Epik Faces Lawsuit Over Alleged Misappropriation of Funds

Started by Domaining News, Apr 09, 2023, 04:24 AM

Previous topic - Next topic

Domaining NewsTopic starter

Epik has been sued at the United States District Court Western District of Washington of Seattle.

The lawsuit includes Epik Holdings, Inc., Masterbucks LLC, Rob Monster, and Brian Royce as defendants.

According to the lawsuit, Matthew Adkisson paid $327,000 to Epik Escrow service for the purchase of the domain name nourish.com but never received it. Epik still owes Adkisson $307,000.

The lawsuit alleges that Epik and its executive officers misappropriated funds from multiple consumers, using payments from new victims to pay off old debts, and transferring money between different Epik companies to hide their fraudulent activities.

Adkisson contacted Epik in May 2022 to purchase the domain name nourish.com. During the transaction, Defendants made false representations, embezzled Adkisson's funds, and deceived him with empty promises of repayment.

Despite admitting liability, Defendants refuse to compensate Adkisson. The purpose of this Complaint is to recover the owed amount and put an end to the ongoing fraud against consumers.

Adkisson emailed Rob Monster on May 11, 2022, expressing his interest in purchasing the domain name nourish.com, which was listed for sale through Epik.

Monster stated that the domain could be sold for "$300K net to seller, which means $327K gross at our 9% commission" and claimed that the sale could be completed that day.

Monster instructed Adkisson to use Epik's escrow services for the transaction.

Adkisson agreed to pay $327,000 and requested Monster to set up the escrow account.

Adkisson followed Monster's instructions and transferred the funds to Epik's escrow service on May 11, 2022.

Despite Monster's assurance of a same-day completion, Adkisson did not receive the domain name and never received it afterward.

On June 1, 2022, Monster informed Adkisson of issues with the seller but assured him that Epik was working to resolve them as soon as possible.

Defendants continued to make promises of delivering the domain name, keeping Adkisson in a state of expectation for months.

On November 14, 2022, Adkisson requested the return of his escrow funds since the domain name had not been transferred. Brian Royce promised to try to secure the domain name and assured Adkisson that if it failed, the funds would be returned. However, it is believed that Royce made this promise knowing that Epik had already spent the escrow funds and had no intention of returning them.

Nearly three weeks later, the domain name had still not been secured, and Adkisson once again demanded the return of the escrow funds on December 2, 2022.