A man accused of masterminding a massive loan fraud scheme has been indicted by the Manhattan District Attorney’s Office. David Kushner, 59, was charged with grand larceny and conspiracy to defraud in connection with a $2 million scam that took place over two years, according to a news statement Wednesday.
According to Manhattan D.A. Alvin Bragg Jr., Kushner allegedly misled borrowers and private lenders about costs and dangers, and he even went so far as to embezzle money. “As alleged, David Kushner lied to borrowers and lenders alike, concealing exorbitant fees, undisclosed risk, and outright theft of approximately $2 million,” Bragg stated. According to the Manhattan District Attorney’s Office, one of Kushner’s noteworthy strategies was to advertise loans associated with professional sportsmen and sports agents, frequently without carrying out the promised due diligence investigations.
Kushner has been charged by Bragg’s office with using his business, LaMancha Funding Corporation, to secure 12 loans totaling over $4.78 million between April 2019 and June 2021. According to the indictment, Kushner authorized debtors with dubious credit histories instead of doing the thorough investigations he claimed to have done. As a result, a large number of the borrowers fell into default, exposing the increased risk and deceiving the safety of these loans.
According to the indictment, Kushner misled lenders about the true nature of the loans by charging borrowers exorbitant fees and portraying them as low-risk. Instead of going via Kushner to the lenders, the money was used to support his extravagant lifestyle, which included memberships in country clubs, a summer residence, and expensive cars. Furthermore, Kushner is charged in the indictment with misappropriating more than $100,000 of stolen money to pay for his legal fees in a different, pending criminal case.
Assistant D.A.s Catherine McCaw, Kofi Sansculotte, and Anthony Santucci are leading the prosecution, while Senior Financial Investigator Lana Wong and a group of paralegals and analysts are giving crucial support. Additionally, cooperation with the Securities and Exchange Commission’s New York Regional Office was crucial, demonstrating the extensive coordination in identifying and stopping fraudulent financial activity in New York.
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