Chapter 26: The Prison Industrial Complex and Bonding

    Since Roger has been in jail (2003-2007), several people have been diligently working on research to learn more and follow up on Roger’s personal research. Here is an e-mail that was circulated around and the research done. This material is very important. This sums up perfectly, with facts, exactly what we have been learning all along, and precisely what Roger has been talking about. This may be the most important document you read in this book. There may be many important “keys” to freedom within these next few pages. Almost this entire Chapter is credited to Lynn Schmaltz and Right Way Law. I personally contributed nothing to this chapter and I only include it in case it may be important and revelent. The Bid Bond, Payment Bond and performance Bond are described and explained and there is another conversation with Roger regarding the investment account portfolios based on prison inmates.


Owners of the Prison System in America
Profiteering off the prisoners / Prime stockholders in Correction Corp. of America / Funding Streams Exposed / Corporate Public Private Scheme Exploiting, Criminalizing Vulnerable People
Research and excerpts from LETTERS FROM JAIL

From: Lynn Schmaltz

     “I had many opportunities to educate women on the monetary system of jail. The moment an order is written, whether it’s a warrant or a traffic ticket, or whatever, the money machine is activated. Every prisoner has a monetary value to our government whether it’s local, county, state or federal. Bonds are written based on the person’s name and social security number and are sold through a brokerage firm such as AG Edwards or Merrill Lynch who has the contract to sell all the prison bonds for the city, county, state or federal prisons. Over 50% of the money market bonds right now are purchased in Japan or China. I’ve been told by researchers that Walmart and, used to be, Kmart also purchase these bonds, Walmart mostly doing so by emptying out bank accounts at night. Both companies are fronts for enormous money machines.

     “The way the bond works is that a monetary value is placed on the alleged crime and then factored the way banks factor their money. In other words if a person is convicted of a felony the ‘value’ would be $4 million. The county/city/ state then multiplies it by ten, so the bond that goes out for sale with the prisoner’s name and social security number is a short-term ‘promissory’ note. It’s offered at $40 million. Perhaps an investor will offer 40% of the $40 million, or $16 million. Once this ‘promissory note’ of the face value of $40 million reaches the banks it is then multiplied again by 200 to 300% and sold as bank securities. For those of you who wonder why the US has more people in prison per capita than any other nation on earth, you’ll begin to understand how we can have a weakening economy and still fund wars overseas. It’s all based on prisoners….in other words, prison for profit

     “Knowing all this and knowing that a prisoner can have a ‘net worth’ of say, $10,000 per day in the money markets, helped me explain to many bewildered women why they were in jail. We were only merchandise in a warehouse. The storage was pretty cheap; one woman while in jail researched the cost of feeding prisoners per day which ranged from 74 cents to $2.72 per prisoner per day.


From: “Lynn Schmaltz”

Sent: Friday, September 24, 2004 8:46 AM

Subject: Re: Paine Webber

Owners of the Prison System in America

     “*Owners of the Prison Systems in America* CORRECTION CORP OF AMERICA headquartered in Nashville, Tennessee owns all private prison systems in AMERICA and are selling the commercial paper. How it Works: A bid bond is done on Form 24, which comes out of the GSA Office (General Services Administration which is out of GAO (General Accounting Office} which is under the Comptroller General. This Blake Bond Bid Bond is promulgated at the time the social security card is issued. When you are arrested the bond is filled out and they issue a Performance Bond, which is done from Form 25, and then they do a Payment Bond, which is a Form 25A.

     “The Bonds are being underwritten by the Banks. This is where the PAINE WEBBER GROUP comes in. The Plaintiff in all criminal tax cases in the USA is the PAINE WEBBER GROUP as the UNITED STATES OF AMERICA. The PAINE WEBBER GROUP is a group of international businesses. The PAINE WEBBER GROUP is providing the Securities for the prisons and is selling the Bonds, and the Banks, The ABA (AMERICAN BANKING ASSOCIATION) like LEHMEN BROTHERS, in New York City, are the underwriters on the Bonds. The Banks (the underwriters) is where the money is originally coming from.

