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{{Infobox company
{{Orphan|date=February 2009}}
| name = Fund.com Inc.
'''Fund.com Inc.''' (OTCBB: FNDM.OB) is a publicly traded Internet company operating in the financial services, product development, licensing and publishing sectors, based in ], New York. The company serves the needs of financial institutions, investors and the general consumer seeking information regarding investment ] options, including ]s, ]s, ] (ETFs), ]s, etc. Fund.com considers itself the sole company comprehensively focusing on the fund market for all potential investors.
| logo = ]
| traded_as = {{OTCPink|FNDM|type=noinfo}}
| foundation = {{start date|2007}}
| location_city = ]
| location_country = US
| key_people = Jason Galanis<ref name=bi_jason>{{cite web |url=https://www.businessinsider.com/the-past-may-be-a-prologue-for-fundcom-and-weston-capital-2011-4 |title=The Past May Be A Prologue For Fund.com And Weston Capital |date=April 20, 2011 |publisher=Business Insider Australia}}</ref>

}}
'''Fund.com Inc.''' is a US-based financial services information publishing company and ] that focuses on the ] industry. Its aims were to provide a destination website for investments, including ]s, ]s, money market funds, ]s (ETFs), ]s, ]s, commodity funds and other types of pooled investment vehicles.

The company saw a significant decline in its share price after a soured business deal in late 2009 after which it has only traded in the “]”. Some of its senior executives were connected to Westmoore Capital from which Fund.com raised $1.5 million in 2008. Westmoore Capital was closed down by the ] for running a $53 million ].<ref name=bi_jason />


==History== ==History==
The company was formed through a reverse takeover in January 2008 of ''Eastern Services Group'', a state and local tax advisor for Nevada casinos. After the merger the name was changed to Fund.com<ref>{{cite web |url=https://nz.finance.yahoo.com/q/pr?s=FNDM |title=Fund.com Inc. (FNDM) -Other OTC |publisher=Yahoo Finance |date=June 6, 2014}}</ref><ref name=bi_jason />

===Domain name purchase===
In March 2008, Clek Media announced that it had brokered the sale of the domain name “Fund.com” for nearly $10 million in an all-cash transaction, to the company Fund.com Inc. Although never confirmed by the company itself, the purchase price would have been the highest recorded price paid for a web site domain up to that point, followed by Porn.com ($9.5 million) ] ($7.5 million) and Diamond.com ($7.5 million).<ref></ref> However, some industry insiders have questioned the validity of the amount reported.<ref>{{cite web |url=http://www.domainnamenews.com/domain-sales/fundcom-sells-for-a-world-record-10-million/1476 |title=Fund.com Sells for a Record $10 Million |date=December 3, 2008 |publisher=DomainNameNews}}</ref>

===AdvisorShares acquisition===
In 2008 the company purchased a 60% stake in ] for an initial payment of $275,000, on October 31, 2008.<ref>{{cite web|title=AdvisorShares Investments, LLC Purchase and Contribution Agreement|url=https://www.sec.gov/Archives/edgar/containers/fix230/1335795/000121390008002161/f8k110608ex10i_fund.htm}}</ref> Fund.com agreed to pay Noah Hamman, who founded AdvisorShares, a base salary of $240,000 and a minimum guaranteed bonus of $100,000 per year after the acquisition.<ref>{{cite web|title=Employment Agreement|url=http://www.lawinsider.com/contracts/1brpzGDPlgmtiTxQtJVuBN/fundcom-inc/employment-agreement/2008-11-06|publisher=Law Insider}}</ref> Just a week later on November 7, 2008 Noah Hamman's former company, Arrow Funds, commenced arbitration proceedings against Hamman and AdvisorShares for usurping Arrow's intellectual property including its business plan in establishing AdvisorShares. However, Arrow's lawyers mentioned that an unsuccessful mediation had taken place prior to initiating the arbitration proceedings. In January 2009, Arrow Funds requested a hearing with the SEC to challenge AdvisorShares' application for exemptive relief filed the previous month. Arrow and their counsel claimed that Hamman "To enable the Application to proceed, deliberately thwarted and delayed the selection of the Arbitration tribunal members."<ref name=Arrow>{{cite web|title=Request for Hearing on Application of AdvisorSharesInvestments, LLC and AdvisorSharesTrust, Investment Company Act Release No. 28568; 812-13488|url=http://www.sec.gov/comments/812-13488/812-13488-1.pdf}}</ref> This request to block the application for exemptive relief was denied on July 20, 2009.<ref>{{cite web|title=INVESTMENT COMPANY ACT OF 1940 [Release No. 28822|url=http://globaldocuments.morningstar.com/DocumentLibrary/Document/e7d98e8a8d433c15.msdoc/original/f8k072109ex99i_fund.htm|access-date=2014-01-18|archivedate=2013-12-15|archiveurl=https://web.archive.org/web/20131215193954/http://globaldocuments.morningstar.com/DocumentLibrary/Document/e7d98e8a8d433c15.msdoc/original/f8k072109ex99i_fund.htm|url-status=deviated}}</ref> "On March 1, 2010, Mr. Hamman, Arrow and the Members agreed to settle the Arbitration"<ref>{{cite web|title=FORM 8-K Fund.com |url=http://www.sec.gov/Archives/edgar/containers/fix230/1335795/000121390010000804/f8k030110_fund.htm}}</ref>

