[CleBrownsfan]

hxxp://www.pocketfives.com/96A9211C-39F7-40B7-B787-15FDB5B5E918.aspx

As many of you know, the founders of Neteller were arrested early Monday morning. After gathering information from several credible sources today, including Citadel Commerce, the Poker Players Alliances, and other media contacts, we can safely say that the following facts about the events are TRUE:

1. Stephen Lawrence was arrested in the U.S. Virgin Islands. He resides on Paradise Island in The Bahamas, not property of the U.S. John Lefebvre was arrested in Malibu, California.

2. The charges, as stated, were money laundering to illegal gambling websites and RICO, which stands for Racketeer Influenced and Corrupt Organizations. The latter was language used to arrest many mob members throughout history. It also includes drug trafficking and other violations.

3. The investigation had been ongoing since at least June of 2006 and evidence cited in the case goes back to the company's inception in 1999. The company started transactions with "gambling" sites in 2000.

4. The official citation states two instances where the FBI Agent in question wagered on NFL games. He used Neteller to deposit onto a sports wagering site, which was not named. This violates the Wire Act of 1961. The third violation does not list specific merchants, but an FBI Agent deposited onto three separate online, offshore merchants, described as "online gambling businesses." The NFL wagers amounted to $250 or less and the aforementioned deposits were all exactly $25.

5. The Board of Directors of Neteller has strongly urged that the company's shares, which are traded on the London Stock Exchange under the symbol "AIM," be suspended from trading. The value of these shares has plummeted recently.

6. Neither man has any current position within Neteller except for ownership rights. One left in December, 2005 and the other left in October, 2006. Both were the founders of the company.

7. I spoke directly with Neteller today and received the following wording: "From time to time, NETELLER revises the policies of our products and services. At the end of 2006, NETELLER began reviewing the instaCASH payment option, which resulted in the decision to retire this product from the US, effective January 16, 2007. As such, instaCASH is no longer available to US members. If you have any further questions, please visit http://updates.neteller.com."

8. Neteller is monitoring the U.S. situation closely, as can be expected. They stated "We have several deposit options available: 1. Online Check (EFT) - Money in your NETELLER account at no charge available in 4-5 business days. 2. Credit Card - Instantly fund your account for a fee of 3.9% 3. Bank Wire - Can be initiated from any bank worldwide. you must personally go into your local bank with the appropriate bank wire information to initiate a bank wire deposit to your NETELLER account."

9. Neteller assured me that all withdraw functions will remain as normal and continue without interruption for U.S. customers.

10. The complete case against Lawrence can be found here:
hxxp://www.casinocitytimes.com/news/article.cfm?contentID=163591

11. The complete case against Lefebvre can be found here:
hxxp://www.casinocitytimes.com/news/article.cfm?contentID=163594

12. The only information that has officially been released from Neteller is a press release. It can be found here:
hxxp://www.neteller-group.com/press/en/122.htm

13. An Associated Press article by Larry Neumeister stated, "Lefebvre and Lawrence also conceded in the company's offering documents that they were risking prosecution by the U.S. government, he said. Prosecutors said Neteller in 2005 alone processed more than $7.3 billion in financial transactions, 95 percent of which was derived from money transfers involving Internet gambling. Lawrence and Lefebvre were charged with conspiring to transfer funds with the intent to promote illegal gambling, and could face up to 20 years in prison if convicted."

14. According to Neteller's website, the actions taken today will not affect international users of Neteller, including withdraw options and InstaCash.

15. Neteller has not left the U.S. market. InstaCash is simply disabled for American users of the virtual wallet. The deposit methods available are given in #8 above. While a pullout from the U.S. market is one of the many possibilities that exist, it has not yet happened.

16. The charges were filed in the U.S. Attorney's Office in the Southern District in New York.

17. A U.S. Department of Justice statement released Tuesday concerning the arrest. It states, "LAWRENCE and LEFEBVRE are both charged with conspiring to transfer funds with the intent to promote illegal gambling. If convicted, both defendants face a maximum sentence of 20 years’ imprisonment."

18. The same Justice Department statement clarifies why the two were arrested and provides a link to several other arrests made: "This prosecution is part of the United States Departmentof Justice’s effort to combat unlawful internet gambling through, among other things, the implementation of the federal anti-money laundering statutes. Other recent examples of the Justice Department’s efforts in this regard include the indictments of two offshore internet gambling companies – Worldwide Telesports, Inc.,(indictment unsealed on May 17, 2006 in the United States District Court for the District of Columbia) and BetonSports, PLC, apublicly traded holding company that owns a number of Internet sportsbooks and casinos, and its founder, Gary Stephen Kaplan (indictment unsealed July 17, 2006 in the United States District Court for the Eastern District of Missouri). Additionally, in July 2003, one of Neteller’s competitors, PayPal, and its parent eBay, entered into a civil settlement agreement with the United States Attorney’s Office for the Eastern District of Missouri to settle allegations it aided in illegal offshore and on-line gambling activities. As part of the agreement, PayPal agreed to forfeit $10 million, representing proceeds derived by PayPal from the processing of illegal gambling transactions."

19. Borth Lawrence and Lefebvre are Canadian citizens and were arrested independently on Monday.

20. Reports from the Associated Press on Wednesday, January 17, 2007, state that bail would be set for Lawrence on Thursday and was expected to be $5 million. Unconfirmed reports state that Lefebvre posted $5 million bail in a Los Angeles courtroom earlier today.

21. Word came from the online poker sites themselves regarding their policies for the short term regarding Neteller: Bodog disallowed all transactions involving Neteller for U.S. Neteller accounts. UB, PokerStars, and FullTilt are continuing to accept payments from Neteller as usual, just not InstaCash options for U.S. Neteller accounts. More information on this as it becomes available. CardPlayer has an excellent article about it that can be found here:
hxxp://www.cardplayer.com/poker_news/article/8122

22. As of Wednesday, January 17, 2007, Neteller is no longer accepting payments from U.S. accounts to online poker or online gaming websites. For more information, including a complete Q&A, please click here. You will still be able to use Neteller for non-gambling transactions and peer-to-peer transfers as normal. Non-U.S. residents are not affected by this move and will be able to use Neteller as normal.

23. As of Wednesday, January 17, 2007, Citadel Commerce (myCitadel Wallet) is no longer accepting payments from U.S. accounts to online poker or online gaming websites. You will still be able to use Citadel Commerce for non-gambling related purchases. Non-U.S. residents are not affected by this move and will be able to use Citadel Commerce as normal. A link to Citadel's complete press release can be found by clicking here. I e-mailed the CFO of Citadel Commerce, who e-mailed back and said they had no further comment at this time other than what was in the press release. I know of no arrests or legal action taken against the company.

We will be adding credible information to this post as that information comes in and is verified by the staff of PocketFives.com.