42244 1 3 econsultancy_xml <p>The company has reached a <a href="http://www.neteller-group.com/press/en/136.htm">deferred prosecution agreement</a> with the US Department of Justice, under the terms of which it admits 'the error of its ways' and has agreed to co-operate with authorities in return for a lighter penalty. </p> <p>The Register calls this a <a href="http://www.theregister.co.uk/2007/07/19/neteller_folds_doj/">'supergrass agreement'</a>, as Neteller will tell US authorities all it knows about the industry. As it processed payments for 85% of online gambling firms, it may have a lot to tell. </p> <p>Since it was sneaked through Congress last year, the US gambling ban has <a href="/blog/290-online-gambling-sector-in-crisis-after-us-ban">hit the industry hard</a>, with many firms losing much of their value, while the US authorities have been keen to build cases against the management of these firms. </p> <p>Some Democrats have <a href="/blog/1113-democrat-aims-to-revoke-us-gambling-ban">attempted to revoke the ban</a>, though without success so far. If a future US government chooses to legalise online gambling once more, it will be interesting to see whether these fines will be handed back. </p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph>The company has reached a <Link URL="http://www.neteller-group.com/press/en/136.htm" Window="Self">deferred prosecution agreement</Link> with the US Department of Justice, under the terms of which it admits 'the error of its ways' and has agreed to co-operate with authorities in return for a lighter penalty. </Paragraph> <Paragraph>The Register calls this a <Link URL="http://www.theregister.co.uk/2007/07/19/neteller_folds_doj/" Window="Self">'supergrass agreement'</Link>, as Neteller will tell US authorities all it knows about the industry. As it processed payments for 85% of online gambling firms, it may have a lot to tell. </Paragraph> <Paragraph>Since it was sneaked through Congress last year, the US gambling ban has <Link URL="/blog/290-online-gambling-sector-in-crisis-after-us-ban" Window="Self">hit the industry hard</Link>, with many firms losing much of their value, while the US authorities have been keen to build cases against the management of these firms. </Paragraph> <Paragraph>Some Democrats have <Link URL="/blog/1113-democrat-aims-to-revoke-us-gambling-ban" Window="Self">attempted to revoke the ban</Link>, though without success so far. If a future US government chooses to legalise online gambling once more, it will be interesting to see whether these fines will be handed back. </Paragraph> </FormattedContent> 2007-07-19T13:10:00+01:00 0 1 econsultancy_xml <p> <strong>Online payment processor Neteller has struck a deal with US authorities that will see the firm forfeit $136m (£66m) to avoid a prosecution related to its handling of online gambling proceeds.</strong> </p> <p>The two founders of Neteller, Stephen Lawrence and John Lefebvre, were <a href="/blog/729-neteller-founders-arrested-for-money-laundering-2">charged with conspiracy back in January</a> as it was being used by US citizens to place bets through foreign-based internet gambling sites. </p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph> <Emphasis>Online payment processor Neteller has struck a deal with US authorities that will see the firm forfeit $136m (£66m) to avoid a prosecution related to its handling of online gambling proceeds.</Emphasis> </Paragraph> <Paragraph>The two founders of Neteller, Stephen Lawrence and John Lefebvre, were <Link URL="/blog/729-neteller-founders-arrested-for-money-laundering-2" Window="Self">charged with conspiracy back in January</Link> as it was being used by US citizens to place bets through foreign-based internet gambling sites. </Paragraph> </FormattedContent> false 1525 363834 Neteller cuts deal with US authorities false 2007-07-19T15:38:00+01:00 neteller-cuts-deal-with-us-authorities 2009-04-28T22:54:31+01:00 2009-04-28T22:54:31+01:00 316