NETeller Founders Arrested in US

[DamianDunlap]

NETeller Founders Arrested in US

The two founders of online gambling payment solutions NETeller were arrested in Los Angeles and New York, respectively, today, according to reports surfacing Monday afternoon Gambling911.com has learned.
John LeFevre and Steve Lawrence, both of Canada, were taken into custody early Monday morning while in the United States. Charges have not been filed yet.
Neither men have been involved with NETeller for a few years now, though it is not known if they are still receiving an "income" from the company.
NETeller is a publicly traded company based out of Isle of Man and is the largest online gambling money processor.
The detention of both men indicates a prolonged investigation dating back several years. It is not known why either were traveling in the United States at the same time transferring through two different airports. Nor is it known at this time if the two men are being detained for anything having to do with their involvement in NETeller.
LeFevre, a former hippie, started the hugely successful company with Steve Lawrence in 1999 but retired in 2002 in Costa Rica. Less is known of Lawrence.

NETeller Founders Arrested in US

[ccy]

Yikes...does this affect the reliability/security of our Neteller accounts?

[DamianDunlap]

Isle of Man based e-wallet solution provider Neteller plc confirmed this morning the arrest of two of its former directors and founder shareholders, Mr Stephen Lawrence and Mr John Lefebvre.

The two men were detained by US authorities while travelling separately in the US on Monday. Other than as shareholders, neither Mr Lawrence nor Mr Lefebvre has any current position with or connection to the company, Neteller stated.

[bartongrl1]

It seems right now to be business as usual for all neteller customers. I spoke with Angie this morning and she sent me a link to Netellers stand on the USA customers stance on service with Neteller since the signing of the bill on October 12 last year.

Read about it here

[whatwedontknow]

Net-betting crackdown freezes funds
By Jon Swartz, USA TODAY
Updated 2/1/2026 10:12 PM ET

SAN FRANCISCO — The federal crackdown on online gambling has tied up the funds of thousands of U.S. patrons of two of the largest services.
The crackdown on BetOnSports, which no longer takes sports wagers from the USA, and Neteller — an Internet payment service popular among gamblers — is intended to put a dent in the $10.6 billion industry.

And it has: Following federal charges against executives from both companies, dozens of the more than 2,300 websites that service online gambling have stopped taking U.S. wagers.

Still, the actions against BetOnSports and Neteller have left the online accounts of their U.S. customers frozen until legal issues are resolved.

"The truth is that the money is in limbo and the companies are not required to refund any money until a successful prosecution or settlement takes place," says Michael Tew, principal of gaming consultant CapitalHQ. "This could take years." Funds from other gambling sites are not tied up, Tew and others say.

Most U.S. customers of BetOnSports have been waiting to cash out money in their accounts since July, when a federal grand jury issued a 22-count indictment charging CEO David Carruthers with racketeering, conspiracy and fraud. BetOnSports handled $1.77 billion in bets during its 2005 fiscal year, with more than 90% of wagers from the USA. An attorney representing the company declined to comment.

Neteller founders Stephen Lawrence and John Lefebvre were arrested in January on a charge of conspiracy to transfer funds with the intent to promote illegal gambling.

Though money-transfer companies such as Neteller do business with financial institutions and merchants, many also allow gambling companies to transfer money collected from U.S. gamblers to bank accounts outside the USA. Neteller last month closed its U.S. Internet gambling services, erasing about two-thirds of its business.

Neteller offers few instructions for customers trying to cash out their accounts. "We are working to resolve all withdrawal issues, but in the meantime we continue to maintain these funds in trust on your behalf," says a posting on the company's website.

Neteller declined to comment. The company processed more than $7 billion in online gambling transactions in its 2005 fiscal year. FBI Agent Neil Donovan says funds from Neteller are being held in court as potential evidence. Some customers may get their money back, but he did not provide a timetable.

A law signed by President Bush in October bans the use of credit cards, checks and electronic fund transfers for Internet gaming. U.S. residents place more than half of all bets to major offshore casinos.

BetOnSports has settled civil charges with the Justice Department, but not criminal charges. Carruthers' case is separate.

You can see this article here:
Net-betting crackdown freezes funds - USATODAY.com