Neteller Funds Seized By DOJ May Be Released Within Next 75 Days

21 March 2007



Wed Mar 21, 2007 9:40 AM BST137

LONDON, March 21 (Reuters) – British payment processor NETeller (NLR.L: Quote, Profile , Research) said on Wednesday it expected to announce a plan to distribute funds seized by U.S. prosecutors to its U.S. customers within the next 75 days.

NETeller quit the United States in January, abandoning 65 percent of its business, after authorities there arrested its two founders in a crackdown on online gaming.

A month later, NETeller said U.S. prosecutors had seized funds, stopping U.S. customers from accessing their money.

The firm said on Wednesday it had signed agreements with the United States Attorney’s Office for the Southern District of New York (USAO) and consulting group Navigant Consulting Inc to outline terms and a timeline under which it would work towards distributing funds to its U.S. customers.

“Per the agreements, the group anticipates that within the next 75 days it will announce a plan by which the funds will be distributed to U.S. customers,” NETeller said in a statement.

The firm said in February that the amount of funds seized by the USAO or otherwise restricted by third parties did not exceed $55 million.

The legality of Internet gambling in the United States was ambiguous for many years, but it was effectively banned last October when U.S. President George W. Bush signed legislation outlawing gaming financial transactions.

The big UK stock market-listed companies pulled out just ahead of the ban, although some privately owned Web sites such as and Pokerstars continued to take wagers through payment processors.

NETeller requested its shares be suspended in January, after its Canadian founders, Stephen Lawrence and John Lefebvre, were charged with handling billions of dollars in illegal gambling proceeds.

Related News

  • 03 December 2010

    Republicans Fear Secret Online Gambling Bill

    At least three Republicans in the U.S. House, Representatives Spencer Bachus, Dave Camp and Lamar Smith are raising a concern over what they see as an effort in this lame duck session of Congress to pass legislation that would legalize online gambling in the United States.

    Read full article
  • 14 December 2010

    Will There be Legal Online Gambling in the United States?

    Its seems like those of us in favor of regulated online gambling are on pins and needles lately, much like in 2006 when things looked like and eventually did go the other way with the passing of the UIGEA. Every day there seems to be a little more information coming out as to the possibility of having some sort of legalized online gambling in the United States before Congress adjourns.This week, casino industry’s top trade group, The American Gaming Association, said that it supports U.S.

    Read full article
  • 20 December 2010

    Legalized Gambling in U.S. Running Out of Time

    “On behalf of the millions of Americans who play online poker, I am disappointed Congress has not acted to implement important licensing and regulation of this growing industry. Not only will this include valuable consumer protections, but it also will pump much needed funding and jobs into the weakened U.S. economy. It’s a missed opportunity, pure and simple.

    Read full article