I hope none of you had a lot of money in your Neteller account like I did.
http://digg.com/other_sports/ANOTHER_HIATUS_IN_NETELLER_SAGA
http://digg.com/other_sports/ANOTHER_HIATUS_IN_NETELLER_SAGA
Neteller patrons to see longer wait for money
Posted 2/14/2007 10:55 PM ET
By Jon Swartz, USA TODAY
SAN FRANCISCO — The waiting game for thousands of U.S. patrons with money tied up in an online payment service under federal investigation just got longer.
The U.S. Attorney's Office for the Southern District of New York late Wednesday said it extended the deadline until March 16 to decide whether to indict the co-founders of Neteller, an Internet money-transfer service popular among gamblers. Stephen Lawrence and John Lefebvre were arrested in January on a charge of conspiracy to transfer funds with the intent to promote illegal gambling
For U.S. customers of the site, it was another delay in their efforts to recoup their money, which remains in Neteller accounts until the legal matter is resolved.
Neteller says U.S. authorities have frozen access to about $55 million in U.S.-based accounts.
"As a result of the restrictions placed by third parties, court-ordered seizures and related legal concerns, (Neteller) is unable to make payments to U.S. customers," says a posting on the company's website.
FBI agent Neil Donovan has said funds are being held in court as potential evidence. He did not provide a timetable on when customers may get their money back.
Though money-transfer companies such as Neteller do business with financial institutions and merchants, many also allow gambling companies to transfer money collected from U.S. gamblers to bank accounts outside the USA. Neteller last month closed its U.S. Internet gambling services, erasing about two-thirds of its business.
A law signed by President Bush in October bans the use of credit cards, checks and electronic fund transfers for Internet gaming. U.S. residents place more than half of all bets to major offshore casinos in an estimated $10.6 billion industry. However, most online gaming sites are based offshore, outside the reach of American law enforcement.
With Neteller's financial future teetering in the balance, consumers might choose less reliable money-transfer services instead, says Ken Dreifach, an Internet attorney.
Posted 2/14/2007 10:55 PM ET
By Jon Swartz, USA TODAY
SAN FRANCISCO — The waiting game for thousands of U.S. patrons with money tied up in an online payment service under federal investigation just got longer.
The U.S. Attorney's Office for the Southern District of New York late Wednesday said it extended the deadline until March 16 to decide whether to indict the co-founders of Neteller, an Internet money-transfer service popular among gamblers. Stephen Lawrence and John Lefebvre were arrested in January on a charge of conspiracy to transfer funds with the intent to promote illegal gambling
For U.S. customers of the site, it was another delay in their efforts to recoup their money, which remains in Neteller accounts until the legal matter is resolved.
Neteller says U.S. authorities have frozen access to about $55 million in U.S.-based accounts.
"As a result of the restrictions placed by third parties, court-ordered seizures and related legal concerns, (Neteller) is unable to make payments to U.S. customers," says a posting on the company's website.
FBI agent Neil Donovan has said funds are being held in court as potential evidence. He did not provide a timetable on when customers may get their money back.
Though money-transfer companies such as Neteller do business with financial institutions and merchants, many also allow gambling companies to transfer money collected from U.S. gamblers to bank accounts outside the USA. Neteller last month closed its U.S. Internet gambling services, erasing about two-thirds of its business.
A law signed by President Bush in October bans the use of credit cards, checks and electronic fund transfers for Internet gaming. U.S. residents place more than half of all bets to major offshore casinos in an estimated $10.6 billion industry. However, most online gaming sites are based offshore, outside the reach of American law enforcement.
With Neteller's financial future teetering in the balance, consumers might choose less reliable money-transfer services instead, says Ken Dreifach, an Internet attorney.
The DoJ has $55m of NETeller's money, imo, strictly to extort them. They'll tell them they won't charge the company with anything if they just 'settle' for a percentage of that $55m.
Then NETeller will be free to pay, and will. This company is still moving forward on all cylinders otherwise. I've continued to use them without incident. (Okay, except for that day they froze my account until I proved I was Canadian. But I was back up and running in four hours.) No reason for them to stiff hundreds of thousands of people. It would be completely counterproductive to their long-term business objectives.
I'd like to add that I won't now be surprised if the DoJ decides not to indict. Their case is pretty poor, for one. This one-month delay buys them the time they need, however, to squeeze some money out of NETeller.
