Receiver seizes Traffic Monsoon website, Scoville lashes out at SEC
The notion that Charles Scoville was going to “negotiate” his way out of the SEC’s lawsuit against Traffic Monsoon was absurd from the get-go.
With $207 million dollars of Ponzi fraud on the table what, a few chats and Traffic Monsoon would be open for business again?
Now, as the reality of the SEC’s allegations against him sit in, Scoville is increasingly voicing hostility towards the securities regulator.
Yesterday the Traffic Monsoon website went offline. As at the time of publication it remains unresponsive.
Coinciding with this were new filings in both Utah and New York by the Receiver.
Under 28 U.S.C. § 754, a copy of the Complaint and a copy of the Appointments Order must be filed in the United States District Court in each District in which property subject to the Receivership is located.
The filings don’t explicitly clarify whether the Traffic Monsoon website and domain are “property” identified in the Utah and New York filings, but the timing of the website going down certainly suggest so.
In any event, whether through court filings or otherwise, Charles Scoville has purportedly lost control of the website.
This, likely along with the realization the SEC aren’t prepared to budge on accusations of Ponzi fraud against him, has lead to an outpouring of misguided scam rhetoric.
Attempting to rally his investors with the only thing that matters to them, their money, Scoville (right) took to Facebook earlier today with the following:
The SEC is getting paid. Are you? The receiver is being paid. Are you?
The irony, evidently lost on Scoville, is that the use of payment to rally his affiliates completely undermines the pseudo-compliance of Traffic Monsoon affiliates not expecting to be paid.
Why would affiliates care about “being paid” if Traffic Monsoon’s ROI’s where never guaranteed (implied or otherwise). If one were to buy into Scoville’s flawed pseudo-compliance, then what payments are affiliates going to get angry about?
Central to Scoville’s failure to comprehend why the SEC shut him down, is an incorrect notion as to what constitutes securities fraud.
From the same Facebook posting;
I’ve spoken with a few lawyers lately. One thing is clear. Traffic Monsoon is not offering a security. It’s not offering an investment. That is one thing very certain through these communications.
A security is when someone makes a deposit or investment, and walks away. Does nothing. They rely upon the market to do its thing, and hopefully make a profit.
There is no service provided to these “investors”. Traffic Monsoon sells services.
Every modern online Ponzi scheme has some sort or service or product attached to it. Zeek Rewards had penny auction bids, TelexFree had VOIP packages – both were still Ponzi schemes.
A securities offering is when you solicit funds from the public on the promise of paying them back more than they deposited.
The return constitutes a ROI and the deposit an investment. And if you’re not registered with the SEC, in the US it’s an unregistered securities offering.
Whether your investors “walk away and do nothing” doesn’t matter. The ROI is funded by subsequent investment, and has nothing to do with attached products or services (which serve as pseudo-compliance).
Whatever “lawyers” Scoville is consulting are obviously unversed in securities fraud.
For the record, an attorney has yet to put in an appearance in the SEC vs. Traffic Monsoon case.
Every lawyer I’ve spoken to about this situation all believe the SEC is wrong in their findings, and especially wrong when they learn that there is more money available than what people have earned!
And this is another thing. Whether math is a strong suit of Scoville’s I can’t say, but when your ROI liability is over $812.35 million and you only took in $207 million, how the hell can you claim “there is more money available than what people have earned”?
What is their intention here? Is it really to protect you? Or to grab the money?
If multiple lawyers all say there is no investment here or any security… and the State of Utah Securities Division closed their file in the past finding no security.. what is truly going on here?
As to the Utah Securities Division purportedly giving Traffic Monsoon the all-clear, Patrick Pretty reports Scoville’s claim is a lie:
The PP Blog contacted the state Division on Aug. 1, after reading a Traffic Monsoon affiliate promo that in part read, “The State of Utah’s security division & Consumer Protection went to the offices of Traffic Monsoon to investigate their business model.
The result of the investigation was that Traffic Monsoon wasn’t committing any kind of investment scheme or security fraud.”
That simply didn’t happen, the Division said through Director Keith Woodwell early this afternoon in response to the PP Blog’s inquiry.
“[T]he Division has not investigated Traffic Monsoon,” the agency said flatly.
Make no mistake. Traffic Monsoon was a Ponzi scheme and Charles Scoville is a Ponzi scammer.
When the dust settles his victims will get back a fraction of what they invested, primarily owing to Scoville and Traffic Monsoon’s top investors stealing the majority of funds invested.
