Okay, found 'em. Bear in mind I might be on completely the wrong track here, but things just started adding up to PublishAmerica in my head.
The company is Koboca Publishing.com/. The site is horrible and hasn't been updated in a while, by the looks of it, and the forums are empty (only 12 registered users), so I don't know what to make of it.
In the "About" section the first sentence is "Koboca Publishing is a Traditional Publisher". That phrase was allegedly coined by PA although I realize others have picked up on it. They pay no "upfront royalties" ("advance"?). They're releasing 17 titles this year and are currently closed to submissions. They are located in Tampa, Florida.
Like I said, I could be completely wrong about this, but I don't understand how this writer I know could get an offer to publish from them when he submitted to PA. Why would PA refuse him unless they were associated with this site? However... it also looks like it might just be a publishing company set up to self-publish the guy who wrote two of the four books currently in the store... in which case, I apologize for associating Koboca with PA.
The site is still really ugly, though!