You are here: Home / Archives for NFS Leasing

NFS wins $8 M judgement against SignalShare, and $5.7 M judgement against former SignalShare exec

November 16, 2017 by Leave a Comment

Screen shot of nGage Fan Feed. Credit: SignalShare

UPDATE: Information added to original draft, since MSR now has copies of the actual court documents.

The drama surrounding the fraud charges leveled early last year against former Wi-Fi provider firm SignalShare seems to be reaching a conclusion, with court documents showing that NFS Leasing has been awarded $8 million in damages from SignalShare, and $5.7 million in damages from an ex-SignalShare exec.

To quickly recall the case, SignalShare, a company involved in bringing Wi-Fi networks and associated fan-experience apps to stadiums, was sued by NFS, an equipment leasing company, over a dispute involving allegedly fraudulent leases by SignalShare, and SignalShare’s default on an agreement to pay back money obtained through those leases. Originally NFS sought $7.8 million in damages.

According court documents that are also quoted in a Law 360 report, a judge in Massachussetts federal court granted summary judgement in NFS’ favor Wednesday, with an $8 million judgement against Signal Point Holdings Corp., a SignalShare subsidiary, and a $5.7 million judgement against former SignalShare exec Christopher Barnes. According to court documents, the judge also voided an attempt by SignalShare to move assets between other companies owned by the same owners as SignalShare.

To recap the original story — SignalShare had originally partnered with Wi-Fi gear vendor Extreme Networks on deployments for the Jacksonville Jaguars, the University of Maryland and the Detroit Red Wings, all apparently legitimate deals. SignalShare later touted its Live-Fi nGage suite, a system that was meant to combine content, analytics and advertising links to give venue owners and operators a turnkey method to improve fan engagement and perhaps increase revenue opportunities for large-venue Wi-Fi networks.

According to a previous Law360 story, the lawsuit from NFS Leasing claimed that SignalShare “began requesting financing from NFS for purchasing equipment for fictitious contracts,” using forged, altered and falsified documents for deals that didn’t exist. From that Law360 report, which quotes from the legal complaint:

“[SignalShare] would represent to NFS that it had entered into an agreement with a sports arena or team and would induce NFS to provide funding for the acquisition of the allegedly-needed equipment,” the complaint said.

SignalShare would provide fake or forged invoices for the equipment it allegedly ordered, or provide fictitious serial numbers for items allegedly purchased and installed in the fraudulent contracts, the complaint said.

Between May 20, 2014 and May 21, 2015, SignalShare conned NFS into advancing funds on 10 fraudulent lease transactions to the tune of $4.9 million, the complaint said.

Costanzo charged, then cleared

The case had several twists and turns along the way, including the charging and then exoneration of former SignalShare chief technical officer Joe Costanzo, who was one of the SignalShare execs personally named in the first lawsuit. Costanzo, who ran the technical operations of SignalShare, claimed he was misled by his own company and had filed counter-claims against NFS.

This past August court documents said that NFS Leasing had dismissed all of its claims against Costanzo “without costs to either party.” Costanzo, who had filed a counter-claim against NFS, also dismissed his action.

In the summer of 2016, NFS had announced an auction of SignalShare assets, including such entities as the network lease for providing Wi-Fi to the Golden State Warriors. However, that planned auction was cancelled when SignalShare filed for bankruptcy. Along the way, executives from Extreme Networks have continually refused to comment on any details of their partnership with SignalShare.

Filed Under: Apps, Extreme Networks, Golden State Warriors, NBA, Wi-Fi Tagged With: , , , , , , , , , , , ,

Costanzo cleared in SignalShare lawsuit

August 9, 2017 by Leave a Comment

Joe Costanzo, the former chief technology officer for SignalShare, has been cleared of any legal entanglements in that company’s ongoing lawsuit issues according to a new filing in the case.

Last year, NFS Leasing sued SignalShare for $7.8 million over alleged fradulent leases, a case now tied up in SignalShare’s subsequent bankruptcy proceedings. Costanzo, who primarily ran the technical operations of the stadium Wi-Fi leasing operator, was personally named by NFS in the lawsuit along with other SignalShare executives; Costanzo, however, claimed he was misled by his own company and had filed counter-claims against NFS.

A new document from the United States District Court in the District of Massachusetts said that NFS Leasing has dismissed all of its claims against Costanzo “without costs to either party.” Costanzo, who had filed a counter-claim against NFS, also dismissed his action.

Costanzo also apparently reached an agreement with the former SignalShare, according to a legal document filed by a company called M2 nGage, which was formed out of the remnants of SignalShare. According to the document, “Any disputes between Costanzo, the SPHC Parties and SignalShare were settled pursuant to a settlement agreement executed between the parties. Pursuant to the terms of the Settlement Agreement, the parties mutually released each other from any claims and SPHC agreed to pay Joseph Costanzo $92,000 over a period of a year associated with amounts due.”

