FTC adds Michael Toloff’s wife Gayle to FES fraud case
Gayle Toloff has been added as a relief defendant in the FTC’s ongoing Financial Education Services fraud case.
Gayle Toloff is the wife of FES co-founder Mike Toloff.
As per the FTC’s March 27th First Amended Complaint, Gayle Toloff
is an individual who has received funds that can be traced directly to Defendants’ unlawful acts or practices alleged below, and she has no legitimate claim to those funds.
Gayle Toloff allegedly received “at least $9.2 million” in FES funds through the Gayle L. Toloff Revocable Living Trust.
Also added to the FTC’s lawsuit are LK Commercial Lending LLC and Statewide Commercial Lending LLC – two Michigan registered companies co-owned by Michael Toloff.
In numerous instances, Defendants obtain consumers’ credit reports in the names of LK Commercial Lending and Statewide Commercial Lending.
In numerous instances, consumers are unaware that their credit reports will be pulled in the name of LK Commercial Lending or Statewide Commercial Lending.
In numerous instances, Defendants falsely represent to consumer reporting agencies that LK Commercial Lending and Statewide Commercial Lending are lenders.
In fact, neither LK Commercial Lending nor Statewide Commercial Lending are lenders.
Neither LK Commercial Lending nor Statewide Commercial Lending have ever issued or received an application for any loan or other extension of credit. Nor have they made any loans or other extension of credit.
The FTC groups LK Commercial Lending and Statewide Commercial Lending into the overall FES “common enterprise”.
Defendants FES, United Wealth, VR-Tech, VR-Tech Mgt, CM Rent, and Youth Financial, LK Commercial Lending, and Statewide Commercial Lending have operated as a common enterprise while engaging in the unlawful acts and practices alleged below.
FES’ alleged unlawful acts and practices are detailed in the FTC’s original mid 2022 filed Complaint.
On March 30th the FES Defendants filed a motion requesting an extension of time to reply to the FTC’s Amended Complaint.
A decision on that motion remains pending but will likely be granted.
Following denial of a preliminary injunction and failed attempt to dismiss the FTC’s case, FES currently operates under oversight of a court-appointed Monitor.
A bench trial is currently scheduled for May 14th, 2024.
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