Educated Bankers

Myself and 5 other bankers started our education into the fraud of the government regarding taxation, social security numbers, the Federal Reserve Bank and liens and levies in the summer of 1997. Some of this info I already knew regarding the FRB and taxes, but much of it was new to me, also. The positions of these bankers were top level senior management positions.

We researched and studied and came to the conclusion that the bank was not "required" to obtain ssn's from customers to open non-interest bearing accounts. We also became aware of an instrument called a 'pure trust' that allows individuals to protect their finances and assets with a high degree of confidentiality.

We had many discussions with the board of directors of the bank and in the early part of 1998 began opening accounts without requiring a social security number. This was with their knowledge and approval. In June, 1998, the bank had a compliance examiner assigned to review its compliance with the Bank Secrecy Act (BSA). This examiner gave us some additional steps that we needed to take in order to protect the bank and make sure it was in compliance with the 'letter' of the law. He assisted the President of the bank in formulating the appropriate letter to the customers that did not have an ssn or chose not to have it attached to their non-interest bearing account.

In late 1997, this group of bankers had also determined through much study, reading, and research that the income tax code as written did not apply to them. In other words the Internal Revenue Code as written, did not apply to most American Citizens, living and working in America and receiving their remuneration from domestic sources. The appropriate paperwork was given to the bank to stop withholding and social security taxes on these individuals. One individual elected to continue to pay into the social security system. This was done with the full knowledge of the board of directors. Paperwork was sent to the bank's corporate attorney. The board did not agree with our position but was advised by the attorney that it was a First Amendment issue and we had sent in the proper paperwork to the appropriate IRS office. He said this was between us and the IRS. Effective 1/1/98 all withholding for 4 of the individuals was stopped and federal & state withholding was stopped for the other individual. Over the next 12 months this was an ongoing issue for management and the board.

Prior to this, in the fall of 1997, these 5 individuals along with several other non-banking individuals decided to open an education center as a resource center to attempt to educate the citizens regarding their constitutional rights, Executive Orders, taxation, pure trust accounts, liens and levies, and many other issues that have been perpetrated on the American Citizen.

To make a long story short, in the spring of 1999, the CPA firm of the bank resigned citing our position of non-payment of taxes as, in their opinion, an illegal act. The board then hired a tax attorney to review our position. He just happened to be a former IRS employee. His advice to the bank was that if we did not pay the taxes then the bank was liable for them. They required us to complete W-4s as a condition of our employment and reimburse the bank for the social security taxes (initially) or be terminated. 3 of the 4 individuals reimbursed the bank for these taxes, the other person was terminated.

The tax attorney then computed an amount that he felt the bank was liable for regarding the federal and state withholding and adjusted the social security tax to include auto allowances and other funds paid to us. This amount was paid to the IRS and Franchise Tax Board, supposedly on our behalf. To date we have not reimbursed the additional amounts to the bank.

In July, 1999 the FDIC came to the bank to perform its regularly scheduled safety and soundness exam. They felt that because the bank was 'safe and sound', had good capital ratios, low delinquencies, etc, etc, etc, the exam would take approximately 3 weeks. Well, one thing led to another, (we have our own theories about how this came about) and after examining the bank for two months in October we were all terminated.

We are now in a lawsuit against the bank, FDIC, State of California Dept of Financial Institutions and various persons in their individual capacities. The FDIC has turned the matter over to the IRS and we are being investigated by the Grand Jury for Tax Evasion and Fraud (possibly some other charges that we aren't aware of, like money laundering). The bank is suing us for 'gross misconduct' and payment of the taxes.

We have been labeled by the bank's attorney as an 'extremist' group. I will tell you that we are honest, ethical, loyal American citizens that feel that our government is out of control and some one needs to take a stand and stop them.
If not me, (us) then who?

Thank you for letting me tell my story. I know I've left a lot of details out. It's been an extraordinary 3+ years, and the fight has just begun. Keep us in your prayers.
Hazel M. Hagy

"The Constitution shall never be construed... to prevent the people of the United States who are peaceable citizens from keeping their own arms."

- Samuel Adams

DISCLAIMER: The data on this website is the collaborative experience, contributions, and research of various websites, legal books, tax documents, researchers, associates, attorneys, CPA's, etc. and does not constitute legal advice. The primary purpose of this site is education. We do not advocate any specific course of action. What you do with this information and any course of action you decide to take, if any, is entirely your responsibility.

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