FBI Arrests Neteller Execs

Alcibaides writes "In a follow-up to the 2006 law attacking Internet gambling, the FBI arrested two former Neteller executives in 'connection with the creation and operation of an Internet payment services company that facilitated the transfer of billions of dollars of illegal gambling proceeds.' Apparently, the execs were 'ambushed' as they passed through the U.S. on connecting flights. Consequently, Neteller has dropped all gambling-related activity to U.S. customers, a move not expected for several months."

Comments

WTF?

[vertinox]

FTFA:

NETELLER suspended trading its shares on the London Stock Exchange in light of the detention of founding members Stephen Lawrence and John Lefebvre. Besides owning stock in NETELLER, the two do not hold any positions with the company. I thought the whole point of being a shareholder was that you couldn't be charged for the wrong doing of the corporation?

Re:WTF?

[Anonymous Coward]

Not only that, if the linked article is accurate, it doesn't seem that they broke the laws while in the United States. US citizens and banks did. They seem to have simply offered a service online; the service was even based outside the US.

This also serves to point out another problem with US laws--they are so damn imprecise, broad, so encompassing, that it's simply up to the prosecution to pick and choose who they want to send to prison. Prosecutorial discretion, usually leveraged wisely, has now just become another tool to further political goals and new types of discrimination.

This is like an American posting on an internet site hosted in Germany something that flies against hate speech laws in Germany from his home computer. Then, while traveling in Germany on a connecting flight to Italy, getting arrested. Ridiculous...and dangerous--this sets up the possibility of backlash as precedent for US citizens traveling to foreign countries to be arrested for "crimes" that were not illegal and performed in the US but flies in the face of foreign laws.

Re:WTF?

[westlake]

it doesn't seem that they broke the laws while in the United States. US citizens and banks did, the service was even based outside the US.

This is the Kazaa defense. The Allofmp3.com defense.

It doesn't matter where the casino is based. It matters that the casino was being marketed to customers in the U.S. It matters that the casino was accepting payments from U.S. accounts.

If you have assets in the states that can be seized, they will be seized. If you have people in the states who can be arrested, they will be arrested.

These are the ground rules when you set up shop off-shore.

Worrying...

[ZzzzSleep]

Note to self....
Don't ever take a flight that stops over in the US if I've done something that the US might not like, even if it's perfectly legal in my country.

Fun while it lasted.

[squirrl811]

Well, I played too much online poker anyways.

I don't see why the federal government is making such a huge deal out of online gambling, aside from the fact that it is currently not taxed. I don't really think the government deserves any more money, but I'd rather pay a small tax on my gaming than have it outlawed as some mysteriously corrupt moral issue. Other than taxation, how is this any different from the government endorsed lottery or allowed casinos in Atlantic City and Vegas?

Re:Fun while it lasted.

[Anonymous Coward]

Why would an online casino stack the deck? They make money no matter who wins. The more people playing, the more money they make. If players suspected any sort of Tom-foolery they might leave. The casinos have way more to lose than they have to gain by doing it.

Re:Fun while it lasted.

[Pfhreakaz0id]

I have a database of 80,000 hands of online poker (which is small potatoes compared to some). Everything is in statitistical line with what it should be (and yes, I've even ran queries of how often I flop a pair, etc.).

The house has no interest in stacking the deck. They are making a crapload. The people who say this are generally people who lost a bunch of money playing online poker, probably because (GASP) they aren't very good.

Those executives should've gotten into warmaking.

[Anonymous Coward]

The warmaking industry is apparently a far safer place for an executive to be. After all, their products are only being used to kill people. It's not like they're offering a completely voluntary service like gambling, which of course is among the most terrible things that can be done. I mean, how dare somebody be given the ability to spend their money as they choose!

US is trying to enforce its law on the whole world

[viking80]

It is worrisome how the US is trying to enforce its law on the whole world.

Many companies/people operate fully within the law of the land they live in. If this is breaking a US law, then the US should work with that government to harmonize the laws.

This is similar to how Muslim courts found danish cartoonist guilty of depicting mohammed, and condemned them to death.

Just too strange for words

[Tet]

the FBI arrested two former Neteller executives in 'connection with the creation and operation of an Internet payment services company that facilitated the transfer of billions of dollars of illegal gambling proceeds.'

Leaving aside for a moment the ridiculous two faced nature of American anti-gambling laws, this is just beyond a joke. As I understand it, the two former execs in question had left the company before the SAFE Port Act was passed. So they've been arrested for setting up a company that is 100% legal in their country of origin, and was legal at the time in the USA as well (in fact, it's still legal for non-gambling related payments), and they no longer have anything to do with the company in question, aside from still holding shares.

"Land of the free", huh? I'm lost for words. The American legal system is just a joke.

Re:Just too strange for words

[Anonymous Coward]

And it takes an even more twisted mind not to understand that to be arrested is the ESSENCE of loss of freedom. You think sitting in a cell doesn't count until you've been convicted?

Re:US is trying to enforce its law on the whole wo

[viking80]

What you are suggesting is very dangerous. If I put up a web page, it should sufficethat I comply with all local laws.

If I have to consider the laws of all nations in the world, I pretty much have to hire attorneys from each of the contries to review my website.
And I can not:
1. Enjoy fredom of expression (Illegal all over, including china)
2. Critizise leaders (putin, il-jung-sum, most communists and others)
3. Advertize alcoholic beverages (Illegal in many arab countires)
4. Have any sexual material (again illegal in many countires)
5. Have any religious material worshipping any other gods than allah
6. Have any religious material worshipping any other gods than jhave
7. Have any religious material worshipping any other gods than
8. Download music(illegal in USA)

An in many cases illegal means "To be stoned to death"

Is this what you advocate?

Folding Your Opponent's Hand

[Doc Ruby]

The offline casinos, not just in the US, must love this action. I wonder how much they paid for it?

Re:Not US Citizens...

[EvanED]

The only wrinkle in this case is that it is my understanding they committed the offense while not in the US.

The only wrinkle?! That's the difference between not committing a crime and committing one!