Man who made coins found guilty
In September 2008, Bernard von NotHaus donned prison stripes at the Silver Summit at the Best Western Coeur d'Alene Inn.
Von NotHaus, 67, was at the summit pitching his own "Liberty Dollar" coins, but dressed the part of a convict to stick a symbolic finger in the eye of the federal authorities. They had seized records, dies for casting coins, and Liberty Dollars from three Coeur d'Alene businesses linked to his currency. Sunshine Minting Inc. in Coeur d'Alene made coins for von NotHaus.
Von NotHaus was convicted last month by a federal jury in Statesville, N.C., of making and selling counterfeit coins, and of conspiracy against the U.S. government, said Anne M. Tompkins, U.S. attorney for the Western District of North Carolina.
The verdict against him was delivered after an eight-day trial and less than two hours of jury deliberation, and concludes an investigation that began in 2005. He was indicted in June 2009.
"The government would have you believe if you used a silver coin, you would be a criminal," von NotHaus told The Press in September 2008. "I'm not a criminal. I don't anticipate going to jail."
He designed the Liberty Dollar currency in 1998. The coins bear the inscriptions "Liberty," "Dollars," and "Trust in God" (instead of In God We Trust), and other features associated with the legitimate U.S. currency.
Von NotHaus, who remains free on bond, faces a sentence of up to 15 years in prison and a fine of up to $250,000 on one count. He faces up to five years and further fines on two other counts.
In addition, the U.S. 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 is under way.
Tompkins said, "Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism."
Tompkins said that while these forms of anti-government activities do not involve violence, they are as "insidious" and represent a danger to the country's economic stability.
"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," she said.
According to the evidence introduced during his trial, von NotHaus was the founder of a group called the National Organization for the Repeal of the Federal Reserve and Internal Revenue Code, commonly known as NORFED. It also is known as Liberty Services.
Since 1998, NORFED has been issuing, disseminating and placing into circulation the Liberty Dollar in all its forms throughout the U.S. and Puerto Rico.
NORFED intended to limit people's reliance on, and compete with, the U.S. currency, federal prosecutors said.
The U.S. Constitution delegates to Congress the power to coin money and regulate its value. Congress also has the power to restrain the circulation of money which is not issued under its own authority.
Federal laws make it illegal for individuals or organizations to create private coin or currency systems to compete with the official currency of the U.S.
The U.S. Mint issued a press release in September 2006, warning people and businesses that the Liberty Dollar was "not legal tender."
The U.S. Mint said NORFED is headquartered in Evansville, Ind., and that its medallions are produced in Coeur d'Alene. NORFED claims that more than $20 million worth of Liberty Dollar coins and notes are in circulation.
Von NotHaus places of residence have included Evansville and Honolulu.