Tag: FBI

  • PONZI NOTES: (1) Kansas Lawyer Allegedly Ran Scheme Out Of Trust Accounts And Scammed Intended Beneficiaries, Including Clients’ Children And Grandchildren And Prominent University, Feds Say; (2) Former Texas Attorney Pleads Guilty In $7.8 Million Caper

    Yesterday was another bad day for the legal profession’s noble members: They once again had to bear headlines about fraud schemes allegedly operated by colleagues past and present.

    In Kansas, attorney Robert M. Telthorst, 52, of Topeka, was charged with wire fraud and money-laundering amid allegations he ran a Ponzi scheme for all or parts of seven years with clients’ trust accounts.

    After a man identified in court documents as “Otto K.” died, Telhorst was appointed to administer payments to two of the man’s daughters and entrusted with $463,344, prosecutors said.

    One of the daughters was to receive a lump sum, the other a monthly allotment, prosecutors said.

    In the trust for the daughter who was to receive monthly income, “the balance dropped from more than $208,500 to less than $150 after Telthorst removed most of the funds for his own benefit,” prosecutors said.

    Separately, Telthorst scammed three granddaughters of a client by raiding their educational trusts that had been set up with $10,000 each.

    “He depleted all three trusts, leaving them each with balances of less than $350,” the office of U.S. Attorney Barry Grissom of the District of Kansas said.

    Beyond that, two other clients had set up an $80,000 trust to benefit the Business School at the University of Kansas.

    “The balance in the account dropped to less than $1,750 after Telthorst diverted funds to his own benefit,” prosecutors said.

    Assisting in the Telthorst probe were the the FBI and the Shawnee County District Attorney’s Office, prosecutors said.

    Meanwhile, former attorney Billy Frank Davis of Houston pleaded guilty to wire fraud in a case that alleged he held himself out as a real-estate professional for 10 years but actually was running a Ponzi scheme with “a substantial portion of the funds he solicited.”

    “Davis admitted to using a variety of ploys to perpetuate his Ponzi scheme, all of which involved falsely representing to investors the existence or nature of various real estate investment opportunities, accepting funds from investors under such false pretenses, and then using the investor funds in a manner other than as represented to investors,” the office of U.S. Attorney Ken Magidson of the Southern District of Texas said.

    Davis, also known as Bill F. Davis, is 67. The scheme fetched $7.8 million, prosecutors said.

    Sentencing is scheduled for Jan. 11 before U.S. District Judge David Hittner. Davis faces up to 20 years in federal prison, and the FBI led the probe, prosecutors said.

  • ASD Figure Kenneth Wayne Leaming’s Birther Lawsuit Against Obama, Holder Gets Tossed

    Screen shot: Part of the Leaming/Stephenson complaint demanding gold and silver.

    After he was charged with filing false liens and other crimes and jailed near Seattle, AdSurfDaily story figure and purported “sovereign citizen” Kenneth Wayne Leaming apparently thought it prudent to sue President Obama and U.S. Attorney General Eric Holder.

    Leaming, 56, advanced a theory that Obama was not born in the United States, was not eligible to be President and had appointed Holder unlawfully.

    It therefore followed, according to Leaming and co-plaintiff and former business colleague David Carroll Stephenson, that Holder was “Personating [sic] the Attorney General of the United States” and could not lawfully appoint or delegate authority to “Any United States Attorney.”

    And because Holder had oversight responsibility over the U.S. Attorney’s Office in the Western District of Washington that had brought the criminal charges against Leaming and Stephenson after an FBI probe, the duo apparently surmised, it followed that the prosecution was unlawful and should be declared “VOID For FRAUD” because the U.S. Attorney also is “personating” [sic] a federal officer.

    In their June lawsuit, Leaming and Stephenson demanded compensation in “gold” and “silver” for each day they allegedly were held unlawfully. Over time, the docket of the case swelled to more than 30 entries.

