Archive for the 'Criminal Law' Category

NETeller Founders Arrested on Conspiracy Charges

NETeller, a payment processor, now has two former founders charged with federal crimes.

Stephen Lawrence, 47, has plead guilty to a conspiracy charge over the way Neteller handled billions of dollars in gambling proceeds obtained illegally. He faces a maximum prison sentence of 5 years on the conspiracy charge in this case, presided by U.S. District Judge P. Kevin Castel in Manhattan, New York. The judge has allowed Lawrence to travel inside of the USA and also the Bahamas and Canada.

The other Neteller co-founder was former company president John Lefebvre.

“Mr. Lawrence is very glad to have this episode over and looks forward to moving on to the next stage of his life,” said Lawrence’s attorny Peter Neiman.

What is NETeller?

They are a publically traded company, found on the London Stock Exchange Alternative Investment Market. They operate under the e-wallet brand names Neteller and 1-Pay, as well as Netbanx for credit card processing and debit card business. There are more than 3,500 online merchants across varied industries that accept Neteller payments. After-tax profits are very high for Neteller with $102 million in 2006. They accept Pounds Sterling, Euros, US Dollars, Canadian Dollars, Swedish Krona or Chinese RMB in their accounts - which are free for customers (merchants pay the cost). A customer, after signing up, can then load up their Neteller account with cash from their banking institution or a credit card (which has a fee). The big thing is that Neteller doesn’t accept United States customers at all - and Canada and Turkey are barred from using the service to fund their gambling accounts.

They started business in 1999, with a huge customer base in the United States. But then the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) passed into law, signed by United States President George W. Bush. Once authorities arrested the two founders, Lawrence and Lefebvre, Neteller abandoned all business in the United States, effectively dropping two-thirds of its business.

This is the message they have front page on their web site for United States users:

“As part of the NETELLER Distribution Plan, which began on 30 July 2007, all US members were given until 26 January 2008 to log in to their account to withdraw any funds from their account. During this time, several reminders were sent to members who continued to hold a balance in their account in an attempt to ensure they accessed their account prior to the deadline. As of 26 January 2008, US members will no longer be able to log in to their accounts.”

Most online poker and internet casino players I know are definitely not happy with the Neteller situation. After the sudden drop of the United States market from Neteller’s business plans, casino gamblers were left scrambling to find an alternate solution for their casino funding needs. But you can understand that with arrests of their two founders, they’d be a little skittish about staying in the USA market!

Thanks go out to online casino blog Casino Smack for contributions to this article. Join their email blog update list or their RSS blog feed for up-to-date coverage of the online casino gaming world.

Oldest Prison Inmate in New York Has Been Freed

Now he’s free to enjoy life.

At 89 years old.

Charles E. Friedgood, avoided being fried good on the electric chair and is now out. He was a wealthy surgeon in Long Island who was convicted way back in 1976 of murdering his wife and is now in a veteran’s hospital.

“There is a reasonable probability that, if released, this inmate will live and remain at liberty without violating the law,” said the parole commissioners. Yeah, I’ll definitely agree that at age 89, his best crime years are behind him.

He will now participate in an anger management course (undoubtedly the “old guy” at the classes), will undergo a mental evaluation, and cannot contact the victim’s family. Which happens to include his own children and grandkids unless there’s a parole officer present.

Sixth times’ a charm

He actually was considered for release six times before they let him free.

“While some have formally expressed opposition to this inmate’s release, for various reasons, they are significantly outnumbered by those expressing support for his release.”

Money was a factor

Now don’t go thinking that the parole commission was being really nice that day and decided to let this ol’ grandfather go. Money plays a role. The doctor has terminal cancer, has undergone many operations, including a colostomy. All these have amounted to $300,000 in costs for the state.

How did he murder his wife?

Originally, the investigators on the case ruled that his wife Sophie died from a stroke. This was recorded on her death certificate. However, the police were very suspicious because Dr. Friedgood signed the death certificate himself and then made sure her body was rushed out of New York for a quick burial. When the medical examiners fully examined the body, they discovered he used his state medical license to get responsibility for his ailing wife and then inject her five times with Demerol which killed her. He was then arrested five weeks later at Kennedy International Airport with $450,000 of his wife’s money, bonds, and jewelry. He was actually on his way to Europe to hook up with his mistress, who was a Danish nurse with whom he had two kids already with. He was then tried and subsequently convicted of second-degree murder.

Final comments by the parole commissioners

One commissioner, Chris Ortloff, vigorously opposed the release. He felt that releasing Dr. Friedgood, “so deprecates the seriousness of his offenses, the murder of his wife and subsequent grand larceny of hundreds of thousands of dollars from her estate, as to undermine respect for the law. In colloquial terms, this case, given the inmate’s advanced age and medical prognosis, raises the proverbial question: ‘If any offense deserves the maximum sentence of life in prison, does this one not do so?’”

Most, however, were sympathetic to Dr. Friedgoods advanced age.

“During your interview, you repeatedly cited your status as a senior citizen. It is important to recognize that your actions deprived your wife of the ability to enjoy such status.” said commissioner Thomas P. Grant. However, “the likelihood of your engaging in criminal activity in the community is virtually non-existent.”

Should senior citizen status be enough to parole a convicted murderer?

No Sex Offenders with Candy on Halloween

Trick or treat, give me something good to eat.

Unless you’re a sex offender, in which case you’re going to jail.

There’s a law in New Jersey that forbids sex offenders from giving out candy on Halloween. That means Lester down the street won’t giving out chocolate yum-yums this year.

Don’t think this law is only going to affect a small number of people. Did you know there are 2,200 sexual crime offenders registered in the state of New Jersey?

It makes you think though, how many of these sex offenders used candy to lure children? Did any of them poison food or candy and then give it to them? Did they somehow put some sort of date rape drug in candy or food?

It seems the main goal is to prevent the contact between children and sex crime offenders. It’s a very reasonable concern. Most parents are already wary of their children coming into close contact with strangers, now add the fact that these strangers are convicted sex offenders and that concern raises to another level. People nowadays are scared to let their children out alone and if they know a convicted sex offender is out there then they’re even more scared.

Do sex crime offenders commit their crimes again? If they’ve paid their dues to society shouldn’t they have the same rights as everyone else?

Let’s get some facts. The term for repeat offenders is recidivism and the rate of repeating the crime is recidivism rate. The problem with getting accurate numbers here is that the rate for actual reporting sex crimes is very low. Victims of sex crimes are twice as likely to tell friends and family than they are to go to authorities, like the police. And then we look at the actual sex offenders. A study performed lie detector tests (polygraph) on sex offenders in prison who had committed their crimes on less than two known victims. The researchers discovered that these offenders actually averaged 110 victims and 318 offenses. So there is a major problem with under-reporting sex crime offenses.

How are they going to keep tabs on these sex crime offenders to make sure they aren’t giving out candy?

There will be at least sixty parole officers and members of the 12 district officers patrolling and checking on the offenders. Sixty officers versus 2,200 sex offenders? Hmm, seems like there’s a number disparity here. But with police departments already stretched so thin, it’s a tough situation for police departments. Officers have to be patrolling other areas where public safety may be at risk also.

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