Court Freezes Assets of Alleged Credit-Repair Scheme 'Credit Glory' After FTC Suit

The Federal Trade Commission said a federal court has temporarily shut down an alleged bogus credit-repair operation run through a network of 17 related companies operating as Credit Glory, accusing the business of using deceptive search ads, impersonation and illegal billing practices to take roughly $172.5 million from consumers. The court granted emergency relief that includes an asset freeze and the appointment of a temporary receiver to take control of the business while the case proceeds.

The FTC filed its complaint Aug. 3, 2026, in the U.S. District Court for the District of Arizona, and the court entered a temporary restraining order a day later, on Aug. 4. In court filings, the agency alleges the operation caused at least $172.5 million in consumer injury or net revenues since at least 2016. In a public announcement, the FTC described the alleged haul as nearly $200 million.

According to the complaint, the scheme worked by intercepting consumers who were searching online for help with debts or creditors, often through paid Google search ads. The FTC alleges the defendants then falsely promised to remove negative items from credit reports and significantly improve credit scores. In some cases, the agency said, telemarketers impersonated debt collectors or creditors. The complaint also alleges the operation filed identity theft reports through IdentityTheft.gov without consumers’ knowledge in attempts to dispute legitimate debts, targeted military servicemembers dealing with debts tied to military-related creditors such as Army & Air Force Exchange Service and USAA, charged illegal upfront fees and then enrolled people in recurring charges through a negative-option system without clear disclosure or express informed consent. The FTC also alleges consumers were denied refunds.

The court’s order goes beyond pausing the business. It freezes assets, appoints a temporary receiver, gives the receiver immediate access to business premises and allows expedited discovery, a process that lets the FTC quickly gather records and testimony. Those steps are designed to preserve assets and evidence at an early stage of the case.

The allegations are especially significant because the Credit Repair Organizations Act bars credit-repair firms from charging consumers before promised services are performed. The FTC says the defendants used a nominal $1 charge to start the process, then collected larger fees, often hundreds of dollars, before providing services. The emergency measures also matter because they show the court found enough basis, at this preliminary stage, to impose extraordinary safeguards while the lawsuit moves forward.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement: “Using paid Google search ads to target and deceive vulnerable consumers, including military servicemembers, through falsely promising to improve their credit is egregious behavior that will not be tolerated by the FTC. We are pleased that the court shut down this illegal operation. The FTC is committed to protecting consumers from credit repair schemes that require up-front fees and fail to deliver promised results.”

The FTC alleges the defendants violated the FTC Act, the Credit Repair Organizations Act, the Telemarketing Sales Rule, the Gramm-Leach-Bliley Act, the Restore Online Shoppers’ Confidence Act and the Electronic Fund Transfer Act. The commission said its vote authorizing the complaint was 2-0.

The agency said it names five individual principals in the case: Alexander Brola, Liam Emery, Marko Petkovic, Joshua Curtis and David Naylor. The allegations involve thousands of consumers nationwide, according to the FTC. The agency noted that it files a complaint when it has reason to believe the law is being violated and that bringing the case is in the public interest. The claims remain allegations in an FTC complaint, and the case will be decided by the court.