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ICANN whistleblower expects to be fired after alleging budget irregularities, bugged meetings

Kevin Murphy, May 6, 2020, Domain Policy

The chair of ICANN’s highly influential Nominating Committee expects to lose his seat after turning whistleblower to expose what he says are budgetary irregularities and process failures that could have altered the outcome of ICANN’s board-selection process.

In a remarkable March 25 letter, Jay Sudowski even accuses ICANN of secretly recording and transcribing NomCom’s confidential deliberations.

The NomCom is the secretive committee responsible for selecting people to fill major policy-making roles at ICANN, including eight members of its board of directors. It’s made up of people drawn from all areas of the community.

Because its role is essentially to conduct job interviews with board hopefuls, it’s one of the few areas of the ICANN community whose conversations are almost entirely held in private.

But Sudowski is attempting to shine a little light on what’s going on behind the scenes by filing a broad and deep request under the Documentary Information Disclosure Policy, which is ICANN’s equivalent of a freedom of information law.

In it, he accuses ICANN Org of some fairly serious stuff.

First, he claims ICANN is fudging its budget by over-reporting how many full-time equivalent (FTE) staff members are involved in NomCom work, and by denying requests for “trivial” reimbursements of as little as $47 even as NomCom cuts costs by moving to a remote-only working model.

ICANN grants NomCom a FY20 budget of $900,000, of which $600,000 is allocated to “personnel costs” related to three FTEs.

“Nowhere near 3 FTEs are allocated to NomCom. Where is this money going?” Sudowski asks, demanding under the DIDP to see records of how much ICANN actually spent supporting NomCom’s work over the last five years.

He also claims that the NomCom process may have been compromised by allowing non-voting members to participate in decision-making meetings during the 2017 cycle, writing:

ICANN Org potentially allowed the NomCom to violate ICANN Bylaws by allowing nonvoting members of the NomCom to participate in outcome determinate components of the assessment and selection process that may have fundamentally alerted [I believe this is a typo for “altered”] the outcome of the 2017 NomCom process.

The non-voting members of the NomCom are the board-appointed chair and chair-elect, as well as appointees from the Root Server System Advisory Committee, Security and Stability Advisory Committee and Governmental Advisory Committee.

The board members appointed by NomCom in 2017 were Avri Doria and Sarah Deutsch. NomCom also picked members of the GNSO Council, ccNSO Council and At-Large Advisory Committee.

Sudowski, whose day job is running a data center company in Colorado, further claims that the ICANN board has been instructed by the Org to refuse to communicate with NomCom members.

“In recent years, ICANN Org has secretly recorded and transcribed confidential deliberations of the NomCom,” he adds.

He wants evidence of all of this to be released under the DIDP, under a nine-point list of documentation requests.

It’s unfortunate that I am forced to make this request in such a public manner, but when there is controversy over a $47 expense to support a NomCom member, I can only come to the conclusion that ICANN Org is unable and unwilling to provide necessary “administrative and operational support” for the NomCom.

He also expects retribution:

I also expect that the Board, which has been instructed to not communicate with me, will remove me from my role as Chair of the NomCom, given the nature of the concerns noted in this letter. Frankly, if this comes to pass, my removal is a clear and direct attack on the autonomy and authority of the entire NomCom.

So far, his request has not been answered.

Under the DIDP, ICANN has a maximum of 30 days to reply to such requests. In reality, this has always been treated as a minimum, with both request and response typically published on the same day, exactly 30 days after the original filing.

Its responses are typically links to information already in the public record and a list of excuses why no more info will be released.

But so far, neither request nor response has been published in the usual place, 42 days after Sudowski sent his letter. ICANN has missed its deadline by almost two weeks.

The only reason the DIDP (pdf) is in the public domain at all is that Sudowski copied it to the mailing list of the Empowered Community, ICANN’s community-based oversight body. Thanks to George Kirikos for posting the link to Twitter last week.

It is a pretty extensive request for information, that presumably would take some time to collate, so I’d be hesitant to cry “cover-up” just yet.

But the fact that the request exists at all serves to highlight the shocking lack of trust between ICANN and one of its most powerful committees.

UPDATE: Sudowski has said that his request was withdrawn. There’s no particular reason it could not be refiled by somebody else, however, as DIDP is open to all.

Verizon subpoenas DirectNIC whistleblower

Kevin Murphy, January 21, 2011, Domain Registrars

Verizon has subpoenaed a former DirectNIC employee as part of its ongoing cybersquatting lawsuit against the domain name registrar.

Mark Deshong filed a “whistleblower” suit against his former employer – Keypath LLC, which he said shares ownership with DirectNIC – last August, but it was quickly settled out of court.

He alleged Keypath was engaged in a fraudulent domain arbitrage scheme using Yahoo Search Marketing and credit cards applied for in the name of bogus companies.

Keypath’s lawyers (who denied the links to DirectNIC) in turn accused Deshong of trying to extort the company for a larger severance package. The case was settled in October.

Now, in a Florida court filing (pdf), Verizon said it has subpoenaed Deshong for information related to its own case, which is currently tied up in pretrial discovery arguments.

He was scheduled to provide a deposition on Tuesday.

Verizon claims DirectNIC engaged in cybersquatting via shell companies such as Kenyatech/Kentech and Belize Domain WHOIS Service.

While there’s circumstantial evidence connecting the companies, CEO Sigmund Solares signed a sworn affidavit in a previous case denying Kenyatech and DirectNIC were affiliated.

Verizon’s interest in Deshong appears to be limited to information about DirectNIC’s ownership structure and its affiliations, rather than his allegations about domain arbitrage practices.