SEC Shuts Down Traffic Monsoon

Less than 2 weeks before the supposed date in which Charles Scoville said members would get their frozen Ad packs restored and the money owed to them, a new drama unfolds…

Traffic Monsoon Scam

If you haven’t heard the news yet, the SEC (U.S Securities and Exchange Commission) has filed a lawsuit against Traffic Monsoon and Charles Scoville.

The SEC claim Traffic Monsoon is a Ponzi.

In the past, Charles kept stating it is not a Ponzi because of the various ways in which revenue is generated by the company, for example sales of Cash links and Clicks you buy without buying an Addpack.

After the SEC got involved, it turns out that over 99% of the companies revenue is generated from the sale of Ad Packs. This by definition makes the company a Ponzi. The new money coming in from sales of Ad packs, pays the older members revenue shares. This is the Traffic Monsoon Scam.

You can read more about it here, directly on the SEC website.

Click here to See the Complaint PDF.

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Here are some excerpts:

This matter involves an ongoing Ponzi scheme and offering fraud operated by Charles David Scoville (“Scoville”) and Traffic Monsoon, LLC (“Traffic Monsoon”), headquartered in Murray, Utah. Scoville formed Traffic Monsoon in October 2014.

Since inception, defendants have taken in from investors approximately $207 million in sales of a product called the “Banner AdPack” (“AdPack”). Over 162,000 investors throughout the world have invested in AdPacks. As of the beginning of 2016, Traffic Monsoon was taking in approximately $25 million in cash each month.

Defendants solicit investors through Traffic Monsoon’s website and through YouTube videos featuring Scoville. The website states that Traffic Monsoon’s mission is “to provide high quality ad services for affordable prices, and share revenues for a perfect winning combination that will lead to the ultimate success of our customers.”

Defendants market Traffic Monsoon as a successful Internet advertising services company. They represent that it is a combination of an Internet traffic exchange, where users browse each others’ websites, and a pay-per-click program, where users are paid to click on others’ website banner ads. Defendants represent that its profit is derived from seven different highly desirable advertising products.

In reality, Traffic Monsoon’s advertising business is a illusion designed to obscure the fact that it is offering and selling a security in a pure Ponzi scheme. Over 99% of Traffic Monsoon’s revenue comes from the sale of AdPacks. The company has virtually no other revenue from any other source. All payments to investors are made out of these funds.

As of May 16, 2016, Traffic Monsoon had sold 15,225,689 AdPacks. For each such AdPack, however, it must deliver 1,000 visitors, amounting to 15 billion visitors total. As of July 24, 2016, however, the Traffic Monsoon website states that the company had “delivered 1,618,996,340 visitors to our member’s [sic] websites to date.” This is only about a tenth of what would be required by Scoville’s own program.

On January 11, 2016, PayPal notified Scoville that it was blocking any transfers of funds out of PayPal, while still allowing member funds to be deposited. On February 11, 2016, PayPal notified Scoville that it was freezing the Traffic Monsoon account completely for a period of 180 days.

Scoville did not disclose the PayPal freeze to investors until February 11, 2016, when he posted a news release on the Traffic Monsoon website and also posted another video on YouTube. During the intervening month, because PayPal was allowing investor funds in but not allowing them to be withdrawn, members who bought advertising services and transferred funds to Traffic Monsoon had no idea their funds would be frozen. Scoville, however, was aware of this fact.

The PayPal freeze expired on July 11, 2016.

Scoville has never disclosed to investors, whether on the Traffic Monsoon website or on YouTube, that the PayPal freeze has expired, and has never informed members that they can request that their AdPack purchases be reversed. Since the freeze was lifted he has been withdrawing funds, apparently for his own benefit, as quickly as possible.

In order to halt the ongoing fraud being perpetrated on investors, the Commission seeks a civil injunctive order against Traffic Monsoon and Scoville against further violations of the federal securities laws, as well as disgorgement, prejudgment interest and civil penalties from Traffic Monsoon and Scoville. The Commission also seeks emergency relief in the form of an ex parte temporary restraining order, a preliminary injunction, an ex parte asset freeze and order appointing a receiver over Traffic Monsoon and its customer funds, and the funds of Scoville, and an order prohibiting the destruction of documents, accelerating discovery, and requiring an accounting.

