Loans to Sports Agents and Pro Athletes, a Hamptons Rental and a Mercedes: Boca Raton Man Agrees to SEC Judgment in $2.1 Million Fraud Case

Published Oct. 12, 2026. Case statuses are current as of that date. This article is based only on documents published by the U.S. Securities and Exchange Commission.

Update, Oct. 19, 2026: The court entered the partial judgment against David Kushner by consent on July 2, 2026, and on Oct. 13, 2026, the SEC barred Kushner from associating with any broker, dealer, investment adviser or other listed regulated entity, according to an SEC administrative order. The order also states that Kushner pleaded guilty on Sept. 16, 2025, to every count of the Manhattan indictment. In the settled order, Kushner admitted only the SEC's jurisdiction and those two findings (the guilty plea and the partial judgment) [3]. Our Oct. 12 article described the partial judgments as awaiting court approval; that was out of date as to Kushner. We have not confirmed whether the La Mancha judgment was entered. Monetary relief remains for the court to decide.

The investment was pitched as short-term lending to sports agents and professional athletes. According to the Securities and Exchange Commission, some of the money, including loan repayments meant for investors, paid for country club dues, college tuition, a Mercedes-Benz and a rental home in the Hamptons.

On July 1, 2026, the SEC filed proposed partial judgments as to David Kushner of Boca Raton, Florida, and his company La Mancha Funding Corp., of which he is president and sole owner [1].

Important: Kushner and La Mancha consented to the judgments, which are subject to court approval. The money Kushner and La Mancha may have to pay has not been decided; the court will set it later [1]. The SEC's release does not say whether Kushner and La Mancha admitted or denied the SEC's allegations. (Update, Oct. 19, 2026: the court entered Kushner's partial judgment by consent on July 2, 2026 [3]; entry of La Mancha's judgment has not been confirmed.)

What the SEC alleges

According to the SEC's complaint, filed Nov. 21, 2024 [1]:

• Kushner and La Mancha raised about $10.49 million from investors by selling membership interests in a series of limited liability companies, each meant to invest in short-term loans made to sports agents and professional athletes, among others.
• They made material misrepresentations about how investor funds would be used, including by taking undisclosed "origination" and "broker" fees out of those funds.
• They misappropriated at least $2.14 million, including principal that borrowers had repaid on the loans, money the defendants had said would go back to the LLCs and their investors.
• Kushner used misappropriated money and undisclosed fees for personal expenses including credit card bills, his child's college tuition, country club dues, a Mercedes-Benz and a rental home in the Hamptons.

The SEC's release says nearly two dozen investors were defrauded [1]. The release does not name any of the borrowers, and we do not suggest any wrongdoing by them.

The proposed judgments

If approved, the judgments would permanently enjoin Kushner and La Mancha from violating antifraud provisions of the Securities Act, the Exchange Act and the Investment Advisers Act. Kushner's judgment would also impose a conduct-based injunction and an officer-and-director bar. Both reserve monetary relief for later determination by the court on the SEC's motion [1].

Update, Oct. 19, 2026: According to the SEC, the partial judgment against Kushner was entered by consent on July 2, 2026, permanently enjoining him from future violations of the antifraud provisions named in the complaint. On Oct. 13, 2026, the SEC entered a settled administrative order barring him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent or nationally recognized statistical rating organization [3].

The parallel criminal case

The SEC's release states that Kushner previously pleaded guilty to a seven-count indictment brought by the Manhattan District Attorney's Office, which charged him with five counts of second-degree grand larceny, one count of third-degree grand larceny and one count of first-degree scheme to defraud [1]. The release does not give a sentencing date or sentence, and we have not independently reviewed the state court record.

Update, Oct. 19, 2026: An SEC administrative order dated Oct. 13, 2026, says Kushner pleaded guilty on Sept. 16, 2025, to each count of the indictment [3]. The order does not give a sentence.

The SEC case is SEC v. David Kushner & La Mancha Funding Corp., No. 24-cv-8900 (LGS), U.S. District Court for the Southern District of New York [1].

Why repaid principal is a key detail

In a lending fund, the money borrowers repay is the investors' money coming home. If a manager keeps repaid principal instead of passing it on or reinvesting it as promised, investors may not notice for a while: the loans look like they're performing and statements may look normal. Ask for loan-level reports that show when each borrower repaid and where that money went.

What "settled, subject to court approval" means

This is a civil case brought by the Securities and Exchange Commission, not a criminal prosecution. The SEC cannot send anyone to prison; it asks a federal judge for orders such as injunctions, repayment of allegedly ill-gotten gains (called disgorgement), interest on that money, civil penalties and industry bars.

In a settled action, the defendant agrees to a proposed judgment without admitting or denying the SEC's allegations. That is not a finding of liability by a court, and it is not a criminal conviction. A proposed judgment also does not take effect until a judge signs it. As of Oct. 12, 2026, we have not confirmed whether the court has entered the judgment described below. If it has, we will update this article.

Red flags to watch for

• Niche lending deals (athletes, litigation, bridge loans) with little public information.
• Undisclosed "origination" or "broker" fees taken from your money.
• No loan-level reporting showing repayments.
• One person controlling the fund, the bank accounts and the books.

What to do if you invested

1. Keep every record: account statements, promissory notes, subscription agreements, emails, texts, wire confirmations and screenshots of websites or videos.
2. Report it to the SEC at sec.gov/tcr.
3. Check who you are dealing with. Before investing, search the person and firm on the SEC's Investor.gov adviser search and FINRA's BrokerCheck.
4. Beware of "recovery" offers. People who lost money in investment frauds are often contacted by scammers who promise to recover it for an upfront fee. Government agencies and court-appointed receivers do not charge victims to file claims.

Case status (as of Oct. 19, 2026)

Table updated Oct. 19, 2026; originally published as of Oct. 12, 2026.

Defendant	Court	Status as of Oct. 19, 2026	Source
David Kushner, Boca Raton, Fla.	U.S. District Court, S.D.N.Y. (No. 24-cv-8900); SEC Admin. Proc. File No. 3-22773	Partial judgment entered by consent July 2, 2026 (permanent injunctions; monetary relief to be decided later); SEC associational bar ordered Oct. 13, 2026. Pleaded guilty Sept. 16, 2025, to all 7 counts of Manhattan DA indictment; sentence not stated. (As of Oct. 12: proposed partial judgment described as subject to court approval.)	[1], [2], [3]
La Mancha Funding Corp.	Same	Consented to proposed partial judgment filed July 1, 2026; money reserved; subject to court approval; entry not confirmed as of Oct. 19, 2026	[1]

Statuses can change. An SEC complaint contains allegations, and a settlement without admitting or denying them is not a finding of wrongdoing.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26579, "SEC Files Proposed Partial Judgments in Connection with Fraud Charges Against Advisory Firm and its Owner," July 1, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26579
2. Judgment – Kushner and Judgment – La Mancha, linked from Litigation Release No. 26579. https://www.sec.gov/files/litigation/litreleases/2026/judg26579-kushner.pdf
3. U.S. Securities and Exchange Commission, Investment Advisers Act Release No. 7025, Administrative Proceeding File No. 3-22773, "In the Matter of David Kushner," order instituting proceedings, making findings, and imposing remedial sanctions, Oct. 13, 2026. https://www.sec.gov/files/litigation/admin/2026/ia-7025.pdf

---

Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, a court ruling on a proposed judgment, or any other change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.