CUSTOMERS: Please read the Frequently Asked Questions – most issues are addressed there

The Receiver’s office receives questions from consumers on various subjects. Rather than respond to each inquiry separately, we have prepared a list of Frequently Asked Questions (“FAQs”) which addresses each of these questions.  Click on the FAQs link on the documents section of this page to access.  The most recurring questions relate to what should consumers do now and whether refunds will be available – these questions are addressed in FAQ Nos. 3 and 4.

April 10, 2019 – Receiver Discharged

The underlying case brought by Plaintiff Federal Trade Commission (“FTC) has been resolved as to all Defendants pursuant to the Permanent Injunctions and Final Orders (“Final Orders”) now entered.  Copies of the Final Orders can be viewed in the Documents section of this webpage.

Mr. McNamara has completed his duties as Receiver.  On January 25, 2019, he filed his Final Report and Application for Discharge.  On March 28, 2019, the Court entered an Order discharging him from his duties as Receiver in the case.

Whether a consumer redress program will be established, and the nature and extent of such a program, will be determined by the FTC.  If the FTC implements a consumer redress program, the information will be available at the FTC’s website (https://www.ftc.gov/enforcement/cases-proceedings/refunds).

August 13, 2018

Nearly all the defendants have agreed to the entry of Permanent Injunctions and Final Orders permanently banning them from advertising, marketing, promoting, offering for sale, or selling any secured or unsecured debt relief product or service.  They will also be prohibited from making misrepresentations relating to financial products and services.  The parties submitted the Proposed Permanent Injunctions and Final Orders to the Court for consideration.

At this point, the Court has signed the proposed Permanent Injunctions and Final Orders against Farzan Azinkhan, Michael Ratliff, Ramiar Reuveni, Grads Doc Prep, LLC, Avinadav Rubeni, United Legal Center, LLC, and United Legal Center, Inc.  We expect the Court will also enter a proposed Permanent Injunction and Final Order against Shawn Gabbaie and SBB Holdings, LLC.  To review the Orders please see the Permanent Injunctions and Final Orders in the Documents section of this webpage.

Defendants Elite Consulting Service LLC (fka First Grad Aid, LLC, dba First Grad Aid) and Elite Doc Prep, LLC (dba Premier Student Aid) failed to respond to the FTC’s complaint.  As a result, the Court entered defaults against them and we expect judgments will be entered against these entities.

As part of the Permanent Injunctions and Final Orders, the FTC obtained monetary relief from the Defendants in varying amounts.  These monies may be deposited into a fund administered by the FTC to provide consumer redress.  If the FTC implements a consumer redress program, the information will be available at the FTC’s website (https://www.ftc.gov/enforcement/cases-proceedings/refunds).  It is possible the FTC will decide that consumer redress is impractical and, if so, the agency may use the money for other equitable relief (e.g., consumer information remedies).

If you have not already done so, we recommend that you contact your student loan servicer and confirm that no third party is authorized to represent you in connection with your student loan account.  You can also ask the servicer about the status of your loan.  A list of approved student loan servicers can be found at:  https://studentloans.gov/myDirectLoan/additionalInformation.action.

March 1, 2018

The Receiver’s office continues to receive inquiries from consumers asking (1) What steps to take next?; (2) Are refunds available?; and (3) Can consumers file their own lawsuits against the Defendants?

What steps to take next?

We recommend you immediately contact your student loan servicer and confirm to them that no third party is authorized to represent you in connection with your student loan account.  You can also ask the servicer about the status of your loan.  A list of approved student loan servicers can be found at:  https://studentloans.gov/myDirectLoan/additionalInformation.action.

Are refunds available?

At this stage of the case, there are no refund procedures in place.  If the FTC prevails in the case, the matter of refunds will be an issue for the FTC and the Court to resolve.  This determination is down the road.  As further information becomes available on the subject of refunds, we will post it on our website, as well as any other case developments.

Can consumers file their own lawsuits against the Defendants?

The Court has imposed a stay of actions which prevents parties from taking action that would interfere with the exclusive jurisdiction of the Court over the assets of the Defendants.  This includes filing suit against the Defendants or Relief Defendants (except that such actions may be commenced if necessary to toll any applicable statute of limitations) until the FTC lawsuit is completed.  (See pages 22-23 of the “Amended Preliminary Injunction” in the Documents section of the Receiver’s website.)

Please review the website completely and, particularly, the FAQs that are posted in the Documents section of the website for more information.  Please note that most questions are answered in the FAQs.  If you have a question this is not addressed in the FAQs, please send us an email at info@regulatoryresolutions.com.  We cannot advise you concerning your student loan, but contacting your student loan servicer is your first step.  And, any tax questions you have should be referred to a tax professional.  Feel free to direct them to our website (http://regulatoryresolutions.com/case/federal-trade-commission-v-alliance-document-preparation-llc-et-al/) to provide more context about the situation.

