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COMPLAINT
INTRODUCTION
1.1 Mr. James XXXXXX (the relator) brings this action on behalf of the
United States of America against defendants for treble damages and civil penalties arising
from the defendants' hiding of profit and lack of reporting such profit from Congress in
violation of the civil False Claims Act, Title 31, section 3729 (a)(1)(G) who knowingly
the Government. and section 3729 (a)(1)(C) who conspires to commit a violation of
subparagraph ...(G).
1.2 The violation of the False Claims Act arise because defendants knowingly
and intentionally conceal from the government approximately six hundred (600) times
annually a total amount equal to the value of deficit spending of the government. A
contorted accounting scam and hidden records are used by the defendants to cover the
perfidy.
1.3 The Federal Reserve Bank of New York (hereinafter FRBNY) has
exclusive control of the redemption records. This authority is used to control receipts and
disbursements of all Treasury security auctions. The records have never been
independently audited.
1.4 The profit is hidden from the United States in violation of Title 12 sections
289 and 290 which specify net profit of the Federal Reserve system is the property of the
United States. (Ref. Section 7, paragraphs 1 and 2 of Federal Reserve Act of 1913).
1.5 Statutory requirement of Title 12, section 247 for a complete report of the
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THE PARTIES
2.1 Plaintiff James XXXXX resides in XXXXX County, Missouri in this
granted by the BOG. It has statutory authority to sue or be sued. It is located at 33 Liberty
2.3 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
Primary Dealers. It operates as a government contractor that has assumed the guise of a
federal agency. It has statutory authority to sue or be sued. The office is located on
2.5 Ms. Janet Yellen 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.
2.6 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.
[ Paragraphs 2.7 through 2.27 listing individual defendants with addresses deleted
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JURISDICTION, CAUSE OF ACTION AND VENUE
3.1 This court has jurisdiction over False Claim Act violations filed by a
citizen pursuant to Title 31, section 3730(b)(1). Title 31, section 3732(a) authorizes
nationwide service of process and 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. Jurisdiction
is additionally established by Title 28, section 1331 (violation of U.S. law), section 1348
sue or be sued. Ref. 12 USC #341. Title 31, section 3729(a)(1)(G) provision has been
transacts business in the court's jurisdictional area is authorized by Title 31, section
3732(a). The FRBNY will accept auction bids from local customers and thereby transacts
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3.3 Title 31, section 3732(a) authorizes nationwide service on any co-
defendant in the case of multiple defendants, (where) any one defendant ...transacts
business... Each Primary Dealer is alleged to have violated Title 31, section 3729(a)(1)
(G) by receiving and hiding profit from the Federal Reserve operation.
3.4 Defendant Federal Reserve Board of Governors (BOG) is the franchise holder of
administrative control and regulatory authority over each Federal Reserve Bank. It has
the legislated responsibility for auditing and reporting to Congress an annual complete
report of the Federal Reserve system. A systemic violation of the Charter law of the
Federal Reserve legislation by any Federal Reserve Bank, and not corrected or reported
3.6 The BOG maintains the guise of a Federal agency. In fact, the BOG
indispensable party for any alleged systemic unlawful operation of any Federal Reserve
bank.
3.8 The BOG is a privately held corporation secretly owned by select Primary
Dealers. The primary allegiance is to its owners. A government agency is established for
the benefit of society. Any government agency established for the benefit of a corporate
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enterprise in violation of its charter of creation is a legal nullity that is void from its
BOG as indispensable parties and recipients of purloined funds. FRCvP 17 joins parties
3.10 The jurisdictional bar of Title 31, section 3730 (e)(4) is not applicable.
3.11 Venue is proper in this district pursuant to Title 31, section 3732(a) where
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
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.
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
4.4 Since the trail of money leads to the Primary Dealers, each member of that
4.5 FOIA requests for the identities of those responsible for compiling the
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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 Federal Reserve banks are franchisees controlled by the BOG.
4.7 The Federal Reserve banks have been held to operate as private
corporations.
