NameStarter.com :: domaining business blog // Domaining for Domainers

Archive for the ‘nelson brady’ Category

Settlement with Nelson Brady Saves Oversee.net from Legal Hassles

October 27, 2010Domaining, Domainnamewire, nelson brady, Oversee.net, Policy & Law, SnapNamesComments Off on Settlement with Nelson Brady Saves Oversee.net from Legal Hassles

Brady requested a number of documents related to Oversee.net’s operations.

As far as lawsuits go, Oversee.net’s suit against former employee and shill bidder Nelson Brady was somewhat unique. After all, you had someone who admitted much of the wrongdoing that was alleged.

Yet getting money out of Brady wasn’t going to be easy for Oversee.net. Brady was going to make Oversee jump through some hoops.

For example, Brady subpoenaed Bank of America for “all documents relating to any loans, lines of credit, letters of credit or other credit instruments between BOA and either or both plaintiffs from 2005 to the present,
including, but not limited to a $60 million line of credit issued to Oversee.net in or around 2007.”

Brady also subpoenaed FTI Consulting, Inc., which assisted Oversee.net with its rebate program to affected parties, for data and documents related to communications between a number of parties.

Oversee.net filed Motions to Quash both of these subpoenas. But that’s all a moot point now that the companies have settled. And that’s probably good for both parties.


© DomainNameWire.com 2010.

Get Certified Parking Stats at DNW Certified Stats.

Related posts:

  1. SnapNames and Oversee.net Sue Nelson Brady aka Halvarez
  2. Inside Oversee.net v. Howard Nelson Brady, Jr.
  3. Nelson Brady Will Speak, But What Will He Say?

SnapNames Settles Class Action and Case Against Nelson Brady

October 26, 2010Domaining, Domainnamewire, nelson brady, Oversee.net, Policy & Law, SnapNamesComments Off on SnapNames Settles Class Action and Case Against Nelson Brady

Oversee.net settles with former employee and class action.

Snapnames has resolved two outstanding lawsuits related to its bidding scandal.

First, the company has resolved its claims with former employee Nelson Brady. Brady was the sole employee who drove up bids on SnapNames. The settlement will not be made public, but SnapNames parent company Oversee.net said the “financial penalty is appropriate considering the seriousness of the improper activity.”

I had checked the case docket this morning and there were no new filings; they will likely be added within the next few days.

Second, the company reached a preliminary settlement in Resmer vs. SnapNames.com. This was originally a U.S. District Court case. Facing problems proving the size of the claims, Stewart Resmer later moved the case.

Details on the class action settlement are available here. Both Stewart Resmer and the class action lawyers will receive compensation paid by SnapNames.


© DomainNameWire.com 2010.

Get Certified Parking Stats at DNW Certified Stats.

Related posts:

  1. SnapNames Class Action Lawsuit Dismissed
  2. SnapNames and Oversee.net Sue Nelson Brady aka Halvarez
  3. Second Class Action Lawsuit Filed Against Oversee.net and SnapNames

Nelson Brady Comes Clean in Response to SnapNames Lawsuit

May 26, 2010Domaining, Domainnamewire, nelson brady, Oversee.net, Policy & Law, SnapNamesComments Off on Nelson Brady Comes Clean in Response to SnapNames Lawsuit

Brady acted alone, says he wanted to generate money for long term health care.

Nelson Brady has responded to a lawsuit filed by Oversee.net and Snapnames regarding the company’s bidding scandal. Brady admitted to many of Oversee’s allegations. The response does not implicate any other employees in the scheme, indicating that Brady acted alone and other employees did not know about his activities.

Brady admitted that he used the Hank Alvarez (halvarez) account to increase bids by other customers and that he refunded money to himself when he won some of the auctions. Prior to Oversee filing the lawsuit, Brady says he agreed to pay back all of the refunds with interest, but the company refused.

Brady says that his primary use of the Halvarez account was to get domain names for himself; not to increase SnapNames’ revenue. He says he did this to get money for long term health care:

Brady primarily used the Hank Alvarez account to legitimately purchase domain names that Brady believed would be profitable so that he could accumulate savings for his long-term health care. Brady’s mother suffered from a genetic neuromuscular disorder and died at age 56 wheelchair bound with her legs locked in a 90 degree angle at her knees. Brady has the same symptoms as his mother, including severe pain, weakness and stiffness in his muscles, among other things. All these symptoms have gradually worsened as Brady ages (he is currently 54) and for many years Brady has been able to function only by taking muscle relaxants. Brady’s use of the Hank Alvarez account to purchase domain names and accumulate savings for long term health care was driven by his intense fear that at some future undetermined time he will become incapacitated like his mother. Brady further states that he improperly used the Hank Alvarez account to increase other bidders’ bids in a small minority of the total auctions that SnapNames administered between March 2005 and September 2009. Brady further states that his improper use of the Hank Alvarez account to
increase other bidders’ bids was completely separate from Brady’s use of that account to acquire domain names for himself, and was done solely for the benefit of SnapNames and Oversee. Brady mistakenly and wrongly believed that increasing other bidders’ bids would help a small number of SnapNames and Oversee employees other than Brady retain their jobs by creating better financial health for the companies.

