- 1 THE ISSUE
- 2 SEER BINARY’S ADVERTISEMENT
- 3 THE OUTCOME
- 4 WHAT DOES ALL OF THE ABOVE MEAN?
- 4.1 What is False Advertising?
- 4.2 What are the Proof Requirements?
- 4.2.1 Criteria 1: a false statement of fact has been made about the advertiser’s own or another person’s goods, services, or commercial activity;
- 4.2.2 Criteria 2: the statement either deceives or has the potential to deceive a substantial portion of its targeted audience;
- 4.2.3 Criteria 3: the deception is also likely to affect the purchasing decisions of its audience;
- 4.2.4 Criteria 4: the advertising involves goods or services in interstate commerce; and
- 4.2.5 Criteria 5: the deception has either resulted in or is likely to result in injury to the plaintiff. The most heavily weighed factor is the advertisement’s potential to injure a customer. The injury is usually attributed to money the consumer lost through a purchase that would not have been made had the advertisement not been misleading. False statements can be defined in two ways: those that are false on their face and those that are implicitly false.
- 5 CLAIM SUMMARY
The issue here is that Seer Binary advertised itself as a top notch binary options signals provider company that was ready to deliver a certain level of quality services based on the packages that the members purchased; but in its three months of operation from October 6, 2014 to January 6, 2015, Seer Binary’s performance has not come anywhere close to what it had advertised.
SEER BINARY’S ADVERTISEMENT
When the opportunity was first rolled out from August 2014 to right before it started trading in October 2014, its sales video made statements with visual slides that the “advanced and cutting edge” system would be providing “at least” a certain number of signals or trades per month for certain packages bought. The packages were named 1Star, 2Stars, 3Stars, 4Stars, 5Stars, and SVIP.
And so for example, as a 1Star package owner, the member would receive “at least” 50 trades per month; for a 5Stars package owner, the member would receive “at least” 200 trades per month; and for an SVIP package owner, the member would receive unlimited trades per month which can be inferred that the number of trades would be at least the 5Stars package and much more since SVIP is the package that would deliver the highest level of quality service.
The sales video that made the points above is below for your review:
In addition, Seer Binary also stated that it has partnered up with a preferred broker, GOptions.com, whom it has built a good relationship with to provide the trading platform and that the master traders who would be trading for Seer Binary have a success track record over the past two years of achieving over 70% success rate. This is a result of the master traders having a combined trading experience of over 20 years.
To draw in prospects even more, Seer Binary utilized an Excel spreadsheet calculator that shows the potential earnings that people can get based on the package that they purchased and the level of success that they would likely get since the master traders have a successful track record. Therefore, even if the success rate was just 60%, people were still going to be able to make “crazy money” as stated in Seer Binary’s sales video above.
Below is an image of the Excel spreadsheet calculator that was used as a sales tool to entice people to buy into Seer Binary’s opportunity. To get a copy of it, simply click on it to download.
Despite the typical income disclaimer that Seer Binary has on it’s Excel spreadsheet and other documents, all of the above exaggerated enticements lead the prospects to believe that the odds of winning would be on their side; therefore, it made sense to go ahead and invest in the opportunity. Consequently, hundreds of people signed up within a couple of months. About 150 people actually deposited money into GOptions to participate in the automatic tradings, and now we know that 68 of those 150 people purchased the SVIP package.
The problem, however, is that in the three months period that Seer Binary started trading from October 6, 2014 – January 6, 2014, nothing has come close to what Seer Binary advertised especially for SVIP package owners who paid $5,000 for unlimited monthly signals. Instead, Seer Binary had to continually tweak its “advanced and cutting edge” Autotrader Followig System (AFS), its compensation plan and sales video; and GOptions had exposed itself to be most likely a scam.
Below is the new sales video that Seer Binary put out after it had recruited the bulk of its members around the beginning of October 2014. You will see that the presentation had been tuned down from the first sales video; but by this time, a substantial number of people have already signed up believing that what they had signed up for was what had been presented in the first sales video.
And here are several additional things that occurred as a result of Seer Binary’s inability to deliver what it had advertised:
- When the tradings actually began, the AFS was unable to deliver consistent number of trades for the members; even though two members may both be SVIP, they both would get different numbers of signals. The time gap between when the master traders executed the trade and when the members’ accounts were actually triggered was as long as 15 minutes. This required continual reprogramming of the AFS. Eventually, the members were told that the gap had been reduced to as low as 3 seconds, but other issues also rose up which had to do with the expiry time for the trades; the expiry times would not trigger at the intended time. For example, the master trader may have intended the trade to expire at 9:00 AM, but the trade would actually end at 9:15 AM. Reasons for all this were given as being issues on Seer Binary, GOptions, and Spotoptions end; the reality is that no one really knows. Again, all of these problems does not reflect a top notch, “advance and cutting edge” system as originally advertised by Seer Binary.
