NETeller Trying to Work Out a Deal with the U.S. Department of Justice...By Hartley Henderson

[Rogthedodger]

The recent arrests of John Lefebvre and Stephen Lawrence, combined with the subpoenas issued against some financial institutions, has caused incredible headaches for Americans with money in their NETeller accounts. After the UIGEA was passed in October, NETeller examined their situation and announced they would be phasing out American clients. It was clear the company would stop accepting U.S. accounts in early 2007 but wanted a bit of time to ensure that all accounts could be settled properly and that NETeller could get their affairs in order with regards to the worldwide merchants they still offer transfers to. To most individuals this would seem like a reasonable request, but apparently not to the United States government who is clearly on a witch hunt against anything and everything associated with online gambling with regards to the United States. Consequently, the exact situation that NETeller wanted to avoid has now happened.

Every U.S. banking partner has stopped all association with the company meaning that Americans have absolutely no way of getting to their money. NETeller will not process any withdrawals for Americans, nor will U.S. banks accept EFTs from Americans that come from NETeller, so the money is literally held hostage at this point. NETeller clearly does not want to keep the money, but they are also doing little to help Americans who are stuck. Several non Americans have tried to help out their American counterparts by taking peer to peer transfers from them and then withdrawing the money for them, but NETeller appears to be stopping all of these transactions from being processed. And then to add insult to injury, NETeller is freezing the non American accounts that take the transfers.

Upon talking to some people at NETeller, as well as the p.r. firm representing them, it appears NETeller has no interest in giving more information. The company's only response to numerous emails and phone calls was to tell me that they had nothing more to add. And in one call, an individual at the company actually threatened me if I didn't stop "harassing" them.

Fortunately, the news is not all bad. According to Russ Hawkins, CEO of MajorWager.com, NETeller is currently working with the U.S. department of justice to try and conceive a way of getting the money out for Americans, although more details are not known at this point. It has also been reported on other sites that all of the U.S. player's money is currently sitting in an escrow account at a British bank, although this was neither confirmed nor denied to me by the company. Clearly it is not in the best interest of anybody to have this money sitting in limbo. It does not serve NETeller who just wants to get on with their business, it does not serve the U.S. department of justice who clearly doesn't want to appear as if they are holding their own citizen's money hostage and it clearly doesn't serve the NETeller customer. As well, if the money was back in the proper American bank accounts it could be used for purchase on goods and services which in turn helps the U.S. economy.

I have requested more information from individuals at NETeller in both the Isle of Man and Calgary, as well as from a spokesperson for the company and for the Isle of Man itself. As soon as more details are known they will be posted.

01-31-07
Hartley Henderson
MajorWager.com
henderson@majorwager.com

http://www.majorwager.com/frontline-414.html

[Praesto]

Originally Posted by Rogthedodger

According to Russ Hawkins, CEO of MajorWager.com, NETeller is currently working with the U.S. department of justice to try

According to Big "D", CEO of Pasta's sportsbook, they are slap-dicking us around. I got out of neteller about a year ago, but feel sorry for you guys. I can't wait to see what transpires after the superbowl.

[SwampHog]

Well done, especially like the tie-in to the economy today.

[Dell Dude]

Let us remember the real villians in all of this. It's not NETeller. It's the US Feds. They are the ones who shut NETeller down and made it impossible for them to do any transactions for Americans. You'd think NETeller was financing global terrorism. This is an outrageous abuse of power. As the article stated, NETeller was in the process of cutting off Americans anyway.

That Friedman guy from the NY Times said it best on Meet The Press. He said before Bush people from other countries admired and looked up to America as a place of hope and optimism. Now they see nothing but fear and loathing. Bush ruined our image. We're running around, invading all these countries, arresting all these foreigners, going after all these offshore business, kidnapping (yes, kidnapping - there was a story about that today) people from other countries and shipping them to secret locations to tortue them, and doing it without the knowledge or consent of the country's government. And we're spying on Americans at will without even a thought about the Constitution. And he still continues to get away with all this.

