FTC Secures Settlement in Transnational Student Loan Debt Relief Scam

Federal Trade Commission (FTC)

WASHINGTON, D.C. — The Federal Trade Commission (FTC) has finalized a settlement with the operators of a transnational student loan debt relief scheme that defrauded borrowers of millions of dollars. The settlement permanently bans the operators from the debt relief industry and mandates the surrender of over $1 million in assets.

The FTC’s case, initiated in July 2024, accused Florida-based Start Connecting LLC, Colombia-based Start Connecting SAS, and their operators Douglas Goodman, Doris Gallon-Goodman, and Juan Rojas of multiple illegal acts, including misrepresenting a connection to the Department of Education, falsely promising permanent loan forgiveness, and charging unlawful advance fees. The operation allegedly collected over $7.3 million from borrowers in fees for non-existent services while using fake testimonials and reviews to market their business.

Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, condemned the deceptive practices, stating, “It is illegal for debt relief companies to make false promises and use fake reviews and testimonials to promote a business. The FTC will not hesitate to enforce the law against bad actors.”

Under the settlement, the defendants are barred from engaging in debt relief services, misrepresenting affiliations, making false promises, and using fake marketing testimonials. Additionally, they are prohibited from charging advance fees and engaging in unlawful telemarketing practices. The operators must surrender more than $1 million in personal and business assets as part of a partially suspended monetary judgment totaling $7.3 million. Full payment of the judgment will be enforced if the defendants are found to have misrepresented their finances.

The FTC’s enforcement action is another example of its commitment to protecting consumers from fraudulent debt relief schemes. The settlement, approved by a Commission vote of 3-0, has been filed in the U.S. District Court for the Middle District of Florida. Once approved by the court, the stipulated final order will carry the force of law.

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This case was handled by FTC attorneys Nathan Nash and D’Laney Gielow of the Midwest Region.

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