Global Financial Support, Inc. d/b/a Student Financial Resource Center, d/b/a College Financial Advisory; and Armond Aria a/k/a Armond Amir Aria

Agency: Consumer Financial Protection Bureau
Date: Oct. 29, 2015
Type: enforcement action
Source: consumerfinance.gov/enforcement/actions/student-financial-resource-cen
Pages: 79
PDFs: 4 documents (links below)

Documents in this case

Complaint · Oct. 2015 · 24 p.
Amended complaint · Aug. 2021 · 25 p.
Judgment · Aug. 2021 · 17 p.
Opinion · Apr. 2023 · 12 p.

Case summary

On October 29, 2015, the Bureau filed a complaint against Global Financial Support, Inc. (Global Financial), which operates under the names Student Financial Resource Center and College Financial Advisory, and its owner and CEO, Armond Aria. The Bureau alleged that the defendants issued marketing letters instructing students to fill out a form and pay a fee in exchange for the company providing a financial aid program or conducting extensive searches to target or match students with individualized financial aid opportunities. The Bureau also alleged that consumers who paid the fee received nothing or a generic booklet that failed to provide individualized advice. The Bureau also alleged that the defendants misrepresented their affiliation with government and university financial aid offices and pressured consumers to enroll through deceptive statements. On January 25, 2021, the court granted in part the Bureau’s motion for partial summary judgment against Armond Aria and default judgment against Global Financial, finding that 76,000 consumers purchased Global Financial’s “program” based on its misrepresentations. On February 16, 2021, the Bureau filed an amended complaint dismissing the remaining claims against Aria. On March 29, 2021, the court entered a final judgment and order against both defendants imposing injunctive relief, $4,738,028 in restitution to consumers, and a $10 million civil money penalty. Armond Aria filed an appeal of the final judgment to the Ninth Circuit on May 19, 2021. On December 13, 2022, the Ninth Circuit affirmed the district court’s decision in its entirety. On February 27, 2023, Aria filed a petition for rehearing or rehearing en banc, which the court denied on April 14, 2023.

Complaint (Oct. 2015)

PDF of this document (24 pages)

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ANTHONY ALEXIS Enforcement Director CARA PETERSEN Deputy Enforcement Director for Litigation NINA H. SCHICHOR, MD Bar (no assigned number) (E-mail: [email protected]) (Phone: 202-435-9770) LAURA SCHNEIDER, NY Bar # 2715449 (E-mail: [email protected]) (Phone: 202-435-7311) 1700 G Street NW Washington, DC 20552 Fax: (202) 435-7722

Attorneys for Plaintiff Consumer Financial Protection Bureau

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

Consumer Financial Protection Bureau,

Plaintiff,

Global Financial Support, Inc., d/b/a Student Financial Resource Center, d/b/a College Financial Advisory; and

Armond Aria a/k/a Armond Amir Aria, individually, and as owner and CEO of Global Financial Support, Inc.;

Defendants.

Case No. ________________

COMPLAINT FOR PERMANENT INJUNCTION AND OTHER RELIEF

'15CV2440 WVG GPC Case 3:15-cv-02440-GPC-WVG Document 1 Filed 10/29/15 Page 1 of 15

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The Consumer Financial Protection Bureau (the “Bureau”) alleges the following against Global Financial Support, Inc. d/b/a Student Financial Resource Center and College Financial Advisory (“Global Financial Support, Inc.”) and Armond Aria or Armond Amir Aria (“Armond Aria”) (together, “Defendants”): INTRODUCTION 1.

The Bureau brings this action under Sections 1031(a), 1036(a)(1)(B), 1054, and 1055 of the Consumer Financial Protection Act of 2010 (“CFPA”); 12 U.S.C. §§ 5531(a), 5536(a)(1)(B), 5564(a), and 5565 based on Defendants’ violations of the CFPA in connection with the offering, marketing, sale, and provision of student financial aid advisory services, and under Section 1016 of Regulation P, 12 C.F.R. §1016.4(a), based on Defendants’ failure to provide a required notice. 2.

Defendants, from at least January 2011 until the present (“Relevant Period”), have run a deceptive scheme to persuade consumers to pay a fee to apply for student financial aid assistance. In reality, Defendants do not provide these consumers with the promised student financial aid assistance.

JURISDICTION AND VENUE 3.

This Court has subject-matter jurisdiction over this action because the action is “brought under Federal consumer financial law,” 12 U.S.C. § 5565(a)(1), presents a federal question, 28 U.S.C. § 1331, and is brought by an agency of the United States, 28 U.S.C. § 1345.

Venue is proper in this District under 28 U.S.C. §§ 1391(b) and (c) and 12 U.S.C. § 5564(f).

PARTIES Plaintiff 5.

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U.S.C. § 5491(a). The Bureau has independent litigating authority, 12 U.S.C. §§ 5564(a) and (b), and is charged with enforcement of federal consumer financial laws including the Consumer Financial Protection Act (“CFPA”). 12 U.S.C. §5511. The CFPA prohibits any covered person from engaging in unfair, deceptive, or abusive acts or practices. 12 U.S.C. §§ 5531 and 5536.

Defendants Global Financial Support, Inc.

Defendant Global Financial Support, Inc. is a California corporation. Global Financial Support, Inc. conducts business as College Financial Advisory and Student Financial Resource Center.

Defendant Global Financial Support, Inc. claims its physical business address is 3268 Governor Drive, Suite F, PMB 144, San Diego, CA 92122 and consumers applying for financial aid assistance from College Financial Advisory or Student Financial Resource are directed to send their checks to 3268 Governor Drive, Suite #144, San Diego, CA 92122. The address, however, is a PostalAnnex+ store and not a business address.

Global Financial Support, Inc. is a “covered person” under the CFPA because it offers and provides “financial advisory services,” as that term is used in section 1002(15)(A)(viii) of the CFPA. 12 U.S.C. § 5481(15)(A)(viii). 9.

During the relevant period, Global Financial Support, Inc. transacts or has transacted business in the Southern District of California. Armond Aria 10.

Defendant Armond Aria is the owner and registered agent of Global Financial Support, Inc., the President of College Financial Advisory, and the CEO of Student Financial Resource Center.

11.

Mr. Aria founded Global Financial Support, Inc. in or around February 2005.

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12.

In March 2005, Mr. Aria created and registered the fictitious business name College Financial Advisory.

13.

In September 2011, Mr. Aria created and registered the fictitious business name Student Financial Resource Center.

14.

Mr. Aria is a signatory on the bank accounts for Global Financial Support, Inc. d/b/a Student Financial Resource Center and for Global Financial Support, Inc. d/b/a College Financial Advisory.

15.

Mr. Aria has primary access to mailbox #144 at the PostalAnnex+ store located at 3268 Governor Drive, San Diego, CA 92122, the address listed for Global Financial Support, Inc.

16.

Mr. Aria is the point of contact for Global Financial Support, Inc.’s business relationships with the mailing services that print, fold, and stamp letters sent to consumers.

17.

Mr. Aria is the point of contact for Global Financial Support, Inc.’s business relationships with a phone answering service that accepts calls from consumers on behalf of College Financial Advisory and/or Student Financial Resource Center. 18.

During the relevant period, acting alone or in concert with others, Mr. Aria has formulated, directed, controlled, or participated in the acts and practices of Global Financial Support, Inc., including the acts and practices set forth in this Complaint. 19.

Mr. Aria is a “related person” pursuant to the CFPA because he is the director and/or officer of Global Financial Support, Inc., and materially participates in the affairs of Global Financial Support, Inc. 12 U.S.C. § 5481(25) (C). 20.

Mr. Aria is deemed a “covered person” pursuant to the CFPA because he is a “related person.” 12 U.S.C. § 5481(25) (B).

21.

During the relevant period, Mr. Aria transacts or has transacted business in the Southern District of California.

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BACKGROUND A. Defendants’ Business

22.

During the relevant period, Defendants, under the names College Financial Advisory and Student Financial Resource Center, have run a deceptive scheme to persuade high school seniors, enrolled college students, and their families to pay Defendants a fee to participate in a student financial aid “program.” As part of this program, Defendants promise to match students with targeted financial aid opportunities and apply for financial aid for students.

23.

Through the use of an official-looking seal, artificial filing deadlines, references to students’ universities, a “Student Aid Profile Form,” and a strategically worded letter, Defendants exploit consumers’ unfamiliarity, anxiety, and confusion about the Free Application for Federal Student Aid (“FAFSA”) and the student financial aid process generally.

B. FAFSA and Student Financial Aid 24.

The FAFSA is a universal loan application form provided by the Office of Federal Student Aid at the United States Department of Education. For no charge, students and their families may apply for financial aid by filling out the FAFSA and returning it to the Office of Federal Student Aid. 25.

Students who are entering college or already enrolled in college are encouraged by their universities to fill out the FAFSA and participate, to the extent possible, in these financial aid programs. Many schools require students to fill out a FAFSA to apply for the schools’ own financial aid programs. 26.

Students and their families eagerly anticipate the opportunity to apply for student aid through the FAFSA, but are often uninformed, anxious, and confused about the financial aid application process.

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C. Defendants’ Letters 27.

During the relevant period, Defendants have sent letters from College Financial Advisory and/or Student Financial Resource Center to graduating high school seniors, enrolled college students, and their families, offering a “program” through which Defendants will target, individually match, and apply for student financial aid on behalf of students and their families.

28.

Defendants identify these consumers by purchasing lists of student information from online vendors. These vendors sell information, such as a student’s name, mailing address, year in school, and school name. 29.

Defendants have sent millions of letters to consumers nationwide since January 2011.

30.

Defendants’ letters and accompanying envelopes feature a seal and watermark that employ iconic images found predominantly on seals and watermarks used by government agencies. College Financial Advisory’s round seal and watermark include a torch, flying eagles, a graduation cap, and olive branches. See Attachment A. Similarly, Student Financial Resource Center’s round seal and watermark include an eagle, a Greek column, a book, and leaves. See Attachment B and C. 31.

At the top of each letter, Defendants prominently display a bold print box that includes a “filing deadline,” and a “filing status.” The “filing deadline” varies depending on when the Defendants send the letters to consumers. The “filing status” always reads “pending.”

32.

On each letter, in large bold print in a box at the center of the page, Defendants prominently display a 9-digit “student profile” number and the name of the student’s university in a manner that gives the impression that this letter is endorsed or sanctioned by the student’s university. If the student is a senior in high school, the “College Attending” section typically states, “Open-all colleges.” Case 3:15-cv-02440-GPC-WVG Document 1 Filed 10/29/15 Page 6 of 15

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33.

The letters then instruct students or their families to fill out and return an application – called a “Student Aid Profile Form” – along with the “refundable processing fee” to proceed with the student aid “program” and “apply for the maximum merit and need-based financial aid programs.” The “Student Aid Profile Form” looks visually similar to the FAFSA and uses similar terms. 34.

The fee has varied from $59 to $78, depending on the year. 35.

On the Student Aid Profile Form, Defendants promise to “review” and “assess” borrowers’ applications and “strive to provide as many targeted financial aid opportunities as possible to each and every student, regardless of his/her financial status or academic performance.”

36.

The Student Aid Profile Form demands private, personal information from students, including date of birth, ethnicity, and even their parents’ employers and addresses, purportedly for use by Defendants to assist them in qualifying students for student financial aid programs. Defendants provide instructions on how to fill out the form, including a specific instruction to sign and date the form. 37.

Defendants’ letters warn that the “College Financial Advisory Processing Center Department must receive all completed Student Aid Profile Forms no later than [the filing deadline]” and that “late Student Aid Profile Forms will be accepted for students with special circumstances.”

38.

Sometimes Defendants’ solicitations state that late applications will incur a 20% processing fee.

39.

Defendants state that “the entire processing fee will be returned within ten (10) business days to all students who do not qualify or do not receive financial aid funding.”

40.

Defendants’ letters represent that consumers will lose their opportunity to obtain student financial aid unless they submit the Student Aid Profile Form and pay the fee to Defendants by a specified date.

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41.

Based on the representations and promises made in these letters, consumers send in the Student Aid Profile Form and associated fee to enroll in Defendants’ program. 42.

Defendants do not provide a clear and conspicuous notice that accurately reflects its privacy policies and practices to consumers. D. The Website, Phone Number, and Business Expenses 43.

Along with the letters, Defendants’ scheme utilizes two websites – www.collegefinadv.org and www.studentctr.org – with .ORG as its generic top-level domain.

44.

.ORG domains are commonly known to indicate that the organization associated with the web address is a non-profit, NGO, charitable organization, or interest group and not a for-profit organization.

45.

The main pages of these two websites display virtually no content, but prompt consumers to input a “Student Profile Number” in order to enter the site and view content. Without entering a Student Profile Number, consumers cannot access the information on the website. This number is on the letters mailed to students and their families.

46.

Defendants’ website urges students and their families to enroll in the student aid program, promising that Student Financial Resource Center “saves students valuable time by conducting precise general research to match student's qualifications and background to available free merit and need-based financial aid programs.” 47.

Although consumers are instructed that they must input their individual 9digit number in order to access the content on the website, there is no individualized content on the website. Some random 9-digit numbers such as 999-999-999 unlock the content hidden behind the main page, displaying the same information that a specific code would yield. The website provides instructions for downloading and filling out the Student Aid Profile Form.

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48.

Defendants do not maintain a business phone number. Defendants claim consumers can use a toll-free phone number to reach the “College Financial Advisory Student Aid Information Center.” Consumers’ calls to this number, as well as to the phone number provided for the Student Financial Resource Center, are not directed to Defendants. Rather, consumers’ calls are directed to a third-party answering service where an unaffiliated person answers the call, disclaims any association with the Defendants, and purportedly forwards any message along to the Defendants. 49.

Defendants’ claim to have a physical business location at 3268 Governor Drive in San Diego, referred to in Defendants’ mailers as the “Processing Center Department.” However, this address is a mailbox at a PostalAnnex+ store near Defendant Aria’s home, which Defendant Aria uses to collect consumer payments. 50.

Defendants’ other purported location, 777 Campus Commons Road in Sacramento, is a virtual office that forwards mail to the P.O. Box at 3268 Governor Drive.

E. Defendants’ Unlawful Practices

51.

Defendants do not provide the services offered in their letters and on their website.

52.

Defendants’ “program” is not a program at all. Defendants do not “process” or “assess” student applications and they do not “target” and “apply” for student financial aid on behalf of consumers.

53.

Defendants do not “conduct [] extensive searches.” 54.

Defendants do not “match each student’s qualifications and background” to student financial aid opportunities.

55.

Defendants do not “provide as many targeted financial aid opportunities as possible to each and every student.”

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56.

Defendants do not “apply for the maximum merit and need-based financial aid programs” for students.

57.

Defendants do not fulfill their promise that “the entire processing fee will be returned within ten (10) business days to all students who do not qualify or do not receive financial aid funding.”

58.

Many consumers receive absolutely nothing in exchange for sending in their Student Aid Profile Form and fee.

59.