I was personally a member of Traffic Monsoon, I joined in September 2015, and I bought 50 ad packs, costing $2,500. This was the single largest amount I have ever “Invested” online and I knew at the time it could go horribly wrong, but I still did it.

Why? Because I saw lot’s of people making hundreds of dollars a day.

This is how Traffic Monsoon was sold to EVERYONE.

Charles and his followers keep stating that Revenue sharing is not guaranteed, and that you are buying advertising – yada yada…but WE ALL KNOW that EVERY SINGLE PERSON who joined Traffic Monsoon, joined TO PARTICIPATE IN REVENUE SHARING.

Nobody gave a shit about the Traffic. The Traffic sucked. Everyone knew it.

Most “Leaders” used the money from the Revenue Sharing to purchase Traffic elsewhere and promoted to their Teams to do the same.

I had not withdrawn more than $300, with 152 active Ad packs when the “Paypal Freeze” occurred in February this year. It happened JUST as I was about to start taking money out regularly to buy traffic elsewhere.

Charles Scoville
Charles Scoville – Do you Trust this Man?

At that point, I decided to no longer promote Traffic Monsoon, and vowed never to put any more money in.
I was sitting patiently on the sidelines waiting/hoping that the freeze would end as scheduled on the 12th of August.

I started to consider the money gone, but held out in hope. I never bad mouthed TM, but I never actively promoted it either. I noticed a lot of people who raised valid concerns in Facebook groups get disowned by Admins, some getting their TM accounts blocked, I wanted to avoid this.

But since the news of the SEC appointing a Receiver, I have now lost all hope of ever seeing my money again, and now I am convinced that it is a Ponzi as claimed by the SEC.

There is a slim chance the SEC could refund everybody, but I will not hold my breath.

I no longer trust a word from Charles Scoville or any of his followers. I stopped doing my daily clicks days ago. There are still a lot of die hard followers logging in daily and doing their clicks – I am unsure if this is blind faith in Traffic Monsoon or an elaborate ploy to keep people clicking by claiming “There will be positive news soon, keep clicking!”

No chance.

This was my first true major loss to an online scam. Lesson learned.

***UPDATE – 03/08/2016***

Charles posted the below update to several Facebook Groups. Charles has a habit of posting all updates in Facebook groups rather than to the website. I never understood why, I understand why it might be the case now, if the SEC have taken over the site. Maybe the SEC should post some information on the website if that is the case though? Hmm.

Charles talks of another 180 days to a resolution, here we go again…I ain’t waiting this time. Shame that so many people will still believe and still wait it out.The poor lady in the comments below quit her job to do Traffic Monsoon full time, and now risks losing everything:Is Traffic Monsoon a Scam?

Notice how she states she joined for the Revenue Sharing, not the advertising?

***UPDATE – 05/08/2016***

The Traffic Monsoon website has been shut down. But according to Charles, it could be a DDOS attack:

Traffic Monsoon Down
Was it really a DDOS attack? I don’t think so.
And apparently Charles runs this $200m+ business using a host which cannot be contacted at certain times of the day. Nice.

Naturally there is a HUGE SH*TSTORM going down on Facebook. If Traffic Monsoon IS legitimate and DOES come back (hah) – then there will be no followers of Charles left at this rate.

 

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Have you been affected by this insane scam? I would love to hear from you, please leave a comment below

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Dave
Hey there, I'm Dave Dixon, and I am the founder of LearnOnlineMoneyMaking.com.

It is my aim to help others avoid online scams and to learn how to Make Money Online.

Feel free to connect with me on my social channels above, or drop a comment here and I will do my best to get back to you soon.

This article has 18 Comments

  1. Just tried to withdraw $24.57 from TM. TM not allowing withdrawals. The message states ‘Withdrawals are turned off during revenue sharing. Withdrawals are turned back on at 5 mins after the top of the hour. Please try your request in a afew minutes. Thank you.’ I tried to withdaw at 07:06. Withdrawal denied.

    1. Hi Quin,

      From what I gather no withdrawals or deposits are being processed whilst the SEC conducts it’s investigation. Did you lose much money to Traffic Monsoon?

      The only outcome I envisage is Traffic Monsoon closing down, but it is not over yet, we will see.

