More Neteller delays

[jetset]

ANOTHER HIATUS IN NETELLER SAGA

US Attorney's office still undecided on whether to indict Isle of Man e-wallet founders.

If readers thought that the February 14 court date set in the case against Canadian Neteller founders Stephen Lawrence and John Lefebvre would produce new information they were disappointed. As USA Today reported, the waiting game for thousands of U.S. patrons with money tied up in the Isle of Man based online payment service currently under federal investigation just got longer.

The U.S. Attorney's Office for the Southern District of New York extended the deadline until March 16 to decide whether to indict the co-founders of Neteller, an Internet money-transfer service popular among gamblers. Stephen Lawrence and John Lefebvre were arrested in January on a charge of conspiracy to transfer funds with the intent to promote illegal gambling

For U.S. customers of the site, it was another delay in their efforts to retrieve their money, which remains in Neteller segregated accounts until the legal issues are resolved.

Neteller says U.S. authorities have frozen access to about $55 million in U.S.-based accounts.

"As a result of the restrictions placed by third parties, court-ordered seizures and related legal concerns, (Neteller) is unable to make payments to U.S. customers," says a posting on the company's website.

FBI agent Neil Donovan has said funds are being held in court as potential evidence. He did not provide a timetable on when customers may get their money back.

[jetset]

Adding a little more information to the above material:

The case against Neteller founders John Lefebvre and Steven Lawrence has been delayed.

Though a date was set for 14 February for a preliminary hearing, and the clerk of the federal courthouse at Pearl Street New York confirmed the defendant’s names were on the schedule, a judge has yet to be assigned.

Yusill Scribner, spokesperson for the Southern District of New York District Attorney, told eGaming Review that by close of business yesterday [Wednesday 14 Feb.] the government had either to have returned an indictment, set a date for a preliminary hearing, or asked for more time, and that a delay of at least 30 days was anticipated.

A new deadline for an indictment to be filed has now been extended to March 16.

[Tester]

When the prosecutors are delaying the hearing, it may indicate that there is some chance for the case to end up with a compromise.

But things do change in those kind of negotiations pretty quickly.

[jetset]

NETELLER CUTS MORE JOBS

Canadian and UK employees axed

Neteller plc continues to feel the consequences of US legislative and enforcer activities this week, and has announced that it plans to cut 250 jobs as part of its withdrawal from the US market.

The Isle of Man based e-wallet firm said 220 jobs will go at its operations in Calgary, Canada, and a further 30 will be lost in the UK. The job cuts will reduce Neteller's total workforce to 425, substantially down from a peak of 1 000 last year.

Neteller, whose main customers are online gambling firms, decided to pull out of the American market after US enforcers arrested Canadian company founders Stephen Lawrence and John Lefebvre recently, despite the duo having earlier relinquished all executive responsibilities in the company.

Neteller added that its shares, traded on the London Stock Exchange's junior AIM market, will remain suspended "in view of the continuing uncertainty."

The group reiterated that it expects to take a restructuring charge of US$1.1 million in 2006, rising to US$3.7 million this year.

[Tester]

Neteller's press release.
They say they will update as as soon as something changes.

Press Release
NETELLER Group Rationalisation Programme Substantially Complete


16 February 2007 - NETELLER Plc (LSE: NLR), the leading global independent online money transfer business, today issued the following update from its Board of Directors with regard to its principal operations in Calgary, Canada and the UK.

As a result of the Group’s voluntary withdrawal from the US market, the Group has substantially completed the necessary reorganisation and restructuring of its operations to reduce its headcount and align related costs with anticipated revenues of its worldwide business.

This rationalisation programme has focused on the Group’s Calgary-based operations where the principal teams serving the US market were employed. As previously highlighted, transfer volumes and customer enquiries through the Group’s contact centres have decreased substantially since the Group ceased processing transfers for US residents. Staff reductions will total around 220 employees, across all levels, from the Group’s contact centre and security teams, as well as related support functions in marketing, processing and IT/product support. Approximately half of the reductions were through the Group’s voluntary redundancy programme.

In addition, as part of the rationalisation of the Group’s UK facilities, it is expected that around a further 30 redundancies will arise from the relocation of the Group’s Gatwick-based operations to Cambridge where they will share premises with the Group’s NetBanx business. This move is expected to be completed by the end of March 2007.

Following these staff reductions, the Group will employ approximately 425 staff across its European, Americas and Asia Pacific operations, down from a peak of over 1,000 during 2006. A further part of the Group’s rationalisation programme will include a review of the Group’s property requirements and may include a sale or partial lease of certain of the Group’s Calgary-located facilities. As stated in our trading update of 18 January 2007, the total cash costs associated with staff restructuring are expected to be in the region of US$ 1.1 million in 2006 and a further US$ 3.7 million in 2007.

Ron Martin, Group President and CEO said: “The events of the past months have led to challenging times for the Group and the Board has taken these measures to ensure the Group has a sustainable business going forward. We would like to thank all of our employees who have contributed to the growth of the NETELLER business over the past few years, and for those who have left or will be leaving the Group, we wish you well for the future. The Board believes NETELLER continues to have a strong future ahead and presents many exciting opportunities for its employees.”

The Group’s shares will continue to be suspended from trading on AIM for the time being in view of the continuing uncertainty. Further announcements will be made as appropriate.

from here
http://www.neteller-group.com/press/en/125.htm

[rhump]

As a result of the Group’s voluntary withdrawal from the US market

[jetset]

Press release dated today (16 February).

It looks as if there will be some property asset reductions in Calgary, too which is logical following the halving of staff.

It really is a pity to see a thriving company knocked about like this - all for politics and commercial protectionism.

[EasyRhino]

To be honest, I feel more sorry for my funds still tied up in neteller, since any delay in the trial of the cofounders could theoretically delay them even further.

It's hard to feel too much emotion for a publicly traded ewallet company, when it comes right down to it.

[jetset]

Still, you have to feel some sympathy for 400 - 500 folks who have been shown the door in Calgary and to a lesser extent the UK...joining those axed in locations as disparate as Costa Rica, Gibraltar and India as a result of this DoJ assault on global online gambling.

[pokerpal]

Yah, I suppose they were at the top of the game for years before all this legislation crap started happening. From most trusted to this, with all the delays for US oriented transactions, who would of thought one gov't could be so powerful.