Monster Loans, Lend Tech Loans, and Associated Student Loan Debt-Relief Companies
On January 9, 2020, the Bureau filed a lawsuit against Chou Team Realty, LLC f/k/a Chou Team Realty, Inc., d/b/a MonsterLoans, d/b/a Monster Loans;Lend Tech Loans, Inc.; Docu Prep Center, Inc., d/b/a DocuPrep Center, d/b/a Certified Document Center; Document Preparation Services, LP, d/b/a DocuPrep Center, d/b/a Certified Document Center; Certified Doc Prep, Inc.; Certified Doc Prep Services, LP; Assure Direct Services, Inc.; Assure Direct Services, LP; Direct Document Solutions, Inc.; Direct Document Solutions, LP; Secure Preparation Services, Inc.; Secure Preparation Services, LP; Docs Done Right, Inc.; Docs Done Right, LP; Cre8labs, Inc.; XO Media, LLC; TDK Enterprises, LLC; Bilal Abdelfattah a/k/a Belal Abdelfattah a/k/a Bill Abdel (“Bill Abdel”); Thomas “Tom” Chou; Sean Cowell; Robert Hoose; Kenneth Lawson; Eduardo “Ed” Martinez; Jawad Nesheiwat; Frank Anthony Sebreros; and David Sklar. The Bureau alleged that many of the defendants violated the Fair Credit Reporting Act (FCRA) by wrongfully obtaining consumer report information and that, in connection with the marketing and sale of student loan debt relief products and services, certain defendants charged unlawful advance fees and engaged in deceptive acts and practices. The complaint also alleged that certain entities and individuals are liable as relief defendants because they received profits resulting from the illegal conduct.
On May 14, 2020, the Bureau, and Chou Team Realty, LLC, Thomas Chou, TDK Enterprises, LLC, Cre8labs, Inc., and Sean Cowell moved for entry of a stipulated final judgment, which the court entered the same day and which resolves the Bureau’s claims against those defendants and relief defendants. The judgment imposes an $18 million redress judgment against Monster Loans, bans Monster Loans, Chou, and Cowell from the debt-relief industry, and imposes a total $450,001 civil money penalty against them.
On July 7, 2020, the court approved a stipulated final judgment between the Bureau and Robert Hoose, which resolves the Bureau’s claims against him. The judgment imposes a $7 million redress judgment against Hoose, bans him from the debt-relief industry, and imposes a $1 civil money penalty against him.
On July 10, 2020, the Bureau filed a first amended complaint adding factual allegations regarding certain defendants. On July 30, 2020, the Bureau moved for leave to file a second amended complaint adding claims against certain defendants. The court granted that motion in August 2020, and on August 26, 2020, the Bureau filed a second amended complaint.
On October 19, 2020, the court approved a stipulated final judgment between the Bureau and relief defendants Kenneth Lawson and XO Media, LLC, which resolves the Bureau’s claim against them. The judgment imposes a $200,000 redress judgment against Lawson and XO Media, LLC.
On May 4, 2021, the court entered stipulated final judgments against Lend Tech Loans, Inc. and David Sklar, which resolve the Bureau’s claims against them. The judgment as to Lend Tech Loans requires it to dissolve and cease to exist as a corporate entity, bans it from offering or providing any consumer financial product or service, and imposes a $1 civil money penalty against it, based on its limited ability to pay. The judgment as to Sklar imposes a $7 million redress judgment against him, full payment of which is suspended based upon his limited ability to pay upon his payment of $3,000 to the Bureau; it also bans him from the debt-relief industry and from telemarketing consumer financial products or services and imposes a $1 civil money penalty against him.
