FBI: Anti-Government Group convicted of making illegal US tender

Private Tender Mints Its Own Coins

04/05/11

Money doesn’t grow on trees. It also can’t be printed or minted by private citizens—as four co-conspirators in North Carolina and Indiana recently learned the hard way.

Last month, the founder and “monetary architect” of an illegal currency known as the Liberty Dollar was convicted in North Carolina on federal charges of making illegal coins and selling them—at a profit—to compete with legal U.S. currency. 

Bernard von NotHaus, of Evansville, Indiana, was found guilty of making coins resembling U.S. coins; issuing, passing, selling, and possessing Liberty Dollar coins; issuing and passing Liberty Dollar coins intended for use as current money; and conspiring against the United States. Three others indicted in the case are awaiting their own trials.

“People understand that there is only one legal currency in the United States,” said Owen Harris, then-special agent in charge of our office in Charlotte. “When groups try to replace it with coins and bills that don’t hold the same value, it affects the economy. And consumers were using their hard-earned money to buy goods and services, then getting fake goods in return.”

It all began in 2004, when our Charlotte Division learned that a customer at a North Carolina financial institution had tried to use silver coins that were not legal U.S. currency. Our investigation revealed that the coins came from the National Organization for the Repeal of the Federal Reserve and Internal Revenue Codes (or NORFED), headquartered in Evansville, whose mission was to return the country’s monetary system to gold and silver. 

The president of the organization was Bernard von NotHaus, who marketed his currency as inflation-proof, claimed it was backed by silver and gold, and said it could be used to compete with—and limit reliance on—U.S. currency.

Our investigation, which included an undercover scenario, revealed that NORFED contracted for the minting of about $7 million worth of Liberty Dollars in Idaho. 

The organization also took orders and payments from customers for Liberty Dollars and organized “Liberty Dollar University” sessions to help educate people interested in selling, buying, or using the illegal currency. There was even a Liberty Dollar website.

NORFED used several groups of people to get its illegal coins into circulation:

During the course of the investigation, the U.S. Mint issued a press release warning that the Liberty Dollar was not legal tender and that the Department of Justice had determined that the use of these coins as circulating money was a federal crime. 

This press release was sent to known NORFED regional currency officers. Despite the warning, though, NORFED and its officers, members, and associates continued to break the law and circulate the illegal tender.

As with many of our other cases, we didn’t work this investigation alone. Providing tremendous assistance was the Buncombe County Sheriff’s Office, U.S. Secret Service, U.S. Treasury’s Office of Inspector General for Tax Administration, North Carolina Joint Terrorism Task Force, U.S. Postal Inspection Service, and U.S. Mint.

The FBI is trying to confiscate $7 million in Liberty coins and metals from a warehouse.  


The Southern Poverty Law Center (SPLC) has been tracking Bernard von NotHaus for years. An SPLC spokesperson, Mark Potok said:

He's playing on a core idea of the radical right, that evil bankers in the Federal Reserve are ripping you off by controlling the money supply. He very much exists in the world of the anti-government "patriot" movement, whatever he may say. That's who his customers are.

sources: FBI press release and http://www.comcast.net/articles/news-national/20110404/feds.seek.liberty.dollars/

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MSNBC president Phil Griffin calls Birthers racist

UPDATE 2:30 PM, July 25 MSNBC president Phil Griffin called the claim that President Obama is a foreigner, which has received significant media coverage over the last few days, "racist."

From the NY Times: It's racist, said Phil Griffin, the president of MSNBC.  Just call it for what it is.

Mr. Griffin said the cable news coverage was set off by two back-to-back events: the introduction of a bill that would require presidential candidates to provide a copy of their original birth certificate (it has nine co-sponsors in the House and one in the Senate) and the video of a town hall held by a Republican Congressman that turned into a hearing on Mr. Obama's citizenship.

Rightardia believes the Birther movement is made up of many Tea Baggers who are racist. The Birthers are fundamentally saying they don't recognize Obama as the president of the US.

