Traffic Monsoon Receivership

  • General Information
  • Contact Information
  • Receiver's Reports
  • FAQs
  • Key Court Documents
  • Scoville Appeal Documents

UPDATE

On August 30, 2018, the Receiver filed her Sixth Status Report with the Court. The Report can be accessed here.

To contact the Receiver, please click here. To provide information to the Receiver, including updated contact information, please click here.




QUESTIONNAIRE

Traffic Monsoon did not maintain business records and the Receiver is working to recreate those records. You may provide information to the Receiver about your Traffic

Monsoon investment, including updated contact information, here.



General Information

This website is the best way to obtain information about this case.

To contact the Receiver, please click here

Summary of Case


On July 26, 2016, the Securities and Exchange Commission filed a Complaint in the United States District Court for the District of Utah against Traffic Monsoon, LLC, a Utah limited liability company, and Charles David Scoville (the “Defendants”)). See SEC v. Traffic Monsoon, LLC et al., Case No. 2:16-cv-00832-JNP (D. Utah). The SEC claims, among other things, that between October 2014 and July 26, 2016, the Defendants engaged in securities fraud and operated a Ponzi scheme. It is alleged that the Defendants took approximately $207 million from over 162,000 investors through the solicitation of a revenue sharing product known as an “AdPack”. The Court also entered a Temporary Restraining Order and Order Freezing Assets which was subsequently amended, and an Order Appointing Receiver, appointing Peggy Hunt of Dorsey & Whitney LLP, as the receiver for the assets of Traffic Monsoon and Mr. Scoville, pending a determination as to whether a preliminary injunction should be entered in this case. At that time, the Receiver promptly took control of known assets and commenced an investigation.


Mr. Scoville thereafter contested the entry of a preliminary injunction, and filed a Motion to Set Aside the Receivership. An evidentiary hearing on those matters was scheduled to commence on November 1, 2016 (the “Preliminary Injunction Hearing”). Prior to the Preliminary Injunction Hearing, the Receiver filed two Declarations summarizing her investigation as of October 2016 as follows: Declaration of Receiver Peggy Hunt (Communications) and Declaration of Peggy Hunt (Business Operations). At the preliminary injuction hearing, the Court received evidence from both the SEC and Mr. Scoville over a two-day period, and then heard several hours of legal argument. At the close of the Preliminary Injunction Hearing on November 30, 2016, the Court took the matters under advisement to consider the evidence and the law prior to making a decision.


On March 28, 2017, the Court entered a Preliminary Injunction, a Memorandum Decision and Order Granting a Preliminary Injunction and Denying the Defendants’ Motion to Set Aside the Receivership, and an Amended Order Appointing Receiver. You should review each of these documents. In its Memorandum Decision, the Court held, among other things, that the SEC had made a showing that it was likely to prevail in establishing that Traffic Monsoon was operated as a Ponzi scheme. The Court has enjoined the Defendants from operating Traffic Monsoon or a business model substantially similar to Traffic Monsoon’s sale of AdPacks. The Court has also frozen all assets and stayed all litigation. Finally, the Court has rejected Mr. Scoville’s request to set aside the receivership, and has appointed Ms. Hunt to serve as Receiver for the purpose of marshalling and preserving all of Traffic Monsoon’s assets and all of Mr. Scoville’s assets that were obtained directly or indirectly from Traffic Monsoon. Mr. Scoville has appealed these orders and that appeal is pending.


Contact Information

Peggy Hunt, Esq
Traffic Monsoon Receiver
Dorsey & Whitney LLP
111 S. Main Street, Suite 2100
Salt Lake City, UT 84111-2176

Traffic Monsoon Receivership Hotline
Toll-free in North America 888-522-8926 or outside of North America +1-503-520-4483

Traffic Monsoon Receivership Email
trafficmonsoon.receiver.inquiries@dorsey.com

Frequently Asked Questions

  1. 1. Who is the Receiver?
    Peggy Hunt has been appointed by the Federal District Court for the District of Utah as the Receiver for Traffic Monsoon and the assets of Charles Scoville that were obtained directly or indirectly from Traffic Monsoon. Ms. Hunt is an attorney located in Utah.
  2. 2. What is a Receiver?
    The Receiver is the individual who assumes responsibility for all assets in receivership in the action brought by the SEC. She is responsible for investigating how the business was operated and where all of the assets are located. Ultimately, the Receiver will determine the amounts owed to investors and will distribute available assets in accordance with a plan approved by the Court.
  3. 3. What happened at Traffic Monsoon?

