Neteller Confirms Funds Seized!

[frufrugirl]

I was wondering...Neteller said the money is in a trust. Is that trust earning any kind of interest and if so, who gets the interest at payout time?
.
.excuse if this question was in any other post.

 

[sdaddy]

I was wondering...Neteller said the money is in a trust. Is that trust earning any kind of interest and if so, who gets the interest at payout time?

Yes, you can be sure it's earning interest.

And that's a excellent question to ask regarding who will ultimately be getting that interest. If Neteller truly wanted to demonstrate they had no desire to hold US customers' funds any longer than necessary, then it would make a pledge to payout a substantial portion of this accrued interest along with the returned principle. Sadly I have no faith that will happen.

 

[jetset]

Yes, you can be sure it's earning interest.

And that's a excellent question to ask regarding who will ultimately be getting that interest. If Neteller truly wanted to demonstrate they had no desire to hold US customers' funds any longer than necessary, then it would make a pledge to payout a substantial portion of this accrued interest along with the returned principle. Sadly I have no faith that will happen.

I agree it's an excellent question, and it is one that I have asked Neteller (it will be interesting if they reply LOL!)

Tester, regarding your comment Quote: But using your power recklessly, is doing no good for the US ability to fight terror. Unquote

I agree, but with this change: "But using your power recklessly, is doing no good for the US. PERIOD."

 

[Tester]

I was wondering...Neteller said the money is in a trust. Is that trust earning any kind of interest and if so, who gets the interest at payout time?
.
.excuse if this question was in any other post.

The money is earning interest. That is clearly stated in Neteller's reports. Period.
Neteller's clients are not getting interest for their positive balances. That is part of the business contract between you and Neteller. Since everyone knews that when depositing into Neteller, it is fair in a sense.

Now that money are held and you cannot use them, one may expect to get interst, sicne he cannot use the funds.

But two caveats:
The interest for short periods is not much anyway.
The "fairness" argument asking Neteller to pay everyone interest they earn now, just because this whole scandal, should be balanced by two point:
First, They are just pigeons closed in a cage. It is the USAO, and only him to blame for that. Neteller even sent millions to clients - only to find the money consficated the USAO.
Second, The money lost by Neteller to date, both by consfications, and by major loses due to the change in the business and other loses coming by, is way higher than any interest money. They are not "making a bock" on anyone's back. Maximum they can hope to minimize their loses.

Tester, regarding your comment Quote: But using your power recklessly, is doing no good for the US ability to fight terror. Unquote

I agree, but with this change: "But using your power recklessly, is doing no good for the US. PERIOD."

I agree that it does not good for the US. My point was that even for the "highest goal" of terror fighting is does damage. Would the US be less arrogant, they would have got much more support form the whole world. I guess they could have even stop the Iranian bomb.

 

[jetset]

Yes, you can be sure it's earning interest.

And that's a excellent question to ask regarding who will ultimately be getting that interest. If Neteller truly wanted to demonstrate they had no desire to hold US customers' funds any longer than necessary, then it would make a pledge to payout a substantial portion of this accrued interest along with the returned principle. Sadly I have no faith that will happen.

As undertaken earlier, I've been fencing with a Neteller spokeswoman this morning trying to get a direct answer on this.

I'm afraid the end result is a "no official comment" although she suggests an off the record call which as far as I am concerned is of little if any value when what is required is a straight answer to a simple and legitimate concern.

With corporate responses like this, it's no wonder that Neteller communications are unsatisfactory.

 

[Tester]

It is the first time they heard the question.
The company is in a crisis situation. Do you want her to say whatever she thinks, and get a gang of players cursing them, just because she misspoke?

As undertaken earlier, I've been fencing with a Neteller spokeswoman this morning trying to get a direct answer on this.

I'm afraid the end result is a "no official comment" although she suggests an off the record call which as far as I am concerned is of little if any value when what is required is a straight answer to a simple and legitimate concern.

