Bond promissory notes make the news

[fortinbras]

Another article about this guy:

Man who says he has own court and own bank gets five years
By SARA SHEPHERD and MARK MORRIS
The Kansas City Star

Kansas City man who claims to have his own court and his own bank has learned — again — that he couldn’t have his way in a real courtroom.

A Jackson County judge Wednesday revoked the probation of anti-government activist Denny R. Hardin and sent him to prison for five years. It was for Hardin violating a condition of his probation stating he must not make any court filings or appearances on behalf of anyone other than himself.

Though not an attorney, Hardin acted as his own lawyer Wednesday. He had been on probation since 2006, when a jury found him guilty of tampering with judicial proceedings. He wore blue jeans and a T-shirt printed with “Americans Republic Party” and “Don’t Tread on Me.” More than a dozen supporters wore the same shirt to the trial.

Hardin told Judge Stephen Nixon his overarching argument since 1991 has been the same. Hardin claims the judicial branch has been overthrown by “foreign agents” who are attempting to deny him the right to practice law.

“They don’t want me in their courts because I speak truth ... and know the constitutional law better than they do,” Hardin said. “I contend that this is a conspiracy against me.”

The judge reminded Hardin to focus on the task at hand, his alleged probation violations.

The first 45 minutes of the hearing were constantly interrupted by objections from Hardin. As the prosecuting attorney presented evidence and questioned witnesses, Hardin continued to object, at times once or more per sentence.

Among other things, Hardin said he signed his probation conditions “U.D.” — or under duress — and so the document should be thrown out.

During the hearing, Hardin told the court he had opened the Bank of Denny R. Hardin last year and that he issues bonded promissory notes.

Hardin’s activism began in 1991, after law enforcement agents seized his girlfriend’s beloved 1977 Corvette, which they called “Betsy.” Authorities claimed a drug deal went down inside the car and seized it under Missouri’s Criminal Activity Forfeiture Act, but the couple disagreed and went to court to get it back. They didn’t have enough money for a lawyer, so Hardin vowed to handle the case himself. They didn’t get the car back.

On Wednesday, Hardin acknowledged that he had prepared legal documents for another person and that they were filed in other county courts. But he said since they weren’t filed by his own hand, they shouldn’t count. Hardin’s witness, his daughter Christina Hardin, acknowledged under cross examination that she had filed documents on his behalf.

Hardin can appeal the judge’s ruling regarding his probation violation, and plans to do so. “I understand your rules,” Hardin told the judge when asked if the appeals procedure was clear. “They are a violation of law.”

Hardin was taken into custody immediately following the ruling. As deputies led him out, Hardin looked at attendees in the gallery and said:

“God’s will be done, people. Now I get to write that letter to the president of the United States from the Jackson County Jail.”

To reach Sara Shepherd, call 816-234-4366 or send e-mail to sshepherd@kcstar.com.

Posted on Wed, Aug. 12, 2009 10:39 PM

[David Merrill]

I apologize for the formatting. I cannot attach this .doc file here. Maybe Wesley will pick it up for you in his photo bucket?

U.S. District Court
Eastern District of Missouri (LIVE) (St. Louis)
CIVIL DOCKET FOR CASE #: 4:07-mc-00583-JCH
United States of America v. McDowellAssigned to: Honorable Jean C. Hamilton Date Filed: 11/26/2007Date Terminated: 11/26/2007
Petitioner
United States of America represented by Nicholas P. Llewellyn OFFICE OF U.S. ATTORNEY 111 S. Tenth Street 20th Floor St. Louis , MO 63102 314-539-2200 Fax: 314-539-2777 Email: nicholas.llewellyn@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICEDWesley D. Wedemeyer OFFICE OF U.S. ATTORNEY 111 S. Tenth Street 20th Floor St. Louis , MO 63102 314-539-2200 Fax: 314-539-2777 Email: wesley.wedemeyer@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED

V.
Respondent
Donald McDowell represented by Donald McDowell c/o 5089 Flat River Road Farmington, MO 63640 573-576-7227 PRO SE


