NETeller settles w/DoJ

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Pay us our damn money already. I want my 70 grand and be rid of this whole ugly industry

Part of the Neteller settlement with the DoJ is that payment of US players starts no later than 30 July....so Monday is the date that things should start rolling.

But with $94 million to repay to scores of thousands of US players it may take awhile. US players have been informed that they can access their accounts and put in their withdrawal orders right up to January 2008 (does that hint at how long this process could take? Maybe.)

Regarding interest and APCW's passed on comment above - I wonder how much interest accrued to Neteller from that supposedly seperate and ringfenced players account? I would bet quite a tidy sum, and not at the very least sharing it with players doesn't wash - if Neteller had the will there would, I am confident, be a way, and the IOM authorities would cooperate under these truly extraordinary circumstances that have so badly prejudiced US players.

However, I imagine that most will just be so relieved to get their dosh that they will be prepared to overlook the issue of interest on their frozen deposits.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Quote: "Our actions in Canada were in line with other payment processors and gaming operators who saw a change in that market at the same time as us." Unquote

That strikes me as flannel - what change? what other processors and operators?

There were none until Neteller pulled the Canadian plug without any apparent reason (unless it was behind-the-scenes pressure from the DoJ who were holding two of Neteller's major shareholders)
 

sdaddy

Meister Member
Joined
Feb 18, 2005
Location
Arizona
Regarding interest and APCW's passed on comment above - I wonder how much interest accrued to Neteller from that supposedly seperate and ringfenced players account? I would bet quite a tidy sum, and not at the very least sharing it with players doesn't wash - if Neteller had the will there would, I am confident, be a way, and the IOM authorities would cooperate under these truly extraordinary circumstances that have so badly prejudiced US players.
This may have to do with why Neteller is asking (but not requiring) U.S. members to sign a release before they request their frozen funds. It could be a way to shield them from future lawsuits related to the accrued interest.

jetset said:
Quote: "Our actions in Canada were in line with other payment processors and gaming operators who saw a change in that market at the same time as us." Unquote

That strikes me as flannel - what change? what other processors and operators?
Perhaps Neteller is alluding to Firepay's exit from the Canadian market last February.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Firepay exited after Neteller, as far as I can recall.

I think you're right about the release form - almost certainly a move to preempt any future class or individual actions on the interest or any other issues arising from the manner in which Neteller has treated players and (possibly) their privacy.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
It's official - US payouts start today

Press release from Neteller out this morning (July 30)

Distribution Plan Implemented Today


Monday, 30 July 2007 NETELLER Plc (LSE: NLR), the independent global online payments business, today announced that US customers now have access to their accounts online to request the withdrawal of funds.

As described in the Company's announcement of 4 June 2007, under the Distribution Plan agreed to with the United States Attorney's Office for the Southern District of New York, US customers will be able to commence the process to achieve a return of their funds currently within their NETELLER e-wallets.

US customers will be able to access their NETELLER accounts online until 26 January 2008 and make a request for their funds. In accordance with NETELLERs Terms of Use, no interest on account balances will be paid.

NETELLER will not charge fees to customers to process requests for funds.

Funds will be distributed either by electronic transfer to the bank account on record with NETELLER or by a cheque to be sent to a mailing address as confirmed by the customer.

If a US customer has a bank account already registered with NETELLER, funds transfer will be by electronic transfer subject to confirmation by the customer that the registered bank account remains valid.

US customers will receive the entire balance of funds in their account; no requests for partial payments will be processed. US customers cannot use their accounts for any transaction other than to request the funds.

Further information is available on the Companys customer website, www.neteller.com, in particular the US customer update FAQs which are posted at updates.neteller.com.

"We are very pleased to start the funds distribution process today. I can assure our US customers it has been our highest priority and we'd like to thank them for their patience during this period", said Ron Martin, President and CEO. "The implementation of this plan marks another major step forward in the Company's recovery strategy".
 

lots0

Banned User - troll posts - flaming
Joined
Jun 3, 2006
Location
Hell on Earth
Here is the release Neteller requires you to sign before you can get your money from them....


