Student Loan Fraudsters Permanently Banned From Debt Relief Industry And Required to Turn Over All Assets as Result of FTC Action

As a result of a Federal Trade Commission lawsuit, a fraudulent student loan debt relief operation and its owners are permanently banned from the debt relief industry and required to turn over all assets to resolve allegations that they misled consumers.

“Consumers looking to pay off their student loan debt should not have to worry about being scammed,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC will continue to hold fraudsters that pocket Americans’ hard-earned money accountable.”

The FTC alleged Panda Benefit Services (also doing business as Prosperity Benefit Services), its affiliates, and its operators (collectively, defendants):

• targeted consumers burdened with student loan debt and tricked them into paying hundreds to thousands of dollars in illegal fees toward fake student loan forgiveness;
• falsely claimed that consumers who paid for defendants’ program were guaranteed loan forgiveness and that the program would reduce their loan payments;
• pretended to be affiliated with the U.S. Department of Education, telling consumers they would take over servicing of their loans while actually pocketing consumers’ money; and
• swindled more than $16.7 million in unlawful advance fees from students seeking debt relief.

On May 14, 2025, the court entered a stipulated order with Select Student Services and Eduardo Martinez. At the FTC’s request, the court entered a default judgment against Public Processing Services, Quick Start Services, and Signature Processing Services on May 6, 2025. Previously on October 2, 2024, the court entered stipulated orders with Panda Benefit Services, Pacific Quest Services, Prosperity Loan Services, Emiliano Salinas, and Melissa Salinas and with Clarity Support Services and Christopher Hanson.

The final orders ban defendants from the debt relief industry. The orders against Select Student Services and Eduardo Martinez and Public Processing Services, Quick Start Services, and Signature Processing Services also ban them from telemarketing. In addition, the orders prohibit the defendants from:

• making any misrepresentations about other products or services;
• using false statements to collect consumers’ financial information; and
• impersonating any other people or government entities 

Finally, the order as to Student Services and Martinez impose a monetary judgment of nearly $16.8 million, which, in the case of the stipulated orders, is mostly suspended due to an inability to pay. Those defendants are required to turn over millions in personal and business assets. If either of those defendants are found to have materially misrepresented their finances, the full amount of the monetary judgment would become immediately due from that defendant.

The FTC has resources on how to avoid student loan debt relief scams at ftc.gov/StudentLoans. Consumers can get assistance with their student loans for free at StudentAid.gov.

The Commission vote approving the stipulated final order with Select Student Services and Eduardo Martinez was 3-0. The Commission votes approving the stipulated final orders with Panda Benefit Services, Pacific Quest Services, Prosperity Loan Services, Emiliano Salinas, and Melissa Salinas and with Clarity Support Services and Christopher Hanson were 5-0. The FTC filed the orders in the U.S. District Court for the Central District of California.

The staff attorneys on this matter are Gregory Ashe and Sally Tieu of the FTC’s Bureau of Consumer Protection.