The SEC settled civil injunctive action against a firm that allegedly made false claims related to its sales of products designed to teach how to trade options, including seminars, workshops and software that facilitates options trading.  Long Term-Short Term Inc., d/b/a BetterTrades, and Freddie Rick, the Company's co-founder and president, agreed to pay, respectively, civil penalties of $750,000 and $150,000, and agreed to continue enforcing internal compliance guidelines designed to prevent future violations. SEC Findings of Alleged Violations. The SEC alleged that, from at least 2007 and continuing through at least 2008, certain BetterTrades instructors falsely claimed to be highly successful options traders using the strategies taught by BetterTrades.  In marketing materials, defendants also claimed that certain Company instructors were successful, active traders. Yet, according to the SEC, the defendants acted recklessly in making these claims without verifying their accuracy, despite red flags that the claims were false - violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Exchange Act Rule 10b-5.  Further, certain company marketing materials claimed that Rick became wealthy through his options trading - which was not accurate because his wealth came primarily from Company operations.  It's further alleged Rick allowed infomercials to air that incorrectly implied that his wealth came from trading. SEC Determination of Fines and Sanctions. In determining to accept the defendants' settlement offers, the SEC took into account the defendants' voluntary remediation efforts.  The Company retained counsel to review how it promoted and sold its classes, products and services, and it adopted policies that set forth standards of behavior expected from instructors, including mandatory instructor training on Company policies and interpretive guidelines, collection of instructor trading records, and vetting of any instructor claims of trading success against trading records.  The Company also instituted policies and detailed guidelines regarding, among other things, review and revision of marketing materials, and required student claims of trading success to be vetted against trading records. The Company also took disciplinary actions against instructors who failed to adhere to Company policies. The Commission's settlements with the defendants are subject to the approval of the U.S. District Court for the Eastern District of Virginia. For further details, go to:   [SEC Litigation Release 22133, 10/19/11]