NETeller agrees to distribution plan for U.S. customer money

NETeller has agreed to a distribution plan for returning seized monies to U.S. customers and hopes to implement the plan no later than mid-July, according to a press release issued today.

U.S. authorities seized up to $55 million from U.S. NETeller accounts earlier this spring.

Since than time, NETeller has been working with the Southern District of New York U.S. Attorney's office and financial consulting firm Navigant to develop a distribution plan and hand over financial information pertinent to the investigation.

NETeller says it will return the money as soon as U.S. authorities conclude their investigation and allow access to the seized money.

"The agreement on the distribution plan represents a milestone in our cooperation with the U.S. authorities," said NETeller President and CEO Ron Martin. "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 July 13, 2007."

The U.S. Attorney's office offered no comment.

U.S. customers will have a limited window to withdraw funds once the seized money is freed. American customers can request their money through electronic transfer or paper check.

Customers with bank accounts already linked to NETeller will need to confirm that the account is still active in order to receive payment.

Requests must be made in full. NETeller will not allow partial payment requests, nor will they allow U.S. customers to transfer money to any other destinations. No interest will be paid on account balances.

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