NETeller founder pleads guilty in gambling case

By Paritosh Bansal

NEW YORK (Reuters) - A founder of payment processor NETeller NLR.L pleaded guilty on Friday to a conspiracy charge over the handling of billions of dollars in illegal gambling proceeds.

Stephen Lawrence, 47, during a hearing before U.S. District Judge P. Kevin Castel in Manhattan, also agreed to cooperate with the government.

Lawrence, who is also a former chairman of the company, faces a maximum sentence of five years on the conspiracy charge for his role in the operation of the payment processor.

NETeller co-founder and former President John Lefebvre was also charged in January. The case against him is still pending, the U.S. Attorney's office in Manhattan said in a statement.

"Mr. Lawrence is very glad to have this episode over and looks forward to moving on to the next stage of his life," attorney Peter Neiman said after the hearing.

Castel allowed Lawrence to travel within the United States as well as to Canada and the Bahamas. He set a sentencing date for October 29.

NETeller, which was started in 1999, quit the United States in January, abandoning two-thirds of its business after authorities arrested the two founders.

The legality of Internet gambling in the United States was ambiguous for many years but it was effectively banned last October, when President George W. Bush signed legislation outlawing gaming financial transactions.