Seek Capital and its founder and CEO, Roy Ferman, have been permanently barred from offering business financing, debt relief, or credit repair services under a final court order resolving Federal Trade Commission allegations that the company deceived entrepreneurs seeking startup funding.
The ban follows a year-long legal battle that began in November 2024, when the FTC accused the California-based firm of luring new and aspiring small business owners with promises of loans and business lines of credit. Instead, according to the agency, Seek Capital charged clients thousands of dollars to open personal credit cards—often without the 0% interest terms the company advertised—costing customers millions and damaging their credit scores.
“Instead of offering businesses the financing they sought, Seek Capital took advantage of them and often left them in worse shape,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection. “Companies should be on notice that the FTC will take action to protect small businesses and entrepreneurs from deceptive claims and other unlawful conduct.”
Court Finds Widespread Deception
In September, a federal judge in the Central District of California granted most of the FTC’s request for summary judgment, finding that Seek Capital and Ferman misrepresented their relationships with lenders, the types of credit they could obtain, the availability of zero-percent APR terms, the timing of fees, and the impact of their services on customers’ credit scores.
The court also ruled that the company violated the Consumer Review Fairness Act by prohibiting customers from posting negative reviews and held Ferman personally liable for the violations.
According to court filings and FTC complaints, Seek Capital aggressively marketed itself as a “market leader in business loans” and claimed to offer fast access to “cold hard cash.” Telemarketers allegedly used high-pressure tactics, with some business owners describing the outreach as “incessant” and “harassing.” Once clients signed up, Seek Capital applied for multiple credit cards in their names without their knowledge or consent, then charged fees equal to 10% of the total credit obtained.
Many business owners first learned credit cards had been opened in their name when their credit scores dropped or when they received an invoice from Seek. Those who attempted to cancel—even before any applications were submitted—were hit with early termination fees up to $995, the FTC said.
The agency cited several small business owners who reported significant setbacks, including damaged credit and stalled expansion plans. “If I had known Seek would only apply for credit cards, I would have never signed up,” one entrepreneur said in a statement included in the complaint.
$48 Million Judgment, Permanent Restrictions
Under the final order, entered by the court on October 1, Seek Capital and Ferman face a $48.28 million monetary judgment. The amount is partially suspended due to the defendants’ inability to pay in full, but the entire judgment will become due if they are found to have misrepresented their finances.
The order permanently prohibits the defendants from marketing or offering business financing, credit repair, or debt relief services. It also bars them from making misrepresentations about their products, charging fees without informed consent, violating the Telemarketing Sales Rule, or restricting consumer reviews.
