FTC Stops Sprawling Credit Repair Scheme that Scammed Consumers Out of Nearly $200 Million

At the request of the Federal Trade Commission, a federal court has temporarily halted a bogus credit repair scheme run by a sprawling network of 17 related companies and their principals.

The FTC’s complaint alleges that, since at least 2016, Credit Glory, a network of 16 related entities and their five principals (Alexander Brola, Liam Emery, Marko Petkovic, Joshua Curtis and David Naylor), made false and misleading promises about their credit repair services, impersonated debt collection companies and creditors, collected illegal upfront fees and engaged in unlawful subscription enrollment practices. The operation scammed consumers out of nearly $200 million through unlawful up-front and recurring charges.

“Using paid Google search ads to target and deceive vulnerable consumers, including military servicemembers, through falsely promising to improve their credit is egregious behavior that will not be tolerated by the FTC,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “We are pleased that the court shut down this illegal operation. The FTC is committed to protecting consumers from credit repair schemes that require up-front fees and fail to deliver promised results.”

The FTC’s complaint notes that the defendants used paid search advertising to, in some instances, specifically target military servicemembers owing debts to military-related creditors, such as Army & Air Force Exchange Service and USAA, falsely promising to improve their credit by disputing those debts.

Specifically, the FTC alleges the defendants illegally: