Lawsuit in U.S. District Court accuses the Fed of “embezzling” $7 Trillion from the United States~ Pine Cone/$, Endocrine/$, Name a commodity not of great value in the Homo sapien/$

http://investmentwatchblog.com/fed-hides-trillions-lawsuit-in-u-s-district-court-accuses-the-fed-of-embezzling-7-trillion-from-the-united-states/#yOgGeGoMl62qjule.99

http://www.scribd.com/doc/153024003/Amended-Complaint-Federal-Reserve-whistleblower

Published on 23 Nov 2013

Lawsuit in U.S. District Court accuses the Fed of "embezzling" $7 Trillion from the United States.

Certified mail 7005 1160 0004 9702 6356
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF MISSOURI
WESTERN DIVISION
United States of America
ex rel. (deleted),
Plaintiffs,
v. Case No: 12-0129-CV W hfs
Filed under seal and in camera
Board of Governors of the Federal Reserve,
Mr. Ben S. Bernanke, CEO,
and unidentified officers;
Federal Reserve Bank of New York City,
Mr. William C. Dudley, President,
and unidentified officers;
THE FOLLOWING ENTITIES WHO ARE PUBLICLY
IDENTIFIED AS PRIMARY DEALERS:
Bank of Nova Scotia, New York agency,
BMO Capital Markets Corp.,
BNP Paribas Securities Corp.,
Barclays Capital Inc.,
Cantor Fitzgerald & Co.,
Citigroup Global Markets Inc.,
Credit Suisse Securities (USA) LLC,
Daiwa Capital Markets America Inc.,
Deutsche Bank Securities Inc.,
Goldman, Sachs & Co.,
HSBC Securities (USA) Inc.,
Jefferies LLC,
J.P. Morgan Securities LLC,
Merrill Lynch, Pierce, Fenner & Smith Inc.,
Mizuho Securities USA Inc.,
Morgan Stanley & Co. LLC,
Nomura Securities International, Inc.,
RBC Capital Markets, LLC,
RBS Securities Inc.,
SG Americas Securities, LLC,
UBS Securities LLC., Defendants.
AMENDED COMPLAINT
INTRODUCTION
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1.1 This is a civil action arising under Title 31 section 3729 (a)(1)(C) who
“conspires” and 3729(a)(1)(G) who “knowingly and improperly avoids or decreases an
obligation to pay or transmit money or property to the Government.” The funds have
been hidden from the United States in violation of Title 12 sections 289 and 290 which
specify net profit of the system is the property of the United States. (Ref. Section 7,
paragraphs 1 and 2 of Federal Reserve Act of 1913). Statutory requirement for a complete
report of the system to be periodically made to Congress is also routinely violated.
1.2 The diversion of money for the benefit of (unknown) owners of the Board
of Governors of the Federal Reserve (hereinafter BOG) utilizes the accounting records of
auctions of Treasury securities (this is not a FOMC operation). The Federal Reserve
Bank of New York (hereinafter FRBNY) has exclusive control of the receipt and
disbursement records. These records have never been independently audited.
1.3 Auctions of Treasury securities involve two distinct procedures. Securities
being sold to refinance maturing securities (roll-over) result in the funds being credited to
the United States. The funds are then expensed to the Primary Dealers who are
responsible for purchasing and collecting the maturing securities from the market. This
procedure does not result in any inflation of the economy nor does it add to the national
debt.
1.4 The other procedure is to sell securities at auction to fund deficit spending.
If the funds from such sales went to the government, there would be no increase in the
national debt nor would there be any increase in the amount of money in circulation
(inflation). The money from the sale of securities to fund deficit spending clearly does
not go to the government.
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1.5 The funds from deficit spending do not perpetually accumulate in the
FRBNY. The only feasible conclusion is that the funds are co-mingled with funds for
roll-over securities and transferred to the owners of the BOG. These transactions are
never reported to Congress or the public as required by law.
THE PARTIES
2.1 Plaintiff James Carter resides in Cass County, Missouri in this judicial
district and is an adult citizen of the United States.
2.2 The BOG is believed to be a federal corporation and assumes the guise of
a government agency to claim sovereign immunity. It has statutory authority to sue or be
sued. The office is located on Constitution Ave NW, Washington, DC 20551.
