[doubledown55]

Not sure if this is a repost or old information

http://www.usatoday.com/tech/news/20...n_x.htm?csp=34

By Jon Swartz, USA TODAY
SAN FRANCISCO — The federal crackdown on online gambling has tied up the funds of thousands of U.S. patrons of two of the largest services.
The crackdown on BetOnSports, which no longer takes sports wagers from the USA, and Neteller — an Internet payment service popular among gamblers — is intended to put a dent in the $10.6 billion industry.

And it has: Following federal charges against executives from both companies, dozens of the more than 2,300 websites that service online gambling have stopped taking U.S. wagers.

Still, the actions against BetOnSports and Neteller have left the online accounts of their U.S. customers frozen until legal issues are resolved.

"The truth is that the money is in limbo and the companies are not required to refund any money until a successful prosecution or settlement takes place," says Michael Tew, principal of gaming consultant CapitalHQ. "This could take years." Funds from other gambling sites are not tied up, Tew and others say.

Most U.S. customers of BetOnSports have been waiting to cash out money in their accounts since July, when a federal grand jury issued a 22-count indictment charging CEO David Carruthers with racketeering, conspiracy and fraud. BetOnSports handled $1.77 billion in bets during its 2005 fiscal year, with more than 90% of wagers from the USA. An attorney representing the company declined to comment.

Neteller founders Stephen Lawrence and John Lefebvre were arrested in January on a charge of conspiracy to transfer funds with the intent to promote illegal gambling.

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.

Neteller offers few instructions for customers trying to cash out their accounts. "We are working to resolve all withdrawal issues, but in the meantime we continue to maintain these funds in trust on your behalf," says a posting on the company's website.

Neteller declined to comment. The company processed more than $7 billion in online gambling transactions in its 2005 fiscal year. FBI Agent Neil Donovan says funds from Neteller are being held in court as potential evidence. Some customers may get their money back, but he did not provide a timetable.

A law signed by President Bush 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.

BetOnSports has settled civil charges with the Justice Department, but not criminal charges. Carruthers' case is separate.

[azkid]

nope this is new. I give up. It's panic time. I don't think I'm ever going to see my 8K. I hate my life...

[Korchnoi]

OMFG. How much would you guys give up to have cash in hand right now?

[azkid]

what i don't understand is how they can hold funds from neteller as evidence. What jurisdiction does the US have over neteller? How can they just freeze funds? IT IS NOT A US COMPANY FOR GOD'S SAKE! You know who I blame for this whole debacle? It is not Bush...he is just doing what he was elected to do by the US right wing. IT IS THOSE IDIOT NETELLER FOUNDERS WHO DECIDED TO FOOLISHLY TRAVEL TO THE US DESPITE CLEAR SIGNS THEY WOULD BE ARRESTED. Those idiots just screwed up the lives of so many innocent americans.

God help us all.

[increasedodds]

I think they are holding funds from their witness who used neteller - not from the company.

The UK has security laws and I imagine seized bank accounts would be something you'd have to report.

Sean

[azkid]

no, to me this story implies that all neteller funds have been frozen and are being held by the feds. Am I missing something?

Anyway, the second I can get my funds out of netteller I will start furiously jacking off in shock and celebration. It may just be the happiest day of my life.

[azkid]

And to think that I trusted these bastards!!? Ironically, it may be safer NOT to deal with publicly traded companies when it comes to online wagering.

[doubledown55]

I wonder if the writer of the story could add more info.

[increasedodds]

The same story says BOS settled their civil suit... Last I checked, they are yet to come to court.

[doubledown55]

Settled in November

http://www.foxnews.com/story/0,2933,...onaltechnology

[azkid]

Money could be tied up for years... There is no hope...no hope. We're all going to die. It's all over.

[bboots]

the fox news article states Bet on Sports must open a toll free telephone service to inform bettors how they can reclaim wagers pending before the suit was filed....it seems if the DOJ is demanding BOS makes good on wagers they would also make sure funds are returned to US members of Neteller...if and when a suit was completed.