Release

You and NETELLER Plc Group (each, a “Releasing Party”) mutually release, waive, and discharge each other (each, a “Released Party”) from any and all manner of actions, causes of action, suits, promises, damages, judgments, executions, claims, counterclaims, demands, and any other form of liability whatsoever, in law or equity, known or unknown, that the Releasing Party ever had, now has, or hereafter can, shall, or may have against the Released Party from the date You opened Your Account to the Effective Date with respect to Your request to receive funds under the Distribution Plan and Your Account.

The additional definitions below apply to this release:

“You” or “Your” refers to you and any of your assigns, heirs, executors, agents, or anyone else acting on your behalf or in your capacity.

“NETELLER Plc Group” means NETELLER plc and its predecessors, successors, present and former affiliated companies, subsidiaries, assigns, officers, directors, stockholders, employees, and agents.

“Your Account” means your online stored value account with the Neteller plc Group, or any of them, which holds electronic money.

“Distribution Plan” means the distribution plan announced by NETELLER Plc Group on 4 June 2007 pursuant to agreements with the United States Attorney’s Office for the Southern District of New York and Navigant Consulting, Inc.

“Effective Date” means the date on which You successfully withdraw funds from Your Account under the Distribution Plan.

I'll tell you one thing.... I'll NEVER use another 3rd party money transfer outfit like Neteller again.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
The movement on Neteller's share price since their resurrection last Friday has been interesting, with up to 13 point fluctuations up and down on the London AIM.

When trading closed yesterday (Monday) they were down some 13 points at 68 p - it's a long way from the price on 16 January this year when they suspended trading - it was around 176.00 back then!
 

Philosopher

Dormant account
Joined
Jan 18, 2007
Location
US
Well what do you know. Requested my withdrawal from NLR yesterday and it hit my bank account this morning! Just north of 19k I've been waiting on since all this started!

Really didn't expect to see that money again so this is a very nice surprise.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
That's good to know as an indication that the American payout project is working, Philosopher - many thanks!
 

EasyRhino

Dormant account
Joined
Sep 17, 2006
Location
San Diego
I also got my withdrawal on the next day. I know it was my money to start out with, but it still feels like I won a jackpot of a few thousand dollars.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Update

NETELLER CHIEF TELLS YOUTUBE USERS "WE'RE SORRY"

US players get frozen funds and an apology - at last

The Isle of Man based e-wallet Neteller started trying to repair the damage to trust that its 7 month run-in with US Department of Justice authorities caused by using the popular video streaming site Youtube.com this week to apologise to US customers.

A casually dressed Ron Martin, CEO of the company appeared in a videoed statement, recapping the events that caused his company to freeze US accounts for six months and exit the US market.

Martin revealed that he had been following blogs and other public opinion sites on the issue, and touched on the firm's weak communications with customers. This was unavoidable due to the sensitive nature of negotiations as his company battled its way through DoJ allegations before finally agreeing to pay a major $136 million penalty (see previous InfoPowa reports)

After reprising the key points in the plan for the return of US monies, Martin reiterated that payouts totalling some $94 million to hundreds of thousands of US players had started, and revealed that in the first day alone, $40 million had been despatched to US players. He apologised to those US customers who had been kept waiting so long, and thanked them for their patience.

The issue of interest, which Neteller has announced it will not be paying, was not addressed.

Martin stressed the importance of trust and acknowledged that the company will now have to work hard to regain the trust of its customers in the wake of the US debacle.

The question of how much private information on US players had been divulged to the US authorities - if any at all - was not addressed.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Update

NETELLER RESURGENT

e-Wallet expanding eastward with Aussie deal

With its US market exit and the hassles with the American legal authorities now almost behind it, the Isle of Man e-wallet Neteller has gone up a gear in its international expansion strategy with the announcement this week of a new Asia-Pacific involvement.

Describing itself as an independent global online payments business, the AIM-listed company disclosed this week that it has recently completed the acquisition of a strategic stake in Centricom Pty Limited. The key points of the investment are:

* Centricom operates the POLi payment platform in Australia and New Zealand.

* Neteller will pay a total of AUD$ 5 million (approximately US$ 4 million) for a significant equity position in Centricom.

* The deal extends Neteller's expertise as a payments hub for its merchants initially in the Asia Pacific region.

* Centricom Pty Limited is an Australian company based in Melbourne that provides a range of web-based transaction services, including online payments, straight-through processing, reconciliation and advanced transaction integration solutions.