      “A six digit tracking number is issued for the Certificate of Stocks in the Commodity and Security Exchange in the USA by CUSIP (see and the law enforcement tracking software) and a nine digit number (called Ordnance Number) is issued for the Certificate of Stocks going internationally to ANNA  (Lynn’s note: see link for ANNA which is in Brussels, Belgium at  These Securities are sold through the Commodity and Security Exchange. The bottom line is they are selling stocks in the prison system. The jails are referred to as Warehouses and the prisoners are called Goods (oops, Lynn had it ‘wrong’….she told the ladies in Bernalillo County Metropolitan Detention Center that we were in the Warehouse and we were the ‘Merchandise’ which explained the many flimsy reasons many of the ladies were in the prison… was just business, and just revenue). They are selling the Goods or the Account as Chattel, and as Commercial Paper on the Stock Exchange. Reminds one of the days when slaves were bought and sold on the auction block!

    “The PAINE WEBBER GROUP is the prime stockholder in this CCA (Correction CORP of America). (Lynn’s note: the transport company who transported her to Colorado in a van with 16 other prisoners being transported about had the words “Transport Corporation of America….Nashville, Tennessee.” Transport rides are also called ‘diesel therapy’ by those who know about them.} However twenty of the largest companies such as WAL-MART; EXXON; GENERAL MOTORS; FORD MOTORS; CHEVY; TEXICO; CITY CORP; IBM; EXPHILIP; HEWLETT PACKARD; VERIZON; UNITED POSTAL SERVICE (UPS); and etc. are also involved as well as other stock holding corporations. (There are sixteen pages of the names of corporations that hold these stocks amounting to billions of [dollars].) Of course the monies generated is all off budget with no accounting to the People, even though the CORRECTION CORP OF AMERICA through the PAINE WEBBER GROUP is acting in the capacity of the UNITED STATES OF AMERICA.

     “AMERICAN LEGISLATIVE EXCHANGE COUNCIL: Promotes Privatization of the Prison System.  Paul Weybrick (may be miss spelled) runs what is called the FREE CONGRESS FOUNDATION, which owns the AMERICAN LEGISLATIVE EXCHANGE COUNCIL.  THE REASON FOUNDATION and THE CORNELL COMPANY are involved as well.

     “The following are notes I wrote after Paul and I were released from Colorado on August 20, 2004. Right now there are many forms of jail in the US–actual jail, CCP ankle bracelet, transport jail, probation, parole………they all generate income:

     “Paul and I were released on Friday on personal recognizance and allowed to go to New Mexico. We have a hearing in CO on Sept 13, 04.  We got home Sat. night and have been doing catch up here at home today. I’ll write an update on Monday or Tuesday. I will especially have some words about the very heinous prison transport system in our country. For now suffice it to say that it took 20 hours in a prison van with 16 prisoners to get from Albuquerque to Hot Sulphur Springs, normally an 8 or 9 hour trip.  All of us rode in hand cuffs and shackles the entire trip. There were 3 stops for McDonalds’ ‘food.’ No one but the officers got off the van unless they were being dropped off. No exercise at any point. No movement allowed but to use the porta potty on board. Cattle being transported across country are generally treated better. I talked with a man who’d been on transport from California to Colorado since July 8, 04. My transport date was August 11, 04.  Someone in the Midwest told me he knew of a prisoner being transported for six months and occasionally dropped off in a county jail somewhere to await a different transport van. It’s my understanding that once you’re a prisoner in the system, the county/agency holding you is floating bond for $10,000 per day with your name and your bar code (Soc. sec. #) and these bonds are bundled periodically and sold through Merrill Lynch, AG Edwards, etc. for each state.

