Liberty Dollar office raided (mod note: paper cites email as source)

Originally published 01:42 p.m., November 15, 2007 Updated 01:42 p.m., November 15, 2007

The future of an Evansville-based company that produces a "private voluntary barter currency" known as the Liberty Dollar is in question after federal agents raided the facility this week, according to an e-mail sent by its founder.

Federal agents reportedly raided the group's headquarters, located in a strip mall at 225 N. Stockwell Road, early Wednesday morning.

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 e-mail, did not immediately respond to a message seeking comment.

Von NotHaus developed the Liberty Dollar in 1998 as an "inflation-proof" alternative currency to the U.S. Dollar, which he has claimed has devalued since the Federal Reserve was established in 1913. The silver medallions are produced by a private mint in Idaho on behalf of Evansville-based Liberty Services, which also issues paper notes which the group says are backed by silver reserves.

Liberty Dollar employees were at the office this morning cleaning up after the raid. They referred all questions to von NotHaus.

According to the e-mail, about a dozen agents arrived Wednesday morning and seized gold, silver, platinum and nearly two tons of recently delivered Ron Paul Dollars. They also took all the files, all the computers and froze the group's bank accounts, the e-mail said.

"We have no money. We have no products. We have no records to even know what was ordered or what you are owed," von NotHaus wrote in the e-mail, which was sent to Liberty Dollar customers. "We have nothing but the will to push forward and overcome this massive assault on our liberty and our right to have real money as defined by the US Constitution. We should not to be defrauded by the fake government money."

The e-mail said the gold and silver that backs up the paper and digital currency was confiscated, as were the dies used to mint the Liberty Dollars themselves. As a result, it warns that recent orders placed for Liberty Dollars may not be filled and it encourages supporters to band together for a class action lawsuit.

"You did nothing wrong," von NotHaus wrote. "You are legally entitled to your property. Let us use this terrible act to band together and further our goal to return America to a value based currency."

Again, the ONLY source is the email which has not been confirmed with with the supposed author “Benard Von NotHaus” or the FBI.

Curious thing. When I wait thru all the various pagens of praise to Von NotHaus I find this item.

http://adl.org/mwd/profit.asp

Rogue Number Three: NORFED (http://www.norfed.org).

October 29, 1998

Militia Watchdog Official Alert

Investigators, Journalists, Others Urged to Monitor NORFED

The Militia Watchdog has learned of a new organization which, as described, carries considerable potential for fraud or misuse. The Militia Watchdog urges all law enforcement officers, journalists, activists and others to scrutinize this organization and its activities carefully.

Background: One of the major “hot button” issues for adherents to the so-called “patriot” movement is the “money” issue. A summary of this issue would be that the creation of the Federal Reserve and the change from a gold standard to paper money was not only illegal and unconstitutional, but part of a large plot to impoverish the country and enrich the “international bankers” (usually alleged to be Jews). As a result, paper money (federal reserve notes or “FRNs” as the “patriot” movement abbreviates the term) is looked upon with suspicion and disgust. This has led to numerous attempts to invent alternative currencies, often by people who are themselves all too willing to accept federal reserve notes in exchange for dubious alternatives. In the early 1980s tax protester Tupper Saussy created a stir with his “Public Office Money Certificates,” which were a sort of bogus promissory note. In the late 1980s, various conmen created illegitimate “sight drafts” that were alleged to be as valid as federal reserve notes. And in the mid-1990s a host of groups including USA First, Family Farm Preservation, the Republic of Texas and, most famously, the Montana Freemen, created billions of dollars worth of bogus money orders and checks. This last resurgence resulted in scores of successful prosecutions around the country. However, these convictions only stopped certain perpetrators; they did nothing to end the sentiment. It would only be a matter of time before the next alternative currency scheme was hatched.

NORFED: NORFED is an abbreviation for a group calling itself the National Organization for the Repeal of the Federal Reserve Act. In its own words, it is a “membership based nonprofit organization dedicated to using all its revenue to restore a honest monetary system for all Americans, as required by our Constitution. It is governed by a Board of Directors, and a Members Advisory Council.” No Board or Council members could be found listed on its website.

Contact information for its leaders is as follows:

Jim Thomas/Tri-State Redemption Center/812-473-5250

Bernard von NotHaus/NORFED/888-421-6181

FAX 812-473-5199

Postal address: 4900 Tippecanoe, Suite 6 / Evansville, IN 47715

Webpage: www.norfed.org.

NORFED has created something it calls “American Liberty Currency.” This consists of “silver certificates” in $1, $5, and $10 amounts. The $10 certificate is allegedly backed by one ounce of .999 pure Troy silver, and the other certificates backed proportionately. However, the silver itself is kept in a “warehouse” run by “Sunshine Minting.”

The current price of silver is only about $5.10 per troy ounce.

NORFED is also engaged in the creation of “a National Network of Redemption Centers.” The function of these centers is “to exchange Federal Reserve Notes for American Liberty Currency (warehouse receipts).” In other words, to take people’s dollars and give them this new “currency.” Redemption Centers can buy certificates from NORFED at a 10% discount, then provide them to others. Ostensibly, these centers will also exchange silver certificates for silver coins. The centers are also urged to recruit “members” and will get a portion of the membership fee.

What are the dangers of NORFED? The possibilities are endless. The first danger is that one will lose one’s money by basically exchanging it for half its value in silver (or, more accurately, silver certificates which are supposed to represent silver). The second danger is that there might be no actual silver at all, despite the “independent audits” that NORFED assures people will be conducted. In this case, people will be exchanging good money for worthless money. A third danger is that NORFED will be used as a warehouse bank, which is a way to hide money or financial transactions. There are many other potential problems as well, all of which cry out for careful scrutiny of NORFED and its operations.

One warning sign consists of some of the people and organizations who have so far signed up to be “Redemption Centers.” These include but are not limited to Charles Eidson, a Florida-based white supremacist who has been prominent in placing bogus liens and marketing abusive trusts; the Save-A-Patriot Fellowship, one of the largest tax protest groups in the country; and the Cascadian Resource Center, involved in various aspects of “paper terrorism,” including the marketing of abusive trusts. Even though NORFED has supposedly been in operation only since October 1, 1998, it has already amassed a large number of “Redemption Centers.” This could grow very quickly.

NORFED leader Bernard von NotHouse is “printmaster” for Royal Hawaiian Mint, a Honolulu-based numismatic dealer. Leader Jim Thomas is the founder of “Media Bypass” magazine, a magazine which caters to right-wing extremists. Coincidentally, the November issue of “Media Bypass” will feature an article on NORFED. “Sunshine Mint” is located in Hayden Lake, Idaho. The address associated with the domain name (from Internic) is a mailbox in a university bookstore in California. The mailing address for NORFED is the same as for Media Bypass.

The Militia Watchdog is not alleging that NORFED is currently engaging in any illegal activity. However, because of the clear potential for abuse now or in the future, it urges people to monitor NORFED and its activities very closely.

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