Neteller makes statement on frozen US funds

In response to the missing of its own self imposed deadline regards the refunding of frozen funds to its US customers, beleaguered e-wallet Neteller has issued a statement confirming the "..continuing uncertainties the company faces although the company is making progress towards achieving restoration of trading."

Neteller has also confirmed that it is still in the process of finalising its annual results.

Neteller froze the accounts of its US customers following the arrest last year of two of its founders by US Department of Justice (DOJ) authorities. Trading in Neteller shares have been suspended on the London stock exchange since then pending a DOJ investigation which has sought to establish whether the company was in violation of stringent new US anti-online gambling laws. US customers who play online bingo have been amongst those affected by the spat.

US customers have had little joy from the Isle of Man-based company which has stated its intention not to pay out any interest accrued on the frozen funds, a fact that will impact further on US customers caught up in the debacle. Operators of free online bingo halls catering to US customers are thought to be amongst those also affected by Neteller’s actions.

Explaining that Neteller is still "cooperating" with the US Attorney's Office for the southern district of New York, the company says that the refunding of frozen accounts will not happen until the US investigation is concluded. It’s thought this could take until at least July 13.

Neteller’s Group President and CEO Ron Martin said: "The agreement on the Distribution Plan represents a milestone in our cooperation with the US authorities. While we are disappointed not to have been able to return funds to our US customers at this point, we believe that the steps we have made in our discussions are significant and we hope to be able to announce further progress with the USAO by 13 July 2007."

Written by John Witherspoon - Play bingo online at http://www.mybingostreet.com and check out  online bingo community.