    On Oct. 11, however, U.S. District Judge Robert S. Lasnik dismissed the Leaming/Stephenson lawsuit “for failure to identify any viable claim for relief.”

    The judge also ordered “all pending motions” stricken as moot.

    Leaming and Stephenson remain jailed near Seattle.

    In court filings earlier this month, federal prosecutors said Leaming was instrumental in founding the “County Rangers,” a “sovereign group’s armed enforcement wing.”

    He is charged with filing false liens against at least five federal officials involved in the prosecution of the AdSurfDaily Ponzi scheme, which the U.S. Secret Service described as a fraud operated by Andy Bowdoin that had gathered at least $119 million.

    Bowdoin, 77, was sentenced in August to 78 months in federal prison.

    Leaming initially was arrested by the FBI in November 2011. He was indicted in January 2012 on charges of filing false liens, harboring fugitives, possessing firearms as a convicted felon and uttering a bogus “Bonded Promissory Note” with a face value of $1 million and depositing it in U.S. Bank.

    Stephenson, a tax fraudster already jailed when Leaming was arrested and jailed, worked with Leaming to file false liens against U.S. prison officials, prosecutors said.

    See Nov. 27, 2011, PP Blog story that outlines FBI allegations that Leaming was discussing a way to serve Stepenson-related papers on U.S. Chief Justice John Roberts through the school attended by his children, who are minors.

    Roberts is the top judicial officer in the United States.

  • The Bizzare Saga Of Denny Ray Hardin: 10-Year Prison Sentence Of Purported ‘Sovereign Citizen’ Whom Prosecutors Said Tried To ‘Extinguish Over $100 Million Worth Of Debt’ Upheld By Appeals Court

    EDITOR’S NOTE: In August 2011, the FBI warned of debt-elimination schemes advanced by purported “sovereign citizens.” The story below outlines a “bonded promissory notes” scheme advanced in Missouri by Denny Ray Hardin. It is worth noting that AdSurfDaily figure Kenneth Wayne Leaming is jailed near Seattle awaiting trial in a case that alleges he issued a “bonded promissory note” and filed false liens against public officials.

    ** ____________________________ **

    The 10-year prison sentence of a purported “sovereign citizen” who hatched a scheme in which bogus financial products were sold to customers in a bid to eliminate their debts has been upheld by the U.S. Court of Appeals for the 8th Circuit.

    Denny Ray Hardin, 53, of Kansas City, Mo., was convicted in September 2011 of 11 counts of creating fictitious obligations and 10 counts of mail fraud.

    The circumstances that led to Hardin’s arrest and trial were just plain bizarre. Hardin, according to prosecutors, divined a a construction by which he was a private banker authorized to issue “bonded promissory notes” (BPNs) backed by the government.

    Customers were told they could use Hardin’s manufactured notes to wipe out their debts, and Hardin charged $100 or more for the notes, prosecutors said.

    Hardin called his purported bank “The Private Bank of Denny Ray Hardin,” and he operated it from his residence, prosecutors said. The scheme in part operated online, but also through the mails.

    “Hardin defrauded customers by selling them BPNs with the false promise that these fictitious instruments can discharge debts,” prosecutors said. “Hardin defrauded creditors by presenting them with worthless BPNs.”

    U.S. District Judge Gary A. Fenner sentenced Hardin to 10 years. An appeal followed.

    In upholding the sentence, a three-judge appeals panel from the 8th Circuit noted that Fenner could have sentenced Hardin to nearly 34 years in prison but used his discretion under the circumstances of the case to depart downward, ordering a 10-year-sentence and three years’ supervised probation after Hardin’s release.

    Records in the case show that Hardin, in October 2010, was ordered “committed to the custody of the United States Attorney General for hospitalization and treatment” after he raised issues of his own competency to stand trial.

    In May 2011, Hardin was ruled competent to stand trial.

