Neteller Funds Article....From today

NETeller funds seized in U.S. gaming sting
Thu Feb 8, 2007 12:12 PM GMT



By Pete Harrison

LONDON (Reuters) - Payment processor NETeller said on Thursday U.S. prosecutors had seized funds, stopping U.S. customers from accessing their money, the latest move in an online gaming sting.

NETeller <NLR.L>, which quit the United States last month after authorities arrested its two founders, said it was cooperating with an investigation by the United States Attorney's Office (USAO) for the Southern District of New York.

"The amount of funds seized by the USAO or otherwise restricted by third parties does not exceed $55 million (28 million pounds)," said NETeller, which abandoned 65 percent of its business by quitting the United States.

The move is the latest in a U.S. crackdown on online gaming, which began with the arrest of BETonSPORTS' <BSS.L> Scottish Chief Executive David Carruthers in Texas last July.

An industry source earlier told Reuters, "It's not NETeller stopping customers getting to their cash. It's the FBI."

Canadian founders, Stephen Lawrence, 46, and John Lefebvre, 55, have been charged with handling billions of dollars in illegal gambling proceeds. Both face a maximum sentence of 20 years in prison.

"As a result of the restrictions placed by third parties, court-ordered seizures, and related legal concerns, the group is currently unable to make payments to U.S. customers," said NETeller.

The FBI and U.S. Attorney's Office were not immediately available. A recent article in USA Today quoted FBI Agent Neil Donovan saying funds from NETeller are being held in court as potential evidence. Some customers may get their money back, he was quoted as saying, but did not provide a timetable.

The legality of Internet gambling in the United States was ambiguous for many years, but it was effectively banned last October when U.S. President George W. Bush signed legislation outlawing gaming financial transactions.

The big UK stock market-listed companies pulled out just ahead of the ban, although some privately owned Web sites such as Bodog.com and Pokerstars continued to take wagers through payment processors.

"U.S. customers wishing to withdraw funds from their NETeller e-wallet accounts will experience ongoing delays," said the group.

"The return of funds to our U.S. customers is a top priority for NETeller," said Chief Executive Ron Martin.

NETeller requested its shares be suspended in January, just after the arrests. The two founders are scheduled to attend a New York court hearing on February 14.

A recent article in USA Today quoted FBI Agent Neil Donovan saying funds from NETeller are being held in court as potential evidence. Some customers may get their money back, he was quoted as saying, but did not provide a timetable.



WTF???

Typical US bully bullshit...they don't care about anyone, there's a high percentage of legit business people being screwed right there, that now may never see their own funds...and people wonder why the world hates the USA.

I'm so sick of the US Govt's BS, whether its the MVA, the DOJ, the court system, they all blow and could give a fuck less about their citizens....freaking hypocrites.

Journeyman said:

Typical US bully bullshit...they don't care about anyone, there's a high percentage of legit business people being screwed right there, that now may never see their own funds...and people wonder why the world hates the USA.

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This country is going into the shithole.......

The US Government blows goats.

Darryl Parsons said:

The US Government blows goats.

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.......and jackasses, raccoons, mosquitos.

So now when does the UK government get involved???

If Citibank had $55mm seized by the UK Feds, I promise you the US gov would get involved.

Let's go guys. Stop taking this shit.

Sean

Neteller makes no sense to me.

http://www.neteller-group.com/press/en/124.htm

Why the hell would a group acting legally in another country agree to cooperate with US authorities and possibly pay fines?

The authorities have already blocked their ability to do business in the US, so what is there to gain.

How about a simple: Fuck off. We are holding X$ of US citizens' money, which by the way is making interest, and we will return it when you give us a means to do so. Have a good day.

-Sean

I say this stroy is twisted, Neteller themselved aren't saying anything about funds being frozen. Their official stance on their site makes no mention of this, just difficulities with payment processors...

Anyway, something is fishy here and its got nothing to do with any FBI.

Brock

Go to neteller-group.com (Their investors site) and read the most recent press release.

Sean

sean1 said:

Neteller makes no sense to me.

Why the hell would a group acting legally in another country agree to cooperate with US authorities and possibly pay fines?

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Because, unlike some, they are honorable and ethical businessmen and a negotiated settlement is the quickest way to repay funds owing to their US clients.

I know this is a difficult concept for many US citizens to accept, given the conduct of your government.

Wouldnt saying fuck off and then sending checks drawn on a UK bank be the fastest way?

NETELLER Works to Return Funds to US Customers After US Withdrawal

NETELLER Plc (LSE: NLR), the leading global independent online money transfer
business, today issued the following update with regard to its US business and
criminal charges against two of its founders.

