NETELLER Resolves Investigation With U.S. Government
taken from cardplayer
NETELLER Resolves Investigation With U.S. Government
U.S. Customers Will Be Able to Request a Money Withdrawal by End of Month
NETELLER today announced that it entered into an agreement with the United States Attorney’s Office for the Southern District of New York (USAO) that will resolve the investigation that caused headaches for so many customers located in the U.S.
As a result, U.S. customers will be able to log into their NETELLER accounts and request withdrawals no later than July 30. The exact date when customers can make their requests for their money has not yet been announced. The company says further information will be released when available to its customers through email and its website.
Both NETELLER and the USAO contradicted themselves in their statements. The USAO said that the deal allowed for NETELLER to return approximately $94 million of U.S. customer's money that it said NETELLER had in a foreign bank account. In its statement, NETELLER said the deal will allow approximately $60 million to be returned that was seized by the USAO in January.
NETELLER stopped doing business with U.S. customers in January.
Here’s what Ron Martin, the president and CEO of NETELLER, had to say about the resolution:
“This agreement resolves the USAO’s investigation relating to the company’s former U.S. business activities. We believe that this settlement is in the best interests of NETELLER and its shareholders. Our customers, employees, and shareholders have all patiently waited for this resolution.
“We anticipate within the next few weeks that we will have fully implemented the plan for the return of funds to our U.S. customers and are hopeful that, by that time, we will have restored the Company’s shares to trading on AIM. We can now begin to refocus our efforts on building and strengthening the NETELLER business in the growing markets of the European and Asia Pacific regions.”
As part of the settlement, NETELLER agreed to pay the U.S. $136 million. NETELLER says that includes the approximately $60 million that was seized during the first days of the investigation.
In January, the USAO charged the two founders of NETELLER, as well as the company, of violating various gambling-related laws. The founders, John Lefebvre and Steven Lawrence, both pleaded guilty earlier this month. They face up to five years in prison and fines in the millions of dollars, although since both agreed to participate in the investigation, it’s doubtful they will receive the maximum sentence.
Sentencing for both men, who are Canadian, is in October.
As part of what’s called a Deferred Prosecution Agreement that NETELLER entered with the USAO, it will continue to cooperate with both U.S. investigators as the investigation continues, and a forensic accounting firm that will make sure NETELLER continues to follow U.S. law. The firm will also help NETELLER set up procedures and controls to prevent what it deems illegal transactions between American gambling consumers and offshore online poker rooms and casinos.
Note: This article was revised at 3:14 p.m. PT |