===Vensure Employer Services attempted acquisition===
On November 4, 2009, Fund.com announced its purchase of an equity interest in Mesa, AZ.-based Vensure Employer Services, Inc., a professional employer organization that provides benefits and payroll administration, health and workers' compensation insurance programs, employee training and development services, and retirement benefits plans, such as 401k's, for small and medium businesses. The equity is represented by $21.9&nbsp;million of participating preferred stock of Vensure.

Fund.com was unable to meet the contractual obligations of the purchase and the transaction was subsequently reversed.<ref>{{cite web |url=http://biz.yahoo.com/e/100824/fndm.pk8-k.html |title=Termination of a Material Definitive Agreement, Notice of Delisting or Failure to S |date=August 24, 2010 }}</ref>


===Whyte Lyon Socratic acquisition===
Fund.com Inc. was formed in 2007 by Internet entrepreneurs Daniel Klaus, Lucas Mann, and Darren Rennick, who subsequently enlisted the executive services of Wall Street industry veterans; appointing Ray Lang the CEO, Greg Webster, president and Phil Gentile, COO.
In November 2009, the company also announced that it had purchased 100% of the capital stock of Whyte Lyon Socratic, Inc., a developer of online education programs for
investors, debtors and professionals. As part of that transaction, Whyte Lyon's president Joseph J. Bianco was named chairman of the board of Fund.com.<ref></ref>


Whyte Lyon Socratic specialized in long-distance learning and assisting online students in developing the necessary skills to understand financial transactions and financial markets; develop money management skills to help them manage their income and wealth; and reach particular goals, including homeownership, debt reconciliation, and improved credit scores.
The team took Fund.com public by executing a reverse merger with Eastern Services Holdings in January 2008. The merger resulted in the name change to Fund.com Inc, a unique ] number, and the ticker “FNDM.BB” on the ] securities market.
==Company Structure==


===Decline===
Fund.com operates through three fully owned subsidiaries. The first, '''Fund.com Technologies''' operates Fund.com’s Internet properties and develops web investment content and tools. The second, '''Fund.com Managed Products Inc.''', specializes in developing asset management products. This subsidiary’s primary focus is to identify, construct, publish and license investment fund indexes. Fund.com Managed Products Inc. fully owns another subsidiary: '''Fund.com Capital Inc.''', which makes active (non-passive) investments in other financial institutions, fund management companies and strategic products.
In September 2011 an unusually large 1 for 120 reverse split of Fund.com shares failed to stop the share price slide. Fund.com lost 99% of its value that year giving a market value of around $8.4 million<ref name=bi_jason />


