Neteller back in business

Neteller has bounced back from its recent spat with the United States Department of Justice and resumed trading on the London AIM Wednesday.
The e-wallet, which is based in the Isle of Man, recently consented to a Deferred Prosecution Agreement (DPA) with the United States Attorney’s Office for the Southern District of New York.
NETeller has agreed to pay a $136 million penalty to the US as part of an agreement to defer prosecution approved by Judge P. Kevin Castel in a Manhattan court.
The agreement came after NETeller founders Stephen Lawrence and John Lefebvre pleaded guilty to a number of charges, including criminal conspiracy.
NETeller will not face prosecution if it adheres to the terms of the agreement.
As a result, the company posted a $14 million pre tax loss for the first quarter of the year. Added to the stiff penalty imposed by the United States are restructuring costs of more than $12 million.
The fallout from the controversy with the United States has hit the company hard. Mean daily intake from customers stood at $1.71 million from January to March, compared to $5.75 in the previous quarter.
"The restoration of trading in the Company's shares marks the first step in a new chapter for the Neteller Group following our resolution with the US authorities announced last week. With our vision to provide innovative payment solutions for e-commerce communities, our initial focus will be to dominate payments in our chosen online gaming markets,” said Ron Martin, president and CEO of Neteller.
However, in reality the company may struggle as it implements plans to return $94 million to US customers by the end of the month.
Neteller currently has a cash balance of approximately $74 million.

Casino News: Neteller back in business

Neteller back in business