It is a mean spirited attempt to undermine President Obama's legitimacy. Obama won the election by nearly 8 million votes and had a 2:1 advantage in the Electoral College. His US citizenship has been confirmed by the state of Hawaii, FactCheck.org, Snopes.com and CNN.

http://www.huffingtonpost.com/2009/07/24/major-civil-rights-group_n_244532.html


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Southern Poverty Law Center Urges Congress to Investigate Extremism in the Military

In a letter to committee chairmen with oversight over homeland security and the armed services, the Southern Poverty Law Center (SPLC) said it recently found dozens of personal profiles on a neo-Nazi web site where individuals listed "military" as their occupation — the latest evidence of extremist infiltration gathered by the SPLC. It also cites FBI and Department of Homeland Security reports supporting the SPLC's concerns.

"Evidence continues to mount that current Pentagon policies are inadequate to prevent racial extremists from joining and serving in the armed forces," SPLC founder Morris Dees wrote. He added, "Because the presence of extremists in the armed forces is a serious threat to the safety of the American public, we believe Congressional action is warranted."

The letter was sent to the chairmen of the House and Senate committees on Homeland Security and Armed Services. The SPLC has raised its concerns with Pentagon officials since publishing a report in 2006, but no apparent action has been taken.

In recent months, SPLC investigators found approximately 40 personal profiles that listed "military" as an occupation on the Internet forum New Saxon, which is operated by the neo-Nazi National Socialist Movement. One individual, who claims to be serving in Afghanistan, lists as his favorite book The Turner Diaries, which was written by neo-Nazi leader William Pierce.

The book served as a blueprint for the Oklahoma City bombing by Gulf War veteran Timothy McVeigh. Another individual said he was about to be deployed overseas and was looking forward to "killing all the bloody sand niggers." Still another spoke of his hatred for undocumented immigrants.

The SPLC has been involved with this issue for more than two decades. In 1986, the SPLC presented evidence to Defense Secretary Caspar Weinberger that Marines were participating in Ku Klux Klan paramilitary activities and urged him to prohibit all military personnel from being members of, or participating in, the activities of white supremacist groups. Although Weinberger issued a directive addressing extremist activity, it ultimately proved inadequate.

The SPLC again brought the problem to the attention of Pentagon officials in 1996, after three neo-Nazi soldiers stationed at Fort Bragg murdered a black couple in North Carolina in a ritualistic, racially motivated slaying. Pentagon regulations were strengthened following an investigation by an Army task force and hearings by the House Armed Services Committee.

But a decade later, military recruiters, under intense pressure to meet quotas for the wars in Iraq and Afghanistan, appear to have lowered recruiting standards, according to the SPLC's 2006 report. The report revealed that large numbers of neo-Nazi skinheads and other white supremacists were joining the armed forces to acquire combat training and access to weapons and explosives.

In 2008, the FBI released an unclassified report that supported the SPLC's findings. This past April, the Department of Homeland Security issued a report stating that right-wing extremists currently pose the most significant threat of domestic terrorism and expressing the concern that they may attempt to exploit the combat training and experience of returning veterans.

The SPLC letter notes that since 1994 the military has discharged more than 12,500 servicemembers simply because of their homosexuality. "It seems quite anomalous that the Pentagon would consider homosexuals more of a threat to the good order of the military than neo-Nazis and other white supremacists who reject our Constitution's most cherished principles," said Mark Potok, director of the SPLC's Intelligence Project, which monitors extremist activity.

The letter also says that "the overwhelming majority of U.S. servicemembers reject extremism and are dedicated to serving and protecting the highest ideals of our country" and notes that there will never be a fail-safe system to weed out all extremists. "But we owe it to our courageous men and women in uniform, and the American public, to remain vigilant to ensure that the ranks are as free of extremists as possible," Dees wrote.

source: http://www.splcenter.org/news/item.jsp?aid=384

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	Southern Poverty Law Center 400 Washington Ave. Montgomery, AL 36104