This is how every Ponzi scheme plays out, the only difference being the SEC has stepped in – meaning those who lost money in Scoville’s scam might actually get some of it back.
So at this point he must be aware he has an indictment coming.
Funny isn’t it how just a short week ago, Charles was singing the praises of the SEC and how wonderful they were to work with, and was gushing over how they understood his “good intentions” in forming TM, yada, yada, yada.
The reality is finally sinking in on a lot of the TM’ers, but those that have huge downlines and need them to stay in their downline have to keep up appearances that Charles IS the “VICTIM.”
Of course they all “claim” to be standing behind him 1000%, but they are so far behind him he would need a telescope to see them. Most are already on to their next “big thing,” and doing their best to convince their downline they were duped just like everyone else.
We still have TM’ers going from denial to anger and back and forth which is typical when this happens. Some have already faced reality and while not happy realize they have been had AGAIN.
It isn’t going to be much longer before the multitudes of the TM’ers turn on Charles big-time and then this could really get ugly.
While interesting to watch, it is also the most painful time to watch as the horror stories are going to start in droves of the damage TM and Charles has caused them. Think of all the people who quit good paying jobs buying Charles’ hype and the major pimps of this to do TM full-time.
This is always the time our phone starts ringing with people asking for our help and we hear the horror stories first hand. It is the part I don’t like about Eagle in having to listen to all the broken lives these Ponzi’s cause and the true devastation to finances, relationships, and members committing suicide. Sadly TM one will be no different.
It is also interesting to see all the major pimps starting to reduce their visibility on the forums and FB posts.
I just pray the TM Receiver does what the Receiver has and is doing in Zeek Rewards. Now that truly would be a win-win for the victims.
Maybe I’ll open a popcorn business. Could do a roaring trade right now. Maybe Gerald Nehra might even appear.
hmm some comments under scoville’s posts on FB are getting quite ugly, hateful and dangerous:
i guess people who have lost a lot of money are getting really mad at scumville.
also, is scumville only going to lash out at the SEC on FB, or is he going to prove his case in court? and if he is so sure he did nothing wrong, then when is going back to the US to tell the SEC off properly?
I just don’t understand one thing. How come a Ponzi scheme like TM can be legally set up in the first place and oparate for so long under the US law? Shouldn’t the SEC swoop on them from day one?
Now that the milk has been spilt it’s clear that something is wrong with the regulations and the agencies which are supposed to make new businesses obey them.
Apart from the suits against TM/Scoville there should be one against the SEC (if they haven’t done their job in time).
Even if the law is imperfect, the SEC should be double watchful with such Ponzi-like new businesses.
Btw, there are plenty of new ones operating or being set up right now. The SEC lamers should have learned their lesson by now? Or am I wrong. I am probably.
Because law enforcement of Ponzi schemes is reactive. Investigations and collections of evidence takes time.
Far more time then it takes to load a $2 script, buy some hosting and commit wire fraud.
As a general rule, the longest of these will usually last about 2 years before they crumble. There aren’t many which do last this long, but when they do, by this time the general public are jumping on board, with comments in the mainstream media appearing and attracting attention.
By this time the SEC usually have their case together. And because there are so many people there is usually a fair amount of money floating about.
Zeek rewards, for example, had local people queuing around the corner to join with cash payments.
So the members bear no responsibility for trying to make a high percentage return, doing almost nothing, with someone who has a history of scamming?
I will say the government could do a better job educating people about recruitment based opportunities. We will not win the battle unless people stop joining these things of their own volition. Without participants, the scams don’t exist.
The governments don’t have the man power to monitor them all. Imagine trying to control drunk driving by only having check points on every block, and never educating people about the dangers of DD?!!! Because of education and stiff penalties, we now know if we drive drunk, we risk everything. We need this for Ponzis/Recruitment based opps too.
People must be educated and then be responsible for their actions. If they feared a repercussion, they might think twice before joining.
Christ Scoville is a dumbass.
That’s from his Facebook, 2 hours ago.
Here’s the definition of a rebate: pay back (such a sum of money).
The second you pay >100% you’re no longer paying a rebate, you’re paying a ROI.
If Scoville wanted to offer rebates through Traffic Monsoon, he’d of capped the ROI at 100% or less. But then nobody would have invested and Scoville and his wife wouldn’t have made millions.
