I wouldnt bet against it.
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This is definitely going to get interesting over the next few months indeed coach. I'm just surprised they are arresting people before the grace period runs out though.Comment -
US Attorney in New York to Release Statement
5:45 UK time was about 40 minutes ago but nothing so far.Originally posted by <a href=http://www.point-spreads.com/news/industry/neteller-arrests-us-attorney-schedules-press-conference-20070116.html TARGET=_blank>www.point-spreads.com</a>Comment -
Nothing here yet, but might want to keep an eye out --
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Always pays to have a lawyer on the payroll.Originally posted by Jay Edgar
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Agreed, US Gov. going to great lengths to get what they want.......What do they want anyway? Does anyone get the feeling that Pinnacle was blackmailed and now it's Neteller's turn......Who is next?Originally posted by Dark HorseComment -
Originally posted by Jay Edgar
thanks for the link!Comment -
Still no wordComment -
duplicateComment -
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Neteller BREAKING NEWS UPDATE
Neteller founders Stephen Lawrence and John Lefebvre have been charged with money laundering charges by the US Attorney General in the Southern District of New York.
A statement from the office of Michael Garcia added that Lawrence and Lefebvre had been arrested in connection with the “creation and operation of an internet payment services company that facilitated the transfer of billions of dollars of illegal gambling proceeds from US citizens to the owners of various internet gambling companies located overseas.”
Lawrence was arrested yesterday in the US Virgin Islands and will be presented in federal court in St Thomas by tomorrow. Lefebvre was arrested in Malibu, California and will be presented in a Los Angeles court later today.
Lawrence and Lefebvre were arrested in the early hours of Monday morning, January 15.
Neteller suspended its share price this morning as the news broke.
In a statement released earlier today, Neteller said neither Lawrence or Lefebvre had any current position within the company. The statement added: “The group has not received any communication or correspondence from any US authority regarding this or any related matter.”
Lebebvre left Neteller in December 2005 while Lawrence left in October last year, just after the passing of the Unlawful Internet Gaming Enforcement Act.
The news of the Neteller arrests spelt more bad news for those operators that have not exited the US.
Said one legal source: “It’s a warning shot across the bows for those still taking money from the US.”
He added: “They are aiming their strategy at the finance provision. It is consistent with the Unlawful Internet Gambling Enforcement Act (UIGEA). It is a more effective strategy than going after the operators themselves, such as PokerStars. When you get the money providers, you get the portfolio of operators.”
One leading operator suggested this was particularly bad news for those poker operators that remain in the US market. “This could be terminal for the poker business in the US. The average punter won’t be willing to jump through the hoops (to get their payments through).”
egrmagazineComment -
United States Attorney
Southern District of New York
FOR IMMEDIATE RELEASE CONTACT: U.S. ATTORNEY’S OFFICE
January 16, 2007 YUSILL SCRIBNER,
REBEKAH CARMICHAEL
PUBLIC INFORMATION OFFICE
(212) 637-2600
FBI
NEIL DONOVAN, JAMES MARGOLIN
PUBLIC INFORMATION OFFICE
(212) 384-2715, 2720
U.S. CHARGES TWO FOUNDERS OF PAYMENT SERVICES COMPANY
WITH LAUNDERING BILLIONS OF DOLLARS OF
INTERNET GAMBLING PROCEEDS
MICHAEL J. GARCIA, the United States Attorney for the
Southern District of New York, and MARK J. MERSHON, the Assistant
Director-in-Charge of the New York Office of the Federal Bureau of
Investigation ("FBI"), announced today that STEPHEN ERIC LAWRENCE
and JOHN DAVID LEFEBVRE were arrested yesterday in connection with
the creation and operation of an internet payment services company
that facilitated the transfer of billions of dollars of illegal
gambling proceeds from United States citizens to the owners of
various internet gambling companies located overseas. According to
the two criminal Complaints unsealed yesterday:
Neteller PLC ("Neteller"), formerly known as Neteller,
Inc., is an internet payment services company that was founded by
LAWRENCE and LEFEBVRE in 1999. Neteller is based in the Isle of
Man and is publicly traded in the United Kingdom. Neteller began
processing internet gambling transactions in approximately July
2000. Internet payment services companies, like Neteller, allow
gambling companies to transfer money collected from United States
customers to bank accounts outside the United States. According to
Neteller’s 2005 annual report, LAWRENCE and LEFEBVRE, through
Neteller, provided payment services to more than 80% of worldwide
gaming merchants.
Since founding Neteller, LAWRENCE and LEFEBVRE have held
numerous senior management positions at the company. For instance,
LAWRENCE served as Chief Executive Officer of Neteller until
December 2002; as executive director of Neteller from 2001 to
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August 31, 2003; and as Chairman of the Board of Directors of
Neteller until May 11, 2006. LAWRENCE left the Board of Directors
on October 13, 2006. LEFEBVRE served as President of Neteller from
2000 to 2002; and was a member of the Board of Directors until
approximately December 2005.
