Neteller patrons to see longer wait for money
  1. SAN FRANCISCO - The waiting game for thousands of U.S. patrons with money tied up in an online payment service under federal investigation just got longer.

    The U.S. Attorney's Office for the Southern District of New York late Wednesday said it extended the deadline until March 16 to decide whether to indict the co-founders of Neteller, an Internet money-transfer service popular among gamblers. Stephen Lawrence and John Lefebvre were arrested in January on a charge of conspiracy to transfer funds with the intent to promote illegal gambling

    For U.S. customers of the site, it was another delay in their efforts to recoup their money, which remains in Neteller accounts until the legal matter is resolved.

    Neteller says U.S. authorities have frozen access to about $55 million in U.S.-based accounts.

    "As a result of the restrictions placed by third parties, court-ordered seizures and related legal concerns, (Neteller) is unable to make payments to U.S. customers," says a posting on the company's website.

    <SPAN class=yqlink>FBI</SPAN> agent Neil Donovan has said funds are being held in court as potential evidence. He did not provide a timetable on when customers may get their money back.

    Though money-transfer companies such as Neteller do business with financial institutions and merchants, many also allow gambling companies to transfer money collected from U.S. gamblers to bank accounts outside the USA. Neteller last month closed its U.S. Internet gambling services, erasing about two-thirds of its business.

    A law signed by <SPAN class=yqlink>President Bush</SPAN> in October bans the use of credit cards, checks and electronic fund transfers for Internet gaming. U.S. residents place more than half of all bets to major offshore casinos in an estimated $10.6 billion industry. However, most online gaming sites are based offshore, outside the reach of American law enforcement.

    With Neteller's financial future teetering in the balance, consumers might choose less reliable money-transfer services instead, says Ken Dreifach, an Internet attorney.
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  2. Im still not buying it. No way the US governement has any jurisdiction over what a Brithish company can do.

    Its like the British governement somehow freezing Britsish citizens money it has in Bank of America Banks, that are located in the US. Somehow I dont see a governement from another country telling a Bank located in a different country what they can and cant do.
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  3. :(
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  4. You would probably be correct if you were talking about another government. The U.S. government is stubborn and persistant. Add that to being the most powerful, wealthiest nation on earth...they do what they want...unfortunately for us
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  5. In order for any US based patron to receive their money from Neteller, at some point in the cycle it has to hit a US based bank or clearing house. My guess is Neteller can not find any Financial instution within US juristriction to take it's "Action".

    With out a doubt the DOJ has threatened criminal prosecution to any fininacial instution that even gets close to net teller.

    This is purely speculation and not based on anything other than crap I normaly make up.
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  6. "In order for any US based patron to receive their money from Neteller, at some point in the cycle it has to hit a US based bank or clearing house."

    This is correct, and this is how and when the DOJ seized the 55 million.

    Overall I think this delay is good news.

    The is delay is probably due to two things; no substantive case and the matter being settled.
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  7. ^^ exactly, I'm sure this whole mess will get settled soon enough.
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  8. Thought the same thing as I read the post.
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