Founders of Neteller Arrested!

winbig

Keep winning this amount.
Joined
Mar 10, 2005
Location
Pennsylvania
Then there is Louisiana State, which seems more concerned with going after online gambling company operators than cleaning up the mess left by Hurricane Katrina.

If it wasn't so true, it'd be funny :mad:
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Nothing in the news or investor sections at Neteller, but they will only be opening for business in the Isle of Man in another couple hours (their time now is GMT 6AM)

Hopefully there will be some sort of statement on this at that time.
 

wangpoker

Full Member
webmeister
PABnononaccred2
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Ontario/Canada
I am speculating about the fates of pokerstars, full tilt poker, betus...
If pokerstars closes its door to USA, partypoker will be the biggest poker room again.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Neteller statement

Neteller have issued a statement, and Reuters have reported that shares are suspended at request of the company:


STATEMENT REGARDING FORMER DIRECTORS

NETELLER Plc, the leading independent online money transfer business, today issued the following statement regarding the speculation surrounding two of its former directors and founder shareholders, Mr Stephen Lawrence and Mr John Lefebvre.

While travelling separately in the US, Mr Lawrence and Mr Lefebvre, both former directors of the Company, were detained by US authorities on Monday, 15 January 2007.

Other than as shareholders, neither Mr Lawrence nor Mr Lefebvre has any current position with or connection to NETELLER.

The Group has not received any communication or correspondence from any US authority regarding this or any related matter.

Pending clarification of the situation the Board has sought immediate temporary suspension of NETELLER's shares.

Further information will be issued in due course.

Enquiries:
NETELLER
Andrew Gilchrist, VP - Communications + 44 (0) 1293 555 726

Citigate Dewe Rogerson + 44 (0) 207 638 9571
Sarah Gestetner/Sebastian Hoyle/George Cazenove

Further information

Mr Lawrence resigned as a non-executive director of the Company on 13 October 2006 having stepped down as non-executive chairman of the Company on 11 May 2006. Mr Lefebvre resigned as a non-executive director of the Company on 15 December 2005.


Mr Lawrence is the majority beneficial owner of Corvina International Ltd. which holds a total of 7,085,541 ordinary shares representing approximately 5.91% of the issued share capital of the Company. Mr Lefebvre is the beneficial owner of Eagle Medallion Fortress Investment Corporation which holds a total of 6,638,094 ordinary shares representing approximately 5.54% of the issued share capital of the Company.

Notes to Editors

The NETELLER Group
With over 3 million customers in 160 countries, 3,500 merchants, and over
$7 billion in annual transactions, the NETELLER Group operates the largest
independent online money transfer business in the world. The Group specializes in providing innovative and instant payment services where money transfer is difficult or risky due to identity, trust, currency exchange, or distance.

Being independent has allowed the Group to support thousands of retailers
and merchants in many geographies and across multiple industries.

The Group is quoted on the London Stock Exchange's AIM market, with a ticker symbol of NLR. NETELLER UK Limited is authorised by the Financial Services Authority (FSA) to operate as a regulated e-money issuer. For more information about the Group visit www.netellergroup.com.
 

Chatmaster

Dormant account
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Location
South Africa
:eek2:

What grounds could the US have to arrest them.

First of all they are just shareholders.
Second of all what do they arrest them for?

Call me thick but the US is getting weirder and weirder by the day!
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
I guess it's dangerous to speculate before all the facts are available, but right now this has the feel of a deliberately intimidatory move by US enforcement officials.

On the positive side, these two guys have the money (and in at least one case the grit) to bring in top legal eagles, so enforcement officials will be taking care to get their procedures and powers right for fear of a major lawsuit being launched against them.

I'm waiting to see what the official US statement has to say.
 

REOdeathwagon

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Location
arizona
I guess it's dangerous to speculate before all the facts are available, but right now this has the feel of a deliberately intimidatory move by US enforcement officials.

That is exactly the way i have intepreted this action also. Seeing how they no longer have an official capacity at the company.

In the Pinnacle press release last week they seemed to also mention this intimidation or fear of the US government. Very scary.