Date Filed # Docket Text
11/26/2007 1 PETITION to Enforce IRS Summons, filed by United States of America. (Attachments: # 1 Exhibit 1, # 2 Exhibit 2, # 3 Judge Label)(SAJ) (Entered: 11/28/2007)
11/26/2007 Miscellaneous Case filed by United States of America.(SAJ) (Entered: 11/28/2007)
11/27/2007 2 ORDER TO SHOW CAUSE IT IS HEREBY ORDERED that Donald McDowell, (respondent) appear before the United States Court of the Eastern District of Missouri, before the undersigned, in Courtroom No. 16N, in the Thomas F. Eagleton U.S. Courthouse, 111 South 10th Street, St. Louis, Missouri 63102, on December 11, 2007 at 12:30 PM, to show cause why he should not be compelled to obey the Internal Revenue Service summons served upon him on August 24, 2007. IT IS FURTHER ORDERED that a copy of this Order, together with the Petition and Exhibits attached thereto, be personally served upon Donald McDowell on or before December 4, 2007. IT IS FURTHER ORDERED that within 5 days of service of copies of this Order, the Petition and Exhibits thereto, the respondent shall file and serve on petitioner a written response to the Petition. IT IS FURTHER ORDERED that Revenue Officer James Norrenberns, or his delegate is especially appointed to serve a copy of this Order, and its Petition and Exhibits attached thereto upon the respondent.Dated at St. Louis, Missouri, this 27th day of November, 2007. Signed by Honorable Jean C. Hamilton.(SAJ) (Entered: 11/28/2007)
12/10/2007 3 MOTION to Continue Hearing by Petitioner United States of America. (Wedemeyer, Wesley) (Entered: 12/10/2007)
12/11/2007 Docket Text ORDER: Re: 3 MOTION to Continue Hearing by Petitioner United States of America. (Wedemeyer, Wesley) filed by United States of America ; CAUSE CONTINUED TO 1/11/08 AT 9:00 A.M. Signed by Honorable Jean C. Hamilton on 12/11/07. (CLA) (Entered: 12/11/2007)
12/11/2007 ***REMARK Doc. text order of 12/11/07 copy mailed to deft. (CLA) (Entered: 12/11/2007)
01/09/2008 4 SUMMONS Returned Executed filed by United States of America. Donald McDowell served on 12/4/2007, answer due 12/24/2007. (Wedemeyer, Wesley) (Entered: 01/09/2008)
01/11/2008 5 ORDER re 1 ORDERED that Petitioners Petition to Enforce Internal Revenue Service Summons (Doc. No. 1) is GRANTED. IT IS FURTHER ORDERED that Respondents Motion to Vacate and Dismiss is DENIED. IT IS FURTHER ORDERED that Respondent shall comply with all the requirements listed in the Internal Revenue Service Summons1. He is required to produce the requested documentation to Revenue Officer Norrenberns at such time and place as may be fixed by Revenue Officer Norrenberns. Respondent must comply with this Order no later than Tuesday, February 19, 2008. Failure to do so will result in Respondent being held in contempt of Court.. cc: deft. Signed by Honorable Jean C. Hamilton on 1/11/08. (CEL) (Entered: 01/11/2008)
01/11/2008 6 Minute Entry for proceedings held before Honorable Jean C. Hamilton: In Court Hearing held on 1/11/2008. Parties present for hearing on enforcement of IRS summons. Deft. filed motion to vacate. Testimony heard. Govt's petition - Granted (JCH). Order to be prepared by govt's counsel. (Court Reporter or FTR Gold Operator initials:D. Kriegshauser.) (FTR Gold yes or no: no.) (CEL) (Entered: 01/14/2008)
01/11/2008 7 MOTION to Vacate Show Cause Order and dismiss the petition re: 1 Petition to Enforce IRS Summons, 2 Order to Show Cause, by Respondent Donald McDowell. (CEL) (Entered: 01/14/2008)
05/21/2008 8 MOTION for Contempt by Petitioner United States of America. (Attachments: # 1 Exhibit 3, # 2 Exhibit 4, # 3 Exhibit 5, # 4 Exhibit 6)(Llewellyn, Nicholas) (Entered: 05/21/2008)
05/22/2008 9 ORDER:RE 8 ORDERED that a hearing on Petitioner's Motion for Contempt (Doc. No. will be held on Thursday, May 29, 2008 at 10:30 a.m. in the courtroom of the undersigned. Respondent's failure to attend such hearing will result in his being held in contempt of Court. Motion Hearing set for 5/29/2008 10:30 AM in Courtroom 16N before Honorable Jean C. Hamilton. cc: deft. Signed by Honorable Jean C. Hamilton on 5/22/-8. (CEL) (Entered: 05/22/2008)
05/29/2008 10 ORDER RE: 8 ORDERED that Respondent is found in Civil Contempt for repeatedfailures to comply with this Court's Orders. IT IS FURTHER ORDERED that Donald McDowell shall produce the required tax information to the United States immediately. FURTHER ORDERED that Donald McDowell shall be sanctioned with a monetary fine of $300.00 per day, from and including the date of this Order until such date he produces all of the required tax information to the United States. IT IS FURTHER ORDERED that a Status Hearing on this matter is set for Friday, June 6, 2008 at 11:30 a.m. in the courtroom of the undersigned. All parties must appear in person. In Court Hearing set for 6/6/2008 11:30 AM in Courtroom 16N before Honorable Jean C. Hamilton. Signed by Honorable Jean C. Hamilton on 5/29/08. (CEL) (Entered: 05/29/2008)
05/29/2008 ORDER RECEIPT: (see receipt) Thu May 29 15:40:40 CDT 2008 (Lippold, Carrie) (Entered: 05/29/2008)
