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E-Wallet Service Provider Agrees to Settle with US Attorney

The independent e-wallet service provider, NETeller, announced that it is doing everything within its power to resolve the investigation by the United States Attorney’s Office. The company has been under ongoing investigation for a long time now as former clients did not receive their deposits back. As a direct result of the enactment of the Unlawful Online Gambling Enforcement Act, the company’s dealings with virtual casinos became illegal and the company was forced to cut all its ties with firms that offer online gambling to Americans. United Stats’ citizens that wanted their money back could not get it as it was illegal for NETeller to process transactions made by online gambling provides.

The company is hoping that the issue will be settled in the very immediate future and that all sides would receive what is rightfully theirs. On June 4th, NETeller agreed to distribute all funds back to their customers as soon as the investigation is over. A special plan has been comprised detailing the process in which United States customers could get their money back. The company’s shares will remain suspended until all processes against it will be resolved. NETeller will also need to publish its audited annual accounts for 2006. The company is battling in all fronts in an attempt to rebuild its legitimacy in the American market.

Things haven’t been easy inside the company as well. The board of NETeller accepted that resignation of Gord Herman from the position of Executive Chairman and Director of the firm. Dale Johnson will take his place as a non-executive Chairman. Herman stated that he will take some time and concentrate on personal matters. It hasn’t been a year since the anti online casino bill became reality. However, for NETeller these past months probably feel like eternity.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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