Oversee.net just announced that it has settled two outstanding cases from the Brady Bidding Scandal.
One was a class action bought by some of the bidders on the SnapNames.com system that were effected by Brady’s bidding.
The other case settled today was the action that Oversee brought against Brady seeking $33 Million dollars.
For our own account at SnapNames.com we took our settlement in January of this year, having satisfied ourselves that the Brady acted alone, that Oversee’s accounting was correct and concluding that a lawsuit would be unproductive.
Seems like we got that one right.
Here is the announcement:
“SnapNames and its parent company, Oversee.net, have reached a preliminary settlement of Resmer vs. SnapNames.com and Oversee.net, a class action filing arising from a former employee’s improper bidding activity on the SnapNames platform.”
“The action was filed in California shortly after SnapNames announced its rebate program for affected customers last November.”
Under this settlement:
“Class members (which are United States residents who were extended the rebate offer but have not yet accepted) have been or shortly will be notified of the settlement terms and amounts (which are identical to the amounts affected bidders were offered in the rebate offer we extended last November).”
“Though our rebate program officially expires November 4, 2010, the deadline to make a claim as a member of the class is December 17, 2010.”
“Unless a class member opts out of the settlement, that member is bound by the settlement terms, which include a release of all further claims against SnapNames and Oversee relating to the “Halvarez” matter.”
“SnapNames has created and adopted a formal policy regarding inappropriate bidding activity, and will make annual reports available to SnapNames customers regarding any reports or investigations of inappropriate bidding.”
“Unclaimed proceeds from the class settlement will be donated to charitable organizations and industry causes.”
Class members can download instructions and a claim form at www.snapsettlement.com.
“”Separately, we have also resolved our outstanding claim against Nelson Brady, the former employee responsible for this activity. While terms of the settlement are not public and will not be disclosed, Oversee believes the financial penalty is appropriate considering the seriousness of the improper activity.
“Statement from Jeff Kupietzky, CEO of Oversee.net
“While this has been an unfortunate situation for SnapNames and its customers and employees, we’re proud of the faith our customers have shown us in the past year. We’re pleased to have these matters settled and are moving on with our business and our focus on serving customers.”
Context
“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 the calculated overpayment, plus 5.22% interest (the highest applicable federal rate during the affected time period).”
“Since November 2009, approximately 84% of the aggregate rebate amount has been claimed by impacted parties.”
“Including the class action settlement, SnapNames will have made more than $2 million available to impacted customers.”
The only question I have is the attorney fees for the class action.
Class actions are notorious for running up the legal bills for Plaintiff’s attorneys that the settling party typically winds up paying in the settlement, with the plaintiff’s themseleves usually winding up with not a whole lot.
I reached out to Oversee.net to inquire as to whom was paying the Plaintiff’s legal fees and got the following answer:
“Anything not included in (the statement) would be confidential.”
So we are not going to get the answer to that one, however one things for sure the only thing the plaintiffs are getting is what they could have gotten a year ago.
Anyway nice to see this matter settled and closed
As I have said many times, the problem I have with the settlement (the voluntary settlemnet), is that it never included recompense for the names lost where bidders were the immediate underbidder to Halverz and, therefore, they lost the name, and the equity value it represents, along with any parking income, and any income from sales of the names lost to Halevez.
I cant understand why I am a lone voice on this.
Given the level of fraud he perpetrated, I am not satisfied with the outcomes of any civil actions. Sadly, it seems that in the world of tech, there’s way too much apathy and way too little knowledge on the Law Enforcement end, so people are able to commit digital crimes without impunity, whereas the exact same crime committed in an offline capacity (say, if he had a ring of shill bidders running up live auctions in Yourtown, USA) might likely receive charges.
I do believe that a full half of the dollars that could be involved in eCommerce are withheld due to significant trust issues. These trust issues arise because of a total dearth of meaningful criminal enforcement. The day the internet becomes an unsafe place for fraudsters is the day we all start making more money.
