FTC Stops Sprawling Credit Repair Scheme that Scammed Consumers Out of Nearly $200 Million
The FTC secured a court order halting a $200 million credit repair scheme involving 17 companies and five principals for allegedly deceiving consumers with false promises and illegal fees since 2016.
A federal court temporarily halted a sprawling credit repair scheme operated by 17 companies and five principals, including Credit Glory LLC and its affiliates, after the FTC alleged widespread deception since 2016. The complaint accuses the defendants of falsely promising credit improvements, impersonating creditors, and charging illegal upfront and recurring fees totaling nearly $200 million. The FTC specifically targeted the use of paid Google ads to lure vulnerable consumers, including military servicemembers, with false claims about disputing debts owed to entities like the Army & Air Force Exchange Service and USAA.
The FTC’s complaint alleges violations of multiple laws, including the FTC Act, Credit Repair Organizations Act, and Telemarketing Sales Rule, among others. Defendants named in the case include Credit Glory LLC (incorporated in three states), Credit Glory Inc., and several related entities, along with principals Alexander Brola, Liam Emery, Marko Petkovic, Joshua Curtis, and David Naylor. The FTC emphasized that the operation’s tactics, such as upfront fee requirements and deceptive advertising, were particularly harmful to consumers seeking legitimate credit repair services.
The court action follows an FTC vote authorizing the complaint, filed in the U.S. District Court for the District of Arizona. The FTC’s Bureau of Consumer Protection, led by Director Christopher Mufarrige, condemned the scheme as egregious, noting the targeting of military servicemembers and the use of fraudulent tactics to exploit financial vulnerabilities. The case will proceed in court, with lead attorneys Gregory A. Ashe and Benjamin Cady representing the FTC.
The FTC’s broader mission includes protecting consumers from deceptive practices and educating the public about fraud prevention. Consumers are advised to report suspected scams to ReportFraud.ftc.gov and seek information on credit repair legitimacy through consumer.ftc.gov. The FTC reiterated its commitment to holding fraudulent operations accountable while providing resources to help consumers avoid similar schemes.