Neteller Funds Seized by FBI
Neteller has had $55 Million in Funds seized by the FBI. These funds are payment processes in transit to and from the US. Authorities are saying the funds are "frozen".
"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 U.S. customers," Neteller said in a statement.
"The amount of funds seized by the USA or otherwise restricted by third parties does not exceed US$55 million (euro42 million)," it added. The FBI has also hired a forensic accounting firm to compile a list of US customers who have had Neteller Transactions. Neteller has apparently said it will co-operate.
Most internet poker players already know the 2 founders were arrested in the US and are each facing 20 year racketeering charges, and US Operations were suspended last month. Neteller lost upwards of 65% of its business due to New Anti Gambling Legislation which was "porked" into law in October of the coattails of the port security bill. George W. Bush signed the bill on October 14th making it US law. Neteller is based in the Isle of Man, traded on the Britain Exchange, and was the favorite payment processor for Internet Poker.
Now here was a statement from Netteller.
NETELLER Works to Return Funds to US Customers After US Withdrawal
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.
So Let's all Hope and Pray That people actually see their Funds. I don't Understand how the U.S. Goverment can steal the money unless they can prove that it actually came from Gambling
and Not Legit Activities, But that is what Lawyers are for.
Here is the Headline that we all want to see:
Funds will be returned to rightfull owners"
