Unresolved claims from Traffic Monsoon victims are holding up payments to victims.
A Special Master will now decide on 508 unresolved claims, as the court told them to do.
As outlined in a motion from July 29 by the Traffic Monsoon Receiver; “People who said they had invested in Traffic Monsoon sent the Receiver a total of 23,220 Proofs of Claim. There are currently 508 Investor Claims with claims that haven’t been settled. Each Investor Claim is currently an Unresolved Claim because the Receiver objected to the Claim according to the Approved Objection Procedures, the claimant filed a response, and the dispute has not been settled by the Receiver’s approved settlement authority or in any other way.”
I think that most, if not all, of these claims come from investors who are holding on to ROI balances that don’t exist or from people who tried to cheat the system and can’t show that they own the money they invested.
After a status meeting on July 8th; The “Court discussed the need to appoint a Special Master” and told the Receiver that neither the Court nor the magistrate judges of this district will be able to review and decide on the Unresolved Claims in a timely manner because there are so many of them and the pandemic has caused the judges’ schedules to be full.
Based on this information, the Receiver plans to ask the Court to appoint a Special Master and approve the procedures that the Special Master will use to decide and settle the Unresolved Claims. Before she can do that, though, the Receiver says that Federal Rule of Civil Procedure 53(b)(1) says that the holders of the Unresolved Claims must be told that the Court plans to name a master.
The Receiver’s motion asks for permission to tell people with disputed claims that the court plans to appoint a Special Master.
On August 2, this request was granted. This makes it possible for the court to appoint a Special Master, whose job will be to settle the remaining claims that haven’t been settled. Once these claims are settled, victims of Traffic Monsoon who have valid claims can expect progress to be made again on payments.
As of April 2022, there were 18,039 claims waiting to be paid out, totaling $55.1 million.
At the time, the Receivership held $50,1 million.