Two Neteller founders arrested today

Aces · 01-15-07, 09:06 PM

Not Good Not Good at all.

bigboydan · 01-15-07, 09:06 PM

This isn't good at all.

Ortho · 01-15-07, 09:10 PM

There is currently some question as to the veracity of this report. I certainly cannot say that the report is false, but "unconfirmed" is a reasonable word to use at this point...

TLD · 01-15-07, 09:12 PM

Wonderful.

These people are bound and determined that I not be able to make a living.

bigboydan · 01-15-07, 09:32 PM

Now this is the real scary part.

Neither men have been involved with NETeller for a few years now, though it is not known if they are still receiving an "income" from the company.

There picking up people and not even knowing if there still receiving money.

Aces · 01-15-07, 09:36 PM

Accepting Funds for Betting Banned

Section 5363 contains the basic prohibition of the new law. It bans online gambling operators from accepting most forms of funds to be used by the players to gamble on their Websites. The ban applies to:

"(1) credit, or the proceeds of credit, extended to or on behalf of such other person (including credit extended through the use of a credit card);
"(2) an electronic fund transfer, or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of such other person;
"(3) any check, draft, or similar instrument which is drawn by or on behalf of such other person and is drawn on or payable at or through any financial institution; or
"(4) the proceeds of any other form of financial transaction, as the Secretary [of the Treasury] and the Board of Governors of the Federal Reserve System may jointly prescribe by regulation, which involves a financial institution as a payor or financial intermediary on be half of or for the benefit of such other person."

Funds accepted under paragraphs (2), (3) and (4) must be paid by or drawn on a "financial institution." That term is defined by reference to Section 1693a of the Electronic Fund Transfer Act, and "means a State or National bank, a State or Federal savings and loan association, a mutual savings bank, a State or Federal credit union, or any other person who, directly or indirectly, holds an account belonging to a consumer." (Emphasis supplied.)

Some commentators have expressed the view that operators can avoid the application of the ban by accepting funds only through online financial intermediary e-wallets like NETeller and *******. The commentators reason that those intermediaries are located offshore, are not "financial institutions" and are not subject to direct regulation by the Federal Reserve Board ("Fed") or other U.S. governmental agencies.

Aces · 01-15-07, 09:41 PM

Its to long to put it all in this thread heres a link that explains how they are doing this

http://www.gambling-law-us.com/Federal-Laws/internet-gambling-ban.htm

On October 19, 2006, NETeller issued a further press release conceding that it will comply with the Act. It said:

NETELLER, a company registered outside the US, will comply with the Act and its related regulations as if it were subject to the Act's jurisdiction. This action is intended to ensure that the Company is able to continue to operate with the support of its principal commercial partners and to protect its shareholders, business partners, employees and reputation.

bigboydan · 01-15-07, 09:44 PM

Kinda throws the "grace period" out the window now on this stuff.

Newguyintown · 01-15-07, 09:50 PM

What could this mean guys? Could the Neteller funds be in jeopardy? Should the exodus from Neteller to the bank begin? This isn't putzing around with 1 or 2K at some D book, this is EVERYTHING!!!!!

Panic! Panic!!!!

NG

knicknut · 01-15-07, 10:02 PM

guess we're going to need a fortuNETELLER to figure this one out

/rimshot

Sorry, I use humor to cope with tragedy.

Aces · 01-15-07, 10:02 PM

Read the article. I wouldn't keep large sums of money anywhere just keep what you need. I use the Neteller Debit Card and pull funds out regularly. I feel better when my money is in my bank. I do keep funds in Neteller but only what I need.

JDK192 · 01-15-07, 10:11 PM

Where is this article from? I can't find it online anywhere.

moses millsap · 01-15-07, 10:19 PM

Time to get out. The fun's over.

Doc JS · 01-15-07, 10:24 PM

Two Neteller founders arrested today

scary stuff man.... :-(

LVHerbie · 01-15-07, 10:30 PM

Originally posted by JDK192

Where is this article from? I can't find it online anywhere.

hxxp://www.gambling911.com/NETeller-...ed-011507.html

Aces · 01-15-07, 10:31 PM

Originally posted by JDK192

Where is this article from? I can't find it online anywhere.

Same here I cant find it. I checked the LA times.

Aces · 01-15-07, 10:32 PM

Thanks LVHerbie

BuddyBear · 01-15-07, 10:47 PM

The end is near fellows....there has not been any positive news for the player in some years now. Every new news story that comes out dealing with online gambling is one more nail in the coffin to the inevitable end of online gambling as we know it.

