FBI

The FBI and the Secret Service showed their willingness today to utilize the expanded definitions of “counterfeit currency” and “domestic terrorism” brought about by the recent conviction of Bernard von NotHaus of the alternative currency outlet “Liberty Dollar” when the agencies initiated a surprise raid on an unsuspecting Chuck E. Cheese establishment in Des Moines, Iowa. “Haven’t you ever been at the laundry mat with a pocket of change thinking you have plenty of quarters, only to discover that most of them are Chuck E. Cheese tokens?!” railed Anne Tompkins, Department of Justice prosecutor in the Liberty Dollar case, as she read from a carefully prepared DHS script. “That is close enough to counterfeiting for me! It is a blatant destabilization of our democratic economy! What are you supposed to do, let your underpants wallow in filth while Chuck E. Cheese makes a profit? I say no to these financial terrorists!”

The FBI, which apparently has no major criminals to pursue, is now busting those who are preparing for the dollar's imminent destruction. Bernard von NotHaus, head of the National Organization for the Repeal of the Federal Reserve and Internal Revenue Code, commonly known as NORFED and also known as Liberty Services (his website can, or rather could, be seen here), which since 1998 has been issuing silver coins as a replacement for the relentlessly devaluating US currency, was convicted today by a federal jury of
making, possessing, and selling his own coins. "
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 devious scheme for which von NotHaus faces up to 15 years jail time: "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 other words make the US currency less credible. We are confident the Chairsatan will take this shining example of what happens to "counterfeiters" of US currency to heart, and promply proceed to release another cool trillion in green 75% cotton/25% linen products, forcing US jails to promptly fill up with millions of subversive elements who no longer wish to interact with the former reserve currency.

9/11 was as foreseeable as the financial crisis ...

"It is hard to overstate the political significance of the anthrax attacks .... That event played at least as much of a role as the 9/11 attacks in elevating the Terrorism fear levels which, through today, sustain endless wars, massive defense and homeland security budgets, and relentless civil liberties erosions."

Another frame up falls apart ...

Fox Business' Charlie Gasparino tells us of another curious development in the insider trading affair. According to the former CNBC staffer, the FBI now not only utilizes such mob tactics as bugged phones and wearing wires, but is now resorting to actual moles within presumably innocent organizations such as hedge funds. And it is no surprise that the federal task force continues to chisel away at the SAC diaspora, in this case David Ganek's Level Global. After all the start prize is and has always been the prominent resident of 30 Crown Lane in Greenwich, CT.

As if the global capital markets hadn’t suffered enough shocks lately -- artillery fire in Korea, meltdown in Ireland, Eva Longoria Parker’s divorce filing -- life just threw America’s hedge-fund masters a beanball. It appears the government wants to toss many of them in jail. This week the Federal Bureau of Investigation executed search warrants at three large hedge funds’ offices as part of a widening insider-trading investigation. Several other funds, including SAC Capital Advisors, got subpoenas for documents. What does this crisis mean for the industry? We already can guess the first question that must have leaped to the mind of every self-respecting wealth maximizer: “How can I use this information to make enough money to buy myself a jet?” The answer, of course, is that it pays to be on the inside. This raises an even more intriguing existential question. Is it possible for a hedge fund to profit off its own imminent collapse? A little role-playing exercise shows it’s not only possible -- it’s preordained.

Preliminary news of a WSJ report that the FBI has raided Diamondback and Level Global. First two SAC spin offs down. David Ganek's 740 Park suite about to be put on the market.

According to preliminary news reports, the headquarters of Sommet Group, the Franklin, TN-based major outsourcer of business services including payroll, medical billing, HRM, insurance and risk management and others, has been raided by the FBI, the IRS and the DOL. It would be shocking, shocking, if some fraud was uncovered when it comes to (mis)reporting labor statistics or medical billing detail. From News Channel 5: "The FBI along with the IRS criminal investigation's division and the Department of Labor have all gone into the Sommet Group headquarters in Franklin with a search warrant. The Sommet Group is located on Cool Springs Boulevard. The FBI would not say what the search warrant was issued for. They expect to release more details Tuesday afternoon."

God bless brave US-based hosting companies.

http://embeddedart.com/

 

This website has been taken offline due to the sensitive nature of the
events that transpired in Texas this morning and in compliance with a
request from the FBI. If you want to see the original letter, please
see the archived version at thesmokinggun.com: http://www.thesmokinggun.com/archive/years/2010/0218102stack1.html

Regards,

T35 Hosting

 

Meeting with the head G-Man. FBI Director Robert Mueller gives his take on the Google Affair. Welcome to the new Cold War. Where is my 20 terabytes of data? One country’s criminal is another’s national hero.

The man who brought down Galleon is not finished, and if the report by Reuters' Matt Goldstein is correct, FBI special agent B.J. Kang may well have his sights set on the top of the hedge fund pantheon: SAC Capital itself. This is not a surprise to Zero Hedge, and is something we have speculated on in the past, however the intricacies of such a spectacular take down would have to be refined beyond any reasonable doubt as any allegations against Mr. Cohen will likely see the involvement of every single $1,000/hour billing lawyer in the world, taking on any DOJ case.

CNBC reports. Unclear at this point if the arrests are related to Galleon. Identities so far unknown. Should make the paranoia in the rest of the hedge fund world reach 5mg Geodon prescription levels. Details from the WSJ: "The New York office of the FBI said the individuals were primarily taken into custody in New York. One person was arrested in New Jersey and one person was arrested in Connecticut."

The stuff just got serious folks. "The FBI involvement opens up the possibility of criminal charges, although the scope and possible outcome of the probe remain unclear."

Presumably arrested although sources are unclear... maybe arresting FBI agents were on the political contribution list and looked the other way for 30 seconds.