discuss [Resolved] Domainer Loses $26k On A Stolen Domain!

[DaveX]

Darn! Another scam and this time it is an experienced domainer James Booth.

James must have thought he was making a sound acquisition as he transferred approximately 26k to escrow for CQD.com. Instead, after completing the escrow, the domain was taken from his account by the registrar without notification and returned to the "true" owner.

Turns out the person that sold him the domain CQD.com, may not have been the true owner.

Apparently this incident involves several parties including the registrar and the escrow.


Thanks to Theo over at DomainGang for the tip on this.

 

[creataweb]

CQD.COM IS STOLEN PERSONAL PROPERTY!

So this is what I am guessing happened now:

Someone hijacked the name from you (the original owner)
Then posted for sale somewhere & completed the deal with a fake ID on Escrow
NetSol got a complaint from you
NetSol clawed the name back
Buyer sent lawyers after NetSol
NetSol gave name back to buyer
Original Owner (you) are out a domain
Seller still has the $26k
Buyer has domain

 

[spoiltrider]

CQD.COM is STOLEN PERONSONAL PROPRTY. Legal action is commencing and i am going after the 7 parties involved in this personal property theft.

 

[spoiltrider]

So this is what I am guessing happened now:

Someone hijacked the name from you (the original owner)
Then posted for sale somewhere & completed the deal with a fake ID on Escrow
NetSol got a complaint from you
NetSol clawed the name back
Buyer sent lawyers after NetSol
NetSol gave name back to buyer
Original Owner (you) are out a domain
Seller still has the $26k
Buyer has domain

Seller is who? i created this domain for my business 22 years ago. my web site and emails were all up and running. the SELLER is not me, the RIGHTFUL OWNER OF CQD.COM!

 

[creataweb]

Seller is who? i created this domain for my business 22 years ago. my web site and emails were all up and running. the SELLER is not me, the RIGHTFUL OWNER OF CQD.COM!

Seller = Whoever stole the domain

 

[spoiltrider]

Even though the domain in question indeed might be stolen, the technical question remains: Is a domain name property? Just for the sake of clarity. I heard that different courts were of different opinions. Some courts said it is just a contractual right, or, at least, domains are not "goods". So applicable laws may be different. May be @jberryhill can clarify this ?

"someone" cashed a check and showed and ID to do it...in California. a guy.
i'm a girl, in FL out my domain. out my business presence. out of patience. I NEVER GOT A PENNY BECAUSE I DID NOT SELL MY DOMAIN! i just want my domain back. avoid all the legal fees that will be associated with this battle i will push through. i will work the rest of my life to prove this is my domain to get it back, and james booth purchased and is now dealing in stolen personal property.

 

[Addison]

It would also be interesting to find out _whom_ did escrowcom "verify" with their famous KYC as a seller? A company listed in whois? Or somebody else with a fake ID (and, if so, did they bother to check domain whois)?

YES SOMEONE ELSE PRETENDED TO ME AND STOLE MY DOMAIN! i was never "KYC verified" there is not blue ink signature of mine on this transaction. James Booth never contacted me! I WAS NEVER CONTACTED. BUT I HAVE PROOF OF MY DOMAIN EMAIL BEING HACKED. LEGAL ACTION IS BEING TAKEN ON MY DOMAIN CQD.COM i am the victim!

Escrow.com KYC failure? Enormous story. @equity78 @EJS @Acroplex @Domain Shane

 

[tonyk2000]

As a curiosity, I performed a few basic searches and had no issues confirming that there indeed exists an operating business called ComQuest Designs (CQD) owned/operated by one Rebecca and/or one Joe, in the state of Florida, for many years. If I was purchasing something owned by them - I would have no issues finding their actual contact details just to confirm that they are actually selling it.

The buyer says he performed these checks. Member @spoiltrider is of different opinion. Something is wrong here. In any case, one would expect that any reputable escrow company will voluntary perform similar checks for any 5-6 figures transaction before giving OK to transfer the domain and release the funds. Did this happen? We do not know.

 

[Dave]

You should probably read up on @BoothDomains - It's not easy to achieve what both James and his brother have achieved. How many millions in sales have you done?... this year

What they have achieved is inspiring and fantastic.

I once sent a cheeky offer for that lovely f***f*** / com domain name. Got to try our luck sometimes.

 

[wwwweb]

JAMES BOOTH - YOU PURCHASED A STOLEN DOMAIN cqd.com has always been my domain.
I AM TAKING LEGAL ACTION
AND I WILL FILE REPORTS ON THE INTERNET AND SMEAR YOUR NAME if you don not back off and return my domain to me. YOU ARE DEALING WITH STOLEN PERSONAL PROPERTY. i never authorized this sale! you have shut my business down with all this. i am going to sue everyone involved in this.

It's probably already been resold

This will be an interesting case for sure, just for case law.

Given this domain is tied to an operating business, will further complicate matters. Right now it looks like all parties involved will be losers in legal fees here, which will exceed the cost of the domain. I can understand the original owners desire to reclaim a domain they have owned for 22 years at all cost. Hopefully escrow has some kind of insurance for this, and they can give the buyer back their funds, and give the original owner back their domain.