Furthermore, LAWRENCE and LEFEBVRE have both held
significant ownership interests in Neteller. As of December 31,
2004, LAWRENCE was the largest shareholder of Neteller, owning
21.94% of the outstanding shares of Neteller PLC. As of the same
date, LEFEBVRE was the second-largest shareholder of Neteller PLC,
owning 13.44% of the outstanding shares of the company.
At the time that the defendants took Neteller public, the
company acknowledged in its offering documents that United States
law prohibited persons from promoting certain forms of gambling,
including internet gambling, and transmitting funds that are known
to have been derived from criminal activity or are intended to
promote criminal activity. The company’s directors, including
LAWRENCE and LEFEBVRE, also conceded that they were risking
prosecution by the government of the United States under existing
or future federal laws.
In 2005, Neteller processed over $7.3 billion in
financial transactions. According to reports issued by Neteller,
95% of its revenue was derived from money transfers involving
internet gambling companies. On September 11, 2006, the President
and Chief Executive Officer of Neteller described the "online
gaming market" as Neteller’s "main market," and stated that, in the
first half of 2006, Neteller processed $5.1 billion in financial
transactions. As charged in the complaint, approximately 85% of
Neteller’s revenue during that period derived from individuals in
North America, and 75% of its North American revenue was generated
in the United States. Both the operation of an internet gambling
operation and the transferring of the proceeds from these
businesses overseas are illegal under United States law.
LAWRENCE and LEFEBVRE are both charged with conspiring to
transfer funds with the intent to promote illegal gambling. If
convicted, both defendants face a maximum sentence of 20 years’
imprisonment.
LAWRENCE, 46, was arrested yesterday in the United States
Virgin Islands and will be presented in federal court in St. Thomas
by tomorrow. LEFEBVRE, 55, was arrested yesterday in Malibu,
California and will be presented in Los Angeles federal court later
today. LAWRENCE currently resides in Paradise Island, Bahamas.
Both are Canadian citizens.
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This prosecution is part of the United States Department
of Justice’s effort to combat unlawful internet gambling through,
among other things, the implementation of the federal anti-money
laundering statutes. Other recent examples of the Justice
Department’s efforts in this regard include the indictments of two
offshore internet gambling companies – Worldwide Telesports, Inc.,
(indictment unsealed on May 17, 2006 in the United States District
Court for the District of Columbia) and BetonSports, PLC, a
publicly traded holding company that owns a number of Internet
sportsbooks and casinos, and its founder, Gary Stephen Kaplan
(indictment unsealed July 17, 2006 in the United States District
Court for the Eastern District of Missouri). Additionally, in July
2003, one of Neteller’s competitors, PayPal, and its parent eBay,
entered into a civil settlement agreement with the United States
Attorney’s Office for the Eastern District of Missouri to settle
allegations it aided in illegal offshore and on-line gambling
activities. As part of the agreement, PayPal agreed to forfeit $10
million, representing proceeds derived by PayPal from the
processing of illegal gambling transactions.
Mr. GARCIA praised the investigative efforts of the FBI
and thanked the United States Custom & Border Patrol, United States
Coast Guard, and Virgin Islands Police Department for their
assistance in the investigation. Mr. GARCIA added that the
investigation is continuing.
Mr. GARCIA stated, "Internet gambling has become a
multibillion-dollar industry that derives a major portion of its
revenues from United States citizens. STEPHEN ERIC LAWRENCE and
JOHN DAVID LEFEBVRE knew when they took their company public that
its activities, as well as those of the internet gambling companies
it assisted, were illegal in the United States. Blatant violations
of U.S. law are not a mere ‘risk’ to be disclosed to prospective
investors. Criminal prosecutions related to online gambling will
be pursued even in cases where assets and defendants are positioned
outside of the United States."
FBI Assistant Director MERSHON stated: "Internet gambling
is a multibillion-dollar industry. A significant portion of that
is the illegal handling of Americans' bets with offshore gaming
companies, which amounts to a colossal criminal enterprise
masquerading as legitimate business. There is ample indication
these defendants knew the American market for their services was
illegal. The FBI is adamant about shutting off the flow of illegal
cash."
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Assistant United States Attorneys TIMOTHY J. TREANOR,
CHRISTOPHER P. CONNIFF, and CHRISTINE MEDING are in charge of the
prosecutions.
The charges contained in the Complaints are merely
accusations, and the defendants are presumed innocent unless and
until proven guilty.
07-012 ###Comment -
Unbelievable. What a sick regime.
Not in Kansas anymore Dorothy, but you may want to click those heels anyway.
Heil Bush!Comment -
bush sure is a mighty warlordComment -
I live in the good ol' Soviet States of America.
Laundering charges for stuff they did BEFORE the act?Comment -
Right. Neteller has been pursuing business with non-US clients and will probably do well even though it will be much more competitive. Neteller was spoiled with the rates they were able to charge in the US and to US-focused gambling sites. They have done very well for themselves.Originally posted by Aces
The decision to move away likely has more to do with Barclays Bank and the stance from other available banks than it does with complying. That weighs in big with any gaming related company that relies on the UK banking system, including Pinnacle.Comment -
Are Neteller employees paid well?Comment -
Very well in relation to the industry they are serving. I don't have a good idea what the cost of living is in the Isle of Man.Comment -
As I read it there is something rather odd.
