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Tag: Michael Howard Reed

  • BIRTH OF A ‘SOVEREIGN’ VERB: Appeals Court Upholds Convictions In ‘False-Liens’ Case In Which Defendant Called Law ‘A[**] Wipe’ And Declared He’d ‘Lien . . . Down’ Even On Court-Appointed Defense Counsel; Co-Defendant Was Figure In SEC’s Gold Quest International Ponzi Case And Sought To File Bizarre Lawsuit Against Agency

    “I don’t want to see a lawyer. If you do, I’m going to lien him down fast.” — Gregory Allen Davis addressing U.S. Magistrate Judge Alice R. Senechal of North Dakota in a false-liens case that evolved from events in 2010 and earlier

    UPDATED 5:14 P.M. ET (U.S.A.)

    The word “lien” is a noun. But it seems quickly to have become a verb in the mind of Gregory Allen Davis, a reputed “sovereign citizen” accused in 2010 of filing false liens against U.S. District Judge Daniel Hovland of North Dakota and Lynn Jordheim, a federal prosecutor who once served as the acting U.S. Attorney for the state.

    Appearing before U.S. Magistrate Judge Alice R. Senechal to be arraigned on charges of filing false liens in the form of UCC Financing Statements against Hovland and Jordheim, Davis informed Senechal that he’d reject the appointment of defense counsel by the court, according to transcripts cited by the U.S. Court of Appeals for the Eighth Circuit. (PP Blog emphasis):

    “I don’t want to see a lawyer,” Davis barked to the judge. “If you do, I’m going to lien him down fast.”

    A Tortured History

    With the belligerent morphing of “lien” from noun to verb even as Davis claimed the judge had no jurisdiction over him and demanded she present her “oath of office,” thus began a new chapter in the already-bizarre sagas of Davis and fellow purported “sovereign citizen” Michael Howard Reed.

    Reed emerged as a figure in the May 2008 SEC Ponzi-scheme case against Gold-Quest International (GQI) after asserting he was the “attorney general” for an “Indian” tribe in North Dakota and trying to sue the agency for the staggering sum of $1.7 trillion.

    GQI operated from Las Vegas and touted a footprint in Panama. Reed’s apparent theory was that the enterprise, which was accused of hatching a Ponzi that had gathered nearly $30 million, was untouchable under U.S. law and that it enjoyed sovereignty that somehow was portable across multiple state lines in the United States. A federal judge in Nevada quickly put an end to that nonsensical argument — even as regulators in Canada also were preparing or pressing claims against GQI, which purportedly was operated by a “Lord.”

    Reed’s unsuccessful bid to intervene in the GQI case was hardly his only encounter with the federal judiciary and law-enforcement agencies.

    In rejecting various claims by Davis and Reed in the false-liens case and upholding the rulings of U.S. District Judge Charles B. Kornmann of South Dakota — who was sitting in special designation because the North Dakota federal judiciary had recused itself — the Eighth Circuit appeals panel started out by reciting some of the tortured litigation history surrounding the false-liens case. (Italics added):

    “Gregory Allen Davis and Michael Howard Reed irrationally believe that their membership in the Little Shell Nation, an unrecognized Indian tribe, means they are not United States citizens subject to the jurisdiction of the federal courts. This belief led them into serious trouble. First, Reed threatened North Dakota District Judge Ralph Erickson because he refused to dismiss federal drug charges against two other Little Shell members. Months later, when District Judge Daniel Hovland denied a motion to dismiss a firearm charge pending against Reed, Davis filed a Uniform Commercial Code (UCC) financing statement listing Judge Hovland and acting United States Attorney Lynn Jordheim as $3.4 million debtors and Davis as the secured party. After a three-day trial, a jury convicted Davis and Reed of conspiring to file and filing false liens against Judge Hovland and Jordheim in violation of 18 U.S.C. § 1521. The jury also convicted Reed of corruptly obstructing justice in violation of 18 U.S.C. § 1503(a), based on his earlier threats. On appeal, Davis argues that the evidence was insufficient to prove a violation of § 1521. Both Davis and Reed argue, for somewhat different reasons, that the district court violated their constitutional rights by allowing them to represent themselves at trial. We affirm.”