[j]

...it does not serve the U.S. department of justice who clearly doesn't want to appear as if they are holding their own citizen's money hostage

I don't think they think they appear that way at all. And it's not like their fellow citizens are going to get up in arms because a few thousand gamblers have some funds frozen.

[MRW2276]

So true Dell: I was just saying yesterday to someone. If I only lived somewhere else, but the US I could be making so much money. I'm really thinknig about moving to europe for a while and see if it's any better.

[marc]

If Neteller wanted to pay us they could. You can't tell me that a small book like Igotsports cna pay thier players, but a huge company like neteller can't find a processor that they could subcontract out to.

The only reason why Neteller won't pay US residents, is simply because they don't want to. They don't want to pay us, because they think that gives them bargaining power with the DOJ. And we've already seen from BOS, that the doj doens't give a damn whether we all get stiffed or not. So if Neteller is going to make us wait until they cut a deal, then we won't be seeing our money any time soon. The only way we will get our money is after a lengthy court battle

[SwampHog]

If I was Neteller I'd do the same. In case you Repubs missed the memo, everyone acts in their own best self interest, act accordingly. You think you're gonna change the rules of life, you think a couple cluster bombs are gonna turn everyone onto Jesus, rend insurgincies into death throes? Actually, you do, and I don't have the time to teach basic opening theory to dumbasses from Nebraska -- when you get your head out of your ass, and get to the middle game intact, give me a call. Until then, enjoy your cubicle job.

Not aimed at you marc, just letting loose with the exact same aggravation that prompted your post.

[MRW2276]

but marc you fail to see who's at fault here. If the stupid DOJ didn't cause this in the first place it would be business as usual and you'd have your money.

[marc]

MRW,

I've made a lot of credit card deposits to honrable books who have always paid me. USing your lagic, that since the DOJ is putting the screws to Neteller, so Neteller has the right to screw all thier US customers, maybe I should turn around and do a massive chargeback. Agian using your logic, if netller won't pay me becuase of the doj, and BOS won't pay me, becuase they claim other people owe them, maybe I should just stiff every book i can, because neteller and BOS won't pay me.

People with integirty don't operate this way. Neteller is doing the very same thing BOS did. They are shutting down, and stiffing everyone on thier way out.

To use another analogy, suppose I own a store, and you walk into my store to buy something. Than an armed robber comes in. Out of fear I grab you, and use you as a human shield. The robber shoots you and runs away. Who do you blame. Do you blame the robber, do you blame me, or do you blame the two of us.

SUre I'm upset with the DOJ, but it's not like they've frozen netelelrs assets, or have told Netelelr they can't pay us. Neteller, for theri own reasons have chosen not to pay us.

Remember, Neteller has over $100,000,000 dollars belonging to US cusomters. They can just do absolutley nothing, and in 6 months that have earned close to 2.5 million in interest. That's a pretty good reason not to pay us right there.

[Highwayman]

“After the UIEGA was passed in October, NETeller examined their situation and announced they would be phasing out American clients. It was clear the company would stop accepting U.S. accounts in early 2007 but wanted a bit of time to ensure that all accounts could be settled properly and that NETeller could get their affairs in order with regards to the worldwide merchants they still offer transfers to.”

“…announced they would be phasing out American clients.”

Ironic how supporting evidence of this “phase out” claim was conveniently omitted by the author here, perhaps there was NO public ANNOUNCEMENT from Neteller regarding the “phasing out of American clients,” which obvious has lead to the current dilemma. Show us when and where this announcement was made.

“Americans have absolutely no way of getting to their money. NETeller will not process any withdrawals for Americans…”

Neteller has not publicly made an announcement regarding their UNWILLINGNESS to process American w/d requests…although the result may be the same as their inability however, there is a big liability difference between one’s inabilities and their unwillingness, with unwillingness implying the ability is available but not being exercised.

BTW: Neteller has not responded to requests made as to which methods may currently be available for American clients...remember, Neteller's stock trading remains suspended ever since rolling back EFT's from accepted to pending status blaming system error.

“NETeller is freezing the non American accounts that take the transfers.”

Why isn’t the legality of freezing non-American accounts receiving p-to-p transfers not being questioned or challenged?

