Neteller founder forfeits 100 million

http://www.egrmagazine.com/item/1924

Neteller founder Stephen Lawrence has pleaded guilty to the illegal transfer of money to online gaming firms and has agreed forfeit US$100m as part of the agreement with the US attorney’s office for the southern district of New York.

Lawrence has also agreed to cooperate fully with the US authorities. The case of fellow defendant John Lefebvre is still pending.

The news came on Friday after Lawrence finally appeared in court in New York. In front of judge Kevin Castel, Lawrence told the court: “I became aware that the US had legislation barring certain transactions online. With this knowledge, I came to understand that providing payment services to online gambling businesses serving customers in the US was wrong.”

Lawrence faces up to five years in prison and a $250,000 fine when it comes to sentencing in October.

In a statement to the London Stock Exchange this morning, Neteller said it was “continuing to cooperate” with the investigation being undertaken by the US attorney’s office. It said it hopes the investigation to be completed by 13 July.

Extortion, pure and simple.

Tony Soprano has nothing on the DOJ.

That is Fucked up !

where is the 100 million coming from?

WVU said:

where is the 100 million coming from?

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From the money that was seized when they shut down Neteller in the USA...meaning most of the money that is owed to US customers. Probably the rest will be eaten up by attorney fees.

It would be from his diminishing personal fortune, wouldn't it? He is supposed to not have anything to do with Neteller anymore, apart from being a shareholder.

maxdemo said:

From the money that was seized when they shut down Neteller in the USA...meaning most of the money that is owed to US customers. Probably the rest will be eaten up by attorney fees.

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Max I hope you are wrong. I will be going postal if that is the case. Only 55 million was seized though

WVU said:

Max I hope you are wrong. I will be going postal if that is the case. Only 55 million was seized though

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I have no idea and this is on a MUCH larger scale than what happened to me and my company, but the DOJ seized about 9 million is assets from us and when the "victims" tried to petition to get some of their money back the DOJ basically said.....:nono5:

They held the position that the clients knew betting was illegal and therfore they could go fuck themselves and they were keeping the money to buy shit.

Why do I get the feeling we'll be jerked off again come July 13?

this is the official Neteller press release:

Press Release
Update on US Situation Regarding Former Directors


Monday, 2 July 2007 - NETELLER Plc (LSE: NLR), the independent global online payments business, today issued the following statement regarding the announcement on Friday 29 June 2007 by the United States Attorney's Office for the Southern District of New York (USAO) regarding Mr Stephen Lawrence and Mr John Lefebvre, two of the Company's former directors and founder shareholders.

According to the USAO announcement, Mr Lawrence has pleaded guilty to a charge of conspiracy in connection with his role in NETELLER's prior involvement in handling financial transactions between gambling customers in the United States and offshore internet gambling businesses. In relation to this charge, Mr Lawrence also admitted to allegations requiring him to forfeit at least US$ 100 million. The USAO further announced that the case against Mr Lefebvre is still pending.

Other than as shareholders, neither Mr Lawrence nor Mr Lefebvre has any current position with or connection to NETELLER.

NETELLER is continuing to cooperate with the investigation being conducted by the USAO, under the advice of its legal advisers and in accordance with court orders in the Isle of Man. As announced on 4 June 2007, the Company is in discussions with the USAO for the purpose of resolving the investigation and has advised the USAO that it will use its best efforts to resolve the investigation no later than 13 July 2007. The Company does not currently believe that these developments will delay its efforts to resolve the investigation by that date.

The Company's ordinary shares will continue to be suspended from trading. Further information will be announced as and when it becomes available.


About the NETELLER Group
Trusted by millions of consumers in over 160 countries to move and manage billions of dollars each year, the NETELLER Group operates the world's leading independent online payment business. The Group specializes in providing innovative and instant payment services where money transfer is difficult or risky due to identity, trust, currency exchange, or distance. Being independent has allowed the Group to support thousands of retailers and merchants in many geographies and across multiple industries.

The Group is quoted on the London Stock Exchange’s AIM market, with a ticker symbol of NLR. NETELLER (UK) Limited is authorised by the Financial Services Authority (FSA) to operate as a regulated e-money issuer. For more information about the Group visit www.netellergroup.com.

