settled, money back to customers by August
In a press release today,
Neteller has announced its plans to distribute the money back to
their former U.S. customer by July 31st.
a press release today, Neteller PLC. made public their
intentions to complete the process of transferring the money
back to the U.S. customers by July 31st. There are no details
about the actual way of getting the money back, which should be
Here is the full Neteller press release:
NETELLER Plc (LSE: NLR), the independent
global online payments business, today announces that the
Company has entered into a Deferred Prosecution Agreement (“DPA”)
with the United States Attorney's Office for the Southern
District of New York (“USAO”). The DPA represents the resolution
of the USAO’s investigation into the Company.
Pursuant to the DPA, the Company has consented to the filing of
a criminal information relating to transactions between Internet
gambling merchants and persons located in the United States. The
USAO has agreed to defer the prosecution of any federal charges
and, as a consequence, the Company will not be convicted of any
federal crime, as long the Company fulfils the set conditions of
the DPA during the two year term of the agreement. At the
conclusion of the two year term, the criminal information will
be dismissed. The key terms of the DPA are set out in more
detail later in this announcement. The United States District
Court for the Southern District of New York has approved the
deferral of the prosecution. As part of the DPA, the Company has
also agreed to forfeit US$ 136 million to the United States.
This amount includes the approximately US$ 60 million that the
USAO has previously seized.
Additionally the Company announces:
Following this resolution, the Company will seek to publish its
audited annual accounts for 2006 and have its shares restored to
trading on AIM as soon as practicable thereafter.
The Company is using its best efforts to allow withdrawal
requests as soon as possible and US customers will be able to
sign in to their NETELLER account to request the withdrawal of
their funds by no later than 30 July 2007. The exact date upon
which US customers will be able to make requests will be
communicated to US customers via email and through our website.
Ron Martin, President & CEO, said “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
Key terms of the Deferred Prosecution Agreement
The settlement takes the form of a two year DPA with the USAO.
In the DPA, NETELLER has consented to the filing with the United
States District Court for the Southern District of New York of a
criminal information charging NETELLER with participating in a
conspiracy in violation of certain US laws. If NETELLER fulfils
its obligations under the DPA, the criminal information will be
dismissed, following the two year term.
Specifically, the DPA contains the following main points:
NETELLER, as detailed in the “Statement of Admitted Facts”
attached to the DPA, admits that it had operated in the US an
unlicensed money transmitting business and had participated in
the performance of financial transactions for the purpose of
promoting unlawful transactions between internet gambling
merchants and persons located in the US.
NETELLER agrees that it will pay an amount to the United States
totalling US$ 136 million which is disgorgement of certain
profits received by NETELLER from the activities described in
the Statement of Admitted Facts. This amount includes the
approximately US$ 60 million that the USAO has previously
seized. NETELLER agrees that it will satisfy the remaining
portion of its forfeiture obligation with a payment of US$ 40
million to be paid on or before 15 October 2007, and the
remaining balance (approximately US$ 36 million) to be paid on
or before 17 January 2008.
NETELLER agrees to cooperate fully with US authorities in all
matters relating to the ongoing investigations by the USAO.
NETELLER agrees to fully implement procedures and controls to
prevent illegal transactions between internet gambling merchants
and persons located in the US and to continue to retain Navigant
Consulting Inc., a forensic accounting firm, to monitor
NETELLER’s compliance with these procedures and controls.
Distribution Plan to be implemented
As announced on 4 June, the Company has agreed to a plan for the
distribution of funds to its US customers. The agreed plan
details the process and mechanisms by which US customers will be
able to initiate the return of their funds after the plan is
implemented. NETELLER is using its best efforts to start
implementing the plan as soon as possible and, in any event, by
no later than 30 July 2007. The Company will communicate to US
customers via email and through its website the exact date upon
which such customers will be able to make requests.
Restoration of trading to AIM
As stated in the Company’s announcement of 13 July, the Company
continues to make progress regarding the ongoing suspension of
the Company's shares from trading on AIM. The Company is in
discussions with its advisers and AIM and understands that the
admission of the Company’s ordinary shares to trading on AIM has
not to date been cancelled.
With today’s announcement of a resolution of the USAO
investigation, the Company is now focused on finalising and
publishing its audited annual accounts for 2006. The Company
will endeavour to post the 2006 accounts to its shareholders as
soon as practicable following which the Company anticipates that
trading in the Company’s ordinary shares on AIM will be
Further details will be announced as and when they become
Published on 07/18/2007