There is much in this 38 page affidavit that I don't understand. There were numerous FBI undercover agents in Liberty's employ. Those unidentified persons gave vague information that the affiant concluded meant that Liberty did not have bullion on hand to back 100% of the certificates issued. I could not follow how he can to this conclusion.
But my question is: exactly what did they promise? That the certificates represented that there was X amount of gold or silver in the warehouse? Or did it just say that it was redeemable in gold which does not necessarily mean that there is always 100% on hand at any given time, which is the same principle every bank follows.
The affidavit also cites a publication to customers advising that there has been no audits for several months because the audit firm quit without notice although under contract (wonder if the FBI put pressure on them to quit). By the time they got the records from the old firm and retained a new firm, several months had elapsed. The new firm had to go back over several months to create record and then proceed forward. When all the work was completed, everything was fine, according to the new auditors.
Read the affidavit. They have been gunning for these people for a long time.
But my question is: exactly what did they promise? That the certificates represented that there was X amount of gold or silver in the warehouse?Yes. The certificates were negotiable warehouse receipts, provided for under Section 7 of the Uniform Commercial Code, attesting that the specified weight of gold or silver was stored at the Sunshine Mint in Coeur d'Aleine, Idaho and subject to a storage fee. If only I can find the certificates I have around somewhere that I bought back in 2000, I could put up the exact wording.
Read the affidavit. They have been gunning for these people for a long time.
Apparently, the same judge that was overseeing the civil trial in the lawsuit that von Nothaus filed against the US Mint over what he asserts were their misleading statements, is the one that signed the search warrant.
Makes you feel all warm and fuzzy about our "justice" system, doesn't it?