Among his defenses, Brady says that company representatives told him they were not suing him, and that is part of the reason he fully cooperated with the company during its investigation.

The entire response to the complaint is available here.

Please be respectful in your comments.


© DomainNameWire.com 2010.

Review and rate domain name parking companies at Parking Judge.

Related posts:

  1. Inside Oversee.net v. Howard Nelson Brady, Jr.
  2. SnapNames and Oversee.net Sue Nelson Brady aka Halvarez
  3. Nelson Brady on SnapNames Scandal

Nelson Brady Will Speak, But What Will He Say?

May 6, 2010Domaining, Domainnamewire, halvarez, nelson brady, Oversee.net, Policy & Law, SnapNamesComments Off on Nelson Brady Will Speak, But What Will He Say?

Expect to hear his side of the story within 30 days.

By filing suit against former employee Nelson Brady this week, Oversee.net and Snapnames hope to accomplish a couple things. Yes, it wants to get some of its money back. But more importantly, it wants to clear its name.

Ever since the scandal broke last year, conspiracy theorists have suggested that the company was complicit in what happened and that’s why it wasn’t going after Brady. In reality, it was trying to settle with Brady outside of court before filing a lawsuit. By filing the suit, the company must think that it is “clean”, and there’s only one person who orchestrated the bidding scheme.

I talked to Nelson Brady’s defense lawyer yesterday and he informed me that Brady will be filing a “complete” response within 30 days. That Brady didn’t settle out of court to make this problem go away suggests that he doesn’t feel completely responsible for what happened. It’s unclear what he could argue, but I go back to a conversation I had with him shortly after the scandal broke. He informed me that he acted alone, but there was more to the story.

For obvious reasons, Brady and his lawyer don’t want to discuss the rest of the story publicly right now. But the only thing that pops to mind is that perhaps someone else knew about what was happening and didn’t tell anyone. Clearly, Oversee would not be aware that someone else knew when it filed this lawsuit. And, to be clear, I have no insight into what “more to the story” means.

But I don’t expect the typical flat-out denial from Brady in his response. I suspect he’ll have something more to say.


© DomainNameWire.com 2009.

Review and rate domain name parking companies at Parking Judge.

Related posts:

  1. SnapNames and Oversee.net Sue Nelson Brady aka Halvarez
  2. Nelson Brady on SnapNames Scandal
  3. Inside Oversee.net v. Howard Nelson Brady, Jr.

Inside Oversee.net v. Howard Nelson Brady, Jr.

May 4, 2010Domaining, Domainnamewire, nelson brady, Oversee.net, Policy & Law, SnapNamesComments Off on Inside Oversee.net v. Howard Nelson Brady, Jr.

Lawsuit sheds more light on bidding scandal.

Earlier today Snapnames and parent company Oversee.net filed a lawsuit against former employee Howard Nelson Brady, Jr. for his alleged scheme of shill bidding and embezzlement.

Much has already been disclosed about Brady’s alleged conduct, but the lawsuit (pdf) provides more details of his alleged deceit.

The suit cites a number of examples of how he tried to dupe other SnapNames employees into thinking that Hank Alvarez was a real customer. In reality, Alvarez was a fictitious person that Brady created, the suit alleges.

In one instance, the suit claims that Brady created a bogus email account for Hank Alvarez and sent an email to his SnapNames email address from that account. He then forwarded that email on to another Snapnames employee to show that Hank Alvarez was a real person.

Much of Brady’s activity was geared toward increasing how much others paid for domain names. He would view their confidential maximum bids and bid a slightly lower amount to increase the amount these other customers paid.

Why the deceit? According to the complaint, Brady earned substantial money by selling SnapNames to Oversee at an inflated price thanks to his revenue-boosting scheme. Additionally, after the company was sold, Brady could have earned up to $1.5 million in an earn out.

Once the earn out period passed, the plaintiffs allege that Brady moved on to embezzle money.

After Oversee completed its purchase of SnapNames and the “earn out” period in which Defendent Brady could have earned additional compensation based on the performance of the SnapNames business expired, Defendant Brady dramatically reduced his shill bidding scheme, and instead started stealing directly from the company.

From August 2005 to Sept 2009, the suit alleges that Brady purchased about 250 domains in which he refunded substantially all of the money — approximately $175,000. Most of this activity occurred in the last year of the period. The embezzlement activity coincided with Brady voluntarily reducing his working hours and taking a pay cut, Oversee claims.


Brady and his lawyer did not immediately respond to a request from Domain Name Wire for comment about the lawsuit.
Brady’s lawyer says that they plan to file a full response to the accusations within 30 days.


© DomainNameWire.com 2009.

Review and rate domain name parking companies at Parking Judge.

Related posts:

  1. SnapNames and Oversee.net Sue Nelson Brady aka Halvarez
  2. Nelson Brady on SnapNames Scandal
  3. Second Class Action Lawsuit Filed Against Oversee.net and SnapNames