Founders of Neteller Arrested!

[REOdeathwagon]

"Additionally, in July 2003, one of Neteller's competitors, PayPal, and its parent eBay, entered into a civil settlement agreement with the United States Attorney's Office for the Eastern District of Missouri to settle allegations it aided in illegal offshore and on-line gambling activities. As part of the agreement, PayPal agreed to forfeit $10 million, representing proceeds derived by PayPal from the processing of illegal gambling transactions."


I, have only done business with NETeller for online wagering. But, would have to assume that when PayPal left the market. The same sort of 'end of the world' threads were going on then in these forums, in 2000.

As a matter of fact, I originally opened my PayPal account, to fund an old Paradise Poker (the biggest room at the time) account, and found out Paradise no longer accepted PayPal. Wow, I still have the records for the account, but have still never used PayPal.
Maybe, I do have an online gambling problem, Thanks, Mr. Frist.

[REOdeathwagon]

The trouble with this whole friggin mess is the plain and simple fact that no one, not PAYPAL, not BOS, not WWTS and now not NETELLER have taken any steps whatsoever to play hardball with the U. S. Attorney's office and it's not going to get any better as the legal counsel that these guys are relying upon are scared to death and totally ineffective.

It's a damn shame!!!

Have a good one.

The whole industry has made hundreds of millions (if not billion) of dollars, in pure profit on US punters.

And, a fortune on advertising' in the US market, snubbing their nose at the US government. And, these ads are still running on network TV.

And will spend another fortune on legal fees defending itself, from an overzealus US government.

Instead of initially funding a well capitilised lobbying campaign, to work within the US governments 'well oiled' system. Never once (that I know of), has this industry 'bonus abused' our crooked electoral process, to avoid all this mess in first place.

[REOdeathwagon]

It has, and doesn't matter. Whether or not they're found guilty, or if it even goes to trial doesn't matter either. They're using these guys to go after the bigger fish.

Re: Money tracking system.

It's total BULLSHIT that they scream "We're fighting terrorism!" every time they want to get something pushed through congress/the house/whatever.



What a joke.

Terrorism is todays catch all phrase, and the great mass majority of idoits in america, eat it up. And will gladly give up their hard fought for rights, to fight against this percieved threat.

In all of the daily propaganda shoved down american throats regarding 'terrorism'. Change that simple word to "drugs', and it would have applied equally as well 20 years ago. Change that word to 'communism' and it would have applied equally as well, 20-50 years ago. Change it to 'jewish' and it would have applied in nazi germany. (sorry 'meister)
Insert the word "online gambling', and it applies well for their purposes today. Who Knows, tommorow the US government may not even give a rats ass about 'online gambling'. There will be another new 'industry', to shake down.

The only threat to the great mass majority of americans today, are his fellow americans. Or government policies, that are passed in the name of fighting terrorism, communism, drugs, online gambling, or whatever new war will be waged on the american citizens constitutoinal(sp?) rights.

sorry about the off topic rant...

[jetset]

WAS NETELLER'S BAN ON U.S. PLAYERS PREMEDITATED?

If the ban on US players has been planned since November, why was more warning not given?

For the players, it was an unexpected shock when notices suddenly went up on the Neteller site abruptly advising that "with immediate effect" all US player transactions with online gambling sites would be banned (see previous InfoPowa report) But Reuters reported today that the Isle of Man-based e-wallet had been planning such a move since November.

The revelation immediately begs the question: "If this move has been in process for so long, why weren't players notified in advance and given a window of opportunity to clear their accounts instead of the current scramble?" Investors may be asking the same question as they face a share that has already endured a 60 percent nosedive since last October and is now suspended at the request of the company.

Fellow payments processor Citadel has also announced its official and equally abrupt exit from the US market.

The (for some sudden and surprising) move by Neteller came two days after founders and former directors Stephen Lawrence and John Lefebvre were detained by US authorities and charged with money laundering related to online gambling.

Reuters quoted a Neteller statement as commenting: "Today’s withdrawal from the US market by Neteller is the culmination of months of careful planning.

"Along with this action, the group is actively assessing what further steps it may take in light of the two arrests made earlier this week to clarify the company’s position in this matter.

"These decisions will allow the group to focus on opportunities available in the growing markets of Europe, Asia and the Americas outside of the United States."

The company added that all US customer funds were held in segregated accounts and were fully secure and are “available for withdrawal by customers on demand”.

In its statement today, Neteller said the group had experienced slowing fourth quarter growth in terms of receipts and new customer sign-ups. It said it would continue with its focus on geographic diversification through further product launches in Europe and Asia.

The statement added that US customers made up 76 percent of its active customers in the fourth quarter. Of new sign-ups over the period, 74 percent were from North America.

Average daily receipts for the fourth quarter stood at US$5.75 million. Average daily new customer sign-ups were 3 493. Revenue for the full year was expected to fall between US$255 million and US$260 million. The loss of the US market could mean an overall dip in revenues of 65 percent or more.

Neteller spokesmen revealed that the company has already taken steps to develop country blocking software.

The Citadel news came in a statement by parent Canadian company ESI Entertainment, which said the move came “...in light of recent US Department of Justice enforcement actions against financial processor executives”.

US customers contacting Neteller support for withdrawal information were advised to take out a Neteller card for use in ATMs - not a popular option due to the heavy charges the processor levies. Alternatives are the EFT and check withdrawal options. However, due to the anticipated backlog there will be a 2 week delay for EFTs and 6 week delay for checks, players were told.

The delays in activating these options caused several players to remark that for a crisis which had been forseen this did not indicate very good organisation and planning.

