SEC v. David Kushner

David Kushner and his company La Mancha Funding Corp. allegedly defrauded nearly two dozen investors out of approximately $2.1 million in a series of private securities offerings. Kushner and La Mancha allegedly made material misrepresentations to the investors about what would be done with the investors’ funds, secretly taking hundreds of thousands of dollars in undisclosed “fees” for themselves out of the intended loan proceeds. The defendants also allegedly misappropriated nearly $1.5 million of loan repayments that, according to the terms of the LLC operating agreements, were supposed to go back to the investors.

Summary generated from official Securities and Exchange Commission press release