A federal judge has issued a preliminary injunction against Seek Capital and its founder and CEO, Roy Ferman, barring the company from making false claims and forbidding the company from contacting any consumers whose information the company obtained before February 20, 2025.
U.S. District Judge G. Gary Klausner of the Central District of California, issued the injunction at the request of the FTC.
The FTC filed a complaint against Seek Capital and Ferman, alleging that the company operated a bogus business finance scheme that cost small business owners more than $37 million. The FTC alleged violations of the FTC Act, Telemarketing and Consumer Fraud and Abuse Prevention Act, Telemarketing Sales Rule, and Consumer Review Fairness Act of 2016.
The FTC said that Seek offered to provide sources of funding to small businesses to make payroll and pay other ongoing expenses. Seek’s ads called the company “the market leader in business loans for small businesses” and the company’s website advertised the “Best Startup Business Loans of 2024,” according to the complaint.
The FTC alleged that when business owners expressed an interest in Seek’s products, telemarketers used high pressure sales tactics. Once business owners signed a contract, Seek began applying for numerous credit cards on their behalf, the FTC said. Seek then charged the business owners 10% of the total credit amount on the cards issued. Business owners never saw or approved any credit card applications that Seek submitted on their behalf.
If a business owner tried to cancel their agreement with Seek–even before Seek had submitted a single application on the business owner’s behalf– Seek charged them an early termination fee of as much as $995, according to the complaint.