Neteller Announces Plan to Return Funds to US Customers
Neteller plc, the quoted payment processor used by many of the world's online gaming players, has today announced an agreed plan for the distribution of funds to its US customers. These funds are currently under seizure by the US law authorities.
Neteller says that it is continuing to cooperate with the investigation being conducted by the United States Attorney's Office for the Southern District of New York (the "USAO"), under the advice of its legal advisers and in accordance with court orders in the Isle of Man.
On 21st March 2007, Neteller had stated that it has signed agreements with the USAO and Navigant Consulting, Inc. (a forensic accounting company) to develop a plan for the distribution of funds to US customers. This "Distribution Plan" has now been agreed upon with the expectation of implementing it upon the resolution of the ongoing investigation by the USAO.
Under the plan, Neteller's US customers will be able to access their accounts online for a certain time and make a request for their funds. No interest on account balances will be paid (as is the norm with Neteller accounts) but Neteller will also not levy any fees or charges on the US customer.
Funds will be distributed either by electronic transfer to the bank account on record with Neteller or by a cheque to be sent to a mailing address confirmed by the customer. US customers will receive the entire balance of funds in their account; no requests for partial payments will be processed. US customers will be unable to use their accounts for any transaction other than to request the funds.
Further information will be communicated to Neteller's US customers via email, through the Neteller website and through a press release once the date for implementation of the Distribution Plan is finalised.
Ron Martin, Group President and CEO of Neteller plc said:
"The agreement on the Distribution Plan represents a milestone in our cooperation with the US authorities. While we are disappointed not to have been able to return funds to our US customers at this point, we believe that the steps we have made in our discussions are significant and we hope to be able to announce further progress with the USAO by 13th July 2007."
Neteller says that it continues to work with Navigant to produce a report to the USAO on its current financial condition. On 8th February 2007, Neteller stated that approximately $55 million had been seized by the USAO or otherwise restricted by third parties. After ongoing consultation with the USAO, Neteller says it currently believes this amount could increase to approximately $60 million.
Neteller plc's shares are still suspended from trading on the Alternative Investment Market in view of the continuing uncertainties. The company says it is also working towards the finalisation of its audited annual results for the year ended 31st December 2006 and will announce the date on which these will be published to the stock market "in due course".
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