18-07-2007 NETeller promoted unlawful gambling transactions in the United States

The online payments provider has entered into a two-year Deferred Prosecution Agreement with the United States Attorney's Office agreeing to forfeit $136 million, including the $60 million that the USAO had previously seized.

Under the terms of the DPA, NETeller admits that it had operated an unlicensed money transmitting business between internet gambling merchants and players located in the US. NETeller also agreed to be monitored for a period of two years to guarantee that procedures and controls to prevent illegal transactions are fully implemented.

"This agreement resolves the USAO’s investigation relating to the Company’s former US business activities. We believe that this settlement is in the best interests of NETELLER and its shareholders," commented Ron Martin, President and CEO of NETeller.

"We anticipate within the next few weeks that we will have fully implemented the plan for the return of funds to our US customers and are hopeful that, by that time, we will have restored the Company’s shares to trading on AIM," added Martin.

In separate news, NETeller announced that in light of the recent legal developments in Israel, the company will cease to process transfers from online gambling merchants to Israel-resident customers within July 31.