With corporate responses like this, it's no wonder that Neteller communications are unsatisfactory.

 

[jetset]

No, I expect her as a briefed and authorised spokesperson to give a factual answer to a perfectly straightforward and reasonable question regarding the monies being held on behalf of clients....or at the very least if she is caught off-guard to ask me to wait whilst she contacts someone who can provide an unambiguous answer to a legitimate question.

I do not expect to be flanneled with off the record whispers, and the refusal to comment on the public record does not imo look good for a responsible financial body.

 

[Webzcas]

No, I expect her as a briefed and authorised spokesperson to give a factual answer to a perfectly straightforward and reasonable question regarding the monies being held on behalf of clients....or at the very least if she is caught off-guard to ask me to wait whilst she contacts someone who can provide an unambiguous answer to a legitimate question.

I do not expect to be flanneled with off the record whispers, and the refusal to comment on the public record does not imo look good for a responsible financial body.

Agreed. Neteller is a PLC and as such should start acting as one especially in these uncertain times. Millions of dollars worth of US Customer funds are currently in limbo - As such Neteller's customer base have a right to know what the company is doing to try and resolve this situation.

 

[spearmaster]

As undertaken earlier, I've been fencing with a Neteller spokeswoman this morning trying to get a direct answer on this.

I'm afraid the end result is a "no official comment" although she suggests an off the record call which as far as I am concerned is of little if any value when what is required is a straight answer to a simple and legitimate concern.

With corporate responses like this, it's no wonder that Neteller communications are unsatisfactory.

Fully agreed. I also took this up with them last week - just a couple of days before their last press release, which in my mind still left a lot to be desired but it was certainly better than nothing.

 

[soflat]

Is the evidence Neteller is providing going to be used in the US case against its founders? Or are they cutting a deal to protect them? Did those guys bail out? There has been hardly anything in the media about the situation, and most of what has been reported is from NT press releases and the USA Today article.

 

[Webzcas]

Is the evidence Neteller is providing going to be used in the US case against its founders? Or are they cutting a deal to protect them? Did those guys bail out? There has been hardly anything in the media about the situation, and most of what has been reported is from NT press releases and the USA Today article.

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[jetset]

NETELLER INTEREST

With millions in 'cold storage' who gets the interest?

US players deprived of their Neteller balances by the wrangle between the Isle of Man e-wallet and US government officials were this week asking the very valid question: "If our frozen funds are being safely held in a Neteller trust account what interest is accruing on the money and will we be getting it?"

It's a legitimate concern with some $55 million reportedly involved....but it's one on which there was no information when InfoPowa tried to get a direct answer to the simple question, and a parallel enquiry of whether Neteller solely controlled the trust account or are independent trustees involved in its administration.

A Neteller spokeswomen first suggested an off-the-record call, which InfoPowa declined on the grounds that it was looking for an email documented public answer to a legimiate client question.

The spokeswoman's response to this was: "On the record, there is nothing to say over and beyond the formal announcements we've made."

As we commented to the spokeswoman, this is a pretty callous attitude to display toward clients who are legitimately concerned about what is happening to their money in Neteller's care.

There was no response.

 

[frufrugirl]

Thanks everyone for your reply. Interesting!

 

[Tester]

Given the aggressive behavior of the US governmetn's hooligans, and their ability to get hold of USD denominated funds outside the USA, I am not sure that anouncing details about where and how the money is held, is in the player's best interest.

The magnitude of interest is change money sofar that hte money is not held for a long period. I hope it will not be held for a long period

NETELLER INTEREST

and a parallel enquiry of whether Neteller solely controlled the trust account or are independent trustees involved in its administration.

 

[soflat]

Given the aggressive behavior of the US governmetn's hooligans, and their ability to get hold of USD denominated funds outside the USA, I am not sure that anouncing details about where and how the money is held, is in the player's best interest.

Aggresive? Hooligans?

I heard that Neteller is fully cooperating with the US in its prosecution of the NT founders and preparing all the documents the gov't requests.

