FTC Seeks to Add New Defendants in Student Debt Relief Case
The Federal Trade Commission moved to add two new defendants to an ongoing case against a California-based student debt relief operation shuttered pursuant to a court order obtained by the Commission in November 2018. The scheme allegedly bilked consumers out of millions of dollars using false promises that they could reduce their monthly payments, or eliminate or reduce their student loan debt.
The proposed new defendants, Capital Sun Investments, LLC, a Wyoming firm based in California, and its manager, Jimmy Calderon, are alleged to have been part of the deceptive operation, which targeted tens of thousands of consumers trying to obtain lower monthly payments or forgiveness of their student loan debts.
The Commission vote to file the amended complaint was 5-0. The proposed amended complaint was filed in the U.S. District Court for the Central District of California on February 5, 2019.
NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
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