Liberty Dollar founder convicted of counterfeiting; U.S. attorney calls him a terrorist

Section:

Liberty Dollar Founder Convicted on Federal Charges

By David Forbes
Mountain Xpress, Asheville, North Carolina
Friday, March 18, 2011

http://www.mountainx.com/blogwire/2011/liberty_dollar_founder_convicted_...

Liberty Dollar founder Bernard von NotHaus was convicted today on federal charges in Statesville. The case has local implications, because Asheville Liberty Dollar head Kevin Innes also faces trial. Innes has asserted that he is innocent of any wrongdoing, and sought local support.

The full announcement from the U.S. attorney's office:

"Statesville, North Carolina -- 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 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 that 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 U.S. Secret Service, Charlotte Division; and Sheriff Van Duncan of the Buncombe County Sheriff's Office.

... Dispatch continues below ...



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Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property

Company Press Release, October 27, 2010

VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include:

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"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 '$,' 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 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 2 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 1 and 3. 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 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 U.S. Attorneys Tom Ascik and Ben Bain Creed."

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Man Convicted of Illegally Minting U.S. Coins

From WBTV-TV3, Charlotte, North Carolina
Friday, March 18, 2011

http://www.wbtv.com/Global/story.asp?S=14279992

STATESVILLE, North Carolina -- A man was found guilty on Friday of minting his own currency and he could be sentenced up to 15 years in prison.

According to the U.S. attorney's office, Bernard von NotHaus, 67, was convicted in Statesville of making, possessing, and selling his own coins.

The trial lasted eight days and it took the jury less than two hours to deliberate.

NotHaus is the founder and monetary architect of a currency known as "Liberty Dollar."

The U.S. attorney's office says the coins were made to resemble United States coins and that the Liberty Dollar coins were intended for use as current money.

The investigation began in 2005 and involved the minting of Liberty Dollar coins with a current value of approximately $7 million.

Officials say NotHaus was the founder of an organization called the National Organization for the Repeal of the Federal Reserve and Internal Revenue Code, also known as NORFED, and Liberty Services.

NotHaus was the president of the organization until about September of 2008.

NORFED distributed the Liberty Dollar throughout the United States and Puerto Rico. The U.S. attorney's office said, "NORFED's purpose was to mix Liberty Dollars into the current money of the United States."

NotHaus remains free on bond. He faces a sentence of up to 15 years imprisonment on count two of the Indictment and a fine of not more than $250,000. He faces a prison sentence of five years and fines of $250,000 on both counts one and three.

In addition, he also has to hand over 16,000 pounds of Liberty Dollar coins and precious metal valued at $7 million.

* * *

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Prophecy Resource Spins Off Platinum/Palladium Venture:
World-Class PGM Deposit in Yukon

Company Press Release, January 18, 2011

VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY) and Pacific Coast Nickel Corp. announce that they have agreed that PCNC will acquire Prophecy's Nickel PGM projects by issuing common shares to Prophecy.

PCNC will acquire the Wellgreen PGM Ni-Cu and Lynn Lake nickel projects in the Yukon Territory and Manitoba respectively by issuing up to 550 million common shares of PCNC to Prophecy. PCNC has 55.7 million shares outstanding.

Following the transaction:

-- Prophecy will own approximately 90 percent of PCNC.

-- PCNC will consolidate its share capital on a 10 old for one new basis.

-- Prophecy will change its name to Prophecy Coal Corp. and PCNC will be renamed Prophecy Platinum Corp.

-- Prophecy intends to distribute half of its PCNC shares to shareholders pro-rata in accordance with their holdings.

Based on the closing price of the common shares of PCNC on January 17, $0.195 per share, the gross value of the transaction is $107,250,000.

For the complete announcement, please visit:

http://prophecyresource.com/news_2011_jan18.php