Bernard von NotHaus is the creator of the Liberty Dollar and co-founder of the Royal Hawaiian Mint Company in Hawaii. [1] He is also the founder of the Cannabis Spiritual Center, an educational institution that supports the use of marijuana in spiritual settings. [2] Von NotHaus was convicted of counterfeiting in 2011, and was also accused of domestic terrorism. [3] He was sentenced to three years of probation, and was released from probation after serving one year.
According to the evidence introduced during his 2011 federal criminal trial in connection with his involvement with the Liberty Dollar, von NotHaus was the founder of an organization named the National Organization for the Repeal of the Federal Reserve and Internal Revenue Code, commonly known as NORFED and known as Liberty Services. The FBI claimed that NORFED's purpose was to mix Liberty Dollars into the current money of the United States and that 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.[ citation needed ]
The silver round, the most popular form of Liberty Dollars, was made of one ounce of .999 fine silver, and the Liberty Dollar certificates were made in different colors and sizes.
In September 2006, U.S. Mint informed Liberty Dollar users that federal prosecutors had determined that the circulation of the medallions as "legal tender" is a federal crime. It was claimed that people were told or led to believe that they were US currency, but proponents of the Liberty Dollar were cautioned against making such a claim. Rather, they were told that it was an "item of barter," and could therefore lawfully be exchanged for other items in trade.
In 2007, about a dozen federal government agents seized nearly two tons of coins that featured the image of Ron Paul, a libertarian Texas congressman. They also took about 500 pounds of silver and 40 to 50 ounces of gold. [4] Von Nothaus and others sued the government on behalf of the many people who were the lawful owners of the silver and gold. Despite the 2011 conviction of Bernard von NotHaus on charges related to the manufacture and distribution of Liberty Dollars, U.S. District Court Judge Richard L. Voorhees ruled in late 2014 that seized property not deemed as contraband should be returned pursuant to ownership claims. [5]
In connection with the Liberty Dollar business, a federal grand jury brought an indictment against von NotHaus and three others in May 2009, accusing him of counterfeiting U.S. currency. [6] Von NotHaus was arrested on June 6, 2009, and entered a plea of not guilty on July 28. [7]
In at least one interview, von NotHaus had been quoted as saying: "We never refer to the Silver Liberty as a coin, nor as legal tender or current money...The word ‘coin’ is a government-controlled term. This is currency that is free from government control." [8]
On March 18, 2011, after a 90-minute jury deliberation, von NotHaus was found guilty on various counts, including the making of "counterfeit coins" (resembling legal tender coins). [4] [9] [10] U.S. Attorney for the Western District of North Carolina Anne M. Tompkins described Bernard von NotHaus and the Liberty dollar as "a unique form of domestic terrorism" that is trying "to undermine the legitimate currency of this country." [11] The Justice Department press release quotes her as saying: “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". [12]
According to the Associated Press:
He appealed his conviction but his appeal was denied on 10 November 2014.[ citation needed ]
On November 11, 2014, Judge Voorhees denied von NotHaus' motion for acquittal. On December 2, 2014, he was sentenced to six months house arrest, with three years probation.[ citation needed ]
His probation officer suggested he file for early release from probation after one year, and recommended the early termination to the court. Termination of probation was formally granted.[ citation needed ]
Seigniorage, also spelled seignorage or seigneurage, is the difference between the value of money and the cost to produce and distribute it. The term can be applied in two ways:
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Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in payment of a debt extinguishes the debt. There is no obligation on the creditor to accept the tendered payment, but the act of tendering the payment in legal tender discharges the debt.
A nickel is a five-cent coin struck by the United States Mint. Composed of cupronickel, the piece has been issued since 1866. Its diameter is 0.835 inches (21.21 mm) and its thickness is 0.077 inches (1.95 mm).
The dollar coin is a United States coin with a face value of one United States dollar. Dollar coins have been minted in the United States in gold, silver, and base metal versions. Dollar coins were first minted in the United States in 1794.
The Coinage Act of 1792, passed by the United States Congress on April 2, 1792, created the United States dollar as the country's standard unit of money, established the United States Mint, and regulated the coinage of the United States. This act established the silver dollar as the unit of money in the United States, declared it to be lawful tender, and created a decimal system for U.S. currency.
The American Liberty Dollar (ALD) was a private currency produced in the United States.
The Freedom Tower Silver Dollar is a "one dollar" coin minted under license of the Commonwealth of the Northern Mariana Islands (CNMI) in 2004, although the CNMI does not have legal authority to issue or authorize currency. Despite vague statements in advertisements, it is not issued by the United States Mint and is not considered legal tender, nor is it considered non-circulating legal tender. The CNMI receives royalty fees from proceeds of the sale of the coin. The coin is actually minted by SoftSky, a Wyoming commemorative coin maker.
National Collector's Mint, Inc. is a Westchester County New York based company that sells privately produced coins, tokens, commemoratives, and collectibles, as well as anti-aging skin products through the BioLogic brand. The company does not produce coins that are legal tender in the United States and they are not affiliated, endorsed, or licensed by the U.S. government or the United States Mint. However, the company does also act as a retailer, reselling government proof coins and other legal tender. The mint also creates non-currency coins for large corporations. After National Collector's Mint was repeatedly cited by state and Federal authorities for fraudulent profiteering from the 9/11 attacks, The Huffington Post described the company as a "bogus 9/11 coin seller."
The American Silver Eagle is the official silver bullion coin of the United States.
The history of the United States dollar began with moves by the Founding Fathers of the United States of America to establish a national currency based on the Spanish silver dollar, which had been in use in the North American colonies of the Kingdom of Great Britain for over 100 years prior to the United States Declaration of Independence. The new Congress's Coinage Act of 1792 established the United States dollar as the country's standard unit of money, creating the United States Mint tasked with producing and circulating coinage. Initially defined under a bimetallic standard in terms of a fixed quantity of silver or gold, it formally adopted the gold standard in 1900, and finally eliminated all links to gold in 1971.
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A private currency is a currency issued by a private entity, be it an individual, a commercial business, a nonprofit or decentralized common enterprise. It is often contrasted with fiat currency issued by governments or central banks. In many countries, the issuance of private paper currencies and/or the minting of metal coins intended to be used as currency may even be a criminal act such as in the United States. Digital cryptocurrency is sometimes treated as an asset instead of a currency. Cryptocurrency is illegal as a currency in a few countries.
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The gold dollar or gold one-dollar piece is a gold coin that was struck as a regular issue by the United States Bureau of the Mint from 1849 to 1889. The coin had three types over its lifetime, all designed by Mint Chief Engraver James B. Longacre. The Type 1 issue has the smallest diameter of any United States coin minted to date.
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.
The United States dollar is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it into 100 cents, and authorized the minting of coins denominated in dollars and cents. U.S. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color.
Anne Magee Tompkins is an American lawyer who served as the United States Attorney for the United States District Court for the Western District of North Carolina.
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