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Real Estate News and Advice |
November 25, 2009 |
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NAR Cuts Losses With Websuite
by Blanche Evans
According to Seattle bankruptcy court documents, the National Association of Realtors is going to have to give up Websuite claims worth $500,000 to continue with its troubled e-PRO Internet certification technology program. The terms of the petition which was approved by the bankruptcy court judge on March 23rd, state that Websuite's Trustee agrees to "operate, maintain, and support the e-PRO program for the purpose of providing all currently registered students who have fully paid for the program the opportunity to complete the program and receive certification therefore through the NAR." In exchange, the NAR will tender an additional $40,000 to Websuite's Trustee and to waive its pre-petition claims of $500,000, and its post-petition claims for royalties rising from the original Websuite/NAR agreement. NAR officials who were party to the new agreement could not be reached for comment to confirm or deny that the NAR is indeed kissing off a half million dollars in order to rid itself of Websuite. In a prepared statement, NAR Senior Vice President Bob Goldberg, head of the committee that selected Websuite as a provider and who okayed eSphere to continue operations of the e-PRO contract for further losses, said, "NAR is committed to the continued enhancement of e-PRO through use of an experienced educational design team that consists of staff and outside consultants with member input." The judge ruled that the Websuite founders and new investor Mark Anderson were not to have anything further to do with Websuite. But some of those once involved with Websuite worry that Progressive Endeavors, the company apppointed by the Trustee to continue operating Websuite, may be a shell company. According to former investor Daryl Barlett, some former Websuite employees allege they recognized Progressive Endeavors' new CEO Bob Hayes as one of the men who ousted employees from the building the day Websuite was shut down by eSphere in October 2000. Websuite investor Dave Cleveland says he has tried to find out who Bob Hayes and Progressive Endeavors are. The URL, www.progressiveendeavors.com was registered to the former technology director of Websuite, Glen Geller last July, about the time Websuite ran out of money. The company's headquarters is located in a building owned by Mark Anderson, says Cleveland. Not true, says Bob Hayes. "Geller was our employee until he went to work for Anderson in December." When asked what his relationship is with Mr. Anderson, Hayes replied, "We don't have one. There are stories floating around that we are owned by Anderson but we are a subsidiary of Merchant Credit Card Services. eSphere had no staff and we were put under contract to operate eSphere. Now our contract to operate Websuite has been ratified by the judge." Did he oust Websuite employees that day? "I was there that day," says Hayes. "The very first day we were contracted by Anderson to come to Seattle from Las Vegas and assist them with moving servers to Las Vegas. Our understanding was that eSphere owned the servers. "Fourteen days later we issued our invoice to Mark Anderson, and we didn't get payment," explains Hayes. "We got into a legal situation and about the same time we began to meet the stockholders and we got a whole different picture of what was really happening. "The only way we could recover our expenses was to do battle with Mark Anderson," says Hayes. So what will the NAR get for its money besides an escape from an unsavory partnership? The NAR gets to retain the rights to use the e-PRO name and the new ruling prevents Websuite from being able to use it. However, Websuite retains the intellectual property. According to a spokesperson for the NAR, "This is meant to be good news for the e-PRO students. We will pay to keep the students going. Our choice was how to move forward." A new technology provider for the re-launch has yet to be selected, said the spokesperson. "But you can bet we'll look much more carefully at this one," he said. Meanwhile, the e-PRO students will get to finish their coursework. "The good news is Websuite will be general manager with responsibility to manage this company," says a triumphant Hayes. "Monday morning we will come out of the gate flying." Published: March 26, 2001 Use of this article without permission is a violation of federal copyright laws.
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