05/29/2008 11 Minute Entry for proceedings held before Honorable Jean C. Hamilton: In Court Hearing held on 5/29/2008. Arguments heard. Testimony heard. Ct. finds deft in contempt. Court to impose find of $300.00 per day until summons complied with. Govt to submit proposed order. Parties to appear 6/6/08 at 11:30 for status. (Court Reporter or FTR Gold Operator initials:D. Kriegshauser.) (FTR Gold yes or no: no.) (CEL) (Entered: 06/02/2008)
06/06/2008 12 Minute Entry for proceedings held before Honorable Jean C. Hamilton: Status/Contempt Conference held on 6/6/2008. Issues discussed; Parties to continue resolving issues; Status Hearing set for 6/13/08 at 11:00 AM; Gvt Exh 8 Admitted; Exh returned to and maintained by counsel. (Court Reporter or FTR Gold Operator initials:G. Madden.) (FTR Gold yes or no: NO.) (MJM) (Entered: 06/06/2008)
06/11/2008 Docket Text ORDER: STATUS CONFERENCE RESET TO FRIDAY, JUNE 13, 2008 AT 2 P.M. Signed by Honorable Jean C. Hamilton on 6/11/08. (CLA) cc: Donald McDowell (Entered: 06/11/2008)
06/13/2008 13 Minute Entry for proceedings held before Honorable Jean C. Hamilton: Contempt Hearing held on 6/13/2008. Parties present for Contempt Hearing. Testimony heard regarding status of producing tax records. Government moves for Defendant to be detained pending release of records and to continue fine per day until records produced. Court orders Defendant remanded until records produced. (Court Reporter or FTR Gold Operator initials:G. Madden.) (FTR Gold yes or no: No.) (TRC) (Entered: 06/13/2008)
06/13/2008 14 ORDER: IT IS HEREBY ORDERED that Respondent Donald McDowell continues to be in Civil Contempt for repeated failures to comply with this Court's Orders. IT IS FURTHER ORDERED that Respondent Donald McDowell shall produce the required tax information to the United States immediately. IT IS FURTHER ORDERED that Respondent Donald McDowell shall continue to be sanctioned with a monetary fine of $300.00 per day, from and including May 29, 2008 until such date he produces all of the required tax information to the United States. IT IS FURTHER ORDERED that Respondent Donald McDowell be remanded to the custody of the United States Marshals Service for detention at an appropriate facility to be determined by the United States Marshals Service until such time Respondent McDowell complies with the Court's Orders in this matter and produces all of the required tax information to the United States. IT IS FURTHER ORDERED that the United States shall promptly notify this Court upon receipt of the required tax information so that this Court can consider the issue of Respondent's continued detention, as well as the continued accrual of monetary sanction. IT IS FURTHER ORDERED that a Status Hearing on this matter is set for Monday, June 30, 2008 at 9:30 am in the courtroom of the undersigned. All parties must appear in person. Status Conference set for 6/30/2008 09:30 AM in Courtroom 16N before Honorable Jean C. Hamilton.. Signed by Honorable Jean C. Hamilton on 6/13/08. (cc: USM w/ 3 copies) (TRC) (Entered: 06/13/2008)
06/13/2008 ORDER RECEIPT: (see receipt) Fri Jun 13 16:19:30 CDT 2008 (Christopher, Timothy) (Entered: 06/13/2008)
06/30/2008 15 Minute Entry for proceedings held before Honorable Jean C. Hamilton: Contempt Hearing held on 6/30/2008. Issues heard/discussed. Gvt request $10,000 BOND in addition to continuing the daily fine of $300 per day. Respondent McDowell to be RELEASED from custody today per JCH. Gvt request taken under submission. Fine of $300 per day to remain in effect. Matter set on the docket for 8/1/08 @11:00 AM. ( Contempt Hearing set for 8/1/2008 11:00 AM in Courtroom 16N before Honorable Jean C. Hamilton.). (Court Reporter or FTR Gold Operator initials:G. Madden.) (FTR Gold yes or no: NO.) (MJM) (Entered: 06/30/2008)
07/15/2008 16 STATUS REPORT Motion for Entry of Final Judgment by United States of America. (Llewellyn, Nicholas) **Document to be Re-filed by Court as Motion. [See Doc. # 17]** (Entered: 07/15/2008)
07/15/2008 17 MOTION for Entry of Final Judgment by Petitioner United States of America. (MJM) (Entered: 07/16/2008)
07/28/2008 18 MEMORANDUM AND ORDER: IT IS HEREBY ORDERED that Petitioner's Motion for Final Judgment is GRANTED. Respondent shall pay Petitioner $14,100.00 which is immediately due upon entry of judgment by this Court. IT IS FURTHER ORDERED that this action is DISMISSED with prejudice. Signed by Honorable Jean C. Hamilton on 7/28/08. (TRC) (Entered: 07/28/2008)
07/28/2008 ORDER RECEIPT: (see receipt) Mon Jul 28 16:40:28 CDT 2008 (Christopher, Timothy) (Entered: 07/28/2008)
07/28/2008 19 JUDGMENT: IT IS HEREBY ORDERED, ADJUDGED, and DECREED that judgment is entered in Petitioner's favor in the amount of $14,100.00 immediately due and payable to the United States of America. IT IS FURTHER ORDERED, ADJUDGED, and DECREED that this action is DISMISSED with prejudice. Signed by Honorable Jean C. Hamilton on 07/28/08. (TRC) (Entered: 07/28/2008)
07/28/2008 ORDER RECEIPT: (see receipt) Mon Jul 28 16:44:41 CDT 2008 (Christopher, Timothy) (Entered: 07/28/2008)
11/04/2008 21 MEMORANDUM/NOTICE Of Payment In Full re 19 Judgment by Respondent Donald McDowell. CC: Finance and US Atty (MJM) (Entered: 11/04/2008)
02/24/2009 ***REMARK: Document #20 filed in the wrong case. Document #20 deleted. There will not be a document #20 in this case. (TRC) (Entered: 02/24/2009)


