Official Neteller Update Thread Part 2

[yahboohoo]

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I dont think the customer money is included in the group's cash position. Neteller's "cash position" is its OWN cash, not the cash it holds in trust for customers...

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Good point. Could certainly be true.


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anybody have an useful thoughts on how long till we see the $$$. im kinda hoping for real insight, not "when hell freezes" type answers.

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More than one source over at the NETeller Customer Coalition site has claimed that the turnaround time from when you request your cashout (commmencing no later than July 30) to when you receive your funds will be about 5 days. I only repeat this because more than one person said "they spoke to someone at NETeller" or "knew someone at NETeller" or something along those lines. It may or may not be true. But it sounds reasonable to me. If they're going to process any requests at all, I have to wonder why it would take more than 5 days -- EFT, no gov't interference.

Any hiccups, I expect, will be from US financial institutions who (erroneously?) reject NETeller transactions for whatever reasons.

[Marklar]

so why exactly does Neteller have to pay the US government $136 Million?

[jkpoker]

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According to NETeller's press release issued today, "cash available at 30 June was US$ 210.5 million (prior to the Company’s US$ 136 million US settlement)."

$60 million of that amount had been seized by US authorities. The company agreed to give an additional sum of approximately $76 million as part of its settlement with the USAO. Neteller will satisfy the obligation with a payment of $40 million to be paid on or before October 15th 2007, and the remaining balance to be paid on or before the 17th of January, 2008.

Here's my math:
$210.5 million - $136 million (US fines) - $94 million (US customers) = <font color="red">-$19.5 million</font>

You can check out NETeller's full annual report for 2006 which was also published today.

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I dont think the customer money is included in the group's cash position. Neteller's "cash position" is its OWN cash, not the cash it holds in trust for customers.... see part of the release i have quoted below:

"""""""""The Company has also agreed that it will, as part of the US resolution, implement the Distribution Plan to return approximately US$ 94 million of funds owed to US customers. This amount is currently held in trust accounts with the Group’s European bankers. The repayment of this amount will have no impact on the Group’s own cash position.""""""""""

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Their Cash position most likely doesnt include money already seized either. Which was in the 60 million your adding for the 136 million i believe

[farmslicer7]

Because I can't get an EFT (closed bank account), I have to get a check (6 figs).

Any reason to think this may be a problem depositing it into a bank?

[yahboohoo]

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so why exactly does Neteller have to pay the US government $136 Million?

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Because NETeller agreed to pay. The US gov't "persuaded" NETeller.

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Their Cash position most likely doesnt include money already seized either. Which was in the 60 million your adding for the 136 million i believe

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NETeller's press release is pretty specific: "Cash available at 30 June was US$ 210.5 million (prior to the Company’s US$ 136 million US settlement)."

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Because I can't get an EFT (closed bank account), I have to get a check (6 figs).

Any reason to think this may be a problem depositing it into a bank?

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NETeller has said that the ONLY condition under which it will issue a check is if the bank account tied to your NETeller account has been closed (or rejects the transaction, I assume).

[FatalError]

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Because I can't get an EFT (closed bank account), I have to get a check (6 figs).

Any reason to think this may be a problem depositing it into a bank?

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14 day hold 4 realz

[Wahoo73]

Your misspelling of the word "compensations" notwithstanding, I think your three possible "reasons" are right on target, with #2 IMO being the most likely.

Which brings me to the point of this post: Have any of you who ARE lawyers read the Deferred Prosecution Agreement signed by Neteller and the DOJ? It would be welcome if some of you lawyers could give us your interpretation of this document, especially the section of it that stipulates the extent of Neteller's cooperation with the DOJ (paragraphs 8-10), and how this agreement for Neteller to cooperate with the DOJ could be related to this Release issue.

[Mendacious]

I don't think that there is much nexus between the DOJ/Neteller agreement and the release, other than it appears as though there are foreign disclosure protection laws which Neteller is agreeing to circumvent and might wish a release for.

It appears as though this gives neteller an ongoing duty to cooperate with the DOJ and FBI concerning its investigations of Neteller's business... which I believe means they are looking for Neteller to help it make more cases against offshore online Sportsbetting sites.

That appears to be the purpose of the agreement, however, I would imagine that either the DOJ or FBI could request information which would be used by other agencies of the GOV-- namely the IRS-- which I think a lot of people are concerned about. But I don't think the waiver affects this at all, and it does appear as though the DOJ/FBI interest is in prosecuting other offshore gambling businesses.

[FatalError]

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I don't think that there is much nexus between the DOJ/Neteller agreement and the release, other than it appears as though there are foreign disclosure protection laws which Neteller is agreeing to circumvent and might wish a release for.

It appears as though this gives neteller an ongoing duty to cooperate with the DOJ and FBI concerning its investigations of Neteller's business... which I believe means they are looking for Neteller to help it make more cases against offshore online Sportsbetting sites.

That appears to be the purpose of the agreement, however, I would imagine that either the DOJ or FBI could request information which would be used by other agencies of the GOV-- namely the IRS-- which I think a lot of people are concerned about. But I don't think the waiver affects this at all, and it does appear as though the DOJ/FBI interest is in prosecuting other offshore gambling businesses.

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good post

i think nailing big sportsbetting companies is a higher priority than nailing tax evaders which there are already a lot of checks and balances for.

especially in the wake of the nba ref scandal

[Poker CPA]

If you were using Neteller as a non US customer, would you leave your cash in your account? Or would you move it ASAP, starting on July 1st, based on this deal?