Neteller Finalizes Agreement With Feds. Coming Soon: Your Money

by Lou on July 18, 2007

Neteller, the leading payment processor used by online poker players to transfer funds to and from their accounts, announced that they entered into a Deferred Prosecution Agreement (DPA) with the United States Attorney’s Office for the Southern District of New York (USAO).

This resolves the USAO’s investigation into Neteller. The USAO agreed to defer the prosecution of any federal charges and, as a consequence, Neteller will not be convicted of any federal crime as long the Company fulfils conditions of the DPA during the two year term of the agreement.

The United States District Court for the Southern District of New York approved the deferral of the prosecution. As part of this agreement, Neteller agreed to forfeit $136 million to the United States.

Neteller will allow withdrawal requests as soon as possible and US customers will be able to sign in to their Neteller account to request the withdrawal of their funds by no later than July 30, 2007. The exact date upon which US customers will be able to make requests will be communicated to US customers via email and the Neteller website.

Ron Martin, Neteller’s President and 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.”

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