The Federal Trade Commission (FTC) has secured an early victory in its legal battle against Seek Capital and its CEO, Roy Ferman, after the U.S. Court for the Central District of California granted a preliminary injunction against the company.
The ruling prohibits Seek Capital from making false claims regarding small business loans or lines of credit and prevents the company from contacting any consumers whose information was obtained before February 20, 2025. The injunction is intended to prevent further harm to small business owners as the case proceeds to trial.
The FTC originally filed its complaint in November 2024, alleging that Seek Capital targeted new and aspiring small business owners with deceptive promises of securing business loans or lines of credit.
Instead of delivering on these promises, the company charged clients thousands of dollars to open personal credit cards in their names. According to the FTC, these fraudulent practices have cost small business owners over $37 million.
The district court found that the FTC was likely to succeed on all its claims and deemed the injunction necessary to prevent Seek Capital from continuing to collect payments from affected consumers. The court also noted that the company's deceptive practices warranted immediate intervention to mitigate further financial harm.