Founders of NETeller arrested

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16-01-2007 07:33:34


[bd78ae6dfc4]Gambling firm founders held[/bd78ae6dfc4]

Julia Kollewe
Tuesday January 16, 2007
Guardian Unlimited

The American authorities have swooped on the founding shareholders of NETeller, the company which specialises in money transfers between online gambling sites and players.

Stephen Lawrence and John Lefebvre, both former directors of the firm, were detained in the US yesterday, while travelling separately.

NETeller called for a suspension of trading in its shares as it revealed the shock development this morning.

The online payment group said neither Mr Lawrence nor Mr Lefebvre has any current position with or connection to NETeller, other than as shareholders.

Shares in the Isle of Man-based firm closed at 176p on Monday, valuing it at around 211m. Its shares have plunged by 60% since early September as it became embroiled in the US crackdown on online gaming.

Today it said it "has not received any communication or correspondence from any US authority regarding this or any related matter.

"Pending clarification of the situation the board has sought immediate temporary suspension of NETeller's shares."

Most online gaming companies have pulled out of the US market since new legislation was passed in October barring banks from processing transactions involving internet gambling.

The law came after two executives of internet gaming companies were arrested in the US over the summer, BetonSports' chief executive David Carruthers and Sportingbet's non-executive chairman Peter Dicks.

Mr Lawrence resigned as a non-executive director of NETeller on October 13, having stepped down as non-executive chairman on May 11 last year. Mr Lefebvre resigned as a non-executive director on December 15 2005.

Mr Lawrence holds a 5.91% stake in NETeller through his investment vehicle Corvina and Mr Lefebvre owns 5.54% of the company through Eagle Medallion Fortress.

NETeller has more than 3 million customers in 160 countries and processes more than $7bn (3.55bn) in transactions a year.



16-01-2007 10:01:57

God dammit! This whole thing is so fliliking ridiculous!


16-01-2007 10:48:51



16-01-2007 11:01:20

They're supposedly after the guy from too. I think he's vowed not to leave Costa Rica now.


16-01-2007 11:04:16

Tholek your avatar freakin kills me every time I see it......


16-01-2007 11:08:34

I haven't been keeping up with this news since october, but last I saw NETeller was going to pull out of the US once the anti-gambling law came into effect.


16-01-2007 11:09:06

[quotedb24165239="csullivan1@rochester.rr.c"]Tholek your avatar freakin kills me every time I see it......[/quotedb24165239]

Sweet talk me all you like, you aren't getting anymore karma from me today. ;)


16-01-2007 11:15:14

Wanna bet?? LOLOL


16-01-2007 11:43:17

Wonder how enforcement actions like this bear on past and closed businesses? That is, was NETTeller still operating when these two were arrested?


16-01-2007 12:02:43

I believe so, IIRC they were going to cut off the US clients only when the law went into effect which was some 270 days from october.


16-01-2007 13:17:04

Another sign of the downfall of online gambling.


16-01-2007 14:32:17

I wonder if there's sublet room on Sealand? ;)


16-01-2007 19:14:55

so, i wonder how long i'll be able to use my epassporte account for...


17-01-2007 00:56:48

[quote67c8f88623="Tholek"]I wonder if there's sublet room on Sealand? ;)[/quote67c8f88623]

Funny thing though, if you look at the pics, "Sealand" is this metal bridge-like structure just hanging out there. a real dump. I figured for that price..
not that it mattered for their purposes.

http//[" alt=""/img67c8f88623]


18-01-2007 08:13:45




US Member Update

Effective Immediately

Due to recent US legislative changes and events, effective immediately, US members are no longer able to transfer funds to or from any online gambling sites.

All US members will continue to be able to use their NETELLER e-wallet account to safely transfer funds to and from non-gambling merchants and are not required to close their account or withdraw their funds.



18-01-2007 09:23:55

go to forums, im sure they have a variable workaround already