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Context of 'May 1995: Montana Freemen Pass Phony Checks throughout Rocky Mountain Region'

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An image of a fraudulent ‘Freeman check’ signed by LeRoy Schweitzer.An image of a fraudulent ‘Freeman check’ signed by LeRoy Schweitzer. [Source: Anti-Defamation League]During this time period, over a dozen Montana anti-government tax resisters—the kernel of what will become the “Montana Freemen” movement (see 1983-1995)—establish themselves, creating what they term “common law courts” in Garfield and Musselshell Counties, and mounting a massive bank fraud scheme. [Billings Gazette, 3/25/2006]
Beliefs - According to a Washington Post article, the Freemen espouse a number of beliefs that directly contradict federal, state, and local laws. These are:
bullet All forms of organized government are illegitimate and have no right to perform duties routinely assigned to governments, from collecting taxes to requiring automobile licenses.
bullet Thusly, the Freemen can perform a multitude of actions, such as defying foreclosures, issuing arrest warrants, and even putting government officials on “trial.”
bullet They can also act as their own central banks and defraud the government, financial institutions, and area merchants.
Racist 'Christian Identity' Ideology - According to the Montana Human Rights Network and local citizens, most of the Freemen espouse some form of “Christian Identity” religious ideology, which claims that whites are inherently superior to other “inferior” races (see 1960s and After); they also hold radical anti-government views. [Washington Post, 4/1996; Washington Post, 4/9/1996; Billings Gazette, 3/25/2006] The Anti-Defamation League traces the roots of the Freemen ideology to the the Posse Comitatus movement (see 1969). [Mark Pitcavage, 5/6/1996] They call themselves “Freemen” because, in their view, white Christian males have special “Freemen” citizenship status, while non-whites, non-Christians, and women have second class status or worse. Freemen are above government prosecution and taxation. As US currency has no intrinsic value, any loans taken by Freemen need not be repaid. The US government is run by Jews and therefore has no legitimacy. “Common law” is the rule of the land. [New York Times, 6/15/1996] The Reverend Jerry Walters of Roundup, Montana, will later characterize the Freemen’s beliefs as a “bizarre distortion of the Christianity taught in most churches on Sundays.” (Rodney Skurdal will file a $100 billion lien against Walters after Walters refuses to alter his sermons to reflect Skurdal’s Christian Identity beliefs.) The Post will observe: “American history is littered with examples of how hard economic times produce hard-edged political splinter groups, but the Freemen of Montana are a particularly virulent strain. Their philosophy, a hodgepodge drawn from the Old Testament, the Magna Carta, the anti-tax Posse Comitatus of the 1980s, and a highly selective reading of the Constitution, is laced with racism and talk of a Jewish conspiracy, and puts them at the extreme of the Christian patriot movement.” Steven Gardner of the Coalition for Human Dignity will say: “The Freemen have, in effect, appointed themselves judge, jury and executioner. They are trying to form their own shadow government for a white Christian republic.” [Washington Post, 4/1996; Washington Post, 4/9/1996; Mark Pitcavage, 5/6/1996; Billings Gazette, 3/25/2006] “What’s driving them is their biblical and theological agenda,” Walters will say. “Their anti-government conspiracy theories, their anti-tax stance—they’re looking at these things through the lens of Christian Identity.” [Washington Post, 4/9/1996]
