U.S. attorney issues warrant for FirePay cash

FirePay is the latest online payment processor to feel the heat of the U.S. government, which has issued seizure warrants for some of the company's funds.

Shares of FirePay's affiliate, Optimal Group Inc., took a tumble Monday when the firm announced its intention to comply with a request for company information made by the U.S. Attorney's Office in the Southern District of New York.

The request is part of an ongoing investigation of the Internet gambling industry, following the institution of a U.S. online gambling ban last October.

The warrants are against $4.2 million of FirePay money on deposit in a reserve account, as well as $15 million Optimal Payments has on deposit in a money market account.

"Through counsel, the company has been assured by the U.S. Attorney's Office that the issuance of the warrants does not impact in any way upon discussions between the Company and the U.S. Attorney's Office, nor upon any eventual outcome of those discussions," Optimal said in a release Friday.

Shares fell 9.5% to 84¢ this morning. The stock peaked last May at $15.58, sunk to a low of $7.45 in January and leveled at the $10 mark since.

courtesy of Erin Warner

News Added: 14 May, 2007

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