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Neteller reached agreement with USAO

Discussion in 'Online Casinos' started by Tester, Jul 18, 2007.

    Jul 18, 2007
  1. Tester

    Tester Quit Gambling

    Location:
    Israel
    account holders will be able to request withdrawals on or before 30th July
    Neteller will pay a fine of $136 million to the USAO.

    Press Release
    NETELLER Announces Settlement of US Situation


    Wednesday, 18 July 2007 - NETELLER Plc (LSE: NLR), the independent global online payments business, today announces that the Company has entered into a Deferred Prosecution Agreement (“DPA”) with the United States Attorney's Office for the Southern District of New York (“USAO”). The DPA represents the resolution of the USAO’s investigation into the Company.

    Pursuant to the DPA, the Company has consented to the filing of a criminal information relating to transactions between Internet gambling merchants and persons located in the United States. The USAO has agreed to defer the prosecution of any federal charges and, as a consequence, the Company will not be convicted of any federal crime, as long the Company fulfils the set conditions of the DPA during the two year term of the agreement. At the conclusion of the two year term, the criminal information will be dismissed. The key terms of the DPA are set out in more detail later in this announcement. The United States District Court for the Southern District of New York has approved the deferral of the prosecution. As part of the DPA, the Company has also agreed to forfeit US$ 136 million to the United States. This amount includes the approximately US$ 60 million that the USAO has previously seized.

    Additionally the Company announces:

    Following this resolution, the Company will seek to publish its audited annual accounts for 2006 and have its shares restored to trading on AIM as soon as practicable thereafter.

    The Company is using its best efforts to allow withdrawal requests as soon as possible and US customers will be able to sign in to their NETELLER account to request the withdrawal of their funds by no later than 30 July 2007. The exact date upon which US customers will be able to make requests will be communicated to US customers via email and through our website.
    Ron Martin, President & CEO, said “This agreement resolves the USAO’s investigation relating to the Company’s former US business activities. We believe that this settlement is in the best interests of NETELLER and its shareholders."

    “Our customers, employees and shareholders have all patiently waited for this resolution. We anticipate within the next few weeks that we will have fully implemented the plan for the return of funds to our US customers and are hopeful that, by that time, we will have restored the Company’s shares to trading on AIM. We can now begin to refocus our efforts on building and strengthening the NETELLER business in the growing markets of the European and Asia Pacific regions. I look forward to sharing further information about the Company’s progress over the coming months.”

    Key terms of the Deferred Prosecution Agreement
    The settlement takes the form of a two year DPA with the USAO. In the DPA, NETELLER has consented to the filing with the United States District Court for the Southern District of New York of a criminal information charging NETELLER with participating in a conspiracy in violation of certain US laws. If NETELLER fulfils its obligations under the DPA, the criminal information will be dismissed, following the two year term.

    Specifically, the DPA contains the following main points:

    NETELLER, as detailed in the “Statement of Admitted Facts” attached to the DPA, admits that it had operated in the US an unlicensed money transmitting business and had participated in the performance of financial transactions for the purpose of promoting unlawful transactions between internet gambling merchants and persons located in the US.

    NETELLER agrees that it will pay an amount to the United States totalling US$ 136 million which is disgorgement of certain profits received by NETELLER from the activities described in the Statement of Admitted Facts. This amount includes the approximately US$ 60 million that the USAO has previously seized. NETELLER agrees that it will satisfy the remaining portion of its forfeiture obligation with a payment of US$ 40 million to be paid on or before 15 October 2007, and the remaining balance (approximately US$ 36 million) to be paid on or before 17 January 2008.

    NETELLER agrees to cooperate fully with US authorities in all matters relating to the ongoing investigations by the USAO.

    NETELLER agrees to fully implement procedures and controls to prevent illegal transactions between internet gambling merchants and persons located in the US and to continue to retain Navigant Consulting Inc., a forensic accounting firm, to monitor NETELLER’s compliance with these procedures and controls.
    Distribution Plan to be implemented
    As announced on 4 June, the Company has agreed to a plan for the distribution of funds to its US customers. The agreed plan details the process and mechanisms by which US customers will be able to initiate the return of their funds after the plan is implemented. NETELLER is using its best efforts to start implementing the plan as soon as possible and, in any event, by no later than 30 July 2007. The Company will communicate to US customers via email and through its website the exact date upon which such customers will be able to make requests.

    Restoration of trading to AIM
    As stated in the Company’s announcement of 13 July, the Company continues to make progress regarding the ongoing suspension of the Company's shares from trading on AIM. The Company is in discussions with its advisers and AIM and understands that the admission of the Company’s ordinary shares to trading on AIM has not to date been cancelled.

    With today’s announcement of a resolution of the USAO investigation, the Company is now focused on finalising and publishing its audited annual accounts for 2006. The Company will endeavour to post the 2006 accounts to its shareholders as soon as practicable following which the Company anticipates that trading in the Company’s ordinary shares on AIM will be restored.

    Further details will be announced as and when they become available.

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    Last edited: Jul 18, 2007
    7 people like this.
  2. Jul 18, 2007
  3. lots0

    lots0 Banned User - troll posts - flaming PABnonaccred

    Occupation:
    I do nothing productive
    Location:
    Hell on Earth
    Well it looks like we may get our money back... But, I'm still not holding my breath.