The U.S. gvmt is loaded with religious lunatics....it's only going to get worse....savor these last few months but i know it is painful for most of us on here. Hopefully we can still get our bets in for March Madness

Dark Horse · 01-15-07, 10:51 PM

Can someone from SBR confirm this story?

Google search shows nothing.

Never mind. Got it.

We are living in a fascist country. Get rid of these leaders before they take all our freedoms away.

punchmaster · 01-15-07, 11:17 PM

"Neither men have been involved with NETeller for a few years now, though it is not known if they are still receiving an "income" from the company."

tblues2005 · 01-15-07, 11:30 PM

your right punchmaster on that comment, you just don't know if they are still involved with the company, I think they were plain stupid to go through the United States anyways with what happened with Bet On Sports.

I think what is going to happen is the United States is going to try to get it down to just a few books online then they will get a bill passed by the Democrats to regulate them, then they will charge a certain amount of money to operate within the U.S. and then there will be just a few that will be able to do this, like the big ones like BetJamaica,TheGreek,BoDog,5Dimes, and a few others that will sign on. I am totally suprised that they really haven't gone after BetUs instead of Pinnacle. BetUs is the ones that is stiffing people and I never seen Pinnacle ever do that, that just surprises me since they went after Bet On Sports and they rightfully did. I wish they would do the same with BetUs someday.

imgv94 · 01-15-07, 11:45 PM

Tons of overreacting in this thread.. This means nothing..

Scooter · 01-15-07, 11:51 PM

Originally posted by Dark Horse

Can someone from SBR confirm this story?

Google search shows nothing.

Never mind. Got it.

We are living in a fascist country. Get rid of these leaders before they take all our freedoms away.

Dark Horse - i would've thought it's obvious that most people reading this thread would like to see some corroboration - a link, a source, a quote.

"Google search shows nothing.

Never mind. Got it."

Great. How about sharing what you found with the rest of us. I know I'm not the only one who would appreciate it.

Same goes for tacomax, sbr, etc.

Two guys arrested at opposite ends of the USA today. No mention in Google, no links, no source. But the word is out.????????

Can someone provide something solid to verify this story?

Apparently it began at Gambling 911, with no verification of any sort.

Hoja Verdes · 01-15-07, 11:51 PM

LeFevre, a former hippie, started the hugely successful company with Steve Lawrence in 1999 but retired in 2002 in Costa Rica.

WTF? A former hippie? What does that even mean, and what kind of journalist puts that in an article?

This 'article' smells like sh1t, obviously a hoax.

Scooter · 01-15-07, 11:59 PM

Originally posted by Hoja Verdes

WTF? A former hippie? What does that even mean, and what kind of journalist puts that in an article?

This 'article' smells like sh1t, obviously a hoax.

The amazing thing, true or not, is that Gambling 911 "reported" this with no attribution of any kind, and it's all over the gambling forums now.

Unfortunately, that seems to be the only place it exists, as Google searches reveal nothing.

Two guys arrested at opposite ends of the US. The same day, Gambling 911 has the story. No one else.
????

tacomax · 01-16-07, 12:04 AM

Originally posted by Scooter

Same goes for tacomax, sbr, etc.

I'm really, really sorry. I'll try harder next time. Can I compensate you for any inconvenience?

tacomax · 01-16-07, 12:05 AM

More information was beginning to surface during the late night hours regarding the arrests of two NETeller founders. The company is the biggest third party money processing company catering to the online gambling industry.

John LeFevre was reportedly taken into custody at his Malibu home during the early morning hours of Monday January 15 according to sources close to xxx.com.

"Both (founders of NETeller) have houses in the USA," the source disclosed. "That is why they were in the US...they spend a great deal of time there."

While a bill to curb some forms of online gambling went into effect this past October, these arrests indicate a more prolonged investigation.

LeFevre, a one time acid loving hippie, started the hugely successful company with Steve Lawrence in 1999 but retired in 2002 in Costa Rica. LeFevre loved recounting his days as a flower child and rebel, who did have brushes with the law during his most rebellious years in the 1960's.

LeFevre, now in his 50's, shaved his heavy disheveled bush of hair a few years ago. The frolicking fun man eventually settled down and got married. He was once a favorite personality heavily profiled by the xxx.com website, but in recent years LeFevre has maintained a relatively low profile.