NFS Leasing did not respond to an email inquiry for more information.

Filed Under: Extreme Networks, Wi-Fi Tagged With: , , , , , ,

Jaguars get out of SignalShare deal, turn to PCM for EverBank Field Wi-Fi management

September 28, 2016 by Leave a Comment

Pregame activity at EverBank Field last weekend. Credit: Jaguars.com.

Pregame activity at EverBank Field last weekend. Credit: Jaguars.com.

When Wi-Fi design and implementation firm SignalShare legally imploded earlier this year, one of the biggest questions that surfaced was — what would happen to teams and stadiums who had contracted with SignalShare to run their Wi-Fi networks? The Jacksonville Jaguars, who a couple years ago announced big plans with SignalShare, have gotten out of their contract with the now-bankrupt SignalShare and have turned to integrator PCM to manage the Wi-Fi network at EverBank Field, team officials said.

Mike Webb, director of IT with the Jaguars, said in a phone interview that the team was “able to terminate” its 3-year deal with SignalShare with help from Wi-Fi gear provider Extreme, which was part of the original deal. PCM has also teamed up with Extreme to run the Wi-Fi network at the Tennessee Titans’ Nissan Stadium. Neither SignalShare nor NFS Leasing has responded to any queries about the legal actions; Extreme Networks has also refused to comment on any specifics of any SignalShare-related deals.

While the original deal called for big plans to bring exclusive content to fans at EverBank Field via SignalShare’s portal software, Webb said that currently there is no stadium-specific or game-day app for Jaguars fans. He also said that Comcast sponsors the Wi-Fi connection (as it does at many other stadiums), with fans logging on by connecting to the xfintitywifi SSID.

Adding more APs for patios, new construction

Currently, EverBank Field has 650 Extreme Wi-Fi APs in the venue, with approximately 450 of those in the seating bowl, Webb said. Over the past offseason, the stadium added Wi-Fi coverage to five new areas, mainly patios outside club areas as well as to the South end zone tunnel, which will eventually connect to the theater that is being built outside the stadium.

For the lower level of seating, Webb said Wi-Fi APs are installed in railing enclosures, while higher-level seats are served by overhead mounts. While Webb said the network initially “had some issues” with 2.4 GHz band activity, the addition of more 5 GHz capacity helped to “vastly increase performance.” The Wi-Fi network now regularly sees 14,000 connections per game, Webb said.

More cellular capacity is also on the way to EverBank Field, as Webb said that two (unnamed) wireless carriers have agreed on a plan to build a DAS in the facility for outside seating coverage.

Filed Under: Apps, DAS, Extreme Networks, NFL, Wi-Fi, Xfinity Tagged With: , , , , , , , , , , , ,

SignalShare assets auction postponed as SignalShare files for bankruptcy

July 7, 2016 by Leave a Comment

The planned auction of assets and contracts of Wi-Fi provider SignalShare is now on hold, due to a bankruptcy filing by SignalShare in New Jersey, according to auctioneers hired by NFS Leasing, a company that is suing SignalShare for $7.8 million over alleged fraudulent activities.

In an email Thursday, the auction company said NFS was postponing the planned July 14 auction, which sought to find buyers for SignalShare assets, including software source code and Wi-Fi installment contracts for arenas including the Golden State Warriors’ Oracle Arena. Legal representatives for NFS did not comment, and no case information is yet available from the U.S. Bankruptcy Court, District of New Jersey. We will continue to update this post as more information is obtained.

Filed Under: Wi-Fi Tagged With: , , , ,

Golden State Warriors’ Wi-Fi network lease part of planned SignalShare assets auction

June 29, 2016 by Leave a Comment

Screen shot of nGage Fan Feed. Credit: SignalShare

Screen shot of nGage Fan Feed. Credit: SignalShare

The contract covering the operation of the Wi-Fi network at the Golden State Warriors’ Oracle Arena is up for auction, as part of the fallout from a lawsuit involving alleged fraudulent business practices by Wi-Fi deployment concern SignalShare.

UPDATE, 7/7/16: According to the auctioneers, the auction is currently postponed, due to their claims of a bankruptcy filing by SignalShare. More details as we learn more.

SignalShare, which has installed and operated Wi-Fi networks in a number of large sports venues, including arenas used by the Detroit Red Wings, the Houston Rockets, the Sacramento Kings, the University of Maryland and others, is being sued for $7.8 million by NFS Leasing, an equipment leasing company, over a dispute involving allegedly fraudulent leases by SignalShare and SignalShare’s default on an agreement to pay back money obtained through those leases. As part of the ongoing legal proceedings, NFS has apparently scheduled an auction of SignalShare assets it claims, including leases, software code and hardware, for July 14 through Paul E. Saperstein Co., Inc.

