Feeds

Neteller reaches supergrass agreement with DOJ

US customers to get money back no later than 30 July

Top 5 reasons to deploy VMware with Tegile

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York, and at the end of two years, if the DOJ considers Neteller's cooperation to have been sufficient, the charges are withdrawn.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

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.