    Notwithstanding the fact Davis initially had claimed he’d “lien . . . down” even appointed defense counsel and personally defend the charge that he’d filed false liens against public officials, Davis subsequently permitted a lawyer appointed by the court as “standby counsel” to carry out duties such as arguing evidentiary issues, according to court records. Both Davis and Reed reserved their rights to argue the case-in-chief.

    “[T]hey provided opening statements, cross-examined the government’s witnesses, testified in their own defense, and offered a mountain of irrelevant documents relating to their claims of personal sovereignty,” according to Eighth Circuit.

    But after both men were convicted of filing false liens and conspiring to file them, they then claimed they should not have been permitted to act as their own counsel, a claim in stark contrast to the earlier insistence by Davis that he be permitted to exercise his Constitutional right to represent himself and that he’d file a lien against a defense attorney if one were appointed for him.

    Among other things, the Eighth Circuit upheld Kornmann’s conclusion that Davis “knowingly and voluntarily waived his right to counsel.” It made the same determination in rejecting Reed’s argument that the judge should not have permitted him to argue his own case.

    Reed claimed, among other things, that “he should not have been allowed to defend himself foolishly,” according to the Eighth Circuit.

    The Story Within The Story

    Also of note is that the federal law under which Davis and Reed were charged and convicted in North Dakota is the same law under which AdSurfDaily figure and purported “sovereign citizen” Kenneth Wayne Leaming was charged in November 2011 by an FBI terrorism task force in Washington state: Retaliating against a Federal judge or Federal law enforcement officer by false claim or slander of title.

    Leaming, 56, also has a “Little Shell” link, according to the Anti-Defamation League.

    In court filings, the FBI said Leaming filed bogus liens against a federal judge, three federal prosecutors and a special agent of the U.S. Secret Service — among other officials. In addition, he is charged with being a felon in possession of firearms, harboring two fugitives and uttering a bogus “Bonded Promissory Note” for $1 million. He is jailed near Seattle.

    But to Davis, the law against filing false liens against public officials is “ass wipe,” according to a citation in the Eighth Circuit decision upholding his conviction.

    “At trial, an FBI agent testified that, during a January 20 interview, Davis admitted to filing this lien, threatened to file more liens, and referred to the statute prohibiting false liens as “ass wipe,” the appeals panel recounted.

    Leaming, according to court filings in the false-liens cases against him, filed the liens in Washington state.

    Davis, though, chose to file liens in the District of Columbia — and he did so electronically, according to the Eighth Circuit.

    “Reed and Davis conducted a recorded telephone conversation on January 5, 2010, the day Judge Hovland issued an order denying Reed’s motion to dismiss the pending firearms charge,” the appeals panel recounted. “The two discussed placing UCC liens for $2.4 million in cash and $1 million in silver against federal entities. The next day, Davis electronically filed a Form UCC-1 financing statement with the Recorder of Deeds in Washington, D.C., listing as debtors, ‘1. U.S. District Court of North Dakota/Daniel Hovland,’ and ‘2. Acting United States Attorney, Lynn C. Jordheim.”

    The histories of both the Davis/Reed case and the emerging Leaming case lead to troubling questions about whether the Internet and the current state of U.S. and state procedures with respect to how liens are accepted and recorded in the public record have opened the doors for “sovereign citizens” to wage far-reaching revenge campaigns against public officials.

    This comes at potential expense to both taxpayers and the targeted public officials who at least briefly have to take time away from their public duties and put on the hat of a witness/crime victim.

    The Eighth Circuit ruling, for instance, points out that lien targets and federal officials “Hovland and Jordheim testified that they are not indebted to Davis” despite his assertion they owed him millions of dollars.

    “Davis chose a filing office whose public records would likely be searched by a party looking for adverse claims against the properties of Judge Hovland and Jordheim, such as prospective lenders, credit card issuers, and credit rating agencies,” the appeals panel found. “He also filed the facially suspect statement electronically and it became a public record without review.”

