Accused Ponzi Schemer Morris Gussin Pleads Guilty, Gets 7 Years

Morris Gussin—nicknamed the "Bernie Madoff of South Pasadena"—pleaded guilty to 24 felony counts of grand theft and securities violations on Tuesday in connection with a Ponzi scheme in which he defrauded clients out of $3.4 million. He was immediately sentenced to 7 years in California State Prison.

"I was fully expecting him to plead guilty," said South Pasadena Det. William Earley, who previously testified on behalf of Gussin’s 10 alleged victims from the Pasadena area. "There was overwhelming evidence against him."

Residing in South Pasadena from 2004 to 2008, Gussin operated his own insurance, security and public accounting firm. Officials allege he stole more than $3.4 million in a Ponzi scheme where he falsely led his clients to believe he was investing their money.

A Pasadena resident, who asked to not be named, says Gussin stole approximately $300,000 from her family. And although no jail sentence can make up for her loss, she says she was surprised to hear Gussin apologize at his last hearing Sept. 14. 

"He apologized to the whole courtroom. It was pretty dramatic," she said. "He turned and looked at us—which was amazing."

Victims say Gussin revealed that he felt remorseful before he was even arrested and that when he gets out of jail, he will work to pay everyone back the best he can. 

"He started to get choked up himself," said the victim, who has gone back to work to supplement the income lost. "...But you can't make up for the damage that is done. He can be in jail until the end of time—and it wouldn't make up for it."

Det. Earley says if Gussin were to have gone before a jury, he may have been sentenced to many more years in prison. 

"He stole from widows and the elderly. He didn't care who they were. One victim from Santa Clarita was totally disabled and lost his house and life savings," Earley told Patch in October.