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Neteller Releases Update On Us Online Gambling Funds
But US players' funds will be frozen for longer, without
interest and shares remain suspended
Besieged Isle of Man e-wallet Neteller issued a press release updating
the public on its situation this week, but it wasn't the news many
have been waiting for - in fact it followed pretty closely the wording
of previous announcements (see previous InfoPowa reports)
Investors will be disappointed to learn that the company's shares,
suspended on the London AIM since January this year, are to remain
in limbo for the foreeable future. The reason? ".....the continuing
uncertainties the company faces although the company is making progress
towards achieving restoration of trading."
And the full year results ended December 31 2006 will not be immediately
forthcoming, either - the announcement advises that Neteller is,
surprisingly still working towards the finalisation of its audited
annual results and is yet to announce some six months into the new
financial year the date on which the 2006 numbers will be published
to the market.
US players receive little in the way of good news, either. Interest
on their frozen funds, tied up since January will not be paid by
Neteller according to its announcement, which deals rather brusquely
with the subject thus: "In accordance with NETELLER's Terms
of Use, no interest on account balances will be paid." Message
board exchanges around the Internet indicate there are many players
with large balances in their Neteller accounts, and this will be
an especially hard blow for them.
US players who hoped to have their funds returned within the 75
days mooted by Neteller on March 21 will be disappointed by the
news that although Neteller has agreed to a plan for the distribution
of funds to its US customers, it's not going to happen right away.
Advising that the firm is still "cooperating" with the
US Attorney's Office for the southern district of New York, the
announcement says that the big payout won't happen until the US
investigation is concluded...and that could take until July 13 or
longer.
On 21 March 2007, Neteller announced that it signed agreements
with the USAO and Navigant Consulting, Inc. to develop a plan for
the distribution of funds to US customers (see previous InfoPowa
report). The current statement reports that: "Since then, in
accordance with the agreements, the company has worked with the
USAO and Navigant to develop the plan. The Distribution Plan is
now agreed upon, and the company anticipates implementing the plan
upon the resolution of the investigation."
The agreed distribution plan details the process and mechanisms
for the return of funds to US customers. For now, the company advises
US players that:
US customers will be able to access their NETELLER accounts online
for a certain time and make a request for their funds.
In accordance with NETELLER's Terms of Use, no interest on account
balances will be paid.
NETELLER will not charge fees to customers to process requests
for funds.
Funds will be distributed either by electronic transfer to the
bank account on record with NETELLER or by a cheque to be sent to
a mailing address as confirmed by the customer.
If a US customer has a bank account already registered with NETELLER,
funds transfer will be by electronic transfer subject to confirmation
by the customer that the registered bank account remains valid.
US customers will receive the entire balance of funds in their
account; no requests for partial payments will be processed.
US customers cannot use their accounts for any transaction other
than to request the funds.
Further information will be communicated to NETELLER's US customers
via email, through our website and through a press release once
the date for implementation of the Distribution Plan is finalised.
Neteller has also revised upwards its estimate on how much cash
has been seized by the US Attorney's Office. Neteller originally
informed the market that approximately US$ 55 million had been seized
by the USAO or otherwise restricted by third parties. Following
further consultation with the USAO, the company currently believes
this amount could be up to approximately US$ 60 million.
Ron Martin, Group President and CEO of Neteller said: "The
agreement on the Distribution Plan represents a milestone in our
cooperation with the US authorities. While we are disappointed not
to have been able to return funds to our US customers at this point,
we believe that the steps we have made in our discussions are significant
and we hope to be able to announce further progress with the USAO
by 13 July 2007."
Earlier this week, we reported on a further continuance in the
case against Neteller founders Stephen Lawrence and John Lefebvre,
who remain untried and on bail of $5 million each after six continuances
since their arrest and detention in January this year. It will now
be at least the end of June before they appear in court.
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