    And, as the appeals panel highlighted in a potentially ominous footnote, different results are possible in different jurisdictions. (PP Blog emphasis added):

    “Some States have amended UCC Article 9 to give filing officers discretion to refuse apparently fraudulent or unauthorized filings and to streamline procedures for the removal of fraudulent filings. See White & Summers, Uniform Commercial Code § 31-16 (6th ed. 2010). Absent such an amendment, the UCC grants little authority to refuse to accept fraudulent filings. See § 9-520(a) & cmt. 2.”

    See “The Lawless Ones” report by the Anti-Defamation League.

    Read the Feb. 9, 2012, ruling against Davis and Reed by a three-judge panel in the Eighth Circuit.

  • In Rejecting Tortured Legal Constructions, Judges Across America Now Point To Utah Case Involving AdSurfDaily Mainstay Curtis Richmond

    UPDATED 11:54 A.M. ET (U.S.A.) Curtis Richmond claimed the federal judge overseeing the AdSurfDaily civil-forfeiture case in the District of Columbia was among a group of “Co-Conspirators” that included two federal prosecutors and a court clerk.

    The judge, Richmond claimed, was violating her oath and conspiring with another judge to deny ASD members justice. Prosecutors, meanwhile, were helping the judge interfere with commerce, according to Richmond. The judge rejected Richmond’s arguments — but it didn’t stop other ASD pro se litigants from advancing similar arguments.

    For his bid to intervene in the ASD Ponzi case, Richmond was labeled a “hero” on both the pro-AdSurfDaily “Surf’s Up” forum (now defunct) and on a forum that championed the AdViewGlobal autosurf (now defunct). Among Richmond’s boosters was “Professor” Patrick Moriarty, a Missouri man who once started a purported nonprofit in the name of a man accused of murdering a woman in cold blood and shooting a police officer.

    Moriarty later was indicted for tax fraud. He pleaded guilty after prosecutors said they had “casino” records and intended to use them in the case against Moriarty, who advertised that he sold fake academic degrees on e-Bay as “gag gifts.”

    Prior to Moriarty’s indictment, members of the Surf’s Up forum joined with him in forming a purported Missouri nonprofit known as ASD Members International (ASDMI). ASDMI’s stated mission was to litigate against the government for its role in the ASD Ponzi case.

    Utah resident and ASD figure Christian Oesch — later to join with Washington state resident and ASD figure Kenneth Wayne Leaming in a failed 2010 bid to sue the United States for more than twice the U.S. Gross Domestic Product in 2009 — filed pro se pleadings in the ASD case that championed Richmond’s take on the law.

    But Curtis Richmond’s court forays now have been cited by various judges in various jurisdictions as reasons to reject tortured legal constructions. A federal judge in North Dakota, for example, cited this Utah case involving Richmond as a reason to reject tortured arguments advanced by Michael Howard Reed, a so-called “sovereign citizen” now serving two prison sentences for federal crimes.

    One of Reed’s crimes was filing false liens and threatening a federal judge; the other was possession of a firearm and ammunition by a fugitive from justice.

    Richmond, a Californian who advanced the notion in the 2006 Utah case that he enjoyed diplomatic immunity that extended to him from an “Indian” tribe, became a figure in the ASD case in 2008. The “tribe,” which a federal judge ruled a “sham,” came to be known derisively as the “Arby’s Indians” because it once conducted a meeting at an Arby’s restaurant.

    Reed, whose name surfaced in the 2008 SEC Ponzi case against Gold Quest International after he claimed to be the “attorney general” of an unrecognized tribe and asserted a claim against the agency for $1.7 trillion, asserted in a separate case that the government could not prosecute him because he was immune to U.S. law and had trademarked his name.

    Here is a verbatim section from one of Reed’s nonsensical pleadings in federal court in North Dakota. (Italics/identation added):

    “boa-kaa-konan-na-ishkawaanden=Michael-Howard-Reed=original-creditor-original-beneficiary: for MICHAEL-HOWARD-REED=original-debtor-trustee agent; Under the Penalties of Perjury Affirm that MICHAEL HOWARD REED©TM is a Fictional Entity . . .”

