NETeller Founder Pleads Guilty

Stephen Eric Lawrence, one of the founders of NETeller and its former chairman, has pleaded guilty to conspiracy in connection with the alleged transfer of Internet gambling funds. He entered the plea Friday at a hearing in Manhattan before U.S. District Judge P. Kevin Castel.

Prior to entering his plea, Lawrence said, “I came to understand that providing payment services to online gambling businesses serving customers in the United States was wrong.”

Lawrence was arrested in January along with another NETeller founder, John David Lefebvre. The 47-year-old Lawrence faces up to five years in prison on the charge. His sentencing is set for October 29th, while Lefebvre is still awaiting trial.

Lawrence, a resident of the Bahamas, agreed to cooperate with the government’s investigation as part of the plea agreement and agreed to a forfeiture of $100 million dollars. He was NETeller’s chairman from May 2006 until October 2006. According to NETeller, Lawrence and Lefebvre are no longer associated with the company.

To further cover their ass, NETeller has also stopped handling all transactions involving online gambling from customers in the United States.

And in case you’ve been living under a rock, all of this drama stems from the Unlawful Internet Gambling Enforcement Act which President Bush signed into law in October of 2006. This law, which has met with great criticism , makes it illegal for banks and credit card companies to process payments from American customers to Internet gambling sites.

For more on the fight against gambling, check out the following:

Google Bans Gambling Advertisements

Citadel Commerce Has Millions Seized by Government

NETeller Founder Pleads Guilty