An important message from Snapnames

[Gerry]

I found one of my auctions November 2007 where my proxy was $8,500 and my current bid was $884. Nelson knowing my reserve was $9,000 bid $7,500. Then my auto bid went to $7,750. Then I assume another user saw this action between two bidders and bid once at $8,000. My auto bid kicked it to $8,250 and I won the auction.

With this scenario I get no rebate when clearly halvaraz was a huge factor that likely cost me thousands of dollars.

That is totally bogus BS. Right there is just ONE example that covers your $6700 rebate.

 

[Fearless]

Are you implying they have already contacted you and submitted a total owed?

Yes

 

[DN BROKER]

Huh? Where is the confusion?

Moniker's market place is snapnames...do you think they did not see the Halvarez BS as about 100 domainers did here on the forum over the past few years? And they joined forces under the same company?

Exactly!

 

[Seraphim]

How on Earth, then, do you know that "they're squaring up 100%"?

Remember, they are denying us access to the years when he was, by their own admission, most active.

Because the domain niche I bid in is extremely specific, and I know who the main bidders were within that blind records spot. I know 100% they weren't shills, they were real domainers. Like I said, I got lucky.

 

[EffectiveNames.com]

Need to include 2009 with that.

My understanding is that we all already have access to 2008 and 2009, I am more concerned about people who seem delighted with their "found money" but don't realize that it is a pig in a poke.

Because the domain niche I bid in is extremely specific, and I know who the main bidders were within that blind records spot. I know 100% they weren't shills, they were real domainers. Like I said, I got lucky.

I guess that makes sense - although I am surprised that you would personally know all the bidders. Again, just because they are admitting to Halvarez does not mean that he was not running other, less frequent accounts. Unless you personally knew the bidders, in real life, any account could have been a shill.

 

[Gerry]

My understanding is that we all already have access to 2008 and 2009, I am more concerned about people who seem delighted with their "found money" but don't realize that it is a pig in a poke.

Agree. I see nothing in my account prior to 2008.

 

[EffectiveNames.com]

I found one of my auctions November 2007 where my proxy was $8,500 and my current bid was $884. Nelson knowing my reserve was $9,000 bid $7,500. Then my auto bid went to $7,750. Then I assume another user saw this action between two bidders and bid once at $8,000. My auto bid kicked it to $8,250 and I won the auction.

With this scenario I get no rebate when clearly halvaraz was a huge factor that likely cost me thousands of dollars.

In a settlement worked out between lawyers, that is precisely the sort of thing you would get compensated for, and well beyond the actual dollar amount involved. This was a criminal act, an organized fraud.

The current offer gives you nothing for it, but they are counting on the general inertia - they know that the vast majority of people are too tired and too busy to even think about it, they will just take whatever money is offered and forget about it.

INCIDENTALLY, there is a very good chance that the last minute bidder was also Brady. What we actually need here is a POLICE or FBI investigation, because they have the power to pursue credit card records and determine, for Snapname's entire history, which bidders were real and which ones were the company.

Again, it is ludicrous to suggest that Brady used only one account, laughable. A real investigation would look at everything.

 

[Equalizer]

I found one of my auctions November 2007 where my proxy was $8,500 and my current bid was $884. Nelson knowing my reserve was $9,000 bid $7,500. Then my auto bid went to $7,750. Then I assume another user saw this action between two bidders and bid once at $8,000. My auto bid kicked it to $8,250 and I won the auction.

With this scenario I get no rebate when clearly halvaraz was a huge factor that likely cost me thousands of dollars.

This information will make any lawyer salivate...

The Lawyers will go after Big Pockets Oversee...
They deserve what they have coming.

 

[dvdrip]

A lot of the big accounts were using credit and paid later with wire transfer.
Brady could have just created endless credit for himself.

INCIDENTALLY, there is a very good chance that the last minute bidder was also Brady. What we actually need here is a POLICE or FBI investigation, because they have the power to pursue credit card records and determine, for Snapnames entire history, which bidders were real and which ones were the company.

 

[Seraphim]

I guess that makes sense - although I am surprised that you would personally know all the bidders. Again, just because they are admitting to Halvarez does not mean that he was not running other, less frequent accounts. Unless you personally knew the bidders, in real life, any account could have been a shill.