    On July 26, 2016, the Securities and Exchange Commission filed a Complaint in the United States District Court for the District of Utah against Traffic Monsoon, LLC, a Utah limited liability company, and Charles David Scoville. The SEC alleged that Traffic Monsoon was operated as a Ponzi scheme and engaged in securities fraud. A receiver was appointed at that time, pending the Court’s entry of a preliminary injunction. The Receiver promptly took control of all known assets.

    Mr. Scoville contested the entry of a preliminary injunction and moved to set the receivership aside.

    After an evidentiary hearing, the Court refused to set aside the receivership and issued a preliminary injunction, preventing Traffic Monsoon from operating. As part of this decision, the Court held that that the Commission had made a strong showing that it would be able to prove that Traffic Monsoon was operated as a Ponzi scheme. The Court has also entered an order staying litigation and freezing Traffic Monsoon’s and certain of Mr. Scoville’s assets.

    At this point, Traffic Monsoon is no longer allowed to operate and people who purchased AdPacks may have claims against Traffic Monsoon for money that they lost. A return to those who have allowable claims will take some time inasmuch as Traffic Monsoon kept limited business records. The Receiver is in the process of recreating the records, which involves comparing hundreds of thousands of transactions on Traffic Monsoon’s computer servers with information provided by payment processing companies. As soon as this process is complete, the Receiver will be in a better position to propose how to distribute the money she is holding to those who have allowable claims in this case.

  4. 4. I cannot log into my account, when will I be able to?
    Pursuant to a Court order Traffic Monsoon is not legally allowed to operate, accounts have been locked and assets have been frozen.
  5. 5. Does this mean I won't be getting my revenue payout?
    Because it is likely to be shown that Traffic Monsoon operated as a Ponzi scheme, you will not have a claim for interest or earnings on amounts you invested. Claims will only be allowed in the amount of the cash that you lost, after taking into consideration all of the cash that you received.
  6. 6. I thought that Traffic Monsoon had access to our payouts that have been held in PayPal?
    All Traffic Monsoon assets have been frozen pursuant the Court’s order.
  7. 7.. Can I get my money back now?"

    No, pursuant to the Court’s Preliminary Injunction all funds must remain frozen until the Court authorizes otherwise.

    People who purchased AdPacks may have claims against Traffic Monsoon, but it will take some to determine who has allowable claims because Traffic Monsoon kept limited business records. The Receiver is in the process of recreating the records, which involves comparing hundreds of thousands of transactions on Traffic Monsoon’s computer servers with information provided by payment processors. As soon as this process is complete, the Receiver will be in a better position to propose how to distribute the money she is holding to those who have allowable claims in this case. You may provide information to the Receiver about the money you invested with Traffic Monsoon here.

  8. 8. Will I get all of my money back?

    It is too soon to determine how much investors will receive or when. But, because it is likely to be shown that Traffic Monsoon operated as a Ponzi scheme, you will not have a claim for interest or earnings on amounts you invested. Claims will only be allowed in the amount of the cash that you lost, after taking into consideration all of the cash that you received.


    The Receiver is committed to proposing a plan of distribution to those investors who lost money in this case as soon as possible. But, this will take some time inasmuch as Traffic Monsoon kept limited business records. The Receiver is in the process of recreating the records, which involves comparing hundreds of thousands of transactions on Traffic Monsoon’s computer servers with information provided by payment processors. As soon as this process is complete, the Receiver will be in a better position to propose how to distribute the money she is holding to those who have allowable claims in this case. You may provide information to the Receiver about the money you invested with Traffic Monsoon here.

