Beware of WorldVentures – Review

Wayne Nugent is obliged to turn up “passwords to various internet domains that belong to” parent business Spherature Investments as part of the WorldVentures bankruptcy proceedings.

The Liquidating Trustee filed a complaint for contempt since he hasn’t.

As per the bankruptcy plan for Spherature Investments that was approved on November 12th, Nugent is compelled to provide the passwords.

Verona International Holdings purchased WorldVentures as a result of that strategy.

as specified in the Trustee’s motion of December 16;

Spherature Investments submitted the Notice of Plan Supplement on September 30, 2021.

The list of domain names and intellectual property (the “Domains”) that Spherature Investments owns and that must be transferred by Spherature Investments and purchased by Verona International Holdings by the Plan’s provisions was included in the Plan Supplement.

Several of the Domains are managed by Mr. Nugent using a “GoDaddy” account.

The GoDaddy account was previously accessible to Spherature Investments.

The Domains were allegedly transferred to Verona Holdings by Spherature Investments.

Spherature Investments was unable to access the GoDaddy account on November 10, 2021, however.

According to information and belief, Mr. Nugent or a person acting on his behalf altered his GoDaddy password, rendering the Debtors unable to transfer the Domains.

To assert control over the Domains, Mr. Nugent reportedly altered the password.

Mr. Nugent has been asked to grant access to the GoDaddy account or transfer the Domains to Verona Holdings at the request of Spherature Investments.

Additionally, Mr. Nugent has been asked to transfer the Domains to Verona Holdings at Verona Holdings’ request.

In response to these demands, Mr. Nugent eventually moved part of the Domains—but only after making many requests and using delaying strategies.

However, Mr. Nugent has resisted transferring the most crucial Domains, doing so only after several requests and the intervention of counsel, with Rovia.com remaining the most crucial Domain that has not yet been moved.

The Trust suffers harm as a result of Mr. Nugent’s refusal to transfer the Domains.

The Debtors are unable to transfer their Domains to the Purchaser to satisfy their commitments under the Plan, and

(ii) Up until the Domains are transferred, Microsoft will need the Trust to continue paying continuing service costs for the upkeep of domain-related data.

An expedited motion was filed by the Trustee. No decision has been taken as of yet.

In related news, Nugent was required to deliver a copy of his tax returns to Spherature Investments on December 17.

The ruling is a part of a larger dispute about covert bankruptcy payments between Spherature Investments and Nugent.

Watch this space for a ruling on Nugent’s contempt.

26th December 2021 update Spherature Investments’ motion contains a response from Wayne Nugent in it.

In his statement, Nugent says that “technical challenges with the GoDaddy website” are the reason he has been unable to transfer the names.

Nevertheless, the Purchaser has now received ownership of all sought domain names, including rovia.com.

There is no clear and persuasive evidence to support granting the Motion and holding Mr. Nugent in contempt since he has been making good faith efforts to transfer the sought domains to the Purchaser for weeks and does not object to the transfer – a fact that the Motion conveniently omits.

The issue will be heard by the court on January 18th.

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