UPDATE

Please be advised that on February 13, 2024, the Receiver filed his Motion for Approval of Proposed Plan of Distribution (the “Motion”). You can view a copy of the Motion by clicking here. You can view a copy of the Notice of Receiver’s Motion for Approval of Proposed Plan of Distribution by clicking here.

By filing the Motion, the Receiver is asking the Court to authorize him to distribute money to those parties who hold Allowed Claims. A list of all Allowed Claims is attached as Exhibit A to the Motion. If you hold an Allowed Claim you can determine the amount of your Allowed Claim and the proposed distribution by referencing your claim number on the list attached as Exhibit A to the Motion.

The Receiver's most recent status report is here.

THE RECEIVER HAS LEARNED THAT THERE ARE SCAMS CLAIMING THAT A DISBURSEMENT OR “DESBURSEMENT” OF FUNDS RELATED TO TRAFFIC MONSOON IS ONGOING. THESE SCAMS ALSO GIVE FALSE INFORMATION ABOUT HOW TO CONTACT “ADMIN” OF TRAFFIC MONSOON, NAMING THEMSELVES AS “TRAFFIC MONSOON OFFICIAL”. PLEASE DO NOT PROVIDE ANY INFORMATION IN RESPONSE TO THESE TEXTS, EMAILS, OR ONLINE/SOCIAL MEDIA POSTS, INCLUDING THOSE WITH THE LINK “t.me/Traffic MonsoonSupportOfficial” OR “Aimarketholdings.com”. IF YOU HAVE PROVIDED INFORMATION THROUGH THESE LINKS, PLEASE CANCEL YOUR SUBSCRIPTION IMMEDIATELY.

THE ONLY OFFICIAL ONLINE PRESENCE FOR THE RECEIVERSHIP ESTATE OF TRAFFIC MONSOON IS THIS WEBSITE. THE ONLY DISBURSEMENTS FOR ALLOWED CLAIMS WILL BE PAID BY THE RECEIVER AFTER THE COURT HAS APPROVED A PLAN OF DISTRIBUTION. THERE WILL BE NO REQUIREMENT FOR THOSE WITH ALLOWED CLAIMS TO PAY AN ACTIVATION FEE.

If you have any questions regarding the Motion, please email trafficmonsooninquiries@epiqglobal.com or call the Call Center at:
Toll-Free in North America: 888-522-8926
Outside of North America: +1-503-520-4483

To contact the Receiver, please click here.


FREQUENTLY ASKED QUESTIONS - CLAIMS AND DISTRIBUTION PROCESS

  • PLAN DISTRIBUTION MOTION/ORDER
    1. What is the Receiver’s Motion for Approval of Proposed Plan of Distribution?

    By filing the Receiver’s Motion for Approval of Proposed Plan of Distribution, the Receiver is asking the Court to authorize him to distribute money to those parties who hold Allowed Claims. The court has not approved the Distribution Plan to date.

    The Motion includes proposed procedures regarding the calculation and making of distributions, the collection of certain data to be eligible to receive a Distribution, and the opportunity to file objections to the Receiver’s Distribution Plan.

    The Distribution Schedule at Exhibit A of the Motion includes a list of the Allowed Claims. If you are an Allowed Claim Holder, you may find your allowed claim amount and proposed distribution by cross-referencing your claim number on the exhibit.

  • 2. Why did I receive a Notice of Receiver’s Motion for Approval of Proposed Plan of Distribution?

    Holders of Allowed Claims received a Notice of Receiver’s Motion for Approval of Proposed Plan of Distribution. The notice includes details about your allowed claim and the proposed distribution, subject to approval by the Court.

  • 3. I didn’t receive a Notice of the Receiver’s Motion for Approval of Proposed Plan of Distribution? Why?

    If you did not receive the Notice and you do not see your claim number listed in Exhibit A (Distribution Schedule) to the Receiver’s Motion for Approval of Proposed Plan of Distribution, that means you do not have an Allowed Claim and will not receive a distribution.

