explains U.S. withdrawl delay
Ryan McLane, Casino City
is unable to pay U.S. customer withdrawals because American
banks have refused to do business with one or more of the
e-wallet's U.S. based automatic clearinghouses, according
to a NETeller press release issued Thursday morning.
NETeller release also said that the U.S. Attorney's Office
for the Southern District of New York has seized funds of
no more than $55 million that were destined for or coming
from American NETeller accounts, further impeding the withdrawal
NETeller group said they are working with the U.S. Attorney's
office to develop a mechanism to return money owed to U.S.
customers, but that the withdrawals will continue to be on
return of funds to our U.S. customers is a top priority for
NETeller," Group President and CEO Ron Martin said.
U.S. Attorney's office had no comment Thursday morning and
would not confirm or deny details in the NETeller press release.
officials continue to say that American monies not seized
by U.S. officials are held in segregated trust accounts. The
release did not issue a timetable for U.S. customer withdrawals.
group of NETeller legal advisers met with officials from the
U.S. Attorney's office on January 19, three days after the
FBI arrested NETeller co-founders Stephen Lawrence and John
LeFebvre and charged them with money laundering.
NETeller group pledged to cooperate with the investigation,
initiate pertinent document production, and discuss a mechanism
for returning money to NETeller customers located in the U.S.,
the release said.
part of these discussions, it is contemplated that the USAO
will engage a forensic accounting firm, at the (NETeller)
Group's expense, to assist in this process and to examine
the Group's financial position."
release stated that NETeller officials are continuing to operate
under the assumption that no further charges would be filed,
but added that there was "no assurances that the Group
will not be charged in a criminal action at some subsequent
NETeller financial position continues to be strong despite
losing its massive stake in the U.S. market, according to
sign-ups, one measure of the e-wallets resilience, fell from
a daily average of 3,303 new accounts per day in 2006, to
1,400 a day since January 18.
the NETeller group claims they are fiscally sound with a daily
revenue average of more than $200,000 per day from account
fees produced by non-U.S. customers.
metrics demonstrate the resilience of the Group's ongoing
business. NETELLER customers not resident in the US continue
to be minimally affected by this withdrawal from the US market,"
the release said.
Group shares continue to be suspended from trading on the