FTC Seeks to Add New Defendants in Student Debt Relief Case

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The Federal Trade Commission moved to add two new defendants to an ongoing case against a California-based student debt relief operation shuttered pursuant to a court order obtained by the Commission in November 2018. The scheme allegedly bilked consumers out of millions of dollars using false promises that they could reduce their monthly payments, or eliminate or reduce their student loan debt.

The proposed new defendants, Capital Sun Investments, LLC, a Wyoming firm based in California, and its manager, Jimmy Calderon, are alleged to have been part of the deceptive operation, which targeted tens of thousands of consumers trying to obtain lower monthly payments or forgiveness of their student loan debts.

The Commission vote to file the amended complaint was 5-0. The proposed amended complaint was filed in the U.S. District Court for the Central District of California on February 5, 2019.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook, follow us on Twitter, read our blogs, and subscribe to press releases for the latest FTC news and resources.

Contact Information

MEDIA CONTACT:
Nicole Jones
Office of Public Affairs
202-326-2565

STAFF CONTACTS:
Joshua Millard
Bureau of Consumer Protection
202-326-2454

Brian Welke
Bureau of Consumer Protection
202-326-2897