$47M Affinity Scam Unraveled: SEC Charges Toms River Trio for Targeting Local Communities
the staff of the Ridgewood blog
Toms River NJ, The Securities and Exchange Commission (SEC) has officially charged three Toms River, New Jersey residents for their involvement in a massive affinity investment fraud scheme. The alleged scam raised approximately $47 million from over 87 investors, primarily targeting members of Orthodox Jewish communities across New Jersey and New York.
According to the complaint filed in federal court in the District of New Jersey, the scheme operated between November 2019 and June 2023 under the company name Capital Funding ASAP LLC.
Key Case Takeaways at a Glance
Total Capital Raised: Approx. $47 million from 87+ investors
Total Investor Losses: Exceeds $25 million across 7 states (AZ, CT, FL, IL, NJ, NY, OH)
Primary Defendants: Leor Moshe (Orchestrator), Jacob Goldman, and Isaac Odes (Recruiters)
Promised Returns: Promised fixed returns upwards of 30%+
Alleged Misappropriation: Over $11 million diverted for personal use; $850,000+ used for Ponzi-like payouts
Inside the $47 Million Capital Funding ASAP Scheme
The SEC alleges that Leor Moshe, the primary orchestrator, leveraged shared cultural and religious ties within the Orthodox Jewish community to build trust with potential investors.
Moshe pitched investments in his entity, Capital Funding ASAP LLC, claiming investor funds would be used to finance high-yield, short-term loans for small businesses. Investors were promised lucrative fixed returns, in some cases exceeding 30% annually.
Where Did the Money Really Go?
Instead of funding small business loans as promised, the SEC alleges that Moshe:
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Diverted $11+ million directly for his personal use.
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Paid over $850,000 in classic Ponzi-style distributions to earlier investors to keep the scheme hidden.
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Compensated unregistered recruiters to funnel more money into the operation.
“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,” stated Thomas P. Smith, Jr., Associate Director of the SEC’s New York Regional Office. “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.”
Unregistered Brokers and Unlawful Recruitment
To expand the fraud, Moshe allegedly hired fellow Toms River residents Jacob Goldman and Isaac Odes to solicit capital. Neither Goldman nor Odes were registered as broker-dealers or associated with a registered broker-dealer firm.
Together, Goldman and Odes successfully recruited at least 25 investors, raising more than $23 million by negotiating terms and facilitating money transfers on behalf of the scheme.
The fallout was widespread: investors spanning Arizona, Connecticut, Florida, Illinois, New Jersey, New York, and Ohio suffered collective net losses surpassing $25 million.
SEC Charges and Parallel Criminal Action
The SEC’s civil lawsuit seeks comprehensive legal penalties against all three defendants:
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Leor Moshe: Charged with violating the core antifraud provisions of federal securities laws. The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains with interest, civil monetary penalties, and a conduct-based injunction.
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Jacob Goldman & Isaac Odes: Charged with violating the broker registration provisions of the Securities Exchange Act of 1934.
In addition to the SEC’s civil action, the U.S. Attorney’s Office for the District of New Jersey announced parallel criminal charges against Leor Moshe for his role in the conduct. The SEC expressed gratitude to the U.S. Attorney’s Office and the FBI for their assistance in the investigation.
How to Protect Yourself Against Affinity Fraud
Affinity fraud occurs when scammers exploit trust within an identifiable group—such as religious, ethnic, or professional communities—to carry out financial fraud. Scammers count on community connections to bypass standard investor caution.
Red Flags & Protection Tips:
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Beware of Unrealistic Returns: Any investment offering guaranteed returns above market averages (such as 30%+) carries extreme risk.
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Verify Broker Credentials: Always verify whether an individual offering securities is licensed by using the free tool at Investor.gov.
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Never Rely Solely on Word of Mouth: Even if a close friend, neighbor, or community leader recommends an investment, perform independent due diligence.
Frequently Asked Questions (FAQ)
What is affinity investment fraud?
Affinity fraud is a scam that targets members of specific groups (e.g., religious, ethnic, or elderly communities). Fraudsters exploit shared identity and trust to convince victims to invest in fraudulent schemes.
Who was charged in the Toms River SEC case?
The SEC charged Toms River residents Leor Moshe (the scheme’s orchestrator) along with Jacob Goldman and Isaac Odes (unregistered recruiters).
How much money was lost in the Capital Funding ASAP scheme?
While the scheme raised roughly $47 million, investors across seven states ultimately lost more than $25 million.
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I am not surprised
Nobody ever heard of Bernie Madoff?
Greed gets you every time. 30 percent return? what sort of dope believes that