Online payment processor
NETeller stated in a press release published today that
substantial funds are being held by American authorities,
in connection with money-laundering charges brought last
month against Steve Lawrence and John Lefebvre, the company's
founders.
The announcement confirms statements
made by FBI agent Neil Donovan in a USA Today story,
and several sources, including mainstream news outlets
Reuters and CNN, have picked up this latest development
in the NETeller saga. According to the NETeller statement:
"To the best of the [NETeller] Group's knowledge,
it believes that the amount of funds seized by the USAO
or otherwise restricted by third parties does not exceed
US$ 55 million. These funds were largely in the process
of being transferred from the Group to its US customers
or vice versa."
The monies seized by the FBI remain
held pending further negotiations and developments in
the case brought against Lawrence and Lefebvre by the
United States Attorney's Office [USAO] for the Southern
District of New York. NETeller's statement confirmed
that NETeller's legal advisors met with USAO representatives
on January 19, just as U.S.-based banks began declining
NETeller-generated transactions. NETeller itself learned
of the court-ordered $55 million seizure sometime after
the Jan. 19 meeting.
NETeller payments to U.S. residents
will remain frozen for the time being. "As a result
of the restrictions placed by third parties, court-ordered
seizures, and related legal concerns, the Group is currently
unable to make payments to US customers." The release
continues by affirming NETeller's continuing attempts
to repatriate funds to U.S. residents. NETeller also
plans to cooperate with the USAO, and will produce documentation
likely showing the deposits by and payments made to
U.S. residents. "The Group is in discussions with
the USAO to manage an orderly return of funds to US
customers. As part of these discussions, it is contemplated
that the USAO will engage a forensic accounting firm,
at the Group's expense, to assist in this process and
to examine the Group's financial position. 'The return
of funds to our US customers is a top priority for NETELLER,'
said Ron Martin, Group President and CEO."
NETeller also acknowledged in its statement
that while no charges have been brought against the
company itself at the present time, that possibility
still exists. NETeller continues to generate over US
$200,000 in net revenue on a daily basis from its non-U.S.
customer base, even though the rate of new account signups
has dropped by about 65% since NETeller's withdrawal
from the U.S. market. NETeller's London-based stock
remains frozen, pending further developments in the
case.
