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$3.3 million going to students scammed by California-based debt-relief company

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The FTC alleges Arete Financial Group tricked more than 37,800 students into making illegal, upfront payments.

Federal regulators are sending payments totaling $3.3 million to students who were bilked by an Orange County business claiming it would reduce their student loan debt.

The company used radio, television, online ads and telemarketing calls with the promise of student loan forgiveness, consolidation and repayment programs, the agency said. Representatives with Arete Financial and its affiliated businesses could not be reached for comment Wednesday. A settlement was reached the following year in U.S. District Court for the Central District of California when defendants Carey G. Howe, Anna C. Howe, Shunmin Hsu, Ruddy Palacios and Oliver Pomazi agreed to pay at least $835,000 to settle the FTC allegations.

 

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$3.3 million going to students scammed by OC-based debt-relief companyThe FTC alleges Arete Financial Group tricked more than 37,800 students into making illegal, upfront payments.
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