    Richmond’s Utah case was cited in the North Dakota case as a reason to reject Reed’s bizarre arguments.

    It also was cited in this Colorado case in which a U.S. Magistrate Judge rejected the tortured legal constructions of Christopher Douglas Wise. Among other things, Wise, a prisoner in the Colorado state system,  asserted that he was a “secured party creditor” who’d never lived in the “District of Columbia” — and that somehow this alleged fact set destroyed the jurisdiction of the Adams County District Court in which he was convicted of a crime.

    In a separate case in Florida, a federal magistrate judge pointed to Richmond’s Utah “Indian” pleadings as a reason to reject arguments advanced by Timothy Black, who was serving two life sentences for sex crimes involving children and tried to overturn his conviction in part by claiming he had copyrighted his name and by arguing he was not subject to Florida law.

    “Petitioner was found guilty by a jury and convicted of two counts of sexual battery on a person less than twelve years of age, and one count of lewd or lascivious molestation on a person less than twelve years of age,  and sentenced to two terms of life and one term of thirty years, to be served concurrently,” the judge noted.

    Here is a verbatim section from Black’s court claims. (Italics added):

    “Therefore the Third Party [Intervener] is the party who is injured by the action at large as he is incarcerated as surety for his collateral, Debtor TIMOTHY W BLACK© Ens Legis . . .”

     

  • RECOMMENDED READING: Anti-Defamation League Outlines Activities Of ‘Sovereign Citizen Groups’; Report Notes Instances Of ‘Bogus Liens’ Filed Against Public Officials, Including Former President Bill Clinton

    EDITOR’S NOTE: If you’ve been following the odd developments and conspiracy theories associated with the AdSurfDaily and Gold Quest International cases, we recommend you read this August 2010 report (see link below) by the Anti-Defamation League. The report notes various threats made against law enforcement, along with frauds and scams linked to the so called “Sovereign Citizen Movement.”

    Both ASD and GQI are known to have so-called “sovereigns” among their membership ranks. Bizarre court pleadings have surfaced in both cases.

    The ADL report specifically references Michael Howard Reed, shown in records to have been a harassing presence in the GQI Ponzi case brought by the SEC in May 2008. On Friday, federal prosecutors filed a forfeiture complaint that alleged ASD had a tie to E-Bullion, a shuttered digital-currency business. Other records show E-Bullion also had a tie to GQI.

    Friday’s filing marked the first time that E-Bullion’s name had surfaced in the ASD case. The reference is important because E-Bullion now has been linked to multiple alleged fraud schemes. E-Bullion founder James Fayed was charged in California in 2008 with operating an unlicensed money-transmitting business. He also was charged with murdering his estranged wife, who sought to cooperate with prosecutors in the E-Bullion investigation.

    Among the calling cards of the sovereign movement are bizarre court pleadings and vexatious litigation described as “paper terrorism.” The so-called sovereigns have sought to derail investigations and hamstring investigators and public officials by making them parties to lawsuits or subjecting them to threats of litigation or the filing of bogus liens against personal property, ADL reports.

    Bogus liens filed against public servants in the performance of their duties is a “major problem,” ADL says.

    One such lien even was filed against former President Bill Clinton, ADL reports.

    “Many sovereign citizens have engaged in a variety of scams and frauds, some of them raking in millions of dollars, while countless more sovereign citizens have engaged in acts of harassment, retaliation, and intimidation against public officials, law enforcement officers, and private citizens,” ADL says.

    “As it evolved, the sovereign citizen movement developed an ideology centered on a massive conspiracy theory,” ADL says. “Though different sovereign theorists all have their own varying versions of this conspiracy, including exactly when it started and how it manifested itself, the theories all share the belief that many years ago an insidious conspiracy infiltrated the U.S. government and subverted it, slowly replacing parts of the original, legitimate government (often referred to by sovereigns as the ‘de jure’ government) with an illegitimate, tyrannical government (the ‘de facto’ government).

    “As a result, sovereign citizens believe that today there are really two governments: the ‘illegitimate’ government that everyone else thinks is genuine and the original government that existed before the conspiracy allegedly infiltrated it.”

    Read the ADL report.

