Nov 29, 2006 | currency, legal
US District Court for the District of Columbia Judge James Robertson has ruled that the Department of the Treasury is violating Section 504 of the Rehabilitation Act by not designing currency so that it is distinguishable to the visually impaired. In a suit filed by the American Council of the Blind (ACB), Judge Robertson wrote, “It can no longer be successfully argued that a blind person has ‘meaningful access’ to currency if she cannot accurately identify paper money without assistance.”
US currency has been undergoing gradual changes since 1996 to add security features to fight counterfeiters. In the last few years, new notes have included splashes of color to further thwart the new imaging equipment that can create convincing copies of US currency. The next change will come in 2008 with a change to the $5 note.
During this time, no effort was made to provide features that could be used by the visually impaired to distinguish between the different denominations. This prompted the lawsuit from the ACB. In the ruling, Judge Robertson wrote that the ACB proposed several possible changes to including “dimensions varied by denomination, embossed dots, foil, micro-perforations, and raised intaglio printing.”
“Of the more than 180 countries that issue paper currency, only the United States prints bills that are identical in size and color in all their denominations,” Judge Robertson wrote. “More than 100 of the other issuers vary their bills in size according to denomination, and every other issuer includes at least some features that help the visually impaired.”
Judge Robertson noted that the cost to make the changes to the printing process would require less than 5-percent of the expenses generated by the Bureau of Engraving and Printing during the last ten years.
Treasury Department has 30 days to submit a plan to comply with the order.
There has been no comment from the Department of the Treasury. Stay tuned!
Nov 22, 2006 | coins, legal
This past Monday, Tom Noe was sentenced to 18 years in an Ohio state prison for his conviction on 29 various counts of theft, corrupt activity, money laundering, forging records, and tampering with documents in his management of the Ohio Bureau of Worker’s Compensation (BWC) $50 rare coin fund. Noe was fined $213,000 and order to pay the estimated $3 million cost of his prosecution. He is also required to reimburse the money he stole from the BWC, which is estimated at $13.7 million.
Noe will begin to serve his sentence after serving a 27-month federal sentence for felony campaign finance violations. Noe was free on $500,000 bond during the state trial.
Nov 14, 2006 | coins, legal
Tom Noe was found guilty of engaging in a pattern of corruption in his mis-management of the Ohio Bureau of Worker’s Compensation (BWC) $50 million rare coin collection. Noe was found guilty of 29 of 40 charges including theft, corrupt activity, money laundering, forging records, and tampering with documents. The corruption conviction carries a minimum sentence of 10 years. Noe could receive a maximum sentence of 72 years on all convicted counts. Sentencing will be on November 20.
In September, Noe pleaded guilty to three counts of campaign finance violations and was sentenced to 27 months in prison. Noe was freed on $500,000 bail during this trial.
Oct 20, 2006 | coins, legal
Tuesday, the trial of Tom Noe, the indicted coin dealer who was charged with 44 felony counts for allegedly bilking the Ohio Bureau of Worker’s Compensation (BWC), began last Tuesday with opening statements and prosecution testimony. Prosecution opened with Noe’s former cataloger talking about the coins and the free flow of money. Testimony was followed by an appraiser from Southeby’s who said that he was surprised to find “millions of dollars” collectible Americana which was said to have been bought with proceeds from coin sales.
Last month, Noe pleaded guilty to three counts of campaign finance violations and was sentenced to 27 months in prison. Noe remains free on $500,000 bail during this trial.
Readers can follow the story at the Toledo Blade. Unless something extrordinary happens, I will report on the verdict when it is handed down.
Oct 9, 2006 | coins, foreign, legal
A friend sent an article from Canadian Broadcast Company website entitled RCMP find fake coin factory near Montreal. The story claims that the Royal Canadian Mounted Police and Quebec Police “have broken up a highly sophisticated counterfeit ring that was manufacturing fake loonies and toonies”
For those who do not collect or use Canadian money, loonie; is the nickname of the Canadian one dollar coin. The name was adopted because the reverse of the coin has an image of the common loon. The toonie is the nickname of the Canadian two dollar coin as being worth “two loonies.”
The RCMP said that this is the first time that they have seen a counterfeit coin ring in Canada and worry about the number of coins that have been placed in circulation. It is being reported that the quality of the coins are so good that it may be difficult for the ordinary consumer to tell the difference between the real and fake coins.