    If your claim number is listed in Exhibit A (Distribution Schedule) to the Receiver’s Motion for Approval of Proposed Plan of Distribution, but you did not receive the Notice by email, please check your spam or junk folder. If you still do not see the Notice in your inbox, please contact the Receiver by email at .

  • 4. How will I know when the court approves the Motion for Approval of Proposed Plan of Distribution?

    Holders of Allowed Claims that are entitled to a distribution will be provided notice within 7 days following the Court’s approval of the Distribution Plan. The online Distribution Portal will not be available until the Distribution Plan is approved.

  • 5. I need more time to submit an objection to the Distribution Motion. Can I email the objection to the court or to the Receiver?

    No. Objections to the Distribution Motion must be submitted by mail and received by the United States District Court for the District of Utah by March 18th, 2024. Email or mail submissions to the Receiver or to Epiq will not be accepted. To speed up the delivery, the Receiver suggests that you send objections via overnight mail or expedited courier. The Receiver will not reimburse you for shipping expenses.


  • 6. How do I object to the Receiver’s Motion for Approval of Proposed Plan of Distribution?

    If you oppose the Motion you must file an objection with the United States District Court for the District of Utah (the “Court”) by no later than March 18, 2024. Objections may be filed by mailing them to the Court at the following address:

    United States District Court,
    Orrin G. Hatch Courthouse
    Office of the Clerk
    351 S West Temple, Room 1.100
    Salt Lake City, UT 84101


    With a copy to the Receiver:

    Greenberg Traurig, LLP
    Attn: Michael F. Thomson
    222 S Main Street, Suite 1730
    Salt Lake City, UT 84101

    If you are filing an objection to the Motion, you must mail it so that it will be received by the Court by no later than March 18, 2024. Any late objection may not be considered by the Court. Objections sent to Epiq also will not be considered.


  • ALLOWED CLAIMS
    1. How do I find information about my Allowed Claim?

    The Holders of Allowed Claims will receive an email on or about February 16th with the Notice of Receiver’s Motion for Approval of Proposed Plan of Distribution (the “Notice”). This Notice will detail your allowed claim amount and proposed distribution amount.

    You may also find information about your Allowed Claim in the Receiver’s Motion for Approval of Proposed Plan of Distribution. The Motion includes a Distribution Schedule (see Exhibit A) listing details regarding all Allowed Claims. If you are an Allowed Claim Holder, you may find your allowed claim amount and proposed distribution by cross-referencing your claim number on the exhibit.

    If you did not receive the Notice and you do not see your claim number listed in Exhibit A to the Motion, that means you do not have an Allowed Claim.

    For more information, you can view a copy of the Motion for Approval of Proposed Plan of Distribution by clicking here, or by visiting https://dm.epiq11.com/case/traffic and clicking on the “Key Documents” tab and the folder called “Plan of Distribution”.

  • 2. Why is my Proposed Distribution less than my Allowed Claim?

    The Receiver does not have available funds to pay Allowed Claims in full.

    Holders of Allowed Claims are receiving an initial distribution equal to approximately 77.8% (the “Pro Rata Distribution Percentage”) of their Allowed Claims.

    The amount of the pro rata distribution percentage is calculated by dividing the total amount available for distribution in the amount of $43,818,051 by $56,326,662, the adjusted total amount of all Allowed Claims (exclusive of certain unresolved claims as described in the Receiver’s Motion for Approval of Proposed Plan of Distribution).

    If the amount of your Allowed Claim would result in a distribution of less than $100.00, your claim is considered “De Minimis” and the proposed distribution is $0.00. The Receiver has proposed that he shall not be required to make a distribution to the holder of an Allowed Claim if such distribution is in an amount less than $100.00. The Receiver has determined that the administrative and out-of-pocket costs involved in making distributions in amounts of less than $100.00 would not be cost-effective.

  • 3. Once a Distribution Plan is approved, how will a distribution be sent?

