The official NETELLER thread. (First 40 days.) #1 of 2.

[Killerbeezz]

I called a few weeks ago and had my $475.90 EFT dated 1/17/07 cancelled because a customer service rep told me it would be the best course of action followed by a request for a check. I have yet to make the check request however my acct. balance is now $475.90. I would gladly take .50 on the dollar and be done with the whole thing. JM .02

[Sniper]

I will agree with Mike...

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I have 100% confidence that Neteller will return all account-holders 100% of their money, in due course.

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[J_B]

I agree too. But it may be a long course.

[Mike Haven]

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But it may be a long course.

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That, I will not argue with.

However, I would point out that the (probably very long) delay will be solely and utterly because of the DOJ and the slow processes of the law.

You would do far better if you hassled your Congressmen instead of Neteller, (who will definitely not risk releasing your money until they are "allowed" to, for fear of greater legal retribution than they will receive by complying with the DOJ's demand of cessation of money transfer while they carry out, (slowly), their investigations into trumped-up allegations of money-laundering, etc.).

[NesOne]

Hello Mike,

What would you estimate is a likely time-frame at this point before the situation is resolved? Does the March 16 court date play into the scenario for you?

Thanks,
NesOne

[Killerbeezz]

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But it may be a long course.

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That, I will not argue with.

However, I would point out that the (probably very long) delay will be solely and utterly because of the DOJ and the slow processes of the law.

You would do far better if you hassled your Congressmen instead of Neteller, (who will definitely not risk releasing your money until they are "allowed" to, for fear of greater legal retribution than they will receive by complying with the DOJ's demand of cessation of money transfer while they carry out, (slowly), their investigations into trumped-up allegations of money-laundering, etc.).

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First thing I thought of when I read this post is that it isn't Neteller's money to hold reguardless of the outcome of the DOJ's investigation. The next thought is why can't Neteller come out and say something about it? Their silence is the shadiest thing about this whole situation. One other question I would like answered is this...Were they breaking the law? I am fully aware that I am a participant, but I want to know w/out all the big American government hatin, were we and Neteller breaking the law? If the answer to that is yes. None of us really have a bitch about it.

[KurtSF]

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Were they breaking the law?

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Isn't that up to the judge to decide? Isn't that the question at the heart of all of this?

Also, who's "they" and what laws?

The only people indicted in anything were 2 NETeller shareholders. The company hasn't been charged with anything whatsoever. ACHs are refusing to do business with them under federal pressure, but there's nothing stopping NETeller from sending checks to all the Americans with money left there, except the desire to have some leverage with the DOJ.

[thedorf]

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this is in no way similar to enron

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Not yet, but I just don't know these people well enough to think that they're above just taking everybody's money. I think the chances of that happening are actually pretty slim but certainly not impossible. By the way, I think the fact that they are just plain not communicating for weeks at a time is completely unacceptable. I've now taken all my money out of internet gambling and neteller. I have a little left in full tilt because i've been too lazy to get a copy of my driver's license.

[Mike Haven]

Just to remind you of Neteller's February 8th Press Release:

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NETELLER Works to Return Funds to US Customers After US Withdrawal

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.

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.



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It is so obvious that they are trying their best to be seen to be working with the USAO, after the fact, now that the [censored] has hit the fan.

They thumbed their nose at the lawmakers until the dangers were spelled out to them by the arrests and seizure of funds.

Now, they've seen they weren't quite as immune from US law as they thought, after all. At this juncture, there is no way that any sane and responsible organisation, that believes it was operating legally, as far as its own country's laws are concerned, is just going to say, "Oh well, here's your money, American account-holders; thanks for your business in the past. We're about to be jailed and fined for not holding onto your money like the USAO has just asked us to, until they complete their investigations, but, hey, you've got your money, so no big deal to you."

In my opinion, you should be putting serious pressure on the USAO, by way of a daily barrage of e-mails, letters, telephone calls, physical meetings, you name it, and absolutely demanding that they agree to allow Neteller to release your money to you, immediately; especially to individuals who have only, say, less than $3,000 with Neteller, as there is no reasonable person that could argue there was a 1% chance of such an individual being involved in anything more evil or suspicious than taking advantage of Partypoker's fish giving their money away.

The day that the USAO tells you that they have no objection to Neteller releasing your money to you is the day that you will receive it from Neteller.

[KurtSF]

Mike, I see $55m "in transit" was seized. But I don't see anything in that release about the USAO asking NETeller to *not* return money to Americans. The "forensic accountants" will know about all the transaction anyway, whether the money is in NETeller's hands or its proper owner's hands, so it really doesn't matter.

I did see this though:
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To the Group’s knowledge, no criminal action or proceeding has been brought against the Group, its current officers or directors by the USAO.

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The USAO and the DOJ are using FUD tactics, very effectively mind you, against NETeller, and no direct action has been taken against them. Again, there is no reason they cannot send checks to their American customers. They are sitting on the money, not the US Govement.