In a statement just released buy Oversee.net, they have filed suit against after Nelson Brady, otherwise known as Hank Alvarez, seeking damages in excess of $33 million dollars.
Here is the official statement from Oversee:
“SnapNames, and its parent company, Oversee.net, have filed suit against Nelson Brady in federal court in Oregon.”
“Brady is a former employee who, under the false name “Hank Alvarez,” improperly bid in certain SnapNames auctions. In some cases, Brady also embezzled funds from Oversee by fraudulently refunding himself a share of the purchase price for names he won.
“For several months, the company has in good faith attempted to settle privately with Brady to recover its losses, including the rebate fund established by Oversee to address Brady’s activities and the funds he embezzled from Oversee. Those settlement efforts have been unsuccessful.
“The suit seeks over $33 million in damages, including punitive damages.
In October 2009, Oversee discovered an employee, Nelson Brady, using an account under the false name “Hank Alvarez,” engaged in improper bidding activities in domain name auctions on the SnapNames platform.
Oversee and SnapNames disclosed the situation to its customers and employees in November 2009.
Oversee made available to affected customers a cash rebate in the amount of overpayment, plus 5.22% interest (the highest applicable federal rate during the affected time period), of any amounts paid exceeding what the auction price would have been without employee bidding.
Since that time, more than 60% of the aggregate rebate amount has been claimed.
Impact of Brady’s actions on auctions:
Brady’s conduct affected:
5% of auctions since 2005
75% of total impacted auctions were between 2005 and 2007
Less than 1% of SnapNames auctions during this period were won by the employee
The remaining 4% were won by SnapNames clients.
Brady’s bidding affected approximately 1% of SnapNames’ auction revenue during the full period.
Impact of Brady’s actions on SnapNames and Oversee
Oversee will be demanding millions of dollars from Brady for the damage he caused to Oversee and SnapNames. No amount of money, however, could compensate the damage Brady has caused to SnapNames’ and Oversee’s reputation in the marketplace.
In November 2009, Oversee voluntarily disclosed Brady’s conduct to both the US Attorney’s Office and to the Federal Trade Commission. Oversee will not publicly discuss anything relating to law enforcement matters.”
End of Statement”
Nice to see
At the time that Oversee made the disclosure, I was one of the only bloggers who stood up and commended Oversee for the way they came forward, disclosed the problem and provided a solution.
I believed at the time and still believe had Oversee not come forward voluntarily and disclosed the fraud, it would never had come to light. Sure there were a lot of rumors and accusations for year made by some in the domain community, but if Oversee didn’t come correct and make reparations, we would all still be sitting here just speculating .
Yet I was not in the first group of domainers that grabbed the offer of reimbursement.
First I had to satisfy myself that Brady was the only one involved in the bidding scandal, that he acted alone, without the knowledge or assistance of others in the company and that Halvarez was the only bidder account used to perpetuate the fraud.
I did a study of my own SnapNames account which I published a detailed analysis of my findings shortly after the scandal broke.
After being satisfied that Brady acted alone, only using that one account to bid on, I accepted my mid-five figure settlement in January from Snap in the form of a credit.
Now it’s clear that Oversee is going to try to recoup its loses from the person who created the problem in the first place, hopefully ending all conspiracy theories floating around in the domain community.
Good for Oversee.
Good for the domain community.
To the other 40% who have not grabbed the cash, you might want to re-think your position.