Former Neteller Execs Concede Defeat
By Joe Zusman | July 13, 2007
Within two weeks of each other, Neteller co-founders Stephen Lawrence and John Lefebvre gave up in their fight with the U.S. Department of Justice.Arrested in January on conspiracy charges for promoting internet gambling through providing funds transfers to and from online gambling sites, the two men have both pleaded guilty in a Manhattan federal courtroom.
Lawrence’s plea came at the end of June.Lefebvre followed this week.Both had previously professed their innocence, as Neteller is not a U.S. company and its clients are legal and licensed in their jurisdictions.The bulk of Neteller’s customer base, however, was American; the company stopped serving U.S. customers after the two men were arrested.
Despite previous claims in official company literature that the Neteller business was not in violation of U.S. law, even though the U.S. government may claim that it is, the two co-founders both backtracked in court, providing almost exactly the same statements:
“I eventually came to see that promoting payment services to online gambling businesses serving customers in the United States was wrong.” — Lefebvre
“I came to understand that providing payment services to online gambling Web sites serving customers in the United States was wrong.” –Lawrence
It is unfortunate that they have made a one-eighty, especially as the fight to legalize and regulate online gambling in the U.S. grows, but it is understandable.They knew they couldn’t win, so it was probably wise to do what they needed to do to try to minimize any punishment and just move on with their lives.
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