On 19 January 2007, at the request of the Group, the Group's legal advisers met
with representatives of the United States Attorney's Office for the Southern
District of New York ("USAO") to clarify the Group's position with respect to
the complaints brought on 16 January 2007 against two of the Group's founders,
Mr. Stephen Lawrence and Mr. John Lefebvre. Neither are current employees or
directors of NETELLER. In that meeting, the Group pledged to cooperate with the
USAO, indicated it was prepared to begin document production promptly and
discussed a potential mechanism for arranging an orderly repayment of funds to
US customers.

The discussions between the Group's legal advisers and the USAO are ongoing. The
Group is, under advice of its legal advisers, commencing production of documents
and intends to cooperate with the USAO in its investigation.

Following upon the complaints dated 16 January 2007, banks in the US began
declining to permit transactions involving the Group through accounts maintained
at one or more automated clearinghouses in the United States. Additionally, the
Group has been advised that the USAO has obtained court-ordered seizure warrants
seizing funds pertaining to the Group's transactions. To the best of the Group's
knowledge, it believes that the amount of funds seized by the USAO or otherwise
restricted by third parties does not exceed US $55 million. These funds were
largely in the process of being transferred from the Group to its US customers
or vice versa.

As a result of the restrictions placed by third parties, court-ordered seizures,
and related legal concerns, the Group is currently unable to make payments to US
customers. Nevertheless, the Group is in discussions with the USAO to manage an
orderly return of funds to US customers. As part of these discussions, it is
contemplated that the USAO will engage a forensic accounting firm, at the
Group's expense, to assist in this process and to examine the Group's financial
position. "The return of funds to our US customers is a top priority for
NETELLER" said Ron Martin, Group President and CEO. US customers wishing to
withdraw funds from their NETELLER e-wallet accounts will experience ongoing
delays while these discussions continue, and a further update will be provided
by the Group once effective repayment mechanisms are determined.

To the Group's knowledge, no criminal action or proceeding has been brought
against the Group, its current officers or directors by the USAO. Nevertheless,
there can be no assurance that the Group will not be charged in a criminal
action at some subsequent time. The Group intends to work with the USAO to seek
a negotiated resolution of any allegations relating to its US activities. Any
resolution of this matter may lead to potential sanctions against the Group
including material financial penalties, fines and forfeitures.

It is emphasized that in line with the Group's standard business practices for
all customers, funds held by the Group for US customers are held in segregated
trust accounts. The Group's own cash position remains strong and the Group
currently has sufficient working capital to fund all its customers' balances as
well as ongoing requirements of the business.

NETELLER remains committed to developing its business in line with its stated
strategic objectives including geographical and product diversification for all
markets. The Group will focus on its continuing business and the opportunities
available in the growing markets of Europe, Asia and the Americas outside of the
United States. Since the Group's withdrawal from the US market on 18 January
2007, average daily new account sign-ups of new customers from non-US markets
has been around 1,400. This compares to average daily sign ups of 3,303 for the
year to 31 December 2006. Daily fee revenue since 18 January 2007 has averaged
over US$ 200,000 per day (excluding any revenues from Netbanx, 1-Pay and
interest income). These metrics demonstrate the resilience of the Group's
ongoing business. NETELLER customers not resident in the US continue to be
minimally affected by this withdrawal from the US market.

In view of the continuing uncertainty, the Group's shares will continue to be
suspended from trading on AIM for the time being. Further announcements will be
made as appropriate.

sean1 said:

Wouldnt saying fuck off and then sending checks drawn on a UK bank be the fastest way?

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perhaps, if they were willing to write off the 55 million that the US government stole from them?

You think they are gonna get it back????

sean1 said:

Wouldnt saying fuck off and then sending checks drawn on a UK bank be the fastest way?

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But the fine could well be below the $55m the feds have currently seized. Wouldn't be worth it to just throw that money away, in addition to the threat of charges.

That is the key. The fine will have to be well less than $55m to get neteller to agree to furnish records. (The feds probably really want to look for known terrorist use...)

A fine of like $20m and ability to repay and no criminal charges would make sense.

A fine of anymore than say $30m really makes no sense for NT to cooperate. They can recoup $55m in interest very quickly and have a reasonable reason not to pay if the Feds wont let em.

Sean

You all know we live in a free countryt AS LONG AS WE DO WHAT WE ARE TOLD!!!

Does than mean maybe after the hearing we would have a chance to get some of our money if a judge would decide that.

there is not going to be a fine against NT

that money was probably taken from the US bank accounts of the two companies that the founders own.

NT didn't give the feds the money (feds already had it), NT is just not going to fight to get it back. and they will agree to give up all the info necessary to convict the founders.

and also will probably assist in helping ID the ownership of offshore books.

The board members have all made a ton of cash because of NT... they will all do whatever it takes to walk away clean so they can continue their careers with other businesses.