Dot1web can be used to pay creditors
April 21, 2003
INCLINE VILLAGE — A Washoe County District judge ordered that the computer-related assets of Dot1web and its subsidiary Lowestbids.com be seized to help repay more than $550,000 owed to Minnesota-based Arrowhead Consulting Group.
Judge Steven Kosach ruled last week at a hearing Bob DeMaio, president and CEO of Dot1web and Lowestbids.com, did not attend, despite attempts to serve him with notice.
DeMaio can respond to the order before it takes effect. He could not be reached for comment.
In e-mail comments, Arrowhead attorney Mike Hoy said his client was entitled to the assets because DeMaio conveyed title to them as security in October for a short-term loan, on which he defaulted.
The assets named in Arrowhead’s suit include the computers, networking equipment and software of Dot1web and Lowestbids.com.
The networking equipment includes the servers that hosted the Web sites for DeMaio’s companies that were seized by California-based Delta Communications in February for nonpayment.
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“Delta Communications has agreed to return all of the … servers that it took from Reno, in exchange for a release and dismissal of the lawsuit against Delta,” Hoy said.
Delta Communications officials could not be reached for comment.
The assets may include many desktop computers that California-based Steven Weiss Co. wants to recover for nonpayment.
Other obligations hanging over Dot1web and Lowestbids.com include:
n A record $429,480 judgment by Nevada for failure to pay wages to 67 employees whom DeMaio laid off in December.
n More than $280,000 owed to a Florida-based CD manufacturer.
n More than $90, 000 owned to Freeinetworks in its bankruptcy case.
n Nearly $30,900 owed for unemployment benefits of the former employees.
n More than $6,000 owed in federal corporate taxes.
The Nevada Labor Commission said DeMaio will face criminal charges in the wage case if he does not address the matter by the end of this month.