    Pursuant to the Motion for Approval of Proposed Plan of Distribution (the “Motion”), the Receiver proposes to provide distributions by wire or check.

    The Receiver strongly recommends initiating your payment by wire. The Receiver is not responsible for lost or stolen checks.

    Under the proposed procedures, the holders of Allowed Claims will need to provide the necessary payment information in the online Distribution Portal within 90-days of the Distribution Plan being approved by the Court. If an Allowed Claim holder does not provide Wire Information, the Receiver will mail a check which shall be drawn in United States dollars on a United States domestic bank. The Receiver will provide the holders of Allowed Claims an opportunity to update their mailing address on the online Distribution Portal.

    Note, Holders of Allowed Claims that will receive a distribution will be provided notice within 7 days following the Court’s approval of the Distribution Plan. The online Distribution Portal will not be available until the Distribution Plan is approved.

    For more information, you can view a copy of the Motion for Approval of Proposed Plan of Distribution by clicking here, or by visiting https://dm.epiq11.com/case/traffic and clicking on the “Key Documents” tab and the folder called “Plan of Distribution”.

  • 4. What is a De Minimis Allowed Claim? If I have a De Minimis allowed claim, will I get a distribution?

    The Receiver has proposed that he shall not be required to make a distribution to the holder of an Allowed Claim if such distribution is in an amount less than $100.00 (a “De Minimis Claim”). The Receiver has determined that the administrative and out-of-pocket costs involved in making distributions in amounts of less than $100.00 would not be cost-effective.

  • 5. My allowed claim amount is incorrect. Can I correct this?

    No. The allowed claim amount disclosed to you is final. The opportunity to correct your claim amount has passed.


  • 6. I asserted my claim amount in GPB (pounds) or some other non-US currency. My claim should be higher after converting my claim to USD. Can I correct the Allowed Claim amount?

    No. The allowed claim amount disclosed to you is in US dollars (USD) and is final. The opportunity to correct your claim amount has passed.


  • 7. My claim is not listed in Exhibit A (Distribution Schedule) of the Receiver’s Motion for Approval of Proposed Plan of Distribution. Why?

    If you do not see your claim number listed in Exhibit A (Distribution Schedule) to the Receiver’s Motion for Approval of Proposed Plan of Distribution, that means you do not have an Allowed Claim and will not receive a distribution.


  • DISTRIBUTION
    1. Will I need to provide the Receiver with information in order to receive a distribution?

    Yes, under the proposed procedures, Holders of Allowed Claims will need to provide information through an online Distribution Portal, including (i) a Release, (ii) an applicable Tax Form, (iii) an OFAC Certificate, and (iv) Wire Information or mailing address (collectively, the “Required Information”). Under the proposed procedures, once the Court approves the Distribution Plan, Holders of Allowed Claims will need to provide the Required Information in the online Distribution Portal within 90-days of the Distribution Plan being approved by the Court. Note, Holders of Allowed Claims that will receive a distribution will be provided notice within 7 days following the Court’s approval of the Distribution Plan. For more information, you can view a copy of the Motion for Approval of Proposed Plan of Distribution by clicking here, or by visiting https://dm.epiq11.com/case/traffic and clicking on the “Key Documents” tab and the folder called “Plan of Distribution”.

  • 2. Will you pay me in USD or in my currency?

    The Allowed Claim Amount and Proposed Distribution Amount disclosed to you is in US Dollars (USD). The funds will be sent in USD to either the bank account you provide or via a check drawn on a US Bank payable in USD.


  • 3. Can I get my money back now?

    No, pursuant to the Preliminary Injunction entered by the U.S. District Court for the District of Utah, all funds held by the Receiver must remain frozen until the Court authorizes otherwise. Generally, there is a two-step process: first, Proofs of Claim are submitted to the Receiver; and second, after the deadline to submit Proofs of Claim has passed and claims are allowed, the Receiver requests Court approval of a plan of distribution. No funds will be distributed outside a Court-approved plan of distribution.