2.3 Mr. Ben Bernanke is an employee of the United States and is Chief
Executive Officer of the BOG. Additional officers of the BOG who are responsible for
current and past supervising and auditing the FRBNY operations are unknown at this
time.
2.4 The FRBNY is a corporation under federal charter and has statutory
authority to sue or be sued. It is located at 33 Liberty Street, New York City, New York.
2.5 Mr. William C. Dudley is employed by the United States and is the
President and CEO of FRBNY. Additional officers of the FRBNY with current or past
authority to sign and approve transfers of funds from the accounts of Treasury auctions
are unknown at this time.
2.6 The Bank of Nova Scotia is located at 1 Liberty Plaza, New York, N.Y.
10006. Mr. Daniel Santiago is the manager. No agent for service has been found.
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2.7 BMO Capital Markets has their main office at 111 West Monroe, Chicago,
Illinois. Agent for service is C.T. Corporation System, 120 South Central Avenue,
Clayton, Missouri 63105.
2.8 BNP Paribas Securities Corporation has their main office at the Equitable
Center, 787 Seventh Avenue, New York City, NY 10019. Agent for service in Missouri is
C.T. Corporation System, 120 South Central Avenue, Clayton, Missouri 63105.
2.9 Barclays Capital Inc. has the main office at 200 Park Avenue, New York
City, NY 10166. Agent for service in Missouri is C.T. Corporation System, 120 South
Central Avenue, Clayton, Missouri 63105.
2.10 Cantor Fitzgerald has their main office at 101 E. 59
th
Street, New York
City, NY 10022. Agent for service in Missouri is C.T. Corporation System, 120 South
Central Avenue, Clayton, Missouri 63105.
2.11 Citigroup Global Markets has their main office at 388 Greenwich, New
York City, NY 10013. Agent for service in Missouri is C.T. Corporation System, 120
South Central Avenue, Clayton, Missouri 63105
2,12 Credit Suisse Securities (USA) LLC has their main office at 11 Madison
Ave, New York City, New York 10010. Agent for service is CSC Lawyers Service, 221
Bolivar Street, Jefferson City, Missouri 65101.
2.13 Daiwa Capital Markets America has their main office at Financial Square,
32 Old Slip, 14
th
. Floor, New York City, NY 10005. Mr. Oka Hironori is the CEO. No
registered agent has been found.
2.14 Deutsche Bank has their main office at 60 Wall Street, New York City, NY.
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Agent for service is C.T. Corporation System, 120 South Central Avenue, Clayton,
Missouri 63105
2.15 Goldman Sachs has their main office at 200 West Street, New York City,
NY 10282. Agent for service is C.T. Corporation System, 120 South Central Avenue,
Clayton, Missouri 63105.
2.16 HSBC Securities has their main office at 452 5
th
. Avenue, New York City,
NY 10018. Agent for service is C.T. Corporation System, 120 South Central Avenue,
Clayton, Missouri 63105.
2.17 Jefferies LLC has their main office at 520 Madison Avenue, New York
City, NY. Agent for service is C.T. Corporation System, 120 South Central Avenue, Cla
xvcyton, Missouri 63105.
2.18 J.P. Morgan Securities has their main office at 277 Park Avenue, New York
City, NY 10172. Agent for service is C.T. Corporation System, 120 South Central
Avenue, Clayton, Missouri 63105.
2.19 Merrill Lynch, Pierce, Fenner & Smith, a wholly owned subsidiary of
Bank of America, with main office at 1251 Avenue of the Americas, New York City, NY
10020. Agent for service is C.T. Corporation System, 120 South Central Avenue, Clayton,
Missouri 63105.
2.20 Mizuho Securities has their main office at 320 Park Avenue, New York
City, NY 10022. Service of Process is to General Counsel's Office, 320 Park Ave, 12
th
.
Floor, New York City, NY 10022.
2.21 Morgan Stanley has their main office at 1585 Broadway, New York City,
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NY 10036. Agent for service is C.T. Corporation System, 120 South Central Avenue,
Clayton, Missouri 63105.