January 29, 2018 – Notice to Employees – Tax Reporting Documents Have Been Sent 

We can report to employees and independent contractors of Alite Consulting Service, Capital Doc Prep, Inc., Direct Consulting Group, LLC, EZ Doc Preps, Grads Doc Prep, LLC, SBB Holdings, LLC, United Legal Center, Inc., and related companies, that W-2 and 1099 tax reports were mailed on January 26, 2018.  These forms have been sent to your address on file.  If you have recently changed your address, please advise immediately.  If you do not receive your form within 10 days, please email info @regulatoryresolutions.com.

November 3, 2017 – Update

Defendants Benjamin Naderi, Alliance Document Preparation, LLC, SBS Capital Group, Inc., First Student Aid, LLC, and Relief Defendants Direct Consulting Group, LLC and Capital Doc Prep, LLC (the “Naderi Defendants”) opposed the FTC’s motion for preliminary injunction, asset freeze, and appointment of a receiver. The Court held a hearing and heard arguments from the FTC and the Naderi Defendants on November 1, 2017.  On November 2, 2017, the Court issued a Minute Order (see documents section of this page) finding that the FTC had met its burden and granted a preliminary injunction, asset freeze, and appointed a receiver against the Naderi Defendants.

The practical effect of the Orders is that the Defendant businesses will NOT resume operations. So, if you hired one of the Defendant companies and they have not completed the task, then it will not be completed.  If the task has been completed and/or information has been submitted on your behalf, then it will not be affected.  The best way to determine what, if anything, has happened with your loan is to check with your loan servicer, who will be in a position explain your loan status.  Contact information for the servicers is in the FAQs document on this page and below.

Now that the Orders have been entered, the case moves to the next phase. Some Defendants may choose to reach a settlement with the FTC.  Other Defendants may choose to defend the case and proceed until the Court issues a final decision either after motions or a trial.  This process will take months, at a minimum.

As for whether you will be able to get some or all of your money back, that will not be known until the case is fully resolved – after either settlement or motions/trial. The Receiver will gather available assets and, at the conclusion of the case, he will transfer the funds which we have been able to recover to the FTC.  If the funds are sufficient to make meaningful refunds, the FTC may establish a redress (refund) process.  The amount of refunds, if any at all, will not be known until that time.

As we have advised, consumers should reach out to loan servicers to determine the status of their loans. Again, contact information for the servicers is in the FAQs document on this page and below.

We do not expect further updates for some time. If you have a question, the first place to look is the Frequently Asked Questions (FAQs) document on this page.  If you have a question that is not addressed in the FAQs, you can send an email and we will update the FAQs with an answer.

Companies named in the FTC’s lawsuit:

  • Alliance Document Preparation LLC, also dba EZ Doc Preps, Grads Aid, and First Document Aid
  • Capital Doc Prep, Inc.
  • Direct Consulting Service LLC
  • Elite Consulting Service, LLC, fka First Grad Aid, LLC, also dba First Grad Aid
  • Elite Doc Prep LLC, also dba Premier Student Aid
  • First Student Aid, LLC
  • Grads Doc Prep, LLC, also dba Academic Aid Center, Academic Protection, Academy Doc Prep, and Academic Discharge
  • SBB Holdings, LLC, also dba EZ Doc Preps, Allied Doc Prep, and Post Grad Services
  • SBS Capital Group, Inc., also dba Grads United Discharge
  • United Legal Center, Inc.
  • United Legal Center, LLC, also dba Post Grad Aid, Alumni Aid Assistance, and United Legal Discharge

Individuals named in the FTC’s Lawsuit:

  • Farzan Azinkhan;
  • Shawn Gabbaie aka Shawn Goodman;
  • Benjamin Naderi aka Benjamin Poumaderi and Benjamin Brooks;
  • Michael Ratliff;
  • Ramiar Reuveni aka Rami Reuveni; and
  • Avinadav Rubeni aka Avi Rubeni

Preliminary Hearing Set for November 1, 2017

The Court has now set November 1, 2017 as the date for the hearing on whether a Preliminary Injunction should be entered. In the meantime, the Temporary Restraining Order (“TRO”), which was entered on September 28, 2017, will remain in effect and Defendants’ business operations will remain suspended.  A copy of the TRO can be accessed from the documents section of this page.

NOTICE REGARDING FTC LAWSUIT

The companies listed above have been sued by the Federal Trade Commission for deceptive and unlawful practices related to their student loan debt relief operation.

The FTC’s lawsuit was filed on September 27, 2017, naming as Defendants all of the companies listed below, along with their principals. The Court entered a Temporary Restraining Order (“TRO”) on September 28, 2017, which prohibits any further unlawful conduct and appoints a Temporary Receiver to take possession and control of these businesses.  The Temporary Receiver has suspended operations and is now conducting a review of the businesses.

The Court has set November 1, 2017 as the date for a hearing on whether a Preliminary Injunction should be entered, which would extend the restrictions in the TRO until there is a trial of the case.

We recommend that you immediately contact your student loan servicer and confirm to them that no third party is authorized to represent you in connection with your student loan account. A list of approved student loan servicers can be found at:  https://studentloans.gov/myDirectLoan/additionalInformation.action.

At least until the date of the Preliminary Injunction hearing on November 1, 2017, these companies will have very limited operations. Your best source of information is the Receiver’s website.  We will post regular updates.  If you have additional questions, please send to info@regulatoryresolutions.com.