FMA, once one of the domain industry’s most revered domain investors, sues its former attorneys.
For years, Future Media Architects was known in the domain name industry for owning a portfolio of high-quality domain names—and for never selling them.
People knew the company’s founder, Thunayan Al-Ghanim, as Elequa. He was somewhat of a mystery man, but domain investors envied his portfolio.
Then, earlier this decade, Future Media Architects (FMA) started selling domain names. It was difficult to get a picture of what changed. It became clear that there was a family struggle over the company, which Thunayan co-owned with his sister Shareefah.
A new lawsuit (pdf) sheds more light on what has happened in the interim, and alleges that law firm Akin Gump took advantage of both Thunayan and FMA. As Thunayan allegedly suffered from substance abuse and mental health problems, Akin Gump began representing both him personally and FMA, according to the suit.
In addition to this troubling dual role, the lawsuit alleges that Akin Gump and its employees then undertook a series of bizarre transactions and relationships to its financial benefit. The suit states:
Akin Gump’s transgressions included: FMA-funded family vacations for Akin Gump personnel; the personal expenses of an Akin Gump attorney and her family members were paid for by FMA; numerous bank accounts were held jointly by an Akin Gump lawyer and Thunayan; jobs at FMA were given to the family members of an Akin Gump attorney, one of whom was directed by Akin Gump lawyers to live and travel with Thunayan; the unauthorized transfers of hundreds of thousands of dollars to accounts and entities jointly owned and/or run by an Akin Gump lawyer; establishing shell companies which were jointly owned and controlled by an Akin Gump lawyer; and the sale of some of FMA’s most valuable domain names in rushed and below-market transactions.
Those rushed domain sales included bit.com for $300,000 and 333.com for $750,000, according to FMA. Akin Gump billed FMA for advising on these sales while paying a commission to Uniregistry to facilitate them, the suit says.
FMA believes these sales were rushed through in order to generate cash to pay Akin Gump. In fact, an Akin Gump attorney used access to FMA accounts to pay some of the bills, the suit alleges.
The complaint says the law firm helped Thunayan open special purpose entities and bank accounts, some of which Akin Gump employees were able to control.
Heidi Liss, who was Senior Counsel for the firm, formed companies such as Accubon LLC and Vista Global Advisors, LLC, according to the lawsuit. The latter’s website states:
We provide bespoke consulting and advisory services to international private clients and their professional advisors. Through our global network, we provide customized solutions to protect wealth and provide for future generations.
In 2015, Accubon, which was owned by Liss, entered into a consulting agreement with FMA, the suit states. According to the the lawsuit, the agreement installed Liss as FMA’s interim CFO and member of FMA’s executive management team. The lawsuit alleges that Liss subsequently transferred funds from FMA entities to Vista Global. FMA also paid off Liss’s and her daughter’s credit card bills in 2015 for charges including hair cuts, Broadway tickets and a purchase at Nordstrom, according to the lawsuit.
The lawsuit alleges that Liss worked with Akin Gump lawyers to get her daughter hired as Thunayan’s personal assistant at an annual salary of $120,000.
Akin Gump also represented both Thunayan and FMA on both sides of a $3 million loan between the two parties to purchase a condo in Cayman Islands, according to the lawsuit.
FMA is seeking damages in excess of $20 million.
shahram says
That is going to be one ugly battle.
BullS says
Rule#1 in business—never never never go into business with your relatives!!
Baaaaaaaaaaaaaaaaaad Blooooooooooooood!!
‘Cause baby now we got bad blood
You know it used to be mad love
So take a look at what you’ve done
‘Cause baby now we got bad blood
Michael says
It just shows you can have all the wealth in the World and it can still go downhill quickly. Having said that, it seems this law firm is one of the biggest in the U.S., so surely you should be able to trust them?
gregg says
The prices they sold rangers.com, 333.com, and bit.com, in a market that lacks liquidity and prices can be all over the map, are not abnormal.
Rest is a mess. Good luck Thunayan!
Nuno says
bit.com for $300,000, that made me clench.
Mr.Devil says
Any cheap expired domain available?
John Berryhill says
As the firm’s founding partner, Forrest Gump, used to say, “Stupid is as stupid does.”
Anne Laroux says
I used Akin Gump for my company a few years ago. Kim Koopersmith was so rude and completely clueless of what was going on at my office. They need to get rid of her.
thelegendaryjp says
The real loss here cannot me measured in terms of money. Someone with a substance abuse problem is obviously harmful to themselves and those around them. It lead to family issues so it seems and perhaps lawyers who may or may not have taken advantage of the situation. Hoping it is turned around and what is most import, one’s health and family and made the focus. Money comes and money goes people, some things cannot be bought.