Neteller Update...

[Drontier]

so does this mean we have to recertify...?

[grandgnu]

[ QUOTE ]
so does this mean we have to recertify...?

[/ QUOTE ]

EMAIL FROM NETELLER:

At this time, our ability to provide US members with withdrawals is significantly reduced. We assure you that restoring withdrawal options for you is our top priority. In the meantime, your funds continue to be safely maintained in trust on your behalf.



Unfortunately, we cannot determine how long it will take to restore our withdrawal systems, but will advise you of any changes at http://updates.neteller.com. We sincerely apologize for any and all inconvenience caused by this delay.



US member accounts have been temporarily de-certified to revoke Peer-to-Peer capabilities. These accounts should be automatically re-certified in the next 10 business days, but Peer-to-Peer transfers will no longer be available to US members.



Please continue to visit our US Member Update at http://updates.neteller.com for the latest information about NETELLER and its service to US members.



Thanks,



Contact Centre Agent (1203)
NETELLER

Toll Free: 888.258.5859
Local: 403.233.9466
Fax: 403.678.2128
support@neteller.com

www.neteller.com

[PokerPunk]

latest missive from NETeller

Press Release
NETELLER Works to Return Funds to US Customers After US Withdrawal

8 February 2007 - NETELLER Plc (LSE: NLR), the leading global independent online money transfer business, today issued the following update with regard to its US business and criminal charges against two of its founders.

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.

NETELLER remains committed to developing its business in line with its stated strategic objectives including geographical and product diversification for all markets. The Group will focus on its continuing business and the opportunities available in the growing markets of Europe, Asia and the Americas outside of the United States. Since the Group’s withdrawal from the US market on 18 January 2007, average daily new account sign-ups of new customers from non-US markets has been around 1,400. This compares to average daily sign ups of 3,303 for the year to 31 December 2006. Daily fee revenue since 18 January 2007 has averaged over US$ 200,000 per day (excluding any revenues from Netbanx, 1-Pay and interest income). These metrics demonstrate the resilience of the Group's ongoing business. NETELLER customers not resident in the US continue to be minimally affected by this withdrawal from the US market.

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.

[SlowHabit]

Has anyone recently request a check using the courier service?

If so, has it arrived and if it did, how long did it take?

[rocketeer]

Wow! Neteller finally admits what everyone knows? That they cannot give us our money back? I guess this is far better than the "we are experiencing delays due to the large number of withdrawals" crap they've been telling us over the phone. Go Neteller!

[JPFisher55]

Actually the statement by Neteller indicates that Neteller is voluntarily complying with a federal warrant seizing these funds even though this warrant is not enfoceable in the Isle of Man.
Neteller is clearly cooperating with the DOJ to get the best deal for it and its founders. US customers money is being held hostage by Neteller to get the best deal for it. Neteller could have refused to honor this warrant and fought the DOJ; instead it rolled over to the detriment of its US customers and its shareholders who have seen the value of their shares disappear.

[Melchiades]

Jebus, americans really do take it up the ass from your own governement. I feel for you all. The whole situation is surreal and tragic.

[morphball]

Any one have any links to the text of the DOJ's seizure order of Neteller funds?

[BigBiceps]

Only related stuff from their site is:

http://www.usdoj.gov/usao/nys/pressr...rarrestspr.pdf

http://www.usdoj.gov/usao/nys/pressr...rests%20PR.pdf

which is all old.

[*TT*]

[ QUOTE ]
Actually the statement by Neteller indicates that Neteller is voluntarily complying with a federal warrant seizing these funds even though this warrant is not enfoceable in the Isle of Man.
Neteller is clearly cooperating with the DOJ to get the best deal for it and its founders. US customers money is being held hostage by Neteller to get the best deal for it. Neteller could have refused to honor this warrant and fought the DOJ; instead it rolled over to the detriment of its US customers and its shareholders who have seen the value of their shares disappear.

[/ QUOTE ]

I think our statement is correct, except by "rolling over" they are actually protecting their employees, executives, and shareholders. The company may actually survive as an asset. If I was on the board of Neteller I would advise the same - as would most people here.

Sadly none of this is surprising.

all our base are belong to Neteller - they hold the cards and are in a fantastic negotiating position.

TT [img]/images/graemlins/club.gif[/img]