Two founders and former top executives of one of the biggest payment processing companies, which serves online casinos and online poker rooms, were arrested in the United States.
US federal prosecutors announced Tuesday that Neteller's largest shareholder and former chief executive officer Stephen Eric Lawrence, 46, and John David Lefebvre, 55, a former president of the company were arrested and charged with channeling billions of dollars in gambling proceeds to overseas betting operations.
Neteller suspended trading in its shares on the London Stock Exchange in response to the arrest of the two former executives. The investigation on Neteller's activities started in June 2006, prior to the Unlawful Internet Gambling Enforcement Act was issued, while the alleged illicit activities took place in 2005.
Neteller basically functions as a middleman between gamblers and offshore betting operations. A gambler who wants to place bets at offshore sports books or online casinos can open an account with Neteller, which transfers the money to the gambling sites.
Lefebvre and Lefebvre were charged with conspiring to transfer funds with the intent to promote illegal gambling. If convicted, they face up to 20 years in prison.
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