Ernest "Ernie" Ganz and David Barker, two key promoters for the collapsed Traffic Monsoon Ponzi scheme, now face combined default judgments totaling $953,195. The Traffic Monsoon Receivership secured these judgments after both individuals failed to respond to legal proceedings.

The court accepted that Ganz had taken $448,051 directly from Traffic Monsoon victims. He never appeared, pleaded, or filed an answer in the legal action. The deadline for Ganz to respond expired, leading to the default judgment entered against him on December 23rd.

Ganz's judgment includes $448,051 in clawback, $87,864 in prejudgment interest, and an additional $4,907 in prejudgment interest. The Receiver is also entitled to collect postjudgment interest until Ganz fully pays these amounts. His total judgment stands at $540,822.

David Barker faced similar findings for his role in the scheme. He had taken $340,418 from Traffic Monsoon victims. Like Ganz, Barker failed to appear, plead, or file an answer. The time allowed for his response also expired.

Barker's default judgment amounts to $412,370. This sum comprises $340,418 in clawback, $68,224 in prejudgment interest, and $3,728 in additional prejudgment interest. Unlike Ganz, no specific postjudgment interest penalty was noted in Barker's award.

The Receiver initiated lawsuits against several top Traffic Monsoon net-winners in April 2019. These judgments against Ganz and Barker represent the first resolutions in these clawback cases. The Traffic Monsoon scheme, which promised high returns from advertising revenue, was later identified by regulators as a fraudulent Ponzi operation. Its owner, Charles Scoville, previously faced a $2.5 million default judgment from the SEC earlier this month.

Following his default judgment, David Barker filed for Chapter 7 bankruptcy protection in the United States Bankruptcy Court for the District of North Carolina during the first half of 2023. The Traffic Monsoon Receiver's Twentieth Status Report, filed September 6th, confirmed that Barker received a Chapter 7 discharge. This action is seen as an attempt to avoid repaying victims.

The Receivership has domesticated Barker's judgment, meaning it has been formally recognized in the bankruptcy court jurisdiction. Clawback efforts against Ernest Ganz continue.

Ongoing clawback proceedings by the Traffic Monsoon Receivership are still active against individual defendants Imtiaz Aslam, Piotr Chajkowski, Vincent Boutin, Maurizio Longo, Mohammed Yasn, Adil Khan, Javediqbal Naeem, and Sharon James.