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UNITED STATES DISTRICT COURT

DISTRICT OF RHODE ISLAND

 

FEDERAL TRADE COMMISSION, Case No. ____________ 

Plaintiff, COMPLAINT FOR PERMANENT 

INJUNCTION AND OTHER 

 v. EQUITABLE RELIEF

PONTE INVESTMENTS, LLC, a limited liability 

company, also d/b/a SBA LOAN PROGRAM and 

d/b/a SBA LOAN PROGRAM.com, and

JOHN C. PONTE, individually and as an officer 

of PONTE INVESTMENTS, LLC,

Defendants.

Plaintiff, the Federal Trade Commission (“FTC”), for its Complaint alleges:

1. The FTC brings this action under Section 13(b) of the Federal Trade Commission 

Act (“FTC Act”), 15 U.S.C. § 53(b) to obtain temporary, preliminary, and permanent injunctive 

relief, rescission or reformation of contracts, restitution, the refund of monies paid, disgorgement 

of ill-gotten monies, and other equitable relief for Defendants’ acts or practices in violation of 

Section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

JURISDICTION AND VENUE

2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a), 

and 1345. 

3. Venue is proper in this District under 28 U.S.C. § 1391(b)(1), (b)(2), and (c)(2),

and 15 U.S.C. § 53(b). 

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PLAINTIFF

4. The FTC is an independent agency of the United States Government created by 

statute. 15 U.S.C. §§ 41–58. The FTC enforces Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a), which prohibits unfair or deceptive acts or practices in or affecting commerce. 

5. The FTC is authorized to initiate federal district court proceedings, by its own 

attorneys, to enjoin violations of the FTC Act and to secure such equitable relief as may be 

appropriate in each case, including rescission or reformation of contracts, restitution, the refund 

of monies paid, and the disgorgement of ill-gotten monies. 15 U.S.C. § 53(b).

DEFENDANTS

6. Defendant Ponte Investments, LLC, also doing business as SBA Loan Program 

and SBA Loan Program.com, is a Rhode Island limited liability company with its principal place 

of business at 1300 Division Road, Suite 305, West Warwick, RI 02893. SBA Loan Program

transacts or has transacted business in this District and throughout the United States.

7. Defendant John C. Ponte, is the owner, managing member, and President of SBA 

Loan Program. At all times material to this Complaint, acting alone or in concert with others, 

he has formulated, directed, controlled, had the authority to control, or participated in the acts 

and practices of SBA Loan Program, including the acts and practices set forth in this Complaint. 

Defendant Ponte resides in this District and, in connection with the matters alleged herein, 

transacts or has transacted business in this District and throughout the United States.

COMMERCE

8. At all times material to this Complaint, Defendants Ponte Investments, LLC, also 

doing business as SBA Loan Program and SBA Loan Program.com and John C. Ponte 

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(hereinafter Defendants or SBA Loan Program) have maintained a substantial course of trade in 

or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act, 15 U.S.C. § 44.

DEFENDANTS’ BUSINESS ACTIVITIES

9. SBA Loan Program preys on small businesses seeking financial relief from the 

devastating effects of the coronavirus pandemic. Small businesses, which typically cannot 

survive less than a month without incoming revenue, have particularly felt the damaging effects 

of the pandemic. These businesses have been struggling to retain employees and keep their 

doors open.

10. SBA Loan Program claims to make funds available to small businesses through

federal legislation creating a new SBA loan program, but Defendants are not authorized to make 

and approve such loans. SBA Loan Program is not affiliated with the true SBA loan program, 

or with the SBA.

Background on Federal Legislation on Small Business Relief

11. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), P.L. 

116-136, was enacted to provide immediate assistance to individuals, families, and businesses 

affected by the Proclamation on Declaring a National Emergency Concerning the Novel 

Coronavirus Disease (COVID-19) Outbreak. Under the CARES Act, eligible small businesses 

can obtain loans under a new, temporary SBA loan program, also called the Paycheck Protection 

Program (“PPP”). The loans can only be made by lenders authorized by the SBA.

12. Consumer demand for these loans has been extremely high and unprecedented. 

As of mid-day Thursday, April 16, 2020 at least 1.6 million PPP loans already have been 

approved, accounting for the full $349 billion Congress has presently allotted to this program. 

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SBA is authorized to guarantee these loans through June 30, 2020 or until allotted funds are 

exhausted.

