A share trading software rip-off?

On Friday last week Moneyweb reported on a number of complainants that had been made against a company calling itself alternatively Cursu Taurorum or Tenacity Capital. The company is currently under investigation by the National Consumer Commission, while the Financial Services Board is also considering whether it may have contravened any financial services legislation.

The company allegedly contacts people to offer them a share trading product that will guarantee them 40% returns in six months. A number of people have told Moneyweb how the salespeople called them persistently until they finally agreed to a meeting.

The offering from Cursu Taurorum/Tenacity Capital is essentially two-fold: firstly, it includes a software package called Optimal Market Systems that provides technical and fundamental analysis on JSE-listed shares and derivatives; and secondly there is a monthly subscription service that supposedly includes daily share trading tips, a weekly newsletter and regular market updates.

The software costs R22 500. The ongoing subscription is another R275 per month.

Clients have however told Moneyweb that the monthly subscription service does not live up to its billing. They claim that there has been no weekly newsletter and the market data is simply what one could find on any financial news site.

The closest they get to receiving share trading tips is consensus analyst views on a selection of five counters. They receive nothing that could be said to guide any kind of active trading.

What does the software actually do?

As part of the deal, clients are also allegedly told that they will receive R5 000 to trade with. In some instances they claim that they are told that this money has been awarded to them by the JSE. However, these funds do not always materialise.

For a start, the software does not actually provide a trading platform. Moneyweb has evaluated the package and it is only an analytical tool with a built in simulation.

Herein is the first major contradiction in the sales pitch, because some users are apparently told that they will make enough money in the first six months to pay off the cost of the package. However, since all that they have access to is a simulation that offers no real returns, this is simply not possible.

In other cases, though, customers have been expressly told that the first six-month ‘trial period’ will only be a simulation. They are also informed that if they fail to make a 40% return on their trial portfolios, then they can return the software for a full refund.

However, this is couched in a raft of terms and conditions that are allegedly not properly explained to them. This includes having to make a minimum number of trades, ensuring that the programme is updated on a daily basis, that stop losses must be activated and that all purchases must conform to a certain “percentage break even point”, although it isn’t explained anywhere what this means.

Users contend that they are also not given training on how to do all of the things that they need to do to satisfy these requirements. Some have told Moneyweb that when they requested assistance, they are told to read the manual.

In one case, a user complained to the call centre that the updater was not working, but she was allegedly told that it wasn’t important. This meant however that she only had market data up to a week before she purchased the product and it never updated again after that. That effectively rendered the software useless.

Another client was never able to get the software to install on his computer. However, when he tried to return it he was told that because he had already opened it they could not accept it back and he would still have to pay the full purchase amount.

Lack of service

Moneyweb has also been told that there is little or no follow-up with clients after the software has been installed. Nothing is done to check on their progress or to discuss what happens after the six-month simulation trial period is over unless clients make contact themselves.

In some cases, however, Moneyweb has established that clients do have accounts opened for them with a local broker. The broker then takes over full responsibility for them.

It also appears that Cursu Taurorum does not automatically deposit the promised R5 000 into the trading accounts that are then opened either. It has been necessary for the broker to send requests to the company to pay over the amount.

Overall, consumers believe that Cursu Taurorum/Tenacity Capital is misrepresenting its offering. For an analytical tool, the software itself is also very dearly priced.

For instance, PSG is offering clients a technical analysis product for only a subscription of R169 per month. There are also many free resources on the internet, including those available on Moneyweb. 

Cursu Taurorum’s response 

When asked to respond to the issues highlighted in this article, Cursu Taurorum/Tenacity Capital opted to respond through its lawyers, Van der Merwe Incorporated. The letter from the company’s legal representative stated that:

“From the content of the article, we are unable to determine if there are indeed any complaints and if the article is purely based on an attempt to defame our client’s good name and reputation as no details of complaints are provided. Our client is willing to resolve any complaints against them in the event that they are aware of such complaints.”

It goes on to state that:

“The full content of this article is based on allegations of alleged consumers. It is unknown whether such consumers exist, alternatively has an agreement with our client, alternatively ever dealt with our client, and alternatively attempted to resolve the matter first with our client.”

Moneyweb is however in possession of written complaints from a number of unhappy clients, all of which have initially tried to resolve the matter with the company. In most cases, Moneyweb has also had sight of the contracts signed between the consumers and Cursu Taurorum/Tenacity Capital.

Some of the complainants claim that when they have approached the company they are simply put off and their complaints ignored. Those that have been heard have only been met with obfuscation and denials.

The fuller letter from Van der Merwe Incorporated can be accessed here: Cursu Taurorum response to article.

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