A company alleging Incline Village Internet firm Dot1web owes it more than $280,000 for compact discs it created has referred the matter to the FBI for investigation.
Andrew Green, president and CEO of Florida-based Green Solutions, said this week he had contacted the FBI because a check from Dot1web for nearly $248,000 bounced. The check was to cover costs of making more than 400,000 CDs bearing Dot1web Internet service software.
"That check bounced," Green said. "There's no ifs, ands or buts about it. He's blaming everyone else for it, but it's his responsibility."
Green Solutions filed a lawsuit against Dot1web on Nov. 6 in Broward County, Fla., for not fulfilling the contract terms. The suit names Dot1web President and CEO Bob DeMaio. Also named are board members CFO Colin Quinn, Larry Warkentin, Joseph Franco and Wally Langeman.
"We served DeMaio with the suit on (Dec. 27), the day he was evicted from his offices," Green said. "He has 20 days from then to reply. "
DeMaio could not be immediately contacted for comment. In earlier published comments, he claimed Green Solutions never delivered the CDs, a charge that Green denies.
Green said he contacted the Security and Exchange Commission, the state lieutenant governor's and attorney general's offices and Washoe County authorities before going to the FBI.
"I've done everything possible to put as much heat as possible on this guy," Green said. "It's now a federal matter."
Michelle Youngs, a Washoe County Sheriff's Office spokeswoman, verified that Green Solutions had contacted the office's property and fraud division, which referred the matter to the local FBI office.
The FBI would neither confirm nor deny if the matter was under investigation.
Green said he was going to have to sell his house in order to pay the vendors that are owed for manufacturing the Dot1web CDs.
His problems with Dot1web are among the latest to come to light. It laid off more than 60 employees last month, many who have filed claims for unpaid wages with the state Labor Commission. Commission officials said last week the number of claims had reached 30.
"Since then, they've been coming in every day," said Amanda Getzoff, spokeswoman for the Department of Business and Industry, which oversees the Labor Commission.
Several people claiming to be investors in Lowestbids.com, a wholly owned Dot1web subsidiary, claim that DeMaio hasn't repaid personal loans to him for the purpose of buying out Lowestbids.com from what they say DeMaio characterized as a "hostile takeover" of the company.
John P. Haggerty, who identified himself as a first sergeant in the Minnesota National Guard, said he's been trying since August to get DeMaio to repay money he loaned him in February. He said the terms of the loan entitled him to a 10 percent fee.
Others who asked not to be identified claim they have not been given stock certificates that were offered as an alternative to the 10 percent return on the loan.
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