FBI holds some of netellers money

[tencardcharlie]

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Sorry if this has been posted before, or if it's in the wrong forum. So many threads concerning the ban...

This part of the article worried me.

Neteller declined to comment. The company processed more than $7 billion in online gambling transactions in its 2005 fiscal year. FBI Agent Neil Donovan says funds from Neteller are being held in court as potential evidence. Some customers may get their money back, but he did not provide a timetable.

 

[Reef]

this may or may not be related

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[vinylweatherman]

Lying

So, when Neteller kept claiming it would just take longer than usual they were lying all along, which might explain why they always added that the money was 100% safe in trust accounts even though that was not related to the query on how long it would take to get the money out.

The articles suggest that money from Betonsports is what could be held for years, and the rest of the money is, well, held for an indeterminate time because no US bank will now touch Neteller.

Odd that Neteller are squashing player's "self help" solutions though, they are happy to turn a blind eye to $5000 disappearing from a Neteller account to a merchant, but are proactive in stopping Peer to Peer methods of getting the money out for stuck US players.
There could be a way round this, the peer to peer transfer must relate to the purchase of goods or services from the other member, rather than just giving them the money to send back - Neteller will have no legal argument for stopping this if the goods and services are indeed real, and supplied as promised, and are legal in the US - designer T-Shirts, for example, at $99.99+shipping.

 

[bdangel]

I think everyone should demand interest on those funds that are held. After all if they sitting in a bank acct somewhere...staying safe they must be collecting interest....JMHO

 

[lots0]

I don't care about the money, I figgured it was gone the day Neteller refused to send it to me.

What I care about is the DOJ going thru my neteller account records.

Neteller sucks! I hope the two SOB's from neteller they arrested rot in jail.

Those two guys turned over just like some cracked out snitch from a bad 80's Police TV show...

Better yet, I hope both the little neteller weasles get prison cell mates that are 300lb Gay's, that won't take no for an answer...

 

[frankensite]

Listen...Neteller is at the moment in a state where if every client toke out its money they would go broke, just like a bank would do in the rest of the world if 90% of the clients left and requsted there money.

 

[silkprint]

Well Netellers clients didn't just leave ...they were thrown out . They should have had a plan in place ..no matter what ..to give their clients their own money back .

 

[zaphod42]

Listen...Neteller is at the moment in a state where if every client toke out its money they would go broke, just like a bank would do in the rest of the world if 90% of the clients left and requsted there money.

Actually, that is mostly only U.S. banks you are talking about. The United States has some of the LEAST safe banks in the world, and this is primarily because the U.S. government allows them to keep only 10% of depositors money on hand at any time. In other words, for every $100 you deposit, the bank immediately loans out $90 of it to someone else and keeps $10 on deposit.

In the rest of the world, real, safe banks are self insured, meaning that for every dollar on deposit they keep a dollar on hand in cash. So if every single depositor closed their account and requested 100% of the funds, the bank would be able to honor ALL their requests.

 

[Peaceful1]

Listen...Neteller is at the moment in a state where if every client toke out its money they would go broke, just like a bank would do in the rest of the world if 90% of the clients left and requsted there money.

The difference with a bank is that the funds are FDIC insured in the event such a thing would happen...what plan did Neteller have in place? None, evidently.

 

[soflat]

The difference with a bank is that the funds are FDIC insured in the event such a thing would happen...what plan did Neteller have in place? None, evidently.

Yeah, what's the deal with these 'trust funds' foreign banks apparently have? Apparently the money is safe and sound somewhere, but it's just not available for the person who deposited it??

If they really had the money, they could have let US acct holders withdraw because they had been doing it for years already (even after the UIGEA was signed, it's not like continuing to honor withdrawal requests would have led to further indictments is it?).

 

[REOdeathwagon]

Neteller is besieged with requests from frustrated bettors who want to recoup billions in deposits and winnings. The money is being held in trust accounts while the company holds conversations with the Justice Department about the status of its executives and other board members.From the Washington Post

"The truth is that the money is in limbo and the companies are not required to refund any money until a successful prosecution or settlement takes place," says Michael Tew, principal of gaming consultant CapitalHQ. "This could take years."From USA Today

FBI Agent Neil Donovan says funds from Neteller are being held in court as potential evidence. Some customers may get their money back, but he did not provide a timetable.From USA Today

It has been stated elsewhere that the DOJ has NETeller internal records. If so, the DOJ has the US bank accounts the money came from originally. NETeller records of the money being transferred "to and from" offshore gambling sites. Where NETeller "aided and abetted" the funding of online gambling accounts by US citizens. And now the DOJ has possession of the money (potential evidence).

After the NETeller case is adjudicated. US player funds will be seized by the DOJ. The money being used originally, for "criminal activity." (online gambling). And now the money can be used to fund the growing DOJ Online Gambling Enforcement Unit?

For NETellers US account holders to get their funds back the burden of proof will be solely on them to prove that the funds were not used for 'criminal activity.'

Ask yourself, why would the DOJ give money back to people they consider criminals?

 

[REOdeathwagon]

The Guardian Feb. 6, 2007

Tuesday February 6, 2007

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FBI freezes funds of 'virtual wallet' web payment firm

The FBI claim JSL Systems, a US-based payment company owned by Mr Lefebvre, received customer funds in the US for Neteller and then transferred them to accounts held by a Neteller company in Canada. Last month Neteller told the Guardian that wagered money no longer passed through JSL.

It is unclear whether the FBI will treat some or all of the funds as proceeds of illegal gambling. One US newspaper report cited Neil Donovan, an FBI agent, saying the funds were being held in court as potential evidence. Some money may be returned to Neteller customers but no timescale was forthcoming, the report said. A spokeswoman for the Department of Justice last night refused to confirm details in the report, as did Neteller. - Simon Bowers

Nothing really new here that hasn't been said before.... Anyway...

 

[Mousey]

The FBI has frozen funds held in customer accounts at Neteller, the "virtual wallet" payment processor, as part of its case against the firm's two Canadian founders who were last month arrested and charged with racketeering and money laundering.
Neteller refused to disclose how much had been frozen but company filings make clear huge sums were flowing between its US customers' "e-wallets" and online merchants - particularly gambling websites - up until the firm was pressured to close its American operations in the wake of last month's arrests

(link for the article:

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)

How? How has the FBI frozen US account holders funds? I just do not understand how the US DoJ can intimidate and control a licensed, regulated, legitimate company operating on foreign soil. If NETeller is simply complying with a request from the DoJ to hold all US funds, that's one thing. But for the DoJ to storm in and 'freeze' US funds...

I just don't get it.

 

[pokerpal]

Now I read on the internet that the words "links terrorism" is being thrown into the mix. I am very surprised CNN and CNBC hasn't taken a bigger inquisitive role in this. Chances are it would be compiled mostly of political rhetoric. Perhaps it is best that they don't as Governments can't put their spin on things the way they used to because of the existence of blogs and forums which seems to expose truths, as these are mediums that big business does not have a handle on. Sorry to add all that, but I was just thinking out loud.