West Warwick company charged with falsely claiming to be an SBA lender

WEST WARWICK – The Federal Trade Commission has filed a complaint against Ponte Investments LLC, alleging that the company has falsely claimed to be a Small Business Administration lender for a federal coronavirus-relief lending program.

The company’s owner, managing member and president, John C. Ponte, was named in the FTC’s complaint.

The complaint was filed in U.S. District Court in Rhode Island. The company has been registered to do business in Rhode Island under the ficticious name SBA Loan Program.com since 2015, according to records from the R.I. Department of State. Ponte Investments LLC registered to do business in Rhode Island in 2011.

The FTC has asked a federal court to immediately halt the company’s misrepresentations.

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The company, which does business as SBA Loan Program and SBALoanProgram.com, was marketing itself as an approved lender for the SBA’s Paycheck Protection Program.

“In this time of incredible challenge for all Americans, it is disturbing to see these defendants preying on desperate businesses looking for ways to keep their employees financially secure,” said FTC Chairman Joe Simons. “The FTC is on guard, and we will act to protect consumers from scammers looking to take advantage of this crisis.”

The complaint alleged the company “preys on small businesses seeking financial relief from the devastating effect of the coronavirus pandemic.”

The complaint also alleged that the company collected “hundreds, if not thousands” of applications for PPP loans.

The FTC alleged that the company would solicit applications for the PPP program from small-business owners via telephone and email, as well as through their website.

The FTC said that the website had a popup that read, “We are a direct lender for the PPP loan program.”

A SCREENSHOT of the website of a West Warwick-based company Ponte Investments LLC, which was charged by the FTC with allegedly falsely claiming to be an SBA lender and soliciting loan applications for the SBA's Paycheck Protection Program, of which it is not an authorized lender. ./ COURTESY FEDERAL TRADE COMMISSION
A SCREENSHOT of the website of West Warwick-based Ponte Investments LLC, which was charged by the FTC with allegedly falsely claiming to be an SBA lender and soliciting loan applications for the SBA’s Paycheck Protection Program, of which it is not an authorized lender. / COURTESY FEDERAL TRADE COMMISSION

The FTC described the company site as having language in faint gray typface against a white backdrop that said “We are not the US Government, If [sic] you wish to apply for a Disaster Relief Loan follow this link to the SBA website www.sba.gov/disaster. The Paycheck Protection Program is not provided by the SBA.” The complaint also noted that, “ Even if a consumer located this text, the language does not disclose that SBA Loan Program is not authorized to make PPP loans.”

The FTC said that the SBA sent the company a cease-and-desist letter on April 10 but that the company allegedly continued to claim it would make PPP loans and encouraged consumers to submit applications.

The FTC said that because actual PPP funding has been capped out, “SBA Loan Program’s victims thus continue to suffer significant economic injury, including further jeopardizing employee jobs and potentially even losing their entire businesses.”

The FTC has charged the company with a count of misrepresentation about loans and a count of misrepresentations concerning government status.

In its filing, the FTC asked the court to order the defendants to immediately stop representing themselves as either associated with a federal agency or an authorized SBA lender.

The FTC said also indicated that it believes the acts contributed to consumer injury and that the FTc was seeking a court to grant injunctive and other reliefs to halt and redress violations of laws overseen by the FTC.

The charges say that the court may award ancillary relief, including rescission or reformation of contracts, restitution, the refund monies paid, and disgorgement of ill-gotten monies to prevent and remedy any violation of any provision of law enforce by the FTC.

The website was still active as of Friday afternoon, with advertisements that the company is still accepting PPP loan applications and that one of the company’s loan programs was backed by the SBA.

A SCREENSHOT from Ponte Investment LLC’s website as of Friday afternoon.