ANNOUNCEMENT FROM US ATTORNEY REGARDING NETELLER

[StarnetGypsy]

My bad, I corrected that. My point was they're were living in the US or traveling in a US territory.

A blatant disregard for "US authority" ...

[alysheba88]

My guess is players are going to be targeted next. And hard. Will go through the books books (no pun intended) and match up the names with IRS returns

[clevfan]

I am still stunned by the fact that someone in Miami helped bring this case on.....what does one have to gain by trying to bring neteller down? It makes me think that someone down there got pinched and started to sing every last detail about the workings of neteller.

[TheGuesser]

The amount of money, time, resources, etc WASTED by our gov't on this crap is beyond frightenning, and as a taxpayer, I'm as disgusted as I can be that one penny of my tax dollars is going to this.
Some enterprising reporter or TV show should really do an expose on all the energy spent on this while Bin Laden Walks free, terrorist sleeper cells exist in this country, and ACTUAL other crimes exist. Really put it on a level that anyone can understand. This is REALLY, TRULY insane, and I cannot be more ashamed of my Country and my Government.

[MRW2276]

It's like the school yard bully. The stupid government knows it can't win vs the arabs now as how do you scare someone who does give a f and lives in a cave. So they will pick on an easier target in gambling instead. Where you are dealing with folks you can acually trace.

[MRW2276]

Originally Posted by alysheba88

My guess is players are going to be targeted next. And hard. Will go through the books books (no pun intended) and match up the names with IRS returns

Unfortunately. You guys better be ready come April/May if any of you actually won any cash. This is real bad.

[MRW2276]

IRS Statute of Limitations: Time Limits to Claim Tax Refunds or to Pay Tax Debts

Time Limits for Tax Refunds, Audits, and Collections
From William Perez,
Your Guide to Tax Planning: U.S..
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Plan Your Tax Strategy Around These Time Limits
The IRS has three years to give you a refund, three years to audit your tax return, and ten years to collect any tax due. Together, these laws are called the "statutes of limitations." They put time limits on various tax-related actions that you and the IRS can take.

You have 3 years to claim a tax refund.
This is measured from the original deadline of the tax return, plus three years. For example, your 2003 tax return was due on April 15th, 2004. 2004 plus 3 is 2007. You have until April 15th, 2007, to file your 2003 tax return and still get a tax refund. File your 2003 return after April 15th, 2007, and your refund "expires." It goes away forever. This is called the statute of limitations for claiming a refund. (This year the filing deadline is April 16th, 2007, because April 15th falls on a Sunday.
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However, the tax code says that you have three years from the original filing deadline to claim a refund. Please file your 2003 tax returns on or before April 15th, 2007, to ensure that your refunds are not lost forever.)

The IRS has 3 years to audit your tax return or to assess any additional tax liabilities.
This is measured from the day you actually filed your tax return. If you filed your taxes before the deadline, the time is measured from the April 15th deadline. For example, you filed your 2006 tax return on February 15th, 2007. The 3-year time period for an audit begins ticking from April 16th, 2007, (the filing deadline) and will stop ticking on April 16th, 2010. On April 17th, 2010, the IRS cannot audit your 2006 tax return unless there is a suspicion of tax fraud.

The IRS has 10 years to collect outstanding tax liabilities.
This is measured from the day a tax liability has been finalized. A tax liability can be finalized in a number of ways. It could be a balance due on a tax return, an assessment from an audit, or a proposed assessment that has become final. From that day, the IRS has ten years to collect the full amount, plus any penalties and interest. If the IRS doesn't collect the full amount in the 10-year period, then the remaining balance on the account disappears forever. The statute of limitations on collecting the tax has expired.

Example of the Statute of Limitations
Let's provide an example based on a real-life scenario. Mr. Smith wants to file 6 years of tax returns: 2001 through 2006. All years he has refunds. If he files by April 15th, 2007, Mr. Smith will receive refunds for his 2003, 2004, 2005, and 2006 tax returns. His refunds for 2001 and 2002, however, have expired.
Let's change the example slightly. Mr. Smith wants to file 6 years of tax returns: 2001 through 2006. In 2001 and 2002, he could have received a refund. In 2003, 2004, and 2005, he owes. Mr. Smith cannot apply his 2001 or 2002 refunds as an estimated tax payment towards his 2003 taxes. His refunds have expired. For the 2003 to 2006 tax returns, the IRS has ten years to collect the full tax, plus penalties and interest, from the date Mr. Smith actually files the returns. If Mr. Smith has a refund for 2006, that refund will be used to pay off his tax debts.


Action Plan Item
It is in your best interest to file your tax returns at your earliest possible convenience. First, you can claim refunds. Second, it starts the clock ticking on the 3-year statute for audits and the 10-year statue for collections.

[StarnetGypsy]

Aly/MRW ..

I disagree. The new anti-gambling bill authorized $10m for its enforcement, I just don't recall how long that was for? End of this Congress, 2/yrs?