     “Prison for profit……’s not just baloney and white bread. More later and thanks for keeping up your daily news. Paul was released from CCP (ankle bracelet) in Albuquerque and allowed to drive up to Hot Sulphur where he spent another 3 days in jail (my time over the summer has been 5 days in May, 18 days in June-July, 15 days in August and on house arrest, bond from May 24 to June 25, and ankle bracelet from mid-July to August 5, 04). Thankfully, Paul with all his transplant medications, diabetes medications, was in from May 19-24, 04. The rest of the time he was on bond or ankle bracelet house arrest. I doubt he’d have survived a prolonged transport situation. The alleged crime? “Influencing a public office” and “filing a false document.” This is what they called our UCC1 financing statement sent when we informed public officials there would be a fee for using our copyrighted property (PAUL SCHMALTZ and PATRICIA SCHMALTZ), which they did anyway.

     And, of course, there were no repercussions for those officials when they held a fraudulent, unpublished sale our home/business on the court house steps, etc. As you well know there is no remedy in the courts of any kind. They completely ignored our sovereign status with Little Shell Pembina and Apostille with the sovereignty filed by cancellatura.
Lynn Schmaltz


     “I just found the notes on Jack Smith and Gene Keating’s research on prisoner bonds (not the kind you bail out with). is the criminal justice tracking system software which shows the software that metro police departments use. Go to the user manual and it takes to 2% appearance bond fees. Then go to special operating software for courtrooms and it shows you how the 2% appearance bond fees are tied to the defendant’s account. Go to the bottom in the original user’s manual, and it says, “Fine accounting.” Further up the page is assessments. It shows how it’s all tracked from beginning to end. FONTDIV

     “A caller wrote to a court once and said, “Send me a complete accounting of my case.” It came back showing a $90,000 active security and they said, “Your paperwork has been forwarded to the Department of Justice.” The caller wrote a week later and said, “Send me a final pay-off amount for all my money. What would there be after 18 years without any fees, fines and interest.”

     “They said, “We sent all your stuff to the Department of Justice. Go to GOTOBUTTON BM_3_ and you’ll see all there is to see about a public witness. The caller downloaded it. Roger Elvick had written something about stock exchange transactions.

     “Once you get the bond you are creditor in fact.  Alan comes on the phone call with Jack Smith who had studied Roger Elvick’s stuff intensely. He understands marketing accounts and the courts. Roger had said, “We have to find a way to track the account.” The caller on Jack’s program grabbed the phone book and just randomly picked a brokerage company …….

     “AG Edwards. He called up to talk to a broker. Caller says he’s trying to figure something out. If there was someone trading bonds in the bond market in the caller’s name without his permission could he track the account. AG Edwards broker says they would have to have a social security number or a driver’s license number. Caller says he knows someone who was trading in Roger Elvick’s name. Broker asked if it was a friend, family member or corporation? Caller said to the broker it was a corporation. Broker then said every bond has a cusip #……..Committee on Uniform Securities Identification Process Number.

     “You can go to There are two main outlets — Chicago and New York. You’d have to find out who their transfer agents are and then you could track the trade. You can even find out if funds are being embezzled off the account.
     “When the cop gives you a ticket and you go into court, the judge is using this as a credit item to trade in the markets and he’s doing calls. What if someone went in and caught them short on the margin call?

     “The broker at AG Edwards knew what the caller was talking about. He said, “IF you want to follow this up anymore, you’ll have to go to the Securities Exchange division in your state. So, the next thing the caller did was check the Department of Financial Institution of his state on the web and looked up securities exchange division. The advisory committee showed AG Edwards was the transfer agent for the state, making all the bond trades.

     “The cop does all the paper work in the car. He is creating the assessment and the paperwork in his car when he makes out the ticket by using name, social security number, and driver’s license number. They assume you voluntarily gave it to the cop and make the trade. Every cop is a private business contractor working for the corporation. If this is true then you can follow up on every trade made in your name on your exemption. Find the bond written on your birth certificate. Use that and access your exemption through the stock market that way.