==Domain Name Sales== === Recovery ===
In late 2016, Thomas Braziel was assigned as a receiver to Fund.com and investigated how he could monetize the remaining assets of the company on behalf of shareholders. Among other things, he is trying to recover the fund.com URL that the previous management sold in an allegedly fraudulent transaction involving John Galanis. In addition, fund.com and ] settled a lawsuit over an ownership dispute. While AdvisorShare has already paid fund.com $2 million, Braziel is trying to recover an additional $2.2 million owed by AdvisorShares and unseal the terms of the confidential settlement made with the previous owners of fund.com.<ref>{{cite web|last1=Svenda|first1=Jan|title=Fund.com - Peculiar Legal Opportunity With Activist Catalyst|url=https://seekingalpha.com/article/4091377-fund-com-peculiar-legal-opportunity-activist-catalyst|website=Seeking Alpha|accessdate=20 August 2017}}</ref> In July 2018 Braziel successfully recovered the fund.com domain name for the receivership and is pursuing further action against previous insiders and recovery of other assets.<ref>{{Cite web|url=http://www.fndmreceivership.com|title=Fund.com Inc.|website=Fund.com Inc.|access-date=2018-07-25}}</ref> In July 2024 Braziel was stripped of his position as receiver.<ref>{{Cite web |date=July 18, 2024 |title=MEMORANDUM OPINION ADDRESSING EXCEPTIONS TO SPECIAL MAGISTRATE’S REPORT AND RECOMMENDATION |url=https://courts.delaware.gov/Opinions/Download.aspx?id=366760 }}</ref>


==See also==
In March, 2008 Clek Media announced the company had brokered the sale of the domain name “Fund.com” for nearly $10,000,000 in an all-cash transaction, to the company Fund.com Inc. Fund.com Inc never put out a press release on the transaction. The purchase price is the highest recorded price in history, followed by Porn.com (9,500,000) Business.com (7,500,000) and Diamond.com (7,500,000.).{{Citation needed|date=May 2008}}
*]


==References== == References ==
{{Reflist|2}}
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*
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*


]
{{DEFAULTSORT:Fund.Com}}
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Latest revision as of 04:18, 30 August 2024

Fund.com Inc.
Fund.com Logo
Traded asOTC Pink No Information: FNDM
Founded2007 (2007)
HeadquartersNew York City, US
Key peopleJason Galanis

Fund.com Inc. is a US-based financial services information publishing company and fund platform that focuses on the fund management industry. Its aims were to provide a destination website for investments, including mutual funds, hedge funds, money market funds, exchange-traded funds (ETFs), closed-end funds, index funds, commodity funds and other types of pooled investment vehicles.

The company saw a significant decline in its share price after a soured business deal in late 2009 after which it has only traded in the “pink sheets”. Some of its senior executives were connected to Westmoore Capital from which Fund.com raised $1.5 million in 2008. Westmoore Capital was closed down by the SEC for running a $53 million Ponzi scheme.

History

The company was formed through a reverse takeover in January 2008 of Eastern Services Group, a state and local tax advisor for Nevada casinos. After the merger the name was changed to Fund.com

Domain name purchase

In March 2008, Clek Media announced that it had brokered the sale of the domain name “Fund.com” for nearly $10 million in an all-cash transaction, to the company Fund.com Inc. Although never confirmed by the company itself, the purchase price would have been the highest recorded price paid for a web site domain up to that point, followed by Porn.com ($9.5 million) Business.com ($7.5 million) and Diamond.com ($7.5 million). However, some industry insiders have questioned the validity of the amount reported.

AdvisorShares acquisition

In 2008 the company purchased a 60% stake in AdvisorShares for an initial payment of $275,000, on October 31, 2008. Fund.com agreed to pay Noah Hamman, who founded AdvisorShares, a base salary of $240,000 and a minimum guaranteed bonus of $100,000 per year after the acquisition. Just a week later on November 7, 2008 Noah Hamman's former company, Arrow Funds, commenced arbitration proceedings against Hamman and AdvisorShares for usurping Arrow's intellectual property including its business plan in establishing AdvisorShares. However, Arrow's lawyers mentioned that an unsuccessful mediation had taken place prior to initiating the arbitration proceedings. In January 2009, Arrow Funds requested a hearing with the SEC to challenge AdvisorShares' application for exemptive relief filed the previous month. Arrow and their counsel claimed that Hamman "To enable the Application to proceed, deliberately thwarted and delayed the selection of the Arbitration tribunal members." This request to block the application for exemptive relief was denied on July 20, 2009. "On March 1, 2010, Mr. Hamman, Arrow and the Members agreed to settle the Arbitration"