It would be interesting to have a copy of these coins as a collectible. If you have one of these loonies or toonies, and can verify that they are counterfeit, I will pay US$10 (total, plus postage) for one of each of the fake coins plus a real 2006 loonie and toonie. Package them as tokens and numismatic collectible that are not to be used as currency to satisfy customs requirements. Contact me to make arrangements.
Sep 15, 2006 | coins, legal, US Mint
The US Mint issued a press release warning consumers that the Liberty Dollar medallions, marketed by the National Organization for the Repeal of the Federal Reserve Act and the Internal Revenue Code (NORFED) “are not genuine United States Mint bullion coins, and not legal tender.” Consumers are warned that the Justice Department has determined that the use of these “medallions as circulating money is a Federal crime.”
NORFED is marketing these medallions as “Real Money” and that the associated notes are “America’s Inflation Proof Currency™.” Their web site even has links to reproduced articles that says the government claims that it is legal. Aside from not being able to verify the source of the articles from on-line resources, both articles say that these items are NOT legal tender and are legal.
As the Mint points out, these are medallions that are made to look like genuine US coins and currency. Devices like “USA” instead of spelling out “United States of America” and “Trust In God” rather than the legally required “In God We Trust” can make this confusing to an ordinary citizen.
NORFED is yet another scheme to capitalize on the “our money is not real money” because it lacks precious metals and that the US Constitution defines money in those terms. The fallacy of the arguement is that when the constitution was written, the price of precious metals were fixed by governments and varied based on a number of other economic factors. Today, the prices fluctuate based on market conditions. Therefore, when silver jumped to $15 per ounce, the $10 silver medallion would have 33-percent less buying power than $15 United States dollars. This is the consequence of a market-based economy.
A point made on the site is that private transaction can be bartered using anything of value to both parties. While this is true, if a business wants to do any business within the United States, the Uniform Commercial Code requires all negotiable instruments (represtatives of money) to be backed by legal tender. In other words, it is not legal to write a check or other promisory note using Liberty Dollars as its backing.
NORFED is a commercial (for-profit) venture started by Bernard von NotHaus who was the superintendent of the Royal Hawaiian Mint, a private mint located in Honolulu (the mint has no connection with the Hawaiian government). NORFED makes no guarantee that their Liberty Dollars would be widely accepted or be converted into United States currency. To further the illusion of hypocracy, it is reported that von NotHaus submited the design of the Liberty Dollar to the US Mint as a design for the Golden Dollar coin. This reminds me of the Flat Earth Society an organization formed in the sixtheenth century that continues to try to convince us that the world is flat.
Sep 13, 2006 | coins, legal
Tom Noe, the indicted coin dealer who was charged with allegedly bilking the Ohio Bureau of Worker’s Compensation (BWC), was sentenced to 27 months in jail. This sentence was handed down in federal court for his guilty plea to three counts of federal campaign finance violations. Noe was charged with using friends and associates to funnel $45,400 to President Bush’s re-election campaign. Noe will have to pay $136,000 in fines in addition to his jail sentence.
Noe will remain free on bond until his trial for 46 felony counts from Ohio for allegedly stealing over $50 million from the Ohio BWC rare coin fund. His case is scheduled for trial next month.
Mar 5, 2006 | coins, legal
One of the biggest stories in the numismatic industry is the alleged mismanagement of the Capital Coin Fund by former dealer Tom Noe. The Capital Coin Fund was created to be an investment vehicle for the Ohio Bureau of Workers’ Compensation (BWC). It has been reported that Noe has been charged with 53 felony counts including “a pattern of corrupt activity under the Racketeer Influence Corruption Organization (RICO) Act” which carries a possible prison sentence of up to 175 years.
On February 22, 2006, a press release issued by Ohio Attorney General Jim Petro announced that the BWC will sell 100 coins to recoup some of the original $50 million investment. The sales is expected to bring in $7.5 million, which is reported to be a $1 million profit. Spectrum Numismatics International, Inc. is guaranteeing the $7.5 million.
It is being reported that there will be 3,400 items sold in 100 lots via a mail bid sale. Most coins have been certified NGC and PGCS. In-person viewing is scheduled for Tuesday, March 21 in Columbus, Ohio. The auction closes at 5:00 PM on Wednesday, March 29. To get more information about this auction, visit www.frostbrowntodd.com/coins. Good luck to all bidders!
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