ACH Records At NETeller Founders Hearing?
Published: Wednesday, February 14, 2007 Online-Casinos.com
ACH RECORDS TO BE PRESENTED AT NETELLER FOUNDERS HEARING?
It's probably not a happy Valentine's Day for the NETeller founders arrested by US authorities for alleged "money-laundering"
With the next court hearing for NETeller founders Stephen Lawrence and John Lefebvre scheduled for February 14, industry observers will be watching what investigation material is produced by the US authorities who arrested the NETeller shareholders last month.
According to details already lodged by the US agents (see below) it appears that US authorities may have access to NETeller financial records, although the e-wallet has revealed that it is still in talks with Department of Justice officials. But the submissions also suggest that the data held additionally includes Automated Clearing House (ACH) records that may have detail on individual transactions:
"Subpoena from the US Bank demonstrate that, from, in or about March 2006 up to and including in or about April 2006, a total of approximately $50 million was transferred from an account in the name of the Payment Company at the US Bank in the United States to an account in the name of Cardload Inc. at National Bank of Canada, Calgary, Alberta, Canada.
"NETeller PLC's 2004 annual report states that Cardload Inc. is a wholly-owned subsidiary of NETeller
"Records of automated clearing house ("ACH") transactions obtained pursuant to subpoena from an automated clearing house located in the United States demonstrate that NETeller processes a significant amount of customer transactions through the automated clearing house system, including transactions from customers in Manhattan.
"The ACH system permits NETeller to handle internet-based customer transactions. These records further demonstrate that NETeller uses a payment service company (the"Payment Company") to conduct its customers' ACH transactions in the name of the Payment Company. By doing so, NETeller PLC conceals the nature of these financial transactions.
"The Payment Company receives funds in the United States on behalf of NETeller PLC, and then transfers the funds out of the United States to accounts controlled by NETeller PLC in Canada.
"Records of wire transfers obtained pursuant to subpoena from a bank in the United States (the "US Bank") demonstrate that, from in or about January 2006 up to and including in or about March 2006, a total of approximately $98 million was transferred by wire from an account in the name of the Payment Company at the US Bank in the United States to an account in the name of JSL Systems Inc. at National Bank of Canada in Calgary, Alberta, Canada."
Neither Lawrence or Lefebvre, who are Canadian citizens, were employees of the Isle of Man based and FSA-regulated NETeller plc at the time of their arrests, although both men are substantial shareholders having founded the company in Canada back in 1999. They were released from DoJ custody on $5 million bail each shortly after their arrests on U.S. soil.