REOdeathwagon
 

dominique

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Location
The Boonies
Peter Dicks, board of directors at sportingbet, arrested just before G2E and CAC, some of the largest industry gatherings. Charged among other things with "promoting gambling", installing fear and putting a crimp into the conferences. Peter is released during the events with no charges pending.

2 Neteller founders, arrested just before ICE and CAPeuro, some of the largest industry gatherings. Charged with nothing so far......

'Tis a chilly wind that blows.....
 

REOdeathwagon

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By Miyoung Kim
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LONDON (Reuters) - U.S. authorities detained two former directors and founding shareholders of NETeller Plc, the UK online money transfer firm said on Tuesday, adding it had requested the suspension of trading in its shares.
ADVERTISEMENT

Stephen Lawrence and John Lefebvre were detained on Monday while traveling separately in the United States, NETeller said, becoming the latest victims of the U.S. crackdown on Internet gaming.

It said neither Lawrence nor Lefebvre had any current connection to the company other than as shareholders.

"The group has not received any communication or correspondence from any U.S. authority regarding this or any related matter," it said. "Pending clarification of the situation the board has sought immediate temporary suspension of NETeller's shares."

Shares in the Isle of Man-based company, which has grown fast with the rapid rise in online gambling, closed at 176 pence on Monday, valuing it at around 211 million pounds ($415.4 million).

The shares have fallen 60 percent since early September, hit by the arrests in the United States of executives from British companies involved in online sports betting and the passage in October of a U.S. law barring banks from transactions involving Internet gambling.

The passage of the U.S. law has led most operators to withdraw from the U.S. Internet gaming market.

"Today's news will obviously dent sector sentiment, however given that NETeller was the only company continuing to transact in the United States we think that any selloff in Playtech or 888.com shares could offer an excellent buying opportunity," Numis Securities said in a note.

Shares in online gaming group 888 Plc dropped 2.9 percent to 125 pence by 1015 GMT and gambling software maker Playtech were down 0.7 percent to 277p.

Lawrence resigned as a non-executive director of NETeller in October 2006, having stepped down as non-executive chairman in May, while Lefebvre resigned as a non-executive director in December 2005.

Lawrence holds a 5.91 percent stake of NETeller through his vehicle Corvina, while Lefebvre holds 5.54 percent of the company via Eagle Medallion Fortress.


REOdeathwagon
 

Chatmaster

Dormant account
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Location
South Africa
but right now this has the feel of a deliberately intimidatory move by US enforcement officials.

I believe you and dominique are spot on. I have to add though that I can't help but to think there is more at play here... Going through this much trouble to enforce a law on people that are not directly involved in Neteller anymore? One thing I hope is that this actually results into a lawsuit of some sorts as that will challenge a law that imo is very weak especially in the US courts.

I am sure we all get angry at the deliberate attack on the freedom of the US citizens, but I feel the back of my head go cold every time I hear stuff like this!
 

dominique

Dormant account
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Location
The Boonies
"chilling" is a tactic employed when there is no actual way to enforce something except by creating an athmosphere of fear.

I doubt there will be a trial.

The "chilling" of the industry has worked like a charm for the US so far.

Of course I have been wrong with these things before and there is much we don't know about the two arrested folks...
 

REOdeathwagon

Registered
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From the Jan 12th, EOG interview with Pinnacles 'main man'.

He started to reflect at this point:

"When the U.S. focuses on something and says 'enough,' and when they go to 'war,' no individual company can possibly win in a fight of this nature."

"Since the Internet Gambling Bill went into effect, we have lost the ability to do business with many quality banks."

"Fortunately, 35-40% of our current gambling business is non US driven, and perhaps more importantly, we are experiencing stronger growth in Europe and Asia, than we are in the United States."

"So why live in fear?"


The threat of US DOJ intimidation seemed to be successful in this case.


REOdeathwagon
 

soflat

Experienced Member
Joined
Oct 3, 2005
Location
Florida
Holy cow. That is the end for me gambling if Neteller has to pull out.

The two individuals might not be involved with Neteller now, but that would not excuse them in any way for whatever charges are being cooked up.

Things are moving fast now and they are going after the big players. Last week it was Pinnacle and now Neteller.