13. SBA’s website, sba.gov, provides a PPP borrower application form.

SBA Loan Program’s Deceptive Claims

14. SBA Loan Program has solicited applications for the PPP program from desperate 

small business owners, targeting them via telephone and e-mail, as well as through the website 

sbaloanprogram.com.

15. For example, one small business consumer in Maine received a call from an SBA 

Loan Program representative who claimed to be calling from the SBA. The representative

informed the consumer that SBA Loan Program was working with that consumer’s bank and 

urged the consumer to apply immediately because the PPP program had limited funds that would 

run out.

16. A second representative followed up with the consumer by e-mail, claiming: “We 

are the SBALoanProgram.com and as mandated by the SBA, getting approved is easier than 

ever!”

17. SBA Loan Program also lures consumers through the website, 

sbaloanprogram.com. The sbaloanprogram.com website immediately triggers a pop-up screen 

that states in large, bold font, “CARES Act Paycheck Protection Program.” Right below that,

this pop-up also at times has represented in all caps “WE ARE A DIRECT LENDER FOR THE 

PPP LOAN PROGRAM!” 

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A true and correct copy of the webpage is attached as Exhibit A.

18. The pop-up screen then invites consumers to “Apply Here.” Clicking on “Apply

Here” brings consumers to an online application that again prominently touts “CARES Act

Paycheck Protection Program” and at times has reiterated to applying consumers “We are a 

Direct Lender for the Paycheck Protection Program”. 

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CARES Act Paycheck Protection Program 

m 

WE ARE A DIRECT LENDER FOR THE PPP LOAN PROGRAM! 

Paycheck Protection Program questions? Can't get your bank to answer the phone? Get the personal attention 

you need. Our staff are here to help. 

On March 27, 2020, the CARES Act was signed into law making the SBA Paycheck Protection Program disaster loan available to small 

business owners 

Program highlights are 

No Collateral 

No Personal Guaranty 

No Fees 

No SBA Guamtty Fees 

For answers to frequently asked questions click HERE If you are ready to begin the application process, Apply 

Here. 
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A true and correct copy of the webpage is attached as Exhibit B. 

19. SBA Loan Program further represents, “The Paycheck Protection Program is 

being processed through lenders across the country participating in this program. No fee, No 

collateral, and No personal guaranty required. Lending is at a fixed 1.00% interest rate for two 

years and the SBA guaranty fee is waived. Apply now!” Id.

20. SBA Loan Program also has represented to some applying consumers that “[w]e 

are currently offering stimulus relief funding under the Economic Security Act (Cares Act).” 

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BA ~~AN ,..

•. ~PROGRAM o division of Ponte Investments, llC 

Call Us 888-982-8380 

CARES Act Paycheck Protection 

Program 

B 
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A true and correct copy of the webpage is attached as Exhibit C.

21. At the bottom of the page beyond the “Submit” button, small-print text, in faint 

grey typeface against a white backdrop, states: “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.” 

Exhibits B & C. Even if a consumer located this text, the language does not disclose that SBA 

Loan Program is not authorized to make PPP loans. 

22. SBA Loan Program, however, is not an SBA-authorized lender. 

23. Indeed, SBA issued a cease and desist letter to SBA Loan Program on April 10, 

2020, stating “SBA does not have any record” that SBA Loan Program “is a participating lender 

and SBA believes this assertion to be false.”

24. Nevertheless, SBA Loan Program has continued to claim that it will make PPP 

loans and has encouraged consumers to submit applications. 

25. As part of this scheme, SBA Loan Program has collected hundreds, if not 

thousands, of applications for PPP loans that it has not made. Meanwhile, as of April 16, at 

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We are currently offering stimulus relief funding 

under the Economic Security Act (Cares Act). No 

collateral or personal guaranty required. Lending is 

at a fixed 4% interest rate and the SBA guaranty 

fee is waived. Apply now for same-day-ildapproval. .. 
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least 1.6 million small businesses that applied through authorized lenders have received $349 

billion in relief, and the program has hit its current funding cap.

26. Struggling small businesses who have applied through SBA Loan Program

instead of through actual SBA loan program lenders have not received PPP loans, while small 

businesses who have applied through these lenders have exhausted the majority of the allotted 

CARES Act funds available for PPP loans. SBA Loan Program’s victims thus continue to 

suffer significant economic injury, including further jeopardizing employee jobs and potentially 

even losing their entire businesses. 

