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The U.S. Court of Appeals for the Ninth Circuit has upheld a district court ruling requiring the direct marketers of “Seasilver”, an alleged phony cure-all, to pay nearly $120 million for failing to pay $3 million in consumer redress, according to the Federal Trade Commission.

The decision, issued on April 10, affirmed a district court order requiring Jason and Bela Berkes, Seasilver, USA, Inc., and Americaloe Inc., to pay almost $120 million under an agreement with the FTC.

The March 2004 order barred them from making false or misleading claims and included a $120 million judgment that would be suspended if they paid $3 million within a specified time. The defendants did not meet the required payment terms, and in June, 2006 a district court granted the FTC’s request to enforce the stipulated judgment, according to the Commission.

The defendants appealed this decision.

According to the FTC, the defendants claimed that Seasilver was clinically proven to treat or cure 650 diseases, including cancer and AIDS, and cause rapid, substantial, and permanent weight loss without dieting. The agency alleged that the claims were false and unsubstantiated.

The case involving Seasilver goes back nearly five years.
According to a complaint filed in June, 2003. the defendants falsely claimed in direct response ads that Seasilver could cure 650 diseases, including cancer and AIDS, that it enables diabetics to stop taking insulin, and causes weight loss without dieting (Direct Newsline, March 17, 2004).

At that time, the defendants agreed to pay $3 million, which they failed to do, according to the FTC. That helped set the stage for the appeals court ruling.