Man who owes former employees says he made offer but was rejected

Dot1Web owner Bob DeMaio said that an offer of $400,000 he made five to six weeks ago, in an attempt to pay back wages owed to former employees of the Incline-based Web company, was rejected by the state controller's office.

But Theresa Moiola, Assistant State Controller, said she was unaware of any offer made by DeMaio.

"I think I would have heard from Tom Creal (of RecoveryMetrics, the collection agency contracted by the state) if there had been an offer made by Mr. DeMaio," Moiola said.

DeMaio, who is currently awaiting trial on criminal charges that he failed to pay wages to employees who were let go in Dec. 2002, said that it's not Dot1Web, but another company he owned, LowestBids.com that is the object of the suit.

"Dot1Web is moving forward with business as usual," DeMaio said. "LowestBids has now been taken over by the state and that's who the judgments are against, not Dot1Web."

DeMaio said that he thinks that the controller's office rejection of his offer is politically motivated.

"I'm just trying to get these people (former employees) paid and, it's almost like they (controller's office) are just playing politics," DeMaio said.

DeMaio said that Dot1Web is a viably traded corporation out of Minnesota, while LowestBids.com traces it's genesis to Nevada.

"The state has taken over receivership, so I have nothing to do with what happens right now with regards that company," DeMaio said.

However, a look at the Dot1web.com website on Tuesday showed that the copyright is held by LowestBids.com, Inc.

State Controller Terry Johnson confirmed that he understood that the state had taken over LowestBids. com, but had no knowledge of an offer made by DeMaio.

"Mr. DeMaio has made an abundance of offers in the past and has never come through," Johnson said. "He has quite a track record and if he offered a $400,000 settlement, I'd sure know about it."

Johnson added that DeMaio has also acquired a track record when it came to legal matters over the past two years.

"He's had all sorts of opportunities, but has never responded, or shown up at court during administrative or civil matters," Johnson said, adding, in reference to DeMaio's upcoming pre-trial conference on Feb. 17, "It took a criminal matter to get him to make an appearance."

As for what will transpire at the conference, Johnson said, "This will probably be a procedural hearing and nothing more. It could be a while before this actually comes to trial, but we'll just have to wait and see."