For Immediate Release
March 18, 2011
Defendant Convicted of
Minting His Own Currency
STATESVILLE, NC—Bernard von NotHaus, 67, was
convicted today by a federal jury of making, possessing, and selling
his own coins, announced Anne M. Tompkins, U.S. Attorney for the
Western District of North Carolina. Following an eight-day trial and
less than two hours of deliberation, von NotHaus, the founder and
monetary architect of a currency known as the Liberty Dollar, was
found guilty by a jury in Statesville, North Carolina, of making
coins resembling and similar to United States coins; of issuing,
passing, selling, and possessing Liberty Dollar coins; of issuing
and passing Liberty Dollar coins intended for use as current money;
and of conspiracy against the United States. The guilty verdict
concluded an investigation which began in 2005 and involved the
minting of Liberty Dollar coins with a current value of
approximately $7 million. Joining the U.S. Attorney Anne M. Tompkins
in making today’s announcement are Edward J. Montooth, Acting
Special Agent in Charge of the FBI, Charlotte Division; Russell F.
Nelson, Special Agent in Charge of the United States Secret Service,
Charlotte Division; and Sheriff Van Duncan of the Buncombe County
Sheriff’s Office.
According to the evidence introduced during the trial, von NotHaus
was the founder of an organization called the National Organization
for the Repeal of the Federal Reserve and Internal Revenue Code,
commonly known as NORFED and also known as Liberty Services. Von
NotHaus was the president of NORFED and the executive director of
Liberty Dollar Services, Inc. until on or about September 30, 2008.
Von NotHaus designed the Liberty Dollar currency in 1998 and the
Liberty coins were marked with the dollar sign ($); the words
dollar, USA, Liberty, Trust in God (instead of In God We Trust); and
other features associated with legitimate U.S. coinage. Since 1998,
NORFED has been issuing, disseminating, and placing into circulation
the Liberty Dollar in all its forms throughout the United States and
Puerto Rico. NORFED’s purpose was to mix Liberty Dollars into the
current money of the United States. NORFED intended for the Liberty
Dollar to be used as current money in order to limit reliance on,
and to compete with, United States currency.
In coordination with the Department of Justice, on September 14,
2006, the United States Mint issued a press release and warning to
American citizens that the Liberty Dollar was “not legal tender.”
The U.S. Mint press release and public service announcement stated
that the Department of Justice had determined that the use of
Liberty Dollars as circulating money was a federal crime.
Article I, section 8, clause 5 of the United States Constitution
delegates to Congress the power to coin money and to regulate the
value thereof. This power was delegated to Congress in order to
establish and preserve a uniform standard of value and to insure a
singular monetary system for all purchases and debts in the United
States, public and private. Along with the power to coin money,
Congress has the concurrent power to restrain the circulation of
money which is not issued under its own authority in order to
protect and preserve the constitutional currency for the benefit of
all citizens of the nation. It is a violation of federal law for
individuals, such as von NotHaus, or organizations, such as NORFED,
to create private coin or currency systems to compete with the
official coinage and currency of the United States.
Von NotHaus, who remains free on bond, faces a sentence of up to 15
years’ imprisonment on count two of the indictment and a fine of not
more than $250,000. Von NotHaus faces a prison sentence of five
years and fines of $250,000 on both counts one and three. In
addition, the United States is seeking the forfeiture of
approximately 16,000 pounds of Liberty Dollar coins and precious
metals, currently valued at nearly $7 million. The forfeiture trial,
which began today before United States District Court Judge Richard
Voorhees, will resume on April 4, 2011 in the federal courthouse in
Statesville. Judge Voorhees has not yet set a date for the
sentencing of von NotHaus.
“Attempts to undermine the legitimate currency of this country are
simply a unique form of domestic terrorism,” U.S. Attorney Tompkins
said in announcing the verdict. “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,” she added. “We are determined
to meet these threats through infiltration, disruption, and
dismantling of organizations which seek to challenge the legitimacy
of our democratic form of government.”
The case was investigated by the FBI, Buncombe County Sheriff’s
Department, and the U.S. Secret Service, in cooperation with and
invaluable assistance of the United States Mint. The case was
prosecuted by Assistant United States Attorneys Jill Westmoreland
Rose and Craig D. Randall, and the forfeiture trial is being
prosecuted by Assistant United States Attorneys Tom Ascik and Ben
Bain Creed.
United States
Attorney's Office
Western District of North Carolina
Contact: (704) 344-6222
http://charlotte.fbi.gov/dojpressrel/pressrel11/ce031811.htm
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