PACER Service Center
Transaction Receipt


07/16/2009 16:05:05
PACER Login: ro1498 Client Code:
Description: Docket Report Search Criteria: 4:07-mc-00583-JCH
Billable Pages: 3 Cost: 0.24

[Judge Roy Bean]

All that time behind bars for what was originally less than $15K?

[David Merrill]

The total was paid in full with a bonded promissory note.

[Prof]

The total was paid in full with a bonded promissory note.

This statement is simply untrue.

Here is the last portion of the docket in this closed case:

06/13/2008 ORDER RECEIPT: (see receipt) Fri Jun 13 16:19:30 CDT 2008 (Christopher, Timothy) (Entered: 06/13/2008)
06/30/2008 15 Minute Entry for proceedings held before Honorable Jean C. Hamilton: Contempt Hearing held on 6/30/2008. Issues heard/discussed. Gvt request $10,000 BOND in addition to continuing the daily fine of $300 per day. Respondent McDowell to be RELEASED from custody today per JCH. Gvt request taken under submission. Fine of $300 per day to remain in effect. Matter set on the docket for 8/1/08 @11:00 AM. ( Contempt Hearing set for 8/1/2008 11:00 AM in Courtroom 16N before Honorable Jean C. Hamilton.). (Court Reporter or FTR Gold Operator initials:G. Madden.) (FTR Gold yes or no: NO.) (MJM) (Entered: 06/30/2008)
07/15/2008 16 STATUS REPORT Motion for Entry of Final Judgment by United States of America. (Llewellyn, Nicholas) **Document to be Re-filed by Court as Motion. [See Doc. # 17]** (Entered: 07/15/2008)
07/15/2008 17 MOTION for Entry of Final Judgment by Petitioner United States of America. (MJM) (Entered: 07/16/2008)
07/28/2008 18 MEMORANDUM AND ORDER: IT IS HEREBY ORDERED that Petitioner's Motion for Final Judgment is GRANTED. Respondent shall pay Petitioner $14,100.00 which is immediately due upon entry of judgment by this Court. IT IS FURTHER ORDERED that this action is DISMISSED with prejudice. Signed by Honorable Jean C. Hamilton on 7/28/08. (TRC) (Entered: 07/28/2008)
07/28/2008 ORDER RECEIPT: (see receipt) Mon Jul 28 16:40:28 CDT 2008 (Christopher, Timothy) (Entered: 07/28/2008)
07/28/2008 19 JUDGMENT: IT IS HEREBY ORDERED, ADJUDGED, and DECREED that judgment is entered in Petitioner's favor in the amount of $14,100.00 immediately due and payable to the United States of America. IT IS FURTHER ORDERED, ADJUDGED, and DECREED that this action is DISMISSED with prejudice. Signed by Honorable Jean C. Hamilton on 07/28/08. (TRC) (Entered: 07/28/2008)
07/28/2008 ORDER RECEIPT: (see receipt) Mon Jul 28 16:44:41 CDT 2008 (Christopher, Timothy) (Entered: 07/28/2008)
11/04/2008 21 MEMORANDUM/NOTICE Of Payment In Full re 19 Judgment by Respondent Donald McDowell. CC: Finance and US Atty (MJM) (Entered: 11/04/2008)
02/24/2009 ***REMARK: Document #20 filed in the wrong case. Document #20 deleted. There will not be a document #20 in this case. (TRC) (Entered: 02/24/2009)
12/07/2009 22 Letter to Court from Kennedy M. Russell, Sr. re: Bonded Promissory

Note that docket entry no. 21 purports to be a "MEMORANDUM/NOTICE Of Payment in Full" of the Judgment.

Then, docket entry #22 is a "Letter to Court."

No. 21 is a "Bonded Promissory Note" issued by one Kennedy Mike: Russell in purported full payment of the judgment.

It is full of the usual sovereign BS, including a very official looking document.

No. 22, which DVMP fails to reference, is a letter from no-longer-full colon Kennedy M. Russell withdrawing the alleged BPN.

In part, the letter, addressed to the trial judge, states:

"I at this time want to inform you that I now, with your permission, withdraw this Bonded Promissory Note. I want to inform you that after signing this BPN, it hs come to my knowledge that this Bonded Promissory Note was and is invalid.

I herewith want to tell you that I do apologize to you for any inconvenience I may have caused you by my participation in your having received this invalid Bonded Promissory Note."

The letter is dated December 4, 2009.

Russell is still infatuated with the cool-aid; the letter is captioned as follows: "Kennedy M. Russel, Sr., c/o 903 Reiss Road, O'Fallon, Illionois (62269)" -- I suppose the c/o address and the ZIP in parentheses both mean something special.

[Nikki]

A typical David Merrill stunt:

Post the (usually redacted to prevent any possible verification or follow-up) first steps of a transaction which seems to show the total success of one of his inane theories, but omit the follow-up showing the ultimate failure.

In this case, he got sloppy. He posted sufficient information for someone to check his claim and demonstrate that it was totally bogus.

[Judge Roy Bean]

But other than here on Quatloos, who will know?

That's the beauty of being a hit-and-run gibberish promoter.

[Prof]

I did a little research today at lunch and found "the rest of the story" (as Paul Harvey would say):

Self-issued notes defy common sense, no good for debts
By Robert Patrick
ST. LOUIS POST-DISPATCH
12/10/2009

ST. LOUIS — It would seem to be the ultimate debt reduction plan: Create your own official-looking document, add some mumbo-jumbo legal language and mail it instead of a check with your payment coupon.

People are not only doing it but paying in real currency for advice on how, according to federal officials here and elsewhere who say it's not only a scam but a form of attack on the government.

Whether the documents at issue are called "bond promissory notes" or "private offset bonds" or something else, they are really a worthless exercise that defies common sense but nonetheless seems to be growing in prevalence.

The people who try to use them are either desperately in debt or engaged in anti-establishment "paper terrorism," said Special Agent Joe Jackson of the Treasury Department's inspector general's office in St. Louis.

"Nationwide, it's something that's growing," he said.

Jackson said that St. Louis area bankers tell him they have received such notes offered as payment for car loans, mortgages and credit card debt, and in each case explained to issuers that the documents are no good.

