Student Loan Debt Relief Scammer Enters Into Agreement To Settle FTC Charges
Earlier this month, it was announced that student loan debt relief scammer Brandon Frere and his company had entered into an agreement with the FTC to settle charges they mislead roughly 40,000 people about lowering their student loan debt. Frere ran Ameritech Financial.
The FTC’s 2018 complaint showed that Frere and his companies sent personalized mail to consumers falsely claiming those individuals were eligible for federal programs that would reduce their debt payments to a fixed low amount or forgive their loan.
The FTC alleged that Frere and his companies charged approximately $800 in illegal up-front fees to enroll in the federal loan assistance program. They were also charged $100 to $1,200 for enrollment in a “financial education” program and $49 to $99 monthly membership fee for the life of the loan.
Under the order, Frere and his companies are banned from providing debt relief services and violating the Telemarketing Sales Rule. The Department of Justice filed a criminal complaint against Frere and his companies in December of 2018.
In December of 2019, Frere pleaded guilty to two counts of wire and mail fraud. In July of 2020, he was sentenced to 42 months in prison. Additional information can be found here.