A court-approved clawback complaint, filed on April 22, seeks to recover over $48 million from 4,819 net-winners of the Traffic Monsoon Ponzi scheme. Each defendant in the class-action lawsuit withdrew at least $1,000 more than their initial investment, representing funds diverted from thousands of victims. The legal action aims to redistribute these illicit gains to those who suffered losses.
This lawsuit is a standard practice in securities fraud cases where a company is identified as a Ponzi scheme. A court-appointed receiver works to recover assets for the benefit of defrauded investors. "Net-winners" are individuals who profited from the scheme by withdrawing more money than they initially invested, often unknowingly at the expense of later investors. The law allows for the recovery of these funds, as they are considered proceeds of fraud.
Traffic Monsoon, presented as an online advertising platform, was shut down by the U.S. Securities and Exchange Commission (SEC) in July 2016. A forensic analysis conducted during the investigation revealed that 98% of all investor returns originated from new money entering the system. This classic "robbing Peter to pay Paul" mechanism is the hallmark of a Ponzi scheme, where early investors are paid with funds from subsequent investors, rather than from legitimate business profits.
By the time the SEC intervened, Traffic Monsoon had amassed approximately $175 million from investors worldwide. The total liabilities for promised returns on investment exceeded $700 million, a figure far beyond the scheme's actual revenue generation. This significant disparity underscored the fraudulent nature of the operation.
Among the specific defendants targeted in the clawback are individuals who realized substantial gains. Imtiaz Aslam, also known as Immy Aslam, from the United Kingdom, invested $10,825 but withdrew $5,095,096. Piotr Chajkowski of Poland deposited $45,751 and took out $874,820. Vincent Boutin from Canada invested $207,124, receiving $968,665 in return. Maurizio Longo of Italy, with an initial investment of just $52.65, withdrew $607,174. Ernest Ganz from Florida put in $344 and received $448,369.
Additional named defendants include David Barker from North Carolina, who invested $23,177 and withdrew $363,596. Mohammed Yasin from the UK invested $9,850, withdrawing $349,529. Adil Khan, also from the UK, invested $12,272 and received $328,663. Javediqbal Naeem, another UK resident, invested $67,793 and withdrew $355,332. Limited By Invitation, a UK limited partnership, invested $8,588 and withdrew $260,519. Sharon James from the UK invested $2,254 and received $249,758. These eleven individuals and entities serve as class representatives, defending the case on behalf of all net-winners in the lawsuit.
The international scope of Traffic Monsoon presented challenges for the receiver in serving legal documents. An update from July 2019 confirmed that the two US-based named defendants had been served. Five of the seven UK defendants and the Canadian defendant also received service. The receiver used the Hague Service Convention to serve the remaining UK defendants and those located in Poland and Italy, a process that ensures legal documents are transmitted and delivered across international borders in accordance with established protocols.
The effort to recover funds extended over several years. By October 2024, the case concluded. Judgments were entered against the majority of the net-winners involved in the lawsuit. However, the case against Maurizio Longo, who also used the alias Fabiano Santos, was ultimately dismissed.