CUSTOMERS: Please read the Frequently Asked Questions – most issues are addressed there.
October 28, 2021
On May 5, 2021, the Receiver filed his Final Report and Application for Discharge and Approval of Final Fee Application on the grounds that the underlying case had been resolved as to all Defendants and he had completed his duties as defined in the Modified Preliminary Injunction. The Court accepted the Receiver’s Final Report and granted his granted his Application for Discharge and Approval of Final Fee Application on June 15, 2021. A copy of the Receiver’s Final Report is available in the Documents section of this webpage.
The funds that the Receiver collected through the Corporate Defendants’ frozen accounts, the liquidation of assets, and the pursuit of Receivership Estate Assets transferred to third-parties have been turned over to 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). The FTC’s website also has a section on how the FTC provides refunds (https://www.ftc.gov/enforcement/cases-proceedings/refunds/how-ftc-provides-refunds).
April 1, 2021
On November 17, 2020, the Court entered a Stipulated Order for Permanent Injunction and Monetary Judgment against all Defendants. Judgment in the amount of $62,000,000 was entered against the Defendants, with Brandon Frere instructed to comply with the payment requirements set forth in his Plea Agreement in the criminal case against him, which includes the forfeiture of assets valued at approximately $8,677,793. A copy of the Permanent Injunction is available in the Documents section of this webpage.
The Stipulated Order for Permanent Injunction required the Receiver to complete all his duties and file a Final Report and Request for Discharge and Final Fee Application by May 17, 2021. At the time the Receiver is discharged, the remaining funds held by the receivership will be transferred to 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).
Criminal Case Proceedings
As previously reported, Defendant Brandon Frere pleaded guilty in a criminal case and was sentenced to 42 months in custody and agreed to pay restitution to the victims of his crimes. The hearing to determine the amount of restitution was initially set for October 16, 2020, but it was continued to April 2, 2021. On April 1, 2021, the Court, at the request of the parties, continued the restitution hearing until June 11, 2021to allow the parties to review victim impact statements and related data relevant to restitution. The date for Mr. Frere’s self-surrender to serve his custodial sentence was also extended to July 23, 2021 to allow him to fully participate in the restitution proceedings.
August 18, 2020
Individual defendant Brandon Frere’s sentencing in the criminal proceeding took place on July 24, 2020. Frere was sentenced to 42 months of imprisonment (https://www.justice.gov/usao-ndca/united-states-v-brandon-demond-frere).
The Court-imposed stay on the FTC case against the defendants will be lifted on August 24, 2020 and the FTC’s case can again move forward. Once that case concludes, the Receiver will turn over the funds he has accumulated to 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).
July 10, 2020
Individual defendant Brandon Frere was criminally charged and has pleaded guilty. His sentencing has been postponed until July 24, 2020. https://www.justice.gov/usao-ndca/united-states-v-brandon-demond-frere.
The FTC case against the defendants has been stayed pending Mr. Frere’s sentencing. That stay will remain in place until 30 days after Mr. Frere has been sentenced in the parallel criminal action or 120 days from the date of entry of the Court’s Order Extending Stay, whichever comes first. The Court’s Order was entered on June 30, 2020. Until then, the FTC case cannot proceed. A copy of that Order is available in the documents section of this webpage.
At this stage, 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.
February 21, 2020
The FTC case against the defendants remains pending. At this stage, 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.
Individual defendant Brandon Frere was criminally charged and has pleaded guilty. He will be sentenced on March 27, 2020. https://www.justice.gov/usao-ndca/pr/sonoma-county-ceo-pleads-guilty-charges-stemming-25-65-million-student-loan-repayment
March 1, 2019 – Notice to Consumers
Many of you recently received an email from the Federal Trade Commission (FTC) about the lawsuit it filed last year against Ameritech, American Financial Benefits Center, and Financial Education Benefits Center. As reported in the email, those businesses have been shut down permanently.
The two most common consumer questions we are receiving are what you should do now and whether a refund will be forthcoming. Due to the volume of emails, we are not able to respond individually to each one. Before emailing us about these two issues, please read the Frequently Asked Questions (FAQs) document on this webpage, as well as the recent posts and documents.
If you would like to check on the status of your loan, please go to: https://studentloans.gov/myDirectLoan/additionalInformation.action?utm_source=govdelivery.
Additional information about loan repayment can be found at https://studentaid.ed.gov/sa/repay-loans?utm_source=govdelivery.
If you have questions that are not addressed in either the FAQs or the links above, please email the Receiver’s office at info@regulatoryresolutions.com.
Notice to Employees – January 16, 2019
The Receiver has begun the process of vacating the offices. If any El Dorado Hills employees wish to retrieve their personal items from the El Dorado Hills location, you may do so on Tuesday, January 22, 2019 between 12:00 p.m. and 2:00 p.m. If any Rohnert Park employees wish to retrieve their personal items from the Rohnert Park location, you may do so Wednesday, January 23, 2019 between 12:00 p.m. and 2:00 p.m. This will be your last opportunity to retrieve personal items. All remaining items will be deemed abandoned and disposed of accordingly.
Regarding W-2s, once we receive the employees W-2s from ADP, we will mail them to the employees. We expect this will be completed before January 31, 2019.
Pursuant to the Court Order dated December 21, 2018, the Receiver was authorized to “pay pre-receivership regular pay, hours worked during the pay period of 11/19 – 11/29/18 at normal hourly rates.” The Receiver was not authorized to pay any other form of compensation, which includes vacation time. Unless Defendant Brandon Frere transfers money to pay vacation time and the Court issues an order authorizing the Receiver to make such payments, the Receiver will not pay any vacation time that accrued before November 29, 2018.