     “Roger Elvick knew this. The transfer and transfer agent and the number with social security number and every case number will be listed. Every traffic ticket will be listed. Broker says if Ameritrade had a trade he could track it, but he can’t track AG Edwards, and others. It’s going to take someone higher up. The brokers are enslaved by their industry. When you have a job your company is using your social security number.

    “They’ll keep taking your exemption even if you leave that company. AG Edwards sells the prisoner/traffic bonds for several states. How does this correlate with admiralty? Jack Smith says that in admiralty the vessels are carrying commodities and goods. So they carry invoices, packing slips and bills of lading. Warrants and securities back up the goods. Lag–goods that float on the water. Gene Keating says that Title 46 is the shipping code in admiralty. Secretary of Transportation is the receiver of the bankruptcy of the UNITED STATES — section 1247 Title 46–he’s the receiver and trustee.  He’s talking about the carriage of goods sea act which is Title 46 in the appendix. Bills of lading are all documents of title–warrants and documents are all under the UCC and deal with documents of title. Title 46 Sections 181-189–admiralty is very complex. Even judges are taught on a need to know basis.  Appellate judges often don’t know all this.

     “This all leads to different aspects of admiralty/maritime law, both inside and outside the courtroom. The carriage of goods act, Title 46, is all governed by the Secretary of Transportation–the Coast Guard, Secretary of Commerce and the treasury are all under Secretary of Transportation and it’s all in commerce. The Secretary of transportation is the head of the maritime commission. All vessels are registered under Title 46, Section 31-301 which talks about maritime liens that arise by operation of law. There’s a maritime lien commission. The Secretary of Transportation is running everything because we are all on the ‘highway of commerce’–the water came inland, so to speak, and now it’s here under the law of trust. Everyone who comes into the courtroom is a ward in admiralty–a ward of the court. We’re in an “in rem” proceeding in admiralty in a title dispute and we have to come in as the title holder or have interest or claim in the subject matter of the complaint, or we are the ‘vessel’ and they have arrested ‘the vessel.’

     “We’re not in common law in the courts, we’re in admiralty and they get jurisdiction by arresting the vessel. They (lawyers/district attorneys/law enforcement) don’t use the proper process and they need to trick, cajole, deceive, pressure us to do whatever they need to do and have us make a mistake to give them ‘in personam jurisdiction’ over us when we take on the attributes of a general appearance to the subject matter of the pleadings against the defendant “in rem” and we start acting in any capacity on the merits of the charges or by taking on the persona of the defendant vessel ‘in rem.’ There’s lots more to this, but I think you get the gist about ‘prisons for profit.’ (The following is an example of how a court appearance might go, if one was to utilize this information)

     (Ed. I have edited the following “Defendant/Judge conversation and shortened it slightly. The following conversation is hypothetical and only serves to illustrate the position one might be taking.)

JUDGE:  — Mr. you are accused of some very serious crimes. —- Now how do you plead?

THE ACCUSED Smith:  I will plead guilty to the facts, but not the crimes, but first I need to make sure there is an ACCEPTANCE BOND.

JUDGE:  What do you want a bond for?

THE ACCUSED Smith:  Whoever filed the complaint is making a CLAIM on me and in the Jurisdiction of Admiralty you cannot make a CLAIM unless you BOND your CLAIM

JUDGE:  Well what about that prosecutor?

PROSECUTER:  I’m not sure about that…no, no bond.

THE ACCUSED Smith:  What about a BID BOND? Do you have the bid bond?

JUDGE(pretending not to know) 

What’s that?

THE ACCUSED Smith:  — [Because] A BID BOND is what gets [then] filled out and if the defendant (or accused) does not close, settle, pay or discharge the claim he defaults or dishonors the court. The BID BOND, PERFORMANCE BOND and PAYMENT BOND gets sold to the U.S. District Court where these bonds are bought up by Insurance Companies and then sold on the open market, mainly to the Japanese and Chinese, which becomes the primary [collateral] source of our economy.

