SEC Seeks Permanent Ban Against Kushner, La Mancha After $2.14M Fraud on July 1

According to the SEC, on July 1, 2026, the agency filed proposed partial judgments against David Kushner and La Mancha Funding Corp. in a securities fraud case involving nearly two dozen investors and approximately $2.14 million in allegedly misappropriated funds. Kushner, a Boca Raton resident and La Mancha's president and sole owner, consented to the judgments, which would permanently enjoin both from future violations of federal securities laws. Kushner would also face an officer-and-director bar.

The SEC alleged Kushner and La Mancha misappropriated investor funds meant for short-term loans to borrowers including sports agents and professional athletes, using the money 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. Monetary relief including disgorgement and civil penalties remains to be determined by the U.S. District Court for the Southern District of New York.