Government Monopoly Imposed at Gunpoint: Liberty Dollar Raided by the Feds

UPDATE: While there is some speculation that the e-mail in question may have been bogus, I’ve tried to call the company and received no response from a live person. Additionally, the local media has published an article about the raid, which includes the following confirmation:

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.

UPDATE II: Brian Doherty has confirmed a bit more over at Hit and Run:

Thanks to reasoner Jeff Taylor, I’ve seen a copy of a Nov. 9 seizure warrant on an Asheville, NC, address, not available online, claiming that Liberty Dollars at that address are forefeitable for being connected with money laundering and mail fraud. I have not read the entire 38 page warrant, nor am I 100 percent certain it is connected with the actions in Evansville today, but given that the Indianapolis FBI referred me to the U.S. Attorney in North Carolina, probably so, and that multiple raids were planned or executed re: the liberty dollar.

The warrant explains that the FBI from Aug 2005 to July 2007 were “conducting undercover operations to determine the legality of the American Liberty Dollar currency.” The warrant also notes that von NotHaus sold an undercover agent a Liberty Dollar T-shirt, and that the agent observed von NotHaus driving a 1999 Cadillac Deville. It doesn’t take a trained federal agent to connect the dots here, I suppose. In other words: What-th-what-th-What?

It’s just hitting the blogs that Liberty Dollar was just raided and all of their assets were  seized. From the e-mail Bernard von NotHaus distributed this morning:

I sincerely regret to inform you that about 8:00 this morning a dozen FBI and Secret Service agents raided the Liberty Dollar office in Evansville.

For approximately six hours they took all the gold, all the silver, all the platinum and almost two tons of Ron Paul Dollars that where just delivered last Friday. They also took all the files, all the computers and froze our bank accounts.

We have no money. We have no products. We have no records to even know what was ordered or what you are owed. 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.

But to make matters worse, all the gold and silver that backs up the paper certificates and digital currency held in the vault at Sunshine Mint has also been confiscated. Even the dies for mint the Gold and Silver Libertys have been taken.

Mark Nestman wrote:

Liberty Dollars are produced by the National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code (NORFED). Led by economist Bernard Nothaus, NORFED has long been a thorn in the side of the federal government.

And now, the feds are getting their revenge.

There is little question that the production, sale, and possession of Liberty Dollars are legal. Indeed, in 1999, the Treasury Department’s legal team reviewed the Liberty Dollar. Claudia Dickens, spokeswoman for the U.S. Treasury Department’s Bureau of Engraving and Printing, said:

“There’s nothing illegal about this. As long as it doesn’t say legal tender there’s nothing wrong with it.”

That, apparently, is the rub. “Legal tender,” in essence, means that a particular form of money must be accepted for all debts.

NORFED has never claimed that Liberty Dollars are legal tender. However, in recent years, the company built up a network of “Liberty merchants” who accept Liberty Dollars in exchange for goods and services. And since the U.S. Department of Justice says that federal legal tender laws prohibit the use of privately circulated gold or silver coins intended for use as money, that may have been what led to today’s raid on NORFED.

Since the dollar can’t compete with other currencies and commodities, the government is apparently shutting down it’s competition. Will the government next go after UPS for competing with the Postal Service? One wonders if this action was aimed at the Ron Paul campaign, too.

Over at Ron Paul HQ, I’m sure communication director Jesse Benton’s phone is ringing off the hook. It will truly prove interesting to see what Dr. Paul has to say about the issue.

10 Replies to “Government Monopoly Imposed at Gunpoint: Liberty Dollar Raided by the Feds

  1. I can only say that this is evidence that we have made an impact and that the fight is on. Lets us remain peaceful and ever working toward the freedom of our fellow Americans – even those who wish to do us harm

    This is extremely disturbing news and I am very sorry this has happened.

    Our prayers are with you.

  2. This is all from a mass email purported to be from someone at Liberty Dollar. A comparison of the email headers of this email and a previous email from Liberty Dollar shows a number of differences. It may well be true, but how about we wait for something more than a mass email before getting too worked up about it.

  3. Robert,

    I’m not on their e-mail list. Do you have a copy of the original message (and others from Liberty Dollar) that you can forward to me?

  4. As horrific as this is, I am at least thankful that they didn’t also come in with guns blazing. Even if you do eventually get justice, I’m sure that this will have an enormously bad impact on your business.

    This is quite a shock, but considering who is running our Federal Government today, I am sad to say I’m not surprised. Peace be with you.

    We need Ron Paul now more than ever.

  5. has a thread running the first post on this page has a copy of the header from a previous email, and one from this current email.

    I am not on the mailing list and so did not receive a copy myself either, sorry if my previous post insinuated that. I’m not saying the headers there legit either, I don’t know that person, and even if they are 100% accurate it doesn’t “prove” that the email is fake. The “evidence” of the headers (if true) at the very least indicates the email wasn’t sent with the same process as previous emails.

    Primarily I’m pointing out that so far the only “evidence” is an email. I don’t believe those emails that tell me I can take pills to enlarge parts of my anatomy either.

  6. This was clearly a preemptive strike on America’s liberty; we must remain calm and hire a good Libertarian attorney that will no doubt take this case all the way up the steps of the Supreme Court.

  7. Well, this might be a response to a number of things.

    This may be the first step back on the well-traveled path of gold confiscation. Start with more well-known companies holding gold and label them as “illegal, subversive, funding terrorists and Ron Paul, hurting the troops, tax evasion, etc.” and let the mass-produced people hear from their mass media of a relationship between “gold” and “bad.” Most people these days don’t hold gold anyway, they invest in “safe” mortgage securities and government bonds earning 2% per year designed to keep pace with inflation. So it will take very little for the message to spread that holding precious metals is suspicious.

    It also sends a message to those who are learning to be paid in gold and silver instead of Federal Reserve Notes so that they keep their purchasing power. Don’t get any ideas of taking advantage of the parallel monetary system created by Congress in 1985 after being proposed by Congressman Paul. We can’t have people unplugging from the system that continually steals from them and manipulates their purchasing power at the whims of the upper class.

    They also need more gold to sell to suppress the price of gold and keep intact the illusion that paper money is worth holding. No better way to get more precious metals than by confiscating it for the “protection of Americans.”

  8. I don’t know much about e-mail, but wouldn’t the different headers actually be consistent with using a different computer? After all, the e-mail claimed that the original computers were taken. Of course, if all the computers with customer information were seized as they say, then how did they get the e-mail list back in the first place? Interesting things to ponder I suppose.

    I do agree with waiting until we hear something more substantial, though…not everything in e-mail form is always true…

  9. “We have no records to even know what was ordered or what you are owed.”

    No off-site, encrypted backup??!!! This does not inspire confidence in whoever was running this show. Having your heart in the right place is no substitute for basic good business practices.

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