SEC: Traffic Monsoon does not have sufficient funds to repay investors
In what shouldn’t come as a surprise to anyone, the SEC have revealed, contrary to Charles Scoville’s representations, that Traffic Monsoon cannot repay its investors.
In late September Scoville filed a motion requesting the court dissolve the Receivership and either lift the asset freeze or reduce it to $15 million.
In their opposition to Scoville’s motion, the SEC claim Traffic Monsoon doesn’t have enough money to pay off investors.
This is based on Scoville’s lawyer requesting the Receiver ‘calculate the amount invested by U.S.-based Traffic Monsoon investors, the amount that had been repaid to those investors, and the remaining amount owing.‘
According to Traffic Monsoon’s own records, Traffic Monsoon’s U.S.-based investors are owed approximately $56 million.
Thus far the Receiver has marshaled $49.5 million in assets.
And bear in mind that’s only US-based affiliates. 90% of Traffic Monsoon affiliates are based outside of the US.
Scoville also argued that the his constitutional rights were abrogated by the appointment of the Receivership.
As the potential violations identified by Scoville are purely hypothetical, and as courts “do not rule in the abstract on questions of suppression,” U.S. v. Setser, 568 F.3d 482 (5th Cir. 2009), the Court (should) deny Scoville’s requested relief.
Citing U.S. v. Setser, a case Scoville himself cited that pertains to Ponzi fraud and Christian groups, the SEC point out
as long as there was no collusion between and among the different governmental agencies, wherein the civil process was used in a deceptive manner to obtain evidence that otherwise would not have been available through the criminal process, the court concluded there was no violation of a Fourth and Fifth Amendment right.
There has been no such alleged collusion in this matter, and the Receiver is well within her court-ordered and statutory rights to possess and marshal the defendants’ assets.
As such, Scoville has no constitutional rights violations here.
If Scoville wants to pursue the argument he’s going to have to provide some actual proof.
Given criminal proceedings against him have not been publicly confirmed, that’s pretty much impossible to do at this point.
Likewise, the asset freeze in this case does not abrogate Scoville’s Due Process rights.
As this matter is civil, not criminal, in nature, Scoville does not have a constitutional right to counsel.
Courts have refused requests to access frozen funds to pay for defense costs because, in civil enforcement matters, unlike criminal matters, there is no Sixth Amendment right to counsel and because those funds should be used to repay defrauded victims.
I suspect a decision on Scoville’s motions will be made next week, or at the latest on November 1st when the preliminary injunction hearing takes place.
Stay tuned…
This can’t be true. Charles has been telling everyone almost everyday why TM is not a Ponzi and it has more than enough money to pay everyone with money left over!
You mean he lied? Shock, Horror, Gob Smacked, Stunned! Well, not really, just couldn’t resist being sarcastic.
Seems Charles has gone silent all of a sudden. Maybe his attorney finally got through to him that he wasn’t helping with his daily posting the same ole thing over and over and over and over. I sure hope so.
Now if we could shut stacy Williams up with his comparing TM to the bakery he works for and his wages to clicking on ads nonsense over and over and over and over. He learned well from Charles with the repetitive mantra.
ha, fat chance of scoville going silent!
just yesterday he posted the same ole thing Again! he just keeps changing the packaging the shit remains the same:
for some strange reason he doesn’t post his repetitive TM lessons on his own FB page [maybe he is trying to deceive his own lawyer?]
I only went into TM through a friend, and in a very small way to the tune of a single Ad Pack, because I doubted it from the first time my sponsor introduced me to it..
Approximately 10 days after my purchase my account was frozen, put to pending and the small amount I had in the remains to this day, pending.
I never received any return on my Ad Pack because it was frozen.. I was told in the beginning that I would make $10 dollars on every pack that I purchased.
The biggest problem with these schemes, be they ponzi, pyramid, funnel or what ever, they are all scams!!
The same people turn up at the top of the tree in most of them, those people buy in, invest call it what you will in these schemes in large amounts of money, purchasing maybe 100 Ad Packs at a time.
That’s an immense amount of money for some one like me who buys into these things because it could give you a better future.
The only people that make money are those who have money to put in. The builders of these schemes, are unscrupulous to say the least, and they recruit people who eyes are glazed by the thought of becoming rich, but know bot all about what the so-called “business” is all about..
Scoville should be banned from ever owning a business again. I cannot understand why he has so many people still believing he is an honest and up standing person and their money is going to miraculously appear back in their accounts, and the Magnificent Traffic Monsoon will once again rule the waves of rev share..
Wake up and smell the coffee!!! It’s like you are all part of a cult!!!
Yo, who do these SEC schmucks think they are?
Numbers?! HOW DARE THEY!
Where is this money in processor accounts that the Receiver hasn’t seized yet?
Oh that’ right, Ponzi math and it doesn’t actually exist. Only affiliate account balances are tied to actual money, and there isn’t enough to pay everyone back (how could there be, that’s not how a Ponzi scheme works).
Look.. Charlie is just one big stinking BALLOON KNOT!! He may as well speak out his rear end instead of his mouth because everything STINKS!!
Oh.. so you can pay every U.S. citizen back Charles… is that what your saying….