    ANY REPRESENTATION THAT A DISTRIBUTION WILL BE MADE OUTSIDE OF THE RECEIVERSHIP IS FALSE AND SHOULD BE IGNORED. THE RECEIVER WILL CONTACT YOU BY EMAIL WHEN A DISTRIBUTION HAS BEEN APPROVED.

    PLEASE CONTACT THE RECEIVER IF YOU ARE ASKED TO PROVIDE INFORMATION TO RECEIVE A DISTRIBUTION. NEVER PAY AN “ACTIVATION FEE” WITH A PROMISE OF A DISTRIBUTION. REQUESTS OF THIS SORT ARE SCAMS AND SHOULD BE IGNORED.

    At this time, the deadline to submit Proofs of Claim to the Receiver has passed and the Receiver is dealing with objectionable claims. After the claim objection process has been completed the Receiver will propose a plan of distribution.

  • 4. What information do I need to provide to the Receiver to receive a distribution? What happens if I don’t provide the Required Information through the Distribution Portal?

    Under the proposed procedures, Holders of Allowed claims will need to provide information through an online Distribution Portal, including (i) a Release, (ii) an applicable Tax Form, (iii) an OFAC Certificate, and (iv) Wire Information or mailing address (collectively, the “Required Information”).

    The Receiver has proposed that Holders of Allowed Claims that fail to provide the required information thru the Distribution Portal will forfeit their distribution.

    The Receiver has proposed that Holders of Allowed Claims that fail to provide the Required Information through the Distribution Portal within 90 days after the entry of an Order approving the Plan of Distribution shall be deemed to have forfeited any distribution to which they would otherwise be entitled (a “Forfeited Distribution”). Forfeited Distributions shall be deemed forfeited automatically on the 91st day after entry of the Order approving the Plan of Distribution.

    Note, Holders of Allowed Claims that are eligible to receive a distribution will be provided notice within 7 days following the Court’s approval of the Distribution Plan.

    For more information, you can view a copy of the Motion for Approval of Proposed Plan of Distribution by clicking here, or by visiting https://dm.epiq11.com/case/traffic and clicking on the “Key Documents” tab and the folder called “Plan of Distribution”.

  • 5. Will there be subsequent distributions after the Initial Distribution?

    It is anticipated that there may be one additional distribution in this case, which will likely happen after a resolution is reached on certain large, disputed claims (the PayPal Claim, Mailed Claim, and Disputed Claims, as referenced in the Receiver’s Motion for Approval of Proposed Plan of Distribution), and after the Receiver has fulfilled his duties with respect to the other potential assets.

    The Receiver will file an additional motion with the Court to approve any future distribution, which will disclose the amount that the Receiver proposes distributing and the distributions that will be made under the distribution method proposed at that time.

  • 6. When can I submit my tax information and payment information through the Receiver’s online Distribution Portal? What is the deadline for providing tax and payment information into the Distribution Portal?

    The Receiver will make the Distribution Portal available once the Court approves the Distribution Plan.

    Under the proposed procedures, once the Court approves the Distribution Plan, Holders of Allowed Claims will need to provide the necessary payment and tax information in the online Distribution Portal within 90-days of the Distribution Plan being approved by the Court.

    Note, Holders of Allowed Claims that will receive a distribution will be provided notice within 7 days following the Court’s approval of the Distribution Plan.

    For more information, you can view a copy of the Motion for Approval of Proposed Plan of Distribution by clicking here, or by visiting https://dm.epiq11.com/case/traffic and clicking on the “Key Documents” tab and the folder called “Plan of Distribution”.

  • 7. Can I email the Receiver my tax forms and other required information for the distribution?

    No, documents received by email will not be considered.

    All information that is required to receive a distribution must be submitted through the Distribution Portal.

    The online Distribution Portal will not be available until the Distribution Plan is approved by the Court. Holders of Allowed Claims that are eligible to receive a distribution will be provided notice within 7 days following the Court’s approval of the Distribution Plan.

