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Case No. 4:18-cv-00806-SBA

MCNAMARA DECL. ISO EX PARTE APPL’N

Sanjay Bhandari (SBN 181920)

McNamara Smith LLP

655 West Broadway, Suite 1600

San Diego, California 92101

Telephone: 619-269-0400

Facsimile: 619-269-0401

Email: sbhandari@mcnamarallp.com

Attorneys for Court-appointed Receiver,

Thomas W. McNamara

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

OAKLAND DIVISION

FEDERAL TRADE COMMISSION,

Plaintiff,

vs.

AMERICAN FINANCIAL BENEFITS 

CENTER, a corporation, also d/b/a AFB and 

AF STUDENT SERVICES; AMERITECH 

FINANCIAL, a corporation; FINANCIAL 

EDUCATION BENEFITS CENTER, a 

corporation; and BRANDON DEMOND 

FRERE, individually and as an officer of 

AMERICAN FINANCIAL BENEFITS 

CENTER, AMERITECH FINANCIAL, and 

FINANCIAL EDUCATION BENEFITS 

CENTER,

Defendants.

Case No. 4:18-cv-00806-SBA

DECLARATION OF THOMAS W. 

MCNAMARA IN SUPPORT OF 

RECEIVER’S EX PARTE APPLICATION 

SEEKING COMPLIANCE WITH 

PRELIMINARY INJUNCTION AND 

ORDER TO SHOW CAUSE AS TO WHY 

DEFENDANT BRANDON FRERE 

SHOULD NOT BE HELD IN CIVIL 

CONTEMPT

JUDGE: Hon. Saundra Brown Armstrong

Case 4:18-cv-00806-SBA Document 189-1 Filed 12/04/18 Page 1 of 3
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1 Case No. 4:18-cv-00806-SBA

MCNAMARA DECL. ISO EX PARTE APPL’N

I, Thomas W. McNamara, hereby declare as follows:

1. I am the Receiver in this case and I have personal knowledge of the facts set forth 

in this Declaration. If called as a witness, I could and would competently testify to the facts 

stated herein.

2. I make this Declaration in support of the Receiver’s Ex Parte Application Seeking 

Compliance with Preliminary Injunction and Order to Show Cause as to Why Defendant 

Brandon Frere Should Not Be Held in Civil Contempt.

3. I have spoken to counsel for both Defendant Brandon Frere (“Frere”) and 

Plaintiff. I understand that counsel for both parties were informed at approximately 11:00 a.m. 

PT on November 29, 2018, by the Court clerk that the Initial Case Management Conference, then 

set for 2:45 p.m. that afternoon, would be continued in anticipation of a forthcoming Order on 

the FTC’s Motion for Preliminary Injunction. 

4. I further understand that the Clerk’s Notice Continuing the Initial Case 

Management Conference (ECF No. 185) was issued a short time later, at roughly 11:40 a.m. 

5. I further understand that the Court’s Order on the FTC’s Motion for Preliminary 

Injunction was issued at about 2:30 p.m. (or just before the time for which the Initial Case 

Management Conference had originally been set). Counsel for Plaintiff notified me on 

November 29, 2018 at about 3:00 p.m. that I had been appointed Receiver in this case. 

6. Attached hereto as Exhibit 1 is a true and correct copy of the account balance 

history for an account with Bank of America belonging to Defendant American Financial 

Benefits Center (“AFBC”) ending in -9542 (“the AFBC account”).

7. At 16:44 ET (1:44 p.m. PT), $2,500 was wired from the AFBC account to Justin 

Frere, who I understand to be Frere’s brother. Ex. 1 at 2.

8. At 16:45 ET (1:45 p.m. PT), $3,000 was wired from the AFBC account to 

Cameron Henry, who I understand to be a former employee of Defendants and a partial owner of 

one or more of Defendants. Ex. 1 at 1.

9. At 16:45 ET (1:45 p.m. PT), $5,000 was wired from the AFBC account to Andre 

and Gloria Frere, who I understand to be Frere’s parents. Ex. 1 at 1.

Case 4:18-cv-00806-SBA Document 189-1 Filed 12/04/18 Page 2 of 3
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2 Case No. 4:18-cv-00806-SBA

MCNAMARA DECL. ISO EX PARTE APPL’N

10. At or around 16:45 ET (1:45 p.m. PT), $89,500 was transferred from the AFBC 

account to a savings account ending in -7970, which I understand is a personal account 

belonging to Frere. Ex. 1 at 1.

11. At 16:50 ET (1:50 p.m. PT), $100,000 was wired from the AFBC account to 

Nossaman LLP, counsel to Frere.

12. Attached hereto as Exhibit 2 is a true and correct copy of the account balance 

history for an account with Bank of America belonging to Defendant Financial Education 

Benefits Center (“FEBC”) ending in -5475 (“the FEBC account”).

13. At 16:46 ET (1:46 PT), $5,000 was wired from the FEBC account to Justin Frere. 

Ex. 2 at 1.

14. At 16:47 ET (1:47 PT), $6,000 was wired from the FEBC account to Cameron 

Henry. Ex. 2 at 1.

15. At 16:48 ET (1:48 PT), $10,000 was wired from the FEBC account to Andre and 

Gloria Frere. Ex. 2 at 1.

16. At or around 16:48 (1:48 PT), $179,000 was transferred from the FEBC account 

to a savings account ending in -7970, which I understand is a personal account belonging to 

Frere.

17. On Friday afternoon, after learning of these transfers, I spoke with both counsel 

for Frere. I informed them that their client had violated the PI Order by making the transfers 

described above, and that he needed to return those assets to the Receivership Estate. I spoke to 

both counsel about this issue again on Monday, December 3. The funds have not been returned. 

I declare under penalty of perjury under the laws of the United States that the foregoing is 

true and correct.

Executed this 4th day of December, 2018, in Rohnert Park, California.

/s/ THOMAS W. MCNAMARA

Thomas W. McNamara

Court-Appointed Receiver

Case 4:18-cv-00806-SBA Document 189-1 Filed 12/04/18 Page 3 of 3