The Federal Trade Commission (FTC) has achieved an initial victory in its legal battle against Seek Capital and its founder and CEO, Roy Ferman. The U.S. Court for the Central District of California granted the FTC's motion for a preliminary injunction.
With this injunction, Seek Capital is barred from making misleading statements about small business loans or lines of credit. Additionally, the company cannot contact consumers whose information was acquired before February 20, 2025.
The FTC filed a complaint in November 2024, alleging that Seek Capital misled new and aspiring small business owners seeking loans or lines of credit. The company reportedly charged clients significant fees to open credit cards under their names instead of securing business loans or lines of credit as advertised. These practices allegedly cost small business owners over $37 million.
On February 20, 2025, the district court ruled in favor of the FTC's motion for a preliminary injunction, indicating that the FTC was likely to prevail on all claims. The court fully endorsed the FTC's proposed order and deemed it necessary to prevent further harm while awaiting trial. The court noted that Seek Capital and Ferman continued to pursue payments from consumers affected by their deceptive scheme.
The case is being handled by staff attorneys Maya Sequeira, Katherine Worthman, and Laura Antonini from the FTC’s Bureau of Consumer Protection.
The Federal Trade Commission aims to promote competition while protecting and educating consumers. It advises that it will never demand money, make threats, instruct you to transfer money, or promise prizes. More information on consumer topics can be found at consumer.ftc.gov, and fraud can be reported at ReportFraud.ftc.gov. The public can also follow the FTC on social media for updates.