27. Based on the facts and violations of law alleged in this Complaint, the FTC has 

reason to believe that Defendants are violating or are about to violate laws enforced by the 

Commission. 

VIOLATIONS OF THE FTC ACT

28. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or deceptive acts 

or practices in or affecting commerce.”

29. Misrepresentations or deceptive omissions of material fact constitute deceptive 

acts or practices prohibited by Section 5(a) of the FTC Act.

Count I

Misrepresentations About Loans

30. In numerous instances in connection with the advertising, marketing, promotion, 

or offering of PPP loans, including through the means described in Paragraphs 14-21, 

Defendants have represented, directly or indirectly, expressly or by implication, that Defendants 

are authorized to make PPP loans or to otherwise accept or process PPP loan applications.

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31. In truth and in fact, in numerous instances in which Defendants have made the 

representations set forth in Paragraph 30, Defendants are not authorized to make PPP loans.

32. Therefore, Defendants’ representations as set forth in Paragraph 30 are false and 

misleading and constitute deceptive acts or practices in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a).

Count II

Misrepresentations Concerning Government Status

33. In numerous instances in connection with the advertising, marketing, promotion,

or offering of PPP loans, including through the means described in Paragraphs 14-21, 

Defendants have represented, directly or indirectly, expressly or by implication, that Defendants 

are the United States Small Business Administration, or are affiliated or otherwise associated 

with, or endorsed, sponsored, or approved by the United States Small Business Administration.

34. In truth and in fact, in numerous instances in which Defendants have made the 

representations set forth in Paragraph 33, Defendants are not the United States Small Business 

Administration, and are not affiliated or otherwise associated with, or endorsed, sponsored, or 

approved by the United States Small Business Administration.

35. Therefore, Defendants’ representations as set forth in Paragraph 33 are false and

misleading and constitute deceptive acts or practices in violation of Section 5(a) of the FTC Act, 

15 U.S.C. § 45(a).

CONSUMER INJURY

36. Consumers are suffering, have suffered, and will continue to suffer substantial 

injury as a result of Defendants’ violations of the FTC Act. In addition, Defendants have been 

unjustly enriched as a result of their unlawful acts or practices. Absent injunctive relief by this 

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Court, Defendants are likely to continue to injure consumers, reap unjust enrichment, and harm 

the public interest. 

THIS COURT’S POWER TO GRANT RELIEF

37. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court to grant 

injunctive and such other relief as the Court may deem appropriate to halt and redress violations

of any provision of law enforced by the FTC. The Court, in the exercise of its equitable 

jurisdiction, may award ancillary relief, including rescission or reformation of contracts, 

restitution, the refund of monies paid, and the disgorgement of ill-gotten monies, to prevent and 

remedy any violation of any provision of law enforced by the FTC.

PRAYER FOR RELIEF

Wherefore, Plaintiff FTC, pursuant to Section 13(b) of the FTC Act, 15 U.S.C. § 53(b),

and the Court’s own equitable powers, requests that the Court:

A. Award Plaintiff such preliminary injunctive and ancillary relief as may be 

necessary to avert the likelihood of consumer injury during the pendency of this action and to 

preserve the possibility of effective final relief, including, but not limited to, a temporary and 

preliminary injunction;

B. Enter a permanent injunction to prevent future violations of the FTC Act by 

Defendants;

C. Award such relief as the Court finds necessary to redress injury to consumers 

resulting from Defendants’ violations of the FTC Act, including rescission or reformation of 

contracts, restitution, the refund of monies paid, and the disgorgement of ill-gotten monies; and

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D. Award Plaintiff the costs of bringing this action, as well as such other and 

additional relief as the Court may determine to be just and proper. 

 Respectfully submitted,

 ALDEN F. ABBOTT

General Counsel

Dated: April 17, 2020 /s/ Thomas J. Widor

 THOMAS J. WIDOR

 (DC Bar No. 490184) 

 SANYA SHAHRASBI

 (DC Bar No. 1671001) 

 DANIEL DWYER

 (CA Bar No. 286701) 

 

 Federal Trade Commission

 600 Pennsylvania Ave., NW, CC-10232

 Washington, DC 20580

 (202) 326-3039 (Widor) 

 (202) 326-2709 (Shahrasbi) 

 (202) 326-2957 (Dwyer) 

 twidor@ftc.gov

 sshahrasbi@ftc.gov

 ddwyer@ftc.gov

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