(with impunity)
HANK ALVAREZ AKA Nelson Brady
ex VP employee at SnapNames.Com
MR SHILL …. “HALVAREZ
Allegedly Brady Nelson, a nine-year VP SnapNames.Com employee, was secretly bidding up the price of domain names under a fake name: “Hank Alvarez.”
The “shill bidding” affected 36,000 auctions, according to the suit, and prompted SnapNames to refund overpayments, plus interest, to thousands of customers.
Oversee.net, SnapNames’ NOW parent company, charges that Nelson Brady, 54, also caused it to OVERPAY when it BOUGHT the Portland business three years ago. The fraud allegedly took place over four years, from 2005 until the company discovered it last October 2009.
SnapNames.Com sued one of its former executives for $33 million today, alleging that he RIGGED the company’s online AUCTIONS and caused customers to OVERPAY for a Domain purchase.
SnapNames caught on to Brady’s shill bidding, Cole said, because he would sometimes “accidentally” win an auction bidding under the fake name Alvarez.
He would then refund himself a portion of the purchase price from
SnapNames’ accounts.
Nelson Brady allegedly created a PayPal account and set up a mailbox for Alvarez, bidding under the online alias “HALVAREZ”allegedly Brady e-mailed colleagues details to promote Alvarez, according to the suit, writing that he “is from the south, (with an) accent you would not believe, a great guy.”
IT TOOK THREE(3) YEARS…
TO OUST THIS NICE GUY ….
TELL ME THERE WAS NOT OTHERS BEHIND
THIS “SCAM” AND “SHILL REPORTS” WERE
NOT IGNORED?
BIDDERS WERE DOCUMENTING HIM SINCE 2006
A MUST READ LINK:
http://www.dnforum.com/f557/important-message-snapnames-thread-197282.html
DOMAINERS IS HE THE ONLY ONE,,,
SHARE YOUR STORIES….
How do you squeeze water out of a rock with Nelson Brady – i mean what is the civil settlement – $4 ?? – Will there be in crimal filings ?
Brian
Oversee have consistently refused to answer any question related to whether they pursued or will purse criminal charges against Mr. Brady, from the begining of this mess (and believe me I have asked).
To date we have heard nothing on that front from law enforcement so I guess the answer to your question is no
Clearly Nelson Brady has positioned himself to start a registrar – and possibly also start the .Brady registry in order to further document his legacy.
JAILBIRD LEGACY …
The authorities were never involved,
VERY …. strange?
Was the Attorney Generals office (Washington Brady Home State) contacted
as there is much confirmed evidence that he is guilty of ….
International/National Wire Fraud a Federal crime.
Oversee and Snapnames have “NO SAY” over CRIMINAL prosecution.
It is indeed remarkable that much effort had been made not to prosecute him, this CLEARLY indicates POINTED suspicion that others may have been involved in said DEVIOUS criminal activities.
WHO ELSE COULD BE INVOLVED ???
“TELL ME THERE WAS NOT OTHERS BEHIND
THIS “SCAM” AND “SHILL REPORTS” WERE
NOT IGNORED?
”
That was the beauty of this for him – I am advised and have read that he was in charge of that stuff and designed the system in a manner that he could circumvent all the “safeguards”
Brian
He actually wrote and put into place the “safeguards” and was responsible when any complaints or issues arose
By reaching a class settlement identical to the original settlement, that’s just enriched the class action lawyers. The people they “represented” as a class gained absolutely nothing from holding out. Pretty poor lawyering!
@Edwin
Remember – a lawyer is a paid friend – we all need friends in this world – even if some have to pay them. My business opted out out the class action – I have enough friends in this world – realizing that Snap came to the table clean right out of the shoot.
Edwin
The ultimate settlement reflects more on the the fact there just was nothing else there to be gotten, which is the conclusion we came to after doing DAYS of research, rather than a job of poor lawyering.