"In every instance that we're aware of in law enforcement, it's not being (honored)," Jackson said.

He said that a man from O'Fallon, Ill., tried it 60 or 70 times before making a big mistake — filing a bond promissory note in U.S. District Court in St. Louis to pay someone else's $14,100 federal tax lien.

In doing it, Kennedy M. Russell even acknowledged in a note to U.S. District Jean Hamilton that, "Your clerks may not be familiar with these type of instruments and do not know how to handle them." Russell wrote that the note should be presented to the Federal Reserve Bank of Chicago for payment.

Both the note and the letter are peppered with what officials say is coded language to assert his independence from the government and protect him from repercussions.

It didn't.

Russell, 71, admitted last week that the note was bogus and pleaded guilty to a misdemeanor financial violation charge in federal court. His apology letter, retracting the promissory note, was filed in the tax case Monday.Jackson said some of these people are victims of wishful thinking or misplaced hope. "People want to believe. You've got a lot of people in economic despair," he explained.

Others simply want to strike a blow against the government or taxes by forcing federal officials to spend money dealing with the scheme, Jackson said. "That's, in essence, what paper terrorism is."

The notes first appeared at the Internal Revenue Service in 2008 as attempted payment of taxes owed, a federal prosecutor said in a speech last year.

Only a few prosecutions have resulted across the country so far, according to news reports.

At the top of the scam, Jackson said, are promoters who charge money to teach the bogus methods in seminars. The fee is often $100 or more, according to websites.

Jackson said those promoters are the investigators' ultimate targets, although he declined to name any.

One of those targets lashed back, saying he would use his own authority to sue or fine Jackson simply for asking about the notes, he said.

The Shadow Mountain Bank, which offered a seminar this month in Nevada, offers to pay off debt for $100 per $100,000 owed. It does not accept bond promissory notes from its own customers, however — only cash or a money order. Bank representatives did not respond to an e-mail seeking comment.

The IRS says scam promoters claim in their seminars that a secret bank account, sometimes called a "straw man" account, was created at the Treasury Department for each U.S. citizen to use for tax and nontax debts. Supposedly, they can use bonded promissory notes as if they were checks.

"None of it really makes sense, but according to their conspiracy theory, it does," Jackson said.

One fan of the promissory notes, Denny Ray Hardin, of Kansas City, wrote on a website in June that he set up the "Private Bank of Denny Ray Hardin" last year "to help (people) remove their 'fictitious obligations' ... to 'foreign agents' who control most banks, mortgage companies and lending institutions. These are operated by the 'organized crime operation' commonly referred to as 'Credit.'"

Hardin's fiancée, Melinda Harrington, said in a telephone interview that Hardin had "quite a few successes" with his bond promissory notes, and that she knows other "private bankers" who have also had successes.

Hardin is currently in prison in Missouri for violating conditions of probation imposed after he was convicted of tampering with judicial proceedings.

Russell did not attend a seminar but learned the methods from those who did, Jackson said.

And at least two websites refer to Russell's apparent success in paying off the tax lien as proof that the scheme works.

Russell's lawyer, John Stobbs, said Russell filed most of his bond promissory notes on behalf of others.

"His involvement in this was extremely minor and limited. He was the low guy on the totem pole, and he was being used," Stobbs said.

Russell, a court stenographer, did not shed any debt in the tax lien case. To the contrary, he added debt: a $1,000 fine, three years of probation and 40 hours of community service each year.

I notice that DMVP has not commented on my research into his "success story." I wonder why?

[Dezcad]

Self-issued notes defy common sense, no good for debts
By Robert Patrick
ST. LOUIS POST-DISPATCH
12/10/2009


The Shadow Mountain Bank, which offered a seminar this month in Nevada, offers to pay off debt for $100 per $100,000 owed. It does not accept bond promissory notes from its own customers, however — only cash or a money order. Bank representatives did not respond to an e-mail seeking comment.

That is my favorite part.

[David Merrill]

I was busy. I will pass it on. Thank you for your research.

[Nikki]

I was busy. I will pass it on. Thank you for your research.

Actually, he 'passed it on' to Sooey as

It really should be noted that the fellow gave up on the note and that would incur some stiff punishment. Rather than to keep the note in the cognizance of the court and let the judge testify.

The fellow admitted it was tendered in bad faith apparently. And that was a confession. My point is that in a lot of similar experiences one would wait for the judge to make some kind of utterance about the validity of the bonded promissory note and the fellow saved the judge putting his testimony into the record.

David, you can't have it both ways. Your word salad doesn't alter the facts of the case and the docket.

Nice try, though.

[David Merrill]

The date on the docket in my computer is 10/3/09.

That explains it. The last filing on the docket is like I showed you, at that time. The fellow got frightened and tendered a confession to the court. Very likely he incurred a lesser sentence upon himself but it really proves nothing. Not like if he awaited charges and took it to trial. I am not in support of the bonded promissory notes but honestly thought that Doc 21 was he last entry into the case. It might have stayed that way if he would have pressed that he tendered the note in good faith.

That would be hindsight and speculation since he did not go that way.

I found the case useful because it is a US Government Plaintiff Miscellaneous Case filing for a writ of enforcement. It also supports Bob Shulz's appeal wherein:

In light of this, we view ourselves today as completing a task begun forty years ago and hold that, absent an effort to seek enforcement through a federal court, IRS summonses apply no force to taxpayers, and no consequence whatever can befall a taxpayer who refuses, ignores, or otherwise does not comply with an IRS summons until that summons is backed by a federal court order.

