Judge sets $5 mln bail for one NETeller founder Wed Jan 17, 9:04 PM ET
NEW YORK (Reuters) - A U.S. judge set bail at $5 million for one of the two founders of UK online money transfer company NETeller who are accused of illegally laundering Internet gambling proceeds, prosecutors said on Wednesday.
Stephen Lawrence, 46, and John Lefebvre, 55, both of Canada, have been charged with conspiracy to transfer funds with the intent to promote illegal gambling.
Bail for Lefebvre, who was arrested in Malibu, California, was set before a U.S. magistrate judge in Los Angeles on Tuesday and was conditioned on his turning over all travel documents, a spokeswoman for the U.S. Attorneys' office in New York said.
Travel was restricted to the Los Angeles area, with the exception of travel to New York for any court appearances that might be required, she said.
Lawrence was arrested in the Virgin Islands on Monday.
Lawrence was expected to appear at a bail hearing before a U.S. Magistrate judge in the Virgin Islands on Wednesday.
Lawrence's attorney, Peter Neiman, declined to comment on the case. An attorney for Lefebvre was not immediately available for comment.
If convicted, each defendant faces a maximum prison sentence of 20 years in prison.
In a statement on Tuesday, NETeller said it was seeking immediate temporary suspension of its stock, which trades in the UK, and that neither Lawrence nor Lefebvre had any current connection to the company other than as shareholders. The company is based on the Isle of Man.
Shares of the Isle of Man-based company have fallen 60 percent since early September, hit by the arrests in the United States of executives from British companies involved in online sports betting and the passage in October of a U.S. law barring banks from transactions involving Internet gambling.
The two men founded the company in 1999. Lawrence resigned as a non-executive director in October 2006, after stepping down as non-executive chairman in May. Lefebvre resigned as a non-executive director in December 2005.
Lawrence holds a 5.91 percent stake of NETeller through his investment vehicle Corvina, while Lefebvre holds 5.54 percent of the company through Eagle Medallion Fortress.
NEW YORK (Reuters) - A U.S. judge set bail at $5 million for one of the two founders of UK online money transfer company NETeller who are accused of illegally laundering Internet gambling proceeds, prosecutors said on Wednesday.
Stephen Lawrence, 46, and John Lefebvre, 55, both of Canada, have been charged with conspiracy to transfer funds with the intent to promote illegal gambling.
Bail for Lefebvre, who was arrested in Malibu, California, was set before a U.S. magistrate judge in Los Angeles on Tuesday and was conditioned on his turning over all travel documents, a spokeswoman for the U.S. Attorneys' office in New York said.
Travel was restricted to the Los Angeles area, with the exception of travel to New York for any court appearances that might be required, she said.
Lawrence was arrested in the Virgin Islands on Monday.
Lawrence was expected to appear at a bail hearing before a U.S. Magistrate judge in the Virgin Islands on Wednesday.
Lawrence's attorney, Peter Neiman, declined to comment on the case. An attorney for Lefebvre was not immediately available for comment.
If convicted, each defendant faces a maximum prison sentence of 20 years in prison.
In a statement on Tuesday, NETeller said it was seeking immediate temporary suspension of its stock, which trades in the UK, and that neither Lawrence nor Lefebvre had any current connection to the company other than as shareholders. The company is based on the Isle of Man.
Shares of the Isle of Man-based company have fallen 60 percent since early September, hit by the arrests in the United States of executives from British companies involved in online sports betting and the passage in October of a U.S. law barring banks from transactions involving Internet gambling.
The two men founded the company in 1999. Lawrence resigned as a non-executive director in October 2006, after stepping down as non-executive chairman in May. Lefebvre resigned as a non-executive director in December 2005.
Lawrence holds a 5.91 percent stake of NETeller through his investment vehicle Corvina, while Lefebvre holds 5.54 percent of the company through Eagle Medallion Fortress.