I don't buy into the one account theory. I also know they're royally f%cking everyone who used their service heavily prior to the records cut off date. However my delight in getting a little kick-back rebate, is that it usually doesn't happen, even with legal action. The industry is an absolute garbage dump of fraud and mischief, how often do things get settled like this? 0.001% of the time maybe?

I have grounded expectations here in DomainLand.

 

[Gerry]

This information will make any lawyer salivate...

The Lawyers will go after Big Pockets Oversee...
They deserve what they have coming.

There was someone who posted an example earlier that I calculated a near 1400% flagrant increase from initial bid to winning bid going head-to-head with Halverez.

Actual amounts owed can and should be staggering.

Even though Oversee now owns SnapNames, there may be cause for them to file legal proceeding against the hierarchy of the Snap Management at the time of the $25mil purchase.

 

[Seraphim]

So when the FBI rips through SnapNames, confiscates all of their records, what's going to happen to all the people who have bought TM domains from them over the years? What about the people who have been laundering money in domain investments, and skipping out on IRS dues?

Anyone contacted the FBI yet?

 

[Equalizer]

somebody in Billing ought to know...aid..abated
somebody at NP claims he did contacted the Fed.

 

[draggar]

Huh? Where is the confusion?

Moniker's market place is snapnames...do you think they did not see the Halvarez BS as about 100 domainers did here on the forum over the past few years? And they joined forces under the same company?

No one will ever know the true reasons why Moniker went under Oversee - I'm sure only Monty and a few others know the 100% truth. I'm sure a lot of it was money related but it could also be "standardization" and consolidation.

Also, was there proof at what was going with with Snap or just accusations and / or non-conclusive evidence? Remember earlier this year when someone got mad because Adam won a domain in a TDNAM auction that they wanted? Adam bid on domains he wanted yet accusations flew out all over the place and some companies placed in restrictions on employees bidding on their own company's auctions.

IMO people need to look at Snap now closely to see if it went on - larger than claimed by Snap (and I wouldn't be surprised if it was - I agree that he had the power to make it a lot bigger than what Snap is claiming). Who else uses Snap as a post-expiration / pre-drop auction house? Are people going to look at them, too? What about other employees (past and present) who also purchase domains - are they going to be scrutinized?

Honestly, sometimes I'm very glad I'm a very small player here.

IMO - the scariest part is that I seriously think this is the (very small) tip of a very large iceberg. there will be a lot of scrutiny over many entities and this is not the type of press that this industry needs.

 

[DN BROKER]

So when the FBI rips through SnapNames, confiscates all of their records, what's going to happen to all the people who have bought TM domains from them over the years? What about the people who have been laundering money in domain investments, and skipping out on IRS dues?

Anyone contacted the FBI yet?

Exactly! Better get your domains out! Everyones assets are going to be frozen! It will take several years or months to investigate and you don't want your assets in the middle of this!

 

[katherine]

Question to those wanting to sue:

1. Are you serious or is it just fluff
2. What or how much are you expecting from a lawsuit

Not taking position on whether the settlement is a better option or is even 'acceptable' but I remember the last time I've been in a class action, actually it was against register.com a few years back and eventually we all got a $5 coupon as compensation LOL :cheeky:

Personally I don't care about rebate money, I would rather hear the whole truth, full disclosure. How did Nelson benefit and the extent of the damage done. And most importantly, what Oversee is going to do about it.

 

[dotpool]

Received the rebate offer from SnapNames today:


SnapNames.com, Inc.
1600 SW 4th Ave., Suite 400
Portland, Oregon 97201

November 6, 2009

Re: Rebate Offer

Dear Customer:

On November 4, 2009, SnapNames.com, Inc. (SnapNames) notified customers about an unfortunate incident involving an employee bidding under a false name in certain SnapNames auctions. As we said previously, this was a clear violation of our internal policy and we regret that it occurred. In order to avoid any appearance that SnapNames benefited from this unauthorized conduct and in recognition of the importance of fair auctions, SnapNames is offering a rebate to any customer that won an auction in which this employee’s bidding activity resulted in a higher price paid by the customer. This letter provides more details regarding this rebate offer.