Best of luck crapping on about rebates in court.
for some strange reason scoville is repeatedly explaining himself on FB, as if it will solve his problem with the SEC.
he is desperately seeking sympathy and support, but not all affiliates are buying his explanation:
i am waiting for the criminal charges to be filed against scoville.
it will be interesting to see whether he gets charged with ‘securities violations’ [like bowdoin of ASD] or just mail/wire fraud [like burks of zeek].
if there is evidence that scoville lied to affiliates about the source of ‘profits’ in TM, then a simple case of fraud can be established without stepping into the grey area of ‘securities’.
at some point scoville will be forced to settle with the SEC, and i hope they get him to admit guilt.
Read the latest on Paypal? Thought about doing a writeup but then couldn’t stop laughing.
I’ve heard whoppers over the years but that’s one tall order. If true, the level of dumbassery is unbelievable.
They need to make a movie about TM starring Steve Carell as Scoville.
But I thought, as ponzi/pyramid apologists often claim, that participants in these schemes all know that “it’s just a game” and only play with “money they can afford to lose”.
So why are people getting upset now?
Maybe it’s just the page views they paid for and haven’t yet received, given that this was all they were paying for, rather than any notion of an “investment” in the expectation of a ROI, lol.
Makes me wonder if he really has a lawyer at all. Pretty sure they would be telling him to stfu with the facebook monologues already. The man clearly isn’t well in the head.
Heard a DA speak last night. He said standard procedure is to allege multiple violations (multiple charges) so the prosecution has the greatest chance of prevailing on at least one.
This forces the defendant to “run the board” and prevail on all four charges to escape jail. Simple statistical logic that has huge implications for anyone placed under arrest.
With enough evidence SEC don’t even need to “settle”. Scovie will gladly swallow the gag order and more when he has no choice if he wants to stay out of the slammer.
Given that he is still posting explanations to Facebook, I wonder if this man has enough intelligence to settle.
He may be one of those who goes down hard because he goes down swinging. Surely by now his attorney (if he has one) has told him to keep his mouth shut?
What if he just has no intention of returning to America?
I thought his wife and he had agreed to meet with the SEC later this month but they could have changed their minds.
Rumor is that Charles will NOT BE returning to the U.S. as he has clearly been informed that he faces serious slammer time and please understand that a small little boy like Charles Scumville will be EATEN ALIVE in any prison in the U.S..
His wife and him are reportedly on their way to Asia where his wife has relatives/close family friends.
He has also been able to Pocket a TON OF CASH…. so he will be fine…
Everyone who “invested” in Traffic Monsoon knew DAMN WELL that there was risk so shame on all the folks that did this as a full time job after quitting their job…REALLY.. 10 clicks a day does not and will never keep the DEBT away……pleas.
i think scoville as hired an american attorney who will meet the SEC in his lieu.
this conversation is from scoville’s FB page 11 hrs ago:
i think scoville is hoping to settle with the SEC, forget all the money trapped in the US, and move on with his life.
not surprising at all!
of course. scoville has run multiple scams before TM. if he’s smart enough to design and run so many scams, he’s smart enough to have put away some money in offshore accounts.
it seems that scoville has lied once again regarding the shutting down of the TM website.
yesterday when the TM website became unavailable, scoville had rushed on to FB, claiming it was a DDOS attack.
the hosting service scoville used for TM was Snoork Hosting. the receiver contacted snoork and told them to switch off the TM server.
it seems the receiver also informed scoville In Advance, that the site would be shut down, and scoville Pretended he didn’t know this, when he complained about a DDOS attack.
seems scumville is a habitual liar. he lied about paypal releasing funds in august, when in fact they were released in july itself. his excuse was he wanted to ‘surprise’ his affiliates.
now it seems, scumville has lied about not knowing his website would be down, with an excuse of not wanting to ‘alarm’ his investors.
it seems scoville’s followers have imbibed some of his dumbassery.
william bryant the writer of ‘wordy’ letters, is beating his own idiocy levels on a day to day basis.
consider this gem from him today:
so, a run of the mill ponzi rev share is comparable to a unique invention?
i think ayn rand was some famous writer, and she may jump out her grave to sock bryant for comparing rearden to scumville.
at this rate, bryant may end up writing a ‘wordy’ love poem for scumville and all! down boy, down!
Didn’t someone say his money had all been seized and even if he wanted to, he wouldn’t have the money to get back to the USA? So where is all this money?
