Charles Scoville, identified by affiliates as the operator of AdHitProfits, launched the scheme on March 18, 2013. The company promised a 125% return on investment to participants buying "shares," a model consistent with a Ponzi scheme. AdHitProfits' website offered no details about its ownership; its domain registration remained private.

Affiliates consistently named Scoville as the owner. His Facebook profile describes him as an "entrepreneur" and "home business owner." Comments on that page directly link him to AdHitProfits.

Scoville has a history of involvement with low-level investment opportunities, pay-to-click sites, and pay-to-advertise schemes. He was also an affiliate in TVI Express, a known pyramid scheme, operating under the account "tvivacation_ws." AdHitProfits appears as the latest entry in his sequence of income schemes.

AdHitProfits sells no retail products. Affiliates join and purchase "shares" within the compensation plan. Each share includes a directory listing filled with referral links to other speculative income opportunities. The company guarantees "1000 visitors" with each share purchase through these directory listings. Affiliates must click 10 directory listings daily to qualify for commissions.

Banner advertising is available on the AdHitProfits website, but this option does not tie into the compensation plan. Only affiliates can buy this advertising, meaning it does not generate retail revenue.

Affiliates purchase shares for $45 each. They are promised a 125% ROI in return. The company provides no timeframe for when this ROI will be paid out. Recruiting new members earns a 10% referral commission on their investment. Membership is free, but earning anything requires an investment in shares.

AdHitProfits' FAQ addresses the nature of its business. When asked if it is a "MLM, Matrix, HYIP, Autosurfing, Investment site, Ponzi or any of those fly by night deals," the company states, "No way! That's exactly why we are splitting the profits with members and DON'T pay members with OTHER members cash!" It also claims to be "a up and up business with great advertising services and is in NO way an investment site."

But another FAQ entry contradicts this position. When asked about refunds, the company replies, "NO REFUNDS! We share the revenue from your purchase with all members. The moment the payment enters our system, it is no longer 'your' money, and it certainly isn't 'our' money. It belongs to 100% ALL members because we shared those funds with EVERYBODY!"

This admission confirms that new affiliate purchases directly fund payouts to existing members. Such a structure defines a Ponzi scheme. AdHitProfits' attempts to deny its nature directly conflict with its own operational details. The company also allows unlimited share purchases, further incentivizing investment rather than product sales.

Charles Scoville is also known as a "professional magician." Unless evidence emerges that he genuinely conjured money from thin air, the financial mechanics point to a straightforward Ponzi operation. Such schemes invariably collapse when new investor money stops flowing in, leading to widespread losses for participants.