Traffic Monsoon default judgment granted ($2.5 mill)
Following a motion request for default judgment filed last April, the SEC has secured a $2.5 million default judgment against Trafffic Monsoon.
The judgment also applies to owner and operator Charles Scoville.
As per a January 5th order, Scoville (right) is liable to the SEC for $2,537,642 for disgorgement. On top of that he’s been with a $2,426,749 civil penalty.
Together the amount Scoville owes the SEC is $4.96 million.
An injunction has also been granted, prohibiting Scoville from having anything to do with a “business model substantially similar to Traffic Monsoon”.
There is a reasonable and substantial likelihood that Scoville, if not enjoined, will violate securities laws in the future.
Scoville’s violations were very serious, resulting in tens of millions of dollars of losses to victims across the globe.
He has also engineered similar schemes in the past, demonstrating a propensity for creating online Ponzi schemes.
The granting of the injunction means the court has accepted the facts presented by the SEC “as true”.
The court also considers the extensive evidence presented in the preliminary injunction hearing as well as the exhibits attached to the SEC’s motion for a default judgment in determining whether it is entitled to the injunctive and monetary relief requested.
One take-away from the judgment is that Scoville insisting Traffic Monsoon wasn’t a Ponzi scheme did him nno favors.
The factor that weighs most heavily in favor of injunctive relief is the absence of any recognition on the part of Scoville that his conduct was illegal. In the preliminary injunction proceedings, Scoville consistently argued that his actions were legal and not a Ponzi scheme.
He argued for the return of all or part of the funds seized by the court so that he could perpetuate the AdPack scheme.
And in a letter that Scoville recently sent to the court, it is apparent that he is convinced that he has done nothing wrong.
In the absence of any recognition of the illegal nature of his conduct and without any assurances against future violations, the court concludes that injunctive relief is warranted.
Often when we see fraudsters enter into settlements with authorities, the reason given is that they could’t afford to go to court.
In reality it’s because, like Scoville, ultimately they’ll get steamrolled in court.
It’s one thing to post nonsense on Facebook and make YouTube videos for gullible investors. It is quite another to get a Judge to swallow the same nonsense.
As I understand it default judgment will clear Scoville out of any funds he received through Traffic Monsoon.
Scoville is currently serving a prison sentence after pleading guilty to attempted child sexual abuse. In September 2019 he was also indicted for wire and tax fraud.
When am I likely to get my money back please. Can somebody email me and let me know if I will be getting anything as I have lost just over $11.000.00.
Claims process wrapped up in April 2020. If you didn’t file a claim sorry for your loss.
How does Scoville begin to pay any of this money?
Before or after being locked away for all this time.
I don’t remember how much was frozen by paypal or any other accounts.
Does that count against what he owes?
I don’t know how any of this works.
I believe everything seized by the Receiver/SEC counts towards forfeiture/disgorgement but not the civil penalty.
Scoville is going to owe even more after the tax/wire fraud case and yeah, no idea how they handle that when he’s been cleaned out.
Has Scoville faced any criminal charges for:
1)TM Fraud, etc.
3)Perjury charges from his flat sale in the UK that he basically claimed was sold by a ghost.
Are all his TM related problems on the civil side so far?
After he gets out of the Utah State Prison for abusing the little boy, he should be back in jail for an much longer stretch for everything above.
He was indicted for tax/wire fraud late last year – https://behindmlm.com/companies/traffic-monsoon/charles-scoville-indicted-for-wire-and-tax-fraud/
The UK flat saga is still playing out. Only civil at this stage, no idea if it’ll go criminal if the Receiver can prove it was all baloney.
FYI: Pay back $5M? What a joke.
At the time, just before they yanked him he had amassed $25M as he was getting ready to open “”a bank” of his own, so the word was. I think it was in the Emirates.
Someone needs to do some digging around, the money is most likely there.