Might be in his wife’s name, hence the Receiver wanting to depose her.
Here’s a little bedtime story, CS opening up as he says…
Charles Scoville on FB 18 hours ago·
He’s got his unique invention, turning $50 into $57.50 ($55 + his $2.50 “costs”) rather than the more mundane $50 into $47.50 which most of us could achieve.
Though I’m sure this guy would love Ruja, the fantastic invention of converting numbers shown on a computer database into $billions, even doubling that value at her command.
Or her other invention, converting a <$50 tablet into a $7000 tablet by painting a logo on it selling it in onecoins.
If only any of this was actually real.
Reminds me of what Michael Douglas said about money being all about a transfer of one perception to another.
Nice how scammers would try to scam the scammer. Charles was so desperate to get to the paypal money he would cut a deal with anyone.
The idea that paypal is afraid of growth is really a joke. Paypal has seen so many ponzi schemes try to sneak under the wire with them – they just cut them off.
Charles is in deep denial of having enough funds to pay everyone. He would only do what ponzi scammers do best and is play a juggling act to keep paying members and stalling with the rest of the payment.
Things like increased withdraw limits
Withdrawal times of once a week
process or delays
fake cards being issued
Just paypal and the SEC just stopped the chain of events.
Small time members were fooled yet not the big ponzi players.
Fresh from Charles:
I don’t think he’ll be back.
Only managed to get halfway through that paypal story, difficult to believe PayPal blocking because of growth whilst letting funds continue on in – we can’t handle the volume but let the volume continue? Lawyers not having “jurisdiction” – ?
Of course if it’s not all true then he’s potentially libeled some clearly identified people.
Well if that’s true, lawsuit’s are public record so should be ok to find or he could give a case reference. Won’t hold my breath.
That shouldn’t be a problem. The receiver will have far more clout than he ever did in getting funds released from places.
The receiver works “for the creditors” (the people he mentions) in an attempt to maximise returns, so of course he gets payed. But reading that story Scoville was paying our large sums of money everywhere, so he must believe there is a huge surplus so the receivership costs won’t matter much.
Of course that assumes he did achieve the magic trick of converting the $50 to a bigger amount in the first place, again not holding my breath on that one.
Recommendation to all is just to call own bank and start a chargeback process. This is regardless if you paid to allied wallet or payza.
Do it fast as you only have 180 from transaction to do this as payza and allied will not help you!!
Pay pal likely has algorithms in place that track and compare more parameters than just the number of transactions or gross dollar amounts involved (volume.) Whatever metrics they use, TM was flagged as suspicious and any claim that Paypal is unable to handle very large volumes of payments in and out seems dubious.
Apparently TM has the cashflow “fingerprint” of a ponzi and Paypal suspended and delayed payouts accordingly. Its not difficult to imagine that Paypal would continue to accept funds since they extract fees and make money on the float when they do so.
Paypal’s total payment volume is roughly $86 billion per quarter.
You play the game of mass fraud on innocents you pay the price. Charles has no-one but himself to blame for this and accusing the SEC of fraud is not the cleverest thing to do when they control everything you own!
Now, if he was a politician or the president he could piss all over the people and steal their money as they do every single day however they have one thing Charles does not: Protection.
Yes, if true it’s hilarious.
Probably a good idea to attach “if true” to all of Scoville’s recollection of events.
I’d like to get a glance at Charlie’s high school yearbook to see if there’s any “voted most likely to become a grifter” and/or “always daydreaming … off in his own world” type comments because he comes across as either prolific liar or a person living in a somewhat different reality than most of us … or maybe a bit of both.
What I don’t get is why he used Paypal in the first place … as for years the “make money online” scamworld has know that Paypal takes a dim view of their antics.
If it was just to add some sort of legitimacy to the scheme, i.e., Paypal doesn’t accept Ponzi schemes so TM must be legit, he still must have known that the hammer was going to fall eventually. So you’d think that once TM took off, he’d have moved to a more Ponzi friendly processor, using a “Paypal couldn’t handle our volume” or similar Ponzi operator nonsense excuse.
It could be that Scoville was thinking that TM would, like his previous schemes, collapse fairly quickly, before regulators, Paypal, etc., took notice and that he could again exit stage left with whatever funds remained and move on to his next scam.
He could be a victim of his own grifter, and perhaps unexpected, success with TM and like many scammers was too greedy to get out while the going was still good.
