Ponzi Scheme Fuled Mansion, Cars, and Gifts! Millions Siphoned!

U.S. Securities and Exchange Commission Litigation Release No. 26481, dated February 11, 2026.

The SEC secured final judgments against John David Gessin, Equifunds, Inc., and Ice Fleet LLC for a fraudulent scheme that raised over $1.6 million from five retail investors. Gessin misappropriated investor funds for personal expenses, leading to court orders for disgorgement, prejudgment interest, and civil penalties against the defendants.

In Plain English

Imagine someone promised to invest your money wisely, but instead used it to buy fancy cars and pay their own bills. That's what happened here. The people who invested their savings lost a lot of money because the person in charge took it for themselves. Now, the court has ordered them to pay back the money they took, plus extra, and has banned the main person from working with investments in the future.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

  1. The Promise John David Gessin, through Equifunds, Inc. and Ice Fleet LLC, solicited investments from individuals, promising that their money would be used strictly for business purposes.
  2. Raising Funds Over several years, Gessin successfully raised more than $1.6 million from five retail investors, including a veteran and a retired nurse.
  3. Misappropriation Begins Contrary to his promises, Gessin began to divert investor funds for his personal use, rather than for legitimate business operations.
  4. Personal Expenses Gessin used the misappropriated funds to pay for a wide range of personal expenses, including his mortgage on a home in a gated community.
  5. Luxury Purchases Investor money also funded Gessin's purchases of cars, hotel stays, and lavish gifts for friends and family members.
  6. Fraudulent Scheme This pattern of deception and misappropriation constituted a multi-year fraudulent scheme, violating securities laws.

The Enforcement Action

The U.S. District Court for the Central District of California entered final judgments by default against defendants Equifunds, Inc., John David Gessin, and Ice Fleet LLC. The judgments permanently enjoin the defendants from violating securities laws, hold them jointly and severally liable for disgorgement of $1,230,807 plus $410,116 in prejudgment interest. Gessin is also permanently enjoined from participating in the issuance, purchase, offer, or sale of securities (except for his personal accounts), prohibited from acting as an officer or director of a public company, and ordered to pay a civil penalty of $945,804.