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9th U.S. Circuit Court of Appeals

Aug. 11, 2025

9th Circuit upholds $243M judgment against disbarred attorney in student loan fraud case

A federal appeals court has affirmed a $243 million order against former California lawyer James Wen, rejecting his Eighth Amendment challenge and upholding restitution and civil penalties for his role in a nationwide student loan debt relief scheme that defrauded thousands of borrowers.

A 9th U.S. Circuit Court of Appeals panel has affirmed a $243 million order against a disbarred California attorney awarding restitution and civil penalties to the government for his role with several companies found liable for a student loan fraud.

The per curiam panel on Thursday affirmed a ruling by U.S. District Judge Michael W. Fitzgerald of Los Angeles in favor of the Consumer Financial Protection Bureau, the Los Angeles city attorney's office, and two other states.

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