Neteller pays $136 million penalty

11:40 am July 20, 2007 | posted in Bingo News

Neteller, the online payment processor, admitted on Wednesday that it broke US laws and agreed to pay a $136m penalty to settle its part of the US crackdown on internet gambling.

The Isle of Man-based company said on Wednesday that it hopes to relist shortly on London’s Aim. Its shares were suspended in January after its co-founders, Steven Lawrence and John Lefebvre were arrested. Both men pleaded guilty to criminal conspiracy earlier this month.

Pursuant to the DPA, the Company has consented to the filing of a criminal information relating to transactions between Internet gambling merchants and persons located in the United States. The USAO has agreed to defer the prosecution of any federal charges and, as a consequence, the Company will not be convicted of any federal crime, as long the Company fulfils the set conditions of the DPA during the two year term of the agreement. At the conclusion of the two year term, the criminal information will be dismissed. The key terms of the DPA are set out in more detail later in this announcement. The United States District Court for the Southern District of New York has approved the deferral of the prosecution. As part of the DPA, the Company has also agreed to forfeit US$ 136 million to the United States. This amount includes the approximately US$ 60 million that the USAO has previously seized.

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