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.
Bob
If they send me a check with the condition that I can’t join any future class action lawsuit, it’s going back!
Cole Mason
Good stance, Bob – I don’t think RUST is going to solve all of Snap’s problems with this one.
This is a mess to the umpteenth degree!!
Cole Mason
PS. I am not Mason Cole of Oversee Corp, we just share the same awesome names!
Tracie
Nelson was a busy man in 2007. Took the time to file a patent application for non other than domain auction services and TASTING. On behalf of himself and SnapNames. Wonder what else they collaborated on.
Patent appl Filed on: 2007-06-19; Application Number: 11765061; published Dec 2007 Pub Number: 20070299967
It’s an interesting read. Describes the tasting practice to a tee, and discloses some current and perhaps future service offerings for SnapNames.
I’m still trying to find the patent application for drop auction shill bidding. I’m sure it’s there somewhere
Truth
I find it hard to believe no one else from the company knew about this. All those complaints on forums for 4 years and no one investigated? No one wanted to know more about their most prolific bidder?
pitbullstew
keep moving, keep moving nothing to see here folks, thats right, keep moving-
> Our File Number: FF++++-09
> Complaint About: Snapnames.com Inc.
>
>
> Thank you for the information that you sent us. Although there does not now appear to be a need for an investigation or legal action, we will keep your information on file as part of the public record.
>
> Our primary goal is to identify and eliminate the most serious marketplace violations, and many factors are considered in determining what cases we should pursue.
>
> We appreciate the time that you took to alert us to a possible problem in the marketplace. Your information may prove to be valuable in a future enforcement action.
>
> If you need to contact us about your complaint, please write to me and note your file number: FF++++-09, or contact me by phone at 503-934-4400 or e-mail at mailto:heather.j.mcfarlanemartinez@state.or.us
>
> Heather McFarlane-Martinez
> Enforcement Officer
> Financial Fraud/Consumer Protection Section
> Oregon Department of Justice
ScottSinger
I paid more than $10,000 to get our domain back. Halvarez was the other bidder in the process from $1,500 to $9,300 and then “Sobeclub” jumped into the bidding. Seems a little strange that “Sobeclub” only had 3 bids which were $60, $9,300 & $9,400. After the $9,400 it went back to Halvarez and myself until I won at $10,350. I actually called Snapnames at the time and told them I believe this to be fraud but had no way to prove at the time. I also believe the person I spoke to on the phone was Nelson Brady of SnapNames, AKA Halvarez. Does anyone know who “Sobeclub” is? If you believe fraud was committed against you by “Sobeclub” please let me know as I’m trying to investigate. If you want to reach me please reply on this loop with your contact information.