“NETeller has no interest in giving more information.”

“NETeller is currently working with the U.S. department of justice to try and conceive a way of getting the money out for Americans, although more details are not known at this point.”

If Neteller is not providing information, how can it be assumed that they are even in communication with the DOJ let alone seeking viable methods to process American funds?

And if Neteller happens to be providing information, is it to the DOJ? Speculate where that is likely heading for a moment.




Notes & Thoughts:

FBI as publicly stated that they view such offshore gaming funds to be “illegal money” which happens to contradict the “legal tender” statement printed upon it but provides insight into the FBI’s view here.

FBI/DOJ could likely have brought allegations against Steve & John for year’s prior to Pinnacle’s non-American service announcement but conveniently pinched the Neteller founders within days of Neteller capturing the American funds from the Pinnacle w/d mandate…happenchance or thoughtful planning?

IF Neteller is currently negotiating with the American DOJ as to how they may return “illegal money” to Americans, what results can reasonably be expected?



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[Hartley]

Highwayman in response to your first question. This was on Cardplayer's site. It seems pretty clear they wanted the 270 days that was basically granted with the passing of the UIEGA to comply with the law.
___

NETeller has decided to take a more cautionary approach in dealing with the United States’ recent attempt at stemming online gambling.

In a statement released today, NETeller said it will honor transactions until the Department of the Treasury figures out how to enforce the Unlawful Internet Gambling Enforcement (UIGE) Act. It has until July 10, 2007, to figure out how it will work with banks to stop transactions from financial institutions that work with Americans from transferring money to gambling sites.

Last week, NETeller’s executive vice president Bruce Elliot told a gaming conference in Spain that the company would continue working with Americans.

“I don’t think we have a very big problem,” he said.

But today, NETeller released a statement letting everyone know that it will comply with the UIGE Act when it goes into effect. The statement reads in part:

“NETeller, a company registered outside the US, will comply with the Act and its related regulations as if it were subject to the Act's jurisdiction. This action is intended to ensure that the Company is able to continue to operate with the support of its principal commercial partners and to protect its shareholders, business partners, employees and reputation.

“Various provisions of the Act, including the obligations of financial transaction providers such as NETeller, remain unclear. The uncertainty should be largely resolved when the Secretary of the Treasury and the Board of Governors of the Federal Reserve System issue the regulations they are required to prescribe within 270 days.”

President George W. Bush signed the UIGE Act into law Friday, Oct. 13, when he put his pen to an act designed to boost security at the nation’s ports. The UIGE Act was attached to the act for port safety with the help of Senate Majority Leader Bill Frist in the last session before the Senate broke for a long election-year recess. To read a CardPlayer.com article about it, click here.

Click here to visit our complete legislative archives.

NETeller is a publicly traded company and the Monday after the Senate passed the Port Safety Act, its shares fell from 355 pence to 140 pence. It’s currently trading at 144 pence.

FirePay, NETeller’s rival in the world of third-party banking companies, made it clear to US customers that it planned to stop doing business with them immediately after the President signed the Act into law. FirePay made this announcement soon after the Senate passed the UIGE Act.

Although the Treasury Department has 270 days, that doesn’t mean it has to use all that time. Regulations can and probably will be in place before the deadline.

NETeller claims it moved around $7.3 billion in 2005. The company was founded in 1999 and is located in the Isle of Man with offices in Calgary, London, Hong Kong, and San Jose, Costa Rica.

[Highwayman]

Thanks for confirming that there was NO “phase out” American clients’ plan previously announced publicly by Neteller.

Just checked Neteller website regarding any updates and could not find any evidence that Neteller made any statements today, any assurance that American pending requests will be processed or any mention of voluntary compliance with UIGEA…last update was indicated to be 1/26.

I’m not buying Neteller hired some Cardplayers site to speak upon their behalf…

...perhaps it would be prudent to find reliable information sources in the future?

As we all know “bluffing” is merely a part of a cardplayer’s game.





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[Hartley]

That was posted on Cardplayer's site on October 16th, 2 weeks after the UIEGA was shoved thorough the Port Act.