Seek Capital, LLC

The FTC alleged that Seek Capital advertised business loans or credit lines but opened credit cards and charged fees instead. A court found misrepresentations and law violations; a final order imposed permanent bans and a partially suspended judgment.

1Official action

$37MAlleged consumer losses

Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.

Identity

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Registrations: FTC v. Seek Capital, LLC and Roy Ferman (U.S. District Court for the Central District of California, 2024)
Locations: California
Jurisdictions: United States (federal)

Final order banned business financing services

The Federal Trade Commission alleged that Seek Capital targeted new and aspiring business owners seeking loans or lines of credit. Its advertising presented the company as a source of business financing and promised access to cash. According to the complaint, Seek instead applied for multiple credit cards, often personal cards in the owner’s name, and charged 10 percent of the total credit amount. The FTC said the conduct cost small business owners more than $37 million.

The complaint also alleged that owners did not see or approve the credit card applications, and that some first learned about them through credit score alerts, invoices, or bank letters. Seek allegedly charged an early termination fee of as much as $995 and distorted online ratings by pressuring clients for five-star reviews, deleting negative reviews, and restricting criticism in its contracts.

A preliminary injunction restricted Seek’s claims and consumer contacts in February 2025. In September, the court granted most of the FTC’s summary judgment request. The court found that Seek Capital and CEO Roy Ferman made several financing and fee misrepresentations, violated the FTC Act and Telemarketing Sales Rule, and used contracts that violated the Consumer Review Fairness Act.

The final order permanently banned Seek and Ferman from business financing, debt relief, and credit repair services. It imposed a $48,280,328 monetary judgment, suspended in part because of their inability to pay the full amount.

What is not established

The final release does not state the portion of the judgment that was immediately payable.

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