I fear for my money and privacy.
 

Pinababy69

RIP Lisa
Joined
Oct 15, 2004
Location
Toronto, Ontario - Canada
Money Laundering? Unbelievable!!

Jan. 16, 2007, 1:08PM

Neteller Execs Charged in Gambling Case


By LARRY NEUMEISTER Associated Press Writer
2007 The Associated Press

NEW YORK Two founders of a company which processes Internet gambling transactions were arrested and charged with laundering billions of dollars in gambling proceeds, federal prosecutors announced Tuesday.

The charges against the former Neteller PLC directors, John David Lefebvre, 55, and Stephen Eric Lawrence, 46, both Canadian citizens, were contained in two criminal complaints unsealed in U.S. District Court in Manhattan on Monday, U.S. Attorney Michael Garcia said in a statement.

The prosecutor said the men knew when they took their company public that its activities were illegal.

"Blatant violations of U.S. law are not a mere `risk' to be disclosed to prospective investors," Garcia said. "Criminal prosecutions related to online gambling will be pursued even in cases where assets and defendants are positioned outside of the United States."

FBI Assistant Director Mark J. Mershon said the multibillion-dollar online gambling industry was "a colossal criminal enterprise masquerading as legitimate business."

Lefebvre and Lawrence were charged in connection with the creation and operation of an Internet payment services company that facilitated the transfer to billions of dollars of illegal gambling proceeds from U.S. citizens to the owners of overseas Internet gambling companies.

Lefebvre was arrested Monday in Malibu, Calif and was scheduled to appear in U.S. District Court in Los Angeles Tuesday. Lawrence, who resides in Paradise Island, Bahamas, was arrested Monday in the U.S. Virgin Islands and will appear in federal court on Wednesday.

In 1999, the men founded Neteller, which is based in the Isle of Man and is publically traded in the United Kingdom.

The company began processing Internet gambling transactions in approximately July 2000, allowing companies to transfer money from U.S. customers to bank accounts overseas.

Prosecutors cited Neteller's 2005 annual report in saying that Lawrence and Lefebvre enabled the company to provide payment services to more than 80 percent of worldwide gaming merchants.

Lawrence left the company's board of directors in October while Lefebvre left in December 2005, prosecutors said. Together, the men owned as much as 35 percent of the company's outstanding shares.

Garcia noted that the company acknowledged when it went public that U.S. law prohibited people from promoting certain forms of gambling, including Internet gambling and transmmitting funds that are known to have been derived from criminal activity.

Lefebvre and Lawrence also conceded in the company's offering documents that they were risking prosecution by the U.S. government, he said.

Prosecutors said Neteller in 2005 alone processed more than $7.3 billion in financial transactions, 95 percent of which was derived from money transfers involving Internet gambling.

Lawrence and Lefebvre, both charged with conspiring to transfer funds with the intent to promote illegal gambling, could face a maximum of 20 years in prison if convicted.
 

soflat

Experienced Member
Joined
Oct 3, 2005
Location
Florida
FBI Assistant Director Mark J. Mershon said the multibillion-dollar online gambling industry was "a colossal criminal enterprise masquerading as legitimate business."

OMG. This really is the end isn't it?

I'm assuming they cannot seize funds or records, and that no one from Neteller will be stupid enough to visit the US or its territories again. But still, if Neteller can get taken down then there is no safe way to fund gaming for Americans.
 

