NETELLER FOUNDER PLEADS GUILTY TO
CONSPIRING TO PROMOTE ILLEGAL
INTERNET GAMBLING BUSINESSES

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 Non- executive 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. 07-175 

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