NETeller Update

A lot has happed with NETeller since the January arrests of co-founders Steven Lawrence and John Lebvre. The biggest item of concern currently includes the money that was seized from U.S. customers when the founders were arrested. The United States Attorney's Office for the Southern (UNITED STATES DISTRICT ATTORNEYS OFFICE) District of New York, the office investigating NETeller and it's dealings with the U.S. market, has made the financial service aware that the targeted date of Friday, July 13th, will likely come and go before the investigation is complete.

After the arrests of the NETeller co-founders, the company  left the U.S. market and suspended their share trading on the London Stock Exchange. One part of the criminal investigation included warrants for the funds then being transferred between NETeller and their U.S. based customers. When the announcement came regarding the warrants, more than $55 million dollars had been seized. By June, NETeller estimated the total closer to $60 million.

It was in the hope of NETeller that the UNITED STATES DISTRICT ATTORNEYS OFFICE would complete the investigation by this Friday. Should that have occurred, it would have allowed the company to begin the distribution plan for the frozen funds belonging to the U.S. clients. Unfortunatly, as was announced this week, "recent developments will likely delay [the UNITED STATES DISTRICT ATTORNEYS OFFICE'] s efforts to resolve the investigation in a short period." Thus holding the customer distribution plan longer.

In the plan developed along side the UNITED STATES DISTRICT ATTORNEYS OFFICE, once the funds are released, the U.S. customer will have 180 days to log into their accounts and request their money. More details will be given as the opportunity comes available.

As a direct result of the U.S. criminal investigation, NETeller stock will no longer be listed on London's FTSE AIM indices. Late June saw an announcement from NETeller regarding Rule 19, which states that companies need to report to their account share holders with in 6 months of the end of a fiscal year. This report is being held up due to the incomplete information surrounding the investigation.

Lefebvre and Lawrence were both shareholders at the time of their arrests. They were not involved in the planning or day-to-day business of NETeller. There are plans to hear more regarding the investigation by Friday, July 13th.