The Federal Trade Commission has reached settlements with two individuals accused of running a fraudulent student loan forgiveness scheme, permanently banning them from the debt relief industry and requiring them to turn over more than $2.1 million in assets.
The big picture: Eric Caldwell and David Hernandez were key operators in a web of companies — Superior Servicing, Sunrise Solutions USA, Alumni Advantage, Student Processing Center Group, SPCTWO, and Accredit — that the FTC said misled student loan borrowers by pretending to be affiliated with the Department of Education. The companies charged illegal upfront fees, misrepresented the services being offered, and left consumers deeper in debt.
The enforcement details: The proposed settlements require:
- Caldwell to pay $1.55 million and surrender assets, including accounts tied to multiple LLCs and luxury vehicles (e.g., a 2021 Sea Ray boat and a 2017 Corvette).
- Hernandez to pay $108,913 and relinquish control over several business accounts and properties, including a home tied to his LLC and a property in Orange, Calif.
In total, more than $2.1 million in assets will be turned over. A $45.9 million monetary judgment was entered against each defendant but will be partially suspended due to inability to pay, which will remain in place unless it’s found the individuals misrepresented their finances.
The ongoing case: Litigation continues against a third individual, Dennise Merdjanian, and the corporate entities named in the FTC’s complaint. The regulator alleges the group operated a rotating network of companies, making it harder for consumers, and regulators, to track the fraudulent activities.
What’s next: The court-appointed receiver will liquidate the surrendered assets, and the FTC may use recovered funds for consumer redress. Any remainder may be deposited into the U.S. Treasury.
Read the order against Caldwell. Read the order against Hernandez
