Neteller, the DOJ, and the IRS

[Rollo]

Yes, wow, that is scary... I don't see it as a big problem for players as players, in the long run, tend not to win the big money really they tend to lose money (save those lucky few that hit the big jackpots). But all the webmaters and affliates that have been raking it in over the years, they're the ones that should be shaking in their shoes. Tax evasion is serious as hell and a few affilaites are sure to be made examples of if all this goes down.

I declared all my affilaite income becuase I receive everything in my US bank account, but I know webmasters that rake in hunders of thousands each year and don't declare a dime becuase they receive the funds in foreign accounts (and thought they were safe). If Neteller turns all this info over and it finds it's way to the IRS (which it will), man, some people are going to be in some seriously deep shit. U.S. citizens must pay taxes on their income regardless of where it was earned or where one lives even if all the above takes place abroad. Being a resident of another country doesn't matter - I live abraod and hate paying US taxes becuase I recieve absolutely nothing in return and pay high consumption taxes in my resident country for everything I buy - but better safe than sorry so I hold my nose a cut the check every year.

Yeah, if other folks are receiving 100s of k from Neteller and claiming dollars and change on their returns, that's a pretty much open and shut case. No defending yourself against that sort of evidence. Yes all this would be pretty chilling as it would effect a helluva lot of people. Good God. I hope this is just speculation as I know some people that could really be bent over. I never even thought about that angle until I read this.... yeah, could be very serious.

Anyone that thinks that the DOJ has some obligation not to share information with the IRS about the crime of tax evation is just crazy. What's more, Neteller will rat everyone out in a millisecond if its in their interest - let's just hope they decide it's not in their interest if they ever want any goodwill toward their brand ever again.

 

[Mousey]

(AFX UK Focus) 2007-06-28 17:23 GMT:
NETeller will miss deadline to finalise FY accounts due to ongoing US probe

Article layout: raw
LONDON (Thomson Financial) - AIM-listed online money transfer company NETeller PLC said it will not be able to finalise its full-year accounts in time to be sent to shareholders by June 30, due to the ongoing regulatory inquiry it faces in the US.

Rule 19 of the AIM rules require listed companies to send their accounts to shareholders not later than six months after the end of the financial year.

The company's shares continue to be under suspension, .......

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[jetset]

Update

DELAYED RESULTS FROM NETELLER

Ongoing hassle with US Department of Justice blamed for late results

The embattled e-wallet Neteller has announced in a rare press release that due to the ongoing investigation by the US authorities, the annual audited accounts for the year ended 31 December 2006 will not be finalised in time to send to shareholders by 30 June 2007.

This means that Neteller is unable to comply with Rule 19 of the AIM Rules that requires an AIM listed company to send its accounts to shareholders not later than six months after the end of the financial year to which they relate.

The Isle of Man company suspended trading in its shares on the London AIM market in January this year following the arrest of its founders, Steve Lawrence and John Lefebvre, who remain on $5 million bail, confined to the United States and still untried on allegations of money laundering after 6 court continuances.

Following the arrests of the two men, Neteller withdrew from the US, Turkish and Canadian markets and embarked on a long drawn out dialogue with US Department of Justice officials from the United States Attorneys Office for the Southern District of New York. This was done under the advice of its legal advisers and in accordance with court orders in the Isle of Man.

It is understood that as much as $55 million of US player monies remain frozen in the investigation, and an undertaking by Neteller to pay US players made earlier this year has yet to be realised. No interest will be paid on the frozen accounts, the e-wallet has advised.

Neteller hopes to finalise its involvement with the American authorities by 13 July this year, and the company says it is doing its utmost to finalise and post its audited accounts.

Neteller's ordinary shares will continue to be suspended from trading. The press release from the company did not include any news on its much anticipated debit card, promised before the end of June after transactions on the current Neteller card were frozen, leaving many users unable to withdraw the credit balances on their cards.

 

[NoMouthToScream]

NETeller founder pleads guilty

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[Mousey]

Dammit, dammit, dammit, dammit...

From the

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...

NEW YORK - The co-founder of Neteller, which processed billions of dollars in Internet gambling transactions for Americans, pleaded guilty Friday to a charge of criminal conspiracy.

Stephen Lawrence, whose company was once one of the primary ways U.S. citizens placed bets with offshore bookies, acknowledged in a federal courtroom in Manhattan that the operation was illegal.

"I came to understand that providing payment services to online gambling Web sites serving customers in the United States was wrong," he told the judge.

His lawyers said he was cooperating with U.S. investigators, and had also agreed to be at least partly responsible for the $100 million the government is seeking from people who were involved in the operation.

 

[EasyRhino]

It will be interesting to see what happens with Lefevre's case.

I also wonder what Lawrence would have been up for if he was convicted on all counts.

 

[Rollo]

Stephen Lawrence, 47, during a hearing before U.S. District Judge P. Kevin Castel in Manhattan, also agreed to cooperate with the government.

Hmmm, I'm not taking that to mean "to ensure the timely return of customer funds and to continue to protect the privacy of depositors." I think it means "to cooperate in future investigations and prosecutions." Damn, here we go...

They should have held a massive bonfire with all records of US related transactions... I get the feeling that a lot of people are now going to be in a very bad way. Netteller's records is the veritable motherload of evidence of U.S. tax evasion.

No escape...

Want to renounce your US citzenship? Here's how:

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...but dig this bit:

"E. TAX & MILITARY OBLIGATIONS /NO ESCAPE FROM PROSECUTION

Also, persons who wish to renounce U.S. citizenship should also be aware that the fact that a person has renounced U.S. citizenship may have no effect whatsoever on his or her U.S. tax or military service obligations (contact the Internal Revenue Service or U.S. Selective Service for more information). In addition, the act of renouncing U.S. citizenship will not allow persons to avoid possible prosecution for crimes which they may have committed in the United States, or escape the repayment of financial obligations previously incurred in the United States."

"...should also be aware that the fact that a person has renounced U.S. citizenship may have no effect whatsoever on his or her U.S. tax or military service obligations."

Good God.