Feeds

Neteller reaches supergrass agreement with DOJ

US customers to get money back no later than 30 July

Secure remote control for conventional and virtual desktops

Neteller has reached an agreement with American authorities concerning its financial transactions with American internet gambling customers.

The agreement, coming barely a week after two of its former founders reached plea agreements with the Department of Justice (DoJ), requires a forfeiture of $136m to the American government, a sum that includes approximately $60m in American customer assets frozen by the DOJ earlier in the year. Those disputed funds will be returned no later than 30 July.

The resolution of the Neteller case is good for Neteller's American customers, and good for the company itself, but very bad for virtually everyone else in the online gambling industry.

Neteller and the DOJ reached what is known as a deferred prosecution agreement (DPA), in which Neteller admits wrongdoing and agrees to cooperate with authorities in exchange for a conditional sentence. The DOJ files criminal information - basically an indictment without the grand jury hearing - in the Southern District of New York, and at the end of two years, if the DOJ considers Neteller's cooperation to have been sufficient, the charges are withdrawn.

The agreement also paves the way for Neteller shares to be relisted on the Alternative Investment Market (AIM) in London, and requires that financial auditing firm Navigant monitor its compliance with the terms of the agreement.

The end result of this is that Neteller will tell the DOJ everything it knows about the internet gambling industry regarding payment processing or whatnot. Since Neteller provided processing services for about 85 per cent of all online gambling sites, the DOJ stands to receive a treasure trove of inside information about the industry it loves to hate.

Ron Martin, president and CEO, claimed: "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."

That's not all they'll be sharing, to be sure. ®

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

Choosing a cloud hosting partner with confidence

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.