Neteller founder Stephen Lawrence pleads guilty

The co-founder of Neteller PLC (PINK:NTLRF) Stephen Lawrence pleaded guilty to a charge of criminal conspiracy on Friday.

Neteller founder Stephen Lawrence pleads guilty The long Neteller saga is finally coming to an end. Today (Friday), Stephen Lawrence told the judge in the New York court : "I came to understand that providing payment services to online gambling Web sites serving customers in the United States was wrong," and leaded guilty to a charge of conspiracy.

Lawrence and another Neteller director, John David Lefebvre, were arrested in January of 2007. Lawrence was charged with violating old laws prohibiting the use of electronic wires to send or receive information that facilitates illegal gambling, also known as "The Wire Act".

According to reports, the lawyers of Lawrence said he was cooperating with U.S. investigators and also had agreed to be at least partly responsible for the $100 million the government is seeking in restitution.

Sentencing has been scheduled for October. It is unknown at this time whether Lawrence will face prison time. He is facing a maximum of five years, but any punishment is likely to be reduced by his cooperation in the case.

Lefebvre pleaded not guilty and is case is currently pending.

Both men are Canadian citizens and were not holding any positions at Neteller at the time of their arrests. Neteller PLC was once the biggest financial transaction processor for the online gambling industry in the U.S.

Published on 06/29/2007