Media and Investor Contacts
NETELLER Group media and investor relations are managed by Citigate Dewe Rogerson. Contact them through the Media Relations Contact page.

shakedown

WVU said:

Max I hope you are wrong. I will be going postal if that is the case. Only 55 million was seized though

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Keep in mind that if they already have 55 mil they arnt going to give back so he can write a 100 mil check to them. And also this is just one of the 2 guys that were arrested...John David Lefebvre. Which menas he might get the same deal...so that is 200 mil total for the plea agreements...thats alot of $$

The 55 million is not Mr Lawrence's money. This fine is to him personally and not Neteller from what I am reading

WVU said:

The 55 million is not Mr Lawrence's money. This fine is to him personally and not Neteller from what I am reading

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But they already have 55 mil from Neteller...the point is that the DOJ arrested the 2 neteller founders and seized 55 mil from Neteller even though the DOJ knew that the 2 founders had nothing to do the operations of the current Neteller company If its not Mr Lawrences $$ then how were they able to seize the 55 Mil???...I really doubt that the DOJ will give the $$ back to Neteller the company....JMO

He did not plead guilty for running Neteller - even the US government realized they had no jurisdiction over neteller.

He was fined for setting up Shell banking accounts in the US which were not properly registered and used to transfer money/launder for unlawful purposes.

He has agreed to pay up to $100mm. In exchange they gave him his passport back.

I'll make him -150 to never set foot in the U.S. again. -150 to be given a fine of like $5mm above the $55 already seized and no jail. +800 to pay $100mm or get jail time.


The $55 mm seized could go to the fine as it WAS HELD in his account whether or not it belonged to neteller. Most likely Neteller is able to cover this if need be.

This is a pure and simple extortion, but the bottom line is by functioning in the US, these guys broke the law.

-Sean

I will take the +140 that he sets foot in the US again.

He will show up for his sentencing in October, no reason not to. I am sure he will not go to jail however.

sickening.

maxdemo said:

From the money that was seized when they shut down Neteller in the USA...meaning most of the money that is owed to US customers. Probably the rest will be eaten up by attorney fees.

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Now we know why they didn't allow NT to pay it's customers... I asked this a few times why did the govt have to seize the funds when the evidence was there either way, now we know why, they think the money is theirs.

WVU said:

About the NETELLER Group
Trusted by millions of consumers in over 160 countries to move and manage billions of dollars each year, the NETELLER Group operates the world's leading independent online payment business. The Group specializes in providing innovative and instant payment services where money transfer is difficult or risky due to identity, trust, currency exchange, or distance. Being independent has allowed the Group to support thousands of retailers and merchants in many geographies and across multiple industries.

The Group is quoted on the London Stock Exchange’s AIM market, with a ticker symbol of NLR. NETELLER (UK) Limited is authorised by the Financial Services Authority (FSA) to operate as a regulated e-money issuer. For more information about the Group visit www.netellergroup.com.

Media and Investor Contacts
NETELLER Group media and investor relations are managed by Citigate Dewe Rogerson. Contact them through the Media Relations Contact page.

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What's with this trailer they put at the bottom of each "fuck you" press release they make? "Trusted by millions of customers in over 160 countries..." 100% comedy. They need to drop that.

sean1 said:

He did not plead guilty for running Neteller - even the US government realized they had no jurisdiction over neteller.

He was fined for setting up Shell banking accounts in the US which were not properly registered and used to transfer money/launder for unlawful purposes.

He has agreed to pay up to $100mm. In exchange they gave him his passport back.

I'll make him -150 to never set foot in the U.S. again. -150 to be given a fine of like $5mm above the $55 already seized and no jail. +800 to pay $100mm or get jail time.


The $55 mm seized could go to the fine as it WAS HELD in his account whether or not it belonged to neteller. Most likely Neteller is able to cover this if need be.

This is a pure and simple extortion, but the bottom line is by functioning in the US, these guys broke the law.

-Sean

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I agree and never really understood why NT would have checks coming from Ga. That never made sense to me...in the end that seems to be where they really screwed up...I'm sure they have a very good reason for this from a business standpoint ,but in the end this is where they really screwed up.