So far, Mobile Sports Report has not been able to get any comments on the lawsuit or the auction from SignalShare, NFS, or any of the venues where SignalShare had installed networks. According to the auction site, NFS will make available for auction the contracts between SignalShare and the following list of teams and venues: The Golden State Warriors and Oracle Arena; the Carolina Hurricanes and PNC Arena; the Houston Rockets and Toyota Center Arena; the Detroit Red Wings and Joe Louis Arena; the Jacksonville Jaguars and Everbank Field; the Milwaukee Bucks and Brady Harris Arena; and the Las Vegas Sands Convention Center.

According to sources familiar with some of the SignalShare deals, some of the networks were run under a lease agreement, where the team or venue owners paid SignalShare a monthly fee for operation of the Wi-Fi network, with SignalShare retaining ownership of the actual equipment. According to legal documents filed in the case, NFS provided the financing for many of the existing SignalShare deals, as well as millions more in financing for deals NFS claims never actually existed. So far, there has been no public accounting for where the millions provided by NFS for the allegedly fraudulent leases ended up.

Live-Fi code also up for auction

While the leases are potentially interesting to many possible parties — firms who could take over the network operations, or who might be interested in purchasing the leased equipment — the asset with perhaps the most tangible worth is SignalShare’s “Live-Fi” software, a kind of customer portal program meant to help teams and venues engage more closely with fans and to also facilitate advertising sales. According to legal documents filed in the case, SignalShare owners apparently attempted to transfer the ownership of the Live-Fi code to a subsidiary firm to apparently keep it out of any claim proceedings, a move that was recently blocked when the courts granted an injunction requested by NFS.

Aside from whatever happens in the ongoing legal case and at the auction, for the venues involved the bigger question is more likely what happens to their existing or planned networks. In several of the mentioned deals, including the Jaguars, the University of Maryland and the Detroit Red Wings, SignalShare publicly partnered with Wi-Fi gear provider Extreme Networks; Extreme representatives declined to comment on any specifics of the SignalShare lawsuit.

One common trait shared by several of the SignalShare deals was that they involved Wi-Fi networks at arenas that were scheduled to be replaced or abandoned by the teams in the near future — the Warriors, Kings and Red Wings are all already building or planning to build new stadiums. The SignalShare “leasing” model may have seemed more attractive than spending the potentially millions in upfront costs for a network that may only have been used for a few years. The only thing for sure now is that the future of Wi-Fi at the venues mentioned seems to be on hold until the legal questions around SignalShare’s operations are answered.

Filed Under: Basketball, Extreme Networks, NBA, NFL, Wi-Fi Tagged With: , , , , , , , , , , ,

SignalShare sued for $7.8 million over alleged fraudulent leases

May 17, 2016 by Leave a Comment

Screen shot of nGage Fan Feed. Credit: SignalShare

Screen shot of nGage Fan Feed. Credit: SignalShare

SignalShare, a company involved in bringing Wi-Fi networks and associated fan-experience apps to stadiums, is being sued by an equipment leasing company over a dispute involving allegedly fraudulent leases by SignalShare, and SignalShare’s default on an agreement to pay back money obtained through those leases. A report on the Law360 website said the case filed in Massachusetts federal court by NFS Leasing of Beverly, Mass., on Jan. 28, 2016, seeks $7.8 million from SignalShare.

SignalShare, which has partnered with Wi-Fi gear vendor Extreme Networks on deployments for the Jacksonville Jaguars, the University of Maryland and the Detroit Red Wings, has most recently touted its Live-Fi nGage suite, a system that combines content, analytics and advertising links to give venue owners and operators a turnkey method to improve fan engagement and perhaps increase revenue opportunities for large-venue Wi-Fi networks.

According to the Law360 story, the lawsuit from NFS Leasing claims that SignalShare “began requesting financing from NFS for purchasing equipment for fictitious contracts,” using forged, altered and falsified documents for deals that didn’t exist. From the Law360 report, which quotes from the legal complaint:

“[SignalShare] would represent to NFS that it had entered into an agreement with a sports arena or team and would induce NFS to provide funding for the acquisition of the allegedly-needed equipment,” the complaint said.

SignalShare would provide fake or forged invoices for the equipment it allegedly ordered, or provide fictitious serial numbers for items allegedly purchased and installed in the fraudulent contracts, the complaint said.

Between May 20, 2014 and May 21, 2015, SignalShare conned NFS into advancing funds on 10 fraudulent lease transactions to the tune of $4.9 million, the complaint said.

The Law360 story also said that NFS Leasing and SignalShare agreed to a short-term repayment of the debts incurred, but that SignalShare defaulted on the payments. With interest and attorney fees, NFS is claiming SignalShare owes $7.8 million.

So far, neither NFS nor SignalShare has replied to a request for more information.

UPDATE, 5/18/16: Since the original post we have obtained more court documents related to the case, which indicate that former SignalShare CTO Joe Costanzo has left the company and is counter-suing SignalShare over its actions regarding this issue. More to come later today.

Filed Under: Apps, Extreme Networks, Wi-Fi Tagged With: , , , , , , , , , ,