[pags11]

this is completely ****ed...

[capitalist pig]

quote.FBI Agent Neil Donovan "says funds from Neteller are being held in court as potential evidence. Some customers may get their money back, but he did not provide a timetable."

I actually find that statement encouraging for me, my $ were in neteller before the day of the arrests, and the freezing of accounts, I believe the 16th of Jan.

My $ were put in on the 10th, so maybe anyone who had $ in before the squeeze, isnt going to have their $ held as potential evidence.

Just a thought, but not holding my breath


later

[chano]

Only In America.

[chano]

Originally Posted by azkid

no, to me this story implies that all neteller funds have been frozen and are being held by the feds. Am I missing something?

Anyway, the second I can get my funds out of netteller I will start furiously jacking off in shock and celebration. It may just be the happiest day of my life.

I would forget about my funds, they are gone. If I were you I would just start jacking off anyways.

[azkid]

Neteller keeps saying they'll pay us out! I believe, I believe! PLEASE PLEASE PLEASE!

Here is my problem, I really want to jump off a bridge because of this, but I need my money out of neteller in order to buy food to give me the energy to jump off a bridge in the first place. But once I get the money I will no longer need to jump off a bridge.

I don't know how I will be able to survive another week of this without dying. I am serious. I need Neteller to release my cash. Please Neteller please I am begging you. I need money so badly. I could stand a couple weeks without my cash but I am having serious liquidity problems at this point. And I have waited so long that I want to jump off a bridge but don't have the energy to do that!

[azkid]

It would make me feel better to jack off, but I need food in my system to give me the energy to do that as well. I am slowly dying and it is neteller's fault...They have robbed me of even the simple pleasures in life like masturbation

[marc]

Neteller clearly still has money. Non-US cusomters continue to be paid in a timely fashion. My guess is, inorder to speed the process of paying and recieving funds, Neteller held some funds in US banks, and those were the funds that were siezed

[azkid]

Marc, so this means that my funds have not been seized necessarily, and maybe they ARE making legitimate efforts to pay me back? Oh thank god..Any bit of good news prompts me to start jacking off nonstop.

[Bill Dozer]

Originally Posted by marc

Neteller clearly still has money. Non-US cusomters continue to be paid in a timely fashion. My guess is, inorder to speed the process of paying and recieving funds, Neteller held some funds in US banks, and those were the funds that were siezed

That is the best theory I've heard explaining latest actions. Neteller had a Bank of America account as well as accounts in CR banks to make the transactions faster. You have to assume they drew back funds well before all this though, at least most. They used to allow CR books and US players to deposit to those accounts for same day access. They discontinued both options quite a while ago.

[Bill Dozer]

For anyone else who wants to inquire about frozen funds...

FBI press office
NEIL DONOVAN & JAMES MARGOLIN
(212) 384-2715 & (212) 384-2720

[Halifax]

As a publicly traded company, Neteller is required to disclose information that would have a material impact on its share price. I think that if the U.S. government has frozen some of Neteller's funds, that they would have to make a public statement about this.

Could be wrong ... but I think that Neteller would be compelled to make a press release if this were true.

[azkid]

This analysis is actually quite reassuring. I think it is extremely unlikely that USA Today is correct (that it will take us years to get our funds). At most, it should take several months.

[onlòóker]

Man this is getting worse as the days go by. I hope all this frozen money gets to the right hands sooner then later.

[Bill Dozer]

Originally Posted by Halifax

As a publicly traded company, Neteller is required to disclose information that would have a material impact on its share price. I think that if the U.S. government has frozen some of Neteller's funds, that they would have to make a public statement about this.

Could be wrong ... but I think that Neteller would be compelled to make a press release if this were true.

You should be right. We will have to see what Monday brings if anything, from the LSE and FBI press office. Sometimes the LSE company releases are not in real time.