  • 8. Will the Receiver withhold taxes from my distribution?

    The Receiver is seeking authorization to hold back applicable taxes, remit applicable taxes to the applicable tax authority, and to comply with all tax withholding, reporting, and record keeping requirements, including with respect to U.S. federal income taxes required to be withheld on distributions to non-U.S. holders of Allowed Claims. The Receiver is seeking authorization to take any and all actions that may be necessary or appropriate to comply with such withholding and reporting requirements.

    The Receiver will not withhold taxes from a distribution for United States persons that provide a properly completed and executed IRS Form W-9 (which includes the correct U.S. person’s Social Security Number or Employer Identification Number).

    For all other foreign holders of Allowed Claims who provide a completed and executed IRS Form W-8, the Receiver will withhold up to 30% of the distribution for taxes. The amount withheld depends on the country of residence of the Claimant, and any applicable laws, treaties, or agreements by and between the U.S. and your country of residence. For more information about what withholding is applicable to you, you may visit https://www.irs.gov/ and https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z.

    For the avoidance of doubt, any holder of an Allowed Claim that does not properly complete and execute the applicable Tax Form will not receive a distribution.

    The Receiver will not provide tax advice. Please consult an attorney or tax professional if you have additional tax questions.

  • 9. I am a United States resident. Will the Receiver send me a 1099 tax form for my distribution?

    If you are a U.S. resident and your distribution amount is $600 or greater, the Receiver plans to send you a 1099-MISC to the mailing address you provide in the Distribution Portal.


  • OFAC CERTIFICATION
    1. I am unable to answer “yes” to all or parts of the OFAC certification. Can I receive my distribution?

    No. If you cannot answer “yes” to all or part of the OFAC certification you will not be able to receive a distribution.


  • 2. How do I know if my country is subject to sanctions or other Executive Orders by the US Government that prevent the money being sent to me?

    Information concerning the various U.S. sanctions laws, regulations, and Executive Orders is available on the website of the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) at https://ofac.treasury.gov.


  • 3. I cannot receive a check or wire from the Receiver because the country where I reside is subject to sanctions or other Executive Orders by the US Government that prevent the transaction. May I still receive my distribution?

    No. If sanctions or other Executive Orders by the U.S. Government prevent the sending of U.S. funds to the country you reside in you will not be able to receive a distribution.



  • CHANGE OF ADDRESS
    1. My name changed. How do I update the Receiver with my name change?

    If your name has changed, please email TrafficMonsoonInquiries@epiqglobal.com and attach documentation evidencing the name change. In the email, please include reference to your claim number, your original name, and your new name. The Receiver will not process name changes without proper documentation.


  • 2. How do I submit an address update?

    Please send an email to with your request for an address change. Include your previous and updated address, and your Proof of Claim number, if known.


  • 3. The claimant is deceased. How do I update the Receiver with new beneficiary information?

    If Claimant is deceased and a new beneficiary has all rights, title and interest in an Allowed Claim, please email TrafficMonsoonInquiries@epiqglobal.com and attach official documentation evidencing the death of the Claimant (ie, a death certificate), and documentation evidencing the new party’s beneficial interest in the claim. Acceptable documentation may include death certificates, copies of an order appointing you as a personal representative, etc. In the email, please include reference to the claim number, the deceased Claimant’s name, and the new beneficiary’s name. The Receiver will not process beneficiary changes without proper documentation.



  • CLAIMS PROCESS
    1. What is a Proof of Claim?

    A Proof of Claim is a written statement stating the amount you believe you are entitled to be paid from Traffic Monsoon or Charles David Scoville. Proofs of Claim were required to be submitted to the Receiver by no later than April 10, 2020. Proofs of Claim are no longer being accepted in this matter.

  • 2. Is there a Deadline to Submit a Proof of Claim?

    Yes. Your Proof of Claim must have been submitted to the Receiver by April 10, 2020. Failure to have submitted a Proof of Claim prior to April 10, 2020 resulted in your claim being barred and disallowed.