  9. 9. How can I stay informed of progress in this case?
    Please visit this website which is maintained by the Receiver. It contains all of the information that the Receiver has to share with those who are interested in this case, including her quarterly status reports and documents that have been filed in the case.
  10. 10. How do I notify the Receiver that I was a customer/investor?
    You may provide information to the Receiver about the money you invested with Traffic Monsoon here.
  11. 11. If I have other questions, how can I get them answered?
    You can email the Receiver at Trafficmonsoon.receiver.inquiries@dorsey.com or contact the call center toll-free in North America at 888-522-8926 or outside of North America at +1-503-520-4483
  12. 12. Should I hire a lawyer?
    While we cannot provide you legal advice, you certainly have the right to hire or consult with your own lawyer. As authorized by the Court, however, the Receiver will be investigating all potential claims or methods of recovery that she can bring for the benefit of investors.
  13. 13. Should I send copies of my documentation to the Receiver?
    You may provide information to the Receiver about the money you invested with Traffic Monsoon here. At this link you will be asked, among other things, if you want to upload documents pertaining to your involvement with Traffic Monsoon.
  14. 14. Is the Receiver my lawyer?
    No. The Receiver is an agent of the Court and is effectuating the Court’s orders. The Receiver will, however, be investigating potential claims or methods of recovery that she can bring for the benefit of investors.
  15. 15. Will Traffic Monsoon be operating again?
    It is highly unlikely. The Court has issued a Preliminary Injunction and Memorandum Decision in this case prohibiting Traffic Monsoon from operating. Mr. Scoville has appealed that injunction, but no stay of the injunction has been issued.
  16. 16. How long does this normally take?
    There is no set timeline but you can expect that it will take some time to sort out.
  17. 17. Can I see the Complaint and Orders?
    Yes. These can be found at www.trafficmonsoonreceivership.com, under “Key Court Documents.”
  18. 18. Will Charles Scoville be arrested?
    Criminal charges are not the responsibility of the Receiver. That will be determined by appropriate government authorities.
  19. 19. I have information. How can I provide it to the Receiver?
    You may provide information to the Receiver about the money you invested with Traffic Monsoon here. If you have other information related to the investigation, not captured in the questionnaire, please email the Receiver at Trafficmonsoon.receiver.inquiries@dorsey.com. This email is monitored by the Receiver on a regular basis.
  20. 20. Do I have to fill out a claim form or other document to show my involvement with Traffic Monsooon?

    At this time, given the number of investors, the Receiver does not anticipate having those involved with Traffic Monsson submitting proof of their claims. Rather, she is working to recreate Traffic Monsoon’s business records to identify claimants and the amount of each claim. Once she is done with this work, the Receiver will recommend to the Court that claims, as calculated using the business records, be approved by the court. Parties will be given an opportunity to respond to the Receiver’s claim recommendation.


    In the meantime, however, if you have information about your involvement with Traffic Monsoon that you would like to share with the Receiver, including any updated contact information, you may do so here.












