A New Jersey man has pleaded guilty to defrauding nearly 100 victims of more than $47 million in what has been seen as a major Ponzi scheme that saw the man purport that he would invest the money, only to end up spending it on his gambling habit.
Man Pleads Guilty as His Ponzi Scheme Defrauded Nearly 100 Victims
Identified as Leor Moshe, 43, of Toms River, the man targeted the Orthodox Jewish community he himself belonged to. Moshe convinced members sof his religious synagogue to invest money in his company, Capital Funding ASAP, LLC. The scheme got underway in 2019 and would run for the next four years before it finally fell through.
Federal Bureau of Investigation, Newark Field Office, Special Agent in Charge Stefanie Roddy had this to say, commenting on the case:
“Investment fraud can drain people’s bank accounts and also upend their lives. 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. 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.”
The company purported that it offered immediate capital to companies in need, with returns amounting to anything between 22% and 53% in a year, or 9% to 10% in two to three months.
No return was generated on the money forwarded to Moshe, however, the man used the money to fund his lifestyle, which included a debilitating addiction to gambling. Apart from paying gambling debts, Moshe would use a portion of the money to carryout home renovations, cover mortgages and car loans.
Up to 20 Years in Prison Along with Financial Penalties
He also maintained his scheme by paying off earlier investors using the proceeds from new ones.
Moshe is said to have lost $25 million by mid-2023, when his deeds came to light, with the man now facing up to 20 years in prison, a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest.
The Department of Justice’s official press statement thanked the efforts of multiple enforcement agencies, including the US Securities and Exchange Commission, that have made it possible to bring Moshe to justice.