Official Neteller Update Thread Part 2

[bossplayer]

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One thing I have found consistently funny in this is how people feel that because Neteller is publicly traded, they are somehow "reputable". Anyone here familiar with Enron, Worldcom, etc. You gotta be kidding. Plus, the DOJ just confiscated $160MM, and they have already been suspended from the London AIM. I can't believe that anyone outside the US would still do business with these guys.


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Mainly because my government does not behave like the DOJ.

Neteller saves me about 3% in exchange rate costs whenever I want to move money between sites. I don't need a huge balance there but I do want somewhere to hold dollars for a while.

Neteller are paying out to US customers despite the DOJ stealing $136m of their money. Essentially this money comes from the shareholders.

What I find amusing is that people are still bitching about Neteller rather than their government. Who else do you know that if your money was stolen after it had left them to go toyou, whilst someone else had it, would then pay the thieves more just to be able to pay you back?

I know its been painful but when you get your money I hope you remember to say thanks.

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The US government is totally at fault here (almost made a mistake and said 'our government')

Something major will have to happen to change it, and this ain't it. America has been VERY messed up for a long time. Over taxation has the potential to cause some stirring because everyone can relate to it, but sheeples take a lot of punishment...

[sightless]

SON OF A GOD DAMN BITCH!
GOD BLESS AMERICA!!!

[ilikeaces86_]

I am so happy since I basically forgot about the 25k I had stuck in there.

[jkpoker]

about time

[Merkle]

It does surprise me how many people seem to "forget" that it was our govt that took the money Neteller was sending us so many months ago. How did they expect Neteller to get the money to us until DOJ agreed not to confiscate it as it entered the country?

Neteller has done what was necessary to get DOJ off their back so they could return our money and yes I am thankful.

I almost wish they had kept my money and told DOJ to fly a kite.

[oldbookguy]

From the press release from the USAO in NY:
94 MILLION is the amout of funds frozen by the NT proecution, "In addition,
NETeller will return to customers in the United States
approximately $94 million which NETeller currently has on deposit in a foreign bank account."

The entire release:
Thanks to ryanbadie at the Yahoo Groups NTCS for posting this.

