Two Southland Firms, 18 Others Accused of Credit Repair Deception

In a new crackdown on credit repair schemes, the federal government and several states have charged two Southern California companies and 18 others nationwide with making false claims that they can repair consumers’ bad credit ratings.

In complaints filed Thursday in federal and state courts, the Federal Trade Commission and state attorneys general contend that the companies violated the law by making deceptive claims about improving customers’ credit ratings by removing derogatory information from credit files for a fee.

The FTC won orders to temporarily halt Brian Dale Prater of Los Alamitos from making deceptive claims and otherwise operating illegally. The agency also obtained a court order freezing his assets.

The agency also sued Keith H. Gill and Richard Murkey, both of Woodland Hills, from operating a similar business through advertisements, referrals and an hour-long weekly radio broadcast.

Neither Gill, a lawyer, nor Murkey, who the FTC said resigned as a lawyer, could be reached for comment. They face a court hearing next Wednesday.

Prater, reached at his office, wouldn’t comment. His lawyer, David Gregory of Riverside said: “At this point, the situation is difficult, to say the least.”