IMPORTANT UPDATE / JULY 2016:
The SEC (Securities and Exchange Commission) filed a complaint against Trafficmonsoon on July 26, 2016.
As a result, Trafficmonsoon is currently closed. The company and Charles Scoville are under an order freezing their assets (bank accounts, online processors,…).
It is too soon to predict whether (…) [it] will begin operating again. For now, based on the Court’s orders, Traffic Monsoon is not operating.
You will find below the official website which has been setup to communicate with the public:
In order to have a better understanding of this situation, I suggest you to read the full complaint under the “Key Court Documents” tab as well as the “FAQs” provided by Peggy Hunt.
Accordingly to the SEC:
Because of their profit-sharing component and the manner in which they operate, AdPacks constitute securities and, consequently, individuals who purchase AdPacks are investors.
Because all investor returns are funded through new investor contributions, the company operates as a classic Ponzi scheme.
Accordingly to Charles Scoville:
By using profit margins from sales and giving to customers who surf ads in the traffic exchange they call this a ponzi. I disagree. It’s not a ponzi at all because service buyers are customers.. truly not investors and there is always more than enough money to pay people what they have earned.
A Trafficmonsoon preliminary injunction hearing is scheduled on the 23rd September 2016.
The hearing has now been continued by the Court until November 1, 2016 at 10:00 am.
Initial Status Report should be filed and made available by the Court shortly.
Update on September 23, 2016: motions were filed by Charle’s attorney — Washburn, D
Accordingly to Charles…
What the motions are basically attempting to do is:
1. Clearly identify that Traffic Monsoon is not offering a security
2. Even if it was, the SEC doesn’t have jurisdiction over 90% of the business.
3. Get the business back up and running for people outside the USA.
4. Have funds released so people outside the USA can be paid what they have earned.
5. If needed to freeze funds while the court determines whether TM is a security, hold onto the amount of funds purchased by USA account holders minus the amount they have been paid.
6. No need for an aggressive receiver who is interfering with constitutional rights, but place funds in question into escrow instead.
7. Identify using precedent case law and statutes that Traffic Monsoon is a business offering advertising services and commissions, not a security offering any investment products. Whether profits exist in commissions paid to members, these profits are not the type associated with a security since they do not result from managerial efforts of others. (managing in terms of investing funds in some way intended to obtain profits and return money and profits back – this type of thing was not offered on Traffic Monsoon)