SEC v. Gessin, Equifunds, Ice Fleet - Securities Fraud Enforcement

SEC Litigation Releases

Filed January 20th, 2026

Detected February 12th, 2026

Summary

The SEC announced final judgments by default against Equifunds, Inc., John David Gessin, and Ice Fleet LLC for a fraudulent scheme that raised over $1.6 million from retail investors. The judgments include disgorgement, prejudgment interest, and a civil penalty against Gessin.

View original document View source feed page

What changed

The Securities and Exchange Commission (SEC) has obtained final judgments by default against Equifunds, Inc., John David Gessin, and Ice Fleet LLC in the U.S. District Court for the Central District of California. These judgments stem from a fraudulent scheme alleged to have raised more than $1.6 million from five retail investors. The court ordered disgorgement of $1,230,807 plus $410,116 in prejudgment interest, and imposed a civil penalty of $945,804 on Gessin. Gessin is also permanently enjoined from participating in the issuance, purchase, offer, or sale of securities, and prohibited from acting as an officer or director of a publicly traded company.

These final judgments mean that the defendants are permanently barred from violating key securities laws and must pay substantial financial penalties. The SEC's action highlights the consequences of misappropriating investor funds for personal use and engaging in fraudulent investment schemes. Regulated entities and individuals involved in securities offerings should be aware of the SEC's aggressive enforcement posture and the severe penalties for violations, including disgorgement, interest, civil penalties, and industry bars.

Source document (simplified)

John David Gessin et al.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26481 / February 11, 2026

Securities and Exchange Commission v. John David Gessin, et al., No. 8:23-cv-00460 (C.D. Cal. filed Mar. 14, 2023)

SEC Obtains Final Judgments Against Defendants John David Gessin, Equifunds, Inc., and Ice Fleet LLC

The U.S. District Court for the Central District of California entered final judgments by default against defendant Equifunds, Inc. (“Equifunds”) on January 20, 2026, and against defendants John David Gessin and Ice Fleet LLC (“Ice Fleet”) on January 21, 2026, in connection with previously filed fraud charges.

According to the SEC’s complaint, filed on March 14, 2023, defendants engaged in a multi-year fraudulent scheme, raising more than $1.6 million from five retail investors, including a veteran and a retired nurse. As alleged, although Gessin told investors that the funds they entrusted to him would be used solely for business purposes, Gessin routinely misappropriated investor funds to pay his personal expenses, including the mortgage on a home in gated community, cars, hotel stays, and gifts to friends and family members.

The final judgments permanently enjoin defendants from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and hold defendants jointly and severally liable for disgorgement of $1,230,807 and prejudgment interest of $410,116. In addition, the final judgment against Gessin permanently enjoins him from participating in the issuance, purchase, offer or sale of securities, except for purchases or sales for his personal accounts; prohibits him from acting as an officer or director of a publicly traded company; and holds him liable for a civil penalty of $945,804.

The SEC’s litigation was led by Jennifer Farer and Nick Margida, substantially assisted by Senior Accountant Jamie Wohlert, and supervised by James Carlson. The SEC’s investigation was conducted by Joseph Zambuto, Jr.