• Over $78 Million Neteller, Citadel and FirePay Funds Siezed By DOJ

    19 May 2007


    By now most people with an interest in online gambling know about the arrest of the Neteller founders and the confiscation by the US DOJ of over $55 million of customer funds said to be in transfer through US financial institutions at the time of the arrests.

    But did you know that on May 14th the Optimal Group, owners of the e-wallet FirePay, reported they are voluntarily working with the US Attorney’s Office in the Southern District of New York (which coincidentally is the same office that arrested the Neteller duo) in connection with an investigation into the online gambling industry? They revealed the US Attorney’s Office issued seizure warrants for certain company funds; approximately $4.2 million in a FirePay reserve account and about $15 million Optimal Payments has in a money market account.

    Did you also know about Citadel? May 14th in NewsWire “Citadel Commerce Corp, a wholly owned subsidiary of ESI, today announced… 9.25 million Merchant Reserve Funds frozen by its processor in the USA have now been seized by the U.S. Department of Justice (DoJ). All of these funds are Merchants’ Reserves related to internet gaming except for approximately US$ 941,000 of Citadel’s own capital. The company is continuing to work with the DoJ through its legal counsel to resolve the situation.”

    Several things immediately come to mind when reading these reports. First, the monies seized and being held by the US DOJ totals over $78,450,000. Second, the releases from Optimal and Citadel were the same day. Third, every report from all three companies, Neteller, Citadel and FirePay, clearly states that the companies are voluntarily working with the DOJ. These companies represent the three largest e-wallets operating on the web today. Correction: three largest e-wallets that were operating on the web when the DOJ made the Neteller arrests. If a person was gambling online, in all probability they were using one of these three e-wallets to fund their accounts. I know if someone had seized a couple million dollars of my money, I’d cooperate too. But to what extent are these companies cooperating? The reports from Citadel and Optimal prove the US DOJ is still moving on these charges and does not appear to be slowing down.

    The US DOJ is definitely on a mission, over zealous and a little out of control. The question is, is that mission based on facts and law or beliefs and morals. I believe they will continue on this mission until they are challenged by a court of law. The longer they can put off that day of reckoning, the better their odds. The longer they can intimidate, the less likely they will be challenged. They are currently under fire for overstepping their boundaries with the Patriot Act and the firing of US Attorneys. But no one seems to want to challenge them on this and the American people are very reluctant to become actively involved. They’d rather someone else do it.

    We need a hero, but I’m afraid they are a scarce commodity these days. By now, I’m sure whatever heroes are left in the world are a little tired of sticking their necks out just to get thrown under the bus. I have heard though that David Carruthers, ex-CEO of BetOnSports, may be applying for the position.

    Related News

    • Bgaming s huge success with fruit million slot

      Gambling News

      BGaming’s Huge Success with Fruit Million SlotIvan Stefanovic19 January 2021

      BGaming released in the middle of December 2020, a video slot called Fruit Million, which drew a lot of attention from punters. In just 10 days after the slot was launched, the game was in the top eight of the 100M-GGR casino. Betting Options and Features The 5-reel, 4-row slot with 100 active paylines offers more than a standard classic slot. The maximum potential win is 3000x the bet, which is really good, especially since the RTP of 97.10% is also high and above the average.

      Read full article
    • Mega moolah winner

      Slot Winners

      Largest Euro Jackpot Win in Sweden: Mega Moolah Pays Out Over €14 Million!Kristina Vujadinovic25 August 2020

      Microgaming’s smashing-hit Mega Moolah slot has made another lucky player richer for the seven-figure win. By triggering a whopping €14,239,539.84 prize at LuckyCasino, the Swedish punter has become the eighth millionaire so far this year to have been made on the software provider’s record-breaking progressive jackpot network. In this particular online gaming venue, this has been the biggest ever won jackpot since its opening.

      Read full article
    • Seven millionaires in seven months on microgamings progressive jackpot network

      Gambling News

      In Just 7 MONTHS Microgaming's Progressive Jackpot Network Produced 7 MILLIONAIRES!Kristina Vujadinovic18 August 2020

      Microgaming's progressive jackpot network is one of the most rewarding ones in the industry, which a recent announcement by the provider confirms. The brand has revealed details of the latest millionaire who has scored seven figures win, as total payouts from all highest wins for the year to date surpass €30 million (from January 1st to August 1st). To recall... ... each win on the network is paid to the player in one lump sum by the operator following standard verification checks.

      Read full article