The Orthodox Jewish community was the target of an investment fraud scheme that raised approximately US$47 million from investors, U.S. authorities are alleging.
The U.S. Securities and Exchange Commission (SEC) charged three men — Leor Moshe, Jacob Goldman and Isaac Odes — for allegedly duping investors in a scheme that promised high returns from investing in short-term small business loans through Moshe’s company, Capital Funding ASAP LLC.
In its complaint, the SEC alleged that, between June 2019 and 2023, the scheme raised approximately US$47 million from investors, promising returns of between 9% and 53%.
But, rather than investing their money as promised, the SEC alleged that Moshe misappropriated approximately US$11 million for personal use, and more than US$850,000 was used to make Ponzi payments to early investors.
“In reality, Moshe used the money to make Ponzi-like payments to earlier investors and for personal expenses such as gambling debts, home renovations, mortgage loans, and car loans,” the SEC alleged.
In a parallel criminal action, Moshe was also charged, and pleaded guilty to wire fraud in U.S. district court in New Jersey. He is scheduled to be sentenced on Dec. 16 in that case.
The SEC’s complaint seeks disgorgement with interest and civil penalties, permanent injunctions, and a ban against Moshe.
The allegations in the SEC’s case haven’t been proven.