Angry customers join forces in Neteller Customer Coalition (2)

Almost immediately following the arrests of Neteller's two founders, Stephen Lawrence and John Lefebvre on January 15, Neteller froze the accounts of all US customers, leaving them no method for withdrawal. In addition $55 million in pending transactions was seized by the United States Attorney’s Office for the Southern District of New York (USAO). 200 angry Neteller customers, who collectively have no less than $500,000 locked up at NETeller, have now joined forces in the Neteller Customer Coalition in order to be prepared in the event legal action may be required to get their funds released.

According to a spokesman of the Neteller Customer Coalition some members have over $80,000 stuck at Neteller. Collectively the 200 members are worth $500,000 of frozen Neteller dollars. In the last week membership of the group almost tripled, so expect these numbers to grow exponentially.

If you are also affected by the Neteller disaster, please take a few minutes of your time to join the Neteller Customer Coalition before reading further. You can join the Coalition at the following url:

http://sports.groups.yahoo.com/group/NetellerCustomerCoalition/

Another individual duped by Neteller and/or the DOJ is Isaac Haxton, who won $800,000 finishing 2nd in PokerStars' Caribbean Adventure tournament in the Bahamas. After depositing his winnings from his PokerStars account to Neteller it now sits there - being frozen indefinitely. Besides not knowing when the funds will be released, if ever, Neteller also refused to provide information regarding the beneficiaries of any interest that may accrue to the frozen funds, what that interest rate is and who controls the funds whilst they are frozen.

In fact Neteller doesn't communicate with their former US customers at all. A spokesman of the Neteller Customer Coalition, who also moderates the group, summarized Neteller's lack of professionalism in this respect as follows: "They have stonewalled everyone. Completely. The press, customers and site operators alike. They are sticking to what's in their February 8 press release and saying absolutely nothing else. They have apparently disconnected some phone numbers because irate customers keep badgering them. They killed their online live chat feature weeks ago. Their lack of communication right now is very, very frustrating."

In the meantime the DOJ still hasn't decided whether they will continue with the case against NETeller's two founders, Stephen Lawrence and John Lefebvre, who were both both charged with conspiring to transfer funds with the intent to promote illegal gambling, and if convicted could face a maximum sentence of 20 years’ imprisonment. However this Friday US Attorney Michael J. Garcia will make an announcement whether the DOJ will be proceeding with the case.

The Neteller Customer Coalition has identified the following scenarios depending on the exact nature of Garcia's announcement:

1. CASE PROCEEDS: The case will probably drag out for months, maybe years. This outcome will likely trigger legal action from at least some of NETeller's customers. This process could start as early as Monday, March 19, following Friday's announcement from US Attorney Michael J. Garcia about whether the DOJ will be proceeding with the case. If no word comes from NETeller shortly thereafter, some members are expected to pull the trigger.
   
   
2. CASE ABANDONED: When will NETeller re-certify accounts? What will withdrawal options be?
   
   
3. CASE DELAYED: This outcome may also trigger legal action. How long should we reasonably be expected to wait?
   
   
4. DOJ & NETELLER STRIKE A DEAL: Hard to speculate what the terms might be.
   
   
5. NETELLER MAKES NO STATEMENT: Unacceptable. Period.
   
   
6. NETELLER CUSTOMERS FILE SUIT: Class-action? Or just a gaggle of plaintiffs? How is a lawyer selected? What is the jurisdiction? Isle of Man (as NETeller's terms specify)? Or location of primary litigant(s)? How will the lawyer be compensated? What happens if NETeller agrees to release funds regardless of lawyer's actions? Is he still compensated? How are court costs covered in the meantime? BTW everyone who agreed to Neteller's Terms of Service (updated last September after the UIGEA was passed) opted out of the right to participate in a class-action lawsuit against NETeller!
   
   
7. OTHER?

Make sure you join the Neteller Customer Coalition as soon as possible. It's better to be assembled and organized now -- before action is necessary -- than later, in the 11th hour. Make your voice heard. The Neteller Customer Coalition is a great place to exchange ideas. It's also very healthy for people to be able to vent and not feel so helpless.

Update:

NETeller co-founders Stephen Lawrence and John LeFebvre and the U.S. Attorney's office have agreed to another extension in the NETeller case. The next hearing is scheduled for April 16, said Rebekah Carmichael, a spokesperson for the Southern District of New York U.S. Attorney's office.