2.22 Nomura Securities has their main office at 2 World Financial Center
Building B, New York City, NY 10281. Their agent for service is Corporation Service
Company, 80 State Street, Albany, NY 12207.
2.23 RBC Capital Markets has their main office at One Liberty Plaza, 165
Broadway, New York City, NY. Agent for service is CSC Lawyers Service, 221 Bolivar
Street, Jefferson City, Missouri 65101.
2.24 RBS Securities has their main office at 600 Washington Blvd, Stamford,
Connecticut 06901. Agent for service is Corporation Service Company, 80 State Street,
Albany, NY 12207.
2.25 SG American Securities has their main office at 1221 Avenue of Americas,
New York City, NY10020. No agent for service is found.
2.26 UBS Securities has their main office at 11 Wall Street, New York City,
NY. Agent for service is CSC Lawyers Service, 221 Bolivar Street, Jefferson City,
Missouri 63105.
JURISDICTION AND VENUE
3.1 This court has jurisdiction over the subject matter of this action under Title
28 section 1331 (under U.S. law), section 1348 (a national bank), and section 1357
(collection of any revenue).
3.2 This court has personal jurisdiction over the defendants under Title 31
sections 3730(b) and 3732(a) which authorizes nationwide service of process and
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provides that an action under the False Claims Act “may be brought in any judicial
district in which the defendant…can be found, resides, transacts business, or in which any
act proscribed by section 3729 occurred.”
3.3 Venue is proper in this district pursuant to Title 28 section 1391(e)(1)(C)
because the BOG and FRBNY operate on a federal charter and their officers are
employees of the United States operating in the guise of federal entities. The Relator is a
resident of this district.
3.4 Federal Rule of Civil Procedure 19 authorizes joinder of alleged owners of
the BOG as indispensable parties and recipients of purloined funds. FRCvP 17 joins
parties of the real interest.
3.5 Any and all public disclosure of the nature of this suit has been a voluntary
publication made by the Relator to a non-governmental entity. The jurisdictional
restriction of Title 31 section 3730 (e)(4) is not relevant.
BACKGROUND
4.1 The Federal Reserve Bank of New York (FRBNY) and the Board of
Governors of the Federal Reserve (BOG) were created by legislation of 1913 that was
formulated at a clandestine meeting of Wall Street and European bankers secluded on
Jekyll Island. The legislation is codified as Title 12 sections 221 through 522.
4.2 The economic structure was modeled after historic European systems that
had benefited various rulers and financiers but left the nations in financial ruin and
widespread riots with confiscation of estates and physical harm to the perpetrators.
Hence, the latest model conceals the perpetrators.
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4.3 Ownership of the BOG has been alleged by various authors but requests
pursuant to FOIA for verification of ownership are stonewalled with website links that
are uninformative. Ownership of the BOG is not a matter of public record.
4.4 Since the trail of money leads to the Primary Dealers, each member of that
group is assumed to be an owner of the BOG.
4.5 FOIA requests for the identities of those responsible for compiling the
screened lists (and the original 1913 list) submitted for government appointment as
Federal Reserve officers are rebuffed Those parties are the owners of the BOG.
4.6 Supervisory and regulatory control of all Federal Reserve banks is vested
in the BOG; the banks are franchise holders controlled by the BOG.
4.7 The 12 banks have been held to operate as private corporations.
4.8 The object of the FR system is to embezzle the hidden profit revealed in
this suit.
4.9 The source of initial operating funds to establish operations in 1913 was
from the owners of the BOG.
SOVEREIGN IMMUNITY
5.1 Sovereign immunity of the BOG and of the FRBNY has been analyzed in
detail in the Suggestions in Opposition to Dismissal filed on or about May 27, 2013.
They are incorporated in this Amended Complaint in their entirety by reference. They
include the following:
5.2 Government employees who violate the law or authorized procedures are
not protected by sovereign immunity.
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5.3 Federal Reserve Banks have been adjudicated as and have demanded to be
recognized as private corporations.
5.4 The BOG has assumed the guise of a government agency. Its true nature
and operation is that of a government contractor.
5.5 Government agencies are established to provide a public service. An entity
that is specifically designed to profit a cabal at the expense of the public, in direct
violation of the charter of creation, cannot properly claim immunity for their nefarious
acts.