The resources needed to track down and arrest John Q. Citizen would be astronomical ... and how they gonna house & feed 30m gamblers? Oh, did I mention most of them are armed to the teeth?

People think Iraq is the worst policy since Vietnam, arresting common citizens wholesale would be political suicide. jmjo

[MRW2276]

Originally Posted by StarnetGypsy

Aly/MRW ..

I disagree. The new anti-gambling bill authorized $10m for its enforcement, I just don't recall how long that was for? End of this Congress, 2/yrs?

The resources needed to track down and arrest John Q. Citizen would be astronomical ... and how they gonna house & feed 30m gamblers? Oh, did I mention most of them are armed to the teeth?

People think Iraq is the worst policy since Vietnam, arresting common citizens wholesale would be political suicide. jmjo

But they will come after the books with accountants you can bet on that. Wouldn't be suprised to see half the customers get an audit in the next few years. Cause you know these guys are going to let them have any and all access to get themselves a lighter sentence.

[StarnetGypsy]

I'm sure they'll look at books and add the info to their existing files on people, MRW, and I don't mean to be disagreeable but last I heard the performing of IRS audits is about 5/yrs behind due to staff shortages, etc ...

Boss "W" Tweed has 2/more years in office and then hopefully things will find a semblence of normalcy again ... either that or we see camps popping up all over the countryside?

[clevfan]

Gambling Enabler Neteller Craps Out

By Burke Hansen in San Francisco
THE REGISTER UK
Published Wednesday 17th January 2007

"Internet gambling is a multibillion-dollar industry. A significant portion of that is the illegal handling of Americans' bets with offshore gaming companies, which amounts to a colossal criminal enterprise masquerading as legitimate business. There is ample indication these defendants knew the American market for their services was illegal. The FBI is adamant about shutting off the flow of illegal cash" - FBI Assistant Director Mark Mershon, United States Attorney’s Office press release, January 16, 2007

The American assault on the online gambling world claimed another victim today, as payment processing giant Neteller suspended trading in its shares on the London Stock Exchange in response to the arrest of two former executives by American authorities.

The United States Attorney's Office for the Southern District of New York unsealed indictments this morning against Stephen Lawrence, Neteller's largest shareholder and former chief executive officer, and John Lefebvre, a former president of the company who retains a significant ownership interest as well. Federal agents nabbed Lawrence in the US Virgin Islands and Lefebvre in Malibu, California - apparently the current executives are clever enough to avoid dipping a toe in any US jurisdictions.

According to today's press release (http://www.usdoj.gov/usao/nys/pressr...ests%20PR.pdf), the Feds began investigating Neteller in June last year, months before the passage of the Unlawful Internet Gambling Enforcement Act, which was hurriedly added to the Port Security Bill under cover of night. Of note is the fact that the men are not being charged under the UIGEA, which doesn't take effect until Juy of 2007 when the 270-day grace period expires.

After all, the alleged illicit activities took place in 2005, well before passage of the act.

Instead, they are charged with "conspiring to transfer funds with the intent to promote illegal gambling" during a period when both men still served on the Neteller board of directors. The press release, however, notes some parallels to the BetonSports prosecutions (http://www.theregister.co.uk/2006/08...ts_leaves_us/), previously covered here, and makes crystal clear the breadth of jurisdiction the DOJ believes it has over online transactions that touch the United States, even via third parties.

Whether going after a reputable payment processor like Neteller is smart policy is another question entirely - what would prevent gamblers from switching to other, less savory processors, with executives hanging out on the beaches of Beirut rather than the beaches of Malibu?

The BetonSports debacle should have made obvious to the DOJ the hazards of puritanical zeal, hammering away at reputable companies only to drive money into the open arms of shady payment processors. The once-reputable BetonSports is now a shell of its former self- it didn't even bother sending an attorney to its arraignment last week, risking contempt of court sanctions. Whether that's a novel legal strategy or a reflection of its financial ruin is unknown, but the American gamblers who formerly poured billions into the company will likely never get their money back.

With friends like the DOJ, who needs enemies. These laws are meant to protect the American public, right?

Neteller found itself in the crosshairs due to the fact that it provided payment processing services to an astonishing 80 per cent of all online casinos, and processed over $7bn in transactions in 2005. The DOJ press release contrasted Neteller's insouciant indifference with the docile response it got from competitor Paypal back in 2003, when Paypal coughed up $10m to avoid prosecution for facilitating these same kinds of transactions. Neteller PLC itself has yet to be charged with anything, though this was a pretty good shot across the bow.

Of course, Neteller could have helped itself by pulling out of the American gambling scene back in October, when everyone else pulled the ripcord. As it is, a couple of laidback Canadians, who, after founding a major corporation, ditched the corporate game to hang out on the beach with a cold one, or update their MySpace pages, will pay the price.

After word of the arrests broke, online gambling enthusiasts managed to dig up Lefebvre's MySpace page (http://www.myspace.com/johnlefebvre), which is full of pictures of the hippie crooner in various bucolic settings, stroking his instrument. We bet he'll soon be singing a different tune, in an environment considerably less peaceful.

