NETeller Alert!
A little bird had alerted me a few days ago that it’d be a good idea to remove any funds I might have in my Neteller account. Now I’m understanding, somewhat, why.
Shortly after the Frist Fiasco I had set my Neteller preferences to e-mail me press releases and announcements. This morning I received the announcements that two of the Neteller founders had been arrested in the US and that trading of Neteller shares on the London AIM had been suspended.
Gambling911.com and pokernews.com are all over the story. A press conference with the US Attorney General is forthcoming. Below is the latest statement issued by NETeller:
STATEMENT REGARDING FORMER DIRECTORSNETELLER Plc, the leading independent online money transfer business, today issued the following statement regarding the speculation surrounding two of its former directors and founder shareholders, Mr Stephen Lawrence and Mr John Lefebvre.
While travelling separately in the US, Mr Lawrence and Mr Lefebvre, both former directors of the Company, were detained by US authorities on Monday, 15 January 2007.
Other than as shareholders, neither Mr Lawrence nor Mr Lefebvre has any current position with or connection to NETELLER.
The Group has not received any communication or correspondence from any US authority regarding this or any related matter.
Pending clarification of the situation the Board has sought immediate temporary suspension of NETELLER’s shares.
Further information will be issued in due course.
I’ve made it habit not to leave funds in NETeller - I move them through as quickly as I can. For those of you who have money in there, it might be a good idea to transfer it out until this latest assault gets resolved.
But I have to state the obvious, this does not bode well.
[[[UPDATE]]]
From the US Attorney General:
Michael J. Garcia, the United States Attorney for the Southern District of New York, and Mark J. Mershon, the Assistant Director in charge of the New York office of the Federal Bureau of Investigation, announced today that Stephen Eric Lawrence and John David Lefebvre were arrested yesterday in connection with the creation and operation of an Internet payment services company that facilitated the transfer of billions of dollars of illegal gambling proceeds from United States citizens to the owners of various Internet gambling companies located overseas.
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January 16th, 2007 at 1:41 pm
I wouldn’t worry too much. Their bank is very large and reputable. As a trade stock in Great Britain, they are audited and the funds they hold would be in an escrow account. It is more a shareholder risk.
January 17th, 2007 at 9:51 am
It the liquidity of the funds that I’m worried about.
Not being able to withdraw/move the funds would suck.
January 17th, 2007 at 12:36 pm
I wouldn’t worry too much about the viability of Neteller. They’ve been expanding throughout Europe, and it’s obvious that the two arrestees were popped in response to alleged wire act violations that probably have nothing to do with poker, except to serve as a proxy attack that allows the Feds to use this arrest to deal a body blow to the online gaming (and online poker) community.
I’ve been all over this story on my ownblog, http://loukrieger.blogspot.com, and my conclusion is that your funds are still safe in Neteller, and you will be able to withdraw them as you always have. If Neteller decides not to serve the US market any longer, you should still be able to withdraw your funds, then look for other, privately owned companies, that will rush in to taake their place if Neteller pulls the plug in the US.
________
Lou Krieger
January 17th, 2007 at 6:30 pm
Thank you, Lou. I’m sure you are right. It’s not panic time yet - more of a "proceed with caution" time.