Vensure Employer Services attempted acquisition

On November 4, 2009, Fund.com announced its purchase of an equity interest in Mesa, AZ.-based Vensure Employer Services, Inc., a professional employer organization that provides benefits and payroll administration, health and workers' compensation insurance programs, employee training and development services, and retirement benefits plans, such as 401k's, for small and medium businesses. The equity is represented by $21.9 million of participating preferred stock of Vensure.

Fund.com was unable to meet the contractual obligations of the purchase and the transaction was subsequently reversed.

Whyte Lyon Socratic acquisition

In November 2009, the company also announced that it had purchased 100% of the capital stock of Whyte Lyon Socratic, Inc., a developer of online education programs for investors, debtors and professionals. As part of that transaction, Whyte Lyon's president Joseph J. Bianco was named chairman of the board of Fund.com.

Whyte Lyon Socratic specialized in long-distance learning and assisting online students in developing the necessary skills to understand financial transactions and financial markets; develop money management skills to help them manage their income and wealth; and reach particular goals, including homeownership, debt reconciliation, and improved credit scores.

Decline

In September 2011 an unusually large 1 for 120 reverse split of Fund.com shares failed to stop the share price slide. Fund.com lost 99% of its value that year giving a market value of around $8.4 million

Recovery

In late 2016, Thomas Braziel was assigned as a receiver to Fund.com and investigated how he could monetize the remaining assets of the company on behalf of shareholders. Among other things, he is trying to recover the fund.com URL that the previous management sold in an allegedly fraudulent transaction involving John Galanis. In addition, fund.com and AdvisorShares settled a lawsuit over an ownership dispute. While AdvisorShare has already paid fund.com $2 million, Braziel is trying to recover an additional $2.2 million owed by AdvisorShares and unseal the terms of the confidential settlement made with the previous owners of fund.com. In July 2018 Braziel successfully recovered the fund.com domain name for the receivership and is pursuing further action against previous insiders and recovery of other assets. In July 2024 Braziel was stripped of his position as receiver.

See also

References

  1. ^ "The Past May Be A Prologue For Fund.com And Weston Capital". Business Insider Australia. April 20, 2011.
  2. "Fund.com Inc. (FNDM) -Other OTC". Yahoo Finance. June 6, 2014.
  3. 'Clek Media Inc. Brokers World-Record $10 Million Domain Sale'
  4. "Fund.com Sells for a Record $10 Million". DomainNameNews. December 3, 2008.
  5. "AdvisorShares Investments, LLC Purchase and Contribution Agreement".
  6. "Employment Agreement". Law Insider.
  7. "Request for Hearing on Application of AdvisorSharesInvestments, LLC and AdvisorSharesTrust, Investment Company Act Release No. 28568; 812-13488" (PDF).
  8. "INVESTMENT COMPANY ACT OF 1940 [Release No. 28822". Archived from the original on 2013-12-15. Retrieved 2014-01-18.
  9. "FORM 8-K Fund.com".
  10. "Termination of a Material Definitive Agreement, Notice of Delisting or Failure to S". August 24, 2010.
  11. 'Fund.com Acquires an Equity Interest in Vensure Employer Services and Whyte Lyon Socratic, Names Joseph J. Bianco as Chairman of the Board'
  12. Svenda, Jan. "Fund.com - Peculiar Legal Opportunity With Activist Catalyst". Seeking Alpha. Retrieved 20 August 2017.
  13. "Fund.com Inc". Fund.com Inc. Retrieved 2018-07-25.
  14. "MEMORANDUM OPINION ADDRESSING EXCEPTIONS TO SPECIAL MAGISTRATE'S REPORT AND RECOMMENDATION". July 18, 2024.
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