NETeller seeks legal help in fraud probe

NETeller has called on the advice of global law firm Clifford Chance to help the company deal with the investigation by the U.S. Department of Justice (DoJ) into its dealings with online gambling companies.

The DoJ froze NETeller accounts last month as part of its investigation into the two founders of the e-wallet who were arrested in January. They are being charged with facilitating illegal gambling by allowing money transfers to online gambling sites.

The law firm is in the process of fielding regulatory and securities teams in its New York and London offices to advise the e-wallet company.

In New York, John Carroll and Warren Feldman are working with NETeller, while in the U.K. equity capital markets partner David Lewis and senior associate Jenine Hulsmann are working with the company as well.

NETeller is not only having to deal with the legal threat in the United States, but also had its stock listing suspended in the United Kingdom last month.

Clifford Chance enforcement head Carlos Conceicao is also leading a secondary team to advise NETeller on its obligations to the Financial Services Authority. The FSA is responsible for policing NETeller as a regulated e-money issuer.

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