4.8 The object of the Federal Reserve system is to embezzle the hidden profit
4.9 The source of initial operating funds to establish operations in 1913 was
5.1 Deficit spending occurs when Congress approves such act. The U.S.
Treasury can then send a Treasury security (bill, bond or note; i.e., marketable securities)
as collateral to the FRBNY. The FRBNY then increases the government's line of credit
(book entry money) by that amount. The act is identified as a loan from the Federal
Reserve. The source of the loan is never identified as having the value before the loan
but somehow the money comes from an unknown source. The government pays for
services by vendors from the account. When a vendor requests cash from a commercial
bank after depositing the check, the vendor will receive Federal Reserve Notes (FRN),
i.e. an voucher acknowledging debt from the Federal Reserve system identified as a legal
tender. A legal tender is an alternate item from that which was contracted. The vendor
requests dollars when the check is cashed but is given FRN's as a substitute which, by
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law must be accepted for the requested item.
5.2 The FRBNY will sell the Treasury security (as a component of a roll-over
5.3 Bids for auctions of Treasury Marketable securities are jointly received by
the FRBNY and select government branches. The auctions are open to the public.
Approximately 70 percent of sales is to the Primary Dealers who place bids with the
FRBNY.
5.4 Each security identifies how much goes for roll-over and how much is for
deficit spending. Approximately 85 percent of auctioned securities are used to fund roll-
over for maturing or redeemed Treasury securities. Security value for deficit spending is
about 15 percent. In this Complaint, the terms may be used to designate 100 percent of
ROLL-OVER SECURITIES
market may be received by the government or the FRBNY. They are credited to a
government account by the FRBNY. Since they are credited to the government, there is
no increase in the National Debt nor is there any increase in the amount of currency in
circulation. The government balance sheet lists these funds as assets under Marketable
securities.
5.6 The Treasury makes a list of securities that are being recalled before
maturity with the price they will pay. The Primary Dealers are largely responsible for
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collecting listed or maturing securities for redemption.
redemption accounts for the government. The accounts have never been independently
roll-over security. While temporarily shown on government balance sheets, the funds are
not available to pay for government services. If the funds belonged to the government,
there would be no increase in the National Debt nor would there be an increase in money
in circulation (inflation). The retention of the value within the Federal Reserve system is
concealed.
5.9 Revenue from both deficit and roll-over auctioned securities appears on the
securities are listed under Redemptions. FRBNY has exclusive control of accounts for
redemption. This authority is used to pay the defendants their share of profit from deficit
https://www.treasurydirect.gov/instit/annceresult/press/press_cashpydwn.htm ]
5.10 While the funds from various auctions appear on the balance sheet of the
securities. This authority is used to cover paying funds from deficit spending to the
5.11 Funds received from auctioning deficit spending securities are ostensibly
used to pay back the loan that created the book-entry moneywhile concealing the
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payment from public records. The defendant owners of the BOG advance no
consideration for the above loan or transactions. If the defendants has advanced value
in the loan, there would have been no increase in the amount of money in circulation
(inflation) and there would have been no increase in the National debt; i.e., no book-entry
creation of money.
5.12 The owners of the BOG receives the entire value of deficit spending as a
net profit by this handling. There is no consideration advanced by the defendants. The net
5.13 It is impossible to pay off the National Debt that is created by the above
transactions. Every dollar in circulation has been created as the principal of a loan
but requires repayment of principal plus interest. The interest is never created; it does not
the scam to acquire humongous profit, receive funds from deficit spending securities with
5.16 The National Debt in February 2009 was $10.6 trillion; the debt on
February 2015 is $18.1 trillion. Total amount of funds concealed within the statutory limit
Assuming each have a deficit spending component, each auction is a violation of the
defendant's obligation to transfer such money to the government. A six year period would
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involve approximately 3600 violations subject to a statutory civil penalty up to $10,000
three times the amount improperly concealed 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 Relator; for court costs and expenses; and for such
NOTICE
7.1 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
The writing is subject to random revision. A succinct analysis of money creation is also
posted at http://www.scribd.com/doc/101937790/Federal-Reserve-Heist.
To the best of my belief, there are good and worthy grounds to support this suit.
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Name deleted, Relator
address deleted March ______, 2015
deleted
*** *** ****
Declaration of Service
It is hereby Declared and Affirmed that one copy of this COMPLAINT has been mailed
th
to Mr. Jeffrey P. Ray, 400 East 9 . Street, Fifth Floor, Kansas City, Missouri 64106. In
continuing the practice of Mr. Ray, no service is made on the Attorney General.
Relator
address deleted March ______, 2015
address deleted
phone deleted
[amended filing refused by the court without counsel. No lawyer will accept position of counsel.]
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