Unregistered securities?

[Trippy]

Robert B. Clarkson (of the huge belly fame) is now selling something he calls "Freedom Bonds:"

$100 Freedom Bond

Constitutional States of America Freedom Bonds

On Redemption Date below, The United States of America, will pay to the bearer of this bond at Washington, D.C. or at such place of deposit as may be appointed by Secretary of the Treasure, the sum of $100 with the interest thereupon from the date of issue to the date of redemption, at the interest rate below-listed.

Neither Robert Clarkson nor The Patriot Network, the issuer of this debt instrument, is personally liable or responsible in anyway for this indebtedness. The grateful people of the USA upon regaining and restoring their Constitutional rights and liberties will pay this freedom bond. The purchaser is reminded that all monies given to The Patriot Network and its affiliated clubs are a donation and nothing else.

The duly appointed agents and freedom fighters of these United States of America authorize this debt.

Date of Redemption: Six months after the restoration of The United States Constitution.

Rate of Interest: 10% compounded annually; doubles to 20% during times of armed conflict.


Serial No._________ Date of Issue ___________________


_______________________________________________
Robert B. Clarkson, Authorized Registrar

You can see the "bonds" on his website at
http://www.patriotnetwork.info/100%20Fr ... 20cert.htm

Could a state agency come down on him for selling unregistered securities?

[The Observer]

Well, now we know why that Sui poster was looking for bond paper...

[Imalawman]

Robert B. Clarkson (of the huge belly fame) is now selling something he calls "Freedom Bonds:"

$100 Freedom Bond

Constitutional States of America Freedom Bonds

On Redemption Date below, The United States of America, will pay to the bearer of this bond at Washington, D.C. or at such place of deposit as may be appointed by Secretary of the Treasure, the sum of $100 with the interest thereupon from the date of issue to the date of redemption, at the interest rate below-listed.

Neither Robert Clarkson nor The Patriot Network, the issuer of this debt instrument, is personally liable or responsible in anyway for this indebtedness. The grateful people of the USA upon regaining and restoring their Constitutional rights and liberties will pay this freedom bond. The purchaser is reminded that all monies given to The Patriot Network and its affiliated clubs are a donation and nothing else.

The duly appointed agents and freedom fighters of these United States of America authorize this debt.

Date of Redemption: Six months after the restoration of The United States Constitution.

Rate of Interest: 10% compounded annually; doubles to 20% during times of armed conflict.


Serial No._________ Date of Issue ___________________


_______________________________________________
Robert B. Clarkson, Authorized Registrar

You can see the "bonds" on his website at
http://www.patriotnetwork.info/100%20Fr ... 20cert.htm

Could a state agency come down on him for selling unregistered securities?

State securities commission and the SEC too I bet.

Also, the wording of the "bonds" appears to be binding the government of the United States to repay the ponds when the "true Constitution" is restored. I bet that runs afoul of a few things too - it might even be considered a form of forgery.

Also, since one could construe that the bonds will NEVER be honored and the interest will never be paid, the bonds are a pure fraud.

This is NOT going to end well for the "promoter" of this scam....er...scheme.

Yup, he's committing a laundry list of felonies federal and state. And not just one state, because he's selling them all over North Carolina as well as SC. The Great One is in deep shit now. (if anyone were to get wind of this of course) Perhaps an e-mail to the Attorney Generals of both NC and SC would get the ball rolling...hmmm...

[Demosthenes]

Already done.

[Joey Smith]

Among other agencies, the Treasury Department's Office of Public Debt will go ape over this -- can somebody please forward it to them with the Fatman's address and criminal record?

http://www.treasuryscams.gov/

[Demosthenes]

Among other agencies, the Treasury Department's Office of Public Debt will go ape over this -- can somebody please forward it to them with the Fatman's address and criminal record?

http://www.treasuryscams.gov/

Good idea.

[notorial dissent]

Among other things, I think the Treasury will be interested in what could/should be considered a counterfeit US security, and they have no sense of humor about that at all, and I would suspect that the remainder of the laundry list would apply too, both Federally and locally.

I think his Tonnage has finally slipped over the edge with this one.

Will look forward to further developments and the excuses that will shortly follow.

[LPC]

Neither Robert Clarkson nor The Patriot Network, the issuer of this debt instrument, is personally liable or responsible in anyway for this indebtedness.

What?

The purchaser is reminded that all monies given to The Patriot Network and its affiliated clubs are a donation and nothing else.

