SALT LAKE TRIBUNE: No Decision Reached At Traffic Monsoon Hearing Today

BRIEF: Lots of people are awaiting word on what happened today at the big Traffic Monsoon hearing in Salt Lake City.

In a story titled “Age of the Internet creates questions in alleged international Ponzi scheme case,” The Salt Lake Tribune is reporting this evening that U.S. District Judge Jill Parrish has taken the issues under advisement and will rule later.

More . . .

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3 Responses to “SALT LAKE TRIBUNE: No Decision Reached At Traffic Monsoon Hearing Today”

  1. Thats it?

    Maybe i am missing something here but how is TM and different to any other ponzi that pays old with new and implodes when no new signups are generated?

    According to that article the discussion was about “Whats to stop Charles from setting up on a server outside the US and this is what will happen if the court continues to freeze the accounts?”

    Whether the main argument is that ROI was not promised is neither here nor there. It certainly wasn’t portrayed as “if you’re lucky you’ll receive $55 from every $50 back” in the marketing spiel.

    This is an open and shut case and seriously the SEC has been doing this for over 50 years so why the massive delay once again?

    The Telexfree sentencing was an absolute joke and proved to the world that the US are no better at doling out justice than they are at maintaining a peaceful relationship with another country :P

    Sann Rodrigues getting a 2 year suspended sentence with a fine was just a way to tell all these scammers that they can do what they want and the worst they will receive is a slap on the wrist and a fine that pales in comparison to how much was stolen.

    For shame SEC.

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  2. Quick note: Readers should familiarize themselves with this Supreme Court case:

    https://www.supremecourt.gov/opinions/09pdf/08-1191.pdf

    The 2010 case is known as MORRISON ET AL. v. NATIONAL AUSTRALIA BANK LTD. ET AL and deals with jurisdiction outside the United States.

    Charles Scoville of Traffic Monsoon is arguing that the case is devastating to the SEC’s Traffic Monsoon case because the agency is asking the Utah federal district court “to enjoin conduct that the U.S. Supreme Court has said is not covered by the very U.S. securities laws under which the SEC purports to proceed.”

    From Scoville’s argument:

    ________________________________________________________

    As the SEC notes in its Complaint and Motion, “approximately 90%” . . . of Traffic Monsoon’s customers reside outside the United States.

    This fact is devastating to the SEC’s case because, under Morrison, even if the
    advertising services Traffic Monsoon sold (“AdPacks”) are securities (which, as explained below, they are not), where the AdPacks are not listed on a U.S. Exchange and do not involve domestic transactions, the U.S. securities laws do not apply. Thus, the 90% of AdPack purchases by individuals outside the United States are beyond the purview of the SEC.

    ________________________________________________________

    Scoville wants the judge not to grant a preliminary injunction in the SEC’s favor and to set aside the receivership.

    Patrick

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  3. Jay Carey: Sann Rodrigues getting a 2 year suspended sentence with a fine was just a way to tell all these scammers that they can do what they want and the worst they will receive is a slap on the wrist and a fine that pales in comparison to how much was stolen.

    HeHe, I think you’ve got hold of the wrong end of the stick WRT Rodrigues’ sentence.

    He was charged with immigration offences, NOT for his involvement with Telexfree, those charges / court case are yet to come.

    WRT, Scoville, this is only the civil / administrative part of proceedings.

    The maximum penalties under civil law are disgorgement, civil (monetary) penalties, assets freeze and the appointment of a receiver to marshal / redistribute assets.

    Judge Parrish hasn’t ruled yet and without doubt, criminal charges are on the horizon

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