Unless government officials are torturing or starving him, he is probably the last person in the world who will back down, though it should be pointed out that our initial sources have stated that LeFevre is yet to be charged with any offense.

Steve Lawrence served as Chairman of Neteller until October 13, 2005.

"He (Lawrence) resigned and both men have substantial holdings of stock as well," another source disclosed to Gambling911.com Monday evening.

NETeller is a publicly traded company on the London Stock Exchange. Most of the company's current executives reside in and around the Isle of Man, a crown dependency of Great Britain, right off its coast, which serves as a primary online gambling jurisdiction. The Isle of Man is also home to PokerStars.

NETeller executives were expected to issue a statement regarding the arrests some time after midnight Eastern Time.

Likewise, online gamblers who have become dependent on NETeller, fear for the worst. NETeller was one of the few publicly traded internet gambling related firms to continue doing business with US citizens.

Details of the arrest were not known at press time late Monday evening.

Individual US states have frowned upon NETeller and other similar third party money transaction companies in the past. Maryland, for example, requires that banks be physically based in the state in order to conduct business with its citizens. NETeller voluntarily stopped accepting customers from that state a few years ago.

In 2002, New York State's then Attorney General, Eliot Spitzer, went on a rampage against PayPal, forcing that third party money transaction firm to stop taking business from New York citizens of the purposes of online gambling. Spitzer also demanded banks in the state do the same.

Then there is Louisiana State, which seems more concerned with going after online gambling company operators than cleaning up the mess left by Hurricane Katrina.

It has issued numerous arrests warrants against online gambling executives including a former Sportingbet non-executive chairperson who was arrested during a routine check at New York's JFK airport this past summer. He was later released after New York State cited inadequate laws to have him extradited to Louisiana.

Last July, now defunct BetonSports CEO David Carruthers, was arrested and charged while changing flights in the United States on various charges including money laundering and tax evasion. He has plead "Not Guilty" and intends to fight the case. Carruthers is a British national who remains under house arrest outside St. Louis, Missouri.

Last week PinnacleSports stunned an already shell-shocked industry by announcing it would part ways with US customers effective immediately this past Thursday. The US made up an estimated 60% of its customer base.

Pinnacle claimed that the recent legal environment in the States made it difficult to process transactions, though other online gambling companies have suggested it is no more difficult than prior to the passing into law a measure that would curb some forms of internet gambling by holding banking institutions responsible.

Scooter · 01-16-07, 12:14 AM

Originally posted by tacomax

I'm really, really sorry. I'll try harder next time. Can I compensate you for any inconvenience?

Instead of the juvenile sarcasm, how about being an adult and attributing the articles you're copying.

Are you lifting everything from Gambling 911? Any other sources?

That would be helpful.

tacomax · 01-16-07, 12:25 AM

Originally posted by Scooter

Instead of the juvenile sarcasm, how about being an adult and attributing the articles you're copying.

From G911. I'm not putting direct links since SBR don't like links to lesser quality sites. I really hope that's OK with you. Let me know if I can be of any further assistance.

bigloser · 01-16-07, 12:33 AM

Originally posted by tacomax

From G911. I'm not putting direct links since SBR don't like links to lesser quality sites. I really hope that's OK with you. Let me know if I can be of any further assistance.

No need to add links. Just quote your sources. Most forums would not allow such plagiarism. Im sure SBR will have similar rules.

Dark Horse · 01-16-07, 12:43 AM

Originally posted by imgv94

Tons of overreacting in this thread.. This means nothing..

Are you kidding? If this is true, and I still have a faint hope it's not, that means you can be arrested in this country for running any type of operation that the US government -in retrospect!- decides is illegal, even though that operation is not based in the US. This time it's indirectly related to gambling, but it really could be anything next time. Jaywalking, antiwar protests (oh no, those arrests are already routine), anything the government and special interests deem fit. Where are we living? China?

Scooter, I hope you're as diligent towards the paid media (tv, newspapers, etc) as you are to posters who are trying to find out what those media won't tell you about.

JoshW · 01-16-07, 12:52 AM

Fucking sucks. Don't really know what to say. Tomorrow actual arrest records can be checked, but 911 report is detailed enough is tough to doubt him.

tacomax · 01-16-07, 12:56 AM

If it is true, then there will surely be a statement by Neteller (link is neteller.com) to the stock exchange (link is londonstockexchange.com) early tomorrow UK time.

Patrick McIrish · 01-16-07, 01:00 AM

This is certainly very disturbing. Land of the brave, home of the free!