Neteller's US Customers to See Payments Soon

ISLE OF MAN – As reported by the Financial Times; "Neteller is preparing to hand back $55m to US customers after reaching an agreement with the US Attorney's Office as part of the US prosecutor's
  investigation into the payment processor's handling of online gambling transactions.

"The Isle of Man-based company said that agreements signed with the USAO of the southern district of New York and its consultants would lead to the orderly distribution of funds to US customers. It will provide details in the next 75 days.

"Neteller's two founders, Stephen Lawrence and John Lefebvre, were in January arrested on US soil and charged with handling billions of dollars in illegal gambling proceeds.

"The arrests followed a step-up in US action against online gambling, culminating in the passage of the Unlawful Internet Gaming Enforcement Act in September, which bans payment processors from handling online gambling wagers.

"Since the arrests in January, Neteller has quit the US, suspended share trading and seen $55m of funds seized by US prosecutors. The company had said the funds had been in transit to its US customers, who had provided two-thirds of the company's revenues.

"'We continue to be committed to returning funds to our US customers and working with the US Attorney's Office,' said Ron Martin, the group's president and chief executive.

"'Progress, while not always visible to the outside observer, has been steady and these agreements mark a milestone in the process.'

"Its statement coincided with an announcement from Sportingbet that warrants issued by the Louisiana state police for the arrest of executives for 'gambling by computer' had been dropped.