vinylweatherman

You type well loads
Joined
Oct 14, 2004
Location
United Kingdom
Casino Thread

Looks like the pull out has begun in earnest. A poster has just complained that Neteller has pulled the plug on Instacash for all US players. Sadly, they didn't announce this, and US players are simply finding they get errors when trying to deposit, with the usual mess of unhelpful tips on how to resolve the issue.
It is not much more of a step for Neteller to do what athe casino operators have done in such a situation. Close US accounts, and tell players after the fact, when they start complaining they can't log on.
Given the actual charges in the case, ALL transactions involving US players and Neteller are being treated as "money laundering", and for Neteller to continue to allow this while no verdict has been reached would be dangerous for a listed company in case the verdict is "guilty".
US players should consider whether they wish to persevere with gaming, or request a withdrawal of the contents of their Neteller accounts while they still can. When other operators closed US accounts, it seems they implemented an unnecessarily long wait for US players to receive back their balances.
These actions are certainly having the desired effect. Even if these cases collapse, many US players will have been scared away, and so will many operators.
I can't see much prospect of the current case getting anywhere, as they seem to base the charges on the premise that gaming online has been illegal all along, which has not been the case except in 11 states.
Neteller's big mistake has been in concentrating on the gambling industry, and even refusing merchant accounts for requests coming from non-gambling retailers. Had Neteller serviced any market, but "just happened" to have a big hold on gaming, this charge could have been seen off by stating that their activities fall under the "safe ports" provisions, and they still have time to formulate a means of identifying the gaming transactions within the business, and blocking those involving US players. As far as the DoJ are concerned, Neteller is for gambling transactions, and nothing else, so coming up with the charges was made easier.
 

Professor

Dormant account
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Oct 28, 2004
Location
DontArrestMe USA
Don't assume that Neteller can't be touched or its executives can't be arrested outside of the US.

If you think the UK wont extradite then take a read here:

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The charges being leveled by the US are very serious and I would imagine that UK authorities will cooperate in seizing data or financial records if asked to do so.

The DOJ can also subpeona major US banks and financial institutions to report all transactions involving Neteller as they are tagging these as "money laundering" violations and subject to RICO and Patriot Act investigations.
These include transactions prior to Oct 13th 2006.

:eek2:
 

REOdeathwagon

Registered
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Location
arizona
A copy of the complaint:

Neteller Lawrence Complaint: United States of America v. Stephen Eric Lawrence
16 January 2007

Approved: ______________________________
CHRISTOPHER P. CONNIFF
TIMOTHY J. TREANOR
Assistant United States Attorneys
Before: HONORABLE DEBRA C. FREEMAN
United States Magistrate Judge
Southern District of New York

