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Plaintiffs file racketeering suit against Resolvly, others over student loan debt resolution program

Lawsuits

By Takesha Thomas | Dec 19, 2018


SANTA ANA, Calif. (Legal Newsline) – A proposed class action suit has been filed against several companies and attorneys for allegedly targeting people who owed student loans in an alleged student loan debt resolution scheme.

Plaintiffs Vivian Grijalva, Evan Wendt, Jasmine Young and Erinn Sudol filed suit on Nov. 12 in the U.S. District Court Central District of California, Southern Division alleging that they were purposefully targeted, claiming that the companies they signed with would help them pay back student loans for half the amount they owed. 

The defendants named in the suit are Kevin Mason, GM Law Firm, National Legal Staffing Support LLC, Chantel L. Grant, National Legal Staffing Support, Reliant Account Management LLC, Resolvly LLC, Gregory Fishman, Julie Queler, Benjamin Zuckerman, Berger Singerman, Daszkal Bolton, John and Jane Doe defendants 1-5 and XYZ business entity defendants 1-5.

The plaintiffs allege they agreed to pay 50 percent of the total private student loan balance in monthly payments for 60 months. The suit states the payments were not applied in any way to their student loan balances and instead were fees that have been kept by the defendants.

The plaintiffs claim 11 counts including, legal malpractice, breaches of contract, breaches of expressed and implied warranties, breaches of fiduciary duties, various statutory violations, and/or fraud as related to improperly solicited legal services of so-called private student loan debt resolution and the criminal racketeering enterprise in which the defendants have actively participated and from which they have unlawfully profited.

The plaintiffs allege the defendants violated the Racketeer Influenced and Corrupt Organizations Act, California's Unfair Competition Law, fraud and other counts.

The plaintiffs seek actual and statutory damages, pre- and post-judgment interest and attorneys' fees. The plaintiffs are represented by Daniel Gamez of the Gamez Law Firm Los Angeles.

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U.S. District Court for the Central District of California Southern Division

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