For Immediate ReleaseRegister.com, Afternic.com and
DNEscrow Charged with Fraud, Misrepresentation, and Dealing in Stolen Domains
(April
4, 2001, Boca Raton, Florida).
A South Florida businessman is bringing suit
in the U.S. District Court in New York against Register.com, Afternic.com and DNEscrow
for fraud, misrepresentation and dealing in stolen domains.
Rick Schwartz, known
on the Internet as the Domain King, purchased the domain PROPERTIES.COM at auction
on Afternic.com, and utilizing the escrow facilities offered by DNEscrow (an affilliate
of Afternic.com) paid $61,188.00 for the domain.
Three weeks after the domain was
transferred to Schwartz, and without any notice to him, the domain was transferred
back to its original owner by Network Solutions. Although he tried contacting Network
Solutions, Register.com (the registrar of the domain and owner of Afternic.com) and
DNEscrow, he was unable to get a response from anyone.
Schwartz subsequently learned
of other buyers who spent a considerable amount of money at auctions on Afternic.com
and whose domains were taken back by the original owners claiming theft.
According
to Howard Neu, attorney for Schwartz, a lawsuit is being prepared to be filed against
Register.com who allowed the domain to be transferred out of Schwartz’ name without
any authority or notification, against Afternic.com who allows stolen domains to
be auctioned off to innocent bidders and then receive a commission on the sale and
against DNEscrow for falsely advertising that they are the only“safe” way of purchasing
domains on the web but refusing to return the domain or the money when it is determined
that the domain that was auctioned was not owned by the seller.