Facts

The Federal Trade Commission brought an action against defendants under Section 13(b) of the Federal Trade Commission Act, the Telemarketing and Consumer Fraud and Abuse Prevention Act, and the 2009 Omnibus Appropriations Act, seeking a permanent injunction and other equitable relief.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that defendants violated the law in connection with their marketing of mortgage assistance relief services and student loan debt relief services. Specifically, defendants marketed their services to financially distressed individuals, promising that they could obtain mortgage loan modifications or loan restructuring, or renegotiate, settle or otherwise alter the terms of payment for student loan debt. Defendants, however, failed to deliver as promised. They also failed to return to their customers preenrollment fees paid before the rendering of services, which ranged from $1,000 to $5,000 for their mortgage customers and between $500 and $800 for their student debt relief customers.

DEFENDANTS' CONTENTIONS:
Defendants Tobias West and Komal West neither admitted nor denied the allegations in the complaint, except as specifically stated in the court's order for permanent injunction and final judgment.

Result

Pursuant to the order, defendants Tobias West and Komal West were banned from engaging in business relating to secured and unsecured debt relief products and services; prohibited from making misrepresentations relating to financial products and services; prohibited from making misrepresentations relating to any products or services; and prohibited from making unsubstantiated claims. Additionally, judgment in the amount of $2,329,456 was entered in favor of plaintiff and against the stipulating defendants. A portion of the judgment will be suspended upon payment of certain funds.

Other Information

FILING DATE: Feb. 16, 2016.