SEC: Claims That Traffic Monsoon Was A Successful Advertising Business ‘Merely An Illusion’
“The complaint alleges that more than 99% of Traffic Monsoon’s revenue is derived from new investor funds, making claims that it is a successful advertising business merely an illusion.” — U.S. Securities and Exchange Commission, July 28, 2016
Charles Scoville.
EDITOR’S NOTE: This (below) is the full litigation statement of the SEC on its Ponzi case against Traffic Monsoon and Charles Scoville. The statement was issued today. It asserts Traffic Monsoon “raised more than $207 million from investors worldwide, primarily in the U.S., India and Russia.” The case was brought July 26 in Utah federal court. The photo (left) of Charles Scoville is a screen shot by the PP Blog of a video on YouTube featuring Scoville. The SEC’s Salt Lake City office, referenced in the statement below, has experience uncovering online schemes, including the infamous Imperia IBC caper targeted at Americans and others with hearing impairments. Like Traffic Monsoon, Imperia was a Ponzi-board “program” with a presence on sites such as MoneyMakerGroup and TalkGold.
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U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23604 / July 28, 2016
Securities and Exchange Commission v. Traffic Monsoon et al., No. 2:16-cv-00832-JNP (D. Utah filed July 26, 2016)
SEC Halts $207 Million Internet-Based Ponzi Scheme
The Securities and Exchange Commission today announced that it has obtained an asset freeze against the operator of a Utah-based international Ponzi scheme that raised more than $207 million from investors worldwide, primarily in the U.S., India and Russia.
In a complaint filed in federal court in Salt Lake City on July 26, the SEC alleges that Traffic Monsoon LLC and Charles Scoville, the company’s only member operated an Internet-based Ponzi scheme that they falsely represented to investors was an advertising company. According to the SEC complaint, Scoville began operating Traffic Monsoon in October 2014 as a combination Internet traffic exchange and pay-per-click program and recruited more than 162,000 investors around the world. According to the complaint, although Traffic Monsoon markets itself as a highly successful company, nearly all of its revenue is generated by other investors, not its products or services. The complaint alleges that more than 99% of Traffic Monsoon’s revenue is derived from new investor funds, making claims that it is a successful advertising business merely an illusion.
The SEC’s complaint alleges that Traffic Monsoon and Scoville violated Sections 5(a), 5(c) and 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5(a) and (c) thereunder. Among other things, the SEC’s complaint seeks permanent injunctions, prohibiting further violations of the laws charged, disgorgement of ill-gotten gains plus prejudgment interest and civil penalties from Traffic Monsoon and Scoville.
The SEC’s investigation was conducted by Alison Okinaka, Scott Frost and Cheryl Mori of the SEC’s Salt Lake Regional Office. Daniel Wadley is leading the SEC’s litigation.
[SOURCE] http://www.sec.gov/litigation/litreleases/2016/lr23604.htm
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Charles is all over FB claiming that he is negotiating a settlement with the SEC that if they approve it will allow TM to continue only in a different format. What he failed to realize that in saying this he has inadvertently said TM was a Ponzi. This despite all his protestations for 2 years it wasn’t.
He also is trying to pretend that he is still in charge of TM, but the Judge appointed a Receiver who is in control of all frozen assets of TM on July 27. He is no longer in control of anything.
Every update he gives he keeps digging his hole deeper and deeper, but is too vain to realize it. And of course the faithful are eating it up and standing with him and TM claiming TM will be back better than ever. Now where have we heard that before? It’s a rhetorical question in case anyone was wondering. lOL!
Same old story we see in every Ponzi when the authorities move in and shut them down. Since Charles is billed as the most honest and trustworthy admin ever, I expect someone to use the line used for Andy Bowdoin that Charles is too honest to testify. That was a classic that will live on forever.
What Charles also is ignoring is that while this action is civil, he also could be facing a criminal indictment. I doubt if this has even entered his mind. It took 2 years before Andy Bowdoin was criminally charged, and almost 4 years for Paul Burks criminal charges. His legal problems are just beginning.
He just thinks the SEC will treat him like FTC did to herbalfe – fine + restructure :)
Whatever anyone thinks of Traffic Monsoon it is as has been mentioned – ‘He (Charles) is no longer in control of anything’. There are still many people ignoring this fact and carrying on as if nothing has or will happen, all hoping for the best. The word ‘mirage’ now comes to mind.
I’m not sure what the point is of getting a lawyer. He isn’t going to win, so why not just let the SEC do what they are going to do and save the bother of a court case and costly lawyers.
John: That is what a rational person would do, but we are not dealing with rational here. He truly is convinced in his own mind if he says it is not an investment, you are buying only advertising, and earnings are not guaranteed, he isn’t breaking the law.
Also he has to keep this story going so he will be the martyr to the members. So in the future when he starts his next program they will flock to join it believing he was railroaded by the “EVIL” SEC and the government, as they needed the money.
There are people still today who think that Andy Bowdoin did nothing wrong in ASD, it was a real and legal company and the “EVIL” SEC wanted their piece of the action, and didn’t want the little guy to get ahead. After all, we can’t let the little guy get ahead as the rich want to keep you s slave. What is sad is that Andy Bowdoin admitted he was running a Ponzi, pled guilty, and sits in federal prison. If he doesn’t die in prison and gets out, he could start a new Ponzi; and these same people wwould flock to join. Sad but true, and you can’t convince them otherwise either.