    At a pretrial conference in August 2011, prosecutors announced they had at least 30 witnesses and 487 trial exhibits.

    Hardin, who had decided to represent himself and had been appointed stand-by counsel, “refused to participate in the proceeding and objected to the Court’s jurisdiction, according to a memo by the presiding magistrate judge. (Read memo at Leagle.com).

    The conviction followed on Sept. 14, 2011, and the appeals panel last week upheld the 10- year sentence.

    Among other things, the panel rejected as “meritless” Hardin’s claims that the district court had no jurisdiction over him.

    These are among the findings of the appeals panel (italics/bolding added):

    Witness testimony and documentary evidence established that (1) Hardin produced
    fictitious financial instruments that he called “bonded promissory notes” and (2) Hardin claimed that these notes had monetary value to discharge debt and were authorized by the United States Department of Treasury. Hardin typically sold the bogus notes for a fee and then mailed them to financial institutions on behalf of the purchaser with the stated purpose of extinguishing that purchaser’s debt, including mortgage debt. Hardin continued this course of action even after he was advised about the illegality of his conduct. See 18 U.S.C. § 514(a) (producing fictitious obligations with intent to defraud), § 1341 (using mail in a scheme to defraud).

    At sentencing, the panel recounted, “additional evidence was introduced to show that Hardin sold the fictitious instruments to over 50 customers and attempted to extinguish over $100 million worth of debt . . .”

  • Government Opposes Bids By ASD Figures Todd Disner And Dwight Owen Schweitzer To Reopen Lawsuit And Boot Federal Judge From Case

    AdSurfDaily figures Todd Disner and Dwight Owen Schweitzer should not be permitted to reopen their lawsuit against the government for alleged misdeeds in bringing the ASD Ponzi-scheme case in August 2008, government lawyers said in court filings today.

    Moreover, the bid by Disner and Schweitzer to force U.S. District Judge Rosemary Collyer of the District of Columbia to recuse herself from the case should fail because the ASD duo’s “dissatisfaction with the Court’s rulings is not a basis for recusal,” the lawyers said.

    Disner and Schweitzer, who became pitchmen for the alleged Zeek Rewards Ponzi scheme after their ASD days ended, sued the United States in November 2011. Collyer dismissed their lawsuit in late August, ruling that Disner and Schweitzer lacked standing to bring their 4th Amendment claim.

    Collyer dismissed the case on Aug. 29, the same date upon which she sentenced ASD operator Andy Bowdoin to 78 months in federal prison. Bowdoin, 77, admitted in May that ASD was a Ponzi scheme and that the firm never operated lawfully from its 2006 inception.

    Summoning a fancy word in their bid to force Collyer to step down, Disner and Schweitzer accused the judge of “sophistry.”

    The move by Disner and Schweitzer to prevent Collyer from hearing ASD-related matters was at least the third. Two others failed — one by purported “sovereign” being Curtis Richmond in 2009 and another by Bowdoin himself in 2009.

    “Plaintiffs’ motion to reopen and set aside the Court’s Order of August 29, 2012, merely rehashes arguments previously raised and fails to demonstrate any error, let alone clear error, in the Court’s ruling granting Defendant’s motion to dismiss. Likewise, the record provides no support for Plaintiffs’ motion to recuse Judge Collyer and this motion, too, should be dismissed,” the government said.

    ASD was a Ponzi scheme that raised at least $119 million, federal prosecutors said.

    Zeek Rewards was a $600 million Ponzi- and pyramid scheme, the SEC said on Aug. 17.

    Precisely when Disner and Schweitzer joined Zeek is unclear.

    What is clear is that some very strange events have occurred since the U.S. Secret Service brought the civil portion of the ASD Ponzi case in 2008.

    Purported “sovereign citizen” Kenneth Wayne Leaming is jailed near Seattle on charges he brought false liens against Collyer, three federal prosecutors and a U.S. Secret Service agent who had roles in the case.