KEY COURT DOCUMENTS

  1. Temporary Restraining Order And Order Freezing Assets
  2. Order Appointing Receiver
  3. Amended Temporary Restraining Order and Order Freezing Assets
  4. Complaint
  5. Ex Parte Motion Seeking Authorization For Receiver To Pay Expenses Out Of The Ordinary Course Of The Administration And Operation Of The Receivership And Memorandum In Support
  6. Order Granting Ex Parte Motion Seeking Authorization For Receiver To Pay Expenses Out Of The Ordinary Course Of The Administration And Operation Of The Receivership And Memorandum In Support
  7. Receiver's Notice Regarding Expenses Of Defendant Charles David Scoville
  8. Defendant's Memo In Opposition to Motion TRO
  9. Motion To Set Aside Receivership
  10. Plaintiff's Reply In Support Of Motion For Preliminary Injunction
  11. Plaintiff's Opposition To Motion To Set Aside Receivership
  12. Plaintiff's Reply In Support Of Motion For Preliminary Injunction
  13. Plaintiff's Opposition To Motion To Set Aside Receivership
  14. Plaintiff's Opposition To Defendant's Motion For Leave To File Surreply
  15. Reply To Plaintiff's Opposition To Motion To Set Aside Receivership
  16. Response To Defendant's Surreply Dkt 47
  17. Defendant's Surreply To Plaintiff's Reply In Support Of Preliminary Injunction
  18. Response To Defendant's Surreply Dkt 49
  19. Notice of Errata To Dkt 49
  20. Plaintiff's Surreply In Opposition To Motion To Set Aside Receivership
  21. Declaration of Receiver Peggy Hunt (Communications)
  22. Declaration of Receiver Peggy Hunt (Business Operations)
  23. Amended Temporary Restraining Order
  24. Defendant's Memo of Points And Authorities -Response
  25. Plaintiff's Post-Hearing Brief In Support of its Motion For Preliminary Injunction
  26. [Proposed] Findings of Fact and Conclusions of Law
  27. Proposed Findings of Fact
  28. Receivers Post Hearing Statement
  29. Defendant's Motion To Dismiss
  30. Stipulated Motion to Continue Deadline to Respond to Defendant's Motion to Dismiss
  31. Receiver's Motion Seeking Authorization To Terminate Contract With Snoork, Return Services And To Pay Snoork
  32. Response to Receiver’s Motion Seeking Authorization to Terminate Contract With Snoork
  33. Receiver’s Reply to Response to Motion Seeking Authorization to Terminate Contract with Snoork
  34. Defendant's Opposition to Receiver's Motion Seeking Authorization to Terminate Contract with Snoork and Return Services and to Pay Snoork
  35. Response to Receiver's Motion Seeking Authorization to Terminate Contract with Snoork & Return Services and to Pay Snoork
  36. Preliminary Injunction
  37. Memorandum Decision and Order Granting Preliminary Injunction and Denying the Defendants’ Motions to Set Aside The Receivership
  38. Amended Order Appointing Receiver
  39. Order Granting Receiver's Motion Seeking Authorization to Terminate Contract with Snoork and Return Services and to Pay Snoork
  40. Notice of Interlocutory Appeal
  41. Stipulated Motion to Continue Deadline to Respond to Defendant’s Motion to Dismiss
  42. Receiver's Status Report
  43. Receiver's Notice of Abandonment of Personal Property (Vehicle)
  44. First Fee Application of Receiver and Professionals
  45. Receiver’s Motion to Establish Administrative Expense Payment Procedures
  46. Receiver’s Response Regarding Fee Payment Procedures
  47. Order Granting First Fee Application of Receiver and Professionals
  48. Order Granting in Part and Denying in Part Motion to Establish Fee Procedures
  49. Receiver's Second Status Report
  50. Second Interim Fee Application For Receiver and Receiver's Professionals
  51. Order Granting Second Interim Fee Application for Receiver & Receiver's Professionals
  52. Receiver's Third Status Report
  53. Third Interim Fee Application For Receiver and Receiver's Professionals
  54. Notice of Request For Payment By Receiver and Receiver's Professionals
  55. Order for Briefing
  56. Order Granting Third Interim Fee Application For Receiver and Receiver's Professionals
  57. Second Amended Order Appointing Receiver
  58. Receiver's Fourth Status Report
  59. Motion Seeking Approval to Use Receivership Assets
  60. Order Denying Motion Seeking Approval to Use Receivership Assets
  61. Motion Seeking Account and Turnover of Manchester Flat Sale Proceeds
  62. Reciever's Ex Parte Motion for OSC
  63. Declaration of P. Hunt Support Motion Seeking Account and Turnover of Manchester Flat Sale Proceeds
  64. Order Granting Motion Seeking an Order to Show Cause
  65. Charles Scoville's Response to Order to Show Cause
  66. Declaration of Shirley Scoville
  67. Response to Motion Seeking Accounting & Turnover of Manchester Flat Sales Proceedings
  68. Motion to Excuse Defendant from Hearing on OSC and from Complying with Subpoena
  69. Motion for Leave to File Sealed Document
  70. Order Granting Motion for Leave to File Under Seal
  71. Order Granting Motion Excuse Appearance and Excuse Compliance with Subpoena
  72. Receiver's Response to Charles Scoville's Response to Order to Show Cause
  73. Scoville's Status Report & Motion for Relief from Filing Future Status Reports
  74. Receiver's Fifth Status Report
  75. Fourth Interim Fee Application of Receiver & Receiver's Professionals
  76. Fifth Interim Fee Application for Receiver & Receiver's Professionals
  77. Receiver's Response to Motion for Relief from Filing Future Status Reports and Updates
  78. Notice of Change of Contact Info filed by Scoville's Attorneys
  79. Motion for Attorney's Fees and Memo in Support
  80. Joint Motion Stay Briefing on Scoville's Motion for Attorney's Fees
  81. Order Granting Joint Motion Stay Briefing on Scoville's Motion for Attorneys' Fees
  82. Response to Request for Further Info
  83. Receiver's Sixth Status Report
  84. Order Granting Receiver's 4th Fee Application
  85. Order Granting Receiver's 5th Fee Application
  86. Receiver’s Ex Parte Motion Seeking Authorization to Employ Noticing, Claims and Distribution Agent and Memorandum in Support
  87. Order Granting Receiver’S Ex Parte Motion Seeking Authorization To Employ Noticing, Claims And Distribution Agent And Memorandum In Support