  • ASD ALL OVER AGAIN? ‘3 Hebrew Boys’ Accuse U.S. Attorney Of ‘Treason’; Claim Draws Another Parallel To AdSurfDaily

    Three men found guilty in South Carolina last week of operating an $82 million Ponzi scheme accused a federal prosecutor of treason on the same day the jury returned its verdict, the FBI said.

    A treason claim also was made in the federal forfeiture proceeding against assets tied to Florida-based AdSurfDaily, an alleged Ponzi scheme involving $100 million.

    U.S. District Judge Margaret B. Seymour cited the treason claim in the “3 Hebrew Boys” case as a reason to send Joseph Brunson, Tim McQueen and Tony Pough to jail immediately to await sentencing.

    “After the jury’s verdict, Judge Seymour was asked to allow the men to remain free on bond until their sentencing,” the FBI said.  “She denied the request after noting that all three men filed documents [Friday] accusing U.S. Attorney Walt Wilkins of treason and committing acts of war by prosecuting them.”

    Brunson, McQueen and Pough became known as “3 Hebrew Boys” after operating a website with the same name, which is based on a biblical story of believers who escaped a furnace by relying on their faith. The Ponzi scheme operated under the name Capital Consortium Group LLC.

    Wilkens said the scheme targeted people of faith and members of the military.

    U.S. Attorney W. Walter Wilkins
    U.S. Attorney W. Walter Wilkins

    “By calling themselves the Three Hebrew Boys, these con men tried to disguise their Ponzi scheme as a religious, charitable program of debt elimination in order to gain the trust of unsuspecting investors,” Wilkins said. “Unfortunately many people were victimized by these men, including many in our armed forces.”

    In the ASD case, the treason claim was made against U.S. District Judge Rosemary Collyer. ASD is known to have members who identify with the so-called sovereignty movement.

    California resident Curtis Richmond, a pro se litigant in the ASD case, identified himself in court documents in a separate case as a “sovereign” being who enjoyed diplomatic immunity from prosecution and answered only to Jesus Christ.

    Richmond is associated with a Utah “Indian” tribe ruled a “complete sham” last year by U.S. District Judge Stephen Friot. On the eve of a civil RICO trial last year, Richmond attempted to have Friot removed from the case by claiming he owed Richmond $30 million.

    Friot refused to step down in Utah, as did Collyer in the District of Columbia. Richmond accused Collyer earlier this year of operating a “Kangaroo Court” and violating her judicial oath. Collyer is presiding over the ASD civil-forfeiture case. Other filings in the ASD case suggested Collyer was guilty of as many as 60 felonies, and that an effort had been made by at least one ASD member to start a process to collect $120 million from Collyer, two federal prosecutors and a court clerk for “Interference With Commerce.”

    Screen shot: Section of a pro se filing in the ASD case.
    Screen shot: Section of a pro se filing in the ASD case.

    Such bizarre claims have been popping up more and more in litigation involving securities.

    Gold Quest International (GQI), a company accused by the SEC last year of operating a Ponzi scheme from Las Vegas, claimed it was part of a North Dakota Indian tribe and was immune from U.S. law.

    After the SEC brought the charges against GQI in May 2008, Michael Howard Reed, the purported “attorney general” of the tribe, tried to sue the SEC for $1.7 trillion. The sought-after amount would have exceeded the total of federal income tax paid by individual U.S. filers last year by about $575 billion.

    U.S. District Judge Kent J. Dawson struck a series of pleadings by Reed from the record.

    Meanwhile, Dawson jailed John Jenkins, one of the defendants implicated in the Ponzi scheme, for contempt. Dawson also dispatched the U.S. Marshals Service to arrest David Greene, also known as “Lord David Greene,” in part for violating orders to repatriate money offshore to the United States.

    Despite Richmond’s behavior, he was labeled a hero on the Pro-ASD Surf’s Up forum. Over the weekend, Surf’s Up reinforced an earlier announcement that it would not permit discussion about the AdViewGlobal (AVG) autosurf.

    “[P]lease don’t expect any information that concerns AVGA,” a forum Mod said Saturday. “[I]t doesn’t belong on this forum.”