U.S. prosecutors, using mainly the companys own transparent information as a public company, claimed that Neteller processed more than $7.3 billion in transactions in 2005 and more than 95 percent of its revenue from transfers involved Internet gambling.

From the point of view of vulnerability to arrest by US officials, most online gaming executives and founders have shunned traveling to or through the United States since the arrest of Bet on Sports' David Carruthers and the later detention of Sportingbet's chairman Peter Dicks last year.

However Neteller's Lawrence and Lefebvre, who together founded the company in 1999, apparently did not heed the warnings of other executives.

[misty113]

"Additionally, in July 2003, one of Neteller's competitors, PayPal, and its parent eBay, entered into a civil settlement agreement with the United States Attorney's Office for the Eastern District of Missouri to settle allegations it aided in illegal offshore and on-line gambling activities. As part of the agreement, PayPal agreed to forfeit $10 million, representing proceeds derived by PayPal from the processing of illegal gambling transactions."


I, have only done business with NETeller for online wagering. But, would have to assume that when PayPal left the market. The same sort of 'end of the world' threads were going on then in these forums, in 2000.

As a matter of fact, I originally opened my PayPal account, to fund an old Paradise Poker (the biggest room at the time) account, and found out Paradise no longer accepted PayPal. Wow, I still have the records for the account, but have still never used PayPal.
Maybe, I do have an online gambling problem, Thanks, Mr. Frist.

PayPal left when Ebay took them over. Rumors have it PayPal was mismanaged and those within that organization pissed off some Government people and that was the start of their demise. Ebay buying out PayPal was way before (several yrs.) the online gambling act was passed. Ebay was on a power trip back then and instead of setting up their own pay system at that time and seeing PayPal was the main payment company used by their bidders, they decided to corner the market and put all the eggs in their basket under their control.

I think the Dem's need to revisit the Port Security Act and pull that gambling act out of there and kill it as it had no place being in there in the first (Frist) place!!!!
He threw that in there because he promised his buddies who paid him well to get the gambling act passed and knew it stood little to no chance passing on its own merit so he slid it in the Port Security Act knowing full well that act would pass hands down. Just one of many of the slick dirty deeds done by this Repuk'in Congress we had at the time.

[REOdeathwagon]

I think the Dem's need to revisit the Port Security Act and pull that gambling act out of there and kill it as it had no place being in there in the first (Frist) place!!!!

I agree that it had no place being in there, 100%.
Would be nice if they would kill it, but they won't. The republican media would distort the change as being 'light on terrorism'.


He threw that in there because he promised his buddies who paid him well to get the gambling act passed and knew it stood little to no chance passing on its own merit so he slid it in the Port Security Act knowing full well that act would pass hands down.

This safe ports act would not have been passed with the UIGEA provision in it, if this industry would have thrown a little money around themselves.
Instead, they got greedy, and now, they are on the outside looking in.
Now they are using that money instead, to pay for lawyers, to analyse the extradition treaties their governments have with the USA.

It was no secret that Frist, Leach, and Kyle, had a hard on for online gambling. It was also no secret that each of them were in the toughest races of their senatorial careers.
Each of the aforementioned candidates would have gladly accepted campaign contributions from online interests, and simply looked the other way.
Frist(?) and Leach, lost their races. And Kyle won by slimmest of margins.


Just one of many of the slick dirty deeds done by this Repuk'in Congress we had at the time.

I have been a lifelong Repuk'in hater. But the Dems, all signed this bill as well.

[jsp377]

And Kyle won by slimmest of margins.

Don't kid yourself. Kyl won by, what, eight percentage points? It was a miracle in itself that number was in single digits.

I have been a lifelong Repuk'in hater. But the Dems, all signed this bill as well.

Are you really supporting the view that a domestic security bill ought to have been vetoed because an amendment that the vast majority of Americans don't care about has been attached?

[lots0]

Are you really supporting the view that a domestic security bill ought to have been vetoed because an amendment that the vast majority of Americans don't care about has been attached?

YES!

A port security bill that does not secure our ports and an attack on our civil rights... You bet this whole damned thing should be thrown out.

FYI - The ONLY Reason people didn't care about this issue is because they didn't know about it...

When the US government secures its southern border so Terrorests can't just walk accross the border anywhere they want... I'll believe they are trying to secure our ports... Until then this is all this 'securing' the Homeland talk is pure bullshit and just another way to strip our Rights away.

[REOdeathwagon]

Don't kid yourself. Kyl won by, what, eight percentage points? It was a miracle in itself that number was in single digits.




Are you really supporting the view that a domestic security bill ought to have been vetoed because an amendment that the vast majority of Americans don't care about has been attached?

Kyle represents the senate district that I have lived in my entire life. This district is a hugely conservitive(sp?) district, always has been, always will be. That an unknown Democrat can come in and take on an incumbent Republican senator in this district, and only lose by 8%, is huge.
If Kyle didn't lose in the last election cycle, he never will, IMO. He will now retire from that office, whenever he chooses.
Unless, he gets caught with a 'live boy', or a 'dead girl'.


I support the view that the whole of 'safe ports act' was just another case of bad legislation. Based on 'terrorism and immigration' hyperbole.
I certainly don't feel any safer since it's passing.

[REOdeathwagon]

The revelation immediately begs the question: "If this move has been in process for so long, why weren't players notified in advance and given a window of opportunity to clear their accounts instead of the current scramble?" Investors may be asking the same question as they face a share that has already endured a 60 percent nosedive since last October and is now suspended at the request of the company.

To their credit Party Poker, was the only company that notified me in advance, of their decision to leave the US market. IIRC. ( I cannot beleive i just gave Party credit for anything, besides poor customer no service)

In NETellers defense, US customers did have advance notice. The passing of the UIGEA.