They are charging them with 3 charges that will be extremely difficult to get convictions. The new law was specifically made to prosecute this type of case.
So why not go after the company with a strong case instead of two former owners with a weak case?Comment -
I really don't think they are interested in getting any conviction here. The only reason (IMO) these guys are being held is to try & force Neteller to quit the USA market which they will probably succeed in doingOriginally posted by SBR_John
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Its a shock tactic. If they make funding sources and books think that anyone who participates will be arrested the second they set foot on US soil then the orginizations have two choices.
1. Cease US operations
2. Do not ever set foot in the US or a country where the US can extrodite from.Comment -
We have a winner!! Good post LG.
Neteller shuts down very soon...days not weeks. These cases get thrown out somewhere down the line. Two of them clearly don't even apply. The money laundering is a stretch but its the best of the 3.Comment -
Look at the timing Pinnacle last week Neteller this week who will they nail the week of the Super Bowl ??? They waited untill one of the biggest betting times of the year to start the crusades.Comment -
Seems that way Aces. Or maybe there is just no other crimes in their district. Hey, they have to keep busy with something.Comment -
I just off the phone with the Greek’s accounting department concerning Neteller. Here’s what they said:
I was just wondering, with all the news in the last 24 hours about Neteller, are you still doing transactions with them, are you still recommending them to your customers?
Yes, there’s been no change with Neteller as far as we’re concerned. It’s business as usual.
So all the usual policies are still in effect? For instance, if my deposits were by Neteller, am I still required to do my withdrawals by Neteller?
Yes. No change. If in the future Neteller were to stop servicing American customers or go out of business, then of course you’d be allowed to access your money through other payout methods. But for now there has been no change.
We’re in an interesting gray area now though. I understand that if Neteller disappears you’ll allow other withdrawal methods, but right now they’re very shaky, and I would think many customers would be concerned about the safety of their funds doing a payout to Neteller. What if you transfer my funds to Neteller and then before I can withdraw them from Neteller they go under? Do you think that rule might be loosened up, for people with justifiable concerns about using Neteller during the present uncertainty?
I understand completely what you’re saying and why you would be concerned. But management has looked at the situation and at this time has not made any changes in the policy.
In a sense could that be read as a positive sign? I mean, you merchants are at least as vulnerable as the customers if Neteller were to go under and not pay, as you need to keep a lot of money there as a float to cover your transactions. So I would think if you were concerned, you’d be pulling out of Neteller yourselves. I would think you’d not only allow but would encourage your customers to withdraw through other means, just so you don’t have to keep as big a float at Neteller. Do you see what I’m saying?
Yes, and I would agree. That’s how I’d interpret it too. All I can say is management is very aware of the situation and is monitoring it very closely. If they were to come to the conclusion that our money and our customers’ money is not safe with Neteller, you can be assured they would take appropriate action. They would change whatever policies and practices are necessary to make sure our customers have access to their money. But right now it’s business as usual with Neteller until we’re told otherwise.Comment -
Just a question of time before they cave into the scare tactics of the US gov.
I am all done with neteller. Time to revert to the good old days.
f I had to guess I'd say they are done with the USA by Friday.
I am honestly ashamed to be an american. My own government does not trust me. They will let me gamble my money away in a land based casino, a racetrack, otb,a bingo parlor, or by buying lottery tickets. Heaven forbid if I gamble on something I have an actual shot of winning.
What is this really all about? Morality, or Uncle Sam not getting his cut?Comment -
will I be able to get my EFT out once it clears?...Comment -
Whenever I do a Neteller EFT and it goes from “Pending” to “Accepted,” I call my bank that day to make sure they received it. I’ve done that dozens if not hundreds of times, and 100% of the time the money was in my bank account when I called.
I put in for a Neteller EFT yesterday, and when I logged into my account today, it already showed up as “Accepted.” I called my bank and they had received nothing. I waited several hours until the end of the business day and called my bank again, and again they said they had received nothing.
I called Neteller, and their explanation is that apparently “Accepted” doesn’t mean what I’ve always interpreted it to mean. I thought “Accepted” meant received (i.e., accepted) by my bank. Evidently it means just that Neteller itself has agreed to do the transfer, not that they’ve actually done it.
So “Pending” means “We acknowledge you’ve asked for your money,” and “Accepted” means “We agree to process your request for your money.” And then, according to what she just told me, it can take another one to two business days after they “accept” your request for the money to in fact arrive at your bank.
That’s all well and good, but I thought it was interesting that this is the first time I’ve ever encountered any lag after an EFT was labeled “Accepted.” I asked her if it was related to their present problems, and she said no, that it probably had to do with the holiday, that banks in Canada were open but banks in the U.S. were not. She said many people had called her today asking exactly what I was asking, and she was confident the delay was due to the banking holiday.
I hope so.Comment -
TLD,
scary to think about...mine probably won't clear until Friday at the earliest and Tuesday at the latest...Comment