On May 7, 2021, the court entered a default judgment in favor of the Bureau and against the following student loan debt relief companies: Docu Prep Center, Inc., d/b/a DocuPrep Center, d/b/a Certified Document Center; Document Preparation Services, LP, d/b/a DocuPrep Center, d/b/a Certified Document Center; Certified Doc Prep, Inc.; Certified Doc Prep Services, LP; Assure Direct Services, Inc.; Assure Direct Services, LP; Direct Document Solutions, Inc.; Direct Document Solutions, LP; Secure Preparation Services, Inc.; and Secure Preparation Services, LP. The default judgment imposes redress judgments against the companies that collectively total $19,699,869 and civil penalties against the companies that collectively total $11,382,136. The default judgment also bans the companies from the debt relief industry.
On May 7, 2021, the court entered a default judgment against Bilal Abdelfattah a/k/a Belal Abdelfattah a/k/a Bill Abdel (“Abdel”) in favor of the Bureau. The judgment imposes a civil penalty of $3,262,244 against Abdel and bans him from the debt-relief industry.
On May 11, 2021, the court entered a stipulated final judgment against Docs Done Right, Inc., Docs Done Right, LP (collectively, “Docs Done Right”), and Eduardo Martinez, which resolves the Bureau’s claims against them. The judgment imposes an $18 million redress judgment against Martinez and Docs Done Right, full payment of which is suspended based on their limited ability to pay upon their payment of the ordered penalty, bans them from the debt-relief industry, and imposes a $125,000 civil money penalty against them.
On May 11, 2021, the court entered a stipulated final judgment against Frank Anthony Sebreros, which resolves the Bureau’s claims against him. The judgment imposes a $3,404,455 redress judgment against Sebreros, full payment of which is suspended based on his limited ability to pay upon his payment of $35,000; it also bans him from the debt relief industry and from telemarketing consumer financial products or services, and imposes a $1 civil money penalty against him.
On August 10, 2021, the district court granted in full the Bureau’s Motion for Summary Judgment against Jawad Nesheiwat, the sole remaining defendant at that time. The court found Nesheiwat was liable for violating FCRA, the TSR advance fee ban, the TSR and CFPA prohibitions on deceptive practices and substantially assisting violations, and §1036(a)(1)(A). The court found the Bureau was entitled to injunctive relief, restitution, and civil money penalties, although it did not determine those amounts in the opinion. On September 23, 2021, the court entered a judgment and order against Nesheiwat imposing a judgment of nearly $20 million in consumer redress, a $20 million civil money penalty, and injunctive relief including permanent bans from the debt-relief and mortgage industries, from using consumer reports for business purposes, and from telemarketing consumer financial products and services. On September 25, 2021, Nesheiwat appealed the judgment against him. On December 27, 2022, the Ninth Circuit affirmed the district court’s grant of summary judgment and award of restitution, civil penalties, and injunctive relief to the Bureau. Defendant Nesheiwat filed a petition for en banc review, which the Ninth Circuit denied on February 23, 2023.
Related documents
Complaint – Jan 09, 2020
Stipulated Judgment and Order – Chou Team Realty, et al. – May 14, 2020
Stipulated Judgment and Order – Robert Hoose – Jul 07, 2020
First amended complaint – Jul 10, 2020
Second amended complaint – Aug 26, 2020
Stipulated Judgment and Order – Kenneth Lawson and XO Media, LLC – Oct 19, 2020
Stipulated Final Judgment and Order – Lend Tech Loans, Inc. – May 04, 2021
Stipulated Final Judgment and Order – David Sklar – May 04, 2021
Default Judgment and Order – Docu Prep Center, Inc., et al. – May 07, 2021
Default Judgment and Order – Bilal Abdelfattah – May 07, 2021
Stipulated Final Judgment and Order – Docs Done Right & Martinez – May 11, 2021
Stipulated Final Judgment and Order – Frank Anthony Sebreros – May 11, 2021
Final Judgment – Jawad Nesheiwat – Sep 23, 2021
U.S. Court of Appeals Memorandum - Jawad Nesheiwat – Dec 27, 2022
Press Release
Consumer Financial Protection Bureau Settles with Monster Loans, Thomas Chou, Sean Cowell, and Related Companies – May 14, 2020