The account in question was named halvarez. Our records indicate that you won one or more auctions involving domain names in which halvarez also placed a bid. The attached Schedule I (link below) includes: (i) a list of each domain for which you were the winning bidder in a SnapNames auction in which halvarez placed a bid that affected the amount of the winning bid in the auction, (ii) the date on which the auctions for each domain closed, (iii) the winning bid price paid for such domains, (iv) the rebate amount for such domains, (v) the aggregate interest amount and (vi) the aggregate rebate amount.

Although the employee that placed bids under the name halvarez appeared to have submitted genuine bids in many auctions in which another person won, SnapNames is offering a rebate in each and every instance where this employee’s bidding had an impact on the winning bid. SnapNames is doing so to avoid any appearance of a conflict of interest on the part of the company.

How Affected Auctions Were Reviewed

To determine the rebate offer amount, SnapNames hired FTI Consulting, an independent, international forensic accounting firm, to perform a thorough review of these auctions and calculate the rebate. FTI Consulting reviewed data regarding all of the bidders in an affected auction, including the bids each bidder placed in the auction and the maximum bids the bidders indicated they were willing to place in the auction, and determined from this data what the winning bid would have been had halvarez never placed a bid in the auction. This amount was then subtracted from the actual price paid for the domain name to determine the amount of the rebate for that auction.

Calculation of Rebate Offer Amounts

In situations where a customer competed in the auction against only halvarez, the rebate offered is the difference between the winning bid and the opening bid for the auction, plus interest. This calculation assumes that were it not for the bidding by halvarez, the client would have won the name with the opening bid. In situations where there were other bidders in addition to the winner and halvarez, FTI Consulting reviewed the bidding history for each auction, as well as any indications by other bidders regarding the maximum bid they were willing to submit in the auction, to determine what the winning price would have been had halvarez not participated in the auction. For example, if the winner paid $100 for the domain, halvarez had bid $90, a third person’s maximum bid was $80, and the minimum bid increment was $5, then FTI determined that the winner would have won the auction at $85 were it not for the bidding by halvarez. Thus, the rebate offered for this auction would be $15, i.e., $100 minus $85, plus interest.

The Rebate Offer

In your case, SnapNames has concluded that had halvarez not placed a bid on any of the auctions you won, you may have paid less for the domain names you purchased at auction. Therefore, SnapNames is offering you a rebate for this amount plus interest, calculated at the rate of 5.22%, compounded annually, which is the highest value of the 1 month constant maturity treasury rate during the applicable period. This rate is established by federal law.

The rebate is available, at your option, in cash or as a credit to your SnapNames account. (Please note however that credit to your SnapNames account will be available only if the rebate amount, including interest, is $59 or higher. If the amount is less than $59, your rebate will be offered in cash.) Although we don’t currently anticipate doing so, we may impose other restrictions on the issuance of account credits, to satisfy legal or accounting requirements.

This offer is dependent upon your executing and returning to Rust Consulting, Inc., a third party administrator that is assisting with the administration of this rebate offer, the accompanying Rebate Offer Acceptance Agreement (link below) which, among other things, waives any claims you may have against SnapNames and its affiliates relating to this matter. This offer is open for twelve months from today’s date. If the offer is not accepted within this time frame, then the rebate will no longer be available.

If you have questions or concerns regarding the rebate calculation or other aspects of this offer, please contact Rust Consulting by telephone at 1-888-413-5338 or by e-mail at [email protected]. Please be prepared to provide detailed information and data regarding your bidding and purchase activity to the extent that it differs from the information we have provided to you.

Under certain circumstances we may be required to report the interest paid to you to the U.S. Internal Revenue Service (IRS). To permit us to satisfy any reporting obligations, your receipt of payment or credit from SnapNames pursuant to this offer may be conditioned on your providing us with a properly completed and executed IRS Form W-9 (or, for non-U.S. persons, an IRS Form W-8BEN or other appropriate version of Form W-8), or such other materials that may be required to enable us to comply with applicable tax laws. If so, we will provide you with further information. You are urged to consult your tax advisor regarding the U.S. federal income and other tax consequences to you that may result from this offer.

