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Neteller offer some hope that US players
#65 - 1--admin--Neteller offer some hope that US players--2007-07-22 22:03:33
#Press releases from the embattled Isle of Man-based e-wallet Neteller today
(Wednesday) offer some hope that US players may at last see some of their funds
frozen since January this year. In a settlement with Department of Justice
officials, the e-wallet acknowledges wrongdoing in regard to online gambling
financial transactions in the USA, and agrees to provide information to US
authorities, and to a two year "probationary" period in return for deferred
prosecution on federal offences. The company will have to part with a hefty $136
million cash forfeiture to the United States government.
With the American legal issue apparently under control, the e-wallet can now
move forward with plans to publish its delayed annual accounts for 2006,
hopefully leading to a re-listing of its shares on the AIM.
Most important of all, however: the company says that US players will soon be
able to withdraw funds from frozen Neteller accounts, although no comment is
made on the question of interest accrued.
The statement advises that Neteller is using its best efforts to allow
withdrawal requests as soon as possible, and that US customers will be able to
sign in to their accounts to request the withdrawal of their funds by no later
than 30 July 2007. The exact date upon which US customers will be able to make
requests will be communicated to US customers via email and through the Neteller
website.
Ron Martin, Neteller President & CEO, said "This agreement resolves the USAO's
investigation relating to the Company's former US business activities. We
believe that this settlement is in the best interests of Neteller and its
shareholders.
"Our customers, employees and shareholders have all patiently waited for this
resolution. We anticipate within the next few weeks that we will have fully
implemented the plan for the return of funds to our US customers and are hopeful
that, by that time, we will have restored the company's shares to trading on
AIM.
"We can now begin to refocus our efforts on building and strengthening the
Neteller business in the growing markets of the European and Asia Pacific
regions. I look forward to sharing further information about the Company's
progress over the coming months."
In its public statement, Neteller reveals that it has entered into a Deferred
Prosecution Agreement ("DPA") with the United States Attorney's Office for the
Southern District of New York ("USAO") which represents the resolution of the
USAO's investigation into the company.
Neteller has therefore consented to the filing of a criminal information
relating to transactions between Internet gambling merchants and persons located
in the United States.
The statement specifies that the USAO has agreed to defer the prosecution of any
federal charges and, as a consequence, Neteller will not be convicted of any
federal crime, as long as it fulfils the set conditions of the Deferred
Prosecution Agreement during the two year term that has been negotiated. At the
conclusion of the two year term, the criminal information will be dismissed.
The United States District Court for the Southern District of New York has
approved the deferral of the prosecution. As part of the DPA, Neteller has also
agreed to forfeit US$ 136 million to the United States. This amount includes the
approximately US$ 60 million that the USAO has previously seized.
The company will now seek to publish its audited annual accounts for 2006 and
have its shares restored to trading on AIM as soon as practicable thereafter.
Key terms of the Deferred Prosecution Agreement
The settlement takes the form of a two year Deferred Prosecution Agreement with
the USAO. In the DPA, Neteller has consented to the filing with the United
States District Court for the Southern District of New York of a criminal
information charging the e-wallet with participating in a conspiracy in
violation of certain US laws. If Neteller fulfils its obligations under the DPA,
the criminal information will be dismissed, following the two year term.
Specifically, the DPA contains the following main points:
Neteller, as detailed in the "Statement of Admitted Facts" attached to the DPA,
admits that it had operated in the US an unlicensed money transmitting business
and had participated in the performance of financial transactions for the
purpose of promoting unlawful transactions between internet gambling merchants
and persons located in the US.
Neteller agrees that it will pay an amount to the United States totaling US$ 136
million which is disgorgement of certain profits received from the activities
described in the Statement of Admitted Facts. This amount includes the
approximately US$ 60 million that the USAO has previously seized. Neteller
agrees that it will satisfy the remaining portion of its forfeiture obligation
with a payment of US$ 40 million to be paid on or before 15 October 2007, and
the remaining balance (approximately US$ 36 million) to be paid on or before 17
January 2008.
Neteller agrees to cooperate fully with US authorities in all matters relating
to the ongoing investigations by the USAO.
Neteller agrees to fully implement procedures and controls to prevent illegal
transactions between internet gambling merchants and persons located in the US
and to continue to retain Navigant Consulting Inc., a forensic accounting firm,
to monitor its compliance with these procedures and controls.
Restoration of trading to AIM
Further to the Neteller announcement of 13 July, the company informs that it
continues to make progress regarding the ongoing suspension of its shares from
trading on AIM. Discussions with its advisers and AIM continue, and the
understanding is that the admission of the e-wallet's ordinary shares to trading
on AIM has not to date been cancelled.
The statement ends with the assurance to investors that: "With today's
announcement of a resolution of the USAO investigation, the Company is now
focused on finalising and publishing its audited annual accounts for 2006. The
Company will endeavour to post the 2006 accounts to its shareholders as soon as
practicable following which the Company anticipates that trading in the
Company's ordinary shares on AIM will be restored."
Simultaneously, the US authorities issued a statement with the same information. - --comments-->0--239--3