    Leaming was arrested by an FBI Terrorism Task Force in November 2011. He since has sued President Obama and Attorney General Eric Holder. Separately, Leaming sued a county sheriff in Arkansas.

    Some ASD members claimed Leaming was doing legal work for them, even though he is not an attorney.

    Disner, who solicited funds to sue the government for alleged misdeeds in the ASD case, also was involved in an effort by Zeek figure Robert Craddock to raise funds to intervene in the Zeek case.

    Precisely how Craddock intends to do that is unclear.

  • Feds Arrest Alleged North Carolina Securities Scammer After SEC Sues Him; More Than $2 Million Allegedly Linked To WWebnet Lost After Being Transferred To Cayman Islands, Prosecutors Say; Robert Kelly Lied To Investors And Software-Development Team, FBI Says

    “The audacity of this defendant’s alleged scheme was matched by its simplicity. He solicited and obtained millions of dollars from investors and simply pocketed the money for personal use. He told investors they were funding software development, then told his development team he hadn’t found investors.”FBI Acting Assistant Director-in-Charge Mary Galligan, Oct. 3, 2012

    Robert Kelly of Wwebnet Inc. was running a scam in which millions of dollars were dissipated in the Cayman Islands, prosecutors said today.

    A North Carolina man sued by the SEC in August in an alleged fraud scheme now has been arrested on criminal charges.

    Robert Kelly, CEO of Wwebnet Inc., was arrested yesterday in Raleigh on charges of securities fraud and wire fraud. The criminal case was brought by the office of U.S. Attorney Preet Bharara of the Southern District of New York after a probe by the FBI.

    Wwebnet was a software company developing a program “capable of transmitting music, videos, and movies over the Internet.” But Kelly effectively looted the firm to “trade options, to pay his personal income taxes, and for other purposes unrelated to software development,” prosecutors said.

    “As alleged, Robert Kelly was simply an old-fashioned grifter touting a new technology opportunity in order to pick people’s pockets,” Bharara said. “He is the latest in a long line of defendants who allegedly lured unsuspecting investors with the allure of new technology only to be caught by law enforcement, but regrettably, probably not the last.”

    Kelly is 56. He formerly lived in New York, prosecutors said.

    At least some of the money made its way offshore and was dissipated, prosecutors said.

    “[Kelly] transferred at least $2.11 million in investor funds into his personal trading account in the Cayman Islands which he used to trade options,” prosecutors said. “By May 2008, that account had a zero balance.”

    From a statement by prosecutors (italics added):

    From 2004 through November 2008, KELLY solicited investors to send money to various Wwebnet-related bank accounts by misrepresenting that the funds would be used to develop software for transmitting music, videos, and movies over the Internet. Instead of using the millions of dollars in investor proceeds that he obtained for legitimate business purposes, KELLY diverted a substantial portion of the money that he raised for his own financial benefit. For example, KELLY transferred at least $2.11 million in investor funds into his personal trading account in the Cayman Islands which he used to trade options. By May 2008, that account had a zero balance. KELLY also used money he received from investors to pay his federal and state personal income taxes. At the same time that he was using investors’ money for his own personal benefit, KELLY falsely told his software development team that he was unable to allocate adequate resources for software development and could do so only when he was able to raise money from investors.

    Read the SEC’s August complaint.

  • BULLETIN: Purported ‘Sovereign Citizen,’ 71, Charged In Alleged Murder-For-Hire Plot Against Federal Judge In Texas

    BULLETIN: A federal judge in Texas was the target of a murder-for-hire plot by a purported “sovereign citizen,” the FBI said.

    Phillip Monroe Ballard, 71, already was jailed at the Fort Worth Federal Correctional Institution when he solicited the killing of U.S. District Judge John McBryde, the office of U.S. Attorney Sarah R. Saldaña of the Northern District of Texas said.

    Ballard was to go on trial today before McBryde, prosecutors said. He now has been charged with soliciting the judge’s murder.

