June 2019 and June 2023.
Investors promised lucrative returns from business loans
According to court documents, Moshe told investors their money would be used exclusively to provide short-term loans to businesses, promising annual returns ranging from approximately 9% to as much as 53%, depending on the investment.
Some investors received written agreements stating Capital Funding specialized in merchant financing and that their money would be used “for no other purpose.”
The agreements also emphasized that investors were relying on Moshe’s expertise in short-term lending, prosecutors said.
Instead, authorities allege investor money was routinely diverted for personal spending while additional investments were used to keep earlier investors paid.
New deposits quickly moved to crypto and earlier investors
Federal prosecutors included several examples illustrating how the alleged fraud worked.
One investor transferred approximately $380,000 to Capital Funding on Feb. 5, 2021, after signing an agreement promising returns of roughly 9% to 10%.
According to prosecutors, the company’s bank account contained only about $35,000 before the deposit. Three days later—and without any additional deposits—Moshe allegedly transferred approximately $88,000 from the business account into his personal cryptocurrency account.
In another example, two investors wired approximately $350,000 in January 2023 after being promised their money would finance short-term business loans.
Court records allege that on the same days those deposits were received, Moshe transferred approximately $262,000 to two earlier investors using the newly deposited funds.
Key Points
- Toms River resident Leor Moshe pleaded guilty to federal wire fraud.
- Prosecutors say he defrauded more than 97 investors out of approximately $47 million.
- Authorities allege about $11 million was spent on gambling, home renovations, mortgages and other personal expenses instead of investments.
$2 million investment allegedly paid earlier investors
Perhaps the largest example described by prosecutors involved a $2 million investment tied to property in Jackson Township.
According to court filings, Moshe persuaded an investor to sign a promissory note stating the money was secured by a Jackson property and would earn approximately 53% interest within one year.
The investor was allegedly told the money would still be used to finance short-term business loans, with Moshe personally guaranteeing repayment.
Federal prosecutors allege that after the $2 million wire transfer was received on Feb. 10, 2023, the Capital Funding account held approximately $349,000 beforehand.
Over the next three days, prosecutors say Moshe distributed approximately $820,000 to five earlier investors without receiving any additional deposits, behavior authorities describe as characteristic of a Ponzi scheme.
FBI says dozens of victims lost millions
Federal Bureau of Investigation Newark Special Agent in Charge Stefanie Roddy said the fraud caused devastating financial losses for dozens of victims.
“Investment fraud can drain people’s bank accounts and also upend their lives,” Roddy said. “Dozens of victims placed their trust in promises made by Moshe, who admits he used their money to pay off his gambling habit, among other things.”
She added, “FBI Newark will pursue anyone who breaks the law to exploit victims, and we will do all we can to bring justice to every victim impacted by fraudsters.”
Wire fraud carries a maximum penalty of 20 years in federal prison and substantial financial penalties. Any sentence will be determined by the court.
The investigation was conducted by the FBI Newark Field Office and the Securities and Exchange Commission’s New York Regional Office.
Affinity fraud schemes often target members of close-knit religious, ethnic, or professional communities by exploiting trust and personal relationships. Federal authorities say this case illustrates how large-scale investment fraud can devastate victims while enriching those behind the schemes.
FAQ
Who pleaded guilty?
Leor Moshe, 43, of Toms River.
How much money was involved?
Approximately $47 million from more than 97 investors.
Who were the victims?
Federal prosecutors said the victims were predominantly members of the Orthodox Jewish community.
How was the scheme carried out?
Prosecutors said investors were promised returns from short-term business loans, but new investments were instead used to pay earlier investors while millions were diverted for personal use.
When will Moshe be sentenced?
Dec. 16 in U.S. District Court in Trenton.
Source: U.S. Attorney’s Office for the District of New Jersey, FBI Newark Field Office