Under the terms of the agreement, Neteller has agreed to invest a sum of AUD$ 5 million in consideration of a minority stake holding in Centricom, on a fully diluted basis. As part of the investment, Neteller will appoint one director to the Centricom board.

Through an existing partnership, Neteller has already introduced the POLi service to its Australian customers back in January 2007 as a safe and convenient method of payment direct from their bank accounts. The POLi system allows customers to make payments online, from their existing internet banking service, without disclosing their bank or credit card details to the merchant.

Centricom is backed by a strong financial partner in the Melbourne-based Jagen Group. Jagen is an international investment group with interests across a broad range of industries in the United States, Europe and the Asia Pacific region, and it will continue to own the majority shareholding in Centricom following the Neteller investment, along with Centricom's directors and employees.

This investment furthers the Neteller Group's presence in the important and expanding Asia Pacific online payment market, says President and CEO Ron Martin.

We are pleased to cement our existing relationship with Centricom through this investment," Martin commented. "We look forward to working with Centricom to drive the business through its next phase of growth.

"Neteller will continue to seek out strategic relationships with companies such as Centricom who offer compelling products and services that enhance our innovative online payment solutions to our global customers and merchants.

Simon Warner, Managing Director of Centricom, said We welcome the investment from NETELLER as a milestone in our development which will enable us to roll out the POLi service to more merchants and build further consumer brand awareness. This partnership is further evidence that Centricom is serious about being the major provider of online payments in Australia, New Zealand and beyond.

Since its launch in October 2004, Centricom has been steadily building and refining its online payments business. The POLi service now operates in three countries; Australia, New Zealand and, with its partner ATM Solutions, South Africa.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Neteller update - latest statement

NETELLER Plc Pre-close Trading Update

Board confident 2007 results to meet market expectations building momentum into 2008

Friday, 11 January 2008 NETELLER Plc, the independent global online payments business, is pleased to provide a trading update in respect of its preliminary results for the year ended 31 December 2007, which the Company intends to release on Tuesday, 11 March 2008.

Trading update

The Board announces that the Groups operating businesses have traded in line with managements expectations in the fourth quarter and the Board is confident that the full year results for the Group will meet market expectations.

The Company will make the final payment of US$ 38.25 million on 16 January 2008 to the US authorities in respect of its obligations under the deferred prosecution agreement. This amount reflects recent discussions with US authorities confirming that US$ 57.7 million of the Groups funds were seized, as opposed to the US$ 60 million previously thought and announced. The total amount to be paid to the US authorities in connection with this matter remains the same as previously announced (US$ 136 million).

As part of the arrangements with the USAO, the Group implemented the Distribution Plan to return approximately US$ 94 million of funds owed to US customers. The Group has to date repaid approximately US$ 81 million of this amount. Any unpaid amounts are currently held in trust accounts with the Groups bank. Under the terms of the Distribution Plan, US customers have until 26 January 2008 to withdraw their funds using the NETELLER website.

The sale of the Groups principal Calgary property has been delayed as a result of the lenders for the intended purchaser introducing significantly less attractive terms in the wake of the recent developments in North American financial markets. Consequently, the final condition to the Purchase and Sale Agreement for the property has not been satisfied. Constructive discussions with the intended purchaser and its lenders are continuing but there can be no certainty that a transaction will be concluded. However, the Group is optimistic about achieving a sale in due course given the current strength of the Calgary property market.

The Group has also recently concluded a settlement with a third party vendor who had commenced litigation against the Group for alleged breach of contract (as previously disclosed in the Groups interim statement of 23 August 2007), paying an amount of approximately CAD$ 1.75 million to settle any potential claims.

Building Momentum into 2008

During 2008 the Group will deliver a significant number of initiatives in support of its strategic goal of providing innovative payment solutions for online communities
 

sdaddy

Meister Member
Joined
Feb 18, 2005
Location
Arizona
As part of the arrangements with the USAO, the Group implemented the Distribution Plan to return approximately US$ 94 million of funds owed to US customers. The Group has to date repaid approximately US$ 81 million of this amount. Any unpaid amounts are currently held in trust accounts with the Groups bank. Under the terms of the Distribution Plan, US customers have until 26 January 2008 to withdraw their funds using the NETELLER website.
I'm surprised that there are $13 million in US customer funds still unpaid. Can it be that there were that many customers who, for whatever reason, did not withdraw their funds?
 
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