18th Jul 2007 17:09
NETeller PLC18 July 2007 NETELLER PLC (the "Company") NETELLER ANNOUNCES SETTLEMENT OF US SITUATION Wednesday, 18 July 2007 - NETELLER Plc (LSE: NLR), the independent global onlinepayments business, today announces that the Company has entered into a DeferredProsecution Agreement ("DPA") with the United States Attorney's Office for theSouthern District of New York ("USAO"). The DPA represents the resolution ofthe USAO's investigation into the Company. Pursuant to the DPA, the Company has consented to the filing of a criminalinformation relating to transactions between Internet gambling merchants andpersons located in the United States. The USAO has agreed to defer theprosecution of any federal charges and, as a consequence, the Company will notbe convicted of any federal crime, as long the Company fulfils the setconditions of the DPA during the two year term of the agreement. At theconclusion of the two year term, the criminal information will be dismissed. Thekey terms of the DPA are set out in more detail later in this announcement. TheUnited States District Court for the Southern District of New York has approvedthe deferral of the prosecution. As part of the DPA, the Company has alsoagreed to forfeit US$ 136 million to the United States. This amount includesthe approximately US$ 60 million that the USAO has previously seized. Additionally the Company announces: • Following this resolution, the Company will seek to publish its audited annual accounts for 2006 and have its shares restored to trading on AIM as soon as practicable thereafter. • The Company is using its best efforts to allow withdrawal requests as soon as possible and US customers will be able to sign in to their NETELLER account to request the withdrawal of their funds by no later than 30 July 2007. The exact date upon which US customers will be able to make requests will be communicated to US customers via email and through our website. Ron Martin, President & CEO, said "This agreement resolves the USAO'sinvestigation relating to the Company's former US business activities. Webelieve that this settlement is in the best interests of NETELLER and itsshareholders. "Our customers, employees and shareholders have all patiently waited for thisresolution. We anticipate within the next few weeks that we will have fullyimplemented the plan for the return of funds to our US customers and are hopefulthat, by that time, we will have restored the Company's shares to trading onAIM. We can now begin to refocus our efforts on building and strengthening theNETELLER business in the growing markets of the European and Asia Pacificregions. I look forward to sharing further information about the Company'sprogress over the coming months." Enquiries: Andrew Gilchrist, VP Communications + 44 (0) 1624 698 713NETELLER Plc Citigate Dewe Rogerson + 44 (0) 207 638 9571Sarah Gestetner/Sebastian Hoyle/George Cazenove If you have any further queries relating to the above, please contact theCompany's nominated adviser on +44 (0) 20 7991 8888. * * * Key terms of the Deferred Prosecution Agreement The settlement takes the form of a two year DPA with the USAO. In the DPA,NETELLER has consented to the filing with the United States District Court forthe Southern District of New York of a criminal information charging NETELLERwith participating in a conspiracy in violation of certain US laws. If NETELLERfulfils its obligations under the DPA, the criminal information will bedismissed, following the two year term. Specifically, the DPA contains the following main points: • NETELLER, as detailed in the "Statement of Admitted Facts" attached to the DPA, admits that it had operated in the US an unlicensed money transmitting business and had participated in the performance of financial transactions for the purpose of promoting unlawful transactions between internet gambling merchants and persons located in the US. • NETELLER agrees that it will pay an amount to the United States totalling US$ 136 million which is disgorgement of certain profits received by NETELLER from the activities described in the Statement of Admitted Facts. This amount includes the approximately US$ 60 million that the USAO has previously seized. NETELLER agrees that it will satisfy the remaining portion of its forfeiture obligation with a payment of US$ 40 million to be paid on or before 15 October 2007, and the remaining balance (approximately US$ 36 million) to be paid on or before 17 January 2008. • NETELLER agrees to cooperate fully with US authorities in all matters relating to the ongoing investigations by the USAO. • NETELLER agrees to fully implement procedures and controls to prevent illegal transactions between internet gambling merchants and persons located in the US and to continue to retain Navigant Consulting Inc., a forensic accounting firm, to monitor NETELLER's compliance with these procedures and controls. Distribution Plan to be implemented As announced on 4 June, the Company has agreed to a plan for the distribution offunds to its US customers. The agreed plan details the process and mechanisms bywhich US customers will be able to initiate the return of their funds after theplan is implemented. NETELLER is using its best efforts to start implementingthe plan as soon as possible and, in any event, by no later than 30 July 2007.The Company will communicate to US customers via email and through its websitethe exact date upon which such customers will be able to make requests. Restoration of trading to AIM As stated in the Company's announcement of 13 July, the Company continues tomake progress regarding the ongoing suspension of the Company's shares fromtrading on AIM. The Company is in discussions with its advisers and AIM andunderstands that the admission of the Company's ordinary shares to trading onAIM has not to date been cancelled. With today's announcement of a resolution of the USAO investigation, the Companyis now focused on finalising and publishing its audited annual accounts for2006. The Company will endeavour to post the 2006 accounts to itsshareholders as soon as practicable following which the Company anticipates thattrading in the Company's ordinary shares on AIM will be restored. Further details will be announced as and when they become available. Notes to Editors The NETELLER Group Trusted by millions of consumers to transfer billions of dollars each year, theNETELLER Group operates the world's leading independent online payment business.The Group specialises in providing innovative and instant payment services wheremoney transfer is difficult or risky due to identity, trust, currency exchange,or distance. Being independent has allowed the Group to support thousands ofretailers and merchants in many geographies and across multiple industries. NETELLER Plc is quoted on the London Stock Exchange's AIM market, with a tickersymbol of NLR. NETELLER UK Limited is authorised by the Financial ServicesAuthority (FSA) to operate as a regulated e-money issuer. For more informationabout the Group visit www.neteller-group.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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