- After many complaints from the members due to Seer Binary’s poor performance, Seer Binary started making changes to its compensation plan to read differently from when it first got people in. Different versions of the compensation plan and even terms and conditions were revised to try to cover this up. The changes had to do with the wordings. Originally, Seer Binary made statements such as “at least” a certain number of signals would be provided, but it changed to statements such as “about”, “on average”, or “up to” so and so. While Seer Binary is in its own right to make changes as the company progresses, this, however, does not change the fact that Seer Binary had brought people into the business under an exaggerated enticement of its services or false advertising. People would not have signed up for a system that performs so poorly as evident in its first three months of operation. No one will pay $5,000 for such low quality of service.
- GOptions initially did not give members problems to withdraw their money, but shortly after people started making withdraws, it deliberately would cancel people’s requests, come up with bogus reasons for the cancelations, blame Seer Binary and even Seer Binary’s CEO (Long Yang), and so forth. An e-mail communication between Daniel Ganes who is an account manager with GOptions and GOptions’ CEO was sent by mistake to a member which clearly showed that GOptions had no intention of being fair to us. Also, Daniel Ganes himself stated, “I am a greedy smuck, OK and I am in it for the money. I don’t care if people love me; I don’t care if people hate me; I really don’t care.” The audio is here:
Furthermore, from the members’ research, a video that talked in general about the dirty secrets of overseas binary options brokers verified and reaffirmed many of the members suspicions all of which shows that GOptions is likely just a scammer. Here is an excerpt of that video:
Below is a summary of the results of Seer Binary’s trading record from October 6, 2014 – January 6, 2014 based on my account’s performance which followed the master trader’s account for the whole duration of the said period. (Click on the image for an enlargement.)
One can easily see that the success rate of 49% is no where near the advertised success rate of 70% and above. The monthly average number of trades has been only at the 2Stars level being at 88. It makes absolutely no sense for someone to pay $5,000 for something that really was only of a $500 or less value. As for my earnings, we can see that it had been wiped out as only $6 is left out of the $1000 originally deposited. With only $6, my account won’t trigger anymore since the minimum required is $25.
WHAT DOES ALL OF THE ABOVE MEAN?
While I’m not an attorney, my conclusion is that false advertising had been committed by Seer Binary.
What is False Advertising?
“Any advertising or promotion that misrepresents the nature, characteristics, qualities or geographic origin of goods, services or commercial activities” (Lanham Act, 15 U.S.C.A. § 1125(a)).
What are the Proof Requirements?
To establish that an advertisement is false, a plaintiff must prove five things:
- a false statement of fact has been made about the advertiser’s own or another person’s goods, services, or commercial activity;
- the statement either deceives or has the potential to deceive a substantial portion of its targeted audience;
- the deception is also likely to affect the purchasing decisions of its audience;
- the advertising involves goods or services in interstate commerce; and
- the deception has either resulted in or is likely to result in injury to the plaintiff. The most heavily weighed factor is the advertisement’s potential to injure a customer. The injury is usually attributed to money the consumer lost through a purchase that would not have been made had the advertisement not been misleading. False statements can be defined in two ways: those that are false on their face and those that are implicitly false.
Criteria 1: a false statement of fact has been made about the advertiser’s own or another person’s goods, services, or commercial activity;
Below are various quotes and facts of Seer Binary’s statements from its sales videos and written documents regarding what it can offer.
- “We have the knowledge, expertise, and the tools to help you make money in this market. Our experts will analyze the trends and when it’s time to get into the market, we will get you in with us at the same time using our advanced and cutting edge Autotrade Copying System.”
- All you have to do is:
- Open a trading account with just $500
- Trading 5% of your account balance
- Average of 50 trades per month (1Star)
- The payout for 10-60 min is at least about 80% – 85%
- Our winning success ratio averaged about 70% – 80%
- Even if we drop to 60% winning success, you still make money!
- No selling, No inventory, No recruiting required
- “Here our packages are exclusively for our members only. Everyone will start as a member and that will give you at least 50 free signals/month. Once you upgrade to 2Stars, you will get 80 signals per month; 3Stars, 120 signals/month; 4Stars 160 signals/month; and 5Stars will give you at least 200 signals/month.”
- “As an SVIP member, you will benefit the following: UNLIMITED SIGNALS – This could result in thousands of dollars per day depending on the amount you set on your account. Remember, you have full control of how much you want the system to trade once the system receives the signal. COMPANY BONUS – 5% of Gross Sales from any of the five packages will be shared evenly to 300 SVIP members – this huge.”
