On Wednesday, Nov. 14, 2007, federal agents used their resources on Asheville’s Liberty Dollar Organization (LDO) Office in order to get a seizure warrant for the alternative currency being produced as a replacement for the United States dollar. The agents then used the warrant to raid the Liberty Dollar National Headquarters, located in Indiana.
William Innes, the Asheville LDO’s currency officer, is on the Liberty Dollar’s national committee and was targeted in the federal investigation. Undercover FBI agents came to Asheville and joined our local Liberty Dollar association to begin the targeted bust. Asheville ranks in the top three cities in America for Liberty Dollar distribution, with more than 70 businesses participating.
Proponents of the dollars claim their currency is based on a private barter system that does not usurp the Federal Reserve. The dollars are either backed by both silver and gold to fight the inflation that has plagued the United States’ paper currency.
The Federal Government says anyone making or using the dollar is violating the law because it looks like federal currency. They have also asserted that the Liberty Dollar is in fact a "pyramid scheme" because it makes a profit with every dollar it produces and circulates. Apparently, a 20 dollar note only contains about 15 dollars worth of silver. The FBI states that this is grounds for a charge of mail and wire fraud, also noting that the company uses Federal Reserve dollars to conduct its regular business.
In the company’s defense, the US Treasury stated in 2006 that businesses could use Liberty Dollars—also with the US Dollar in swift decline that 15 dollars worth of silver could soon be 25 dollars worth of silver, as precious metals tend to gain value with economic decline.