JUDGE:  Oh, —– THAT BID BOND. (acting as if he had inadvertently forgot about that)

PROSECUTER:  Judge this is ridiculous. This man is charged with multiple counts of crimes and the state is asking for the max.

JUDGE:  What about sir?

THE ACCUSED Smith:  —- Your honor, is this a TORT action or a COMMERCIAL CRIME

If it’s a TORT, then where is the INJURED PARTY or if it’s a COMMERCIAL CRIME, then where is the CONTRACT?

PROSECUTER:  Your honor, this is an outrage!!!  This guy is accused of murder.


—- Prosecutor… You have no CLAIM against him. 

—- It isn’t his responsibility to BOND YOUR CLAIM(S). 

—- Sir…..You’re free to go…


A BID Bond

BID BOND (Under $100K)
Application: This bond guarantees that if bid of principal is low, they will enter into a contract and file a Performance Bond.

BID BOND (Over $100K)
Application: This bond guarantees that if bid of principal is low, they will enter into a contract and file a Performance Bond.

Payment & Performance Bond

PAYMENT BOND (Under $100K)  Application: A payment bond is given by a contractor to guarantee payment, subject to the bond terms, for ………………………, which he/she is obligated to perform under the contract. This liability may be contained in the performance bond, in which case a separate labor and material bond (payment bond) is not issued.

PERFORMANCE BOND (Under $100K)  Application: The Contract Performance Bond is given by a contractor to an owner guarantees that they will faithfully perform the terms and conditions of a written contract

Admiralty Bond

Application: Miscellaneous & Personal Financial

Court bonds filed in connection with litigation under maritime law

     “And here is a short letter and description of the process Roger now suggest using. All of the questions provided, including all court strategies are intended around the same central concepts.  The Claim and the Contract. Understanding these concepts is essential more than anything else. Study these procedures and make sure you understand WHY they are important questions to ask and important principles to stand on.

IT is the ISSUE.
     “What is it? It is the issue of interest to proceeds. When you get to the point of them addressing you, you ask for the attorney/ prosecutor, to read the charges on to the record. (as you cannot SEE them as of yet) [read the Kobe Bryant case] when this is done, it puts the burden of proof upon them [calls them out, margin call]. Until that is done it is all presumption, and that is what they want you to argue about ‘presumption’ or “non-issue.’ Or “speculation.” They are trying to avoid the issue. Issue being the issuance of the bond.

     “The industrial society pays the interest to you when they release the order of the court (calling the bailee to the floor), to put the deficiency on the docket, and instructing the deputy of the circuit court to call the calendar, Bottom line, interest accrues from the principal and for the account to close, the interest must return to the principal. All taxes are interest payments back to the original owner (principal).
     “What is it? It is the issue. They are making an issue by making the claim, the claim being proceeds, that is the issue, the proceeds. Claim=proceeds. Proceeds=issue. Issue =claim Where is the issue and what are the proceeds. They are coming forward claiming there is an issue, but they are trying to avoid making the issue at the same time.
     “If there is an issue with the involvement of an identity in the resemblance of my ordinate appellation, then as the principal I have an interest in the disclosure of the proceeds, products, accounts, fixtures and services.”
     “One prays for the disclosure of the first ledger entry allowing for the double booking journal.
     “Be careful as they will try to play a little bait and switch and the judge will try to get away with reading the charges for the prosecutor. They are still NOT VISIBLE until the accuser /attorney or prosecutor reads them into the record.  [Declares the issue] any and all previous presentments have been erroneous “speculation” to this point.