- “We have a team of professional traders with an accumulation of 25 years of experience and excellent results over the last two years.”
Seer Binary’s track record as already presented in the first part of this posting clearly shows that Seer Binary has not been able to deliver anything close to what it had advertised.
Criteria 2: the statement either deceives or has the potential to deceive a substantial portion of its targeted audience;
The statements have made people felt that their chances of winning would be so much higher than their chances of losing. People have been lead to believe this by Seer Binary’s claim of having expert traders who supposedly have successful track records of over 70% success rate and over 25 years cumulative experience of trading. The results after three months in operation have not come close to these claims. The success rate has been at a mere 49% which does not reflect that the traders are experts. Also, sometime in November 2014, Seer Binary had replaced the original master traders with “in house” master traders that Seer Binary refused to provide any other information about.
Criteria 3: the deception is also likely to affect the purchasing decisions of its audience;
People have purchased the SVIP package at $5,000 and deposited substantial amounts of money into GOptions because they have been lead to believe that the number of signals or trades that they would get would be more than 200 trades monthly since the 5Star package is already going to be giving them 200 trades.
Criteria 4: the advertising involves goods or services in interstate commerce; and
The services do involve interstate commerce. In fact, it is has become international. A team had been formed in Nigeria.
Criteria 5: the deception has either resulted in or is likely to result in injury to the plaintiff. The most heavily weighed factor is the advertisement’s potential to injure a customer. The injury is usually attributed to money the consumer lost through a purchase that would not have been made had the advertisement not been misleading. False statements can be defined in two ways: those that are false on their face and those that are implicitly false.
People would not have spent $5,000 on an SVIP package if they were not lead to believe that they would be receiving more than 200 trades per month and that they would be receiving trading services from expert traders who has more than 20 years of experience with a track record of 70% – 80% success rate.
The results so far from when trading first started on 10/6/14 to 1/6/15 is below:
|Total # of Trades||293|
|Beginning Balance (10/6/14)||$ 1,000.00|
|Current Balance (1/6/15)||$ 6.00|
|Projected Weekly Trade||20.35|
|Projected Monthly Trade||88.17|
The statistics show that Seer Binary has traded 293 times in 72 trading days of three months (assuming that it traded only 5 days a week). With just 293, it works out to be an average of 88.17 trades per month. This level of service is only a 2Star package. The success rate has been at only 49% which is substantially less than the claim of 70% – 80% success rate. Consequently, many people have loss all of their money or they are now very close to losing everything. It has been only three months. Even if people want to continue, they can’t anymore because they do not have the capital to deposit more into GOptions. Their participation in Seer Binary is essentially over due to Seer Binary’s poor performance which highlights that Seer Binary had committed false advertising.
False advertising had been committed by Seer Binary and therefore, members should be entitled to a refund of their investments. Everything that we’ve seen in the three months that Seer Binary has been in operation shows that it never had an “advanced and cutting edge” technology with expert traders who have success track records. Seer Binary never did forged a strong and cooperative relationship with GOptions.
More than anything, what had transpired is the reality that people have been taken advantaged of and lured into this opportunity to be “guinea pigs” to test out a brand new and unproven system which was falsely advertised as being “advance and cutting edge” and ready to deliver impressive results. Consequently, practically every member has lost money with the exception of the CEO – Long Yang. Seer Binary had taken advantage of people who knew nothing about trading.
All these things have occurred simply due to false advertising on the part of Seer Binary. Members should be entitled to a refund of their investments.
About the Author: Yang Xiong
I, Yang Xiong, wrote this posting out of necessity and the need to do what is right. Because I was mislead by Seer Binary’s advertisement, I had worked hard since I was first introduced to Seer Binary to help build it as evidenced by my rank of being the number one networker of the company. I’ve created video trainings which Seer Binary had adopted and used as part of their corporate training. I’ve initially met and communicated with Long Yang, CEO regularly to help shape the company. In the process, as issues came up from the membership, I had made suggestions and urged Long numerous times to listen to the members suggestions and do the right things.
I had done all these things with the thought that Seer Binary would work in partnership with its membership base to change lives around the world; but as time passed and as issues came up, Seer Binary turned its back on the members by using delay tactics to meeting requests, explaining away important issues as if the members do not know what they are talking about, and using other methods to try to keep the membership quiet and disempowered; this is wrong. Despite my numerous attempts to get Long to do the right things for the membership, he continued to disregard the requests. This gave me no other option and at the urging of members, I had to tell it as it is in this posting.
The reader is encouraged to provide feedback and thoughts below as we may see things differently so that all sides of the story may be heard.