DECLARATION OF DANIELLE KINNEY IN SUPPORT OF FEDERAL TRADE

COMMISSION’S MOTION FOR PRELIMINARY INJUNCTION

 4:18-CV-00806-SBA

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ALDEN F. ABBOTT

Acting General Counsel 

SARAH SCHROEDER, Cal. Bar No. 221528

ROBERTA TONELLI, Cal. Bar No. 278738 

EVAN ROSE, Cal. Bar No. 253478 

Federal Trade Commission

901 Market Street, Suite 570

San Francisco, CA 94103 

sschroeder@ftc.gov, rtonelli@ftc.gov, erose@ftc.gov 

Tel: (415) 848-5100; Fax: (415) 848-5184 

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

Related Case: 4:17-cv-04817-SBA 

DECLARATION OF DANIELLE 

KINNEY IN SUPPORT OF FEDERAL 

TRADE COMMISSION’S MOTION 

FOR PRELIMINARY INJUNCTION

Case 4:18-cv-00806-SBA Document 110 Filed 04/19/18 Page 1 of 4
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DECLARATION OF DANIELLE KINNEY 

1. My name is Danielle Kinney and I reside in California. The following statements 

are within my personal knowledge and if called as a witness I could and would competently 

testify thereto. 

2. From approximately February 2016 to May 2017, I worked in the Operations 

Department of Ameritech Financial (“Ameritech” or “the company”) in the company’s Rohnert 

Park office. The Operations Department handled customer service issues for the company’s 

clients. The descriptions of the company’s policies and procedures in this declaration are based 

on my personal experience and things I observed while working at the company. 

3. While in college, I took a job at Ameritech. I hated working there, but my stepdad passed away from cancer and I was financially supporting my mom, who had a stroke. 

4. Ameritech charged consumers an enrollment fee, a monthly membership fee, and 

a fee to submit student loan repayment applications to clients’ lenders. I did not think Ameritech 

had the right to charge consumers a monthly membership fee. The company bundled the fees 

together into one monthly payment. Many consumers did not understand what they were paying 

for. Some clients thought their monthly membership fee was going towards their student loan 

payment and that Ameritech was making monthly payments to the loan servicer. 

5. Ameritech used third-party payment processing companies to collect fees from 

their clients. The payment processors were supposed to hold some of the fees in escrow until 

Ameritech completed the promised work on the client’s student loan. In 2016, Ameritech used a 

payment processor called Global Client Solutions (“GCS”). 

6. In approximately January 2017, Ameritech switched payment processors and 

Ameritech’s owner, Brandon Frere, wanted to withdraw approximately $500,000 from a GCS 

escrow accounts. Mr. Frere asked several staff in the Operations Department, including me, to 

assist him in obtaining the funds. He called the assignment the “GCS Project” and supervised 

staff on the project. The GCS Project was supposed to take 60 days, but it was still going on 

when I left the company. 

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7. The GCS Project involved Ameritech staff contacting approximately 1,200 clients 

and persuading them to sign a form stating that Ameritech had completed the promised work on 

their student loan. Mr. Frere instructed staff to email and text clients and “get them to reply 

yes,” even if Ameritech had not performed any work on their files. Ameritech then submitted 

the forms to GCS and requested funds from consumers’ escrow account. I estimate that in 75% 

of cases, Ameritech had not completed work on the client’s file. 

8. I felt uncomfortable collecting funds from clients who had received no benefit 

from the company and raised my concerns at two staff meetings for the GCS Project. I also 

wrote down the names of approximately 50 clients whose escrow funds Ameritech improperly 

collected from GCS. I gave the list of names to my supervisor. 

9. Another concern I had about Ameritech was the way the company calculated 

clients’ family size on their student loan repayment applications. Ameritech’s policy around 

family size seemed to change every week and was a joke. Ameritech’s sales staff told 

consumers that their family size for the purposes of their student loan could include anyone they 

financially support, including people they bought Christmas gifts for or whose phone bill they 

paid. 

10. Ameritech’s Operations Department received approximately 100 phone calls a 

day from clients who were confused about how to calculate their family size for their loan 

repayment applications. Sales staff told clients one thing, and then letters from their loan 

servicers said another. Student loan servicers questioned the family size figures for some of 

Ameritech’s clients and were denying applications right and left. I received so many calls about 

family size that Ameritech instructed me to refer them all to my manager, Holly Novak. 

11. I think Ameritech gave refunds to consumers who were charged twice or had 

other technical problems. Higher up management at the company dealt with refund requests. 

12. Mr. Frere was in Ameritech’s office a lot and was very involved in the Operations 

Department. He came to meetings, but never talked with Ameritech’s clients. 

13. In May 2017, I was fired from Ameritech because I refused to follow orders and 

submit false paperwork for the GCS Project. A manager at Ameritech told me I had to file some 

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termination paperwork or he would sign it for me. I considered filing a whistleblower or 

retaliation claim with the Labor Board, but did not have the resources to pursue the case. 

14. I am in contact with someone who still works at Ameritech. In February 2018, 

this person told me that a supervisor at Ameritech had a meeting with Ameritech staff and told 

them that the company was going to change its name, but continue operations as usual, similar to 

when it changed from American Financial Benefits Center to Ameritech Financial. I was angry 

when I heard about the company’s attitude. On March 1, 2018, I sent the following email to the 

FTC: 

Hello, 

My name is Danielle Kinney and I just recently received a letter about Ameritech 

Financial who is my previous employer. I was fired in May of 2017 because I would not 

participate in a project Brandon was working on. This project consisted of collecting 

money from customers even if no work was done on the file. I did not agree with the 

project therefore refused to participate. I was fired a week later and forced to sign papers 

by HR manager Steve Sims. Before I was fired, I documented each customer who I was 

asked to call every day for over 90 days. These customers had no work done for them, 

therefore they should of received a full refund. But we were instructed to collect the 

money even if no work had been done. I believe that I have some vital information that 

could help in this case and bring some justice to the customers. Please let me know of a 

time we could speak about this case. Thank you. 

I hope to hear from you soon. 

Danielle Kinney 

15. I declare under penalty of perjury that the foregoing is true and correct. Executed 

on April 16, 2018, in California. 

_________________________ 

 Danielle Kinney

Danielle Kinney 

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