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January 17th 2007
US Authorities reveal NETeller founders have been charged with money laundering
Debate was settled over the reason for Monday’s arrest of NETeller’s two founders today when the New York U.S. Attorney’s Office and the FBI released a joint statement regarding the arrests.
The statement explained that the arrests were part of “the US Department of Justice’s effort to combat unlawful internet gambling through implementation of the anti-money laundering statutes”.
With the press release it became clear that the men would not be charged under the new UIGEA laws, but under the old 1956 money laundering act, with relation to the 1963 Wire Act.
Stephen Lawrence and John Lefebvre could have been forgiven for thinking that having stepped down as NETeller directors prior to the implementation of the UIGEA they would be safe from prosecution. But this drastic step by the US authorities will send a shiver down the spines of numerous other pioneers of the online gambling industry, showing that even if they are now ‘going straight’ they are not off the hook.
The crux of the case against Lawrence and Lefebvre will focus on online sports betting, as oppose to online poker or casino activities. As yet no charges have yet been brought against NETeller, but it seems increasingly likely they will be targeted in the near future.
In the meantime the American gambler will worry that the options for funding online gaming activities are growing ever thinner on the ground.
Submitted: 17/01/2007 09:49:25
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