  • 3. What is the Consequence of Failing to Submit a Proof of Claim by the Deadline?

    You were required to submit a Proof of Claim by April 10, 2020. If you did not file a Proof of Claim by the deadline, any claim you may have asserted is forever barred and disallowed.

  • 4. If I have questions about the claims process, how can I get them answered?

    The Receiver cannot give you legal advice. But, general information about the claims process can be obtained by emailing the Receiver at TrafficMonsoonInquiries@epiqglobal.com.

    Alternatively, you can call the Traffic Monsoon Receivership Hotline at:

    Toll-Free in North America: 888-522-8926
    Outside of North America: +1-503-520-4483



  • 5. How will I know if the Receiver objects to my claim?

    If the Receiver objects to your claim, you will be sent notification via electronic mail. The objection document will explain the basis of the objection(s) and the process for responding to the objection(s).



  • 6. Will I get all of my money back?

    If you have an allowed claim, you should receive a share of the money held by the Receiver. You cannot have an allowed claim unless you submitted a Proof of Claim prior to April 10, 2020, or obtained an order from the U.S. District Court for the District of Utah allowing a Proof of Claim filed after April 10, 2020.



FREQUENTLY ASKED QUESTIONS - GENERAL

  • 1. Who is the Receiver?

    Peggy Hunt was originally appointed by the U.S. 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. Pursuant to Docket 552, Peggy Hunt has been discharged as the Receiver, and Michael F. Thomson has been appointed Receiver. Mr. Thomson is an attorney located in Utah.

  • 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 distribute available assets in accordance with a plan approved by the Court.

  • 3. Is the Receiver my lawyer?

    No. The Receiver is an agent of the Court and is carrying out 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.

  • 4. What happened at Traffic Monsoon?

    On July 26, 2016, the Securities and Exchange Commission filed a Complaint in the U.S. 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. The Receiver was appointed at that time, pending the Court’s entry of a preliminary injunction. The Receiver promptly took control of all known assets (Order Appointing Receiver and Amended Order Appointing Receiver), which included over $49 million in cash.

    Mr. Scoville contested the entry of a preliminary injunction and moved to set the receivership aside. After an evidentiary hearing, the Court declined to set aside the receivership and issued a preliminary injunction, preventing Traffic Monsoon from operating. As part of this decision, the Court held that Traffic Monsoon was likely 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. Mr. Scoville appealed, but the Court’s orders have been upheld and there is no further avenue to appeal.

    The Receiver will distribute the cash she holds to those persons who lost money as a result of their involvement with Traffic Monson and who hold allowed claims.


  • 5. 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.

  • 6. Does this mean I won't be getting my revenue payout?

    Not at this time, as all assets have been frozen. Because the Court held that Traffic Monsoon was likely operated as a Ponzi scheme, you likely 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.

  • 7. I thought that Traffic Monsoon had access to our payouts that have been held in PayPal?

    At the time that the SEC filed its case against Traffic Monsoon and Mr. Scoville, approximately $49 million was held in various accounts. These accounts were frozen and the Receiver is holding that money as part of the receivership estate. During her appointment, the Receiver has secured additional funds which are being held as part of the receivership estate.

  • 8. How can I stay informed of progress in this case?

    The best way to receive updates in this case is through the website established by the Receiver, (www.trafficmonsoonreceivership.com).

    The website includes copies of documents that have been filed with the Court and information about the claims process. It also has updates from the Receiver about events in this case.


  • 9. If I have general questions, how can I get them answered?

    You can email the Receiver at TrafficMonsoonInquiries@epiqglobal.com.


  • 10. Should I hire a lawyer?

    While the Receiver cannot provide you legal advice, you certainly have the right to hire or consult with your own lawyer.

  • 11. Should I send copies of my documentation to the Receiver?

    Not unless you deem it necessary to provide documentation in response to objections to a Proof of Claim. Note, do not send any original documents to Epiq or the Receiver, as they will not be returned to you.

