Last August Charles Scoville filed a motion requesting Traffic Monsoon victims pay his $270,000+ legal bill.
On May 29th Scoville’s motion was denied.
As stated simply by the court:
A defendant in a securities fraud lawsuit does not have a constitutional right to use frozen assets to pay for an attorney.
The District Court acknowledged it nonetheless had the option of granting Scoville’s request, but decided victim redress was more important.
This the second time Scoville’s request that his victims fund his legal defense has been denied.
And if it wasn’t painfully obvious, the court also opines that Scoville will ultimately lose the Traffic Monsoon Ponzi case.
The court has determined that there is a high likelihood that the SEC will prove that Scoville was operating an illegal Ponzi scheme.
To date Scoville has failed to file an answer to the SEC’s 2016 lawsuit. The regulator filed for default judgment last month.