United States Attorney
Southern District of New York
FOR IMMEDIATE RELEASE CONTACT: U.S. ATTORNEY'S OFFICE
July 18, 2007 YUSILL SCRIBNER,
REBEKAH CARMICHAEL
PUBLIC INFORMATION OFFICE
(212) 637-2600
ISLE OF MAN-BASED INTERNET PAYMENT COMPANY NETELLER PLC
ADMITS CRIMINAL WRONGDOING AND AGREES TO FORFEIT
$136 MILLION FOR CONSPIRING TO PROMOTE
INTERNET GAMBLING BUSINESSES
MICHAEL J. GARCIA, the United States Attorney for the
Southern District of New York, announced today that NETeller PLC
("NETeller") -- an Internet payment business based in the Isle of
Man and publicly traded on the Alternative Investment Market
("AIM") of the London Stock Exchange -- has admitted to criminal
wrongdoing and has agreed to forfeit $136,000,000 in criminal
proceeds as part of an agreement to defer prosecution of NETeller
for its participation in a conspiracy to promote Internet
gambling businesses and to operate an unlicensed money
transmitting business. A felony Information specifying the
charges against NETeller; a Statement of Admitted Facts by
NETeller; and the Deferred Prosecution Agreement, which was
accepted by United States District Judge P. KEVIN CASTEL, were
filed today in federal court in Manhattan.
The Charges
The felony Information filed today charges that
NETeller participated in a conspiracy, in violation of Title 18,
United States Code, Section 371, to: (i) use the wires to
transmit in interstate and foreign commerce bets and wagers on
behalf of persons engaged in the business of betting and
wagering, in violation of Title 18, United States Code, Section
1084; (ii) conduct illegal gambling businesses, in violation of
Title 18, United States Code, Section 1955; (iii) conduct
international monetary transactions for purposes of promoting
illegal gambling, in violation of Title 18, United States Code,
Section 1956(a)(2)(A); and (iv) conduct an unlicensed money
transmitting business, in violation of Title 18, United States
Code, Section 1960. The Information also contains a criminal
Forfeiture Allegation against all property involved in or derived
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from the criminal wrongdoing, in the amount of at least $1
billion dollars.
The Criminal Wrongdoing
As set forth in the Information and the Statement of
Admitted facts:
In 1999, STEPHEN ERIC LAWRENCE and JOHN DAVID LEFEBVRE
began developing the Internet payment system that was used by
NETeller and its predecessors to provide online payment services
to Internet gambling companies. In April 2004, NETeller became a
public company and listed its shares for trading on the AIM of
the London Stock Exchange. At the time, NETeller openly stated
in its prospectus, issued in connection with its initial public
offering ("IPO"), that its conduct violated the law in the United
States.
At its peak in September 2005, NETeller had a market
capitalization of approximately $2 billion. Over the years,
NETeller and its predecessors processed more than $10 billion in
payment transactions for customers in the United States related
to the Internet gambling industry, and consistently derived
approximately 75% or more of its annual profits from such
transactions.
NETeller's illegal conduct in the United States did not
end until January 2007, when LAWRENCE and LEFEBVRE were arrested
on warrants issued by the United States District Court for the
Southern District of New York. Earlier this month, both LAWRENCE
and LEFEBVRE pleaded guilty to charges that they conspired with
others to operate an unlicensed money transmitting business and
to promote illegal gambling by providing payment services to
enable offshore Internet gambling businesses to access customers
in the United States. LAWRENCE and LEFEBVRE each face a maximum
term of imprisonment of five years and a maximum fine of $250,000
or twice the gross pecuniary gain from the offense. In addition,
LAWRENCE and LEFEBVRE each admitted to forfeiture allegations
requiring them to personally forfeit an additional $100 million
dollars to the United States, which they are expected to pay in
full prior to sentencing. LAWRENCE and LEFEBVRE are currently
scheduled to be sentenced by Judge CASTEL on October 29, 2007.
In its Statement of Admitted Facts issued in connection
with the Deferred Prosecution Agreement, NETeller admitted that
NETeller and its predecessors, through the conduct of certain
officers and directors: (i) knowingly operated an unlicensed
money transmitting business in the United States; (ii) knowingly
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agreed to promote illegal Internet gambling by using the wires
and other means to transmit in interstate and foreign commerce
bets and wagers from customers in the United States to numerous
Internet gambling businesses located outside of the United
States, and payments to customers in the United States from
numerous Internet gambling businesses located outside of the
United States; and (iii) intentionally took steps to avoid
detection and jurisdiction in the United States by operating in
the United States through agents and companies that were not
owned, but were controlled, by NETeller and its predecessors.
The Deferred Prosecution Agreement
As part of the Deferred Prosecution Agreement, NETeller
has agreed to forfeit $136 million in profits from its wrongdoing
to the United States in a civil forfeiture action. In addition,
NETeller will return to customers in the United States
approximately $94 million which NETeller currently has on deposit
in a foreign bank account. NETeller has also agreed to cooperate
fully with the Government. Under the Agreement prosecution of the
criminal charges against NETeller will be deferred for a period
of two years, until July 2009, if specified conditions are met.
At the end of that period, if NETeller has fully complied with
all the terms of the Agreement, the Government will move to
dismiss the Information.
In addition to the foregoing, the Agreement also
imposes permanent restrictions and controls on the operations of
NETeller, including, among other things, that: (i) NETeller will
not participate in illegal gambling transactions involving
persons located in the United States; (ii) NETeller will maintain
procedures and controls designed to prevent its services from
being used to conduct U.S. gambling transactions; and (iii)
NETeller will monitor regularly the effectiveness of its
procedures and controls designed to prevent its services from
being used to conduct U.S. gambling transactions, and will revise
and update its procedures and controls as necessary to achieve
that purpose. In order to ensure NETeller's compliance, the
Agreement also requires NETeller to retain a monitor for a period
of at least eighteen months. The restrictions and controls on
the company's operations in the United States will remain in
effect and the company's cooperation will continue after charges
against the company are dismissed.
Mr. GARCIA said that the decision to file a charge
against NETeller was based on several factors set forth in the
Department of Justice Principles of Federal Prosecutions of
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Business Organizations (the "Principles"), including: (i) the
seriousness and duration of NETeller's conduct involving the
processing of billions of dollars of gambling transactions in
violation of state and federal law, and (ii) the involvement of
senior corporate officers in the company's criminal conduct.
The decision then to enter into the Deferred
Prosecution Agreement with NETeller, Mr. GARCIA continued, was
based on a variety of factors and considerations also set out in
the Principles, including: (i) the company's frank acknowledgment
of its misconduct and its willingness to cooperate with the
investigation; and (ii) the company's remedial actions, including
cessation of its participation in illegal gambling transactions
involving persons located in the United States; implementation of
procedures and controls to prevent its services from being used
to conduct U.S. gambling transactions; retention of a monitor to
ensure compliance with those procedures and controls; and
disgorgement of $136,000,000 in criminal proceeds.
Mr. GARCIA stated, "NETeller moved billions of dollars
offshore, serving as a financial conduit that enabled Internet
gambling businesses to prosper by violating United States laws.
Supporting illegal gambling is not a business risk, it is a
crime, and today's proceedings mark yet another example of the
consequences of engaging in that conduct."
Mr. GARCIA praised the tremendous investigative work of
the Federal Bureau of Investigation in this case.
Assistant United States Attorneys TIMOTHY J. TREANOR,
CHRISTOPHER P. CONNIFF, and SHARON COHEN LEVIN are in charge of
the prosecution.
07-186 ###

obg

[gsolis]

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I almost wish they had kept my money and told DOJ to fly a kite.

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not sure how that would have taught the DOJ a lesson.

[oldbookguy]

here is the worst part.

94,000,000. @ 5% money market NT will make about $2,400,000.00 on our money over the last 6 months.

Note: you can get that small 5% even at paypal / eBay.

obg

[ilikeaces86_]

[ QUOTE ]
here is the worst part.

94,000,000. @ 5% money market NT will make about $2,400,000.00 on our money over the last 6 months.

Note: you can get that small 5% even at paypal / eBay.

obg

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Sons of a bitches!

[Legislurker]

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I almost wish they had kept my money and told DOJ to fly a kite.

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not sure how that would have taught the DOJ a lesson.

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A knock down drag out trial with Neteller, and the two founders all going at once, with the strain the DOJ is under, would have caused considerable inconvenience. But, thats 2-4 years of uncertainty. Backing down served everyone's interests, except ours.