    Last month, according to the FBI, the agency received information from the Federal Bureau of Prisons (FCI Fort Worth) that Ballard was talking about having McBryde killed so a new judge would be assigned.

    On Sept. 9, according to the FBI, Ballard was in the prison’s “day room” with other inmates and “talking about his belief in being a sovereign citizen,” claiming that “he is immune from all the laws of the United States.”

    One of Ballard’s fellow inmates reported that Ballard had “approached him about killing McBryde,” federal prosecutors said.

    That inmate agreed to become a “cooperating source,” according to the FBI.

    Because Ballard feared McBryde would sentence him to 20 years, Ballard proposed a plan by which the judge would be murdered with a “high-powered rifle” outside the federal courthouse or with a car bomb.

    The informant told Ballard he could help arrange the judge’s murder and have “a guy on the outside” carry out the lethal crime, according to the FBI.

    Ballard offered $100,000 for the contract, provided the informant a “hand-written map” of the external courthouse and emailed his sister to send $5,000 to an address in Oklahoma, the FBI said.

    That address was the address set up by the FBI as part of its sting, and the $5,000 was the down payment on the judge’s murder, the FBI said.

    McBryde has recused himself from the tax trial, which has been postponed, federal prosecutors said.

     

     

  • ‘Investor-Fraud Summits’ Set For 6 U.S. Cities: Stamford, Conn.; Nashville, Tenn.; San Francisco; Denver; Cleveland And Miami

    What: Investor Fraud Summits.

    Where/When: Stamford, Conn. (today from 9 a.m. to 1 p.m. EDT at the University of Connecticut – Stamford Campus); Nashville, Tenn. (Oct. 4 from 8:45 a.m. to 12:30 p.m. EDT at Vanderbilt University Law School’s Flynn Auditorium located at 131 21st Avenue South) ; San Francisco (Oct. 9, in Walnut Creek, Calif., from 9 a.m. to 1 p.m. PDT at the Rossmoor Retirement Community – Gateway Complex located at 1001 Rain Road); Denver (Oct. 10 from 8 a.m. to 12 p.m. MDT at the Tivoli Building – Turnhalle Auditorium located at 900 Auraria Parkway, Suite 150); Cleveland (Oct. 11 in Beachwood, Ohio, from 8:30 a.m. to 12:30 p.m. EDT at the Montefiore Senior Living Center located at 1 David Myers Parkway); and Miami (Oct. 12 from 9 a.m. to 1 p.m. EDT at the Miami Dade College – in the Chapman Conference Center, located at 245 N.E. Fourth Street, Bldg. 3, Room 3210).

    Why: Investment fraud losses have been “staggering,” the Justice Department says.

    Since the beginning of 2011, “the Justice Department’s Criminal Division and 85 U.S. Attorneys’ offices have reported that approximately 800 defendants have been charged, tried, pleaded or sentenced in approximately 500 federal prosecutions involving investor fraud. The total reported amount cheated from victims for this time period tops more than $20 billion.”

    Summit Sponsors: Department of Justice, U.S. Attorneys’ offices, the FBI, the SEC, the FTC, the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), the CFTC, the Bankruptcy Trustees, FINRA, AARP and the Better Business Bureau.

    Top law-enforcement officials will be on hand at each of the summits. See the Justice Department news release for details.

  • FOR COURT PERSONNEL, ATTORNEYS, INVESTIGATORS: Alberta Judge Analyzes Bizarre Filings By ‘Sovereign Citizens,’ Others; Divorce Case Leads To Extraordinary Dissection Of Various Schemes And Introduces New Term: ‘Organized Pseudolegal Commercial Argument’ (OPCA)

    From time to time over the years, readers have commented that some of the stories published by the PP Blog read like fiction. Did AdSurfDaily Ponzi schemer Andy Bowdoin, for example, really compare the U.S. Secret Service to “Satan” and the 9/11 terrorists?