Defendants promise consumers financial aid advice that is individualized or targeted, but actually send nothing or merely a generic booklet that is not tailored to the consumers’ circumstances.

60.

Defendants’ “program” deadline does not correspond to any real deadline associated with any particular financial aid opportunity. The “filing deadline” prominently displayed on Defendants’ letters is an arbitrary date that serves only to give the letters an artificial sense of urgency.

61.

The overall appearance and wording of the envelope, letter, and form the Defendants send to consumers give consumers the net impression that Defendants are affiliated with the federal government, including the United States Department of Education, or a college or university.

62.

Defendants have obtained at least $4.7 million in fees from at least 76,000 consumers during the Relevant Period.

APPLICABLE LAW

63.

The Bureau is charged with enforcement of federal consumer financial laws, including the Consumer Financial Protection Act (“CFPA”).

64.

Section 1036(a)(1)(B) of the CFPA prohibits covered persons from committing deceptive acts or practices. 12 U.S.C. §5536(a)(1)(B). Case 3:15-cv-02440-GPC-WVG Document 1 Filed 10/29/15 Page 10 of 15

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65.

Regulation P is a federal consumer financial law pursuant to 12 U.S.C. §§ 5481(14).

66.

Regulation P requires “a covered person” to provide consumers with whom the covered person has “customer relationships” with a clear and conspicuous initial privacy notice upon commencement of a customer relationship. 12 C.F.R. §1016.4(a). 67.

Regulation P defines a “customer relationship” as a “continuing relationship” between a consumer and company that provides one or more “financial products or services” to the consumer that are to be used primarily for personal, family, or household purposes. 12 C.F.R. 1016.3(j)(1). 68.

Section 1016.3(j) of Regulation P defines a “continuing relationship” as one in which the consumer “obtains financial, investment, or economic advisory services . . . for a fee.” 12 C.F.R. §1016.3(j)(3)(i)(G).

VIOLATIONS OF THE CFPA

COUNTS I – IV: DEFENDANTS USED DECEPTIVE STATEMENTS TO INDUCE CONSUMERS INTO PAYING A FEE FOR FINANCIAL SERVICES IT DID NOT PROVIDE IN VIOLATION OF THE CONSUMER FINANCIAL PROTECTION ACT.

69.

Plaintiff re-alleges Paragraphs 1 – 85 and incorporates them herein by reference.

70.

In numerous instances, in connection with the offering, marketing, sale, or provision of financial advisory services, Defendants represent, directly or indirectly, expressly or by implication:

71.

Count One: That in exchange for sending Defendants an application and paying Defendants a fee, consumers are applying for student financial aid or Defendants will apply to student financial aid programs on consumers’ behalf;

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72.

In truth and in fact, by sending Defendants an application and paying Defendants a fee, consumers are not applying for student financial aid and Defendants do not apply for student financial aid programs on consumers’ behalf.

73.

Count Two: That Defendants will conduct extensive searches to target or match consumers with particular student financial aid opportunities;

74.

In truth and in fact, Defendants do not conduct extensive searches to target or match consumers with particular student financial aid opportunities.

75.

Count Three: That unless consumers send Defendants an application and pay Defendants a fee by a specified deadline, consumers will lose their opportunity to receive student financial aid; 76.

In truth and in fact, if consumers do not send Defendants an application and pay Defendants a fee by the specified deadline, they will not lose their opportunity to receive student financial aid because the deadline Defendants provide does not correspond to any real deadline associated with any particular financial aid opportunity. 77.

Count Four: That Defendants are affiliated with the federal government, including the United States Department of Education, or a college or university;

78.

In truth and in fact, Defendants are not, and never have been, affiliated with federal government, including the United States Department of Education, or a college or university. 79.

Defendants’ acts or practices in Counts One through Four are likely to mislead consumers acting reasonably under the circumstances. Case 3:15-cv-02440-GPC-WVG Document 1 Filed 10/29/15 Page 12 of 15

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80.

Defendants’ representations as set forth in the Counts One through Four constitute deceptive acts or practices in violation of Sections 1031(a) and 1036(a)(1)(B) of the CFPA, 12 U.S.C §§ 5531(a) and 5536(a)(1)(B). COUNT FIVE: DEFENDANTS FAILED TO PROVIDE A REQUIRED NOTICE IN VIOLATION OF REGULATION P

81.

Plaintiff re-alleges Paragraphs 1-85 and incorporates them herein by reference.

82.

Defendants are covered persons subject to the jurisdiction of the Bureau. 12 U.S.C. §§5481(6)(A) & (15)(A)(viii).

83.

Defendants establish customer relationships because they establish a continuing relationship between a consumer and company and provide financial products or services to consumers primarily used for personal, family or household purposes. 12 C.F.R. §1016.3(j)(1).

84.

Defendants establish a continuing relationship with consumers when they accept a fee for “financial, investment, or economic advisory services.” 12 C.F.R. §1016.4(c)(3)(i)(C).

85.

In numerous instances, in connection with the offering, marketing, sale, or provision of financial advisory services, Defendants failed to provide customers with a clear and conspicuous initial privacy notice upon commencement of a customer relationship required by Regulation P, 12 C.F.R. §1016.4(a). 86.

A violation of Regulation P violates Section 1036 of the CFPA because Section 1036 of the CFPA renders unlawful any act or omission in violation of a Federal consumer financial law, 12 U.S.C § 5536(a)(1), and Regulation P is a Federal consumer financial law. 12 U.S.C. §5481(14).

87.

Therefore, Defendants’ acts or practices described in Count Five violate the CFPA.

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CONSUMER INJURY

88. Consumers have suffered and will continue to suffer substantial injury as a result of Defendants’ violations of the CFPA and Regulation P. In addition, Defendants have been unjustly enriched as a result of their unlawful acts or practices. Absent injunctive relief by this Court, Defendants are likely to continue to injure consumers, reap unjust enrichment, and harm the public.

THIS COURT’S POWER TO GRANT RELIEF

89. The CFPA empowers this Court to grant appropriate legal or equitable relief with respect to violations of Federal consumer financial law, including, without limitation, permanent or temporary injunction, rescission or reformation of contracts, the refund of moneys paid, restitution, disgorgement or compensation for unjust enrichment, and civil money penalties. 12 U.S.C. § 5565(a)(2). PRAYER FOR RELIEF 90.

Wherefore, the Bureau requests that the Court: a. Permanently enjoin Defendants from committing future violations of the CFPA, 12 U.S.C. §§5531, 5536, and Regulation P, 12 C.F.R. §1016.4(a); b. Award Plaintiff such injunctive and ancillary relief as may be necessary to enjoin Defendants from harming consumers through the advertisement, marketing, promotion, offering for sale or selling of any consumer financial product or service, including, but not limited to, any student financial aid assistance program;

c. Award such relief as the Court finds necessary to redress injury to consumers resulting from Defendants’ violations of the CFPA and Regulation P, including, but not limited to, rescission or reformation of contracts, the refund of moneys paid, restitution, disgorgement or Case 3:15-cv-02440-GPC-WVG Document 1 Filed 10/29/15 Page 14 of 15

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compensation for unjust enrichment, and payment of damages or other monetary relief;

e. Award Plaintiff civil money penalties; and f. Award Plaintiff the costs of bringing this action, as well as such other and additional relief the Court determines to be just and proper.

Dated: October 29, 2015

Respectfully submitted,

ANTHONY ALEXIS

Enforcement Director

CARA PETERSEN

Deputy Enforcement Director

for Litigation

_/s/ Nina Schichor__________________

NINA H. SCHICHOR, MD Barred

(Maryland does not use Bar Numbers) (E-mail: [email protected])

(Phone: 202-435-9770)

LAURA SCHNEIDER, NY Bar # 2715449

(E-mail: [email protected])

(Phone: 202-435-7311) 1700 G Street NW Washington, DC 20552

Fax: (202) 435-7722

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FINANCIAL ADVISORY • C III a I I '" I II III' L II I l eg c I I n a J \ " r g • I - X X X - 4 - 1\ I' I Y N () W 1.11 •• 11 ••• 11 •••• 1 •• 11 •• 1 •••• 111.1 •••• 1.1 •• 1.1.1.1.1.1 ••• 1 •• 11 STUDENT PROFILE NUMBER1:

132-014981 COLLEGE ATTENDING2:

NORTHERN MICHIGAN UNIVERSITY FILING STA TUS 3 :

PENDING It is time to apply for all available 2011-2012 financial aid programs to help pay for your college education expenses. Students who did not qualify for federal student aid (Pell Grants, FSEOG, or Work-Study) or need additional financial aid assistance should submit applications to other existing financial aid programs. Students can receive federal, state, local, national merit, and need-based financial aid assistance regardless of their aC2demic performance or family's income level. These funds are not student loans, and they do not have to be repaid. The money can be used to pay for tuition, room and board, fees, books, computers, and transportation. Submit the enclosed Student Aid Profile Form (SAPF) to pLFroceed with the 2011-2012 College Financial Advisory (CFA) student aid program and apply for the maximum merit and need-based financial aid programs. The College Financial Advisory Processing Center Department (CFA-PCO) must receive all completed Student Aid Profile Forms no later than April 30. 2011. Fill out the form, enclose the refundable processing fee, and mail both in the pre-addressed envelope. The entire processing fee will be returned within ten (10) business days to all students who do not qualify or do not receive financial aid funding . Parents can also complete and sign the enclosed form with accurate student information. Late Student Aid Profile Forms will be accepted for students with special circumstances; however, not all financial aid funds will be available. Prepare to apply early because most financial aid programs have strict deadlines and limited funding. For more information, contact the College Financial Advisory Student Aid Information Center (CFA-SAIC) at 1-888- 4-APLY-NOW (1-888-427-5966). You can also visit our website at www.collegefinadv.org or email us at [email protected] with any questions.

Sincerely, Cindy Warwick College Financial Advisory Director 2011-2012 Academic Year FinanCial Aid Programs CW/fa I [rllcnmlnumbcr assigned by College Firullldal Ad,"iso,)' (nol aSSN) 2 This Progmm is sponsored by College Financial Ad\"iso~' organization 3 College Financial Ad\"isol)" s inicmallliing status· ror mOTe information sec reverse side CFA-LTR: FN-AD-Illhl SPN: 132-01 4981 College Attending 2: NORTHERN MIcmGAN UNIVERSITY Case 3:15-cv-02440-GPC-WVG Document 1-3 Filed 10/29/15 Page 1 of 2

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COLLEGE FINANCIAL ADVISORY™ INSTRUCTIONS:

Student Aid Profile Form 2011 - 2012 School Year 1.

Please type or print clearly. Fill out both sides of the student aid profile form. 2.

Mark an "X" in the box that best describes you for each section. 3.

Note the CFA processing deadline date. 4.

Return this form with your refundable CF A processing fee of fifty-nine dollars in the enclosed envelope. Make checks payable to College Financial Advisory. If the return envelope is misplaced, use a regular '---- '---- - - --- - - - ----' envelope and mail to: College Financial Advisory, Attention: Processing Center, 3268 Governor Drive, Suite 144, San Diego, California 92122. 5.

Make sure to sign and date the student aid profile form. SECTION I:

PERSONAL INFORMATION - - - - - 1. Last Name 2. First Name 3. MI 4. Permanent Mailing Address: Number and Street (Include Apt. Number) 5. City 8. Student Profile Number (Located on the CF A Letter) or leave blank 11. E_Mail Address or leave blank 12. What Is Your State Of Legal Residence? 9. Date of Birth (MMlDDNVYY) 13. Marital Status as of Today? D Single 6. State 7. Zip Code 10. Area Code Telephone Number D Married 14. Sex: D Male D Female SECTION II:

EDUCATIONAL INFORMATION 1. School Currently Attending:

2. Expected Enrollment Status:

D Full Time D Part Time D Transfer 3. Educational Goals, Highest Degree You Are Considering: 4. Grade Point Average (4.0 = A) D Associate D Bachelors D Masters D Ph. D.

High School College 5. Type of College You Are Attending or Planning To Attend? 6. Majors or Careers You Are Considering: D Two-Year College 1.

D Four-Year College 2.

D TradelTechnical School 3.

SECTION III:

BACKGROUND INFORMATION 1. How Do You Describe Your EthniclRacial Background? D African American D Pacific Islander D Asian, Vietnamese or Indochinese D White, Caucasian COPYRIGHT © 2011-2012, COLLEGE FINANCIAL ADVISORY (CFA) ALL RIGHTS RESERVED PAGE 1 D Hispanic D Native American D Other (Specify) _ ___ _ ___ _ _ _ ~ For Help - www.collegefinadv.org Case 3:15-cv-02440-GPC-WVG Document 1-3 Filed 10/29/15 Page 2 of 2

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STUDENT FINANCIAL RESOURCE CENTER'· www.studentctr.org • email:[email protected] • 1·888·730·APPLY PARENTS OF 1'11'111111111"'111'1111111111'1111'111111"11"1'1,11,1111111"

It is time for students to apply for the 2014-2015 financial aid programs to help them pay for their college education. Students who did not qualify to receive federal student aid (Pell Grants, FSEOG, or Work-Study) or students who need additional financial aid funding should apply to other existing free financial aid programs. Students can receive federal, non-federal, state, local, national merit, and need-based financial aid assistance regardless of their academic performance or family's income level. Students can use the money they receive to pay for tuition, room and board, fees, books, computers and transportation. Submit the enclosed Student Aid Profile Form (SAPF) to proceed with the 2014-2015 Student Financial Resource Center (SFRC) program and apply for the maximum merit and need-based financial aid programs. The funds from these financial aid programs are not student loans and do not have to be repaid later. The SFRC Processing Division (SFRC-PD) must receive all completed Student Aid Profile Forms no later than May 31. 2014. Fill out the SFRC form, enclose the refundable processing fee, and mail both in the pre-addressed envelope. The entire processing fee will be returned to all students who do not qualify or do not receive financial aid money.

Parents can also fill out and sign the enclosed SFRC form with accurate student information. Late SFRC forms will be accepted for students with special circumstances; however, not all financial aid funds will be available. Apply early because most financial aid programs have strict deadlines with limited funding. Do not borrow money until you have applied to all of the free federal and non-federal financial aid programs available to you.

For more information, contact the SFRC nationwide message call center at 1-888-730-APPLY (1-888-730- 2775). Students can also visit our website at www.studentctr.org or email us at [email protected] with any questions.

