March 13, 2023 – Receiver’s Final Report and Discharge

On November 18, 2022, the Court issued an Order Implementing Appellate Mandate and Modifying Amended Final Judgment, thus concluding the case.  Having fulfilled his duties under the stipulated preliminary injunction, the Receiver filed his Final Report and Application for: (1) Discharge of Receiver; and (2) Approval of Final Fee Application on December 19, 2022 (copy available in the Documents section of this webpage).  On February 9, 2023, the Court granted the Receiver’s Application for Discharge and Final Fee Application.  The Court has also authorized the Receiver to liquidate the remaining sports memorabilia assets.

After payment of the final fee application and the approved reserve, the Receiver turned over the remaining funds 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).

June 10, 2022 – Court of Appeals Affirms District Court Decision

On June 9, 2022, the Ninth Circuit Court of Appeals issued its decision on the Defendants’ appeal.  The appellate court rejected the Defendants’ arguments and affirmed the District Court’s grant of summary judgment in favor of the FTC in all material respects.  The decision is available in the documents section of this webpage.  Once the Ninth Circuit closes the appeal and transfers the case back to the District Court, the stay of the underlying case will be lifted and a final judgment in favor of the FTC will be issued.

March 14, 2022

As previously reported, Defendants appealed the district court’s granting of summary judgment in favor of the FTC.  Oral argument before the Ninth Circuit Court of Appeals was heard on December 9, 2021.  A written decision from the appellate court is expected in the near future.  Until the decision is rendered and a mandate is issued, the underlying FTC case remains stayed.

Currently, the Receiver has until July 20, 2022 to complete his duties.  If the FTC prevails in the case, the matter of refunds will be an issue for them to resolve with the Court’s approval.

June 2021

Defendants have appealed the District Court’s granting of summary judgment in favor of the FTC.  The Defendants’ brief on appeal was recently filed and the FTC’s response will be filed in August.  It will be some months after the briefing is complete before the Ninth Circuit issues a decision.

July 17, 2020 – Final Judgment Entered

On July 6, 2020, the Court ruled on the cross-motions for summary judgment, denying Defendants’ motion for summary judgment and granting the FTC’s motion for summary judgment.  Judgment against all defendants in the amount of $27,584,969.00 was entered by the Court on July 17, 2020.  A copy of the Judgment is available in the documents section of this webpage.  The Receiver is directed to wind up the receivership and liquidate all assets within 180 days after entry of the July 17 Order.  Once that has been completed, the Receiver will turn over the funds he has marshaled 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).

February 21, 2020

The FTC’s lawsuit remains pending.  The parties have engaged in discovery (the exchange of documents and depositions), which recently ended.  The parties may now file motions for summary judgment and if the case is not resolved at that stage the matter could continue to trial.

January 17, 2020 – W-2s for Former Employees

The Receiver has received several inquiries concerning W-2s from former employees.  The Receiver has contacted ADP, the payroll provider, and instructed them to issue W-2s.  We expect ADP to issue W-2s by January 31, 2020.  If your mailing address has changed, please email your new address to info@regulatoryresolutions.com with the subject line “MISSION HILLS – W-2 ADDRESS CHANGE.”

Notice to Employees – July 24, 2019

The Receiver’s staff will provide employees one final opportunity to retrieve their personal items from 3 Studebaker, Irvine on Monday, July 29, 2019 between 3:00 p.m. and 5:00 p.m.  All remaining personal items will be deemed abandoned and disposed of accordingly.

July 18, 2019

On July 17, 2019, the Court entered a Stipulated Preliminary Injunction against all Defendants, continuing the terms of the Temporary Restraining Order entered July 8, 2019 and confirming Thomas W. McNamara’s appointment as Receiver for the business activities of the Receivership Entities.  The Preliminary Injunction hearing previously set for July 19, 2019 has been vacated.  A copy of the Stipulated Preliminary Injunction can be accessed through this link or through the document section of this webpage.

On July 18, 2019, the Receiver filed his Preliminary Report with the Court.  A copy of the Preliminary Report can be accessed through this link or through the document section of this webpage.  The Receiver has made the determination that the Receivership Entities’ businesses cannot go forward legally and profitably and therefore, the businesses have been closed permanently.

We are continuing our investigation to identify and recover assets, the proceeds from which will ultimately be turned over to the Federal Trade Commission (“FTC”).  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), however this will likely not take place until the case has concluded.

Once again, we recommend that you immediately contact your student loan servicer regarding the status of your loan 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.

Please see the Frequently Asked Questions (“FAQs”) document that we have prepared for answers to some of the most common concerns.

Notice Regarding FTC Lawsuit

Notice to all customers regarding student loan debt relief assistance.

The companies listed below 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 July 8, 2019, naming as Defendants all of the companies listed below, along with their principals.  The Court entered a Temporary Restraining Order (“TRO”) the same day, which prohibits any further unlawful conduct and appoints a Temporary Receiver to take possession and control of these businesses.  Copies of the FTC’s Complaint and the TRO can be accessed by clicking the links or in the documents section of this webpage.  The Temporary Receiver has suspended operations and is now conducting a review of the businesses.

The Court has set July 19, 2019 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 July 19, 2019, these companies will have very limited operations.  In the meantime, if you have additional questions, please send to info@regulatoryresolutions.com.

Companies named in the FTC’s lawsuit:

  • Elegant Solutions, Inc., also doing business as Federal Direct Group
  • Trend Capital Ltd., also doing business as Mission Hills Federal
  • Dark Island Industries, Inc., also doing business as Federal Direct Group and Cosmopolitan Funding Inc.
  • Heritage Asset Management, Inc., also doing business as National Secure Processing
  • Tribune Management, Inc., also doing business as the Student Loan Group

The principals of these companies are also named as Defendants in the FTC lawsuit.  They include:  Mazen Adib Radwan (aka Mike Radwan),    Rima Radwan, and Dean Paul Robbins.