FTC charges New York financing companies allegedly engage in unfair collection practices

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The Federal Trade Commission (FTC) filed a complaint against two small-business financing companies based in New York for allegedly engaging in unfair business collection practices.

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The Commission also charged several of both companies’ owners and officers.

In the lawsuit, the FTC identified the defendants as RCG Advances LLC and Ram Capital Funding LLC. The companies’ owners and officers named in the lawsuit include Robert Giardina, Jonathan Braun, and Tzvi Reich.

FTC’s allegations against the defendants

The FTC alleged that RCG Advances and Ram Capital Funding together with their owners used deception and threats to seize the personal and business assets of small businesses, non-profits, religious organizations, and medical offices.

According to the Commission, the defendants have been engaging in illegal business practices since at least 2015. The defendants provide immediate funding in a specific amount to small businesses and other organizations (consumers) in exchange for an agreement to repay a higher amount from future revenues.