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Pyramid investment scheme worth £160MILLION shut down after taking money from 162,000 people

Discussion in 'BlackHat Lounge' started by Asif WILSON Khan, Aug 11, 2016.

  1. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    I did try to warn people about TrafficMonsoon


    Source: http://www.msn.com/en-gb/money/pers...money-from-162000-people/ar-BBvtKC1?li=AA54rU

    Get-rich-quick scheme Traffic Monsoon “stinks to high hell”, one worried investor told me when I reported on it in January.

    That verdict seems to have been confirmed now that it’s been shut down after taking around £160million from 162,000 people worldwide – many in the UK.

    The man behind Traffic Monsoon is Charles Scoville, an American “entrepreneur” with a history of similar schemes.

    Before running my article in January, I gave him the chance to respond to criticisms, the most obvious being that it was a pyramid or Ponzi scheme.

    I put a simple question to him: What is Traffic Monsoon’s main source of revenue?

    Scoville never replied, but elsewhere has claimed that members make money by buying “AdPacks”, which earn revenue from online advertising.

    But now we know the true answer to my question: almost all the revenue came from fees paid by people who joined.

    “In reality, Traffic Monsoon’s advertising business is an illusion designed to obscure the fact that it is offering and selling a pure Ponzi scheme,” alleges the regulator, the Securities and Exchange Commission, in papers filed in court in Salt Lake City.

    “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.”

    The SEC alleges that Traffic Monsoon violates anti-fraud laws and has frozen its assets.

    Everyone who joined and bought AdPacks at $50 each (£38) was required to click on 50 banner adverts each day, staying on each for five seconds.

    It’s this online traffic that members were told would generate income.

    My colleague Antonia Paget went to a Traffic Monsoon seminar in London in January that was full of overblown claims, with one speaker reckoning more than half the world’s population had joined, and another insisting that it would be “the easiest grand you’ll ever make”.

    One of the most damning details in the court papers is that PayPal notified Scoville that his business had the hallmarks of a Ponzi scheme – such as very rapid growth and few chargeback requests.

    On January 11, PayPal told Scoville it was blocking further transfer of funds out of the account.

    But for a month he kept this hidden from investors, who continued to pour in money, unaware it could not be withdrawn.

    The PayPal freeze ended on July 11, and since then Scoville has made 256 withdrawal requests, taking out more than £19million, according to the SEC.

    “For those of you who read the report and wonder why I moved funds from the business account to my personal...it truly was to protect those funds,” he posted on his Facebook page this week.

    He is also insisting that Traffic Monsoon was not an investment scheme but an advertising business.

    Amazingly, some people still don’t seem to accept what’s happening – one posting on Facebook: “I Believe in my Heart, Traffic Monsoon will overcome this bump in the road and be the top leader in the on-line advertising industry!”

    A petition has even been launched on Change.org to raise money for Scoville.

    It asks members to donate $1 each, adding: “Any donations higher will be very much appreciated by Charles.”

    I bet they will.

    Source: http://www.msn.com/en-gb/money/pers...money-from-162000-people/ar-BBvtKC1?li=AA54rU

    http://www.mirror.co.uk/money/pyramid-investment-scheme-worth-160million-8601621
    http://finance.yahoo.com/news/traffic-monsoon-llc-charles-scovilles-154600426.html
    http://www.bna.com/traffic-monsoon-facing-n73014445332/
    http://www.courthousenews.com/2016/07/28/sec-freezes-207-million-pure-ponzi-scheme.htm
    http://www.reuters.com/article/us-usa-fraud-sec-idUSKCN1082Q7
    http://www.law360.com/articles/821621/sec-targets-207m-internet-advertising-scheme
    http://www.jdsupra.com/legalnews/this-week-in-securities-litigation-40349/
    https://www.ksl.com/?sid=40832054&nid=148
     
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  2. Reaver

    Reaver Jr. VIP Jr. VIP

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    There's another site that's similar to Traffic Monsoon that sells "ad packs." I'm a part of their group on FB. I can't be arsed to login and see who it is, but I can tell you that the owners posted a message last week saying that their website was not a scam and they sell ad packs which are virtual goods. There's no guarantee that it'll mature, blah blah blah.

    In fact, let me login and find that message. I'll post it here.

    Gimme a mo.
     
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  3. blogzandstuff

    blogzandstuff Elite Member

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    i like the fact that he moved money saying it was safer, oh really?
     
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  4. jimbobo2779

    jimbobo2779 Jr. VIP Jr. VIP

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    I would not be surprised if the facebook post and the donation setup was made by him or someone on his behalf.

    Could people actually be that stupid they think that clicking on ads every 5 seconds is a legitimate business? That is a job straight out of Idiocracy
     
  5. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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  6. Reaver

    Reaver Jr. VIP Jr. VIP

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    OK I found it. I'm gonna put it in quotes. The name of the company is My Paying Ads. This is copypasta straight from their FB group.

     
  7. asap1

    asap1 BANNED BANNED

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    The world is full of gullible people, it amazes me the things people do and how they think.
     
  8. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    All those programs that offer rev share or have a condition of recruitment are the same. Typical pyramid/ponzi schemes.
     
  9. blogzandstuff

    blogzandstuff Elite Member

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    the trouble is people like him use psychology to reel in people who are looking to make lots of money quickly. They paint a picture and plants a seed in your mind to make you believe high earnings are achievable. Normally using photoshopped images of them by private jets etc.
    Once that image of riches has been planted in the mind of the gullible then it's easy to upsell and milk for all it's worth
     
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  10. Reaver

    Reaver Jr. VIP Jr. VIP

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    Yeah, that's why I posted it. Look at how slick their wording is. The unsuspecting person would believe them based on that alone. A smart person wouldn't have fallen for this crap in the first place.

    I only know about them because someone actually paid me to sign up for them. I got in there and I was like "NOPE."
     
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  11. buzz

    buzz BANNED BANNED

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    You can say what you want but scaling such a bullshit to $160 million is really impressive.
     
  12. itsromanorc

    itsromanorc Regular Member

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    Oh and let's not forget WorldVentures.

    I'm sick of people putting stuff up like "I'm successful, living life, retire with me... Ask me how" and all that other BS.

    Oh I forgot, even with those blue signs "You should be here" ... Nope.
     
  13. rob1977

    rob1977 Power Member

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    i can tell by the grammar the admin of that MPA shenanigans is somebody i would trust with my money.

    sounds like he's from 'joisey'
     
  14. Jaymien

    Jaymien Regular Member

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    Why...
     
  15. g0han

    g0han Jr. VIP Jr. VIP

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    I love how one of their selling points is "Trusted admin"

    [​IMG]
     
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  16. neu009

    neu009 Senior Member

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    Damn, it never seizes to amaze how dumb people are. Not even the part where they fall for the scam , but looking at change.org that actually people sign a petition to dismiss the case or believing paypal is to blame.

    Guess they are luckier these days, at least some money is usually recouped and they more often than not now seem to go after the ones that profited. Back in the days you could join early, milk the ponzi and make some money to keep before it collapsed. Just looking at the site and comparing it to a billion $ company like google should have told them it is impossible, just based on how shitty it all looked,

    Oh well I guess the saying a sucker born every day will always be true..
     
  17. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    That's peanuts.

    Bernie Maddoff stole U$ 65 BILLION

    And got 150 years in jail.
     
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  18. Hawkster

    Hawkster Jr. VIP Jr. VIP

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  19. knowing25

    knowing25 Elite Member

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    I'am glad to never put my money on online investment such this trafficmonsoon etc..thanks for the info.
     
  20. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    That's what Bernie Madoff said.