It Sure is a Different World than a Year Ago Today - US Siezes $55M from Neteller
U.S. Seizes $55 Million of NETELLER Funds
Company Is in Negotiations with Attorney's Office to Return Money to Players in U.S.
Online poker players who have not yet received their money from NETELLER can blame the U.S. Government.
Through a statement to its investors, NETTELER said Thursday that about $55 million was seized by the U.S. Attorney’s Office (USAO) after two of its founders and former board members were arrested and charged with money laundering on Jan. 16.
Most of the money was in route to U.S. customers. NETELLER also warned that U.S. customers will not be able to withdraw any money from their NETELLER accounts at this time, although the company is working to change this.
"The return of funds to our US customers is a top priority for NETELLER” said Ron Martin, NETELLER's President and CEO.
The following statement was taken directly from the Thursday’s announcement, which is published in its entirety below: “U.S. 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.”
NETELLER’s legal advisors recently sat down with folks from the USAO for the Southern District of New York and pledged full cooperation with the government’s investigation. NETELLER agreed to hand over requested documents concerning this investigation, with the possibility that a forensic accounting firm will be hired – at NETELLER’s expense – to assist the USAO in this investigation.
At this meeting, company representatives also began negotiations with the USAO to allow it to return funds to U.S. customers. NETELLER’s has enough cash on hand to fund all its customer’s accounts and remain in business.
A forensic accounting firm is often used to translate financial movements to investigators in cases like these. They are often used by public institutions such as schools to track missing money, and by investigators to help follow money and transactions by studying reams of paperwork that accounting departments generate.
As far as the company knows, no additional charges have been made against current employees, although the group cannot guarantee that charges won't be levied. The two men that were arrested and charged in January, Stephen Lawrence and John Lefebvre, founded the company and were two of its largest shareholders, but held no positions with the firm.
The entire statement is published below:
NETELLER Plc, 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.
Company Is in Negotiations with Attorney's Office to Return Money to Players in U.S.
Online poker players who have not yet received their money from NETELLER can blame the U.S. Government.
Through a statement to its investors, NETTELER said Thursday that about $55 million was seized by the U.S. Attorney’s Office (USAO) after two of its founders and former board members were arrested and charged with money laundering on Jan. 16.
Most of the money was in route to U.S. customers. NETELLER also warned that U.S. customers will not be able to withdraw any money from their NETELLER accounts at this time, although the company is working to change this.
"The return of funds to our US customers is a top priority for NETELLER” said Ron Martin, NETELLER's President and CEO.
The following statement was taken directly from the Thursday’s announcement, which is published in its entirety below: “U.S. 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.”
NETELLER’s legal advisors recently sat down with folks from the USAO for the Southern District of New York and pledged full cooperation with the government’s investigation. NETELLER agreed to hand over requested documents concerning this investigation, with the possibility that a forensic accounting firm will be hired – at NETELLER’s expense – to assist the USAO in this investigation.
At this meeting, company representatives also began negotiations with the USAO to allow it to return funds to U.S. customers. NETELLER’s has enough cash on hand to fund all its customer’s accounts and remain in business.
A forensic accounting firm is often used to translate financial movements to investigators in cases like these. They are often used by public institutions such as schools to track missing money, and by investigators to help follow money and transactions by studying reams of paperwork that accounting departments generate.
As far as the company knows, no additional charges have been made against current employees, although the group cannot guarantee that charges won't be levied. The two men that were arrested and charged in January, Stephen Lawrence and John Lefebvre, founded the company and were two of its largest shareholders, but held no positions with the firm.
The entire statement is published below:
NETELLER Plc, 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.
Comments
Kind of reminds me of when they could arrest and detain citizens for 'suspicion' of being communists back in the '60's. It was bullshit then, and it's bullshit now, and until the public realizes they actually HAVE a say in it, the USGov't won't stop.
Land of the Free? Home of the Brave? What utter nonsense.
It is unfortunate, but this also represents the small part of the American Public that actually takes the time to watch the State of the Union Addresses, instead of watching American Idol.
Things will not change in the US during a time period where American Idols' viewer ship beats the State of the Union Address by a margin of 100 Million people. That also represents 100 Million Americans who don’t care enough to vote. I even take the time to watch the State of Union and I don’t even live there.
Personally, I don’t feel sorry one bit for any ‘democrat’ who bitches about Bush but does nothing to make change. America is a democracy, not perfect, but a democracy nonetheless that depends greatly on voters.
Although most Americans probably don’t appreciate it, their democracy is much better than living under Augusto Pinochet, Juan Peron, or Fransico Franco. Ask any person who has immigrated to Canada from Communist Eastern Europe in the last 30 years and they will tell you how much democracy should really be appreciated. The American Government may be telling Americans not to gamble, BUT, they do not dictate to their citizens what to eat, what to drive and even what colour they may paint their homes.
Because of geography and our short history many North Americans live relatively sheltered from what occurs in the rest of world, and the events of the last century. I would say that 95% of the world’s population would be utterly insulted that people would complain about a government because of something as trivial as poker. But, at least “we” have the right to complain, something else about 80% of the world’s population isn’t free to do.
America isn’t free? Provide me with an example of one Country, present or past, that has a population comprising greater than 4.5% of the world’s population that has been provided with more freedoms?
Until you can do this, you cannot claim Americans are not free.
Wow it's funny that you should talk about American democracy and use it as being better than Pinochet. Who the hell do you think put him in power? The Americans. Why? Because it was better for them than allowing a democratically elected socialist stay in power. All Salvador Allende did is win an election. Ask him how he feels about American democracy..... oh wait you can't he died in the coup lead by Pinochet and backed by the CIA.
Franco's anti-communist stance lead him to having very friendly relations with the US, who accepted spain into the UN and also NATO. Despite being put in power with the help of Germany and Italy. US troops....sure they can go into Spain if you help prop me up.
America is about Money (Oil and their own greed)..... democracy gives it the glorious look of a free country, but their government is "morally superior" to all others in their opinion.
The Americans have blood all over their hands with "dictators" they have installed or helped keep in power, yet they preach democracy.
But I was referring to the Freedoms of their OWN constituents, those to whom they owe the greatest.
Sure Americans may surpress others, every world super power government and/or religion, throughout history has, but their people enjoy more Freedom than 100 years ago or the majority of the world could have ever imagined possible, as do we.
Sorry for having this post digress from "General Poker Talk." My bad.