A Federal Trade Commission lawsuit has resulted in a permanent ban on a fraudulent student debt relief operation, and its owners. They are also required to surrender all assets as a resolution to allegations that they misled customers.
Christopher Mufarrige is the Director of FTC’s Bureau of Consumer Protection. He said that consumers who are looking to pay back their student loans should not be concerned about being scammed. The FTC will continue to hold those who steal Americans’ hard-earned cash accountable.
According to the FTC, Panda Benefit Services (also known as Prosperity Benefit Services), and its affiliates (collectively defendants) were involved in a scheme that promised users a free service.
- The scam targeted students with debts and tricked them to pay hundreds of thousands of dollars illegally for a fake forgiveness.
- Falsely claimed that defendants’ program would guarantee loan forgiveness to consumers who paid for it and reduce their payments.
- Pretended to be affiliated the U.S. Department of Education and told consumers that they would handle their loan servicing while taking money from consumers;
- Swindled students who were seeking debt relief of more than $16.7 Million in illegal advance fees.
The court entered an agreed order on May 14, 2025 with Select Student Services, Eduardo Martinez. On May 6, 2025, at the FTC’s request, a default judgment was entered against Public Processing Services , Quick Start Services , and Signature Processing Services . On October 2, 2024 the court had stipulated orders in place with Panda Benefit Services, Pacific Quest Services, Prosperity loan Services, Emiliano Salinas, and Melissa Salinas, as well as Clarity Support Services, and Christopher Hanson.
The final orders prohibit defendants from engaging in the debt relief business. Select Student Services, Eduardo Martinez, Public Processing Services, Quick Start Services and Signature Processing Services are also banned from telemarketing by the orders. The orders also prohibit defendants from:
- Making any false representations about other products or service;
- False statements used to collect financial information from consumers;
- Impersonating other people or government agencies
Finaly, the order imposed on Student Services and Martinez imposes a monetary judgement of approximately $16,8 million. This judgment is suspended in most cases due to inability to pay. These defendants must turn over millions of dollars in assets, both personal and business. If any of these defendants is found to have materially lied about their financial situation, they will be immediately liable for the entire amount of the monetary judgement.
The FTC has resources on how to avoid student loan debt relief scams at ftc.gov/StudentLoans. Consumers can receive free assistance with student loans at StudentAid.gov.
The vote of the Commission to approve the stipulated order final with Select Student Services was 3-0. The votes of the Commission to approve stipulated final order with Panda Benefit Services (Pacific Quest Services), Prosperity Loan Services (Emiliano Salinas), Melissa Salinas (Emiliano Salinas), and Clarity Support Services with Christopher Hanson was 5-0. The FTC filed these orders with the U.S. District Court of the Central District of California.
Gregory Ashe and Sally Tieu are the staff attorneys in this case from the Bureau of Consumer Protection of FTC.