Student Financial Resource Center SFRC - Processing Division 2014-2015 Academic Year Financial Aid Programs Enclosure (1) - Student Aid Profile Form (SAPF) cwlta 1 [nlem.1 numbcro,"'rod br Studeni Pironei.1 RcsouClOeCcn(cr(nol. SSN)' 1 Thi, Pmgram is "jXln.ol<d by SlU(lclIl Pjnallcial RCSQlltc Ccnlcr organizalion' l S(\ldcnI Fiooncial RCSOllml Ctnltl's intern;,i filing ,tat", • ror more ,urorm,lion ,eo ... or", silk: SPN: 230·027664 Case 3:15-cv-02440-GPC-WVG Document 1-4 Filed 10/29/15 Page 1 of 4

Page 20

Case 3:15-cv-02440- GPC- WVG_ Document 1-4 Filed 10/29/15 Page : of 4:

"4s ¥

R ES GQ U RCE C E N T E R™

The cost of education continues to rise annually, and middle-income families often find themselves caught between “a rock and a hard place.” Such families are not wealthy enough 1o cover all of the costs on their own, but do uot have low enough incomes to quality for need-based aid. Fortunately, there is more diverse financial aid available today:than ever before, to help offset these rising costs, You can receive financial aid even if you are not a straight- iN Student era top athlete. In fact, most, students and parents are unaware of the vast numbet of civic, private and state grants, merit’ ‘scholarships,’ and fellowships that are available each year, Financial aid is accessible to millions of American families. Yet, too many students are under the impression-that they cannot receive financial aid that does nol require repayment, so tacy do aot bother applying at all. Remember, financial aid is the key to paying for your college education, and understanding the entire college financial aid process is vital. Do not borrow money to pay for your college education until you have fully exhausted all of the free money opportunilics first. Borrowing moncy should be your last alternative. The more you know about the college preparation and financial aid process, the morc financial aid money

you will receive. Financial aid typically goes to those who know the most about the financial aid system, so it is important to understand all of your financial aid options when it comes to paying for college.

CONTACT INFORMATION

Call the SERC's nationwide toll-free phone number at 1-888-730-2775 between 9:00 A.M. - 4:00 P.M. EST, Monday through Friday. All initial nationwide toll-free phone calls are transferred to a local SFRC’s live operator message vall center. Provide your contact information, along with the Student Profile Number (SPN) listecdon your SFRC ‘letter, and an‘ approptiate“SFRC representative will call you back promptly. You imay also visit our website at www, studentctr.org or email us at [email protected].

INSTRUCTIONS TO FILL OUT THE ENCLOSED STUDENT AID PROFILE FORM (SAPP)

1, Print clearly in CAPITAL letters and skip a box between words. 4. Lf the return envelope is misplaced, use a repular envelope and mail to: Student Financial Resource Center (SFRC). Attention:

; . ‘ . Processing Center Division, 3268 Governor Drive Suite 144, San 3. The refundable SFRC processing fee of sixty-five dollars must be enclosed. Diego. CA 92122.

All Student Aid Profile Forms (SAPF) without payment will automatically be rejected. Make checks payable to: Student Financial Resource Center (SFRC).

2, Matk an “X” in the box that best describes you for each section.

Nate the Student Financial Resource Center (SFRC) filing deadline date.

6, Make sure to sign and date the Student Aid Profile Form(SAPF).

SECTION £: PERSONAL INFORMATION SECTION IIL; BACKGROUND INFORMATION

Last Name - Write in your last name

t 1, Ethnic/Racial Background — Select the appropriate box 2. First Name - Write in your first name

H H | 2. Clubs - Write up to 4 club memberships, organization

. . . + ue ! :

3. MI- Write in your middle initial i favalyement or leave blank . . . eq: ' . 4 7 H 1 ata 4. Permanent Mailing Address - Write in your mailing : 3. Sports - Write up to 3 sports in which you have the address interest and ability to participate on an intercollegiate 5, City - Write in your city level 6 State - Write in your state | 4. Hobbies — Write up to 3 hobbies. talents, or special 7 * skills

7%. Zip Code - Write in your zip code %. = Student Profile Number - Write in your Student Profile Number (located on the SFRC letter} or leave blank

5. Military — Lf you served in the military, select the appropriate branch or the N/A box

9. Date of Birth - Write in your birthday in 6. Work Experience — Write up to 4 volunteer or employment MM/DD/YY YY format experiences / 10. Area Code & Telephone Number ~ Write in your area ’ i code and telephone number SECTION IV: PARENTS INFORMATLON i Li, B-mail Address - Write in your e-mail address 1/12. What is Your State of Legal Residence? - Write in your 1. Father’s Occupation — Write in your father’s occupation : state of legal residence or mark Unknown 13. Marital Status as of Today? - Mark your marital status 2. Name of Employer ~ Write in the name of your father’s as of today employer 14. Sex - Mark your sex (male or female) 3. Mother’s Occupation ~ Wrile in your mother’s occupation

or mark Unknown

SECTION Ik: EDUCATIONAL INFORMATION 4. Name of Employer - Write in the name of your mother’s employer

5. Military - If your parcnts served in the military, select the appropriate branch or select the N/A box

t. School Currently Attending -- Write in the name of the school you are currently attending. If you are planning

to change your school. write in the school name that | 6. Highest education level your father completed — Select Middle you will be attending. school, High school, College, or Unknown 2, Expected Enrollment Status — Select Full-time, Part- 7, Highest education level your mother completed — Select Middle time or Transfer school, High school, College, or Unknown { 3, Educational Goals, Highest Degree You Are erie SocSe meena cara a ama ae - Select Associate, Bachelors, Masters, Ph.D., or M.D.

FOOTNOTES

4, Grade Point Average (4.0 = A) — Write in your most recent semester grade point average. You do not have to write in your high school GPA

5, Type of College You Are Attending or Planning to

' This is an internal nine-digit number created and assigned by the j Student Financial Resource Center organization (this is not a social | ! security number). j > Student Financial Resource Center has directly sent this letter fo students ;

Attend? — Select Two-year (community college). Four and it is not affiliated with any educational institutions or year college (universities), or Trade/Technical School government agencics. i 6. Majors or Careers You Are Censidering — Write up to ? Student Financial Resource Center’s internal filing status code. The initial | :

three majors or careers and default filing status code is “Pending”. {

Page 21

STUDENT FINANCIAL RESOURCE CENTER~ INSTRUCTIONS, Student Aid Profile Form (SAPF) 2014 -2015Academic School Year 1. Print clearly in CAPITAL letters and skip a box between words. 2. Mark an "X" in the -box that best describes you for each section;, 3. The refundable SFRC processing fee of sixty-five dollars must be enclosed. All Student Aid Profile Forms without payment will automaticapy be rejected. Make checks payabie to: Student Financial Resource Center (SFRC). 4. If the return envelope is misplaced, use a regular envelope and mail to: Student Financial Resource Center (SFB,C), Attention: Processing Center Division, 3268 Governor Drive Suite 144, San Diego, CA 92122. 5. Note the Student Financial Rc"soutce Cente-r (SFRC) filing deadline date. 6. Make sure to sign and date the Student Aid PrQJile FOf!TI(SAPF). SECTION I:

PERSONAL INFORMATION 4. Permanent Mailing Address: Numbund Street (Include Apt. Number) 11. E-Mail Address or leave blank 3.MI 12. What Is Your State Of Le:gal Rcsidem"?1 13. Marital Status as of Today? 0 Single o Married 14. Sex: 0 Male 0 Female SBCTION II:

EDUCATIONAL INFORMATION 1. School Currently Attending:

2. Expected Enrollment Status:

o Full Time o Part Time o Transfer 3. Educational Goals, Highest Degree You Are Considering: 4. Grade Point A'Yrage (4.0 = A) o Associate o Bacheiors o Masters o Ph.D.

o M.D.

High School College 5. Type of College You Are Attending or Planning To Attend? 6. Majors 0.' Careers You Are Considering: o Two· Year College 1.

o Four-Year College 2.

o Trade/Technical School 3.

SECTION Ill:

BAC[(GROUND INFORMATION 1. How Do You Describe Your Ethnic/Racial Background? o African American o Asian, Viebtamese or bldochinese o Hispanic o Native American o Pacific Islander o White, Caucasian COPYRIGI;lT ©2014·2015, STUDENT FINANCIAL RESOURCE CENTER (SFRC) ALL RIGHTS RESERVED o Other (Specify) PAGE 1 For Help· www.studenlclr.org Case 3:15-cv-02440-GPC-WVG Document 1-4 Filed 10/29/15 Page 3 of 4

Page 22

--------- SECTION Ill:

BACKGROUND INFORMATION (('(!/Ifill"ed) 2. CLUBS: List club memberships or involvement in any organization or affiliations. Include school, civic, community service, fraternal and religious organizations. 3. SPORTS: List sport(s) in which you have the interest and ability to patticipate 4. HOBBIES: List your hobbies, talents, or special skills. on an intercollegiate level.

5. If you have served in the military, check the appropriate branch: D Air Force o Army o Coast Guard o Marines o Navy DN/A 6. WORK EXPERIENCE: List volunteer or employment experience. SEC110N IV:

PARENT'S INFORMA 110N 1. Father's Occupation:

o Unknown 2. Name of Employer:

o Unknown 3. Mother's Occupation:

o Unknown 4. Name of Employer:

o Unknown 5. TfyoUT parents served in the military, check the appropriate branch: o Air Force o Army o Coast Guard DMarines o Navy o Unknown 6, Highest Education Level Your Father Completed: 7, Highest Education Level Your Mother Completed: o Middle School o High School o College D Unknown o Middle School o High School o College o Unknown SECTION V:

REFUNDABLE SFRC PROCES~WN(i FEE $65 I at,· no m;ssmg I", - $78 The refundable SFRC processing fee of sixtYRfive dollars must be enclosed. All Student Aid Profile Forms (SAPF) without payment will automatically be rejected and a 20% service charge will be appended to the processing fee. Make checks payable to: Student Financial Resource Center (SFRC). D Personal Check D Cashier Check 0 Money Order SECTION VI:

CI!.IlTlFICA11ON OF THE STUDENT FINANCIAL IIESOUf{CE CENTER (SFRC) PROGf{AM I certify that all of the information on this form is true and complete to the best of my knowledge, SFRC will strive to provide as many targeted financial aid. opportunities as possible to each and every student, regardless of his/her financial status or academic performance, These financial aid funds are not loans and they do not have to be repaid, however, SFRC is unable to guarantee results and has no input into the decision to which applicants will be selected to receive financial aid funds and it is not affiliated with any educational institutions, government agencies or funding sources, Most foundations and organizations have a ~imited amount of funding each year and in the event that funding is not received, the applicant can apply for a full refund within ninety days of receiving the financilll aid package. A full refund of the SFRC processing fee will be issued within ten working days. ' x Preparer's Signature [ Student or Parent 1 DO NOT WRITE BELOW THIS LINE COPYRIGHT © 2014·2015, STUDENT FINANCIAL RESOURCE CENTER (SFRC) ALL RIGHTS RESERVED PAGE 2 MONTH [[] DAY [[] YEAR [[] For Help" www.sludenlclr.org (! Case 3:15-cv-02440-GPC-WVG Document 1-4 Filed 10/29/15 Page 4 of 4

Page 23

STUDENT FINANCIAL RESOURCE CENTER'· ""lfI'w .ll llden.e • • . orl • em.,1 ;nrO@lll1dfll'Clr.Of~ • 1 ·888_7)O·A P PlY ! :

P""tEN'fS OF , I II H2/ 0 ,U 2'2 II is lime for students to apply for the 2015-2016 financial aid programs to help them pay for their college education. Students who did not qualify to receive federal student aid (Pelf Grants, FSEOG, or Work-Study) or students who need additional financial aid funding should apply to other existing free financial aid programs. Students can receive federal, non-federal, state, local, national merit, and need-based financial aid assistance regardless of their academic performance or family's income level. Students can use the money they receive to pay for tuition, room and board, fees, books, computers and transportation. Submit the enclosed Student Aid Profile Form (SAPF) to proceed with the 2015-2016 Student Financial Resource Center (SFRC) program and apply for the maximum merit and need-based financial aid programs. The funds from these financial aid programs are not student loans and do not have to be repaid later. The SFRC Processing Division (SFRC.PO) musl receive all completed Student Aid Profile Forms no later than April 30, 2Q15, Fill oul the SFRC fonn, enclose the refundable processing fee, and mail both in the pre-addressed envelope. The entire processing fee will be retumed to all students who do not qualify or do not receive financial aid money.

For more information, oontact the SFRC nationwide message call center at 1-888-730-APPLY (1-888-730-2775). Students can also visit our website at www.studentctr.org or email us at [email protected] with any questions, Student Financial Resource Centw SFRC - Processing Division 2015-2016 Academic Year Financial Aid Programs Enclosure (1)· Srudenl Aid Profile Fonn (SAPF) CWlfa • __ ...... .,. _ __ C-.... 'IS>.1· ' n-;._5_", __ _ C __ ' ' ....... ~ ....... __ "'*' .• _ ..,._ .... ____ _ JA.<"" Na S~N IU.1O .... l..,..

Case 3:15-cv-02440-GPC-WVG Document 1-5 Filed 10/29/15 Page 1 of 3

Page 24

Case 3:15-cv-02440-GPC-WVG Document1-5 Filed 10/29/15 Page 2 of 3

The Student Financial SFRC} an iudepandest inizetion devoted te widéots apply for and re ie beat |

available free me AVE ne io. SIR ts « nsive searches to mitch students qualification if yard to | key fedcral, stute. locu!, acd private financial aid p haf ore th merit and need-based. SFRC provides students wit! | | comoréebensive SFR inancial vi i . il of tt asics of (inat of in vs. Ba cal

and clear puideiines for appiymic to SPRC speci slected Land nece-based Tip i aid pr 1 é sh

thal a large number af shudents rol apply fer 2 ree erie eed 1 financial i ims availal) VCR 1

increase students’ chances ing free merit and ) ald pro fi iti Chit take Vaoge oui é i

Himes Ving services or you c it i¥ \ iy to i a} rou tt t me nie : i

iwwailable to you. Do NOT ' welt yh bls shousted all af tt tree t

opportunities that are oul there. Goo pCR, Md Dest wis Ww your surcesstul

ORM

Call the SPRC’s nationwide toll-free planes phidy or 1-BRS-790-2775 between 9:00 A.M 00 PM. EST, Monday through Friday, AU initia nwid toll-free phone calls are transferred to | «al SERC's live opemior m ge } irowide 5 i rit lon o Stud Number (SPN) liswad an your SPRL i i) west ve \ ity a nt ? : wt

udentcir.« if cial) Be al 1A ' tr.cre

NCKAGE , rE INFORMA

INSTRUCTIONS TO FILL OUT THE ENCLOSED STUDENT AID PROFILE FORM (SAPF)

SECTION Il; BACKGROUND INFORMATION

i it Ve i ‘ ) | MI Wr i" i nad nitval t ' i

e il ‘ t |

é State c 7

tet IV: PARENTS INFORMATION

1 arch Lode i i= c I | i) iid cima: t y 3 i iipabon | H ink 4? Whoi is Your State of Leeal Residences Wile = 14 Sex- Mark your sex finale or femnle) ters supAhig WTS EN YOU TCS COT = 1 1 eniwy mao? om tie in ih m ur mothe’ s SECTION IL: EDUCATIONAL INFORMATION cmpileye bs] vii ltt I 4 ur pore 3 d in the 1 , stele the | | School Cuwrrenliy Attending — Write ip the name of the ippropriate bramch or scieot ihe N/A bo |

school you are cwrrenily att If you sre planning |

ta change your school, w ia the school oaine that you will be attending FOOTNOTES

