I got a couple emails from Mason Cole of SnapNames / Oversee.net about Snap uncovering an "inside bidder" at SnapNames.com but they didn’t include the juicy details of WHO this bidder was or the bidder id used. DomainNameNews.com unmasked the man and put a bidder ID that many have questioned in the same cubicle at SnapNames.

Nelson Brady, VP of Engineering of SnapNames.com was Halvarez! Need to put a face with the name? Head over to DnJournal.com for a 2007 cover story and a picture by Ron Jackson of Nelson Brady from one of the T.R.A.F.F.I.C. events. (about mid way down)

It is VERY early in this discovery and many things will be interesting to watch as they play out. What will happen to all the domains Halvarez did win. How will Snapnames refund bidders that Halvarez drove up the bid prices on and much much more!

Doing a quick Google search for "halvarez" brings up a good deal of domain related topics on forums about his bidding and questions if he was an inside bidder. Comments like this date back to 2006:

snapnames name – HALVAREZ! im sure its all legit. it just seems too close for comfort and to see the same happening to others i hope hes not a snapnames plant!!

Really, there are Endless comments like that!

Snapnames will have A LOT to consider. It is not only people that had bid prices driven up by bidder Halvarez, but situations like I wrote about having bidders backorder a domain and then "remove" their backorder just before the auction starts. This means you would of been a "watcher" since somebody placed the bid before you, but many times you became the winner of the domain because the other orders were removed!

This whole deal is going to be another black eye for the domain industry. It puts further questions to online bidding auction services to who is really behind those bids IMO!

I have a strong feeling we will all be seeing "Halvarez" stories popping up left and right for a good deal of time.

Here are some Question and Answers directly from the Snapnames.com site about the inappropriate bidding:

I’m a DomainSponsor and/or Moniker customer too. Have my accounts there been subject to inappropriate conduct?
No. The activity was limited to SnapNames.

How can I go about getting my rebate?
If you were a bidder in an impacted auction, you will be contacted by Rust Consulting with details regarding the rebate offer.

When did you discover this conduct?
In October 2009.

How long had this been going on?
Since March 2005.

How many people at SnapNames were involved?
The account was managed by one employee, whose employment has been terminated.

What methodology did you use to determine the rebate being offered?
SnapNames retained an experienced, independent accounting forensics firm to calculate the amount on a customer-by-customer basis, the precise amounts due to each. In the communication we’ll send through Rust Consulting, we can provide more detail about how figures were calculated.

What financial controls are currently in place at other Oversee companies to prevent future inappropriate activity?
SnapNames experienced a breach of internal policy and the company has taken corrective measures to deal with the situation, including the offer of a rebate. We will continue to review internal systems with the assistance of outside experts to ensure compliance and effective internal controls.

Will SnapNames auctions be impacted?
No. We continue to conduct daily online auctions and will host a live auction at DOMAINfest Global in January 2010. These auctions will continue, though with enhanced supervision and compliance measures.