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USA Student Debt Relief, FTC v.

In July 2024, the Federal Trade Commission announced that it stopped the operators of a scheme that it says tricked financially strapped consumers seeking student loan relief into paying hundreds of dollars in junk fees. The operators often targeted Spanish-speaking consumers in Puerto Rico, pretended to be affiliated with the Department of Education and its loan servicers, and made false promises of low, permanently fixed monthly payments and loan forgiveness.

A federal court temporarily halted the scheme and froze its assets at the request of the FTC.

In May 2025, the FTC announced that the operators of the scam have agreed to be permanently banned from the debt relief industry and to turn over their assets to resolve allegations that they misled consumers.

Type of Action
Federal
Last Updated
Docket Number
8:24-cv-01626-KKM-AAS
Case Status
Pending

Panda Benefit Services, LLC., FTC v.

In June 2024, the Federal Trade Commission announced that it took action to stop Prosperity Benefit Services, a student loan debt relief scheme that the agency says bilked more than $20.3 million from consumers seeking debt relief by pretending to be affiliated with the Department of Education. The FTC also charged that the company and its operators falsely claimed that they would take over consumers’ student loans to get them loan forgiveness that did not exist. In May 2025, the FTC announced that the operation and its owners are permanently banned from the debt relief industry and required to turn over all assets to resolve allegations that they misled consumers.

Type of Action
Federal
Last Updated
FTC Matter/File Number
2423041
Case Status
Pending

Financial Education Services

The Federal Trade Commission has taken action against Financial Education Services and its owners, Parimal Naik, Michael Toloff, Christopher Toloff and Gerald Thompson, as well as a number of related companies, for scamming consumers out of more than $213 million.

In response to a complaint filed by the FTC, a federal court has temporarily shut down the sprawling bogus credit repair scheme. The FTC’s complaint alleges that the company preys on consumers with low credit scores by luring them in with the false promise of an easy fix and then recruiting them to join a pyramid scheme selling the same worthless credit repair services to others. 

According to the FTC’s complaint, Michigan-based Financial Education Services, also doing business as United Wealth Services, has operated its scheme since at least 2015. The company claims to offer consumers the ability to remove negative information from credit reports and increase credit scores by hundreds of points, charging as much as $89 per month for their services. Their techniques, according to the complaint, are rarely effective and in many instances harm consumer’s credit scores.

Type of Action
Federal
Last Updated
FTC Matter/File Number
2223030
Case Status
Pending

Apex Processing Center

The Federal Trade Commission has stopped scammers who the agency says facilitated an operation to prey on students seeking debt relief. The agency charges that the defendants pretended to be affiliated with the U.S. Department of Education, used deceptive loan forgiveness promises, and falsely claimed they were offering relief under the “Biden Loan Forgiveness” plan to lure students and collect millions in illegal upfront fees. 

After the FTC filed a complaint seeking to end the deceptive practices, a federal court temporarily halted the operations and froze the assets of Apex Processing Center and its owners.

In February 2024, under proposed orders settling the FTC’s charges, several defendants in the case—including Express Enrollment LLC, Intercontinental Solutions LLC, Ivan Esquivel, and Robert Kissinger were permanently banned from the debt relief industry and were ordered to turn over their assets to the FTC. In April 2024, the ringleader of the scheme, Marco Manzi, was also banned from the industry and was ordered to turn over assets as part of a settlement with the FTC.

Type of Action
Federal
Last Updated
FTC Matter/File Number
2323061
X230038
Case Status
Pending

Elegant Solutions, Inc. (Mission Hills Federal)

The Federal Trade Commission has stopped Mission Hills Federal, a student loan debt relief scheme, alleging it bilked more than $23 million from thousands of consumers with false claims that it would service and pay down their student loans. After the FTC filed a complaint seeking to end the deceptive practices, a federal court temporarily halted the scheme and froze its assets. The FTC filed an amended complaint on August 27, 2019, adding Labiba Velazquez as an alleged defendant. On July 20, 2020, the court granted final summary judgment.

In June 2021, the defendants appealed the District Court’s granting of summary judgment. In June 2022, the Ninth Circuit Court of Appeals issued its decision, rejecting the defendants’ arguments and affirmed the District Court’s grant of summary judgment, ruling in favor of the FTC. In March 2024, the FTC sent more than $4.1 million in refunds to consumers harmed by the defendants. 

Type of Action
Federal
Last Updated
FTC Matter/File Number
192 3105

Home Matters USA

The Federal Trade Commission and the California Department of Financial Protection and Innovation (DFPI) are taking action against various companies doing business as Home Matters USA, Academy Home Services, Atlantic Pacific Service Group, and Golden Home Services America, and the owners of the companies, Dominic Ahiga and Roger Scott Dyer, for operating a sham mortgage relief operation that misled consumers and cost them millions. In the first case brought jointly by the two agencies, the FTC and DFPI allege that the companies charged consumers thousands of dollars with false promises they would negotiate with consumers’ mortgage lenders to alter their loans, at times even representing they were affiliated with government COVID-19 relief programs. A federal court has temporarily shut down the operation and frozen the assets of the defendants in the case.

The court’s orders bar the individuals and their companies from directly or indirectly engaging in telemarketing, debt relief services, and making any misrepresentations or unsubstantiated claims about any product or service.

Type of Action
Federal
Last Updated
FTC Matter/File Number
2123099
Case Status
Pending

Lanier Law, LLC

The Federal Trade Commission is sending more than $222,000 in refunds to consumers harmed by a deceptive mortgage relief operation known as Lanier Law. The scheme collected thousands of dollars in upfront fees from homeowners by promising to lower their monthly payments but then failed to deliver.

Type of Action
Federal
Last Updated
FTC Matter/File Number
142 3038
X140039