Poker Perambulation

I’ve written a lot about the situation. Very early on I said the problem wasn’t so much Neteller as it was their bank – Barclay PLC. The bank has a large U.S. Footprint. Their Exchange Traded Funds are a part of our market and a lucrative product in their brokerage operation. They are not going to get into a legal contest with our government. I was surprised to see funds again flow after the first hint that Neteller and it’s bank had issues to resolve. There was an early freeze that was quickly resolved and access was restored without serious disruption.

Maybe the one saving grace is that Iggy’s reference is to Two Plus Two’s forum. It is the home of weird/bad/off-the-wall information. And check out Amy’s blog on the subject.

The current argument seems to revolve around the wire act – the UIGEA isn’t part of the picture. The EU has implemented some rather draconian laws about this activity. Governments must extradite. I don’t know about fund but they are likely to be at risk under those statutes too.

If the government makes it’s case against the Neteller executives, it may continue the view that this was an illegal activity that laundered money. It would seem, from my laymen’s view, that they could then use RICO to seize the funds. Gambling is also stated as grounds for in that act. If that transpires, it isn’t a slam dunk for them. I’d think they’d end up in British courts to seek the funds. And that would force consideration of fiduciary responsibility in actions that aren’t contrary to British law.

The worst case scenario in RICO is that we are eligible participants in the scheme and that carries up to $25,000 in fines and up to 20 years incarceration. Of course that wouldn’t happen. But it does show how the government has a lot of much bigger individuals by the short hair here.

The thing that could also expose many is the amounts paid to U.S. Citizens. That could give a great database to the IRS. If you took the money and ran without sharing with Uncle, you may get a call. For those in that shape, even a revised 1040 at this point would likely have stiff penalties added.

Having painted the worst case scenario, I doubt it will come to that. But you can’t count anything out at this point. The government appears to be on a witch hunt and those can go beyond the norm. It is a subject that would generate intense press coverage and pols love that. But those would be against the big guns and not most of our pop gun play.

Remember, this all has a very healthy dose of conjecture with no legal background on my part. It should play out with a whole lot less impact than I’ve outlined. I’m still quite optimistic that I’ll see the small amount I have in limbo there.

ADDENDUM:

It is another two blog day, I fear. Please read my ‘real’ blog which talks about my HORSE play – donkey mode for sure – at Ultimate Bet.

This entry was posted on Wednesday, January 31st, 2007 at 8:10 am and is filed under Journal, Poker Other, poker legislation. Responses are currently closed, but you can trackback from your own site.