You can enjoy trying to guilt-trip me over it Nikki but you might consider the dates.


Regards,

David Merrill.

[David Merrill]

I was busy. I will pass it on. Thank you for your research.

Actually, he 'passed it on' to Sooey as

It really should be noted that the fellow gave up on the note and that would incur some stiff punishment. Rather than to keep the note in the cognizance of the court and let the judge testify.

The fellow admitted it was tendered in bad faith apparently. And that was a confession. My point is that in a lot of similar experiences one would wait for the judge to make some kind of utterance about the validity of the bonded promissory note and the fellow saved the judge putting his testimony into the record.

David, you can't have it both ways. Your word salad doesn't alter the facts of the case and the docket.

Nice try, though.

Actually Nikki;


That indicates that the US court was extremely reluctant to make an utterance against the Bonded Promissory Note.

07/28/2008 19 JUDGMENT: IT IS HEREBY ORDERED, ADJUDGED, and DECREED that judgment is entered in Petitioner's favor in the amount of $14,100.00 immediately due and payable to the United States of America. IT IS FURTHER ORDERED, ADJUDGED, and DECREED that this action is DISMISSED with prejudice. Signed by Honorable Jean C. Hamilton on 07/28/08. (TRC) (Entered: 07/28/2008)
07/28/2008 ORDER RECEIPT: (see receipt) Mon Jul 28 16:44:41 CDT 2008 (Christopher, Timothy) (Entered: 07/28/2008)
11/04/2008 21 MEMORANDUM/NOTICE Of Payment In Full re 19 Judgment by Respondent Donald McDowell. CC: Finance and US Atty (MJM) (Entered: 11/04/2008)
02/24/2009 ***REMARK: Document #20 filed in the wrong case. Document #20 deleted. There will not be a document #20 in this case. (TRC) (Entered: 02/24/2009)
12/07/2009 22 Letter to Court from Kennedy M. Russell, Sr. re: Bonded Promissory

It looks like it took over a year to coerce a confession out of this guy instead of re-opening the matter and summoning him in for a discussion why not hold him in contempt of court?

[David Merrill]

Does anybody have an explanation why the judge would be so quick to throw RUSSELL into jail for contempt but let that Payment in Full float for an entire year all silent like that?

[wserra]

Does anybody have an explanation why the judge would be so quick to throw RUSSELL into jail for contempt but let that Payment in Full float for an entire year all silent like that?

Sure. It's a docket entry. As folks here have been saying all along, it was actually doing nothing whatsoever. Moreover, Russell wasn't held in contempt, he wasn't "thrown in jail", and it wasn't "so quick". On September 24, 2009, Russell was indicted for various crimes related to false instruments. He was released on bond (a real one) on arraignment. On December 3, 2009, he pleaded guilty to a misdemeanor on a superseding information, and was sentenced to probation and a $1000 fine. Following that, he wrote the judge concerning the bogus "note" and the clerk docketed his letter.

Nothing in the least mysterious.

[David Merrill]

Then according to the docket; the USDC was paid in full and made no objection or response regarding the amount allegedly owed in the Summons case.

[wserra]

Then according to the docket; the USDC was paid in full and made no objection or response regarding the amount allegedly owed in the Summons case.

Only for a very expansive definition of "then".

Let me ask you something, David: You get a judgment against me. I file in the court docket a copy of Monopoly money totalling the amount of your judgment, sending the original Monopoly money to you. If you don't protest within a certain amount of time, are you "paid in full"?

[Prof]

Even DMVP should understand that the docket entrty purports to pay a debt; there is no docket entry reflecting acceptance of the tendered BPN. But, as Nikki says, it is a docket entry and nothing more.

As shown above, the docket entry states:

11/04/2008 21 MEMORANDUM/NOTICE Of Payment In Full re 19 Judgment by Respondent Donald McDowell. CC: Finance and US Atty (MJM) (Entered: 11/04/2008)

[David Merrill]

Yes indeed Prof;


So without being paid off, the court sat silent for a year. Instead of bringing RUSSELL in for contempt of court - not paying.

[Prof]

Yes indeed Prof;


So without being paid off, the court sat silent for a year. Instead of bringing RUSSELL in for contempt of court - not paying.

Russell was not in "contempt" of court, IMHO, although his attitude exhibited contempt for the rules of law and common sense. Russell presented a fraudulent payment (like a hot check) on behalf of the judgment debtor, McDowell (the taxpayer). He was then indicted and prosecuted and plead out. Note the offenses for which he was indicted, which are listed below:

U.S. District Court
Eastern District of Missouri (LIVE) (St. Louis)
CRIMINAL DOCKET FOR CASE #: 4:09-cr-00626-UNA All Defendants

Case title: USA v. Russell
Date Filed: 09/24/2009
Date Terminated: 12/03/2009

--------------------------------------------------------------------------------
Assigned to: Unassigned

Defendant (1)
Kennedy M. Russell
TERMINATED: 12/03/2009 represented by John D. Stobbs , II
STOBBS LAW OFFICES
307 Henry Street
Suite 211
Alton , IL 62002
618-462-8484
Fax: 618-462-8585
Email: stobbsjohn@hotmail.com
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Designation: Retained

Pending Counts
Disposition
BLACKMAIL
(1s) Defendant is sentenced to three years probation. Defendant is ordered to pay a $1000.00 find and a $50.00 special assessment fee due immediately.