“4 Expected Enroilmeni Stats — Select Full-time, Ps rartsitt 4 a | = : * ‘ ing-gigit number ereited jit he |

3. Educational Goals, Highest Deyree You Are ering enguree Center organi cial | Select Associate, Bachciers, Masters, PRD... or M.D

4 Grade Fo crepe (4.0 = A) — Write in pourri ecrmestier rote

tial Resource Contes has directhy sent this leger to saklenis

chao] GPA

point averspe, You da not have te write Im yur | i) Type of College You Are Atiending or Tlanning to

itis not.atfiliated with any eoucalional matiiutions or | t Two-year (community college), Fou

t Rovernimnent agencies | |

| year collewe (universitics), or Trade/Techaical Scheol | ° Snurhert Finencial Peeurce Centers emul Ming status code. The initial 6, Majors or Carsers You Are Conside ng— Witet a3 nm yY Careers | iclouli Gling Lue « mehr

Page 25

Case 3:15-cv-02440-GPC-WVG Documenti-5 Filed 10/29

STUDENT FINANCIAL RESOURCE CENTERi

Z| SFRC - 2015-2016 Financial Aid Programs

777 Campus Commons Ra., #200, Sacramento, CA 95825 www.studentctr.org « [email protected] « &88-730-2775

| Student Financial Aid Profile Form Enclosed

O1Clothing -OCredit Card Ol Entertainment

a * Ei SR E 4 ) :

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: OTHERT FOR

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: For added secutity, your mame and

JHIS-20 16 4cedemic School Year

Amended complaint (Aug. 2021)

PDF of this document (25 pages)

Page 26

-1-

JOHN C. WELLS, DC Bar 491292 Deputy Enforcement Director JAMES T. SUGARMAN, WSBA 39107 Assistant Litigation DeputyNINA H. SCHICHOR, MD Bar (no assigned number) (E-mail: [email protected]) (Phone: 202-435-9770) AMANDA C. ROBERSON, MN Bar 0398511 (E-mail: [email protected]) (Phone: 202-435-9447) 1700 G Street NW Washington, DC 20552 Fax: (202) 435-7722

Attorneys for Plaintiff Consumer Financial Protection Bureau

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

Consumer Financial Protection Bureau,

Plaintiff,

Global Financial Support, Inc., d/b/a Student Financial Resource Center, d/b/a College Financial Advisory; and

Armond Aria a/k/a Armond Amir Aria, individually, and as owner and CEO of Global Financial Support, Inc.;

Defendants.

Case No. '15CV2440 GPC AHG

FIRST AMENDED COMPLAINT FOR PERMANENT INJUNCTION AND OTHER RELIEF

The Consumer Financial Protection Bureau (the “Bureau”) alleges the following against Global Financial Support, Inc. d/b/a Student Financial Resource Center and Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12248 Page 1 of 25

Page 27

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College Financial Advisory (“Global Financial Support, Inc.”) and Armond Aria or Armond Amir Aria (“Armond Aria”) (together, “Defendants”): INTRODUCTION 1.

JURISDICTION AND VENUE 3.

Venue is proper in this District under 28 U.S.C. §§ 1391(b) and (c) and 12 U.S.C. § 5564(f).

PARTIES Plaintiff 5.

Plaintiff, the Consumer Financial Protection Bureau, is an independent agency of the United States charged with regulating the offering and provision of consumer financial products and services under federal consumer financial laws. 12 U.S.C. § 5491(a). The Bureau has independent litigating authority, 12 U.S.C. §§ 5564(a) and (b), and is charged with enforcement of federal consumer financial laws including the Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12249 Page 2 of 25

Page 28

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Consumer Financial Protection Act (“CFPA”). 12 U.S.C. §5511. The CFPA prohibits any covered person from engaging in unfair, deceptive, or abusive acts or practices. 12 U.S.C. §§ 5531 and 5536.

Defendants Global Financial Support, Inc.

Defendant Global Financial Support, Inc. is a California corporation. Global Financial Support, Inc. conducts business as College Financial Advisory and Student Financial Resource Center.

During the relevant period, Global Financial Support, Inc. transacts or has transacted business in the Southern District of California. Armond Aria 10.

Defendant Armond Aria is the owner and registered agent of Global Financial Support, Inc., the President of College Financial Advisory, and the CEO of Student Financial Resource Center.

11.

Mr. Aria founded Global Financial Support, Inc. in or around February 2005.

12.

In March 2005, Mr. Aria created and registered the fictitious business name College Financial Advisory.

Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12250 Page 3 of 25

Page 29

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13.

In September 2011, Mr. Aria created and registered the fictitious business name Student Financial Resource Center.

14.

Mr. Aria is a signatory on the bank accounts for Global Financial Support, Inc. d/b/a Student Financial Resource Center and for Global Financial Support, Inc. d/b/a College Financial Advisory.

15.

Mr. Aria has primary access to mailbox #144 at the PostalAnnex+ store located at 3268 Governor Drive, San Diego, CA 92122, the address listed for Global Financial Support, Inc.

16.

Mr. Aria is the point of contact for Global Financial Support, Inc.’s business relationships with the mailing services that print, fold, and stamp letters sent to consumers.

17.

Mr. Aria is deemed a “covered person” pursuant to the CFPA because he is a “related person.” 12 U.S.C. § 5481(25) (B).

21.

During the relevant period, Mr. Aria transacts or has transacted business in the Southern District of California.

Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12251 Page 4 of 25

Page 30

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BACKGROUND A. Defendants’ Business

22.

23.

B. FAFSA and Student Financial Aid 24.

25.

Students and their families eagerly anticipate the opportunity to apply for student aid through the FAFSA, but are often uninformed, anxious, and confused about the financial aid application process.

Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12252 Page 5 of 25

Page 31

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C. Defendants’ Letters 27.

28.

Defendants have sent millions of letters to consumers nationwide since January 2011.

30.

32.

Page 32

-7-

33.

The fee has varied from $59 to $78, depending on the year. 35.

36.

38.

Sometimes Defendants’ solicitations state that late applications will incur a 20% processing fee.

39.

Defendants state that “the entire processing fee will be returned within ten (10) business days to all students who do not qualify or do not receive financial aid funding.”

40.

Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12254 Page 7 of 25

Page 33

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41.

Based on the representations and promises made in these letters, consumers send in the Student Aid Profile Form and associated fee to enroll in Defendants’ program. 42.

Defendants do not provide a clear and conspicuous notice that accurately reflects its privacy policies and practices to consumers. D. The Website, Phone Number, and Business Expenses 43.

Along with the letters, Defendants’ scheme utilizes two websites – www.collegefinadv.org and www.studentctr.org – with .ORG as its generic top-level domain.

44.

.ORG domains are commonly known to indicate that the organization associated with the web address is a non-profit, NGO, charitable organization, or interest group and not a for-profit organization.

45.

46.

Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12255 Page 8 of 25

Page 34

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48.

Defendants’ other purported location, 777 Campus Commons Road in Sacramento, is a virtual office that forwards mail to the P.O. Box at 3268 Governor Drive.

E. Defendants’ Unlawful Practices

51.

Defendants do not provide the services offered in their letters and on their website.

52.

53.

Defendants do not “conduct [] extensive searches.” 54.

Defendants do not “match each student’s qualifications and background” to student financial aid opportunities.

55.

Defendants do not “provide as many targeted financial aid opportunities as possible to each and every student.”

Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12256 Page 9 of 25

Page 35

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56.

Defendants do not “apply for the maximum merit and need-based financial aid programs” for students.

57.

Defendants do not fulfill their promise that “the entire processing fee will be returned within ten (10) business days to all students who do not qualify or do not receive financial aid funding.”

58.

Many consumers receive absolutely nothing in exchange for sending in their Student Aid Profile Form and fee.

59.

Defendants promise consumers financial aid advice that is individualized or targeted, but actually send nothing or merely a generic booklet that is not tailored to the consumers’ circumstances.

60.

61.

62.

Defendants have obtained at least $4.7 million in fees from at least 76,000 consumers during the Relevant Period.

APPLICABLE LAW

63.

The Bureau is charged with enforcement of federal consumer financial laws, including the Consumer Financial Protection Act (“CFPA”).

64.

Section 1036(a)(1)(B) of the CFPA prohibits covered persons from committing deceptive acts or practices. 12 U.S.C. §5536(a)(1)(B). Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12257 Page 10 of

Page 36

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65.

Regulation P is a federal consumer financial law pursuant to 12 U.S.C. §§ 5481(14).

66.

VIOLATIONS OF THE CFPA

COUNTS I – IV: DEFENDANTS USED DECEPTIVE STATEMENTS TO INDUCE CONSUMERS INTO PAYING A FEE FOR FINANCIAL SERVICES IT DID NOT PROVIDE IN VIOLATION OF THE CONSUMER FINANCIAL PROTECTION ACT.

69.

Plaintiff re-alleges Paragraphs 1 – 85 and incorporates them herein by reference.

70.

In numerous instances, in connection with the offering, marketing, sale, or provision of financial advisory services, Defendants represent, directly or indirectly, expressly or by implication:

71.

Count One (Asserted Against Both Defendants): That in exchange for sending Defendants an application and paying Defendants a fee, consumers are applying for student financial aid or Defendants will apply to student financial aid programs on consumers’ behalf; Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12258 Page 11 of

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72.

73.

Count Two (Asserted Against Both Defendants): That Defendants will conduct extensive searches to target or match consumers with particular student financial aid opportunities; 74.

In truth and in fact, Defendants do not conduct extensive searches to target or match consumers with particular student financial aid opportunities.

75.

Count Three (Asserted Against Both Defendants): That unless consumers send Defendants an application and pay Defendants a fee by a specified deadline, consumers will lose their opportunity to receive student financial aid;

76.

77.

Count Four (Asserted Against Defendant Global Financial Support, Inc.): That Defendants are affiliated with the federal government, including the United States Department of Education, or a college or university;

78.

In truth and in fact, Defendants are not, and never have been, affiliated with the federal government, including the United States Department of Education, or a college or university. Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12259 Page 12 of

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79.

Defendants’ acts or practices in Counts One through Four are likely to mislead consumers acting reasonably under the circumstances. 80.

81.

Plaintiff re-alleges Paragraphs 1-85 and incorporates them herein by reference.

82.

Defendant Global Financial Support, Inc. is a covered person subject to the jurisdiction of the Bureau. 12 U.S.C. §§5481(6)(A) & (15)(A)(viii). 83.

Defendant Global Financial Support, Inc. establishes customer relationships because it establishes a continuing relationship between a consumer and company and provides financial products or services to consumers primarily used for personal, family or household purposes. 12 C.F.R. §1016.3(j)(1). 84.

Defendant Global Financial Support, Inc. establishes a continuing relationship with consumers when it accepts a fee for “financial, investment, or economic advisory services.” 12 C.F.R. §1016.4(c)(3)(i)(C). 85.

In numerous instances, in connection with the offering, marketing, sale, or provision of financial advisory services, Defendant Global Financial Support, Inc. failed to provide customers with a clear and conspicuous initial privacy notice upon commencement of a customer relationship required by Regulation P, 12 C.F.R. §1016.4(a).

86.

A violation of Regulation P violates Section 1036 of the CFPA because Section 1036 of the CFPA renders unlawful any act or omission in violation of a Federal Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12260 Page 13 of

Page 39

-14-

consumer financial law, 12 U.S.C § 5536(a)(1), and Regulation P is a Federal consumer financial law. 12 U.S.C. §5481(14).

87.

Therefore, Defendant Global Financial Support, Inc.’s acts or practices described in Count Five violate the CFPA.

CONSUMER INJURY

88. Consumers have suffered and will continue to suffer substantial injury as a result of Defendants’ violations of the CFPA and Defendant Global Financial Support, Inc.’s violation of Regulation P. In addition, Defendants have been unjustly enriched as a result of their unlawful acts or practices. Absent injunctive relief by this Court, Defendants are likely to continue to injure consumers, reap unjust enrichment, and harm the public.

THIS COURT’S POWER TO GRANT RELIEF

Wherefore, the Bureau requests that the Court:

a. Permanently enjoin Defendants from committing future violations of the CFPA, 12 U.S.C. §§5531, 5536, and permanently enjoin Defendant Global Financial Support, Inc. from committing future violations of Regulation P, 12 C.F.R. §1016.4(a);

b. Award Plaintiff such injunctive and ancillary relief as may be necessary to enjoin Defendants from harming consumers through the advertisement, Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12261 Page 14 of

Page 40

-15-

marketing, promotion, offering for sale or selling of any consumer financial product or service, including, but not limited to, any student financial aid assistance program;

c. Award such relief as the Court finds necessary to redress injury to consumers resulting from Defendants’ violations of the CFPA and Defendant Global Financial Support, Inc.’s violation of Regulation P, including, but not limited to, rescission or reformation of contracts, the refund of moneys paid, restitution, disgorgement or compensation for unjust enrichment, and payment of damages or other monetary relief; e. Award Plaintiff civil money penalties; and f. Award Plaintiff the costs of bringing this action, as well as such other and additional relief the Court determines to be just and proper.

Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12262 Page 15 of

Page 41

-16-

Dated: February 16, 2021

Respectfully submitted,

John C. Wells

Deputy Enforcement Director

James T. Sugarman

Assistant Litigation Deputy

/s Nina H. Schichor

NINA H. SCHICHOR, MD Barred

(Maryland does not use Bar Numbers) (E-mail: [email protected])

(Phone: 202-435-9770)

Amanda C. Roberson, MN Bar # 0398511

(E-mail: [email protected])

(Phone: 202-435-9447)

Enforcement Attorneys

Consumer Financial Protection Bureau 1700 G Street NW Washington, DC 20552

Fax: (202) 435-7722

Case 3:15-cv-02440-GPC-AHG Document 122-4 Filed 02/16/21 PageID.12263 Page 16 of

Page 42

Case Sa 4ACeGBRSAbIGPEMMO> Oasitrfied OP Kelby ZeRD TEAGREH oF AUC 17 of i, SQCOLLEGE FINANCIAL ADVISORY

vlleg finadv org ¢ emailrinfoteoltlegefinad sry SKK-4-APLY-NOW

con | FOR Cee

DA eQ * | Ss \

F _ Filing Deadline: April 30, 2011 LM DDennVDeccbecDDedsceslEDatsccsnaloctebabelletecstecll STUDENT PROFILE NUMBER": 132-014981 ee COLLEGE ATTENDING?: NORTHERN MICHIGAN UNIVERSITY FILING STATUS®: PENDING

It is time to apply for all available 2011-2012 financial aid programs to help pay for your college education expenses. Students who did not qualify for federal student aid (Pell Grants, FSEOG, or Work-Study) or need additional financial aid assistance should submit applications to other existing financial aid programs.

Students can receive federal, state, local, national merit, and need-based financial aid assistance regardless of their academic performance or family’s income level. These funds are not student loans, and they do not have to be repaid. The money can be used to pay for tuition, room and board, fees, books, computers, and transportation.

