neteller founder pleads guilty

[bossplayer]

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The Neteller founders and Neteller as a company were actusally guilty of money laundering on it face, so of course they were going to plead. This is the real problem that will further squeeze payment processors. It is a federal crime to it any way process payments to limit to amount of finanicial information that would general be present. In this case, the reason they had individual liability even though they were not working for the company anymore is that they had set up an ACH and another financial processing company which Neteller would essential wash gaming money through, as well as using their corporate account in New York. The two of them still owned these two companies, and this is why they had to plea without question.

UIGEA now requires payment processors to break the very strict anti-money laundering laws in place in the U.S., and frankly I am surprised there is not more of a problem yet. Wait until the next tier goes down, and players start getting pulled in on tax evasion and FBAR violations, (which can have up to a 10 sentence with a 500K fine), not to mention that to the federal goverment every player who makes a peer-to-peer transfer becomes a financial institution and must list this on their Form TD F 90-22.1 with their FBAR's. There is a four part test for gaining leniecy if you were determined to have a unwilling violation of FBAR, and most poker players will fail. If you past this test your FBAR fine will be only 5-10% of the maximum in your Neteller/other similar accounts during the year, but this is much better than the maximum penalty. The deadline for filing is today, no extension available. Be sure to have good tax advice, folks.

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WTF ever, you make good points (for the government), but we have yet to see any type of wide ranged attack against the players. When/if that happens there won't be these huge aforementioned fines and prison sentences as almost none of us new of their existence or whether or not they applied.

Sure, in a perfect world where every (or even 1 in a 100) poker player (casual or pro) went to his effing tax adviser or decided to read all of the tax codes that MIGHT apply to him (before he ever played a hand), then you are correct in every way.

Ignorance of the law is no excuse, but strength comes in numbers. The 'numbers' of people gaming online were/are massive so I believe if this was ever going to be enforced to any great amount there would be lesser penalties (by far) or case law will be developed to set a precedent that others will know apply to them.

We have gone long enough trying to interpret in the governments favor every single law/code out there. More case law needs to be added for me to be convinced that the penalties that you stated will occur.

[PokeReader]

Government needs player account info before going after players. I don't think they will go after everyone, just the bigger fish that didn't pay their taxes/file FBAR's. Now that they have Neteller, and soon Party records anyone that made alot and didn't pay, even late is foolish.

[Jamougha]

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I wish I knew why he pleaded out, its going to bankrupt him potentially, and go to jail, would think he would fight even with long odds.

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If he pleads guilty he gets a fine he can afford and 5 years in jail, out in 2, maybe they'll even suspend it. OTOH if you fight a federal case they will try to send you down for outragous periods, decades.

As a result, guilty or not, it almost always makes sense to plead guilty. That's how the federal system maintains it's 98% conviction rate.

A clever way of eliminating the right to a fair trial.