FTC Says Nevada Company Defrauded Student Loan Borrowers Out Of More Than $10 Million

A Nevada company is accused of defrauding student loan borrowers out of millions by charging fees for a debt relief scheme that falsely promised lower payments and loan forgiveness.

Last month, the U.S. District Court in the District of Nevada granted a temporary restraining order against Superior Servicing LLC and its operator, Dennise Merdjanian. A public records search shows an Orange County, California, address for Merdjanian.

The order halted the scheme and froze the company’s assets, the Federal Trade Commission said in a release this week.

According to a complaint filed by the FTC, since January 2023, Superior Servicing made telemarketing calls and sent personalized mailers to borrowers, claiming they could obtain benefits such as loan consolidation, reduced interest rates, lower monthly payments or loan forgiveness.

The complaint alleges that the company also misrepresented itself as being affiliated with the U.S. Department of Education or borrowers’ loan servicers to gain their trust.

Borrowers were charged initial fees ranging up to nearly $900, followed by monthly payments that they were told would go toward their loans. In some cases, borrowers were advised to stop making payments to their loan servicers altogether with Superior Servicing promising to take over loan servicing and payments.

The FTC said borrowers never received relief.

The FTC’s complaint alleges that Superior Servicing violated its Trade Regulation Rule on Impersonation of Government and Businesses, the FTC Act’s prohibition on deceptive practices, the Telemarketing Sales Rule and the Gramm-Leach-Bliley Act. Court filings detail six specific violations.

The company’s business license lists its offices in Las Vegas.

Following the Nov. 22 restraining order, a preliminary injunction was issued against the company on Dec. 6.