Submit the enclosed Student Aid Profile Form (SAPF) to pLFroceed with the 2011-2012 College Financial Advisory (CFA) student aid program and apply for the maximum merit and need-based financial aid programs.

The College Financial Advisory Processing Center Department (CFA-PCD) must receive all completed Student Aid Profile Forms no later than April 30, 2011. Fill out the form, enclose the refundable processing fee, and mail both in the pre-addressed envelope. The entire processing fee will be returned within ten (10) business days to all students who do not qualify or do not receive financial aid funding.

Parents can also complete and sign the enclosed form with accurate student information. Late Student Aid Profile Forms will be accepted for students with special circumstances; however, not all financial aid funds will be available. Prepare to apply early because most financial aid programs have strict deadlines and limited funding.

For more information, contact the College Financial Advisory Student Aid Information Center (CFA-SAIC) at 1-888- 4-APLY-NOW (1-888-427-5966). You can also visit our website at www.collegefinadv.org or email us at [email protected] with any questions.

Sincerely,

Cindy Warwick College Financial Advisory Director

2011-2012 Academic Year Financial Aid Programs CWifa

© Internal number a assigned by College Financial Advisory (not a SSN) 2 This Program is sponsored by College Financial Advisory organization 3 College Financial Advisory's internal filing status - for more information sce reverse side CFA-LTR: FN-AD-11 12.1 SPN: 132-014981

College Attending 7: NORTHERN MICHIGAN UNIVERSITY

Page 43

Case 3:18 aa CAS 0 BB S4A01G POamume bdedrterit tes OP {hel 2p / Aeane | DP b886> ofPage 18 of

NCTz.

COLLEGE FINANCIAL ADVISORY“ LEIA * RIMES Student Aid Profile Form Sey 2011 - 2012 School Year 7

INSTRUCTIONS:

1. Please type or print clearly. Fill out both sides of the student aid profile form.

2. Mark an “X” in the box that best describes you for each section. ee 3. Note the CFA processing deadline date. = “—— =

4. Return this form with your refundable CFA processing fee of fifty-nine dollars in the enclosed envelope. = |

Make checks payable to College Financial Advisory. If the return envelope is misplaced, use a regular envelope and mail to: College Financial Advisory, Attention: Processing Center, 3268 Governor Drive, Suite 144, San Diego, California 92122.

5. Make sure to sign and date the student aid profile form.

SECTION I: PERSONAL INFORMATION

1. Last Name 2. First Name 3. MI

Titi titi ttt tte tte tet tet tt tte te te tt tt tt

4. Permanent Mailing Address: Number and Street (Include Apt. Number)

oe OO eG GD GG

5. City 6. State J 7. Zip Code

oe a Oe OO GO GG

8. Student Profile Number(Located on the CFA | 9 Date of Birth (MM/DD/YYYY) 10. Area Code Telephone Number Letter) or leave blank

Pi t=—-t ttt | et it | ivi tt CL if p ttt tet | ft

11. E-Mail Address or leave blank

Pit ttt ttt | eet tet te ett te ete te ee EE EE ET

12, What Is Your State Of Legal Residence? | 13. Marital Status as of Today? L] Single [| Married 14. Sex: L] Male O Female

SECTION II: EDUCATIONAL INFORMATION 1. School Currently Attending: 2. Expected Enrollment Status: [_] Full Time {_] Part Time (_] Transfer

3. Educational Goals, Highest Degree You Are Considering: 4, Grade Point Average (4.0 = A)

LJ Associate C] Bachelors [| Masters C] Ph. D. High School College 5. Type of College You Are Attending or Planning To Attend? 6. Majors or Careers You Are Considering:

[_] Two-Year College 1.

[_] Four-Year College 2.

[_] Trade/Technical School 3,

SECTION III: BACKGROUND INFORMATION

1. How Do You Describe Your Ethnic/Racial Background? [ | African American [J Asian, Vietnamese or Indochinese L] Hispanic | Native American

(_] Pacific Islander [_] White, Caucasian [_] Other (Specify)

Page 44

EE OR PARENTS OF

TOT eo eT oY cob be be

Student Profite Number:

Students can receive federal, non-federal, state, local, national merit, and need-based financial aid assistance regardless of their academic performance or family's income level. Students can use the money they receive to pay for tuition, room and board, fees, books, computers and transportation.

Submit the enclosed Student Aid Profile Form (SAPF) to proceed with the 2014-2015 Student Financial Resource Center (SFRC) program and apply for the maximum merit and need-based financial aid programs. The funds from these financial aid programs are not student loans and do not have to be repaid later.

The SFRC Processing Division (SFRC-PD) must receive all completed Student Aid Profile Forms no later than May 31, 2014. Fill out the SFRC form, enclose the refundable processing fee, and mail Doth in the pre-addressed envelope. The entire processing fee will be returned to all students who do not qualify or do not receive financial aid money.

Parents can also fill out and sign the enclosed SFRC form with accurate student information, Late SFRC forms will be accepted for students with special circumstances; however, not all financial aid funds will be available. Apply early because most financial aid programs have strict deadlines with limited funding. Do not borrow money until you have applied to all of the free federal and non-federal financial aid programs available to you.

Student Financial Resource Center

SFRC — Processing Division

2014-2015 Academic Year Financial Aid Programs Enclosure (1) - Student Aid Profile Form (SAPF} cw/ta

[aicrnal rumber assigned by Siudvat Finaneiz! Resoucce Cenéer{nota SSM)« * This Progracn is sponsored by Stucen! Pinaecial Resomree Conse ization> * Studew Financial Re: Center's interttaé Jking statms » foe mee iofocmalion sve reverse side ad SPN: 230.027664

College Mtendlingt MMG

Page 45

hay det nea!

Case 3: eae 2S. RBELADIGPONMVOETDEzArHertled ors nes Orga oftege 20 of

The cost of education continues to rise annually, and middle-income famities often find themselves caught between “a rock and a hard place.” Such families are not wealthy enough io cover all of the costs on their own, but do not have low enough incomes ta qualify for need-based aid. Fortunately; there is more diverse financial: aid available lodayrthan ever before, to help offset these tising costs. You can receive financial aid even if you are not a straight- ‘A Studgnt ora top athlete, In fact, most students and. Parents are unaware of the vast number of civic, private ‘and state grants, merit’ ‘scholarships, ‘and fellowships that are available each year. Financial aid is accessible to millions of American famili¢s. Yet, too many students are under the impression that they cannot reecive financial aid that does nol require repayment, so taey do aot bother applying at all, Remember, financial aid is the | key to paying for your college education, and understanding the entire college financial aid process is vital, Do not borrow moncy te pay for your college education until you have fully exhausted all of the free money opportunilies first. Borrowing moncy should | be your last alternative. The more you know about the coilege preparation and finansial aid process, the isore financia! aid money

you will receive. Financtal aid typically goes to those who know the most about the financial aid system, so it is important to | understand all of your financiai aid options when it comes to paying for college.

INFORMATION

Call fhe SFRC'S nation wide toll-free phone number at 1-888-730-2775 between 9:00 A.M. - 4:00 P.M. EST, Monday through Friday. Ail initia! nationwide toll-free phone calls are irmusferred. to a local SFRC’s live operator message vail center Provide your contact information, along with the Student Profile Number (SPN) listedon your SFRC ‘letter, Aud: an ‘appropiiate’SFRC representative will cail you back promptly. You may also visit our website at www. sludentetr.org or email us at [email protected].

[INSTRUCTIONS TO FILL OUT THE ENCLOSED STUDENT AID PROFILE FORM (SAPF)

1, Print clearly in CAPITAL lettecs and skip a box between words. 4. Jf the seturn envelope is misplaced, use a repular envelope and

4 oye: aw ehy rt ocrritaas wey fie warts eeatis mail to; Shident Financial Resource Center (SFRC). Attention: 2, Mat on “X" in the box that bon describes you for each section. Processing Center Division, 3268 Governor Drive Suite 144. San |

3. The refundable SFRC pracessing fee of sixty-five dollars must be enelosed. Diego. CA 92122, AU Student Aid Profile Forms (SAPF) without payment will automatically be rejected. Make checks payable to: Student Financial Resource Center (SFRC).

Nate the Student Finaacial Resource Center PRE) hline deadline date, 6. Muke sure to sign and date the Studeat Aid Profile Form(SAPF). |

SECTION ft: PERSONAL INFORMATION SECTION ill: BACKGROUND INFORMATION

Last Name - Write in yeur lasi name

First Name - Write in your first name

MI - Write in your middle initial

Permanent Mailing Address - Write in your mailing address

5. City - Write in your city 6. Stale - Write in your state ?, Zip Code - Write in your zip code

1, Ethnic/Racial Background — Select the appropriate box

2. Clubs - Write up to 4 club memberships, organization snyalvement or leave bank

ee hoe

3. Sports - Write up to 3 sports in which you have the interest and ability to participate on an intercollegiate level

4. Hobbies — Write up te 3 hobbics. talents, or special skijls

| %. Student Profile Number - Write in your Student Profile 3. heaaie ie yen served te the Taititary, select the appropriate Number (located on the SFRC letter) ar icave blank . — . 9 Date of Birth - Write in your birthday in 6. Work Experience — Write up to 4 volunteer or employment { MM/DD/YYYY format experiences ; 10, Area Cacle & Telephone Number - Write in your area , ; ; corte and telephone number SECTION IV: PARENTS INFORMATION Li, E-mail Address ~ Write in your c-mail address 12. What is Your State of Legal Residence? - Write in your 1. Father's Occupation — Wrile in your father’s occupation : state of legal residence or mark Unknown 13, Marital Status as of Today? ~ Mark your marital stats 2, Name of Employer - Write in the name of your father's as of today employer 14. Sex - Mark your sex (male or female) 3. Mother's Oceupation ~- Wrile in your mother’s occupation

or mark Unknown

ORMATION 4. Name of Employer — Write in the name of your mother's employer

5. Military - Tf your parents served in the military, select the appropriate braneh or select the N/A box

SECTION II: ED

}. School Currently Attending -- Write in the name of the schoo] you are currently attending. If you are planning hog : : : to change your school, write in the school name that ; : 6. Highest education level your father completed — Select Middle

school, High schoo), College, or Unknown

you will be attending.

Expected Enrollment Status — Select Full-time, Part-

: Highest education level your mother completed — Select Middle lime or Transfer

school, High school, College, or Unknown i

iii acy

3. Educational Goals, Highest Degree You Are Considering -- Select Associate, Bachelors, Masters, Ph.D., or M.D. 4. Grade Point Average (4.0 = A) — Write in your most recent semester grade paint average. You Jo vot have to write in yo igh school GPA y ut high school G security number), 5. Type of College You Are Attending or Planning to é Student Financial Resource Center has directly sent this letter to students ; Attend? — Seteet Two-year (community college}, Four- f and it is not affiliated with any educational institutions or | year college (universities). or Trade/Technical School : government agencies. i 6. Majors or Careers You Are Considering — Write up ta three majors or careers

' This is an internal nine-digit mamber created and assigned by the | Student Financial Resource Center organization (this is net a social

“

Student Financial Resourve Center's internal filing stawus code. The initial } and detault filing status code is “Pending”. H

Page 46

Case 3: Lease OR4SCLRBRAAIGPOANOSDszErferiled OP i Kel 2p / Aeags |DPb8863 ofPage 21 of

STUDENT FINANCIAL RESOURCE CENTER’

Student Aid Profile Form (SAPF) 2014-2015 Academic School Year

INSTRUCTIONS:

‘1, Print clearly in CAPITAL letters and skip a box between words. 2. Mark an “X” in the box that best describes you for each section.

3. The refundable SFRC processing fee of sixty-five dollars must be enclosed. All Student. Aid Profile Forms without payment will automatically be rejected. Make checks payable to: Student Financial Resource Center (SFRC).

POR OPFICE USE ONLY GHOSTS I4I5-3 90

4. If the return envelope is misplaced, use a regular envelope and mail to: Student Financial Resource Center (SFRC), Attention: Processing Center Division, ° 3268 Governor Drive Suite 144, San Diego, CA 92122.

5. Note the Student Financial Resource Center (SFRC) filing deadline date. 6. Make sure to sign and date the Student Aid Profile Form(SAPF).

SECTIONT: PERSONAL INFORMATION

1. Last Name 2. First Name 3, MI

4. Permanent Mailing Address; Numbend Street (Include Apt. Number)

5. City 6. State; 7. Zip Code

8. Student Profile NumbefLocated on the SFRC 9. Date of Birth (MM/DD/YYYY) 10. Area Code Telephone Number Letter) or leave blank

Hate

11, E-Mail Address or leave blank

12. What Is Your State Of Legal Residence? 13. Marital Status asf Today? [_] Single [[] Married | 14.Sex: [_] Male [] Female

SECTION I: EDUCATIONAL INFORMATION 1. School Currently Attending: 2. Expected Enrollment Status: |_| Full Time [_| Part Time [_] Transfer

3, Educational Goals, Highest Degree You Are Considering: 4, Grade Point Avrage (4.0 = A)

[| Associate {_|Bachelors (_| Masters (_] Pup. L_] MD. High School College a 5. Type of College You Are Attending or Planning To Attend? 6. Majors or Careers You Are Considering:

[_] Two-Year College 1,

CJ Four-Year Coilege 2.

[_] Trade/Technical School 3.

SECTION TH: BACKGROUND INFORMATION

1, How Do You Describe Your Ethnic/Racial Background? [_] Aftican American |__| Asian, Vietnamese or Indochinese (_] Hispenic _] Native American [_} Pacific Islander [_] White, Caucasian [_.] Other (Specify) COPYRIGHT © 2014-2015, STUDENT FINANCIAL RESOURCE CENTER (SFRC) PAGE 4 For Help - www.studentctr. org

Page 47

Case 3:18 Be B4SO EB S4401G POagwaenbécdnertt ited OP i fel 2p / Fens |DPb8269 ofPage 22 of

SECTION I:

BACKGROUND INFORMATION (continued)

2, CLUBS: List club memberships or involvement in any organization or affiliations. Include school, civic, community service, fraternal and religious organizations.

