The Federal Trade Commission secured an initial win in its case against Seek Capital and the company’s founder and CEO, Roy Ferman, after the U.S. Court for the Central District of California granted the FTC’s motion for a preliminary injunction.
Under the preliminary injunction granted by the district court, Seek Capital is prohibited from making false claims related to small business loans or lines of credit and is forbidden from contacting any consumers whose information the company obtained before February 20, 2025.
According to the FTC’s complaint filed in November 2024, Seek Capital targets new and aspiring small business owners looking for loans or lines of credit to open or grow their businesses. The company falsely advertises that it can secure business loans or lines of credit and instead charges clients thousands of dollars simply to open credit cards in the owners’ names. These actions have cost small business owners more than $37 million.
The district court granted the FTC’s motion for a preliminary injunction on February 20, 2025, finding that the FTC was likely to succeed on the merits of all its claims. The court entered the FTC’s proposed order in full and found that the requested relief was necessary and appropriate given that Seek Capital and Ferman were continuing to collect on invoices to consumers who “fell victim to their deceptive scheme.” The court found that the injunction was necessary to mitigate harm pending trial.
The staff attorneys on this matter are Maya Sequeira, Katherine Worthman, and Laura Antonini of the FTC’s Bureau of Consumer Protection.