1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 4:18-cv-00806-SBA Document 107 Filed 04/19/18 Page 1 of 4 

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 KELLY 

CRETCHER IN SUPPORT OF 

FEDERAL TRADE COMMISSION’S 

MOTION FOR PRELIMINARY 

INJUNCTION 

DECLARATION OF KELLY CRETCHER IN SUPPORT OF FEDERAL TRADE 

COMMISSION’S MOTION FOR PRELIMINARY INJUNCTION 

4:18-CV-00806-SBA 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 4:18-cv-00806-SBA Document 107 Filed 04/19/18 Page 2 of 4 

DECLARATION OF KELLY CRETCHER 

1. My name is Kelly Cretcher 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. I worked for American Financial Benefits Center (“AFBC”) for approximately 7-

8 months between January of 2014 and July of 2014. I worked as an Account Executive in the 

sales department during my time at AFBC. 

3. I was hired by Brandon Frere (“Brandon”) and Cameron Henry (“Cameron”). 

Brandon and Cameron represented themselves as the owners of AFBC. 

4. Prior to starting, my training consisted of reading through a sales script along with 

various rejections and rebuttals for when potential clients would ask us questions about the 

program or challenge us. 

5. My duties as an Account Executive involved taking calls from students that 

received our mailer. My understanding was that the mailers were sent to people who had a 

certain amount of student loan debt. These mailers advertised our company’s ability to reduce or 

eliminate that debt. 

6. My understanding was that we would try to qualify potential clients for the 

Income Based Repayment program offered through the Department of Education. Once we 

enrolled a client, our processing department would file paperwork to put our clients’ loans into 

forbearance. They would also instruct our clients to stop making payments towards their loans. 

7. Part of the criteria used to qualify a client was their reported family size. The 

higher the family size, the more likely that a client would qualify for a lower monthly payment. 

As part of the training, I recall Brandon encouraging me to exaggerate the definition of family 

size when explaining it to a client. I remember Brandon telling me that anyone you had over for 

dinner, your kid’s friend, or someone that used your Netflix account could all be considered 

“family members.” 

Cretcher Declaration - Page 1 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Case 4:18-cv-00806-SBA Document 107 Filed 04/19/18 Page 3 of 4 

8. The cost for our program was approximately $50 a month, which would be paid 

indefinitely until a client’s loan was paid off or forgiven. Consumers thought that this fee was for 

not having to make their student loan payments. 

9. Our company also offered a membership program that was similar to a coupon 

book. My understanding was that this was a bonus and featured things like access to discounted 

auto repair. I do not remember it having much value. Since the sales script was misleading, our 

clients believed the membership was an extra perk and not the only thing they were paying for. 

10. I remember doing some research into this industry and questioned Brandon on if 

what we were doing was legal. I remember Brandon explaining how he found a loophole where 

he could only charge a fee if he called it something other than a fee for loan consolidation. My 

understanding was that this is what the membership program was for, it was a way to legally 

charge this monthly fee. Brandon convinced me that his attorneys looked it over and said it was 

okay. 

11. Over time, I got the impression that Brandon was sleazy and didn’t genuinely 

want to help people. For example, during my interview with him before I started, he was telling 

me how after the economy tanked, he had to get out of the construction business and find a new 

way to make money. He said that the student loan debt relief industry was “an easy way to make 

money.” He also made a comment on how you had to “ride this wave.” In the context of our 

conversation, my understanding was that “wave” referred to the student loan debt relief industry. 

12. Based on my interactions with Brandon, I got the feeling that he was doing very 

well for himself. He was able to build a 5-bedroom house on many acres of land in Sebastapol, 

California. In addition, he bought what appeared to be a very expensive pickup truck. He would 

also buy his girlfriend stuff all the time and lived somewhat of a lavish lifestyle. He struck me as 

someone that would one day end up on the show “American Greed.” 

13. At one point, Cameron told me that Brandon had paid someone at the Better 

Business Bureau to maintain our company’s A rating. I was also told that Brandon was helping 

this same individual out with their student loans. 

Cretcher Declaration - Page 2 
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

14. During my employment, I was written up once for deviating from the script. I do 

not re111ember what the deviation was. 

15. Shortly before leaving, I reme111ber hearing that the servicing department was 

very backed up with complaint calls from people cancelli11g. This was not n1y depart111ent so I 

was unsure as to "vhy. 

16. Shortly before leavi11g, I also got a call from a reporter who asked me if I kne"v 

that AFBC was under investigation by the California Attorney General. I "vas scared to talk to 

the reporter and refused to comment. 

17. I eventually left because I was feeli11g more and 111ore uncomfortable. The work 

environment and culture wasn't healthy and Brandon would constantly change the comn1ission 

stn1cture and lie to employees. After being fed up with the manage111ent, I asked Brandon to lay 

me off, and he did. 

18. I declare under penalty of perjury that the foregoing is tn1e and correct. Executed 

, 2018, in California. 

)

lly~ 

' 

~ Declaration - Page 3 

Case 4:18-cv-00806-SBA Document 107 Filed 04/19/18 Page 4 of 4