5.6 Entities established with a government façade that routinely operate---as
an entity---in direct violation of their charter of creation cannot claim government
immunity.
5.7 An operation that establishes a debt that is impossible to culminate is an
act of fraud and should be recognized as any other contract in fraud---null and void from
its inception.
DEFICIT SPENDING
6.1 Deficit spending involves the Treasury Department giving a security to
defendant FRBNY as authorized by Congress as collateral whereupon the FRBNY credits
an account of the government in the face amount of the security. Congress then spends
the book-entry credit.
6.2 When the security matures, the FRBNY redeem [if not already auctioned]
the collateral. This may involve a replacement security being given to the defendant
which the defendant then auction for value. `The auctioned value is credited to an
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account of the FRBNY. This simplified example is convoluted by the defendants to
conceal their gain.
6.3 The defendants do not advance any consideration for the transactions.
6.4 The auction value of each deficit security is profit for the defendants.
6.5 The receipts from the auctions of deficit spending are distributed to the
owners of the Board of Governors. This profit is co-mingled with funds sent to the
Primary Dealers to redeem roll-over securities for concealment.
6.6 The precise sequence of how funds from the auctions are authorized for
payment by FRBNY officers, by warrants, vouchers, or other documentation, to the
owner/defendants is unknown at this time.
6.7 Select members of the Primary Dealers are the owners of the BOG.
6.8 The defendants utilize the Federal Reserve Bank of Kansas City to sell and
redeem Treasury securities.
6.9 As a representative year, the total amount of Treasury securities auctioned
in 2010 was $8.4 trillion. $7 trillion was for the redeeming of maturing securities. $1.4
trillion was from selling deficit spending securities. The amount of profit that went to the
owners of the BOG was therefore $1.4 trillion. Other years are similar.
6.10 Deficit spending in 2007 was over $500 billion; in 2008 it was $1.5
trillion; in 2009 it was $1.6 trillion; in 2010 it was $1.7 trillion ($1.4 for calendar year); in
2011 it was $1.2 trillion; in 2012 it was $1.1 trillion. Total amount of funds concealed
within the statutory limit of six years exceeds $7 trillion.
6.11 Operating within the system, it is impossible to pay off the National Debt.
6.12 There are approximately 600 auctions of Treasury securities annually.
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Assuming fifteen percent are for deficit spending and each such auction is a violation of
their obligation to transfer such money to the government, it would be about 90 violations
each year. A six year period would involve approximately 540 violations subject to a
statutory civil penalty up to $10,000 for each violation.
6.13 Defendant FRBNY reportedly has 7,700 tons of gold in its vaults--alleged
to be owned by others. A priority claim by the United States on the cache would appear to
be in order.
7.1 WHEREFORE, Relator requests judgment against defendants for
three times the amount purloined by the Federal Reserve system; for the maximum civil
penalty for each violation of the False Claims Act; for the minimum statutory amount
authorized to the qui tam Relator; for court costs and expenses; and for such further relief
as the Court deems just and proper.
NOTICE
8.1 As required by the False Claims Act for full disclosure of material
evidence, Relator conveys to this court that the perfidy of the Federal Reserve has been
the subject of an article written by the Relator and distributed to various internet
websites, including http://www.scribd.com/doc/49040689/RIP-OFF-BY-THEFEDERAL-
RESERVE-Feb-17-2011. The mathematical progression concludes the
Federal Reserve is a Ponzi scheme inherently designed for economic self-destruction.
The writing is subject to random revision. A succinct analysis of money creation is also
posted at
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http://www.scribd.com/doc/101937790/Federal-Reserve-Heist.
To the best of my belief, there is good and worthy grounds to support this suit.
(Relator identification deleted) filed July 18, 2013 Case dismissed Nov 4, 2013 for
failure to state a cause of action.
Declaration of Service
It is hereby Declared and Affirmed that one copy of this AMENDED COMPLAINT has
been mailed to Mr. Jeffrey P. Ray, 400 East 9th. Street, Fifth Floor, Kansas City, Missouri
64106. In continuing the practice of Mr. Ray, no service is made on the Attorney General.
deleted signatur
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