Down goes Neteller
-- The founders of Neteller PLC, which handles payments for online gambling companies and others, were arrested by U.S. officials and charged with conspiracy, becoming the latest targets of a U.S. crackdown on Internet gambling.
In a press release, the U.S. Attorney's office in Manhattan said Stephen Eric Lawrence, 46 years old, and John David Lefebvre, 55, have been charged with conspiracy to transfer funds with the intent to promote illegal gambling. The charge carries a maximum of 20 years in prison.
Mr. Lawrence was arrested Monday in the Virgin Islands and is expected to be presented in federal court in St. Thomas by Wednesday, prosecutors said. Mr. Lefebvre was arrested Monday in Malibu, Calif., and is expected to appear in federal court in Los Angeles on Tuesday.
Both men are Canadian citizens. Mr. Lawrence currently resides in Paradise Island, Bahamas. Lawyers for the two men didn't immediately return phone calls seeking comment.
In a statement, Neteller said Messrs. Lawrence and Lefebvre, both former directors of the company, had been detained by U.S. authorities. The company, which is publicly traded in London but generates the majority of its revenue in the U.S. and Canada, said it has sought immediate temporary suspension of its shares pending clarification of the situation.
Neteller, which Messrs. Lawrence and Lefebvre founded in 1999, said the two men don't currently have positions with or a connection to Neteller, other than as shareholders. Neteller, which had three million customers at the end of July, is based on the Isle of Man.
Prosecutors said in their press release that Neteller has been processing Internet gambling transactions since July 2000. The government alleges Neteller facilitated the transfer of billions of dollars of illegal gambling proceeds between U.S. citizens and owners of overseas online gambling companies.
Prosecutors said the company processed more than $7.3 billion in financial transactions in 2005 and that, according to reports issued by Neteller, 95% of its revenue was derived from money transfers involving Internet gambling companies.
Mr. Lawrence was Neteller's chairman until May and left its board last October, prosecutors said. Mr. Lefebvre was the company's president from October 2000 to 2002 and served on the board until December 2005, the government said.
The detention is the latest in a series of arrests of executives from British companies involved in online sports betting and gambling. Last year, U.S. authorities arrested David Carruthers, the then chief executive of BetOnSports PLC, and Peter Dicks, the non-executive chairman of Sportingbet PLC, while both men were traveling in the U.S.
The arrests come as U.S. authorities have been taking a harder line on overseas online gambling outfits that have marketed their services to U.S. customers. Last year, authorities arrested David Carruthers, the then chief executive of BetOnSports PLC, and Peter Dicks, the non-executive chairman of Sportingbet PLC, while both men were traveling in the U.S.
President Bush signed into law legislation in October that makes it illegal for banks and credit-card companies to process payments from U.S. customers to online gambling sites. In response, several online gambling companies have withdrawn from the U.S market
In a press release, the U.S. Attorney's office in Manhattan said Stephen Eric Lawrence, 46 years old, and John David Lefebvre, 55, have been charged with conspiracy to transfer funds with the intent to promote illegal gambling. The charge carries a maximum of 20 years in prison.
Mr. Lawrence was arrested Monday in the Virgin Islands and is expected to be presented in federal court in St. Thomas by Wednesday, prosecutors said. Mr. Lefebvre was arrested Monday in Malibu, Calif., and is expected to appear in federal court in Los Angeles on Tuesday.
Both men are Canadian citizens. Mr. Lawrence currently resides in Paradise Island, Bahamas. Lawyers for the two men didn't immediately return phone calls seeking comment.
In a statement, Neteller said Messrs. Lawrence and Lefebvre, both former directors of the company, had been detained by U.S. authorities. The company, which is publicly traded in London but generates the majority of its revenue in the U.S. and Canada, said it has sought immediate temporary suspension of its shares pending clarification of the situation.
Neteller, which Messrs. Lawrence and Lefebvre founded in 1999, said the two men don't currently have positions with or a connection to Neteller, other than as shareholders. Neteller, which had three million customers at the end of July, is based on the Isle of Man.
Prosecutors said in their press release that Neteller has been processing Internet gambling transactions since July 2000. The government alleges Neteller facilitated the transfer of billions of dollars of illegal gambling proceeds between U.S. citizens and owners of overseas online gambling companies.
Prosecutors said the company processed more than $7.3 billion in financial transactions in 2005 and that, according to reports issued by Neteller, 95% of its revenue was derived from money transfers involving Internet gambling companies.
Mr. Lawrence was Neteller's chairman until May and left its board last October, prosecutors said. Mr. Lefebvre was the company's president from October 2000 to 2002 and served on the board until December 2005, the government said.
The detention is the latest in a series of arrests of executives from British companies involved in online sports betting and gambling. Last year, U.S. authorities arrested David Carruthers, the then chief executive of BetOnSports PLC, and Peter Dicks, the non-executive chairman of Sportingbet PLC, while both men were traveling in the U.S.
The arrests come as U.S. authorities have been taking a harder line on overseas online gambling outfits that have marketed their services to U.S. customers. Last year, authorities arrested David Carruthers, the then chief executive of BetOnSports PLC, and Peter Dicks, the non-executive chairman of Sportingbet PLC, while both men were traveling in the U.S.
President Bush signed into law legislation in October that makes it illegal for banks and credit-card companies to process payments from U.S. customers to online gambling sites. In response, several online gambling companies have withdrawn from the U.S market
posted by blog_name at
3:24 PM
1 Comments:
I guess I have to simply turn my $200 in Ultimate Bet into 5 million and then have the check sent to me.
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