SEC claim Traffic Monsoon is a $207 million dollar Ponzi scheme
Traffic Monsoon was a HYIP that promised affiliates a $55 ROI on a $50 investment. Traffic Monsoon investors were also paid to recruit new investors.
Launched by Charles Scoville in 2014, Traffic Monsoon is estimated to have scammed around 145,000 investors out of $207 million dollars.
Yesterday the SEC moved to shut Traffic Monsoon down and freeze Scoville’s assets.
Traffic Monsoon stopped paying ROIs earlier this year, with Scoville (right) claiming that Paypal had frozen over $50 million dollars of invested funds.
The SEC had filed for a Temporary Restraining Order against Traffic Monsoon and Scoville, which was granted on Tuesday evening.
Traffic Monsoon and Scoville are believed to have about $60 million in cash spread out across the US, Canada and UK.
“Because all investor returns are funded through new investor contributions, the company operates as a classic Ponzi scheme,” the SEC alleges.
Paypal purportedly recently lifted the freeze on Traffic Monsoon’s accounts, which saw Scoville immediately begin transferring ‘large amounts into bank accounts, including $21 million into his own account at JPMorgan Chase‘.
In addition to a TRO (which presumably will be converted into a preliminary injunction at a later date), the SEC have also requested a Receivership be set up to manage seized Traffic Monsoon funds.
Scoville’s last Facebook post is dated July 24th;
Success isn’t for the faint of heart. Along with the many significant successes come significant challenges.
Those who will quit, complain, give up, and stir up more problems when the challenges come don’t have what it takes to be truly successful.
The bigger the goal, the bigger challenges will be to test the resolve within us to accomplish those goals.
I recognize the challenges, and I am working through them. Improvements are measurable, and there’s definite evidence of things getting better. Let’s defeat these challenges together.
Reporting a problem is good. It helps identify where improvement is needed. But complaining about a problem and accusing of “scam” because of the problem is simply out of line, and a mindset like that is truly counterproductive in achieving success for yourself.
Scoville’s current location is unknown. Last I heard he was travelling through Asia.
Scoville first popped up on BehindMLM’s radar as the admin of AdHitProfits in 2013. AdHitProfits promised investors a 125% ROI on $45 investments.
The Salt Lake Tribune reached out to Scoville for comment on Tuesday afternoon but he ‘could not be contacted‘.
Update 27th July 2016 – A preliminary injunction hearing has been scheduled for August 5th.