David Kushner and La Mancha Funding Corp.
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26579 / July 1, 2026
Securities and Exchange Commission v. David Kushner & La Mancha Funding Corp., No. 24-cv-8900 (LGS) (S.D.N.Y. filed Nov. 21, 2024)
SEC Files Proposed Partial Judgments in Connection with Fraud Charges Against Advisory Firm and its Owner
On July 1, 2026, the U.S. Securities and Exchange Commission filed proposed partial judgments as to Defendants David Kushner, a resident of Boca Raton, Florida, and his company La Mancha Funding Corp., whom the SEC charged with allegedly defrauding nearly two dozen investors out of approximately $2.1 million in a series of private securities offerings. Kushner is La Mancha’s president and sole owner.
The SEC’s complaint, filed on November 21, 2024, alleges that Kushner and La Mancha raised approximately $10.49 million from investors by selling membership interests in a series of limited liability companies for the purpose of investing in short-term loans made to, among others, sports agents and professional athletes. The complaint alleges that Kushner and La Mancha made material misrepresentations to the investors about the use of their funds, including by taking undisclosed “origination” and “broker” fees for themselves out of those funds. The complaint further alleges that the defendants misappropriated at least $2.14 million from investors, including the principal that certain borrowers repaid on the loans, which defendants represented would be distributed to the LLCs and the LLC investors. According to the complaint, Kushner used those and other misappropriated funds, including the undisclosed fees, to pay for personal expenses, such as credit card bills, his child’s college tuition, country club dues, a Mercedes Benz, and a rental home in the Hamptons.
Kushner and La Mancha consented to the entry of the judgments, subject to court approval, that would permanently enjoin Kushner and La Mancha from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), (2), and (4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder, by committing or engaging in specified actions or activities relevant to such violations. The judgment as to Kushner would also impose a conduct-based injunction and an officer-and-director bar. Both judgments reserve the issue of monetary relief for later determination by the Court upon motion by the Commission.
Kushner previously pled guilty to a seven-count indictment in a parallel criminal action brought by the Office of the District Attorney for New York County, which charged Kushner with five counts of grand larceny in the second degree, one count of grand larceny in the third degree, and one count of scheme to defraud in the first degree.
The SEC’s investigation was conducted by Cynthia A. Matthews, James Flynn, Rusty Feldman, and George N. Stepaniuk. The SEC’s litigation is being led by Mr. Feldman, Ms. Matthews, and Mr. Stepaniuk, and is being supervised by Jack Kaufman. The SEC appreciates the assistance of the Office of the District Attorney for New York County.