    The answer is yes. But if the answer weren’t disturbing enough, any number of Bowdoin’s apologists were more than pleased to help the recidivist con man spread his reality-distortion field on the Internet. By the time it was over, purported “sovereign citizen” Kenneth Wayne Leaming was filing false liens against a federal judge, three federal prosecutors and a Secret Service agent who’d had roles in the ASD case, according to the FBI.

    The Blog itself has pointed out that various “defenders” of various bizarre schemes have woven impossible tales — tales that wouldn’t sell as fiction because they require the suspension of too much disbelief.

    If you’re a reporter, you haven’t lived until you’ve been invited to a ribbon-cutting ceremony conducted by the nonexistent “prince” of a nonexistent undersea nation that purportedly sells driver’s licenses for $140.

    Never in human history has fractured thinking been packaged and sold at the scale provided by the Internet. Law enforcement and the courts are facing unprecedented challenges as various litigants and, in some cases, their customers, seek to undermine the authority of judges, prosecutors and police.

    In what the PP Blog believes to be one of the most important pieces of judicial reasoning published in 2012, an Alberta judge overseeing a divorce case and encountering bizarre posturing by one of the parties appears to have coined a new term: “Organized Pseudolegal Commercial Argument” or OPCA for short.

    Court of Queen’s Bench Associate Chief Justice John Rooke used the divorce case as a springboard to discuss some of the bizarre litigation now occurring in Canada and the United States — theories advanced by “sovereign citizens,” for instance. Highlighted below are snippets from the judge’s issuance of a “Reasons for the Decision.” (Bolding added by PP Blog.)

    “These Reasons in many instances identify reported caselaw that comments on OPCA litigants, OPCA gurus, and their misconduct. It should be understood that the reported caselaw is the proverbial tip of the iceberg. The vast majority of encounters between this Court and OPCA litigants are not reported.

    These litigants and their schemes have been encountered in almost all areas of law. They appear in chambers, in criminal proceedings, initiate civil litigation based on illusionary OPCA rights, attempt to evade court and state authority with procedural and defencebased schemes, and interfere with unrelated matters.

    OPCA strategies as brought before this Court have proven disruptive, inflict unnecessary expenses on other parties, and are ultimately harmful to the persons who appear in court and attempt to invoke these vexatious strategies. Because of the nonsense they argue, OPCA litigants are invariably unsuccessful and their positions dismissed, typically without written reasons. Nevertheless, their litigation abuse continues. The growing volume of this kind of vexatious litigation is a reason why these Reasons suggest a strong response to curb this misconduct.” Queen’s Bench Associate Chief Justice John Rooke, Sept. 18, 2012

    Did you know that American Uniform Commercial Code (UCC) schemes advanced by vexatious litigants have made their way into Canada?

    And did you know that some individuals advancing such schemes do not seem to understand they are quoting codes and law to Canadian judges that apply only in America?

    Not only do the codes and law not only not apply under Canadian law, they misinterpret the meaning and application of American law.

    But it gets stranger than that: Dennis Larry Meads is a party to the divorce case filed in Alberta and referenced above. To say the case has served up a symphony of the bizzare would be an understatement.

    Meads, for instance, allegedly has instructed Rooke “and the Bank of Canada to use a secret bank account, with the same number as his social insurance number or birth certificate, to pay all his child and spousal support obligations, and provide him $100 billion in precious metals. Mr. Meads has also purported to create various contractual obligations for those who might interact with him, or who write or speak his name.”

    The case has prompted Rooke to dissect some very strange events taking place in Canadian and U.S. courts.

    Theses cases, according to the judge, “often fall into the following descriptions: Detaxers; Freemen or Freemen-on-the-Land; Sovereign Men or Sovereign Citizens; Church of the Ecumenical Redemption International (CERI); Moorish Law; and other labels.”