[clevfan]

Web Co. Founder Faces Money Charges


By MAT PROBASCO Associated Press Writer
© 2007 The Associated Press

CHARLOTTE AMALIE, U.S. Virgin Islands — A Canadian man who founded a company that processes Internet gambling transactions was led into a U.S. Virgin Islands court in ankle chains to face money laundering charges on Wednesday.

Stephen Eric Lawrence, 46, was accused of funneling billions of dollars in illegal gambling proceeds to overseas betting operations. The former Neteller PLC director was arrested on the island of St. John on Monday on a warrant from the U.S. Attorney's office in New York, said FBI agent Donald A. Neily.

District Court Judge Geoffrey Barnard said he intended to set bail at $5 million. Bail would be set in a Thursday hearing, he said.

Lawrence, who lives in the Bahamas, and John David Lefebvre, 55, are former directors of the Internet payment services company, a type which has grown in popularity as an increasing number of credit card companies have begun refusing to accept payments to online gambling sites.

Lefebvre was arrested Monday in Malibu, California. Both men are Canadian citizens.

In 1999, the men founded Neteller, which is based in the Isle of Man and is publicly traded in the United Kingdom. The company began processing Internet gambling transactions in 2000.

Lawrence left the company's board of directors in October, while Lefebvre left in December 2005, prosecutors said. Together, the men owned as much as 35 percent of the company's outstanding shares.

Prosecutors cited Neteller's 2005 annual report in saying that Lawrence and Lefebvre enabled the company to provide payment services to more than 80 percent of worldwide gaming merchants.

Prosecutors in New York said Neteller in 2005 alone processed more than $7.3 billion in financial transactions, 95 percent of which was derived from money transfers involving Internet gambling.

Lawrence and Lefebvre were charged with conspiring to transfer funds with the intent to promote illegal gambling, and could face up to 20 years in prison if convicted, authorities said.

[StarnetGypsy]

Communicated w/my friend down in Cr and it seems NT has frozen all transactions from the book. Since I haven't received my withdrawal so far in 3/days, I'm convinced ...

[count zero]

I don't get it, what's five million to these guys? Make bail, leave town, give the finger to the USA. Why the hell did all these companies locate offshore if they're going to bend over for the DOJ anyway?

[StarnetGypsy]

Count ..

I'm thinkin so they could get onto the AiM Stock Market in London. That's why WorldGaming moved to the UK, they needed to get off the OTC in the states so more investors would see them.

The main problem from how I see it is as all the exec types begin to go down, they will be rolling over on any and every one. Code? What's that?

I agree w/you tho .. I'd be gone to a country where they don't extradite :)

[clevfan]

Both defendants are being directed to appear in the NY district on January 26, 2007. (This is subject to change.)

[skilled27]

For the IRS to get access to the books don't they have to actually bust a sportsbook first? BOS is the only one that has actually been busted right? Did they go after big winners there?

The other books are merely closing doors to US customers, they aren't being charged with anything. Pinny owners havent been charged with anything right? How can the feds get ahold of Pinny's books when they probably wont even charge them with anything? You guys are paranoid out of this world.

The act was directed at financial intermediaries, not the books themselves. Maybe you guys need to worry about netellers books but thats the only 1 so far, and I seriously doubt there is anything to worry about for joe gambler even if he made a wad and didn't report.

Maybe they might go after a few and make examples out of them (like they did with the stealing of music online) but no way will they go after everyone, gypsy is right they don't have the money nor do they care about the individual gamblers.

[roomguy]

My question is: what is anyone going to do about it? I can't really do anything, cuz I'm Canadian, and I work for Neteller. The very worst that will happen to me, is I'll get laid off, and have to find another job. That's a major inconvenience, but nothing more. We're getting tons of complaints from customers about how we're not letting them send money to merchants, and how they're having such a tough time getting their money out of Neteller. Don't worry, btw, your money isn't going to get lost. We look like the bad guy to a lot of our customers because we're leaving the US, when we're just complying with laws. If you really want to do something, write an angry letter to your congressman. As near as I know, there is no other country in the world that outlaws online gambling. There are some countries to which Neteller does not offer service, but that's it. You have more freedoms, in this aspect, if you're living in China for God's sake!! Land of freedom and opportunity, my ass. I just hope there are a few people out there angry enough to actually do something about it.

[alysheba88]

Originally Posted by StarnetGypsy

Aly/MRW ..

I disagree. The new anti-gambling bill authorized $10m for its enforcement, I just don't recall how long that was for? End of this Congress, 2/yrs?

The resources needed to track down and arrest John Q. Citizen would be astronomical ... and how they gonna house & feed 30m gamblers? Oh, did I mention most of them are armed to the teeth?

People think Iraq is the worst policy since Vietnam, arresting common citizens wholesale would be political suicide. jmjo

Not sure you are following what I am saying. I am not saying they are going after every gambler. But they will target some. And use taxes to do it. That's the way the IRS operates. They focus on a group or certain type of tax payer to get the others to fall into line.