Other thing I don’t get is why he’s still yapping on FB. He knows the scam is done and that nothing he says will change the view of the only people who now matter … those being people in the regulatory/legal apparatus rather than the poor saps who got suckered into TM and didn’t end up net winners.
Unless of course he’s just laying the groundwork for his next planned scam and/or
CharisCharles has convinced himself of his own BS story that TM was a real business, rather than just another “adpack” Ponzi using a run of the mill traffic exchange script.
The man has problems. Having learned from an inside source that Charles, the new wife, and son are currently seeking refuge in Thailand, it is obvious that this man will stop at nothing to hide.
For those wondering how to extort funds without people knowing, look no further to CASH.. Cold and Hard …he has had years to be able to do this…
All these crazy stories about him and paying lawyers and this Thomas guy and sahid person, etc….all of these BOUGHT TIME for him to keep collecting various ways of Cold HARD CASH….
The man is evil .. He is on the run…. and the SEC probably did the reight thing to just shut it down and let people get some money back in about 3 years when most will have forgotten about this latest scam.
Thank god MPA and MAP are based outside of the U.S…..!!!
Well there are now 3, count them 3, donations websites set up for TM members to donate to pay for Charles’ attorney. Mom & Dad, William Bryant, and Payza Fighting Fund. Some never learn.
Interesting isn’t it that all the major pimps of this did not rush to pay Charles’ attorney fees after all that TM has done for them. If I were a TM member, I would be asking why.
It’s just fear mongering / Fed blaming to “rally the troops”. Zeekheads did the same thing, i.e. “There were no victims until Feds came along”.
Clearly, these guys are so deep in Matrix they don’t realize they’re victims.
Don’t these people know when they’ve lost?
I just received this email:
I guess these ponzi pond scum never actually learn.
Well, Sharon James stepped up to the plate and made a magnanimous $100 donation to Charles’ legal defense fund. Or as one of my Brit friends said, this is what is known as a tight arse.
Ouch Sharon, your reputation just got exposed. Still no donations from Sunil or Imy or any of the other major pimps yet.
There’s $3000 and some change raised on a GoFundMe (out of a $300,000 target).
and that account would be in violation of gofundme’s terms and conditions.
have look at img.photobucket.com/albums/v465/stacy532/Screenshot_2016-05-09-18-48-45_zpsjvmbhr8h.png.
Amin Forati President of D&B Groups in Dubai for a certain period was Traffic Monsoon CFO and founds, beside Scoville indications, were on Amin Forati paypal account.
I seems that Scoville’ intention was to use and/or useed D&B to clean some money.
Amin Forati and his D&B Groups is part of the Traffic Monsoon scheme and it seems he created a mask to “protect” activities that generate money.
Have a look at parabolicarc.com/2015/09/30/swiss-space-systems-announces-partnership-uae-company/
From partner in satellites business to CFO of Traffic Monsoon??
D&B Group in Dubai with Amin Forati is TM funds cleaner. That is clear otherwise why Scoville went to Dubai announcing to open a bank and took Dr. Amin Forati as CEO??
Scoville is the movie director and Forati movie perfomer!!!
Look at the facts: Scoville went to Dubai and proudly announced that a Finance Superman named Dr. Amin Forati President of D&B was new TM CFO and a TM bank would have been opened soon in Dubai.
LOL, it was just a parade for investors while some money (17mil $ !!!) “floating” to Amin Forati paypal account to be cashed through assets that Forati/D&B has in Europe, like Switzerland or Austria were it is possible to link a paypal account to banks account.
It seems now that Sec investigating on Scoville relatives to recover Tm funds while should investigate on the fact that Amin Forati as TM CFO could have managed all money!!!!!!
i made nothing fron this except tedious 10 a day getting nothing from very dissapointed wasted my time which i have very little off.
very annoyed could nt get back what id earned just frozen clevr people sre behind this.
i had 6000 dollars all froze what a joke.
What is the mindset behind anyone putting $6000 into any scheme?
If you have that kind of money sitting around for scheme you could have done a bit of research and found many more honest ways to grow that $6000.
You figure people that have that kind of money to dump into these schemes are either insiders or just plain dumb to not know what is really going on.
I see what side you are on from the post you made.
$6000 is a hard way to learn a lesson.
Yet they are the same business model and still ponzi schemes.
What has God to do with that?
MAP did a runner from the USA – they knew they were on the radar to be shut down like monsoon.