- - - - - - - - - - - - - - - - - - - -
UNITED STATES OF AMERICA -v- STEPHEN ERIC LAWRENCE, Defendant.
Sealed Complaint
Violation of 18 U.S.C. 1956
COUNTY OF OFFENSE:
NEW YORK/WESTCHESTER
- - - - - - - - - - - - - - - - - - - - x
SOUTHERN DISTRICT OF NEW YORK, ss.:
Maryann Goldman, being duly sworn, deposes and says that she is a Special Agent
with the Federal Bureau of Investigation and charges as follows:
COUNT ONE
1. From in or about June 1999, up to and including in or about January 2007, in
the Southern District of New York and elsewhere, STEPHEN ERIC LAWRENCE, the
defendant, and others known and unknown, unlawfully, wilfully and knowingly did
combine, conspire, confederate, and agree together and with each other to
violate Section 1956(a)(2)(A) of Title 18, United States Code. 2. It was a part
and an object of the conspiracy that STEPHEN ERIC LAWRENCE, the defendant, and
others known and unknown, would and did transport, transmit, and transfer
monetary instruments and funds from a place in the United States to and through
a place outside the United States and to a place in the United States from and
through a place outside the United States with the intent to promote the
carrying on of specified unlawful activity, to wit, the operation of illegal
gambling businesses in violation of Title 18, United States Code, Section 1955,
the illegal transmission of wagers and gambling information, in violation of
Title 18, United States Code, Section 1084, and the commission of gambling
offenses in violation of both New York State Penal Law, Article 225, and
anti-gambling statutes in other states.
OVERT ACTS
3. In furtherance of said conspiracy and to effect the illegal object thereof,
STEPHEN ERIC LAWRENCE, the defendant, and others known and unknown, committed
the following overt acts, among others, in the Southern District of New York and
elsewhere:
a. In or about 1999, LAWRENCE and a co-conspirator ("CC#1") founded a group of
businesses (the "Neteller Group") to provide online payment services to internet
gambling businesses. b. Beginning in or about July 2000, and continuing up to in
or about December 2003, LAWRENCE, CC#1, and others affiliated with the Neteller
Group offered online payment services through Neteller Inc., a Canadian
corporation, to various internet gambling businesses so that these businesses
could illegally access customers in the United States, including customers in
and around New York City.
c. Beginning in or about January 2004, and continuing up to in or about January
2007, LAWRENCE, CC#1, and others affiliated with the Neteller Group offered
online payment services through Neteller PLC, a corporation based in the Isle of
Man, to various internet gambling businesses so that these businesses could
illegally access customers in the United States, including in and around New
York City.
d. On or about April 14, 2004, LAWRENCE, CC#1, and others affiliated with the
Neteller Group raised approximately $70 million through an initial public
offering of shares in Neteller PLC on the Alternative Investment Market ("AIM")
of the London Stock Exchange ("LSE") in order to, among other things, expand
their online payment business. (Title 18, United States Code, Sections 1956(h).)
The bases for deponent's knowledge and for the foregoing charge are, in part, as
follows:
4. Since in or about June 2006, the Federal Bureau of Investigation ("FBI") has
been conducting an investigation of Neteller PLC, a company that is based in
Isle of Man and is publicly-traded in the United Kingdom. The investigation has
revealed that Neteller PLC conducts and facilitates illegal financial
transactions between gambling customers in the United States and numerous
offshore online gambling businesses.
5. I have been personally involved in the investigation of this matter. This
complaint is based upon my involvement in the investigation, my conversations
with other law enforcement officials and witnesses, and my examination of
reports, records, and tapes. Because this complaint is being submitted for the
limited purpose of establishing probable cause, it does not include all the
facts that I have learned during the course of this investigation. Where the
contents of documents and the actions, statements, and conversations of others
are reported herein, they are reported in substance and in part, except where
otherwise indicated.
6. I have reviewed various business records of Neteller PLC. These records
describe, among other things, the history and development of the Neteller Group
and the services that it provides. For example, in the prospectus from Neteller
PLC's initial public offering on the AIM (the "Neteller IPO Prospectus"), the
Board of Directors of Neteller PLC, including STEPHEN ERIC LAWRENCE, the
defendant, collectively states that Neteller Inc., a Canadian corporation, was
founded in 1999 by LAWRENCE and CC#1; that on January 1, 2004, the Neteller
Group began doing business as Neteller PLC, a corporation based in Isle of Man;
that Neteller PLC specializes in providing online payment processing services to
online merchants and customers; that Neteller PLC, and previously Neteller Inc.,
offers services through Neteller.com; that the primary service provided by
Neteller PLC, and previously by Neteller Inc., is a "virtual wallet" account
that enables customers to deposit, withdraw, or transfer funds with any merchant
that supports the Neteller online payments system; that Neteller PLC generates
its revenues on a fee-for-service basis for any transfer of money between any
