TRENTON, N.J. — After the confession and guilty plea of Leor Moshe in a federal case, the U.S. Securities and Exchange Commission has filed civil fraud charges against three Toms River residents accused of orchestrating or helping promote a $47 million investment scheme that allegedly targeted members of Orthodox Jewish communities across several states.
The SEC alleges Leor Moshe, 43, used his company, Capital Funding ASAP LLC, to solicit investors between November 2019 and June 2023 by promising unusually high returns from short-term business loans that prosecutors say were largely fictitious.
Federal regulators also charged Toms River residents Jacob Goldman and Isaac Odes, alleging they helped recruit investors despite not being registered as broker-dealers.
The civil action was announced the same day federal prosecutors revealed Moshe pleaded guilty to wire fraud in a parallel criminal case.
SEC says affinity fraud exploited community trust
According to the SEC complaint, Moshe persuaded more than 87 investors—most of whom were active members of Orthodox Jewish communities in New Jersey and New York—to invest by promising fixed returns generated through short-term commercial lending.
Instead, the SEC alleges Moshe diverted more than $11 million for personal expenses and used more than $850,000 to make Ponzi-like payments to earlier investors.
The complaint further alleges Goldman and Odes solicited more than $23 million from at least 25 investors, negotiated investment terms and helped collect investment funds without being registered securities professionals.
“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,” said Thomas P. Smith Jr., Associate Director of the SEC’s New York Regional Office.
Key Points
- The SEC charged three Toms River men in connection with an alleged $47 million affinity investment fraud.
- Regulators allege Leor Moshe misappropriated more than $11 million and used investor funds for Ponzi-like payments.
- Jacob Goldman and Isaac Odes are accused of soliciting more than $23 million from investors without registering as broker-dealers.
“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,” Smith added.
Investors across seven states allegedly lost millions
According to the SEC, investors from Arizona, Connecticut, Florida, Illinois, New Jersey, New York and Ohio collectively lost more than $25 million.
The agency is seeking permanent injunctions, disgorgement of alleged ill-gotten gains with interest, civil penalties and a conduct-based injunction against Moshe.
The SEC’s civil lawsuit follows Moshe’s guilty plea in federal court to wire fraud. Criminal charges have not been announced against Goldman or Odes in the U.S. Attorney’s release issued Thursday.
Affinity fraud schemes often exploit trust within religious, ethnic or professional communities, making victims more likely to invest based on personal relationships. Federal authorities say this case illustrates the financial harm that can result when those trusted connections are abused.
FAQ
Who was charged by the SEC?
Leor Moshe, Jacob Goldman and Isaac Odes, all of Toms River.
How much money was raised?
Approximately $47 million from more than 87 investors, according to the SEC.
Who were the alleged victims?
The SEC says the investors were primarily members of Orthodox Jewish communities in New Jersey and New York.
What are Goldman and Odes accused of doing?
The SEC alleges they recruited investors, negotiated investment terms and collected funds without being registered broker-dealers.
Is there also a criminal case?
Yes. The U.S. Attorney’s Office announced that Moshe pleaded guilty to federal wire fraud stemming from similar conduct.
Source: U.S. Securities and Exchange Commission, U.S. Attorney’s Office for the District of New Jersey