Fraudulent Liens - LeRoy Schweitzer and the others concoct a scheme to generate money by filing phony liens against various Montana property owners, or the Montana or US government. The liens have no value; however, once they are created, it takes time for bank computers to recognize them as invalid. During that “window” of time, the liens can be used to generate money transfers from unsuspecting banks. The Freemen file the liens and deposit fake money orders at other banks to be drawn upon the bank listing the lien. The money orders are usually signed by Schweitzer, though Skurdal, Daniel Petersen, and William Stanton (see October 17, 1994) also sign them on occasion. The money orders look quite official, though sometimes they deliberately spell the words “United States” with a lowercase “u.” The Freemen also issue bogus checks labeled “Certified Bankers Check—Controller Warrant,” instead of a bank name, along with account and lien numbers. Many checks are drawn against a non-existent account in a Butte, Montana, branch of the Norwest Bank. The checks state that they are also redeemable at the Office of the US Postmaster. The scheme is, on the whole, quite profitable. The Freemen also sell the money orders, advertising them to their fellow citizens as a quick means of getting out of debt. One distributor explains on a Web site: “LeRoy Schweitzer does have their [sic] own monetary system. When you attend their course on location, they will issue you CHECKS times two (biblical) to pay off all IRS debts and all loans to banks for no charge. They are having success in this area, but it is hard fight [sic].” One Omaha, Nebraska, county treasurer will later explain, “People see these and, if you’re a very unsuspecting person, they really do look authentic.” [Mark Pitcavage, 5/6/1996] Schweitzer, Skurdal, and Petersen are influenced by Roy Schwasinger, described by federal authorities as a right-wing con artist and head of the Colorado extremist group “We the People.” Schwasinger originated the financial schemes that the Freemen run. [New York Times, 6/15/1996]
Appointing Themselves as Legal Officials - The Freemen appoint themselves “justices,” issue “arrest warrants,” and flood local courts and counties with what the Billings Gazette will term “bogus documents.” One of the documents, written by the three Freemen leaders, Skurdal, Schweitzer, and Petersen, is interpreted by local law enforcement officials as a threat. It states: “We the Honorable justices, will not hesitate to use our Lawful force by whatever means necessary to fully support, protect, guarantee, and defend our (common) Law… and… Right of self governing as a free sovereign and independent state.” District Court Judge Peter Rapkoch calls the documents “a bucket of snakes.” In July 1994, one of the Freemen, Skurdal, is prohibited by court order from filing or recording any “frivolous” document with any Montana county clerk of court, clerk and recorder, or the secretary of state (see 1994); Montana Supreme Court Chief Justice Jean A. Turnage calls Skurdal’s filings “not only nonsensical but meritless, frivolous, vexatious, and wasteful of the limited time and resources of this court, of the clerk of this court, and of the various public officials and counsel that are forced to deal with and respond to Mr. Skurdal’s abuse.” Garfield County prosecutor Nick Murnion files misdemeanor charges of impersonating public officials against 13 residents and a felony charge of solicitation of kidnapping against Ralph Clark for a $1 million bounty posted around the county for court officers, the sheriff, and Murnion. Garfield County Sheriff Charles Phipps organizes a posse of about 90 local residents to come to the aid of his outmanned, outgunned three-person department (see January 1994). Murnion eventually files felony criminal syndicalism charges against Freemen members. US Attorney Sherry Matteucci works with local and state officials to share information on anti-government activities. “I think their purpose is to intimidate people and to cause chaos in governmental operations,” she says. [Washington Post, 4/9/1996; Chicago Tribune, 4/19/1996; Mark Pitcavage, 5/6/1996; Billings Gazette, 3/25/2006]

