Special Master to decide unresolved Traffic Monsoon claims
Unresolved Traffic Monsoon victim claims are holding up distribution payments.
As ordered by the court, 508 unresolved claims will now be decided by a Special Master.
As laid out by the Traffic Monsoon Receiver in a July 29th motion;
A total of 23,220 Proofs of Claim were submitted to the Receiver by persons claiming to be Traffic Monsoon investors.
There currently exist 508 Investor Claims asserting claims that remain unresolved.
Each Investor Claim is an Unresolved Claim at this time because the Receiver objected to the Claim in accordance with the Approved Objection Procedures, the claimant filed a response, and the dispute in question has not been resolved through the Receiver’s approved settlement authority or otherwise.
I suspect the majority, if not all of these claims, are investors clinging onto ROI balances that don’t exist, or people who tried to game the system and can’t prove ownership of invested funds.
Following a July 8th Status Conference;
the “Court discusse[d] [the] need for appointment of a Special Master” and informed the Receiver that neither the Court nor the magistrate judges of this district will be able to timely review and adjudicate the Unresolved Claims due to the large number of Unresolved Claims and the status of the judges’ backlogged calendars resulting from the pandemic.
Given this information, the Receiver intends to submit a Motion requesting that the Court appoint a Special Master and approve procedures to be employed by the Special Master to adjudicate and resolve the Unresolved Claims.
Before she can do so, however, the Receiver submits that Federal Rule of Civil Procedure 53(b)(1) mandates that notice of the Court’s intent to appoint a master be afforded to the holders of the Unresolved Claims.
The Receiver’s motion seeks permission to inform disputed claim holders of the court’s intent to appointment of a Special Master, which was granted on August 2nd.
This paves the way for the court to appoint a Special Master, who is tasked with sorting out the remaining unresolved claims.
Once those claims are resolved, Traffic Monsoon victims with valid claims can expect progress on distribution payments to resume.
As of April 2022 there are 18,039 claims worth $55.1 million waiting to be paid out. The Receivership at the time held $50.1 million.