Neteller founders arrested, sources say

[Minnow]

More information was beginning to surface during the late night hours regarding the arrests of two NETeller founders. The company is the biggest third party money processing company catering to the online gambling industry.

John LeFevre was reportedly taken into custody at his Malibu home during the early morning hours of Monday January 15 according to sources close to Gambling911.com.

"Both (founders of NETeller) have houses in the USA," the source disclosed. "That is why they were in the US...they spend a great deal of time there."

While a bill to curb some forms of online gambling went into effect this past October, these arrests indicate a more prolonged investigation.

LeFevre, a one time acid loving hippie, started the hugely successful company with Steve Lawrence in 1999 but retired in 2002 in Costa Rica. LeFevre loved recounting his days as a flower child and rebel, who did have brushes with the law during his most rebellious years in the 1960's.

LeFevre, now in his 50's, shaved his heavy disheveled bush of hair a few years ago. The frolicking fun man eventually settled down and got married. He was once a favorite personality heavily profiled by the Gambling911.com website, but in recent years LeFevre has maintained a relatively low profile.

Unless government officials are torturing or starving him, he is probably the last person in the world who will back down, though it should be pointed out that our initial sources have stated that LeFevre is yet to be charged with any offense.

Steve Lawrence served as Chairman of Neteller until October 13, 2005.

"He (Lawrence) resigned and both men have substantial holdings of stock as well," another source disclosed to Gambling911.com Monday evening.

NETeller is a publicly traded company on the London Stock Exchange. Most of the company's current executives reside in and around the Isle of Man, a crown dependency of Great Britain, right off its coast, which serves as a primary online gambling jurisdiction. The Isle of Man is also home to PokerStars.

NETeller executives were expected to issue a statement regarding the arrests some time after midnight Eastern Time.

Likewise, online gamblers who have become dependent on NETeller, fear for the worst. NETeller was one of the few publicly traded internet gambling related firms to continue doing business with US citizens.

Details of the arrest were not known at press time late Monday evening.

Individual US states have frowned upon NETeller and other similar third party money transaction companies in the past. Maryland, for example, requires that banks be physically based in the state in order to conduct business with its citizens. NETeller voluntarily stopped accepting customers from that state a few years ago.

In 2002, New York State's then Attorney General, Eliot Spitzer, went on a rampage against PayPal, forcing that third party money transaction firm to stop taking business from New York citizens of the purposes of online gambling. Spitzer also demanded banks in the state do the same.

Then there is Louisiana State, which seems more concerned with going after online gambling company operators than cleaning up the mess left by Hurricane Katrina.

It has issued numerous arrests warrants against online gambling executives including a former Sportingbet non-executive chairperson who was arrested during a routine check at New York's JFK airport this past summer. He was later released after New York State cited inadequate laws to have him extradited to Louisiana.

Last July, now defunct BetonSports CEO David Carruthers, was arrested and charged while changing flights in the United States on various charges including money laundering and tax evasion. He has plead "Not Guilty" and intends to fight the case. Carruthers is a British national who remains under house arrest outside St. Louis, Missouri.

Last week PinnacleSports stunned an already shell-shocked industry by announcing it would part ways with US customers effective immediately this past Thursday. The US made up an estimated 60% of its customer base.

Pinnacle claimed that the recent legal environment in the States made it difficult to process transactions, though other online gambling companies have suggested it is no more difficult than prior to the passing into law a measure that would curb some forms of internet gambling by holding banking institutions responsible.

gambling911.com

[drunkguy]

http://today.reuters.co.uk/news/arti...HP-C6-Shares-2


LONDON (Reuters) - Online money transfer firm NETeller said on Tuesday two of its founding shareholders - Stephen Lawrence and John Lefebvre - had been detained by U.S. authorities on Monday.

It said neither Lawrence nor Lefebvre had any current position with or connection to the company, other than as shareholders.

It also said the group (NLR.L: Quote, Profile , Research) had not received any communication or correspondence from any U.S. authority regarding the matter and the board had sought immediate temporary suspension of its shares.

[ElCattivo]

Originally Posted by Onasoapbox

The Isle of Man? Is their army as big as Antigua's?

According to Wikipedia they have got about 140,000 active soldiers ...

+ a Navy, an Air Force, and Marines ...

Hint ... Isle of Man is part of the biggest American Ally ...

[JC]

Can I get odds this is a state case?

Odds on Louisiana please? I am sure they are pissed and trying to recover the money they spent on the Dicks case.

Or, it could be the latest victim of the Feds in the Eastern District of Missouri?

[Onasoapbox]

What will top of the line books, do without Neteller for US players? I know for me; Sadly I won't be using them anymore. (The possibility of having my bank account closed; regardless of the odds is one I can't take. Plus I'm not going to compound the matter by opening another checking account.)

Where does the industry go from here for the smaller players?


Also --I did a google search on Neteller and one pages said they also have an office in China? (Is that POSSIBLE?)

[clevfan]

Mr Lefebvre's last log in on his MYSPACE was yesterday

www.myspace.com/solongjohn

[clevfan]

and his site for his band he logged in today:

www.myspace.com/johnlefebvre

[skilled27]

Originally Posted by Onasoapbox

What will top of the line books, do without Neteller for US players? (Is that POSSIBLE?)

Top of the line books will never have a problem in this area. The best thing to do is start sending CASH. Get paid in checks. Books use to send WU payouts, they should start using these (WU and moneygram) for cash payouts again. Surely they will, why wouldn't they? It solves everything.

Also there are many many other options other than Neteller and isnt it extremely easy to open a checking account based in another country? Like I could do it today and be using it this week? As long as you pay taxes and don't hide money (report it on taxes) they aren't going to go after you as an individual gambler. At least this is what I would assume. I could be wrong. Any thoughts?

As far as the neteller guys, they dont even work for neteller anymore. It all just depends on if the statue of limitations has run out on the charges the feds are looking to hit them with i guess.

[clevfan]

One thing I forgot to say....KUDOS to Sting and Gambling911 for getting the scoop on this story hours before mainstream media did

[Swish]

What should people do with their funds that are in Neteller?

[auspice]

"When fascism comes to America, it will be wrapped in the flag and carrying a cross."
Sinclair Lewis, 1936

[KayCee]

Originally Posted by JC

Can I get odds this is a state case?

Odds on Louisiana please? I am sure they are pissed and trying to recover the money they spent on the Dicks case.

Or, it could be the latest victim of the Feds in the Eastern District of Missouri?

You need not look any further than Las Vegas to find the culpret.

[Belmont]

Another say day...

[tj1800]

Originally Posted by clevfan

One thing I forgot to say....KUDOS to Sting and Gambling911 for getting the scoop on this story hours before mainstream media did

Yes. Great job indeed.