October 17, 2023 – Parties Stipulate to Permanent Injunction
Defendants have settled with the FTC and on October 5, 2023, the parties filed a Stipulation to Entry of Order for Permanent Injunction, Monetary Relief, and other Relief as to all Defendants. Defendants are permanently prohibited from advertising, marketing, promoting, offering for sale, selling, or assisting others in the advertising, marketing, promoting, offering for sale, or selling, of any secured or unsecured debt relief product or service. See the Documents section of this webpage for a copy of the proposed Permanent Injunction.
The Receiver anticipates wrapping up his outstanding tasks and applying to the Court for discharge. At which time, any remaining funds he has marshaled will be turned over to the FTC.
May 22, 2023 – Preliminary Injunction Entered Against All Defendants
On May 22, 2023, the Court issued an Order Entering Stipulated Preliminary Injunction as to all defendants. This Order continued the asset freeze and the appointment of a receiver. All operations have been terminated. See the Documents section of this webpage for a copy of the Stipulated Preliminary Injunction.
The Federal Trade Commission will continue its lawsuit against the Defendants.
Refunds? We are often asked if there will be refunds to consumers. If the Federal Trade Commission prevails in the lawsuit, the matter of refunds for customers will be an issue for the FTC and the Court to resolve and that may be a long way off. We do not have any better information than that.
May 9, 2023 – Notice to All Clients Regarding Student Debt Relief Assistance
SL Finance LLC has been sued by the Federal Trade Commission for deceptive and unlawful practices.
The principals of these companies are also named as Defendants in the lawsuit. They include Michael Castillo and Christian Castillo.
The FTC’s lawsuit was filed on April 24, 2023, and names as Defendants the companies and their principals. The Court entered a Temporary Restraining Order (“TRO”) on May 2, 2023, which prohibits any further unlawful conduct and appoints a Temporary Receiver to take possession and control of the business. The Temporary Receiver has suspended operations and is now conducting a review of the business. Copies of the FTC’s Complaint and TRO can be found in the Documents section of this webpage.
On May 16, 2023, the Court will hold a hearing to determine whether a Preliminary Injunction should be entered. A Preliminary Injunction would extend the restrictions in the TRO until there is a trial of the case.
Debt Consulting Services, Inc. of Las Vegas, NV
Based on a preliminary investigation, the Receiver has determined that Debt Consulting Services, Inc. of Las Vegas, Nevada, which is owned and controlled by Defendants Michael and Christian Castillo and is also involved in student loan debt relief, qualifies as a Receivership Entity and is subject to the TRO. Debt Consulting’s operations have been temporarily suspended until the Preliminary Injunction hearing.
We recommend that you immediately contact your student loan servicer to confirm the status of your loan and 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 on the U.S. Department of Education website at: https://studentaid.gov/manage-loans/repayment/servicers.
At least until the date of the Preliminary Injunction hearing on May 16, 2023, these companies’ operations will remain suspended. We will post periodic updates to this website. If you have additional questions, please send them to info@regulatoryresolutions.com and reference the company involved.