3, SPORTS: List sport(s) in which you have the interest and ability to participate | 4. HOBBIES: List your hobbies, talents, or special skills.

on an intercollegiate level,

5. If you have served in the military, check the appropriate branch: [| AirForce [_} Acmy — [__] Coast Guard [-] Marines [| Navy [| N/A

6. WORK EXPERIENCE: List yoluntecr or employment experience.

SECTION IV: PARENTS INFORMATION — 1, Father’s Occupation: {_] Unknown | 2. Name of Employer: [_] Unknown 3, Mother’s Occupation: [_] Unknown | 4. Name of Employer: [_] Unknown 5. If your parents served in the military, check the appropriate branch: [_] Air Force [“]Army [/]Coast Guard [_|Marines [_] Navy _] Unknown 6. Highest Education Level Your Father Completed: 7, Highest Education Level Your Mother Completed:

[_] Middle School — [_] High School [_] College (| Unknown ["] Middle Schoo! — [[] High School L_] College _] Unknown

REFUNDABLE SFRC PROCESSING FEE $65

Late ar missing: fee - $78

SECTION V:

The rofimdable SFRC processing fee of sixty-five dollars must be enclosed, All Student Aid Profile Forms (SAPF} without payment will automatically be rejected and a 20% service charge will be appended to the processing fee, Make checks payable to: Student Financial Resource Center (SFRC),

[] Personal Check CL Cashier Check |_] Money Order

SECTION Vi; CERTIFICATION OF THE STUDENT FINANCIAL RESOURCE CENTER (SFRC) PROGRAM

I certify that all of the information on this form is true and complete to the best of my knowledge. SFRC will strive to provide as many targeted financial aid opportunitios as possible to each and every student, regardless of his/her financial status or academic performance, These financial aid funds are not Joans and they do not have to be repaid, however, SFRC is unable to guarantee results and has no input into the decision to which applicants will be selected to receive financial aid funds and it is not affiliated with any educational institutions, government agencies or funding sources, Most foundations and organizations have a limited amount of funding each year and in the event that funding is not received, the applicant can apply for a full refund within ninety days of receiving the financial aid package, A full refund of the SFRC processing fee will be issued within ten working days.

Xx MONTH DAY YEAR

Preparer’s Signature { Student or Parent ]

DO NOT WRITE BELOW THIS LINE

ADMINISTRATIVE USE ONLY

FILE No.

= F9051415-300-

Page 48

Case 3: 1B BAST EH LAbIGpOaqwcenbbedrterkt es OP {KAI Ao /AeanS DP RSE 7D ofPage 23 of

AY STUDENT FINANCIAL RESOURCE CENTER’ ——_—_——_——_$_$_—_—__—___ SS __—_

www.studentctr.org * [email protected] 1-8 88-7 APPLY

Fi ing Status

Pending April 30, 2015

JASMINE SANJURJO, OR PARENTS OF

472 10114212

884-034029 OPEN - ALL COLLEGES

It is time for students to apply for the 2015-2016 financial aid programs to help them pay for their college education. Students who did not qualify to receive federal student aid (Pell Grants, FSEOG, or Work-Study) or students who need additional financial aid funding should apply to other existing free financial aid programs.

Students can receive federal, non-federal, state, local, national merit, and need-based financial aid assistance regardless of their academic performance or family’s income level. Students can use the money they receive to pay for tuition, room and board, fees, books, computers and transportation.

Submit the enclosed Student Aid Profile Form (SAPF) to proceed with the 2015-2016 Student Financial

Resource Center (SFRC) program and apply for the maximum merit and need-based financial aid programs. The funds from these financial aid programs are not student loans and do not have to be repaid later.

The SFRC Processing Division (SFRC-PD) must receive all completed Student Aid Profile Forms no later than April 30, 2015. Fill out the SFRC form, enclose the refundable processing fee, and mail both in the pre-addressed envelope. The entire processing fee will be returned to all students who do not qualify or do not receive financial aid money.

For more information, contact the SFRC nationwide message call center at 1-888-730-APPLY (1-888-730-2775). Students can also visit our website at www.studentctr.org or email us at [email protected] with any questions.

Student Financial Resource Center

SFRC — Processing Division

2015-2016 Academic Year Financial Aid Programs Enclosure (1) - Student Aid Profile Form (SAPF) CW/fa

"Imernal sumber assigned by Student Financial Resource Center (nota SSN)* "This Mogren issponsored by Student Financial Resource Center organization * * Suident Financial Resource Center's internal filing stagus * for more information sce everne sidke JASMINE SANJURJO 884-034029

Page 49

Case 3:16 eQP 440 GBR44b16 P@aqwcenbbedrtertt ites OP {hel tb aeage | UP b32 74 ofRage 24 of

The Student Financial Resource Centr sFRC) sn independent rant ton ¢ oted to helping udéots apply for and receive the best | available free me md nced-based finuncial sid. SFRC condicts usive scarches to match studerit ualification it background io |

comprebensive SFR cancint vi sok i xplain hi of vt asics of finan f { iuabl ys, De cal

and clear guideline ir applyime to SF RC specifically selected free mortt end necd-based [ip ime props 5 1 sve sive

that # large number of students do not apply for all of the free merit and needeb i finane programs availab !

increase students’ chances of obtsinin ce merit and neod-based Financia) aid | n ti cu oul i

imesaving services or you can siniply invest y own time to find and apply to the numerous fie ian bom rans e coad ailable to you. Do NOT berrow ’ far your college education until you h wils chousted all of t free me

opportunities that are out the Go , mud it wi ww your success

ORM

AC KAGE BAR LE V-E ROY INFOR

INSTRUCTIONS TO FILL OUT THE ENCLOSED STUDENT ALD PROFILE FORM (SAPF)

SECTION It: PERSONAL INFORMATION SECTION Ill: BACKGROUND INFORMATION

é State ti ' n Cod j i Stucent Profile Num Vrite in ' j Number (he tr tl > etter) «© ’ 9 dale c tl iver j t t SECTION EV: PARENTS INFORMATION | 10 ‘ Lode ‘ a] t | ! tina: wu ; ’ ; ron +42 Whai ts Your $ > of Les Kosidence Vrite . . : of fagal ence le pInes {3 Murital Sr sof Texts Mig wir ' s e of tod ; 14 Se Mark your se finale or female) thers C ho wer your m0 ' CEUPAle ' ken mao ’ mici i n nother's SECTION Il: EDUCATIONAL INFORMATION eal 5 Military If you rthe mi stic sc | | School Currentiy Aitendine — Write ip he som the moronriate bran é A be } school you are cvrrenily aticidiug. If you gre planning

te change your schoo}, write iv the school same that you will be atiendme FOOTNOTES Select Fu ‘ stare cf t |

2 Expected Enroitmeni Stat a, Part (sior ru iis 15 | aine-cigit number created mic 3 me | 3 Educational Goals, H Are i ing - J i | Spratt net : ’ " den s! Resource Center organization | » social | Select Associate, Bs s, Maste ht Dp govurity rasmber) 4 Grade Fomt Average (4.0 = A) — Write in yours nt semester piace } point average, You do not have te write in yuur high school GPA udent Financial Rex ‘cater has dh ty sent this leGer to suxenis 7 “Co}| , x na ind itis not affiiieted with any educational mstitutions or | > ypeo oilege rou Are Atientdin yPianaing to o / pees 5 ne ¢ : government agencie | Atiend? Select Two-ycar (community college), fo year collewe (universitics), or Trade/Technical School | * Shudent Finencial Resource Center’s intemal Ming satigs code. The initial | i ri 6 Majors or Caz vou Are fering — ¥ 23 ma Careers | tcfaulé fling nus ie “Pendhins |

Page 50

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2075-2016 Academic School Year

Judgment (Aug. 2021)

PDF of this document (17 pages)

Page 51

15-cv-2440-GPC-AHG

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA

CONSUMER FINANCIAL PROTECTION BUREAU, Plaintiff, v.

GLOBAL FINANCIAL SUPPORT, INC., d/b/a STUDENT FINANCIAL RESOURCE CENTER, d/b/a COLLEGE FINANCIAL ADVISORY; and ARMOND ARIA, a/k/a ARMOND AMIR ARIA, individually, and as owner and CEO of Global Financial Support, Inc., Defendants.

Case No.: 15-cv-2440-GPC-AHG

AMENDED FINAL JUDGMENT AND ORDER INTRODUCTION

Plaintiff, the Consumer Financial Protection Bureau (“Bureau”) commenced this civil action on October 29, 2015 under the Consumer Financial Protection Act of 2010 (“CFPA”), 12 U.S.C. §§ 5531, 5536(a)(1), 5564, and 5565, and Regulation P, 12 C.F.R. § 1016.4(a), against Defendants Armond Aria (“Aria”) and Global Financial Support, Inc. (“Global”), by filing a Complaint for permanent injunctive relief, restitution, civil Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12339 Page 1 of 17

Page 52

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penalties, and other relief for Defendants’ acts or practices in violation of the CFPA and Regulation P in connection with Financial Advisory Services, specifically student financial aid.

On August 21, 2020, the Bureau filed a Motion for Partial Summary Judgment pursuant to Rule 56(c) of the Federal Rules of Civil Procedure against Defendant Aria on Counts I, II, and III which all arise under the CFPA, (ECF No. 106,) and filed a Motion for Default Judgment pursuant to Rule 55(b) of the Federal Rules of Civil Procedure against Defendant Global on Counts I, II, III, and IV which arise under the CFPA, and Count V which arises under Regulation P, (ECF No. 107.) On January 25, 2021, this Court granted in part Plaintiff’s Motion for Partial Summary Judgment against Defendant Aria on Counts I, II, and III and granted Plaintiff’s Motion for Default Judgment against Defendant Global on Counts I through V (“January 25, 2021 Order”), (ECF No. 120.) The Court held Defendants jointly and severally liable for restitution in the amount of $4,738,028 and a civil money penalty in the amount of $10 million, and directed the Bureau to submit a proposed order so that the Court may issue an injunction of an appropriate scope against the Defendants. Subsequently, the Clerk of Court entered a Default Judgment that reflected the restitution and civil money penalties against Defendants. (ECF No. 121.)

On March 26, 2021, the Court granted Plaintiff’s Motion to Modify Scheduling Order and Amend Complaint, dropping Counts IV and V against Defendant Aria. (ECF No. 131.) Upon the First Amended Complaint deemed filed and pursuant to the Court’s January 25, 2021 Order, including all findings therein, and resolving all claims in this matter, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED as follows: / / / Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12340 Page 2 of 17

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DEFINITIONS

For the purposes of this Order, the following definitions shall apply: 1.

“Affected Consumers” includes any consumer who paid a fee to Defendants for Financial Advisory Services between January 1, 2011 and the Effective Date.

“Assets” means any legal or equitable interest in, right to, or claim to any real, personal, or intellectual property owned or controlled by, or held, in whole or in part for the benefit of, or subject to access by, any Defendant, wherever located, whether in the United States or abroad. This includes, but is not limited to, chattel, goods, instruments, equipment, fixtures, general intangibles, effects, leaseholds, contracts, mail or other deliveries, shares of stock, commodities, futures, inventory, checks, notes, accounts, credits, receivables (as those terms are defined in the Uniform Commercial Code), funds, cash, and trusts, including, but not limited to any trust held for the benefit of any Defendant.

“Assisting Others” includes, but is not limited to: a.

Consulting in any form whatsoever;

Providing paralegal or administrative support services; c.

Performing customer service functions including, but not limited to, receiving or responding to consumer complaints; d.

Formulating or providing, or arranging for the formulation or provision of, any advertising or marketing material, including, but not limited to, any telephone sales script, direct mail solicitation, or the text of any Internet website, email, or other electronic communication; e.

Formulating or providing, or arranging for the formulation or provision of, any marketing support material or service, including but not limited to, web or Internet Protocol addresses or domain name Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12341 Page 3 of 17

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registration for any Internet websites, affiliate marketing services, or media placement services;

Providing names of, or assisting in the generation of, potential customers;

Performing marketing, billing, or payment services of any kind; or h.

Acting or serving as an owner, officer, director, manager, or principal of any entity.

“Consumer Financial Product or Service” is synonymous in meaning and equal in scope to the definition of the term in Section 1002(5) of the CFPA, 12 U.S.C. § 5481(5), and, subject to applicable restrictions contained in the CFPA, includes but is not limited to: providing Financial Advisory Services to consumers on individual consumer financial matters or relating to proprietary financial products or services, including providing credit counseling to any consumer or providing services to assist a consumer with debt management or debt settlement, modifying the terms of any extension of credit, or avoiding foreclosure.

“Defendants” means Armond Aria a/k/a Armond Amir Aria, and by any other names by which he may be known, individually, and as owner and CEO of Global Financial Support, Inc., and Global Financial Support, Inc., and its successors and assigns who receive actual notice of this Order by personal service or otherwise. 6.

“Effective Date” means the date on which the Order is entered on the docket.

“Enforcement Director” means the Assistant Director of the Office of Enforcement for the Consumer Financial Protection Bureau, or his or her delegate. / / /

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“Financial Advisory Services” includes providing services to consumers on individual financial matters or relating to proprietary financial products or services, including but not limited to:

Providing credit counseling to any consumer; and b.

Providing services to assist a consumer with debt management or debt settlement, modifying the terms of any extension of credit, or avoiding foreclosure.

“Related Consumer Action” means a private action by or on behalf of one or more consumers or an enforcement action by another governmental agency brought against any Defendant based on substantially the same facts as described in the First Amended Complaint.

10.

“Relevant Period” includes the period from January 1, 2011 to the Effective Date.

ORDER I.

BAN ON THE PROVISION OF FINANCIAL ADVISORY SERVICES IT IS ORDERED that:

11.

Defendants, whether acting directly or indirectly, are permanently restrained from or Assisting Others in any of the following: a.

Advertising, marketing, promoting, offering for sale, selling, assisting in the sale of, or providing any Financial Advisory Services; b.

Receiving any remuneration or other consideration from, holding any ownership interest in, providing services to, or working in any capacity for any person engaged in advertising, marketing, promoting, offering for sale, selling, or providing any Financial Advisory Services; and / / / Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12343 Page 5 of 17

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Attempting to collect, collecting, or selling or assigning any right to collect payments from consumers who purchased or agreed to purchase any Financial Advisory Services from Defendants. Any further payments received from consumers shall be immediately returned by Defendants.

II.

PROHIBITION ON DECEPTIVE PRACTICES IT IS FURTHER ORDERED that:

12.

Defendants, and their officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with them who have actual notice of this Order, whether acting directly or indirectly, in connection with the advertising, marketing, promotion, offering for sale, sale, or performance of any Consumer Financial Product or Service, may not mispresent, or Assist Others in misrepresenting, expressly or impliedly:

That Defendants will help consumers obtain or find financial aid or grants, or that Defendants will apply for financial aid on behalf of consumers;

That Defendants will target or match consumers with particular financial aid opportunities;

That consumers will lose out on financial aid if they do not respond by a specified deadline;

That Defendants are affiliated with the federal government, or any college or university, in any way;

The total cost of the product or service; and f.

Any other fact material to consumers, such as any material restrictions, limitations, or conditions.

/ / / Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12344 Page 6 of 17

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III.

PROHIBITION ON VIOLATIONS OF “REGULATION P”

IT IS FURTHER ORDERED that:

13.

Defendant Global and its officers, agents, servants, employees, attorneys, subsidiaries, affiliates, and successors in interest, and those persons in active concert or participation with any of them, who have actual notice of this Order, whether acting directly or indirectly, in connection with the advertising, marketing, promotion, offering for sale, sale, or performance of any Consumer Financial Product or Service are hereby permanently restrained and enjoined from engaging in, or Assisting Others in engaging in, the following conduct:

Failing to provide customers with a clear and conspicuous initial privacy notice upon commencement of a customer relationship in violation of Regulation P, 12 C.F.R. § 1016.4(a); and b.