    At one point in the divorce proceeding, Meads attempted to give an envelope to the judge, but the judge refused, explaining “I refused the envelope, and noted that if the envelope was abandoned then I would put those materials in the garbage. I reassured Mr. Meads that I will apply the laws of Alberta and Canada, and that while he is in Court, he will follow the Court’s rules.

    Mr. Meads’ reply was that was “unacceptable,” and he claimed that the “UCC” is “universal law,” according to the judge.

    As the proceeding continued, according to the judge, Meads accused the court of “enticing me into slavery.”

    Meads went on to insist that “the Bible is the ‘Maximus of Law’” before leaving the courtroom.

    Read the judge’s reasoning and dissection of strange courtroom events in multiple cases.

  • DEVELOPING STORY: Pittsburgh Police On Scene Of Possible Hostage Situation At CW Breitsman Associates LLC, Firm That Administers Insurance And Benefits Plans [UPDATE: Suspect in Custody]

    UPDATED 2:38 P.M. EDT (U.S.A.) Klein Michael Thaxton now is in police custody, CBS News is reporting. Below, our earlier brief . . .

    ** ______ **

    Pittsburgh police, including a SWAT team, are at the scene of a possible hostage situation inside the 16th-floor offices of CW Breitsman Associates LLC, a third-party administrator of insurance and pension benefits.

    With the FBI also reportedly at the scene, police are said to be negotiating with the alleged hostage-taker. The individual’s motivations were unclear.

    Pittsburgh Police Chief Nate Harper identified the man as Klein Michael Thaxton, the Pittsbugh Post-Gazette is reporting.

     

  • BULLETIN: Purported ‘Sovereign Citizen’ Tim Turner Of Purported ‘Republic for the united States of America’ Charged In Alleged ‘Seminar’ Scam In Which He Taught Attendees How To File Bogus Liens Against Public Officials; Tax Crimes Also Charged, Justice Department Says

    “Turner is alleged to have attempted to pay his own taxes with a fictitious $300 million bond and to have assisted others in attempting to pay their taxes with fictitious bonds purporting to be worth amounts ranging from $10 million to $100 billion.”U.S. Department of Justice, Sept. 18, 2012

    BULLETIN: James Timothy Turner, a purported “sovereign citizen” who claims to be “President” of the “Republic for the united States of America,” has been indicted by an Alabama grand jury on charges of conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the Internal Revenue Service, failing to file a 2009 federal income tax return and falsely testifying under oath in a bankruptcy proceeding, the Justice Department announced.

    Among the allegations against Turner is that he “conducted seminars at which he taught attendees how to file retaliatory liens against government officials and to defraud the IRS by preparing and submitting fictitious bonds to the United States government in payment of federal taxes,” the Justice Department said.

    “Turner is alleged to have attempted to pay his own taxes with a fictitious $300 million bond and to have assisted others in attempting to pay their taxes with fictitious bonds purporting to be worth amounts ranging from $10 million to $100 billion,” the Justice Department said.

    The IRS and the FBI led the probe, the Justice Department said.

    So-called “sovereign citizens” may have an irrational belief that laws do not apply to them.

    Purported “sovereign citizen” Kenneth Wayne Leaming — a mainstay in the AdSurfDaily Ponzi scheme story — was arrested by the FBI last year on charges he filed bogus liens against at least five public officials involved in the ASD case, including a federal judge, three federal prosecutors and a special agent of the U.S. Secret Service.

    He also is accused of uttering a bogus “bonded promissory note,” concealing fugitives wanted in a home-business caper and being a felon in possession of firearms.

    Leaming also has sought to sue President Obama and U.S. Attorney General Eric Holder on a theory they are imposters in office. In June, Leaming, 56, sought to sue a county sheriff in Arkansas, demanding purported damages be paid in gold and silver.

    In August, purported “sovereign citizen” Michael Chung, 52, was arrested in New York on charges that he threatened to kill two bank employees.