The Federal Trade Commission (FTC) has taken decisive action to halt an operation accused of preying on students seeking debt relief. The defendants are charged with pretending to be associated with the U.S. Department of Education and using deceptive tactics to lure students with false promises of loan forgiveness under a scheme dubbed the “Biden Loan Forgiveness” plan. The agency asserts that the operation collected millions in unlawful upfront fees.
FTC’s Bureau of Consumer Protection Director Samuel Levine stated, “During a period of uncertainty for borrowers saddled with student loan debt, these defendants bilked consumers out of millions of dollars with junk fees and phony promises of loan forgiveness and lower monthly payments. We are pleased that the court shut down this operation and froze its assets. We will continue the agency’s ongoing efforts to pursue scammers that target the tens of millions of Americans with student loan debt.”
Since at least 2019, California-based companies Express Enrollment LLC (also known as SLFD Processing) and Intercontinental Solutions LLC (also doing business as Apex Doc Processing LLC), operated by Marco Manzi, Ivan Esquivel, and Robert Kissinger, allegedly targeted students seeking debt relief. According to the FTC’s complaint, they collected approximately $8.8 million in illegal advance fees for nonexistent student loan debt relief services.
The charges state that the defendants falsely promised to reduce or eradicate student loan payments, pretended to be connected with the U.S. Department of Education, and persuaded students to cease communication with their federal loan servicers. The defendants also told students they had to pay fees for services freely available through the Department of Education. For instance, one consumer was informed that a processing fee of $375 would lead to $20,000 in student loans being forgiven due to receiving a Pell Grant. Another was told of a new repayment plan where the loan balance would be cut by $10,000 after six monthly payments of $250.
The complaint also highlights the defendants’ illegal methods to obtain consumers’ financial information, collecting hundreds of dollars in unlawful fees, sometimes through remotely created checks, in direct violation of the Telemarketing Sales Rule (TSR).
In addition to violating the TSR, the FTC charges the defendants with violations of Section 5 of the FTC Act and the Gramm-Leach-Bliley Act. After filing the complaint, a federal court temporarily stopped the operations and froze the assets of Apex Processing Center and its owners on August 16, 2023.
Students seeking legitimate assistance with student loans can find resources at ftc.gov/StudentLoans or receive free aid at StudentAid.gov.
The unanimous Commission vote to file the complaint emphasizes the government’s commitment to combat scams targeting vulnerable citizens.
