FBI / Secret Service raid
The Liberty Dollar offices were raided by agents of the Federal Bureau of Investigation (FBI) and the United States Secret Service on November 14, 2007. Bernard von NotHaus, the owner of Liberty Services, sent an email to customers and supporters saying that the FBI took all the gold, silver, and platinum, and almost two tons of
Ron Paul Dollars. The FBI also seized computers and files and froze the Liberty Dollar bank accounts.
[18] von NotHaus's email linked to a signup page for a class action lawsuit so that the victims might recover their assets. At the same time, all forms on his website relating to purchases of Liberty Dollars became nonfunctional.
Copies of the email and the warrant documents have been posted to the website.
[19] The seizure warrant was issued for
money laundering,
mail fraud,
wire fraud,
counterfeiting, and
conspiracy.
[20][21]
The local Evansville
Courier & Press reported the email, stating that "FBI Agent Wendy Osborne, a spokeswoman for the FBI's Indianapolis office, directed all questions on the raid to the Western District of North Carolina U.S. Attorney's Office. A spokeswoman there said she had no information on the investigation. Bernard von NotHaus, the group's monetary architect and the author of the email, did not immediately respond to a message seeking comment."
[22]
The Associated Press quoted von NotHaus on November 16, 2007, as saying that the federal government was "running scared right now and they had to do something .... I'm volunteering to meet the agents and get arrested so we can thrash this out in court."
[23]
Indictment
A federal grand jury brought an indictment against von NotHaus and three others in May 2009 in United States District Court in Statesville, North Carolina,
[24] and von NotHaus was arrested on June 6, 2009. Bernard von NotHaus is charged with one count of conspiracy to possess and sell coins in resemblance and similitude of coins of a denomination higher than five cents, and silver coins in resemblance of genuine coins of the United States in denominations of five dollars and greater, in violation of
18 U.S.C. § 485,
18 U.S.C. § 486, and
18 U.S.C. § 371; one count of mail fraud in violation of
18 U.S.C. § 1341 and
18 U.S.C. § 2; one count of selling, and possessing with intent to defraud, coins of resemblance and similitude of United States coins in denominations of five cents and higher, in violation of
18 U.S.C. § 485 and
18 U.S.C. § 2; and one count of uttering, passing, and attempting to utter and pass, silver coins in resemblance of genuine U.S. coins in denominations of five dollars or greater, in violation of
18 U.S.C. § 486 and
18 U.S.C. § 2.
[24]
On July 28, 2009, von NotHaus entered a plea of not guilty.
[25]
Conviction
On March 18, 2011, von NotHaus was convicted of "making, possessing and selling his own coins", after a jury in
Statesville, North Carolina deliberated for less than two hours.
[26] The jury found him guilty of one count under
18 U.S.C. § 485 and
18 U.S.C. § 2, one count of violating
18 U.S.C. § 486 and
18 U.S.C. § 2, and one count of conspiracy, under
18 U.S.C. § 371, to violate sections 485 and 486.
[27] He faces up to 15 years in prison, a $250,000 fine, and may be forced to give $7 million worth of minted coins and precious metals to the government, weighing 16,000 pounds.
[26] Attorney for the
Western District of North Carolina, Anne M. Tompkins, described the Liberty Dollar as "a unique form of domestic terrorism" that is trying "to undermine the legitimate currency of this country".
[28] The Justice Department press release quotes her as saying: "While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country."
[28]
According to the Associated Press, "Federal prosecutors successfully argued that von NotHaus was, in fact, trying to pass off the silver coins as U.S. currency. Coming in denominations of 5, 10, 20, and 50, the Liberty Dollars also featured a dollar sign, the word "dollar" and the motto "Trust in God," similar to the "In God We Trust" that appears on U.S. coins".
[29] The conviction was appealed.
https://en.wikipedia.org/wiki/Libert...r#Legal_issues
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