Any other conduct in violation of Regulation P, 12 C.F.R. § 1016. IV.

PROHIBITION ON USING CUSTOMER INFORMATION IT IS FURTHER ORDERED that:

14.

Defendant Global, and its officers, agents, servants, employees and attorneys, and all other persons in active concert or participation with them who have actual notice of this Order, whether acting directly or indirectly, may not disclose, use, or benefit from customer information, including the customer’s name, address, telephone number, email address, social security number, other identifying information, or any data that enables access to a customer’s account (including a credit card, bank account, or other financial account), that Defendant Global obtained before the Effective Date in connection with Consumer Financial Products or Services offered by Defendant Global. However, customer information may be disclosed if requested by a government agency or required by law, regulation, or court order.

/ / / Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12345 Page 7 of 17

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COOPERATION WITH THE BUREAU IT IS FURTHER ORDERED that:

15.

Defendants must cooperate fully to help the Bureau determine the identity and location of, and the amount of injury sustained by, each Affected Consumer. Defendants must provide such information in its or its agents’ possession or control to the Bureau within fourteen (14) days of the Effective Date. VI.

ORDER TO PAY REDRESS IT IS FURTHER ORDERED that:

16.

A judgment for monetary relief is entered in favor of Plaintiff and against Defendants, jointly and severally, in the amount of $4,738,028 for the purpose of providing redress to Affected Consumers.

17.

Within ten (10) days of the Effective Date, Defendants must pay $4,738,028 by wire transfer to the Bureau or to the Bureau’s agent in compliance with the Bureau’s wiring instructions.

18.

Defendants are liable for this amount, which represents the revenue gained as a result of the conduct alleged in the First Amended Complaint minus refunds already provided to consumers, with post-judgment interest at the legal rate. 19.

This monetary judgment is enforceable against any Asset owned by, on behalf of, for the benefit of, or in the trust by or for, any Defendant. 20.

With regard to any redress that Defendants pay under this Section (Order to Pay Redress), if any Defendant receives, directly or indirectly, any reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, or if any Defendant secures a tax deduction or tax credit with regard to any federal, state, or local tax, such Defendant must: (a) immediately notify the Enforcement Director in writing, and (b) within ten (10) days of receiving the funds or monetary benefit, such Defendant must transfer to the Bureau the full amount of such Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12346 Page 8 of 17

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funds or monetary benefit (“Additional Payment”) to the Bureau or to the Bureau’s agent according to the Bureau’s wiring instructions. After the Bureau receives the Additional Payment, that payment will be applied toward the judgment. 21.

Any funds received by the Bureau in satisfaction of this judgment will be deposited into a fund or funds administered by the Bureau or the Bureau’s agent according to applicable statutes and regulations to be used for redress for Affected Consumers, including, but not limited to, refund of moneys, restitution, damages or other monetary relief, and for any attendant expenses for the administration of any such redress.

22.

If the Bureau determines, in its sole discretion, that providing redress to consumers is wholly or partially impracticable or if funds remain after the administration of redress is completed, the Bureau will deposit any remaining funds in the U.S. Treasury as disgorgement. Defendants will have no right to challenge the Bureau’s choice of remedies under this Section (Order to Pay Redress) and will have no right to contest the manner of distribution chosen by the Bureau.

23.

Payment of redress to any Affected Consumer under this Order may not be conditioned on that Affected Consumer waiving any right. VII.

ORDER TO PAY CIVIL MONEY PENALTIES IT IS FURTHER ORDERED that:

24.

Under Section 1055(c) of the CFPA, 12 U.S.C. § 5565(c), by reason of the violations of law found herein, and taking into account the factors in 12 U.S.C. § 5565(c)(3), Defendants must pay a civil money penalty of ten million dollars ($10,000,000) to the Bureau, with post-judgment interest at the legal rate. Defendants are jointly and severally liable for this amount. This monetary judgment is enforceable against any asset owned by, on behalf of, for the benefit of, or in trust by or for, any Defendant.

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25.

Within ten (10) days of the Effective Date, Defendants must pay the civil money penalty by wire transfer to the Bureau or to the Bureau’s agent in compliance with the Bureau’s wiring instructions.

26.

The civil money penalty paid under this Order will be deposited in the Civil Penalty Fund of the Bureau as required by Section 1017(d) of the CFPA, 12 U.S.C. § 5497(d).

27.

For all purposes, Defendants must treat the civil money penalty paid under this Order as a penalty paid to the government. Regardless of how the Bureau ultimately uses those funds, Defendants may not:

Claim, assert, or apply for a tax deduction, tax credit, or any other tax benefit for any civil money penalty paid under this Order; or b.

Seek or accept, directly or indirectly, reimbursement or indemnification from any source, including but not limited to payment made under any insurance policy, regarding any civil money penalty paid under this Order.

28.

To preserve the deterrent effect of the civil money penalty in any Related Consumer Action, Defendants may not argue that any Defendant is entitled to, nor may any Defendant benefit by, any offset or reduction of any compensatory monetary remedies imposed in a Related Consumer Action because of the civil money penalty paid in this action or because of any payment that the Bureau makes from the Civil Penalty Fund. If the court in any Related Consumer Action offsets or otherwise reduces the amount of compensatory monetary remedies imposed against any Defendant based on the civil money penalty paid in this action or based on any payment that the Bureau makes from the Civil Penalty Fund, such Defendant must, within 30 days after entry of a final order granting such offset or reduction, notify the Bureau, and pay the amount of the offset or reduction to the U.S. Treasury. Such a payment will not be considered an Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12348 Page 10 of 17

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additional civil money penalty and will not change the amount of the civil money penalty imposed in this action.

29.

The civil penalty imposed by this Order represents a civil penalty owed to the United States Government, is not compensation for actual pecuniary loss, and, thus, is not subject to discharge under the Bankruptcy Code under 11 U.S.C. § 523(a)(7). VIII.

ADDITIONAL MONETARY PROVISIONS IT IS FURTHER ORDERED that:

30.

In the event of any default on Defendants’ obligations to make payment under this Order, interest, computed under 28 U.S.C. § 1961, as amended, will accrue on any outstanding amounts not paid from the date of default to the date of payment, and will immediately become due and payable.

31.

Defendants relinquish all dominion, control, and title to the funds paid to the fullest extent permitted by law and no part of the funds may be returned to Defendants. 32.

The factual findings issued by this Court in the January 25, 2021 Order, (ECF No. 120,) will be taken as true and be given collateral estoppel effect, without further proof, in any proceeding based on the entry of the Order, or in any subsequent civil litigation by or on behalf of the Bureau in a proceeding to enforce its rights to any payment or monetary judgment under this Order, such as a nondischargeability complaint in any bankruptcy case.

33.

The factual findings issued by this Court in the January 25, 2021 Order, (ECF No. 120,) establish all elements necessary to sustain an action by the Bureau under Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and for such purposes this Order will have collateral estoppel effect against Defendants, even in any such Defendant’s capacity as debtor-in-possession.

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34.

Under 31 U.S.C. § 7701, Defendants, unless they have already done so, must furnish to the Bureau any taxpayer identification numbers, which may be used for purposes of collecting and reporting on any delinquent amount arising out of this Order. 35.

Within thirty (30) days of the entry of a final judgment, Order, or settlement in a Related Consumer Action, Defendants must notify the Enforcement Director of the final judgment, Order, or settlement in writing. That notification must indicate the amount of redress, if any, that any such Defendant paid or is required to pay to consumers and describe the consumers or classes of consumers to whom that redress has been or will be paid.

36.

Upon written request of a representative of the Bureau, any consumer reporting agency must furnish consumer reports to the Bureau concerning Defendants under Section 604(a)(1) of the Fair Credit Reporting Act, 15 U.S.C. § 1681b(a)(1), which may be used for purposes of collecting and reporting on any delinquent amount arising out of this Order.

IX.

REPORTING REQUIREMENTS IT IS FURTHER ORDERED that:

37.

Defendant Aria must notify the Bureau of any development that may affect compliance obligations arising under this Order, including, but not limited to, a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor company; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order; the filing of any bankruptcy or insolvency proceeding by or against any Defendant; or a change in any Defendant’s name or address. Defendant Aria must provide this notice at least thirty (30) days before the development or as soon as practicable after the learning about the development, whichever is sooner.

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38.

Within seven (7) days of the Effective Date, Defendant Aria must: a.

Designate at least one telephone number and email, physical, and postal address as points of contact, which the Bureau may use to communicate with such Defendant;

Identify all businesses for which any Defendant is the majority owner, or that such Defendant directly or indirectly controls, by all their names, telephone numbers, and physical, postal, email, and Internet addresses;

Describe the activities of each such business, including the products and services offered, and the means of advertising, marketing, and sales;

Identify Defendant Aria’s telephone numbers and all email, Internet, physical, and postal addresses, including all residences; and e.

Describe in detail Defendant Aria’s involvement in any business for which he performs services in any capacity or which he wholly or partially owns, including Defendant’s title, role, responsibilities, participation, authority, control, and ownership. 39.

Within seven (7) days after entry of this Order, both Defendants shall prepare and deliver to counsel for the Bureau a completed financial statement that includes any assets located inside or outside the territorial United States and is accurate as of the date of service of this Order, in the form of Attachment A to this Order. This financial statement must be sworn to under penalty of perjury. 40.

Defendant Aria must report any change in the information required to be submitted under Paragraph 38 above at least thirty (30) days before the change or as soon as practicable after learning about the change, whichever is sooner. / / / Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12351 Page 13 of 17

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41.

Within ninety (90) days of the Effective Date, and again one (1) year after the Effective Date, each Defendant must submit to the Enforcement Director an accurate written compliance progress report sworn under penalty of perjury (“Compliance Report”), which, at a minimum:

Lists each applicable paragraph and subparagraph of the Order and describes in detail the manner and form in which such Defendant has complied with each such paragraph and subparagraph of this Order; and b.

Attaches a copy of each “Order Acknowledgment” obtained under Section X, unless previously submitted to the Bureau. X.

ORDER DISTRIBUTION AND ACKNOWLEDGMENT IT IS FURTHER ORDERED that:

42.

Within seven (7) days of the Effective Date, Defendants must submit to the Enforcement Director an acknowledgment of receipt of this Order, sworn under penalty of perjury.

43.

Within thirty (30) days of the Effective Date, Defendants, for any business for which any Defendant is the majority owner or which any Defendant directly or indirectly controls, must deliver a copy of this Order to each of its board members and executive officers, as well as to any managers, employees, service providers, or other agents and representatives who have responsibilities related to the subject matter of the Order.

44.

For ten (10) years from the Effective Date, Defendants, for any business for which any Defendant is the majority owner or which any Defendant directly or indirectly controls, must deliver a copy of this Order to any business entity resulting from any change in structure referred to in Section IX (Reporting Requirements), any future board members and executive officers, as well as to any managers, employees, service Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12352 Page 14 of 17

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providers, or other agents and representatives who will have responsibilities related to the subject matter of the Order before they assume their responsibilities, and any entity or regulatory body from whom any Defendant seeks a business license. 45.

Defendants must secure a signed and dated statement acknowledging receipt of a copy of this Order, ensuring that any electronic signatures comply with the requirements of the E-Sign Act, 15 U.S.C. § 7001 et seq., within thirty (30) days of delivery, from all persons receiving a copy of this Order under this Section (Order Distribution and Acknowledgment).

46.

Within ninety (90) days of the Effective Date, Defendants must provide the Bureau with a list of all persons and their titles to whom this Order was delivered through that date under Paragraphs 43 and 44 and a copy of all signed and dated statements acknowledging receipt of this Order under Paragraph 45. XI.

RECORDKEEPING IT IS FURTHER ORDERED that:

47.

Defendants must create and retain, for at least ten (10) years from the Effective Date, all documents and records necessary to demonstrate full compliance with each provision of this Order.

48.

Defendants must make the documents identified in Paragraph 47 available to the Bureau upon the Bureau’s request.

XII.

NOTICES IT IS FURTHER ORDERED that:

49.

Unless otherwise directed in writing by the Bureau, Defendants must provide all submissions, requests, communications, or other documents relating to this Order in writing, with the subject line, “CFPB v. Global Financial Support, Inc., et al., Case No. 15-cv-02440-GPC-AHG” and send them by overnight courier or first-class mail to the below address and contemporaneously by email to: Case 3:15-cv-02440-GPC-AHG Document 132 Filed 03/29/21 PageID.12353 Page 15 of 17

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[email protected]; and b.

Assistant Director for Enforcement Consumer Financial Protection Bureau ATTENTION: Office of Enforcement 1700 G Street, N.W.

Washington D.C. 20552

The Enforcement Director may, in his or her discretion, modify any non-material requirements of this Order (e.g., reasonable extensions of time and changes to reporting requirements) if he or she determines good cause justifies the modification. Any such modification by the Enforcement Director must be in writing. XIII.

COMPLIANCE MONITORING IT IS FURTHER ORDERED that, to monitor Defendants’ compliance with this Order:

50.

Within fourteen (14) days of receipt of a written request from the Bureau, Defendants must submit compliance reports or other requested information, which must be sworn to under penalty of perjury; provide sworn testimony; or produce documents. 51.

For purposes of this Section, the Bureau may communicate directly with any Defendant, unless such Defendant retains counsel related to these communications. 52.

Defendants must permit Bureau representatives to interview any employee or other person affiliated with any Defendant who has agreed to such an interview. The person interviewed may have counsel present.

53.

Nothing in this Order will limit the Bureau’s lawful use of civil investigative demands under 12 C.F.R. § 1080.6 or other compulsory process. XIV.

RETENTION OF JURISDICTION IT IS FURTHER ORDERED that:

54.

The Court will retain jurisdiction of this matter for the purpose of enforcing this Order.

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XV.

SERVICE IT IS FURTHER ORDERED that:

55.

This Order may be served upon Defendants by electronic mail at the email address provided by Defendant Aria to the Court on behalf of Defendant Aria and Defendant Global.

* * * IT IS SO ORDERED, this 29 day of March, 2021.

Dated: March 29, 2021

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Opinion (Apr. 2023)

PDF of this document (12 pages)

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CONSUMER FINANCIAL PROTECTION BUREAU, Plaintiff-Appellee, v.

ARMOND ARIA, aka Armond Amir Aria, owner and CEO of Global Financial Support, Inc., Defendant-Appellant, and GLOBAL FINANCIAL SUPPORT, INC., dba College Financial Advisory, Student Financial Resource Center, Defendant.

No. 21-55525 D.C. No.

3:15-cv-02440- GPC-AHG OPINION Appeal from the United States District Court for the Southern District of California Gonzalo P. Curiel, District Judge, Presiding Argued and Submitted November 15, 2022 San Jose, California Filed December 13, 2022 Case: 21-55525, 12/13/2022, ID: 12608868, DktEntry: 53-1, Page 1 of 12 FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

Page 69

CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA Before: Susan P. Graber, Richard C. Tallman, and Michelle T. Friedland, Circuit Judges. Opinion by Judge Tallman SUMMARY* Consumer Financial Protection Act The panel affirmed the district court’s summary judgment granted to the Consumer Financial Protection Bureau (“CFPB”) in its civil enforcement action alleging that Armond Aria mailed deceptive solicitations to current and prospective college students, advertising a targeted program for assisting those students in applying for scholarships.

