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Plan To Return Funds To U.S. Gamblers

NETELLER, the once #1 online payment processor, is having a difficult time trying to get funds back to U.S. Gamblers. Because of the decision to not accept transactions from the U.S. more then a month ago, NETELLER is forced to keep player's funds temporarily.

NETELLER has every intention on returning player's money but because of the U.S. Government's involvement, all funds are being held in trust so that the Government can't get their hands on it. As of now, NETELLER's legal counsel is meeting with the USAO of Southern District of New York to sort out the complaints that were brought against the company on January 16th as well as the criminal charges brought against the founders of NETELLER, Stephen Lawrence and John Lefebvre, who are both no longer affiliated with the company. Because the day has passed that Lawrence and Lefebvre were to learn if they would be indicted with criminal charges, the date has now been extended to March 16, 2007.

To aid in the USAO's investigation, NETELLER is beginning to produce documents at their request. The ongoing discussions will likely include assistance from a forensic accounting firm to determine the financial status of NETELLER. Ultimately, NETELLER says the discussions will determine the most effective repayment plan of all U.S. funds, including those still held in online casino accounts, which NETELLER and their CEO intend to make their number one priority.

NETELLER is encouraging US members to be patient as this is a tedious process that is moving as quickly as they possibly can make it. Many U.S. NETELLER account holders are understandably asking how the government could get away with this in the first place. The reason being is the USAO was successful at obtaining court-ordered seizure warrants (the UIGEA in effect), which in turn, required banks to decline and freeze financial transfers being processed through NETELLER accounts maintained at U.S. automated clearinghouses. Apparently, the USAO agrees that the return of funds is a top priority.

In the meantime, NETELLER continues doing international business elsewhere with online casinos and gaming sites, and insists their cash flow is strong enough to sustain ongoing transactions and stay operational.

Posted: March 1, 2007

NETELLER suspends shares,
ex-directors held in the United States while traveling.

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. Stephen Lawrence and John Lefebvre were detained on Monday, although traveling separately in the United States, NETELLER said, becoming the latest victims of the United States' crackdown on Internet gaming.

It said neither Lawrence nor Lefebvre had any current connection to NETELLER other than to be 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 extremely fast with the rapid rise in online gambling revenues 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 (London:888.L - News) dropped 2.9 percent to 125 pence by 1015 GMT and gambling software maker Playtech (London:PTEC.L - News) 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.

Posted: March 1, 2007

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