[...] He was a prolific bidder in SnapNames auctions and the subject of much discussion. Early on, some suspected that there was more to halvarez than met the eye. Take, for instance, the comments in this thread, [...]

Para 4 of the Snap release agreement at the hyperlink above, is a 288 word sentence. What ridiculous and unnecessarily archaic legal drafting. Cross out “NOW, THEREFORE,” at para 3 and ask yourself if the para before says anything different.

2. Opportunity cost
Have I missed the discussion, or do I appear to be the only person in the industry who has noticed that no recompense is being offered for the opportunity lost, e.g. what about the names that the underbidders lost, that were then sold by Halevrez for a capital profit, or the ad revenue that Halvarez earned that would he been earned by the underbidder? What about the names themselves? No mention of that in the offer. No apology either. Think about that when you read 4 below.

3. Commendation
Andrew, whilst I empathise with their plight, and I agree that the issue is being handled professionally, I fail to understand, in the nicest and friendliest possible way, why you have formed the view that these guys should be “commended” (your post Wednesday, November 4th). All they are doing is what they should do, at a minimum.

4. Release
As I note at the blog comment above, the “offer” comes with strings attached. I have to spend my time reading, considering, seeking legal advice with respect to the offer, in order to get the refund.

Ripoffreport.com-

Report: Snapnames.com
Category: Internet Services

Snapnames.com ripoff Portland Oregon

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Are you also a victim of the same company or individual? Want Justice? File a Rip-off Report, help other consumers to be educated and don’t let them get away with it!

Snapnames.com
Phone: 800-385 4075
Fax: 503-274 9749 115 NW 1st Ave, Suite 300
Portland, Oregon 97209
U.S.A.

Submitted: Monday, July 24, 2006
Posted: Monday, July 24, 2006
venice, California

Snapnames.com is a company that registers internet domain nmaes. In this example when I searched for a business their domain name had expired and snap names popped up instead with an offer to secure the domain in an auction. I thought I would be interested in that so I placed a bid and secured the domain several weeks later.

When snapnames advised me that the requirements were finished they refered me to the entity that will set up the web site. When I went to the site and entered the password, it would not allow me to log in. I waited severla days and like wise I could not log in.

I called the 415 area code number listeed and you’ll never guess the call patched through to India with a person who I could not understand nor she me?
Frustrated I called again and exactly the same experience. In the mean time I obtained no less than 7 pass words and none would get me past the error user not registered phase.

When I called snapnames in Portland i spoke with a very nice and patient person and explained that I was not satisfied and wanted to cancel the purchase and she had a tech by the name of Roger get on the line asking me if I needed tech support?When I said no he hung up?!!

Calling back I asked for an explanation and he said well you said you didnt want help so i hung up?
I snet them two emails and they say they arnet formated correctly and that the emails were attched?
What the heck kind of nonsense is this?
When we as consumers bid and obtain a domain and are sent to the next step only to wind up over seas dealing with persons who refer you back to snapnames who says all sales are final?

Well all sales are not final all sales using a credit card are subject to review by the card company and the actions of snapnames are subject to a review of the consumers affairs beaureau of Oregon or the city of Portland?

And finally the court of consumer opinion.

If snapnames wnats to dump consumers to overseas entities who cannot communicate effectively and are impotent to resolve the issue of not being able to log on, then who needs snapnames?
I want to unite this deal and will see to it that it will be untied.

Stewart
venice, California
U.S.A.
Report Photos:
Moniker.com / DomainSystems, Inc. / Oversee.net / SnapNames.com / Monte Cahn
Phone: 954-984-8445
Fax: 954-969-9155 20 S.W. 27th Ave., Suite 201
Pompano Beach, Florida 33069
U.S.A.

Submitted: Thursday, July 31, 2008
Last posting: Friday, August 01, 2008
Aventura, Florida

Moniker.com. These people run Domain Name Auctions, but they are not to be trusted as they are deceptive, do not abide by their own Terms and Conditions as publicly displayed on their website, and will not honor their Exclusive Right To Sell Agreements, and are bad faith actors. Their Escrow and Auctioning licenses should be suspended, or revoked, for deceptive trade practices and breach of fiduciary responsibility. ICANN should also investigate their practices and, as result, suspend or revoke their Registrar status.

On May 23, 2008, through one of their auctions, representing themselves as the new owners of a domain they purchased from me for $16,500, $14,025 net to me, they had sixty (60) days to make payment and transfer the funds to me. Despite several Notices sent to them subsequent to the contract expiration, receipt which were acknowledged, to either extend in writing their Exclusive Right To Sell Agreement or make the required payment, as called for in the Agreement, they have refused to do so. They have hijacked my property! I have identified another transferee for the domain, but I am being financially damaged by their refusal to release my domain from their Escrow Account.

Monte Cahn actually made the outrageous claim that there is no time limit on their process, contrary to our written Agreement, and what anyone would view as a violation of Federal, State, and Local Business Law Statutes.

In good faith, as they had requested, I promptly transferred the domain to their Escrow Account, and they were supposed to also act in good faith and transfer the funds to my personal account. Although their website clearly states that the Seller is protected because they “guarantee” that the Buyer has the funds, this is a deliberate deceptive misrepresentation to lure Sellers into their scheme of hijacking domains, as what has happened to me.

Additionally, they do not act or communicate in good faith or in a timely manner. In my opinion, they are bullshitters, plain and simple, and are forcing me to seek legal recourse in order to have payment made to me for damages, plus fees and costs for recovery.

Do Not Do Business with these companies. Do Not Place Your Domain Names in their Auctions. You will be exposing yourself to unnecessary risks. They are not to be trusted, and, like me, you may very likely be RIPPED OFF!

Elliot
Aventura, Florida
U.S.A.

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 snapnamesrebate@rustconsulting.com. 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 snapnamesrebate@rustconsulting.com 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

Somebody want to explain to me how Mr. Brady convinced Kjel and everyone else at Snapnames that he lived in the Kentucky Fried Chicken restaurant that he was using as his registration address??

SERIOUSLY — were they that stupid???

As a solo, I would never be class qualified. Aside from which I am an intellectual property attorney, and this is a commercial dispute.

Of course, this is an issue of concern to many. It seems that Snapnames has been upfront about what happened. It has taken them quite a while, though, to catch up with the allegations that have been floating around for some time. However, as VP of Engineering, Mr. Brady may have been able to derail internal investigations in the past.

A good move for SnapNames at this time would be to engage an outside auditor, since it would be reasonable to suspect the results of their internal investigation.