 

[suzecat]

Aggresive? Hooligans?

I heard that Neteller is fully cooperating with the US in its prosecution of the NT founders and preparing all the documents the gov't requests.

Soflat......this ugliness has just begun to affect the American public (at large) and seems to be the catalyst that was needed for much of the rest of the world to chant "I Hate Americans." Yep, it sux.

 

[REOdeathwagon]

Is the evidence Neteller is providing going to be used in the US case against its founders? Or are they cutting a deal to protect them?

I would assume that the USAO is offering deals to both sides. And everybody involved (founders, board of directors) is in 'cover your ass' mode.

With the founders using their intimate knowledge of company operations as leverage. And the sitting company officers using US players funds 'held in trust', and player records, as their leverage.

Did those guys bail out?

Yes, I think for about $5 million apeice. (can't find a link, sorry)

 

[jetset]

I am not sure that anouncing details about where and how the money is held, is in the player's best interest.

The magnitude of interest is change money sofar that hte money is not held for a long period. I hope it will not be held for a long period

So, are you seriously suggesting that US players who's funds are frozen (and for that matter all Neteller clients because this is a policy that could impact on them too in different circumstances) are not entitled to know:

1) What rate of interest is applied to their frozen funds in the Neteller trust account, and who is entitled to it and

2) Simple administrative information on the trustees of the fund ie whether Neteller execs have sole control or whether it is a shared responsibility or a Neteller-exclusive responsibility involving independent trustees.

?

 

[jetset]

Yes, I think for about $5 million apeice. (can't find a link, sorry)

You're right - both Lawrence and Lefebvre are on $5 million bail each - earlier reports compared that with the $1 million bail granted to an alleged serial murderer!!!

 

[winbig]

You're right - both Lawrence and Lefebvre are on $5 million bail each - earlier reports compared that with the $1 million bail granted to an alleged serial murderer!!!

No, the $1M bail was for a guy that never killed a person. Mr. Devlin to be exact. He doesn't kill people, he just kidnaps little boys and keeps them against their will.

 

[Webzcas]

You're right - both Lawrence and Lefebvre are on $5 million bail each - earlier reports compared that with the $1 million bail granted to an alleged serial murderer!!!

This is just ridiculous. Two founders of a UK PLC company which is regulated by the FSA in the UK being out on bail for $5million apiece on charges of money laundering. It would be hilarious if it wasn't so serious.

JetSet, is there any news regarding the UK Governments view on all of this. Bearing in mind the DCMS are in full favour of online gambling regulation. I am amazed the UK Government have been quiet on this so far, whilst the US tries to destabilise and destroy UK Public Limited Companies and the thousands of jobs that depend on them.

 

[jetset]

The British government has been remarkably quiet about the extra-territorial damage the feds are causing to British companies and investors, and their seeming belief that the world is their oyster.

Some months back Tessa Jowell made a fairly mild critical remark that the US was making a mistake in going the prohibition route but that's just about been it.

The same applies to the reports that US extraditions under the anti-terrorism treaties were mainly for anything but terrorism charges - there was reportage showing the stats to prove this around about the time of the NatWest extraditions, yet there was nary a peep from the UK government.

It seems they don't give a damn.

 

[Tester]

I heard that many wise persons do cooperate with mafia dons, once they "get the warning".

I am not sure I support Neteller's "cooperation" with the USA.
I do understand them, however. I do not know what I would have done under such kind of stress

Aggresive? Hooligans?

I heard that Neteller is fully cooperating with the US in its prosecution of the NT founders and preparing all the documents the gov't requests.

 

[oldandboring40]

i think i read that the initial hearing is actually tomorrow. maybe we can then see which way this mess is heading.

 

[Tester]

I, too remember that the initial hearing of the arrested owners is shceduled n the 14th.

I think that if Neteller are going to have an agreement with the USAO, we will have some hint for it in the hearing. But in legal cases, everything may be off the record until something comes out formally.