WASHINGTON, D.C. — A federal court has issued a preliminary injunction against Seek Capital and its founder and CEO, Roy Ferman, after allegations of deceptive practices targeting small business owners. This decision, secured by the Federal Trade Commission (FTC), halts specific operations of the company as litigation continues.
The injunction, granted by the U.S. Court for the Central District of California, prohibits Seek Capital from making false claims about securing small business loans or lines of credit. Additionally, the company is barred from contacting consumers whose information was obtained before February 20, 2025.
According to the FTC’s complaint, filed in November 2024, Seek Capital targeted entrepreneurs in search of financial resources to establish or grow their businesses. The company allegedly promised access to business loans and lines of credit but instead charged clients substantial fees for opening personal credit cards in their names. These deceptive practices have reportedly resulted in over $37 million in losses for small business owners.
The court’s decision to grant the FTC’s motion for a preliminary injunction reflects its assessment that the FTC is likely to succeed on all of its claims. The court found the requested relief necessary to prevent further harm. It noted that Seek Capital and Ferman were continuing to collect payments from those affected by the alleged scheme. The injunction aims to provide immediate protection to consumers while the case proceeds to trial.
The legal action stands as a significant effort by the FTC to curb fraudulent practices that exploit small business owners. FTC staff attorneys handling the case include Maya Sequeira, Katherine Worthman, and Laura Antonini from the Bureau of Consumer Protection.
The ruling reinforces the importance of protecting entrepreneurs from predatory schemes that could jeopardize their financial stability and business aspirations.
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