Two of the founders of Neteller have been arrested while traveling in the United States and are being charged with laundering billions of dollars in funds from online gambling. The former executives are both Canadian citizens.
The case prosecutor said that both men knew when they made their company public that the companie%u2019s actions were illegal.
According to the prosecutor "Blatant violations of U.S. law are not a mere "risk" to be disclosed to prospective investors," and "Criminal prosecutions related to online gambling will be pursued even in cases where assets and defendants are positioned outside of the United States."
According to the Assistant Director of the FBI the online gambling industry was
%u201Ca colossal criminal enterprise masquerading as legitimate business.%u201D
The 2 Canadians are being charged because of their involvement with the creation and operation of an Internet Payment company that allowed the transfer of billions of dollars from American residents and overseas internet gambling companies, for the purpose of placing bets and receiving winnings.
One of the men was arrested in Malibu California and the other a resident of Paradise Island in the Bahamas was arrested in the US Virgin Islands.
In 1999 the 2 men helped start Neteller, which is based in the Isle of Man and is traded publicly in the UK.