Feeds

Neteller to pay up as feds ease up

Hippie founders not quite off the hook

Beginner's guide to SSL certificates

In more good news for the online gambling industry, Neteller today announced that it has reached an agreement with the US Department of Justice (DOJ) to return funds belonging to American players that had been frozen at the DOJ's request .

Neteller, the online ewallet company that at one time provided payment processing services for over 85 per cent of the online gambling industry, has been in legal limbo since the DOJ arrested two former executives on conpiracy and money laundering charges back in January. Neteller became the primary funding source for the online companies that continued to service the American market after the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) drove the American credit card industry out of the market.

According to draconian American asset forfeiture laws, under which authorities can quickly seize property suspected of use in criminal activity and make it almost impossible for the owner to get it back, the feds could well have just kept the $55m. However, the move to return the money, combined with the ongoing delay in formally charging the two with anything, seems to indicate that the DOJ might be rethinking its hardline approach to the online gambling industry.

The press release notes that Neteller has signed agreements with the DOJ and the forensic auditing group Navigant. The agreement provides a 75-day timeline under which Neteller will work out a plan to return funds in an orderly manner to its one-time US customers. That's great news for Neteller's customers, but the agreement also could well be calculated to provide the DOJ with a very detailed understanding of the payment processing industry as whole, a kind of window onto a world that the DOJ considers of paramount importance in this post-9/11 society.

The arrests of neteller founders John Lefevbre and Stephen Lawrence seem to be turning into a fishing expedition, in line with the subpoenas handed out not long afterward to various European financial institutions a few weeks back. Although a big bust is usually how a US Attorney gets ahead in his or her career - oh, the lights and cameras at those big press conferences! - the bust needs to be followed by an actual conviction.

In its whirlwind attack on the international internet gambling business, the DOJ might finally have bitten off more than it can chew.®

Burke Hansen, attorney at large, heads a San Francisco law office

Secure remote control for conventional and virtual desktops

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.