Highest Offense Level (Opening)
Misdemeanor

Terminated Counts
Disposition
POSSESSION OF FALSE PAPERS TO DEFRAUD THE U.S.
(1r)
DEMANDS AGAINST THE U.S.GREATER THAN $100.00
(2r)
FALSE STATEMENT OR ENTRIES GENERALLY
(3r)

Highest Offense Level (Terminated)
Felony

Complaints
Disposition
None

--------------------------------------------------------------------------------

Plaintiff
USA represented by Thomas C. Albus
OFFICE OF U.S. ATTORNEY
111 S. Tenth Street
20th Floor
St. Louis , MO 63102
314-539-2200
Fax: 314-539-7695
Email: tom.albus@usdoj.gov
LEAD ATTORNEY
ATTORNEY TO BE NOTICED

Date Filed # Docket Text
09/24/2009 1 INDICTMENT returned in open court on 9/24/09 to Judge Jean C. Hamilton by the foreperson of the Grand Jury. Referred to Magistrate Judge Mummert as to Kennedy M. Russell (1) count(s) 1, 2, 3. (Attachments: # 1 Criminal Cover Sheet) (KLK) (Entered: 09/25/2009)
09/24/2009 2 REDACTED INDICTMENT returned in open court on 9/24/2009 to Judge Jean C. Hamilton by the foreperson of the Grand Jury. Referred to Magistrate Judge Mummert as to Kennedy M. Russell (1): Former count 1 is now count 1r. Former count 2 is now count 2r. Former count 3 is now count 3r. (KLK) (Entered: 09/25/2009)
09/24/2009 Warrant Issued as to indictment in case as to Kennedy M. Russell. (KLK) (Entered: 09/25/2009)
09/24/2009 3 ENTRY OF ATTORNEY APPEARANCE Thomas C. Albus appearing for USA. (KLK) (Entered: 09/25/2009)
09/24/2009 4 Order:...IT IS BY THE COURT ORDERED that said indictment shall be sealed and suppressed by the Clerk of the Court until said defendant is in custody or has given bail for the defendant's final appearance. Order as to Kennedy M. Russell. Signed by Honorable Jean C. Hamilton on 9/24/09. (KLK) (Entered: 09/25/2009)
09/25/2009 Pursuant to Local Rule 2.08, the assigned/referred magistrate judge is designated and authorized by the court to exercise full authority in this assigned/referred action or matter under 28 U.S.C. 636 and 18 U.S.C 3401. (CSAW) (Entered: 09/25/2009)
09/29/2009 5 LETTER LIFTING SUPPRESSION - Indictment/Superseding Indictment unsealed as to Kennedy M. Russell (SAJ) (Entered: 09/29/2009)
09/29/2009 Arrest of defendant Kennedy M. Russell. Date of arrest: 9/29/09. (RJD) (Entered: 09/29/2009)
09/29/2009 6 Minute Entry for proceedings held before Magistrate Judge Audrey G. Fleissig:Initial Appearance/Rule 5 as to Kennedy M. Russell held on 9/29/2009. Kennedy M. Russell (1) $10,000.00 (Unsecured). Defendant given copy of: Indictment. Defendant to retain: Bruce Carr. Pretrial Services bail report received on: 9/29/09. Pretrial Services Officer: Sheri Sterling. Arraignment set for 10/1/2009 at 9:00 AM in Courtroom 13N before Magistrate Judge Thomas C. Mummert III. (Court Reporter or FTR Gold Operator initials:C. Abrams.) (FTR Gold (yes or no): yes.) (proceedings started: 12:09 pm.) (proceedings ended: 12:26 pm.) (Defendant Location: bond.) (RJD) (Entered: 09/29/2009)
09/29/2009 7 Appearance Bond Entered as to defendant Kennedy M. Russell in amount of $ 10,000 unsecured. Signed by Magistrate Judge Audrey G. Fleissig on 9/29/09. (KLH) (Entered: 09/30/2009)
09/29/2009 8 ORDER Setting Conditions of Release as to Defendant Kennedy M. Russell (1). Signed by Magistrate Judge Audrey G. Fleissig on 9/29/09. (KLH) (Entered: 09/30/2009)
09/30/2009 9 ENTRY of Appearance by John Stobbs, II on behalf of Defendant Kennedy M. Russell. (Stobbs, John) Incorrectly filed as a motion, motion termed, text modified on 10/1/2009 (KLH). (Entered: 09/30/2009)
10/01/2009 10 ORDER CONCERNING PRETRIAL MOTIONS as to Kennedy M. Russell Forthwith each party may propound to opposing party and may file w/the court any request for pretrial disclosure of evidence or information not later than forthwith. The parties shall respond to any such request for pretrial disclosure not later than October 6, 2009. Counsel for defendant to file with the court a memorandum if defendant chooses not to file any pretrial motions not later than October 15, 2009. Criminal Pretrial Motion due by 10/15/2009. Government's Response due by October 16, 2009. Evidentiary Hearing set for 10/20/2009 10:30 AM in Courtroom 13N before Magistrate Judge Thomas C. Mummert III. Signed by Magistrate Judge Thomas C. Mummert, III on October 1, 2009. (MGK) (Entered: 10/01/2009)
10/01/2009 11 Minute Entry for proceedings held before Magistrate Judge Thomas C. Mummert, III:Arraignment: Parties present for arraignment. Defendant waives reading of indictment, plea of not guilty as to Kennedy M. Russell (1) Count 1r,2r,3r held on 10/1/2009 (Court Reporter or FTR Gold Operator initials:KLH.) (FTR Gold (yes or no): yes.) (proceedings started: 9:00.) (proceedings ended: 9:05.) (Defendant Location: Bond.) (MGK) (Entered: 10/01/2009)