Entity Tags: Charles Phipps, Daniel Petersen, Montana Human Rights Network, LeRoy Schweitzer, Jerry Walters, Jean A. Turnage, William Stanton, Anti-Defamation League, Sherry Matteucci, Nick Murnion, Steven Gardner, Posse Comitatus, Peter Rapkoch, Rodney Owen Skurdal, Ralph Clark, Montana Freemen, Roy Schwasinger

Timeline Tags: US Domestic Terrorism

Vendors and individuals begin questioning the legitimacy of checks passed throughout the Rocky Mountain region and issued by the Norwest Bank of Anaconda-Butte in Montana. Subsequent investigation shows that the checks are phony, and are issued primarily through the auspices of Rodney Skurdal, a member of the anti-government Montana Freemen (see 1983-1995 and 1993-1994). Norwest president Bruce Parker says the checks are “totally without merit or value.” He says the Butte branch of the bank has been “involuntarily involved” since June 1993 with members of the Freemen movement. Freemen leader LeRoy Schweitzer and others issue false checks and file liens for hundreds of millions of dollars against public officials, private citizens, and journalists. The Freemen claim the money is owed for offenses against their sovereignty. [Billings Gazette, 3/25/2006]

Entity Tags: Rodney Owen Skurdal, Bruce Parker, LeRoy Schweitzer, Norwest Bank of Anaconda-Butte, Montana Freemen

Timeline Tags: US Domestic Terrorism

The jury trial of Freemen leader LeRoy Schweitzer (see March 25, 1996) and 11 other Freemen begins in the Billings, Montana, district court, amid tight security. (Three others charged in the indictment have already pled guilty.) The Freemen are charged with conspiracy to commit fraud, bank and wire fraud (see May 1995), filing false IRS claims, interstate transportation of stolen property, threatening federal officials, armed robbery of news crews (see October 2, 1995 and February 8, 1996), and firearms violations (see March 14, 1996). Prosecutors give their opening arguments, and tell the jury that the case against the anti-government group centers on fraud and not politics. Lead prosecutor James Seykora says that the Freemen issued over 4,000 fraudulent checks worth a total of $18 billion; while most were rejected, the Freemen garnered $1.8 million in illicit payments from the checks. The checks—called at various times certified money orders, certified banker checks, comptroller warrants, or lien drafts—were drawn on a Norwest Bank account that never held over $116. “This is a fraud of truly epic proportions, a fraud fueled by hatred and motivated by greed,” Seykora says. “They bought some computers, they bought some fancy paper and sat down and made their own checks, their own money.” Authorities in Utah, California, Colorado, Wyoming, South Dakota, and elsewhere have uncovered similar schemes and linked the fraud rings to Schweitzer. Overall, authorities say phony money orders worth $20 million were disseminated as part of the fraud, which they liken to a variation of the Bank of Sark scam of the 1970s. Defense lawyers argue that the Freemen sincerely believed their checks had value, an argument challenged by prosecutors’ assertions that the Freemen did not themselves honor such checks if anyone tried to pay them for the seminars the Freemen provided (see September 28, 1995 and After), nor did they use them to pay telephone or electric bills. In previous Freemen trials, followers, not leaders, have appeared (see March 31, 1998); Ken Toole of the Montana Human Rights Network says: “Now, you have the real leadership on trial. These are the hard-core ideologues.” Judge John C. Coughenour presides over the trial. Two of the defendants, Schweitzer and Rodney Skurdal, have issued “arrest warrants” for Coughenour, charging him with a string of alleged crimes including “perjury, contempt of court, sedition, and treason.” Defendant Daniel Petersen has informed Coughenour that he has filed a $956 million claim against him. The defendants have largely shunned their court-appointed lawyers. Skurdal’s lawyer, Gregory Jackson, has twice asked to withdraw from the case, noting that Skurdal has sued him for libel and slander, and calls him “a servant of Satan” and “dumb, stupid, and lazy.” Today Jackson tells the court that Skurdal is “a gung-ho patriot, a gung-ho Marine.” Security at the courtroom and other federal buildings in Billings, the site of the trial, is high, with many of the security precautions adopted during the Oklahoma City bombing trial (see 8:35 a.m. - 9:02 a.m. April 19, 1995) in place here as well. Nine of the 12 defendants have refused to come to court, and monitor the proceedings over closed-circuit television in a Yellowstone County Jail holding cell two miles away. [Washington Post, 4/1996; New York Times, 5/29/1998; Southern Poverty Law Center, 8/1998; Billings Gazette, 3/25/2006] Two of the Freemen in the holding cell even refuse to dress, and watch the proceedings in their underwear. [New York Times, 5/27/1996] One of the Freemen who pled guilty, Dana Dudley Landers, has agreed to testify against her former colleagues. She pled guilty to interstate transportation of stolen goods, mostly vehicles and office equipment purchased in North Carolina with worthless Freemen checks and brought to Montana. Prosecutors say the vehicles were to have been used by the Freemen in kidnapping public officials for “trials” before a Freemen tribunal. Another Freeman, Emmett Clark, has pled guilty to threatening to kidnap and murder a federal judge, but has not agreed to testify against his former fellows. [New York Times, 5/27/1996; Associated Press, 5/27/1998]

Timeline Tags: US Domestic Terrorism

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