NETeller to Pay $136M

Remember that post about the NETeller executive pleading guilty to the charges against him? Recent developments in this issue inform us that the whole company admits to wrongdoing for violating U.S. laws regarding Internet gambling. Here are excerpts of AP’s report on this issue.

Neteller PLC has agreed to forfeit $136 million (€99 million) and admit wrongdoing for violating U.S. laws against Web-based gambling in a deal to avoid prosecution on a criminal conspiracy charge. The deal was approved in U.S. District Court in Manhattan by Judge Kevin P. Castel following a meeting earlier Wednesday by the board of directors of Neteller in the Isle of Man, where it is based.

The company also agreed to return $94 million (€68 million) it held in the accounts of U.S. customers. The government has said that nearly all of the $5.1 billion (€3.7 billion) in transactions processed by the company in the first half of 2006 involved online gambling — and most of the revenue was generated by U.S. customers. The deal with prosecutors also requires the company to submit to a monitor for 18 months to ensure the company does not Internet-based gambling to occur with U.S. customers.

John Carroll, a lawyer who represented Neteller, said outside court: “The company hopes to put this behind us. We look forward to getting money back to our customers and growing the business.”

I wonder just how they plan on “growing the business?” In any case, it seems that people who used to transact business with NETeller cannot do so anymore no matter what they do. At least they will get their money back.

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