WASHINGTON, D.C. — The Federal Trade Commission (FTC) has intensified its efforts to dismantle what it alleges is an unlawful student loan debt relief operation, adding five additional corporate defendants and two individual defendants to the case initially filed in November 2024. The agency seeks to permanently end the defendants’ practices, which have allegedly defrauded borrowers out of millions of dollars.
The amended complaint broadens the FTC’s legal action against Nevada-based Superior Servicing and its operator, Dennise Merdjanian, who were originally accused of falsely claiming to be affiliated with the U.S. Department of Education. According to the FTC, the defendants touted false promises of student loan forgiveness while extracting significant sums from borrowers.
“Our aim is to put an end to deceitful practices that take advantage of individuals already burdened by significant student loan debt,” stated an FTC representative.
Amended Complaint Details
The new complaint names five corporate entities—Sunrise Solutions USA LLC, Alumni Advantage LLC, Student Processing Center Group LLC, SPCTWO LLC, and Accredit LLC—as part of the broader operation. The two additional individual defendants, Eric Caldwell and David Hernandez, are alleged to have worked alongside Merdjanian to run the fraudulent scheme.
According to the FTC, the illegal operation employed a network of shifting corporate entities to obscure its activities and prey on vulnerable consumers. The defendants advertised debt forgiveness services that were never delivered, while charging borrowers hundreds of dollars in illegal advance fees. The services provided, if any, were of little to no value, often leaving borrowers in worse financial situations than when they started.
The operation primarily targeted consumers struggling with student loan debt, leveraging false promises to obtain upfront fees. The FTC claims that, in reality, the defendants provided minimal or no actual assistance with loan forgiveness or modifications.
Court Actions
The FTC’s original November 2024 complaint successfully led to a temporary halt of the operation and the freezing of its assets by a federal court in Nevada. This latest development seeks to extend those measures into permanent prohibitions.
The Commission’s unanimous 4-0 vote to authorize the filing of the amended complaint demonstrates its unified stance on taking strong legal action against what it identifies as harmful and predatory practices.
Broader Implications
This case reflects the agency’s ongoing commitment to proactively address fraud in financial services, particularly schemes that exploit consumers burdened by education-related debt. With student loan repayment resuming for many Americans after pandemic-related pauses, the FTC has stressed that individuals need transparent, legitimate, and ethical financial services.
Consumers are urged to be vigilant against offers that seem too good to be true, particularly those requiring upfront payments for debt forgiveness. The FTC reminds borrowers that legitimate student loan forgiveness programs are typically offered through official government channels without demanding advance fees.
Next Steps
The FTC’s case is ongoing, and the agency has signaled its intent to pursue permanent bans against the defendants to prevent future misconduct. Efforts to return funds to defrauded consumers may hinge on the outcome of court proceedings.
This latest action reinforces the FTC’s broader mission to combat deceptive practices and safeguard consumers navigating intricate financial landscapes.
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