    My only question is:

    How long after you withdraw your money from Neteller is it going to take before you get a notice of a major audit from the IRS?
     
  4. Jul 18, 2007
  5. Mike031

    Mike031 Banned User - violation of <a href="http://www.cas

    Occupation:
    not a loser :o)
    Location:
    not loserland *lol*
    btw. what's with their promised new "Netellercard"? :rolleyes:
     
  6. Jul 18, 2007
  7. jetset

    jetset Ueber Meister CAG

    Occupation:
    Senior Partner, InfoPowa News Service
    Location:
    Earth
    More from Neteller....

    Press Release
    NETELLER Announces Service Changes to Israeli Market


    Wednesday, 18 July 2007 - NETELLER Plc (LSE: NLR), the independent global online payments business, today announced certain changes to its services in the Israeli market.

    The Group continually assesses the risk profile and status of the markets its serves. Recent legal developments have increased the uncertainty regarding the legality around certain activities related to online gambling in the Israeli market. The Company has therefore concluded that the Group will no longer process transfers related to online gambling sites on behalf of Israeli resident customers.

    Key features of service changes
    In light of the recent legal developments in Israel, NETELLER has decided to implement a voluntary phased withdrawal of the payment services related to online gambling that it offers customers to the Israeli market.

    Cessation of Israeli resident customer transfers related to online gambling merchants:

    The Group will cease processing transfers to online gambling merchants for Israel-resident customers with effect from 12.01 a.m. GMT on Thursday 19 July 2007.

    The Group will cease processing transfers from online gambling merchants to Israel-resident customers within two weeks, with effect from 11.59 p.m. GMT on Tuesday 31 July 2007.
    Non-gambling related services continue:

    Israel-resident customers will be able to continue to use their NETELLER e-wallet account for any non-gambling related money transfers and withdrawals.

    Local funding options for the NETELLER e-wallet will continue to be available to Israel-resident customers.
    Customers located in other parts of the world are not affected by this change, and NETELLER continues to service these customers in the normal manner. The Israeli business of the Group does not represent a material proportion of the Groups overall customer base, revenue or profitability.

    Further information is available on the Groups website for customers at: updates.neteller.com
     
  8. Jul 19, 2007
  9. KasinoKing

    KasinoKing WebMeister & Slotaholic.. CAG MM PABnonaccred webmeister

    Occupation:
    House-Husband and Casino Advisor
    Location:
    Bexhill on sea, England
    ONE HUNDRED AND THIRTY-SIX MILLION DOLLARS??? :what: :eek: :eek2: :confused:

    You can not be serious!!!!
    Where on earth will they get that sort of money?? < looks in mirror >

    :mad:
     
  10. Jul 19, 2007
  11. Swede

    Swede Hell is only a word PABnonaccred PABaccred

    Occupation:
    Auctioneer
    Location:
    Anaon
    Using one one-hundreth of a billion of the fees gathered last month alone?
     
  12. Jul 19, 2007
  13. Mousey

    Mousey Ueber Meister Mouse CAG

    Occupation:
    Pencil Pusher
    Location:
    Up$hitCreek
    They've already got almost half of it -- US players' frozen/confiscated funds...

     
  14. Jul 19, 2007
  15. jetset

    jetset Ueber Meister CAG

    Occupation:
    Senior Partner, InfoPowa News Service
    Location:
    Earth
    What about the interest on players' funds?

    The question of interest on players' in some cases substantial funds frozen since January is conspicuous by its absence in either Neteller or USAO statements - looks like Neteller is going to stick with its refusal to cough up on that one.
     
  16. Jul 19, 2007
  17. Eliezer

    Eliezer Dormant account

    Occupation:
    computers
    Location:
    Israel
    the card is being shipped country by country.
    looks like they go over a list of countries and ship by country.
     
  18. Jul 19, 2007
  19. SlotsWizard

    SlotsWizard Webmeister webmeister

    Occupation:
    I currently work for the Wizard of Odds
    Location:
    North of Antarctica
    You must register/login in order to see the link.
     
  20. Jul 20, 2007
  21. MarcyW

    MarcyW Dormant account

    Occupation:
    mom
    Location:
    midwest

    I'm a little doubtful that we will ever see money from them!
     
  22. Jul 20, 2007
  23. vinylweatherman

    vinylweatherman You type well loads CAG MM

    Occupation:
    STILL At Leisure
    Location:
    United Kingdom
    Will Israeli clients please form an orderly stampede for the exit:rolleyes:

    Where have we heard this before? "Non-gambling related services continue".

    Ah yes, the Americans, just before their funds got frozen.
    Asking Neteller about the "non-gambling" services that were still available, US clients were advised to consult Google:lolup:

    And.... "The Israeli business of the Group does not represent a material proportion of the Groups overall customer base, revenue or profitability."
    You guessed it, the Turks heard this one before, this means they can screw you (Israelis), just as they did the Turks before you, because you are not relevant to the business plan and profitability.

    So who's next?

    Malaysia?
    South Korea? (Illegal there, not that casinos are too bothered yet).
    Japan?
    France & Germany? (in argument over legality with EU)

    There must be a host of places where the legal situation is "uncertain" or "unclear".
     

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