- The FTC has reached a settlement with merchant cash advance company RCG Advances, LLC and its owner, Robert L. Giardina (collectively, “RCG”) to resolve allegations that RCG deceived and threatened small businesses and their owners to whom it provided funding, in violation of the FTC Act and the Gramm-Leach-Bliley Act.
- According to the FTC, RCG allegedly deceived consumers about the terms of cash advances that it provided, including personal guarantees; forced consumers and businesses to sign confessions of judgment in cases of alleged default; provided less funding than promised; and threatened consumers and businesses with violence and false accusations of criminal conduct.
- Under the terms of the Stipulated Order, RBG is permanently banned from the merchant cash advance industry, must pay a $1.5 million monetary penalty to the FTC and an additional $1.2 million for consumer refunds, and must vacate judgments and liens against former customers, among other things.