Each party will end up spending more than $10K each in legal fees.

Escrow in CA, Owner in FL, Buyer somewhere overseas.

 

[Josh R]

Just when you think everything has been solved... What drama.

 

[wwwweb]

Just when you think everything has been solved... What drama.

It always seems ENOM, and Netsol are the ones these circumstances circle around.

Anyone that has a 3L.com should put it behind privacy, and put as many locks on it as possible. Don't give anyone any chance to compromise your info. This person must have gone to the bank where the check was drawn to certify it. Otherwise the bank must have put a hold on it given the amount.

Spoiltrider who told you a man cashed the check?

 

[forge]

YES! MY (yes my) domain cqd.com was ALMOST stolen. The thief used escrow.com as the sale platform. they reported 19k for the sale.

Can someone (preferably spoiltrider/Rebecca) please explain the above statements?

Either cqd.com was stolen or it wasn't.

 

[wwwweb]

Can someone (preferably spoiltrider/Rebecca) please explain the above statements?

Either cqd.com was stolen or it wasn't.

What is being stated is that a fraudster took possession of the domain thru their netsol account, then faked verification thru escrow, then requested a check, and cashed it. Buyer, and real owner caught up in the mess. That is how I understand it.

 

[Josh R]

What is being stated is that a fraudster took possession of the domain thru their netsol account, then faked verification thru escrow, then requested a check, and cashed it. Buyer, and real owner caught up in the mess. That is how I understand it.

What doesn't make sense is why Rebecca would be so hostile to James. Regardless of what's going on, he's not the bad guy. She should be looking to work with him, not against him.

 

[forge]

Why would "they" (whoever they are) report $19k for the sale when James Booth claims to have paid $26k?

Surely the Escrow transaction was for one amount or the other.

 

[wwwweb]

What doesn't make sense is why Rebecca would be so hostile to James. Regardless of what's going on, he's not the bad guy. She should be looking to work with him, not against him.

Because she probably said give me my domain back, and he can't, as he feels he is the rightful owner, since he paid for it, hence the stand off. It's a bad situation for all parties involved, I can see the side of the owner of 22 years, and the buyer.

 

[xynames]

In some courts of law, it would come down to whether this was a bona fide purchaser. For example, did he buy a Picasso that was worth a million for $50K and should have known something was wrong?

However, this sort of analysis of "bona fide purchaser" generally takes place after some time has passed, as in years, and in such cases the courts are reluctant to disgorge a bona fide purchaser of something for which he has paid in good faith a fair price many years prior. Did the buyer do some due diligence to make sure he was buying from the actual owner? Buyer claimed yes, owner says - no. In this situation here, assuming what the owner of the domain says is true, where the buyer was immediately put on notice, I think most courts would side against him, even if he paid fair market for the domain, which sounds like - he did not pay fair market anyway.

As far as liability with the escrow company, I assume that either or both sides will sue them too, but I think their disclosures wash their hands of liability once escrow has closed. Whether these disclaimers from the escrow company will hold up in court, under these circumstances though, is not entirely clear.

 

[wwwweb]

In some courts of law, it would come down to whether this was a bona fide purchaser. For example, did he buy a Picasso that was worth a million for $50K and should have known something was wrong?

However, this sort of analysis of "bona fide purchaser" generally takes place after some time has passed, as in years, and in such cases the courts are reluctant to disgorge a bona fide purchaser of something for which he has paid in good faith a fair price many years prior. In this situation here, assuming what the owner of the domain says is true, where the buyer was immediately put on notice, I think most courts would side against him, even if he paid fair market for the domain, which sounds like - he did not pay fair market anyway.

As far as liability with the escrow company, I assume that either or both sides will sue them too, but I think their disclosures wash their hands of liability once escrow has closed. Whether these disclaimers from the escrow company will hold up in court, under these circumstances though, is not entirely clear.

The domain is maybe worth $32-$40K based on an average generic sale, probably more if they find a targeted end user. The original owner knows the kind of offers that landed in the inbox. I am sure owning it for over 2 decades they probably think more just based on attachment, and personal purpose.

 

[xynames]

Why would "they" (whoever they are) report $19k for the sale when James Booth claims to have paid $26k?

Surely the Escrow transaction was for one amount or the other.

This is where we are getting into discrepancies...along with the buyer's claim that he contacted the owner, and the owner's claim that he did not.

I am about to buy a domain from someone here on NamePros for a piddling $40., and I will not send the money over via PayPal until after the seller sends me an email from the registered WhoIs email address for the domain. You're telling me that this buyer here, it did not occur to him to have that done, over a five figure sale?

 

[wwwweb]

This is where we are getting into discrepancies...along with the buyer's claim that he contacted the owner, and the owner's claim that he did not.

At $19K, it is a pretty quick flip to a Chinese broker/buyer, probably $5-8K upside within 72 hours if you have a good broker contact.