  • 12. Is it possible that Traffic Monsoon will begin operating again?

    No. As a result of the Court entering a preliminary injunction and finding that Traffic Monsoon was likely operated as a Ponzi scheme, Traffic Monsoon will not operate again. In addition, the Court has ordered Mr. Scoville to no longer engage in a business model similar to Traffic Monsoon.

  • 13. Will Charles Scoville be arrested?

    Criminal charges are not the responsibility of the Receiver. That will be determined by appropriate government authorities.

  • 14. I have information for the SEC, who can I reach out to there?

    If you have information related to the investigation, please email TrafficMonsoonInquiries@epiqglobal.com.

General Information

This website is the best way to obtain information about this case - DO NOT OBTAIN INFORMATION FROM ANY OTHER SOURCE INCLUDING THROUGH SOCIAL MEDIA CLAIMING TO BE “OFFICIAL”.

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 Greenberg Traurig, 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 injunction 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.

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. 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 appealed the District Court’s orders, and on January 24, 2019, the Court of Appeals for the Tenth Circuit filed its Opinion affirming the District Court in all respects. The Tenth Circuit held that (1) U.S. securities laws apply to offers to sell, and sales of, AdPacks to Traffic Monsoon members located outside of the United States, (2) AdPacks are securities, and (3) it is likely that the SEC can prove that Mr. Scoville’s and Traffic Monsoon’s conduct violated security law anti-fraud provisions –specifically, that the District Court did not abuse its discretion in determining that the SEC is likely to prove that Traffic Monsoon was operated as a Ponzi scheme. After obtaining numerous extensions of time, Mr. Scoville filed a Petition for a Writ of Certiorari in the U.S. Supreme Court on June 21, 2019. On November 4, 2019, Mr. Scoville’s Petition for a Writ of Certiorari was denied. Criminal charges have been brought against the defendants. For information, please click here.

Key Parties

  • Receiver's Contact Information

    Receiver's Contact Information

    Michael F. Thomson, Esq
    Traffic Monsoon Receiver
    Greenberg Traurig, LLP
    222 South Main Street, Suite 1730
    Salt Lake City, Utah 84101

    Traffic Monsoon Receivership Hotline
    Toll-free in North America 888-522-8926
    Outside of North America +1-503-520-4483
    Traffic Monsoon Receivership Email: TrafficMonsoonInquiries@epiqglobal.com
  • Claims Special Master

    Claims Special Master

    Melanie J. Vartabedian, Esq.
    Claims Special Master
    Ballard Spahr LLP
    One Utah Center, Suite 800
    201 South Main St
    Salt Lake City, UT 84111-2221

Receiver’s Reports

  1. Receiver's Twenty-First Status Report
  2. Receiver's Twentieth Status Report
  3. Receiver's Nineteenth Status Report
  4. Receiver's Eighteenth Status Report
  5. Receiver's Seventeenth Status Report
  6. Receiver's Sixteenth Status Report
  7. Receiver's Third Status Report Regarding Omnibus Objections to Claims
  8. Receiver’s Fifteenth Status Report
  9. Receiver's Fourteenth Status Report
  10. Receiver's Thirteenth Status Report
  11. Receiver’s Twelfth Status Report
  12. Receiver’s Status Report Regarding Omnibus Objections to Claims
  13. Receiver's Eleventh Status Report
  14. Receiver's Tenth Status Report
  15. Receiver's Ninth Status Report
  16. Receiver's Eighth Status Report
  17. Receiver's Seventh Status Report
  18. Receiver's Sixth Status Report
  19. Receiver's Fifth Status Report
  20. Receiver's Fourth Status Report
  21. Receiver's Third Status Report
  22. Receiver's Second Status Report
  23. Letter To Investors
  24. Receiver's Status Report
  25. Declaration of Receiver Peggy Hunt (Business Operations)
  26. Declaration of Receiver Peggy Hunt (Communications)

Scoville Appeal Documents

Documents filed in the Appeal can be accessed here.

Epiq Team