    Another Mod reinforced the ban on AVG discussion today.

    “In the beginning days of AVG we made it clear this is not an AVG forum and it still will not be,” the Mod said.

    Surf’s Up members repeatedly have said they wanted to discuss AVG, which has close connections to ASD. Their requests have been consistently rebuffed. Some of the Surf’s Up Mods were among the founding members of the AVG surf, which came to life after a major court ruling went against ASD last year.

    AVG purported to be a “private association” that operated offshore. Members used the “offshore” angle as a key selling point, saying the surf’s purported country of operation — Uruguay — insulated it from prosecution.

    Like the “3 Hebrew Boys” operation, AVG sought to prevent members from discussing the company outside the confines of areas it controlled. AVG members were scolded for sharing information and calling the autosurf an “investment” program.

    As AVG was in failure mode in May and June, members were threatened with copyright-infringement lawsuits. Critics were told AVG would contact their ISPs to file abuse reports and suspend service.

  • UPDATE: Sham ‘Attorney General’ In ‘Indian’ Case Sought $1.7 TRILLION From SEC; Wikipedia Says He Was Jailed In Nevada For ‘Attempted Murder,’ Other Charges

    EDITOR’S NOTE: This is an update to supplement a story about bizarre securities litigation that has occurred recently. (Updated 9:10 P.M. EDT (U.S.A.)

    Think the $250 million judgment sought against a public servant by a sham “sovereign” Utah “Indian” tribe to which AdSurfDaily mainstay Curtis Richmond belonged was bizarre and extreme?

    It turns out to have been a drop in the bucket compared to the $1.7 trillion sought by the bogus “attorney general” of an unrecognized North Dakota tribe. Michael Howard Reed, who is not an attorney but purported to hold the title of “attorney general,” sought the award after the Securities and Exchange Commission sued purported tribal members for running a $29 million Ponzi scheme from Nevada.

    The sought-after amount of $1.7 trillion would have exceeded the total of federal income tax paid by individual U.S. filers last year by about $575 billion.

    A federal judge was not pleased by the gamesmanship in the securities-fraud case against Gold Quest International, which purported to be registered in Panama but was operating the alleged Ponzi scheme from Las Vegas while claiming immunity from U.S. law.

    U.S. District Judge Kent J. Dawson struck a series of pleadings by Reed from the record.

    Meanwhile, Dawson jailed John Jenkins, one of the defendants implicated in the Ponzi scheme, for contempt.

    Dawson also dispatched the U.S. Marshals Service to arrest David Greene, also known as “Lord David Greene,” in part for violating orders to repatriate money offshore to the United States.

    All of this took place only weeks before the U.S. Secret Service seized tens of millions of dollars from Florida-based ASD, itself accused of operating a Ponzi scheme and selling unregistered securities.

    Wikipedia says Reed was jailed in Nevada on charges of attempted murder, although no details were provided in the entry. (UPDATE Jan. 21, 2010: This Wikipedia entry appears to have been disputed, with the reference to Reed and the purported attempted-murder charge removed.)

    Richmond entered the ASD fray in November. By early February, he was filing pro se motions suggesting ASD members intended to pursue claims of $120 million against the prosecutors, a judge and a court clerk.

    By late February, ASD President Andy Bowdoin himself was filing pro se motions, acknowledging ASD had been operating illegally but claiming he’d been denied “fair notice” his conduct was illegal.

    Bowdoin’s actions coincided with an announcement by the AdViewGlobal (AVG) autosurf that it was shifting to an “association” structure.” Such structures sometimes are associated with tax schemes.

    AVG introduced members to Pro Advocate Group, which is associated with Karl Dahlstrom. Dahlstrom was convicted in a securities scheme in the 1990s and sentenced to 78 months in federal prison.

    The Utah “Indian” tribe to which Richmond belonged was ruled a “complete sham” by a federal judge last year. Meantime, the North Dakota tribe to which the GQI defendants purportedly belonged is not recognized by the federal government. There is substantial securities litigation against GQI in Canada, as well.

    See story on $1.7 trillion filing in the Las Vegas Review-Journal.