In a suit that reads like a David vs. Goliath struggle for consumer justice, the New York-headquartered Strategic Financial Solutions (SFS) finds itself in the crosshairs of a multi-state legal offensive led by Illinois Attorney General Kwame Raoul and backed by the Consumer Financial Protection Bureau (CFPB). The legal maelstrom has embroiled SFS – a company proclaiming to aid individuals saddled with debt – along with its CEO Ryan Sasson and Jason Blust, a key associate in the alleged scheme.
According to a statement released by the Illinois Attorney General's Office, the defendants are accused of amassing "hundreds of millions of dollars in illegal fees" from consumers under the guise of providing debt relief services. The lawsuit, unveiled in the U.S. District Court for the Western District of New York on Jan. 10, 2024, levies heavy allegations of predatory practices against SFS and its affiliates. In swift judicial response, a temporary restraining order slapped an asset freeze on Jan. 11, aiming to curtail the company's questioned dealings.
“Consumers who are struggling financially and trying to pay down their debt need real help, not false promises and predatory fees,” Raoul declared. CFPB Director Rohit Chopra echoed the sentiment, illustrating the operators of the scheme as having cloaked their illegal activities behind a labyrinth of shell companies and faux law firms in a bid to elude enforcement's gaze.
The litany of charges unfolding against SFS builds on accusations of charging advance fees in clear violation of the Telemarketing Sales Rule, besides misleading customers with the assurances of legal intervention in their debt scenarios. Sasson and Blust, who have past ties to another discredited debt-relief operation known as Legal Helpers Debt Resolution LLC are the alleged masterminds behind a ruse that traces back to 2016, during which time, rafts of vulnerable individuals were purportedly charged over $100 million.
The CFPB, brandishing the Consumer Financial Protection Act as its legal sword, stands united with Raoul and attorneys general from Colorado, Delaware, Minnesota, New York, North Carolina, and Wisconsin. For wronged parties, Raoul's office signals a beacon of hope, urging victimized consumers to stand up and file a complaint. Advice and potential solace are just a call away, with lines open in Chicago, Springfield, Carbondale, and a Spanish-language hotline ready to aid.
