Neteller Share Discussion Threads

[shaunoneill29] 19/7/2007 09:07

Neteller to forfeit a further US$76m
Neteller has admitted to operating an "unlicensed money transmitting business" and participating in the promotion of "unlawful transactions" between gaming operators and their customers in the US.

The news came as the company announced the resolution of the investigations into the company on the part of the US attorney's office (USAO) for the southern district of New York.

As part of the deal the company has agreed to forfeit US$136m. The sum includes US$60m already seized by the US authorities. In return, the USAO has agreed to defer the prosecution of any federal charges. As a consequence, the company will not be convicted of any federal crime.

Neteller has also agreed it will "cooperate fully with the US authorities in all matters relating to the ongoing investigations by the USAO".

Neteller shares will resume trading on the Alternative Investment Market (AIM) as soon as its results for 2006 have been published. The company has also said it will attempt to fulfil withdrawal requests from US customers by no later than 30 July.

According to a release to the London Stock exchange today, the company has entered into a deferred prosecution agreement (DPA) with the US authorities. Under the terms of the DPA the company has consented to the filing of any criminal information relating to transactions between online gambling merchants and persons located in the US.

Under the terms of the DPA Neteller has admitted it operated in the US an "unlicensed money transmitting business and had participated in the performance of financial transactions for the purpose of promoting unlawful transactions between internet gambling merchants and persons located in the US."

Industry insiders suggested the news that Neteller would cooperate fully with ongoing investigations meant the company was going to "sing like a canary". "They will be handing over a whole lot of information," he added.

Neteller said the money seizure represents "certain profits received by Neteller from the activities described in the statement of admitted facts". A sum of US$40m will be paid on or before 15 October this year with the remaining balance of US$36m to be paid on or before 17 January.

Neteller added that recent legal developments in Israel had increased the uncertainty regarding the legality around certain activities related to online gambling in the Israeli market. "The company has therefore concluded that the group will no longer process transfers related to online gambling sites on behalf of Israeli resident customers," it said. Neteller will cease processing all online gaming transactions form 12.01am GMT on Thursday 19 July.

[guidfarr] 19/7/2007 08:58

"the nlr board have agreed to even if the u.s market does change over the next 5 years.. but its deffo food for thought...the americans will crowd back to nlr"

No Americans use Neteller because their personal credit card were getting rejected - should online gambling become legal in the USA there would be no use for Neteller...

[marlene72] 19/7/2007 07:12

food for thought.. what happens if the law changes in the u.s? canada will definately relook at the situation and i dont want to wonder what the nlr board have agreed to even if the u.s market does change over the next 5 years.. but its deffo food for thought...the americans will crowd back to nlr in my opinion as 99 pct had no problem with them and all the bad stuff is out the way, and more important than all is that they are gamblers who will do what evers easiest and familiar.... nlr brand name holds up accross the globe (fingers x) and the u.s market reopens........ you just never know........ but i doubt it..

[marlene72] 19/7/2007 06:59

i was long at just above 4 quid when these got suspended and the u.s law changed, as we all know the traded in the 9quids and with no obstructions they would have been above 10 quid by now imho..these started to slide from their highs and went down quickly on rumour or inside knowldege of this whole debacle..ok so theyre out of the u.s , initial huge percentage of business , but not going forward, the worlds a big place... for this stock at 1 quid or lower when it could have been 10 quid or higher seems wrong , the important issue for me is that the proven model is in place to go again... get back on the bike and ride is my advice and if not bought out cheaply i see no problem on turning on my p.s in 2-3 years and seeing my investment at 4 quid levels at least..
lets see but im just glad the coast is clear, this stock may react similar to party poker after all this...dip then up and up then profit taking etc etc...

[marlene72] 19/7/2007 06:53

eeer the price was down to 140 on the pullout of the u.s months and months ago, how you guys can still further price this in on open is beyond me, plus priced in somewhat at the time was that the u.s was and maybe would go after nlr (which they did) this was all old news and we were trading at 176p when suspened..all thats happened since is canada israel and turkey are no no's and nlr have to pay a fine over 2 years .... i think anyone under 1 pound is talking carp and we may see it under 1 quid initially but the growth story is there and the brand name to anyone outside the u.s who will be totally ignorant to any of the recent goings on, this isnt a really big story on the bigger scheme of things and nlr are pretty well set up to move forward from here....
i'll say this tongue and cheek but WHAT ELSE COULD GO WRONG FROM HERE ?

[stewjames] 19/7/2007 02:37

never mind that, rover, where's this maths of yours?

[roverisback] 19/7/2007 00:16

only gaming transactions

[oiliphant] 19/7/2007 00:12

everyone is forgetting that a big chunk of the biz - ie. the US - is gone

BIG HOLE!

[sabre1_98] 19/7/2007 00:06

what price has this been going for on the grey market? I know a few holders have been approached during suspension to sell.

[roverisback] 18/7/2007 23:16

i would love it if this opens at 300p+...really love it!

[kerpen01] 18/7/2007 23:10

You are right there Rover, they have all been selling shedloads on the Grey market in anticipation of liquidation. Now it's brown pants time.

[topgunns] 18/7/2007 22:49

Erm, clealy a lot of the people on here will dump their shares as soon as possible and the opening price will be shocking as a result.

[dan1man] 18/7/2007 22:45

atomic dog seems to be the only person on here talking any sense

[stewjames] 18/7/2007 22:29

go on then rover, show us this basic maths of yours. I'm intrigued...

[clarea] 18/7/2007 22:26

i hold and agree roverisback is living in dream world; if we see 30p - 50p it will be a reult they were only trading at 1.60 prior to all this since then
they have lost us market and canada had virtually all cash wiped out and been subject to a crimenal investigation hardly the recipe for the market cap increase by 100% plus, at least there will be something for the tax loss.
Dermot Desmond must be rubbing his hands he will pick this company up for buttons on relisting.
Would love to be proved wrong but anyone seeing one pound plus is in a bigger dream world than the old iraqi minister of infromation comical ali

[sabre1_98] 18/7/2007 22:05

I wonder how many yanks will write their neteller balances off instead of claiming them? now the DOJ is watching the transfers?

[richardsj] 18/7/2007 22:05

Jon of arc - bid a mill at 40p.

[joan of arc] 18/7/2007 22:04

The fine is intended to reduce the co. to zero cash once debts are paid off, ie you start again - any funding you might need is your problem but you're still alive.
With future earnings from the rump market and a pretty sick view of its prospects this will open at somewhere between 25p and 40p, probably nearer the lower limit. Where it goes from there is all down to sentiment.

Anyone care to open a book?

[roverisback] 18/7/2007 21:59

you're all idiots...even if the yanks took all the cash pile the company would still be worth £2 a share...try doing some basic maths

[richardsj] 18/7/2007 21:51

These things are 80-120p.

[malcolme2] 18/7/2007 21:41

it would have paid for a lot of top "scum bag" american lawyers to keep the US govt tied up in knots for a long time.