“Defendants promise consumers that, in exchange for the payment of an upfront fee and subsequent monthly fees, defendants will reduce consumers’ monthly student loan payments or eliminate all, or a substantial portion of, their federal student loan debt by enrolling consumers in student loan forgiveness, consolidation, or repayment programs.”Īrete Financial used radio, television and internet advertisements as well as unsolicited telemarketing calls to prey on consumers around the country with student loan debt, the suit alleged. “Defendants have operated an unlawful debt relief scheme that preys on consumers with student loan debt,” the complaint states. Six months later, the company received a federal Paycheck Protection Program loan of up to $1 million to weather the economic impact of the COVID-19 pandemic, according to the U.S. In November 2019, a federal judge froze Arete Financial’s assets. The five defendants named in the FTC lawsuit allegedly pocketed at least $43 million since 2014 as a result of the student loan scheme. However, he has denied the FTC allegations in court documents.

Howe, Shunmin Hsu, Ruddy Palacios and Oliver Pomazi, as well as several related companies.Ĭarey Howe, president of Arete Financial, could not be reached for comment Tuesday regarding the settlement. The settlement, finalized earlier this month, resolves a 2019 lawsuit filed by the Federal Trade Commission against Arete Financial Group, Carey G. HOWE, individually and as an officer or manager of Arete Financial Group Arete Financial Group LLC CBC Conglomerate LLC and La Casa Bonita Investments, Inc.ĭefendant / appellant: SHUNMIN MIKE HSU, individually and as an officer or manager of Arete Financial Group Arete Financial Group LLC CBC Conglomerate LLC and La Casa Bonita Investment, Inc.ĭefendant / appellant: RUDDY PALACIOS, individually and as an officer of Arete Financial Group Arete Financial Group LLC and Diamond Choice Inc.A Santa Ana company will pay at least $835,000 to settle allegations from the federal government it operated a student debt loan scheme that charged illegal upfront fees and made false promises to customers. and US Financial Freedom Center Inc.ĭefendant / appellant: OLIVER POMAZI, individually and as an officer or director of Arete Financial Group Arete Financial Group LLC and J&L Enterprise LLCĭefendant / appellant: CAREY G. HOWE, individually and as an officer of CBC Conglomerate LLCĭefendant: LA CASA BONITA INVESTMENTS, INC., DBA Education Loan Network, DBA Edunet, FKA La Casa Bonita Investments LLCĭefendant: J AND L ENTERPRISE LLC, DBA Premier Solution Servicingĭefendant: AMERICAN FINANCIAL SUPPORT SERVICES, INC.ĭefendant: DIAMOND CHOICE, INC., DBA Interest Rate Solutionsĭefendant: CBC CONGLOMERATE LLC, DBA ĭefendant: JAY SINGH, individually and as an officer of American Financial Support Services Inc. Carey Howe, et alĭefendant: MJ WEALTH SOLUTIONS, LLC, Relief Defendantĭefendant: ARETE FINANCIAL GROUP, a corporation, DBA Arete Financial Freedomĭefendant: US FINANCIAL FREEDOM CENTER, INC., a corporationĭefendant: ANNA C. and RUDDY PALACIOS, individually and as an officer of Arete Financial Group Arete Financial Group LLC and Diamond Choice Inc., AKA Ruddy Barahona HOWE, individually and as an officer or manager of Arete Financial Group Arete Financial Group LLC CBC Conglomerate LLC and La Casa Bonita Investments, Inc., SHUNMIN MIKE HSU, individually and as an officer or manager of Arete Financial Group Arete Financial Group LLC CBC Conglomerate LLC and La Casa Bonita Investment, Inc. OLIVER POMAZI, individually and as an officer or director of Arete Financial Group Arete Financial Group LLC and J&L Enterprise LLC, CAREY G. HOWE, individually and as an officer of CBC Conglomerate LLC, LA CASA BONITA INVESTMENTS, INC., DBA Education Loan Network, DBA Edunet, FKA La Casa Bonita Investments LLC, J AND L ENTERPRISE LLC, DBA Premier Solution Servicing, AMERICAN FINANCIAL SUPPORT SERVICES, INC., DIAMOND CHOICE, INC., DBA Interest Rate Solutions, CBC CONGLOMERATE LLC, DBA and JAY SINGH, individually and as an officer of American Financial Support Services Inc. MJ WEALTH SOLUTIONS, LLC, Relief Defendant, ARETE FINANCIAL GROUP LLC, ARETE FINANCIAL GROUP, a corporation, DBA Arete Financial Freedom, US FINANCIAL FREEDOM CENTER, INC., a corporation, ANNA C.

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