But suppose that the transaction is not a gift, but the purchase of a bond?

This sentence can probably be translated as "The mark is reminded that all monies paid to the Patriot Network and its co-conspirators are gone forever because all representations of the issuer are false and nothing else."

They probably think that this is the "get out of jail free" card, but I don't think that the euphemisms can ever fully taketh away what the express provisions giveth.

The duly appointed agents and freedom fighters of these United States of America authorize this debt.

And those "freedom fighters" obviously does not include the Patriot Network, because they are specifically excluded from liability. So the Patriot Network is probably better described as the "camp followers" of the "freedom fighters."

Rate of Interest: 10% compounded annually; doubles to 20% during times of armed conflict.

That sound ominous, almost like a financial incentive for an armed insurrection.

Robert B. Clarkson, Authorized Registrar

Authorized by whom, I wonder.

[.]

Secretary of the Treasure

Is there a sunken ship involved? Does admiralty law apply?

[webhick]

The grateful people of the USA upon regaining and restoring their Constitutional rights and liberties will pay this freedom bond.

I love this scam. To get this bond, I have to "donate" $100 to the Patriot Network. Then, when "the Constitution is restored", I have to pay myself the $100 plus the interest accrued.

What moron would actually buy this "bond"?

[Judge Roy Bean]

...What moron would actually buy this "bond"?

You answered your own question.

[grixit]

"...Two years after the Ratification of a Treaty of Peace between the Confederate States and The United States Will pay to the bearer on demand FIVE HUNDRED DOLLARS Richmond, Feb. 17, 1864"

[grammarian44]

The purchaser is reminded that all monies given to The Patriot Network and its affiliated clubs are a donation and nothing else.

But suppose that the transaction is not a gift, but the purchase of a bond?

Does anyone know if, as a matter of law, Clarkson's "donation" disclaimer would be sufficient to remove these "bonds" from the definition of "security" for purposes of (at least) the 1933 Act?

It's clear that, in the absence of the disclaimer, Clarkson is guilty of a boatload of crimes arising from public sale of unregistered and fraudulent securities. But we can't say he's guilty until we know about the possible effect of the disclaimer.

[Demosthenes]

The purchaser is reminded that all monies given to The Patriot Network and its affiliated clubs are a donation and nothing else.

But suppose that the transaction is not a gift, but the purchase of a bond?

Does anyone know if, as a matter of law, Clarkson's "donation" disclaimer would be sufficient to remove these "bonds" from the definition of "security" for purposes of (at least) the 1933 Act?

It's clear that, in the absence of the disclaimer, Clarkson is guilty of a boatload of crimes arising from public sale of unregistered and fraudulent securities. But we can't say he's guilty until we know about the possible effect of the disclaimer.

Considering that the SEC and state AGs have no problem ignoring the "it's only a gift" disclaimer when correctly labeling a "gift club" as an illegal pyramid scheme, I don't think the disclaimer will offer any protection whatsoever.

[grammarian44]

Considering that the SEC and state AGs have no problem ignoring the "it's only a gift" disclaimer when correctly labeling a "gift club" as an illegal pyramid scheme, I don't think the disclaimer will offer any protection whatsoever.

Citation for that? I'd be interested to know the extent to which the analogy between a gift club and a sale of unregistered phony securities holds.

[Demosthenes]

There are probably four or five dozen examples out there. Gifting clubs were a hot thing in the late 1990s.

An announcement from the Hawaii Commissioner of Securities:
http://www.cheatingfrenzy.com/hawaiigift.pdf

Consumer Warning from the FTC:
http://www.ftc.gov/bcp/conline/pubs/ale ... talrt.shtm

Do a google search on "gifting club" and securities and you'll get a ton of links.

[David Merrill]

A lot of the time, they collect stock certificates with the Federal Reserve - those notes.



Regards,

David Merrill.

[Dezcad]

A lot of the time, they collect stock certificates with the Federal Reserve - those notes.



Regards,

David Merrill.

Thanks for that. You've once again added valuable input and insight into a thread. Well done!

[Doktor Avalanche]

A lot of the time, they collect stock certificates with the Federal Reserve - those notes.



Regards,

David Merrill.

Thanks for that. You've once again added valuable input and insight into a thread. Well done!

What is his problem with money?

[The Observer]

What is his problem with money?

He is unemployed - that is his problem with money. He doesn't pay child support - that is another problem he has with money. One other problem he has with money - he hasn't got any so he has to con others out of it.