Then NETeller will be free to pay, and will. This company is still moving forward on all cylinders otherwise. I've continued to use them without incident. (Okay, except for that day they froze my account until I proved I was Canadian. But I was back up and running in four hours.) No reason for them to stiff hundreds of thousands of people. It would be completely counterproductive to their long-term business objectives.
I'd like to add that I won't now be surprised if the DoJ decides not to indict. Their case is pretty poor, for one. This one-month delay buys them the time they need, however, to squeeze some money out of NETeller.
I suppose when you think about it neteller did nothing different than paypal...so mabye just a big fine and neteller agrees to stay out of the american market and pay all their u.s customers promptly. That would be the best case scenario I guess. Come on neteller, just give them 30 mil. and be done with it and then pay everyone and grow your non-u.s. market. If they can make a settlement before their stock trades again it would not go down as far.
Not sure if anyone here has read thru Neteller's financials, but I found this little blurb in a question and answer session with the CEO. Whoever this person is had some real good foresight! This was in September of 2006
Operator: Our next question comes from Nitin Arora with Clear Capital. Please go ahead.
Nitin Arora: Hi there. Just a couple of questions. Firstly, given the need for the recent arrests, have NETELLER staff made any requests to management regarding fee and contractual terms and conditions? And secondly, we know that NETELLER uses three automatic clearing houses in the US to process its payments. Now, have any of these clearing partners in the US raised the subject of Department of Justice intervention in their affairs with you?
Ron Martin: The answer to both questions would be "no".
Nitin Arora: Ok. Ok, thank you.
Operator: Our next question comes from Nitin Arora with Clear Capital. Please go ahead.
Nitin Arora: Hi there. Just a couple of questions. Firstly, given the need for the recent arrests, have NETELLER staff made any requests to management regarding fee and contractual terms and conditions? And secondly, we know that NETELLER uses three automatic clearing houses in the US to process its payments. Now, have any of these clearing partners in the US raised the subject of Department of Justice intervention in their affairs with you?
Ron Martin: The answer to both questions would be "no".
Nitin Arora: Ok. Ok, thank you.
This did not happen in Missouri. This is not a civil matter. Isn’t this the same office that charged Jay? Didn’t that whole process take 3 years or so before Jay went to trial?
There is probably 0% chance that anyone will see money for at least 6 months. The only negotiating tool that Neteller has is the hundreds of millions that they are holding. In fact, there are probably making money with the situation, as they are making more in interest than they could possible spend in attorney fees.
Neteller won’t close, but getting funds will take forever, if ever!
There is probably 0% chance that anyone will see money for at least 6 months. The only negotiating tool that Neteller has is the hundreds of millions that they are holding. In fact, there are probably making money with the situation, as they are making more in interest than they could possible spend in attorney fees.
Neteller won’t close, but getting funds will take forever, if ever!
Even if they didn't have weight, it would be the honorable thing for NETELLER to do. Sorry to say this, but if these guys go to jail, NETELLER ought to take every cent due to U.S. citizens and put it in these guys pension funds.
At some point U.S. citizens need to be responsible for the actions of their government.
:youmad:
At some point U.S. citizens need to be responsible for the actions of their government.
:youmad:
Pisses me off too. But think about it, you engaged in a consensual transaction with NETELLER, its founders may spend the next twenty years in prison due to accepting that transaction, but you are demanding that transaction still be honored.
Offer yourself up to serve jail time, you are one of the two parties of the transactions in question.
You ought to be pissed off, that is the point.
Amount owing to US customers is more than $55 million. 2-3 times that amount, likely.
If you think the US government is going to pay US customers from that money, you seriously overestimate the benevolence of the DOJ.
Where that $55 million gets "accounted for" is anyone's guess. NETELLER of course will claim that it all is funds belonging to U.S. account holders (and have the strongest argument given the funds were in USD bank accounts (or in transit) servicing US customers). Unfortunately their argument will be ignored. US government will claim that $55 million either belongs to NETELLER (a portion of their profits from illegal money laundering), or belong to gambling merchants; and will seek forfeiture. My speculation, but unless a deal is made, is probably correct.
You wouldn't feel that way if you had 70k in frozen funds. I feel no responsibility to the former owners of Neteller. My deposits were guaranteed by the current operators of Neteller who are still collecting paychecks. Neteller was the party who was reaping big profits from my transactions. It is easy for you to sit back and say that we should share the blame. Pay me my 70 fucking grand and then I will give you a voice in this.
