Traffic Monsoon, also written as TrafficMonsoon, was an online advertising platform launched in October 2014 by Charles Scoville. It promised users returns on their investments through the purchase of advertising packages, commonly referred to as "AdPacks." These AdPacks were marketed as a way to earn consistent profits by sharing in the company’s revenue—primarily generated from new investors purchasing similar packages.
In July 2016, the U.S. Securities and Exchange Commission (SEC) filed a complaint against Traffic Monsoon and its owner, alleging the company was operating a Ponzi scheme and engaging in securities fraud. The SEC's investigation revealed that the company used funds from new investors to pay returns to earlier ones—an unsustainable and illegal practice. (Source)
The SEC froze all of Traffic Monsoon’s assets, and a court-appointed receiver took control to manage the recovery process. As of early 2024, around $43.8 million was reported available for distribution among $56.3 million in approved investor claims. That’s a potential 77.8% recovery rate for victims. (Source)
How Traffic Monsoon Scammed Investors?
1. Promising High Returns from AdPacks:
Traffic Monsoon attracted investors with high returns through the purchase of AdPacks. These were advertised as advertising services, but in reality, the revenue wasn't from advertising. Instead, it came from new users buying more AdPacks. This cycle is classic Ponzi scheme behavior.
2. Unsustainable Business Model:
Rather than selling actual services or products that generate independent revenue, Traffic Monsoon depended on constant recruitment of new members to keep money flowing. Once new recruitment slowed down, the system could no longer sustain payouts.
3. Lack of Transparency and Regulation:
The business was not registered with any legal or financial authorities. Traffic Monsoon failed to provide transparent, verifiable information about how money was being made, and most of the so-called “advertising services” had no real market value.
Traffic Monsoon's Court Case Final Update
The court case against Traffic Monsoon and Charles Scoville has been dragging on since 2016, with slow progress due to the complexity of tracing funds and verifying investor claims. However, based on our ongoing tracking, the SEC made the right decision to shut down this platform. Many other revenue-sharing platforms with similar models—like MyPayingAds, MyPayingCryptoAds, My24HourIncome, and others—collapsed on their own due to this unsustainable system.
🧑⚖️ SEC Enforcement and Legal Proceedings:
The U.S. Securities and Exchange Commission (SEC) filed a complaint against Traffic Monsoon LLC and its founder, Charles Scoville, on July 26, 2016. The SEC alleged that Traffic Monsoon operated as a Ponzi scheme, misrepresenting itself as an advertising company while deriving over 99% of its revenue from new investor funds rather than legitimate sales. SEC
In response, the court granted the SEC's motion for a preliminary injunction, extending the asset freeze and receivership initially established by a temporary restraining order. The court found a strong likelihood that Scoville would continue violating securities laws without an injunction. Descrybe
📜 Clawback Litigation and Victim Compensation:
The court-appointed Receiver initiated clawback litigation against top net-winners in the scheme to recover funds for victim compensation. As of September 30, 2024, the Receiver had secured default judgments and settlements totaling several million dollars. Notably, Imtiaz Aslam faced a $6.9 million default judgment, and Piotr Chajkowski settled for $1.02 million. BehindMLM
The Receiver's plan for victim compensation faced delays due to tax withholding issues for foreign claimants. As of July 2024, the Receiver sought a private letter ruling from the IRS to proceed without withholding up to 30% of distributions, aiming to maximize recovery for victims. BehindMLM
⚖️ Criminal Charges Against Charles Scoville:
In addition to the SEC's civil case, Charles Scoville faced criminal charges unrelated to Traffic Monsoon. In November 2018, he pled guilty to attempted child sexual abuse and was incarcerated in 2019. Due to his incarceration and the dissolution of Traffic Monsoon LLC, the Department of Justice moved to dismiss the wire and tax fraud indictment against him in August 2023, which the court granted. BehindMLM
📝 Ongoing Claims Process:
As of January 2025, victims who had previously filed claims but failed to submit necessary information were granted an additional 60 days to complete their submissions. The Receiver reported that 660 U.S. and 9,205 foreign claimants had submitted complete information, with claims totaling approximately $45.8 million. An additional 9,685 claimants had pending claims valued at around $13.7 million. BehindMLM
Why We Never Recommended Traffic Monsoon?
Even before the shutdown, we never recommended TrafficMonsoon. From the start, we warned our readers against such revenue-sharing schemes because:
- They depend solely on new members.
- They lack verified advertising value.
- They are often operated by people with a track record of failed or shady sites.
The founder, Charles Scoville, had previously been associated with other questionable platforms like InfinityBux, further destroying the credibility of Traffic Monsoon.
How to Protect Yourself from Similar Scams?
Here are some actionable tips to avoid being scammed by Ponzi-style online schemes:
1. Be Skeptical of Guaranteed High Returns:
Any platform promising you steady, high income with little or no risk is a red flag. All legitimate investments involve risk, and there’s no such thing as guaranteed profit.
2. Understand the Revenue Model:
If a platform makes most of its money from new investors, it's a pyramid or Ponzi scheme. You should clearly understand how a company makes its profits.
3. Check for Legal Registration:
Only invest in companies registered with legitimate financial or legal authorities. Look for SEC registration (in the US) or relevant regulatory licenses in your country.
4. Avoid Pressure Tactics:
If a platform urges you to act fast or “don’t miss out,” that’s often a scam tactic to stop you from doing proper research.
5. Consult a Licensed Financial Advisor:
Before investing your hard-earned money, talk to a licensed financial expert who can evaluate the risks for you.
6. Report Suspicious Schemes:
If you suspect something is a scam, report it to your local authorities or financial regulators such as the SEC.
Our Final Words on Traffic Monsoon:
All in all, Traffic Monsoon was never a sustainable or trustworthy platform. It operated under a misleading business model and deceived thousands of investors with false promises.
We strongly suggest readers stay away from any similar “ad revenue sharing” sites that depend on recruitment instead of real product value.
Useful Resources on Our Website:
Here are some important pages from our site that may help you find genuine opportunities and avoid scams:
- ✅ News and updates on online work industry
- ❌ List of scams
- ⭐ Detailed review of our top recommendation to make money online: Wealthy Affiliate
Comment or Share About Traffic Monsoon:
Have experience with TrafficMonsoon or a similar platform? Want to ask questions or share your story? Drop your comment below—we’d love to hear from you.
Also, feel free to share this article with your friends and family to help them avoid such scams.
Stay Safe and Stay Informed!
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