U.S. Securities and Exchange Commission Litigation Release No. 26579, dated July 1, 2026.
The SEC charged David Kushner and his company, La Mancha Funding Corp., with defrauding investors out of approximately $2.1 million. They allegedly misrepresented how investor funds would be used, instead misappropriating the money for personal expenses and undisclosed fees. Both defendants consented to proposed judgments that would permanently enjoin them from future violations and bar Kushner from serving as an officer or director.
Imagine you give money to a friend to invest in a special club that makes short-term loans. Your friend promises to use your money only for the club's loans. Instead, your friend secretly takes some of your money as "fees" and uses the rest, along with money from people who borrowed from the club, to pay for their own stuff like vacations, cars, and tuition. The SEC stepped in to stop this and make sure the friend can't do it again.
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.
On July 1, 2026, the SEC filed proposed partial judgments against David Kushner and La Mancha Funding Corp. in connection with charges of defrauding nearly two dozen investors out of approximately $2.1 million. The complaint alleged that Kushner and La Mancha raised $10.49 million by selling membership interests in LLCs for short-term loans but instead misappropriated funds for personal use and undisclosed fees. Kushner and La Mancha consented to the entry of judgments that would permanently enjoin them from violating securities laws, and would impose a conduct-based injunction and officer-and-director bar on Kushner. Monetary relief is reserved for later determination. Kushner also faced parallel criminal charges in New York County.