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http://www.legalweek.com/Articles/1014069/CC+called+in+as+online+gaming+company+faces+US+fraud.html
CC called in as online gaming company faces US fraud probe
Author: Caroline GrimshawPublished: 08/03/2007 01:41
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Clifford Chance (CC) has been called in to advise embattled ‘virtual wallet’ Neteller on its investigation by the US Department of Justice (DoJ) as the onslaught facing the online gaming industry continues.
CC is fielding regulatory and securities teams across its New York and London arms to advise on Neteller’s discussions with the DoJ, which last month froze the payment processor’s funds as part of a wider clampdown on online gaming.
The magic circle firm’s New York regulatory heavyweight John Carroll and white-collar crime partner Warren Feldman are advising the company in the US.
Meanwhile, UK equity capital markets partner David Lewis and senior associate Jenine Hulsmann are advising Neteller in the UK, where the company last month had its stock listing suspended.
A secondary team, led by CC enforcement head Carlos Conceicao, is also advising the company on its obligations to the Financial Services Authority, which is responsible for policing Neteller as a regulated e-money issuer.
The ongoing regulatory procedures came after the DoJ in January charged Neteller’s two Canadian founders, John Lefebvre and Steven Lawrence, with racketeering and money laundering.
The instruction comes as lawyers scramble to deal with the ongoing fallout of last year’s decision by the US Congress to rush through tough anti-gaming legislation, which has caused prolonged turmoil in the online betting industry.
CC’s Lewis told Legal Week that the aggressive tactics against the gaming industry by US authorities were increasingly being felt at an international level.
He said: “As the noose tightens for online gaming in other parts of the world, this is an issue that will increasingly be faced by companies in Europe.
“The European Court of Justice will shortly deliver a judgment that could be a watershed for European online gambling, deciding whether the laws of member states prohibiting online gambling can restrict the provision of cross-border services.”
