Neteller Suspends Its Shares Following Arrests

16-Jan-2007, 19:15

Neteller plc announced today that it has temporarily suspended its shares on the London AIM stock market after its two Canadian founders and former directors were arrested in the United States. Investors were left rather shocked by the news after Neteller issued the following statement:

"While travelling separately in the US, Mr (Stephen) Lawrence and Mr (John) Lefebvre, both former directors of the Company, were detained by US authorities on Monday, 15th January 2007. Other than as shareholders, neither Mr Lawrence nor Mr Lefebvre has any current position with or connection to NETELLER. The Group has not received any communication or correspondence from any US authority regarding this or any related matter. . . Pending clarification of the situation the Board has sought immediate temporary suspension of NETELLER's shares. Further information will be issued in due course."

Stephen Lawrence resigned as a non-executive director of Neteller on October 13, 2006 having stepped down as non-executive chairman of the Company on May 11, 2006. John Lefebvre had earlier resigned as a non-executive director of Neteller plc on 15th December 2005. Both individuals continue to hold, however, substantial minority stakes through their own investment corporations.

It is not known on what grounds the arrests were made or whether there is any connection with Neteller itself. Previous activity by American authorities in other cases involving online gaming executives have related to allegations of wrongdoings by individuals in earlier years. In any case, it is easy to speculate that pressure is being brought to bear on Neteller at a sensitive time given the passing of the "Unlawful Internet Gambling Enforcement Act of 2006" in October 2006 and the nine-months period of consultation in which the construction of the law will be established.

Neteller plc has already publicly stated its intention to comply with the American legislation despite not being under the jurisdiction of America. In the meantime, it continues to do business involving the transfer of funds to the accounts of poker companies such as Pokerstars, Full Tilt and MANSION, three of the major entities that still accept American players.