Pucker up big boy and stop using your Mouth…
hmm that’s exactly the sentiment of jose nunes who was a top TM affiliate.
nunes started up his own ponzi revshare very quickly after TM was shut down by the SEC. he is trying to entice TM affiliates into joining his new revshare by using an ’emotional’ spiel that he would use funds from his revshare to support TM’s fight.
if nunes has started his own revshare [very similar to TM] why would he want TM to restart?
maybe he is worried about clawback actions the receiver may institute?
stuck in a corner with no answers to questions like – how did TM pay 110% returns with ad packs being 96% of sales, jose nunes is hitting back at the receiver with some ‘colorful’ language:
piggy, bitch, cow – nunes has set up a whole animal farm here, the very farm peggy hunt is sending traffic monsoon to!
well done mr nunes, you’ll be hearing from the receiver soon!
immy aslam [Imtiaz Aslam], one of the topmost TM affiliates from the UK and a close confidant of charles scoville, fell off the radar soon after the SEC shut down TM.
he cleared his FB page of any mention of TM, shut down his website imyaslam.com, and even shifted house.
it seems TM investors were pursuing him, and were pissed that he had used islam to recruit many of them into TM, and this prompted him to shift his residence.
it seems his investors have been able to track him down now:
wheretofindwealth.com/where-is-immy-aslam/
This is categorically incorrect as even if the rev share was running today TM never paid all the rev share in one go!
You guys really have missed the point as have the SEC.
Im SOOOOO glad someone done some digging on Immy/Imitaz!! hate to think ANY of these scum promoters will get away with it.
I still cant understand how they look in the mirror each day after knowingly ripping people off, same as that Sharon James, how many similar scams has she been involved in and still keeps doing it!!!!
no morals!! did their parents not teach them wrong from right!
@David
What does that have to do with using newly invested funds to pay off existing investors a $55 ROI on a $50 deposit?
And y’all keep making up points to dodge the Ponzi evidence, I’m sure that’ll work in court.
It has a great deal to do with many things. You keep mentioning a return on investment, but that would imply that a TM member gives TM $50 does nothing and then in a given period would expect a return on that $50, then when the return was not there they would have a right of recourse asking TM where their money is.
BUT and the big BUT here is that TM members need to do something i.e. surf the website every day to be include in a REVENUE SHARE which is only available IF TM make a profit.
IF TM do not make a profit there is no REV SHARE. The fact that the MAXIMUM level you can reach is $55 does not make it a ROI it simply states that that is the MOST you can expect as a proportion of profits per ad pack.
It is never guaranteed it is simply a MAXIMUM , you will no doubt go on to site the SEC saying that so far every who has a adpack actually got to this maximum number and the reason for this is because the profits were there to share.
And further to this the ONLY money TM needs in the bank is the amount that would cover the proportion to all members in TM that was a share of the profits.
So in simple terms if yesterday TM made $1Million and the profit from that (for arguments sake) was $500,000 then that is the only amount of money that is due for payment. The fact that there might be 1, 2 ,3 or 4million adpacks in TM is irrelevant all that would happen is each of those adpacks is paid as a straight divisible of the $500,000 plain and simple.
The SEC in this scenario are saying that (in the case of) 4million adpacks means that TM owes £220,000,000 which is absolute nonsense because it neither takes into account the previously paid out revenue sharing or the fact that if no further packs are sold then there can be no profit and therefor no sharing of this profit.
What are you struggling to understand here????
You guys really have missed the point as have the SEC.
And y’all keep making up points to dodge the Ponzi evidence, I’m sure that’ll work in court.
A ponzi relies on new members paying old members, TM does not! It relies on profits to pay ALL members new or old! That my friend is how every business on earth works! No sales , no profits no share holder payments no wages no business.
See what happens when you don’t do your research before sending off your money ???
“clicking on ads” has not been considered by the courts to be “work” since the SEC action against 12 Daily Pro back in 2006.
Check out the 12 Daily Pro, AdSurf Daily and Colon End Parenthesis (CEP) cases.
All of them involved selling (fake) advertising and members “clicking on ads” to qualify to earn and all of them were successfully prosecuted.
ho hum, the same crap^^ scoville has been posting on FB day in day out.
it doesn’t matter whether the ROI was ‘guaranteed’ or not, the truth is that it Was Being Paid Out, which is why people were buying the adpacks in the first place.
without the 110% ROI why would people be reinvesting and buying scores of adpacks, which were delivering barely 10% of the clicks promised?
would you buy such a poor product without the ROI?
you can fool yourself all day long but best of luck with this argument in court.
@David
As advertised on the Traffic Monsoon website: $50 goes in, $55 comes out.
Your lack of knowledge on legal precedent in this area betrays you.
This path has already been trodden in the AdSurfDaily case. The owner of AdSurfDaily is currently sitting in a prison cell.
I wish you well in your research.
Scoville’s appeal to religious affirmation.
What does “the Almighty Creator” think about Ponzi schemes I wonder.
In related news there’s been a lot of two and fro filing between Scoville and the SEC, mostly pertaining to jurisdiction over offshore Traffic Monsoon investment activity.
Scoville is arguing he has enough money to pay back US investors what they initially invested (as in first deposit). He also wants the court to ignore all non-US investment activity.
The SEC are opposed to this for obvious reasons.
I figure a decision will be made at the Nov 1st preliminary injunction hearing. That’s only a week away so, pending any unusual filings, I’m going to wait for a decision before publishing anything.
Is it right that Serial Scammer Jose Nunes from Portugal now living ILLEGALLY in North Wales, UK… has set up his own Ponzi version of Traffic Monsoon called Traffic Express…
He lives there, I don’t know about illegally, in a small terraced house which is up for sale presumably because of his penchant for domestic violence. Said in court to be earning £1,000 per day “when he works”.
dailypost.co.uk/news/north-wales-news/gwynedd-web-designer-kicked-partner-12566030
He also Facebooks this nonsense