Aria contended that he was not a “covered person” subject to the CFPB’s authority because he merely provided nonfinancial advice and free, gift-based scholarships. The Consumer Financial Protection Act (“CFPA”) lists ten categories of a “consumer financial product or service” and permits the CFPB to promulgate additional definitions by regulations. The eighth category is relevant here: “providing financial advisory services . . . to consumers on individual financial matters or relating to proprietary financial products or services . . . .” 12 U.S.C. § 5481(15)(A)(viii). The panel rejected Aria’s argument that he did not provide financial advisory services. First, Aria was incorrect in claiming that * This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. Case: 21-55525, 12/13/2022, ID: 12608868, DktEntry: 53-1, Page 2 of 12

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA scholarships are not financial in nature merely because they do not have to be repaid. Second, the record establishes that Aria’s advice extended beyond the topic of scholarships, covering the entire field of student financial aid. Third, Aria did, in fact, hold himself out as an expert in finance. The panel held that Aria provided “financial advisory services,” and the district court did not err in concluding that Aria was a “covered person” under the CFPA.

Next, Aria contended that the district court erred by failing to consider the net impression of his solicitations when it determined that they were deceptive. The panel expressly adopted the net impression test, which provides that a solicitation may be likely to mislead by virtue of the net impression it creates even though the solicitation also contains truthful disclosures, in enforcement actions under the CFPA. The panel held that Aria was incorrect that the district court failed to consider the net impression of the entirety of his solicitation materials. In addition, the district court did not err by concluding that no issue of material fact existed as to the deceptive nature of Aria’s conduct based upon the net impression created by his entire solicitation packet.

The panel held that Aria forfeited his challenge to the district court’s calculation of the restitution and civil penalties because he did not adequately raise the arguments to preserve them below.

Case: 21-55525, 12/13/2022, ID: 12608868, DktEntry: 53-1, Page 3 of 12

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA COUNSEL Tanmay Shukla (argued), Chicago, Illinois, for Defendants- Appellant.

Derick Koo Sohn Jr. (argued) and Kevin E. Friedl, Senior Counsels; Laura M. Hussain, Assistant General Counsel; Steven Y. Bressler, Acting Deputy General Counsel; Seth Frotman, General Counsel; Consumer Financial Protection Bureau; Washington, D.C.; for Plaintiff-Appellee. OPINION TALLMAN, Circuit Judge:

The Consumer Financial Protection Act (CFPA) prohibits providers of “financial advisory services” from engaging in deceptive conduct.

U.S.C.

§§ 5481(15)(A)(viii), 5536(a)(1)(B). Armond Aria mailed millions of solicitations to current and prospective college students, advertising a targeted program for assisting those students in applying for scholarships. The Consumer Financial Protection Bureau (CFPB) filed an enforcement action in the district court alleging the solicitations were deceptive. The district court agreed and granted summary judgment to the CFPB.

On appeal, Aria primarily contends that he did not provide financial advisory services within the meaning of the CFPA because he offered advice on gift-based scholarships as opposed to investments or debt instruments.

Alternatively, he argues that his solicitations were not deceptive. We disagree and affirm. Case: 21-55525, 12/13/2022, ID: 12608868, DktEntry: 53-1, Page 4 of 12

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA I A Aria was the founder, owner, CEO, and registered agent of the now-defunct Global Financial Support, Inc. (Global). Operating under the names “College Financial Advisory” and “Student Financial Resource Center,” Global mailed millions of solicitations to current and prospective college students from 2011 to 2016. The solicitation packets contained a letter, an information sheet, a Demographic Form, and a return envelope.

The letters featured official-looking letterhead with college-themed seals and an arbitrary filing deadline. The wording varied from year to year, but the letters generally advised students to avoid taking out loans until they had applied to all of the available “free” financial aid programs. The letters asked students and their parents to disclose basic demographic information in the Demographic Form and pay Global a $59 to $78 “processing” fee. In exchange, the letters vaguely promised to enroll the students in a financial aid program. Meanwhile, the Demographic Form promised “to provide as many targeted financial aid opportunities as possible to each and every student.” In fine print footnotes, the letters disclaimed any affiliation with governmental or educational institutions.

Minus refunds, Global received $4,738,028 in fees from at least 76,000 students. The only product or service that students received was a booklet. Each booklet contained a welcome memo that provided a general overview of student financial aid with advice on topics ranging from federal student loans to the tax implications of attending college. The booklets also contained sections on federal and state financial aid programs. Although Global included some Case: 21-55525, 12/13/2022, ID: 12608868, DktEntry: 53-1, Page 5 of 12

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA tailored information based on students’ responses to the Demographic Form, Aria admitted the information was compiled “at a group level” and he “did not individually tailor [the booklets] to” any individual student. For example, students sometimes received the contact information for all 50 states’ financial aid agencies—regardless of the students’ residency—and were directed to Google search their home state’s financial aid opportunities. Additionally, Aria asked students to list their interest in playing collegiate sports, but the booklets provided only a generic “list of scholarships available to student athletes regardless of sport.” Hundreds of complaints were submitted to various state, federal, and nonprofit consumer watchdog entities, which triggered the federal consumer fraud investigation that led to this proceeding.

B In October 2015, the CFPB filed a civil enforcement action against Global and Aria. In relevant part, the CFPB alleged that Defendants’ conduct was deceptive because it misled students into thinking: (1) Global would provide a program to assist them in applying for scholarships; (2) Global would match them to individually targeted scholarship opportunities; and (3) they would miss financial aid opportunities by not complying with the filing deadline. The district court stayed the case due to a pending collateral federal criminal investigation of Aria. In May 2019, the district court lifted the stay. In August 2020, the CFPB moved for summary judgment against Aria and default judgment against Global. The district court granted the CFPB’s motion for default judgment against Global after Global failed to secure counsel to appear and defend the Case: 21-55525, 12/13/2022, ID: 12608868, DktEntry: 53-1, Page 6 of 12

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA corporation and granted the CFPB’s motion for summary judgment against Aria.

With respect to Aria, the district court held that his conduct fell under the CFPB’s enforcement authority. The district court also found that he deceived students from 2011 to 2015 by implying that he offered a program for financial aid applications; he deceived students from 2011 to 2016 by implying that he would match students with scholarships; and he falsely implied throughout the relevant period that students would forfeit his services if they failed to comply with his arbitrary deadlines. The district court awarded restitution in the form of $4,738,028 in revenues net of refunds and imposed a civil penalty of $10 million. The district court also awarded injunctive relief to the CFPB. Aria appeals, arguing that he was not subject to the CFPB’s authority because he provided nonfinancial advice on “free” scholarships; that the net impression of his solicitations was not deceptive; and that the district court erred in calculating the restitution and civil penalty sums. II “We review a district court’s grant of summary judgment de novo and may affirm on any ground supported by the record.” CFPB v. Gordon, 819 F.3d 1179, 1187 (9th Cir. 2016). We likewise review questions of statutory construction de novo. McKinney-Drobnis v. Oreshack, 16 F.4th 594, 603 (9th Cir. 2021).

III The CFPA “makes it unlawful for a covered person [] ‘to engage in any unfair, deceptive, or abusive act or practice.’” CFPB v. CashCall, Inc., 35 F.4th 734, 746 (9th Cir. 2022) (quoting 12 U.S.C. § 5536(a)(1)(B)). Aria contends that he Case: 21-55525, 12/13/2022, ID: 12608868, DktEntry: 53-1, Page 7 of 12

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA was not a “covered person” subject to the CFPB’s authority because he merely provided nonfinancial advice on free, gift-based scholarships.

12 U.S.C. § 5481(6)(A) defines a “covered person” as “any person that engages in offering or providing a consumer financial product or service.” The CFPA lists ten categories of a “consumer financial product or service” and permits the CFPB to promulgate additional definitions by regulation. See § 5481(15)(A)(i)-(xi). The eighth category is relevant here:

“providing financial advisory services . . . to consumers on individual financial matters or relating to proprietary financial products or services . . . .” § 5481(15)(A)(viii).

The CFPA does not provide a specific distinction between financial and nonfinancial activities, and the CFPB has yet to promulgate any relevant definitions or guidelines. See 12 C.F.R. §§ 1001.2, 1091.101 (2022). When a term goes undefined in a statute, we give the term its ordinary meaning. CashCall, Inc., 35 F.4th at 746. “To determine ordinary meaning, we consider dictionary definitions.” Tomczyk v. Garland, 25 F.4th 638, 644 (9th Cir. 2022) (en banc) (quoting United States v. Cox, 963 F.3d 915, 920 (9th Cir. 2020)).

Merriam-Webster’s defines the adjective “financial” as “relating to finance.” Financial, MERRIAM-WEBSTER’S COLLEGIATE DICTIONARY (11th ed. 2003). It in turn provides several definitions for the noun “finance.” Some are narrowly defined in relation to debt instruments or investments, but others are broadly defined as “money or other liquid resources of [an] . . . individual” or “the obtaining of funds or capital: FINANCING.” Id. at Finance (n). “Financing” is likewise broadly defined as “the act or Case: 21-55525, 12/13/2022, ID: 12608868, DktEntry: 53-1, Page 8 of 12

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA process or an instance of raising or providing funds.” Id. at Financing. And the transitive verb “finance” is defined as “to raise or provide funds or capital for” (e.g., finance “a new house”) or “to furnish with necessary funds” (e.g., finance “a son through college”). Id. at Finance (vt) (emphasis added).

For several reasons, we reject Aria’s argument that he did not provide “financial advisory services.” § 5481(15)(A)(viii). First, Aria is incorrect that scholarships are not financial in nature merely because they do not have to be repaid. As discussed, the ordinary meaning of financial is broad and encompasses both cash financing and debt financing. Indeed, the definition of “finance” specifically contemplates raising funds, regardless of their origin, for college tuition.

Finance (vt), MERRIAM-WEBSTER’S COLLEGIATE DICTIONARY (11th ed. 2003). Advising students to exhaust scholarship opportunities before taking on debt is no less “financial” than advising students to leverage their unique access to federally subsidized loans.1 Second, the record establishes that Aria’s advice extended beyond the topic of scholarships, covering the entire field of student financial aid. Although his solicitation letters focused primarily on scholarships, the booklets that 1 Aria urges us to interpret the modifier “financial” narrowly in light of the CFPA’s legislative history. He points out that Congress deleted language that would have included “other related advisory services” from an early version of the bill. Compare H.R. 4173, 111th Cong. § 4002(19)(A)(ix)(I) (Dec. 2, 2009) (as introduced in the House), with H.R. 4173, 111th Cong. § 1002(13)(A)(viii) (May 20, 2010) (as amended in the Senate). Even assuming “financial” should be read narrowly, Aria’s conduct fell comfortably within the definition of “financial advisory services.”

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA Aria mailed to paying students offered advice ranging from federal student loans, grants, and work study to tax subsidies and health insurance.2 He even offered advice on leveraging a family home to pay for college, and he ultimately did advise accepting student loans as a last resort. Aria’s advice covered the entire gamut of financial aid and was undoubtedly financial in nature.

Third, Aria argues that his advice cannot be considered financial because he did not hold himself out as an expert in finance. We need not address Aria’s legal argument that § 5481(15)(A)(viii) is limited to purported experts offering financial advisory services because Aria did, in fact, hold himself out as an expert in finance. His business marketed itself as offering advisory services on financial aid. Global first did business under the name “College Financial Advisory” and then transitioned to “Student Financial Resource Center.” These names naturally imply expertise in the field of student financial aid.

We hold that on this record Aria provided “financial advisory services”

as defined in U.S.C.

§ 5481(15)(A)(viii). Accordingly, the district court did not err by concluding that Aria was a “covered person” under the CFPA.

IV Aria next argues that the district court erred by failing to consider the net impression of his solicitations when it determined they were deceptive. An unlawfully 2 Because the CFPB has authority over those “offering or providing a consumer financial product or service,” we look beyond Aria’s solicitations to determine if his conduct fell within the CFPB’s purview. § 5481(6)(A) (emphasis added).

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA “‘deceptive’ practice is one ‘tending to deceive,’ that is, ‘to cause to believe the false.’” CashCall, Inc., 35 F.4th at 746 (quoting Deceive & Deceptive, WEBSTER’S THIRD NEW INTERNATIONAL DICTIONARY (2002)). In cases brought under the similarly worded Federal Trade Commission Act, we have explained that a “solicitation may be likely to mislead by virtue of the net impression it creates even though the solicitation also contains truthful disclosures.” FTC v. Cyberspace.com LLC, 453 F.3d 1196, 1200 (9th Cir. 2006). We have previously referenced the net impression test in enforcement actions brought under the CFPA, see Gordon, 819 F.3d at 1193; CashCall, Inc., 35 F.4th at 740, and we expressly adopt it here.

Aria is incorrect that the district court failed to consider the net impression of the entirety of his solicitation materials. The district court referenced the net impression test throughout its analysis and concluded that “the net impression created by Mr. Aria’s solicitation packets [was] likely to mislead reasonable consumers.” To the extent Aria challenges the district court’s reasons for concluding the net impression was deceptive, his arguments also fall short. The record establishes that Aria promised to “proceed with [a] . . . program and apply for the maximum . . . financial aid programs” if students submitted the Demographic Form and paid the processing fee. Instead, the students merely received booklets. The record also establishes that Aria promised “to provide as many targeted financial aid opportunities as possible.” Instead, students received “group level” information that was “not individually tailor[ed]” to them. Finally, the letters created a sense of urgency by listing filing deadlines. But Aria did not have a rule of treating late-filers differently. He simply pocketed the money and continued business as usual. Case: 21-55525, 12/13/2022, ID: 12608868, DktEntry: 53-1, Page 11 of 12

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CONSUMER FINANCIAL PROTECTION BUREAU V. ARIA Aria also argues that a reasonable student could not have been deceived after reviewing the entire solicitation packet and responding to his request for basic, nonfinancial demographic information. But nothing Aria cites could possibly rescue prospective customers from the false impressions that his solicitations were designed to create. Reasonable students would assume that, by responding to Aria’s requests for information, they were “proceed[ing]” with Aria’s “program” to help them finance their college education.

The district court did not err by concluding that no issue of material fact existed as to the deceptive nature of Aria’s conduct based upon the net impression created by his entire solicitation packet.

V Aria also challenges, for the first time before us, the district court’s calculation of the restitution and civil penalties. Because Aria did not adequately raise these arguments to preserve them below, he has forfeited them. See Momox-Caselis v. Donohue, 987 F.3d 835, 841-42 (9th Cir. 2021).

VI The district court properly concluded that Aria was subject to the CFPB’s authority and that no issue of material fact existed to undermine the deceptive nature of his conduct. Summary judgment was warranted on this record. AFFIRMED.

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