DeMaio misses payment deadline, gets extension
Embattled Dot1 Web owner Bob DeMaio was granted a two-week extension after missing the payment deadline he agreed to last month, according to Acting State Labor Commissioner Michael Tanchek.
DeMaio and the commission reached the agreement in an effort to head off the criminal trial that had been scheduled for Oct. 19.
When he signed the agreement, DeMaio said the amount he owed, about $400,000 including back wages, interest and penalties, would settle all the claims made by 97 former employees.
The employees filed suit after they were laid off in December 2002 and were never paid back wages.
As a result, DeMaio was charged with 67 criminal counts of failure to pay.
After attempts were made by his attorney to have the charges dismissed on the basis that state laws dictate the corporation, not DeMaio, is liabel for the debt, an agreement was reached by both parties.
DeMaio also regained control of his two companies, Dot1Web and Lowestbids.com, after the latter company was put into receivership of Tom Creal representing Chicago-based Recovery Metrics, the company contracted by the state to negotiate with DeMaio.
DeMaio claims the problem was caused by Nevada Security Bank locking up his accounts. He has filed a suit against the bank, according to Tanchek.
According to the agreement he signed last month, DeMaio was to pay the wage claims brought by the employees in the amount of $281,662.68, plus 10 percent interest, as well as $70,415.67, which represents 25 percent of assessed penalties.
The state also retained the right to re-file its criminal complaint against DeMaio, should the agreement not be honored.
DeMaio was also required to assign to the Labor Commissioner one-third interest in any recovery of claims held by DeMaio against Nevada Security Bank.
Even though DeMaio has failed to make good on paying the back wages in the past year, Tanchek said he feels this time is different.
“In the past, we never had anything in writing and this time, it’s a little more substantial, not just talk,” Tanchek said. “We are right on the borderline as far as taking action, but the bottom line is, we want these people (employees) to get paid.”
DeMaio was unavailable for comment.