combination of members or merchants; and that Neteller Inc. began processing
transactions in July 2000.
7. I have reviewed various business records of Neteller PLC that provide
information regarding the scope of the online payment services provided by
Neteller PLC, including the following:
a. In the Neteller IPO Prospectus, the Board of Directors of Neteller PLC,
including STEPHEN ERIC LAWRENCE, the defendant, collectively states that more
than 95 percent of the revenues generated by the Neteller Group, is derived from
processing money transfers pertaining to the online gambling market; and that on
or about March 1, 2004, Neteller PLC had 685,945 member accounts, of which
approximately 88 percent belonged to North American residents.
b. Neteller PLC's 2004 annual report states that, in 2004, Neteller PLC
processed $3.4 billion in financial transactions; and Neteller PLC provides
gambling customers with access to more than 80 percent of the online gaming
merchants in the world.
c. Neteller PLC's 2005 annual report states that, in 2005, Neteller PLC
processed over $7.3 billion in financial transactions; Neteller PLC provides
gambling customers with access to more than 80 percent of worldwide gaming
merchants; and in 2005, Neteller PLC had $172.1 million in revenues and $91.5
million in net profit.
d. In Neteller PLC's half yearly report for the six-month period ending June 30,
2006, dated September 11, 2006, the President and Chief Executive Officer of
Neteller PLC described the "online gaming market" as Neteller PLC's "main
market," and stated that, in the first half of 2006, Neteller PLC processed $5.1
billion in financial transactions, and that approximately 85 percent of Neteller
PLC's revenue during that period derived from individuals in North America.
e. The transcript of a public conference call that occurred on or about
September 11, 2006, between officers of Neteller PLC and financial analysts,
reflects that the Chief Financial Officer of Neteller PLC stated during the
conference call that approximately 75 percent of the revenue of Neteller PLC
originated from customers in the United States.
8. As part of the investigation, law enforcement officers and a cooperating
witness posed as gambling customers and conducted online monetary transactions
with numerous online gambling businesses using online payment processing
services provided by Neteller PLC. The following are examples of some of the
transactions that I have either participated in or learned about:
a. On or about August 12, 2006, a cooperating witness (the "CW"), who at the
time was located in Miami, Florida, used a computer to open an account on
Neteller.com (the "Neteller Account"), and the CW electronically transferred
$400 from a bank account in Miami, Florida, into the Neteller Account. On or
about August 22, 2006, the CW, who at the time was located in Miami, Florida,
used a computer to open a wagering account with an online gambling business
based in Antigua ("Online Gambling Business #1), by electronically transferring
$400 from the Neteller Account to Online Gambling Business #1. On or about
August 24, 2006, the CW, who at the time was located in Miami, Florida, used a
computer to access Online Gambling Business #1's website, and the CW then
wagered $250 on a National Football League ("NFL") football game and won
approximately $200. On or about September 7, 2006, the CW, who at the time was
located in Miami, Florida, used a computer to access Online Gambling Business
#1's website, and the CW then wagered $250 on an NFL football game and lost
$250.
b. On or about September 26, 2006, I was present with the CW at a public library
located in Westchester County, New York. At that time, I observed the CW access
the internet using a public computer at the library. The CW then used the
computer to access Online Gambling Business #1's website, and the CW then
withdrew $200 from his wagering account with Online Gambling Business #1 and
transferred it electronically to the Neteller Account. Thereafter, the CW then
placed a $50 wager on an NFL football game on Online Gambling Business #1's
website using money that had previously been deposited with Online Gambling
Business #1 using the Neteller Account.
c. On or about December 29, 2006, in Westchester County, New York, I used a
computer to access the Neteller Account by logging on to Neteller.com. At that
time, the balance in the account was $100. I then transferred $25 from the
Neteller Account to a wagering account with an online gambling business based in
Costa Rica ("Online Gambling Business #2"). I then transferred $25 from the
Neteller account to a wagering account with another online gambling business
based in Costa Rica ("Online Gambling Business #3"). Then, I logged on to Online
Gambling Business #1's website and used a link to Neteller.com to transfer $25
from the Neteller Account to the wagering account with Online Gambling Business
#1 that previously had been opened by the CW.
9. I have reviewed various business records obtained from financial institutions
that provide information regarding international monetary transactions conducted
by, or on behalf of, Neteller PLC, including the following:
a. Records of automated clearinghouse ("ACH") transactions obtained pursuant to
subpoena from an automated clearinghouse located in the United States
demonstrate that Neteller processes a significant amount of customer
transactions through the automated clearinghouse system, including transactions
from customers in Manhattan. The ACH system permits Neteller to handle
