Update: Morris Gussin Rejects Plea Bargain

Former South Pasadena resident Morris Gussin rejected a plea bargain Wednesday that would have landed him a maximum of nine years in prison.

South Pasadena Detective William Earley described the bargain as “generous.”

“I’m surprised he didn’t accept the plea bargain,” said Earley. “I think that now he’s going to spend a lot more time in prison.”

Gussin, who Earley previously characterized as a "mini-Bernie Madoff,” was arrested in October 2010 on 20 felony counts of grand theft and security violations for his alleged involvement in a multi-million dollar Ponzi scheme. He is currently being held at the Men’s Central Jail in downtown Los Angeles.

A preliminary court hearing is set for June 2011, Earley said. An official date has yet to be released.

Prior court hearings were previously set for Nov. 15, 2010, as well as Jan. 12, Feb. 10, March 3 and April 7 of this year.

On Oct. 28, 2010, . The judge issued the bail by making a calculation of $100,000 for each of the 16 victims involved in the case.

Gussin’s attorney, George Newhouse of Brown, White & Newhouse, stated that his client will enter a not guilty plea.

Click  for our original coverage of this story from October 2010.