10/14/2009 12 ORDER OF REASSIGNMENT in case as to Kennedy M. Russell Judge Honorable Henry E. Autrey and Magistrate Judge Thomas C. Mummert, III recused. Case reassigned to Judge Unassigned for all further proceedings. Pursuant to the autority vested in me, I do hereby designate and assign the Honorable Paul A. Magnuson, Senior Judge of the USDC, District of Minnesota, to hold court in the USDC, Eastern District of MO, in the matter of 4:09cr626 USA vs. Kennedy Russell. Judge Magnuson is authorized to travel to the Eastern District of MO as may be necessary to preside over this case and see it through to completion. Signed by Unassigned on 10/14/09. (CLA) (Entered: 10/14/2009)
10/16/2009 13 Warrant Returned Executed on 09/29/2009 in case as to Kennedy M. Russell re: Indictment (MGK) (Entered: 10/19/2009)
10/19/2009 14 ORDER as to Kennedy M. Russell This case has been reassigned to a District Judge from a district outside of the Eastern District of Missouri. The undersigned United States Magistrate Judge construes such assignment to vacate the referral to the undersigned. Therefore, the Evidentiary Hearing scheduled for October 20, 2009, at 10:30 is cancelled. Signed by Magistrate Judge Thomas C. Mummert, III on October 19, 2009. (MCB) (Entered: 10/19/2009)
11/04/2009 15 NOTICE OF PLEA HEARING as to Kennedy M. Russell -- Change of Plea Hearing set for 11/30/2009 11:30 AM before Judge Paul A. Magunson in Courtroom 17 South. (KCM) (Entered: 11/04/2009)
11/05/2009 16 AMENDED NOTICE OF PLEA HEARING as to Kennedy M. Russell -- Change of Plea Hearing reset for 12/3/2009 at 11:30 AM in Courtroom 17 South. (KCM) (Entered: 11/05/2009)
12/03/2009 17 SUPERSEDING INFORMATION as to Kennedy M. Russell (1) count(s) 1s. (Attachments: # 1 Criminal Cover Sheet) (SAJ) (Entered: 12/03/2009)
12/03/2009 18 ENTRY OF ATTORNEY APPEARANCE Thomas C. Albus appearing for USA. (SAJ) (Entered: 12/03/2009)
12/03/2009 Receipt CT 4644011232 in the amount of $50.00 for SPECIAL PENALTY ASSESSMENT on behalf of Russell, Kennedy M. (CCAM) (Entered: 12/05/2009)
12/03/2009 19 Minute Entry for proceedings held before Judge Paul Magnuson:Arraignment and Plea: Parties present for arraignment and plea. Defendant waives reading of information, plea of guilty as to Kennedy M. Russell (1) Count 1s held on 12/3/2009. Stipulation of facts, with plea agreement, accepted, adopted and made part of the record under seal. Probation Officer present in courtroom. Sentencing held immediately after plea. (Court Reporter or FTR Gold Operator initials:Shannon White.) (FTR Gold (yes or no): no.) (proceedings started: 9:35 a.m..) (proceedings ended: 9:50 a.m..) (Defendant Location: bond.) (LGK) (Entered: 12/08/2009)
12/03/2009 20 PLEA AGREEMENT, GUIDELINES, RECOMMENDATONS AND STIPULATIONS - FILED UNDER SEAL as to Kennedy M. Russell (LGK) (Entered: 12/08/2009)
12/03/2009 21 Minute Entry for proceedings held before Judge Paul Magnuson:Sentencing as to Kennedy M. Russell held on 12/3/2009. PSR waived by deft. Sentence imposed. Counts 1-3 of the indictment are dismissed. Probation Officer present in courtroom. Judgment to be filed. (Court Reporter or FTR Gold Operator initials:Shannon White.) (FTR Gold (yes or no): no.) (proceedings started: 9:50 a.m..) (proceedings ended: 10:05 a.m..) (Defendant Location: probation.) (LGK) (Entered: 12/08/2009)
12/03/2009 22 JUDGMENT as to Kennedy M. Russell (1), Count(s) 1s, Defendant is sentenced to three years probation. Defendant is ordered to pay a $1000.00 find and a $50.00 special assessment fee due immediately. Signed by the Honorable Paul A. Magnuson on 12/3/09. (ARL) (Entered: 12/17/2009)
12/03/2009 23 SEALED STATEMENT OF REASONS for Sentence as to defendant Kennedy M. Russell . Signed by the Honorable Paul A. Magnuson on 12/3/09. (ARL) (Entered: 12/17/2009)
12/17/2009 Receipt CT 4644011590 in the amount of $100.00 for FINE-CRIME VICTIMS FUND on behalf of Russell, Kennedy M. (CCAM) (Entered: 12/19/2009)
12/23/2009 24 Marshal's Return on Judgment as to Kennedy M. Russell on 12/3/09. defendant delivered to: 3 Years Probation (KCM) (Entered: 12/28/2009)

I'd say the US Atty took Mr. Russell's BPN quite seriously. From act to indictment to conviction was about a year, which IMHO is normal in these circumstances. Since Russell is in his 70's, he only got a fine and probation. If he had been much younger, or, perhaps, less pathetic, I speculate, he'd be doing some time, I again speculate.