The Receiver has terminated the CaliforniaChoice health care plans effective December 31, 2018. CaliforniaChoice will send termination notices, which will explain that health care coverage is available from Covered California (https://www.coveredca.com/individuals-and-families/getting-covered/special-enrollment/).
Receiver’s Preliminary Report
On December 21, 2018, the Receiver filed his Preliminary Report with the Court. Click here to read the report, or view it from the documents section of this webpage.
Employee Update – December 21, 2018
Court Grants Stipulation to Fund Pre-Receivership Payroll
The Receiver applied (with the parties’ stipulation) to the Court to use funds sent by Defendant Frere for purposes of funding pre-receivership payroll. The Court granted the stipulation. (See Order Granting Stipulation to Fund Pre-Receivership Payroll in documents section of this webpage.) The Order provides:
“Pursuant to the stipulation, the Receiver is authorized to use the $83,945.86 received from Defendant Frere to pay pre-receivership regular pay, hours worked during the pay period of 11/19 – 11/29/18 at normal hourly rates. In calculating regular pay, the Receiver will not include commissions, bonuses, car and cell phone allowances, reimbursements or any other forms of compensation. The Receiver is authorized to make an immediate interim payroll distribution up to the amount forwarded thus far by Defendant Frere ($83,945.86). If, and when, the contemplated additional funds are transferred from Defendant Frere, the Receiver is authorized to make additional payroll distributions on a pro rata basis up to the point that regular pay is entirely funded.”
Employee Update – December 21, 2018 – PM
Payroll Issued
The Receiver received the remainder of the Frere funds this afternoon. As such, we were in a position to have ADP run the pre-receivership regular pay. See Order at right for further information. Employees should have received the transfers from ADP this afternoon. If you received or requested paper checks, ADP will send them to our office. We will mail the checks to you once they are received.
If you have questions or concerns, please direct them to info@regulatoryresolutions.com
Notice to Employees – Payroll Update – December 20, 2018
We received some, but not all, of the payroll funds from Defendant Brandon Frere. We hope the remainder of the funds will be wired tomorrow. We have coordinated with ADP and our goal is to run payroll tomorrow, even if it is a partial payroll, to get some funds to employees. Of course, our hope is to receive the remainder of the funds. We understand the anxiety and frustration employees are feeling and we are doing our best to resolve the situation.
Notice to Employees – Payroll Update – December 14, 2018
After numerous discussions with defense counsel regarding payroll, Defendant Brandon Frere has agreed to the Receiver’s demand that he transfer money to fund payroll for the pay period prior to the receivership (November 18, 2018 through November 29, 2018). We do not know how much Mr. Frere will transfer or when funds will arrive. We are presently coordinating with ADP, and upon receipt of funds we will work with ADP to issue payroll for the pre-receivership period November 18, 2018 to November 29, 2018 (the day the receivership was imposed). Our goal is to have the payroll issued next week.
Notice to El Dorado Hills Employees – December 13, 2018
If you wish to retrieve any personal items from the El Dorado Hills location, you may do so tomorrow, Friday, December 14, 2018 between 1:00 p.m. and 3:00 p.m.
Notice to Employees – December 12, 2018
Operations will continue to be suspended into next week as the Receiver and his team continue to investigate the business pursuant to the Court’s Preliminary Injunction.
If you wish to retrieve any personal items from the Rohnert Park location, you may do so tomorrow, December 13, between 11:00 a.m. and 1:00 p.m. We will schedule a time for the El Dorado Hills location early next week.
Some employees have emailed the Court concerning the payroll they are due for the period before the Receiver was appointed. The Court has issued an order which states, among other things, “While the Court can understand why these employees and former employees may have thought it appropriate to communicate with the Court through this means, given the ex parte nature of the communications and the purpose of those email addresses it is not a proper method of communication. The Court directs counsel to meet and confer on how to respond to the email concerns.” Click here to read the Order.
The Preliminary Injunction prohibits the Receiver from paying pre-receivership obligations absent seeking an Order from the Court. As such, the pre-receivership payroll remains the obligation of the Defendants, including Defendant Brandon Frere. The Receiver has again offered to accommodate the payment of payroll if Mr. Frere will fund the payroll. That proposal remains outstanding.
One employee contends she can be paid because she is the only employee of one of the corporate Defendants (FEBC). The Preliminary Injunction prohibition applies to all three corporate Defendants.
We will post regular updates. If you have additional questions, please send to info@regulatoryresolutions.com.
Notice to Employees – December 5, 2018
Operations will remain suspended into at least next week as the Receiver and his team continue to conduct an initial investigation.
If you wish to retrieve any personal items from the Rohnert Park location, you may do so tomorrow, December 6, between 11:00 a.m. and 1:00 p.m. We will schedule a time for the El Dorado Hills location in the near future.
November 29, 2018
The Federal Trade Commission filed an action against Financial Benefits Center, Financial Education Benefits Center, AmeriTech Financial, and Brandon Demond Frere. After extensive briefing, on November 29, 2018, the United States District Court entered a Preliminary Injunction Order which, among other things, appointed Thomas McNamara as Receiver over the Corporate Defendants. A copy of the Preliminary Injunction Order is available in the document section of this webpage, as is a Contempt Motion filed by the Receiver on December 4, 2018.
The Receiver and his team have suspended business operations while they conduct their initial investigation.