Neteller Arrests

[Wynton]

[ QUOTE ]
I believe he said the source was ergamingnews

London is 5 hours ahead of EST so it is already 7 pm there.

[/ QUOTE ]

In my post reporting this, I think I said that the source was egaming review.

[latefordinner]

Here is the release - on cardplayer now:

“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, 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.”

[brettkc]

Cardplayer is reporting the arrests are due to neteller funding internet gambling..

http://www.cardplayer.com/poker_news/article/8111

[latefordinner]

This now reeks of an intimidation move to create a climate of fear within the industry more than anything else. I actually wouldn't be that surprised if charges were subsequently dropped.

[otctrader]

[ QUOTE ]
Since in or about June 2006, the Federal Bureau of
Investigation ("FBI") has been conducting an investigation of
Neteller PLC, a company that is based in Isle of Man and is
publicly-traded in the United Kingdom. The investigation has
revealed that Neteller PLC conducts and facilitates illegal
financial transactions between gambling customers in the United
States and numerous offshore online gambling businesses.

[/ QUOTE ]

[ QUOTE ]
On or about August 12, 2006, a cooperating
witness (the “CW”), who at the time was located in Miami, Florida,
used a computer to open an account on Neteller.com (the “Neteller
Account”), and the CW electronically transferred $400 from a bank
account in Miami, Florida, into the Neteller Account. On or about
August 22, 2006, the CW, who at the time was located in Miami,
Florida, used a computer to open a wagering account with an online
gambling business based in Antigua (“Online Gambling Business #1),
by electronically transferring $400 from the Neteller Account to
Online Gambling Business #1. On or about August 24, 2006, the CW,
who at the time was located in Miami, Florida, used a computer to
access Online Gambling Business #1's website, and the CW then
wagered $250 on a National Football League (“NFL”) football game
and won approximately $200.

[/ QUOTE ]

Well I'll be damned! Way to go Sherlock. Does this guy sell his NFL picks btw?

Majorwager/US AG

[Wynton]

Because their involvement with Neteller predated the recent legislation, the charges presumably are based upon other statutes. This may have nothing to do with poker and only be related to sports betting. Either way, this prosecution certainly seems like a more aggressive approach.

I hope a copy of the indictment will be available soon, if nothing else, to quiet the inevitable speculation.

[Wynton]

Egaming review is characterizing the charges as money laundering, FWIW.

[latefordinner]

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."

[1p0kerboy]

[ QUOTE ]
and won approximately $200

[/ QUOTE ]

Why complain? You won!

[latefordinner]

link to whole press release on gambling 911 now

http://www.gambling911.com/NETeller-...ts-011607.html