X0202 4 2006-10-17 0001001258 ASTA FUNDING INC ASFI 0001046400 STERN ARTHUR C/O ASTA FUNDING, INC. 210 SYLVAN AVENUE ENGLEWOOD CLIFFS NJ 07632 1 1 Chairman and Executive V.P. Common Stock, par value $.01 per share 2006-10-17 4 S 0 8000 34.896 D 223084 D Common Stock, par value $.01 per share 2006-10-19 4 S 0 8000 34.34 D 215084 D The sales reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by Mr. Stern on September 13, 2006. Mr. Stern indirectly owns (a) 214,542 shares of Common Stock, which represents Mr. Stern's pecuniary interest in shares held by Asta Group, Incorporated, (b) 349,460 shares of Common Stock, which represents Mr. Stern's pecuniary interest in shares held by Stern Family Investors, LLC, and (c) 1,225 shares of Common Stock, which represents Mr. Stern's pecuniary interest in shares held by GMS Family Investors LLC, all of which shares are not included in Table I. Mr. Stern does not have voting or investment power with respect to any of the shares held by either LLC and disclaims beneficial ownership of the shares owned by the LLCs. /s/ Erik W. Johnson, Esq., Attorney-In-Fact 2006-10-19