Lawsuit reveals details on the company’s deal with Oak Hill and its subsequent fall from prominence.

Oversee.net was once a high-flying darling of the domain name industry. It was rolling in dough–over $200 million a year in revenue at one point. It threw lavish parties for its clients, taking them to the Playboy Mansion in Los Angeles and to shoot AK-47s in Prague.

But the story has an unhappy ending. While we already knew some of the story about the company’s fall, including the precipitous decline of domain parking that hurt its DomainSponsor business and its ill-advised purchase of SnapNames, Domain Name Wire has uncovered new revelations thanks to a lawsuit filed this year.

Oversee.net co-founder Frederick Hsu, through the Frederick Hsu Living Trust, sued Oak Hill Capital Partners and many former board members and executives earlier this year, alleging (pdf) that they undertook a campaign to sell off the company’s productive assets to “tunnel” money to investor Oak Hill.

To understand the allegations, you need to understand the history of Oversee.net. Click here to continue reading…