internet-based customer transactions. These records further demonstrate that
Neteller uses a payment service company (the "Payment Company") to conduct its
customers' ACH transactions in the name of the Payment Company. By doing so,
Neteller PLC conceals the nature of these financial transactions. The Payment
Company receives funds in the United States on behalf of Neteller PLC, and then
transfers the funds out of the United States to accounts controlled by Neteller
PLC in Canada.
b. Records of wire transfers obtained pursuant to subpoena from a bank in the
United States (the "US Bank") demonstrate that, from in or about January 2006 up
to and including in or about March 2006, a total of approximately $98 million
was transferred by wire from an account in the name of the Payment Company at
the US Bank in the United States to an account in the name of JSL Systems Inc.
at National Bank of Canada in Calgary, Alberta, Canada. Neteller PLC's 2004
annual report states that JSL Systems Inc. is a related company that is owned by
a director of Neteller PLC that processes transactions for Neteller PLC and is
paid a nominal fee for its services. In the Neteller IPO Prospectus, the Board
of Directors of Neteller PLC, including STEPHEN ERIC LAWRENCE, the defendant,
collectively states that LAWRENCE and CC#1 are partners in and/or directors of
JSL Systems Inc.
c. Records of wire transfers obtained pursuant to subpoena from the US Bank
demonstrate that, from in or about March 2006 up to and including in or about
April 2006, a total of approximately $50 million was transferred from an account
in the name of the Payment Company at the US Bank in the United States to an
account in the name of Cardload Inc. at National Bank of Canada in Calgary,
Alberta, Canada. Neteller PLC's 2004 annual report states that Cardload Inc. is
a wholly-owned subsidiary of Neteller PLC.
10. I have reviewed various business records of Neteller PLC that provide
information regarding the involvement of STEPHEN ERIC LAWRENCE, the defendant,
in the business affairs of Neteller Inc. and Neteller PLC, including the
following:
a. In the Neteller IPO Prospectus, the Board of Directors of Neteller PLC,
including LAWRENCE, collectively states the following: LAWRENCE founded the
Neteller Group in June 1999; LAWRENCE participated in developing the online
payment services of the Neteller Group and participated in raising capital for
the Neteller Group; LAWRENCE served as Chief Executive Officer of Neteller Inc.
until December 2002 and drew a salary and other compensation from Neteller Inc.;
LAWRENCE served as executive director of Neteller Inc. from 2001 to August 31,
2003; LAWRENCE was Chairman of the Board of Directors of Neteller PLC and would
continue to serve as Chairman upon admission of Neteller PLC to AIM; LAWRENCE
owned approximately 42 percent of Neteller PLC prior to the IPO, and LAWRENCE
would own approximately 36 percent of Neteller PLC after the IPO; and LAWRENCE
advanced to Neteller PLC approximately $3 million in an interest-free loan.
b. Neteller PLC's 2004 annual report states that Neteller PLC is the creation of
LAWRENCE who is a major shareholder of Neteller PLC; LAWRENCE served as Chief
Executive Officer of Neteller Inc. until December 2002; throughout 2004,
LAWRENCE was the Chairman of the Board of Directors of Neteller PLC; on or about
December 31, 2004, LAWRENCE was the largest shareholder of Neteller PLC, owning
21.94% percent of the outstanding shares of Neteller PLC; and during 2004, the
Board of Directors of Neteller PLC granted LAWRENCE options to purchase
additional shares of Neteller PLC.
c. Neteller PLC's 2005 annual report states that LAWRENCE served as Chairman of
the Board of Directors of Neteller PLC during 2005, but that LAWRENCE would step
down from his position as Chairman at Neteller PLC's annual general meeting in
2006; during 2005, the Board of Directors of Neteller PLC granted LAWRENCE
options to purchase additional shares of Neteller PLC; and during 2005, Neteller
PLC paid LAWRENCE compensation for serving as a director.
11. I have reviewed various business records of Neteller PLC that demonstrate
that STEPHEN ERIC LAWRENCE, the defendant, had knowledge that he was
participating in criminal activity in the United States. For example, in the
Neteller IPO Prospectus, the Board of Directors of Neteller PLC, including
LAWRENCE, collectively states that criminal laws exist in the United States that
prohibit persons from promoting certain forms of gambling; criminal laws exist
in the United States that prohibit the transmission of funds that are known to
have been derived from criminal activity or are intended to promote criminal
activity; that to date most of the criminal prosecutions related to online
gambling in the United States have been limited to cases where assets or
relevant individuals are located in the United States; that the Neteller Group
does not maintain offices or assets in the United States; and that there can be
no assurance that the government of the United States will not try to prosecute
the Neteller Group under existing or future federal laws. WHEREFORE, deponent
prays that a warrant be issued for the arrest of the above-named individual and
that he be arrested and imprisoned or bailed as the case may be.
________________________________
MARYANN GOLDMAN
SPECIAL AGENT
FEDERAL BUREAU OF INVESTIGATION
Sworn to before me this day of January 16, 2007
________________________________
UNITED STATES MAGISTRATE JUDGE
SOUTHERN DISTRICT OF NEW YORK


REOdeathwagon
 
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