|California based payment processor Electronic Clearing House (ECHO), an e-wallet well-known in the online gambling community, has secured a non-prosecution agreement with a US attorney after agreeing to pay the US government $2.3 million in profits it had made since 2001.|
Alongside other major e-wallets, ECHO was targeted for investigation following the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA), which prohibits American financial institutions processing transactions for Internet gambling companies.
ECHO’s e-wallet arm, which closed last year as a result of the UIGEA, processed payments to several e-wallets, including the high-profile company NETeller, that were then used by individuals to deliver money to their accounts at online gambling sites.
The company also pulled out of a $142 million merger deal with Intuit, a company providing financial management for businesses, which, alongside the company’s million dollar payout to the US government, 'will negatively impact our near-term financial results,' according to ECHO Chief Executive Joel Barry. However, Barry also confirmed that the company’s future remained 'solid'.