The head of embattled Dot1web said Thursday recent problems besetting his company are on the verge of being solved.
"Very shortly, all issues will be resolved," said President and CEO Bob DeMaio. "That includes debts, employees and lawsuits. I expect to be calling employees tomorrow to notify them."
DeMaio wouldn't comment further, nor about Dot1web and its subsidiaries being involved in two lawsuits.
A suit filed in Washoe County District Court by Dot1web subsidiary Lowestbids.com against several parties, alleges there is a conspiracy to ruin the company.
The other, filed in Broward County, Fla., alleges Dot1web owes Green Solutions more than $280,000 for compact discs it created.
Andrew Green, president and CEO of the Florida-based company, said he contacted the FBI because a check from Dot1web for nearly $248,000 had bounced.
But DeMaio said the check should not have been deposited.
"That check was a good-faith gesture, and they were never supposed to cash it," DeMaio said.
But the suit alleges the check was given to Green Solutions "to be deposited on Nov. 14, 2002, if a bank wire transfer" for $284,000 was not received on that date. It says Green was told this during a telephone conference with the Dot1web board of directors. Green said the transfer did not take place, so he attempted to deposit the check.
DeMaio also said he didn't receive the CDs owed to him for a $56,700 payment to Green Solutions. Green acknowledges the payment was received, but maintains it covered only some of the CDs that eventually ended up in DeMaio's hands before Green stopped shipments.
DeMaio said Dot1web has received additional funding. He said his actions were hard on employees, but says he will do right by them.
"If I had filed Chapter 11, the employees wouldn't be paid," DeMaio said. "But I didn't go away. We didn't leave. We just hunkered down."
DeMaio said he has found new offices, but hasn't signed a lease.
"My first goal is to pay everyone off first, and then scale back up," he said.
But an older claim for more than $232,000 against Lowestebids.com could come back to haunt Dot1web.
John Furutani, attorney for the California-based Internet advertising firm TrafficMarketPlace, said his clients are trying to collect a judgment for the money obtained in Los Angeles County Superior Court in 2000. The judgment was for nonpayment of services.
Nevada Labor Commission spokeswoman Amanda Getzoff said 58 claims for unpaid wages had been received by Wednesday.
Former Dot1web employees who filed claims with the commission said they haven't been paid yet and are worried that it could be a long time before they are.
Getzoff said the commission had set a target of 60 days to resolve each claim, but it could take as long as six months.