      Peace,

      Dave

  2. Losing money in Ponzi scheme is bad. Real bad. But that’s just before people are gullible into believing anything that can cut them a shortcut to wealth and freedom. But the world doesn’t work that way. Anything worthwhile will require us to put an effort into it. With lots of trial and error in the process.

    1. Hi Kenny Lee,

      Thanks for your comment, I agree totally. Traffic Monsoon was my first involvement in such online schemes. I have learned that lesson and now I am truly focussed on building my own authoritative websites and following the practices that Wealthy Affiliate teach.

      Peace,

      Dave

  3. Wow, this is terrible news for those and yourself who invested into this scheme. And I remember the marketing was all over the place for this company. Just shows that you can never be too careful.

    Surely Pay Pal must be able to refund some of the disgruntled clients in this case, as I have had refunds from them in the past with products I was not happy with?

    1. Hi Michel,

      Thanks for your thoughts. Yes indeed it was. I have actually contacted my bank today to attempt to get a refund. I learned of somebody who recently got a refund by contacting their bank. They paid through paypal using bank funding, like me. Apparently there is more protection and longer time-frames for claims in these instances. I will keep you all posted if it is successful.

      Peace,

      Dave

        1. Hi Arthur,

          Unfortunately not.

          I am holding out to see what happens with the SEC, apparently Peggy Hunt will be writing to every Member. Did you put money into Traffic Monsoon?

          Peace
          Dave

  4. while it was kinda a ponzi type due lack of revenue products.
    Tm mentioned the knew this and wanted to work on products in the start of 2016.
    However with paypal freeze the were never able to do so.

    Not looking at the past. Purely based on tm it was the best of its kind. Simple indeed due the insane constant growth and honest instant cashout. without insane returns compared to some other sites. Giving it time. To look into other sides.

    Charles never expected this succes especialy after his many past failed sites.
    U cant become a business guy able to turn millions into real business overnight this takes years to get done in most cases.

    Time he was never given even when he was running his program based on this field very smooth.

    Ofcorse now we will never know if he woud be able to turn some reserve into real revenue making products.
    But it cant be fully blamed on him this time.

    Ow and trust me im not happy with this all either were just a small team that dont really promote it either.
    and also have like combined 4k cash pending and over 900 packs together.

    1. Hi Mike,

      Thanks for your comment and thoughts. If what we read and hear about Charles is indeed true, about his past failures, and his efforts to make a legit business etc – then I agree, it can’t all be blamed on him.

      But we simply don’t know the truth. And that is the problem here, is what he claims true? Or is he still trying to keep trust from the people so they follow him into his next Scam? Nobody knows, but I am sick of waiting to find out. I no longer trust Charles Scoville, irrespective of whether he is a scammer or not, because how long until the next “failure”? And the next, and the next…

      His brainwashing no longer works on me, but it is a shame so many others are still under the spell.

      Peace,

      Dave

  5. I was not looking for a get rich quick scam. I was looking for a real business opportunity to build on. This is very upsetting. I have learned my lesson with this. I will go with my first thought which was to build my own business from scratch. No more multi-level scams that depend on other people joining in and supposedly creating new levels underneath.

    1. Hi Linn,

      I know the feeling. A lot of people were duped into believing it was a “Real Business” – it was nothing more than a cheap Ponzi cleverly disguised as a Traffic Exchange.

      It is a huge shame, what’s worse is that a lot of people still believe it and are willing to put more money into supporting Traffic Monsoon’s leaders STILL. It’s crazy.

      Peace
      Dave

  6. Iam not Interested in any twin or replica site of TM.

    I would love to see Charles Scoville resolves the issues with SEC

    back to usual business soonest

    Friends , family and older people depends on your service,

  7. This was one of those revenue sharing sites that dealed in advert packages right? I always had my suspicions about this platform because of their sketchy business model on offer.
    As far as I can tell it definitely is a ponzi but I am also aware that a LOT of people online invested in this program – I feel very, very sorry for them and their referrals

    1. Hi Chris,

      That’ts right. I fell for it too, for a while at least, unfortunately it was long enough to lose all the money I put into it. It’s a shame there are so many similar scams out there that people fall for daily.

      Dave

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