WASHINGTON—The Federal Trade Commission and the Department of Justice reported they are sending more than $9 million in refunds to consumers who lost money to Ameritech Financial, a student loan debt relief scheme operated by Brandon Frere, who was convicted of criminal charges in connection with the scheme.
The FTC is sending payments to 22,562 consumers.
According to the FTC’s February 2018 complaint, Frere and his companies pretended to be affiliated with the U.S. Department of Education and charged up to $800 in illegal up-front fees. They also falsely told people that their $49-$99 monthly membership fees were going toward their student loan balance. In November 2020, the FTC announced that Frere and his companies were banned from providing debt relief services and prohibited from violating the Telemarketing Sales Rule.
Guilty Plea
The FTC noted that in December 2018, the Department of Justice brought criminal charges against Frere and his companies. Frere eventually pleaded guilty, and in July 2020 a U.S. district court judge sentenced Frere to 42 months in prison and ordered him to forfeit assets worth over $8.9 million. The refunds being sent combine all the available funds from the FTC and DOJ settlements, the FTC said.
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