LAWFUEL – The Legal Newswire – MICHAEL J. GARCIA, the United States …

LAWFUEL – The Legal Newswire – MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, announced that JOHN DAVID
LEFEBVRE, a founder and former President of the NETeller Group,
pleaded guilty today to charges that he conspired with others to
promote illegal gambling by providing payment services in the
United States to offshore internet gambling businesses.

According to the documents filed and LEFEBVRE’s plea allocution
in Manhattan federal court:
In 1999, LEFEBVRE, together with STEPHEN ERIC LAWRENCE,
founded the NETeller Group, a group of companies that provided
online payment services to internet gambling companies. In July
2000, LEFEBVRE and LAWRENCE began providing payment services
through NETeller Inc., a Canadian company based in Calgary,
Alberta. In 2004, LEFEBVRE and LAWRENCE began providing payment
services through NETeller PLC, a public company based in the Isle
of Man. The NETeller Group provided those services to internet
gambling businesses located outside the United States, so those
businesses could take bets from gamblers in the United States,
where such betting is illegal. In April 2004, NETeller PLC went
public on the Alternative Investment Market (“AIM”) of the London
Stock Exchange.

In addition to founding the NETeller Group, LEFEBVRE
served those companies in senior management positions, including
as President of NETeller, Inc. from 2000 to 2002 and as a Nonexecutive
Director of Neteller PLC upon its admission to AIM on
April 14, 2004.

LEFEBVRE pleaded guilty to one count of conspiracy to
use the wires to transmit in interstate and foreign commerce bets
and wagering information; to conduct illegal gambling businesses;
to engage in international financial transactions for the purpose
of promoting illegal gambling; and to operate an unlicensed money
transmitting business.

During the course of the plea allocution,
LEFEBVRE admitted that, during the time he operated the NETeller
Group, he learned that laws in the United States prohibited
certain funds transfers for the purpose of promoting gambling,
and as a result, he knew his conduct was wrong. LEFEBVRE, 55,
faces a maximum sentence of 5 years’ imprisonment and a fine of
$250 thousand, or twice the gross gain or loss from the offense,
when he is sentenced before United States District Judge P. KEVIN
CASTEL on October 29, 2007. LAWRENCE also admitted to forfeiture
allegations requiring him to forfeit $100 million. In a related
case, former NETeller President and Board of Directors member
STEPHEN ERIC LAWRENCE pleaded guilty on June 29, 2007 to
participating in the same conspiracy and also admitted to a
forfeiture allegation of $100 million for which he is jointly
responsible with LEFEBVRE.

Mr. GARCIA praised the investigative efforts of the
Federal Bureau of Investigation.
Assistant United States Attorneys TIMOTHY J. TREANOR,
CHRISTOPHER P. CONNIFF, and SHARON COHEN LEVIN are in charge of
the prosecution.

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