The Securities and Exchange Commission has charged three Toms River, New Jersey residents with running a $47 million affinity fraud that drew money from more than 87 investors, most of them members of Orthodox Jewish communities in New York and New Jersey. The complaint, filed August 13, 2026 in the District of New Jersey, alleges that orchestrator Leor Moshe promised fixed returns from short-term small-business loans while spending investor money on himself.
What happened
Between November 2019 and June 2023, Moshe convinced investors to place money with his company, Capital Funding ASAP LLC. He told them their funds would finance short-term loans for small businesses and generate significant fixed returns. Some investors were promised returns above 30 percent.
Rather than funding business loans, Moshe misappropriated more than $11 million for personal use, according to the complaint. He also directed more than $850,000 in Ponzi-like payments to earlier investors to keep the scheme alive.
Key facts in the SEC complaint
| Metric | Alleged figure |
|---|---|
| Total raised | About $47 million |
| Investors | More than 87 |
| Scheme period | November 2019 to June 2023 |
| Misappropriated for personal use | More than $11 million |
| Ponzi-like payments | More than $850,000 |
| Promised returns to some investors | Above 30 percent |
| Recruited capital | More than $23 million from 25+ investors |
| Investor losses across seven states | More than $25 million |
Investors from seven states — Arizona, Connecticut, Florida, Illinois, New Jersey, New York, and Ohio — lost more than $25 million in total.
The recruiters and their registration failure
Moshe did not work alone. He paid fellow Toms River residents Jacob Goldman and Isaac Odes to recruit investors. Neither man was registered as a broker-dealer or associated with any registered firm.
Together, Goldman and Odes solicited more than $23 million from at least 25 investors. They negotiated investment terms and facilitated the collection of funds, conduct the SEC says violated the broker registration provisions of the Securities Exchange Act of 1934.
Parallel criminal charges and what happens next
The U.S. Attorney’s Office for the District of New Jersey announced parallel criminal charges against Moshe the same day. The SEC’s civil complaint charges Moshe with violations of the antifraud provisions of the federal securities laws and seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against all three 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,” said Thomas P. Smith, Jr., associate director of the SEC’s New York Regional Office. He added that the trio took advantage of relationships within Orthodox Jewish communities to raise money and enrich themselves.
Why affinity fraud works and how to resist it
Affinity fraud succeeds because trust travels through communities faster than verification. A recommendation from a neighbor or fellow congregant carries social weight that a cold call never could. Regulators have warned for years that community-based schemes spread through exactly these channels.
- Verify registration: Anyone selling investments must generally be registered. FINRA’s BrokerCheck lists registration status and disciplinary history at no cost.
- Question the returns: Promises of fixed returns above 30 percent have no legitimate baseline in short-term business lending.
- Follow the custody: Ask who holds the money, who audits the books, and whether an independent custodian exists.
- Take the referral, then verify independently: A trusted referral deserves a background check of the seller’s record, not a waiver of one.
Frequently asked questions
Who is Leor Moshe?
Leor Moshe is a Toms River, New Jersey resident who ran Capital Funding ASAP LLC. The SEC charged him on August 13, 2026 with orchestrating a $47 million affinity fraud, and federal prosecutors in New Jersey filed parallel criminal charges.
How much did investors lose in the Capital Funding ASAP scheme?
The SEC alleges more than $25 million in losses across more than 87 investors in seven states, with over $11 million misappropriated for Moshe’s personal use.
What can investors in the case do now?
Investors who placed money with Capital Funding ASAP LLC should gather their records, watch for court and SEC notices, and speak with a securities attorney about recovery options.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in investment fraud cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
- website for a free consultation
Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
This article is informational and does not constitute legal or investment advice. AlphaBetaStock.com is a news publisher and is not a law firm.