Processing Your Rebate Offer

In order to process your rebate, please execute and return the Rebate Offer Acceptance Agreement and send it to the following:

SnapNames Rebate Administrator
P.O. Box 98
Minneapolis, MN 55440-0098

If you so elect, you may contact Rust Consulting to print and mail you a copy of these forms, along with a self-addressed stamped envelope. Rust Consulting can be reached by telephone at 1-888-413-5338 or by e-mail at [email protected] Please provide your current mailing address with your request. Upon receipt of your Rebate Offer Acceptance Agreement and after verification of your eligibility, Rust Consulting will provide your rebate check (or confirm application of account credit) by mail.

Again, SnapNames regrets that its policies were not followed and that any of its customers may have been inconvenienced by this matter. SnapNames thanks you once again for your continued business.

Sincerely,

Jeff Kupietzky Craig Snyder
President and CEO General Manager, SnapNames.com

Click here to view your schedule.
[REMOVED]

Click here for a copy of the rebate acceptance form.
http://web.vertismail.com/smartcast/sites/snapnamesrebate/Rebate_Offer_Acceptance_Agreement.pdf

TO COMPLY WITH IRS CIRCULAR 230, YOU ARE HEREBY NOTIFIED THAT: (A) THIS LETTER IS NOT INTENDED OR WRITTEN BY US TO BE USED, AND CANNOT BE USED BY ANY TAXPAYER, FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON THE TAXPAYER UNDER THE INTERNAL REVENUE CODE; (B) THIS LETTER IS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN; AND (C) A TAXPAYER SHOULD SEEK ADVICE BASED ON THE TAXPAYER’S PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.

 

[petrosc]

here is a part of the contract with the devil if you take the cash

"I, the undersigned, individually and jointly, for myself and my successors, assigns, trustees, partners, joint venturers, directors, officers, affiliates, associates, managers, licensees, and for any other claiming through or under each or all of them and for any person or entity with or for whom I may have purchased the above mentioned names (collectively, the “Releasors”) hereby release and forever discharge, acquit, covenant not to sue and acknowledge complete satisfaction from, SnapNames, and its past and present parent companies (including Oversee.net), affiliates, successors, assigns, agents, attorneys, servants, representatives, employees, independent contractors, trustees, administrators, predecessors-in-interest, insurers, partners, joint venturers, stockholders, members, directors, officers, parent companies, associated companies, holding companies, subsidiaries, divisions, affiliates, associates, managers, licensees, accountants and consultants of any of the foregoing (collectively, the “Releasees”) for any and all claims, actions, arbitrations, charges, complaints, grievances, hearings, causes of action, actions, suits, damages, costs, expenses, judgments, liabilities, demands, inquiries, investigations, proceedings or suits of every kind and nature whatsoever, whether known or unknown, suspected or unsuspected, previously existing, or now existing, or hereafter arising, in law or in equity (collectively, the “Claims”), which the Releasors or any of them had, may have had, or now has, from the beginning of time to today’s date against the Releasees, collectively, or any of the Releasees, individually, for or by reason of any matter whatsoever relating to the auctions for and acquisition of the Domains, including without limitation, any Claims relating in whole or in part to the bidding activity of the SnapNames user associated with the user name “halvarez” (the “Released Matters”) for damages, restitution, disgorgement, unjust enrichment, civil penalties, statutory penalties, injunctive and/or declaratory relief, whether class, individual, representative, or otherwise in nature, including costs, expenses, penalties, and attorneys fees.


I, the undersigned, hereby covenant and agree that I shall not hereafter sue or seek to establish liability against any of the Releasees based, in whole or in part, upon any Claim relating in whole or in part to the Released Matters. I further covenant and agree that I shall, hereafter, opt out of any plaintiff class or other representative action of which I might be a member in any action against any of the Releasees, based, in whole or in part, on any Claims relating in whole or in part to the Released Matters."

 

[Theo]

How the **** will we provide detailed information related to bidding, when Snapnames have disabled all auction stats older than 2 years???

 

[Seraphim]

Are you serious or is it just fluff

What happened to all of the hundreds of domain thieves over the years, was a single one of them imprisoned, or even identified? We've all probably seen seven figures in fraud run through this forum alone, yet not one resolution to any of those cases has ever been published to the best of my knowledge? Halvarez is probably sipping on a Corona and lime right now out on his yacht, because he knows this industry is all bark, and no bite. Forum chatter doesn't scare people like that.

I dare someone to pick up the phone and call the FBI, and then come here and confirm it... crickets?