     “Failure on their part to have this done is “denial of due process” and can bring the case back no matter how much water flows under the bridge.
     “Now tell the judge you would like to postpone your pleadings until you get discovery.
     “This I believe is the actual “call.”
     “Ascertaining the “proceeds” of a tax exempt bond “issue” is generally the first step needed to be undertaken to ensure compliance in the burden of proof [with arbitrage restrictions]. “proceeds, products, accounts, fixtures and services.”
     “Ask for the CUSIP no. of any and all bonds [Commission on Uniform Securities Identification Process numbers.  These ARE the issues!], YOUR copy of the 1099oid filings, the complete audit trail, vouchers, backend copies, omad, and omid.
     “Name of the damaged party, name of the issuer, who is the real party of interest, who is the holder of the account, who is the principal, who signed the forms generating the bonds as Attorney in fact!  Copy of your Authorization for all transactions.
     “Roger Elvick [Dec 5, 2003]: it might be time to direct attention to those who have the means to develop the methods one can issue or purchase options to SHORT actions that are taken like is against me, whereby the jail or warehouse holding the collateral can be put in the option to deliver the stock (prisoner) in the event of a margin call. Stockbroker might know people who are capable of working out these details even if he isn’t. Remember –the options are to be charged to the time it takes for the stock item to reach –0- bankruptcy. That condition might be determined in the equity statement or margin call when the bankruptcy is discovered. That might be when they miss their margin call etc. In these cases, they cannot use borrowed funds so the particular account will have to carry all the funds used to operate until maturity. This is where options come into play. Their purchase order is chargeable to the principal in the account and the option purchased is opposed to the victim who requests release to him. Then he needs to go short as well with his options too.  Now it is evident that the principal and victim are the same, then the discovery of the insolvent adversary leaves the victim in possession of the principal and the other just had his option run out. 

     “I strongly suspect when a warrantless arrest occurs, like they did to me, the same outfit that did this also sold options to pay their way up front. Those are the options that take the principal charge to –0-. They are averaged in reverse. These are what shows the bankruptcy and when they go SHORT they are also FORTH (or Fourth) which means that some sort of a tax deferral exists in each quarter of the taxable year and the fourth quarter is the quarter which sums up the tax deferrals etc. The end of the fiscal year. The end of the fiscal year in my case would be 90 days after I was arrested!
     “When we follow the process outlined above, we do not need a broker to do the “Call.” We can accomplish it ourselves right there in the court room.

    (Ed. Note: I think this is where Jack Smith from RWL continues to pick up the lesson.)

“The three elements of a contract:

  1. meeting of the minds.
  2. acceptance.
  3. consideration.

    “Where is the superior pre –existing contract?
Who is the real party of interest?
Where is the damaged property and the verified assessment of its value?
     “Let us get to the crux of the situation. We have “we the people of America” and the US Government Corporation. If “we the people” contract to become members of the US Corporation, there is no longer “we the people of America” as the De jure Government, as the Constitution says “by the people, for the people, of the people.” It is now the US Government Corporation elect. Since all the US citizens through contract have signed away the sovereignty of the “we the people. They now have become “Members” of the “Corporation.” But wait now, they have also signed a treaty with us, “The Constitution” which article 1 sec 10 clause 1, is the crux. “Congress shall make no laws impairing the obligations of contract.” So what is our first element of a contract? Yes, meeting of the minds, FULL DISCLOSURE.  Period, without this, there is NO contract. But here we have a treaty offered, made a public offering, but you have not “ACCEPTED” them on public record. This is the Superior pre-existing contract [treaty] between them and us. You must compel performance by your servants.

    “No matter who or what the situation it is you must get their oaths on record, especially in court cases. The judge the clerk the prosecutor, your attorney and of course his contract between you and him whether he is court appointed or you are paying him, put a “CERTIFIED COPY” of their OATH on the COURT RECORD “Accepted,” sign it and have it notarized and be sure to get copies and send everyone a copy of their accepted oaths and the contracts of the attorneys, your court appointed attorney has a contract with the court, ask for a copy of that also! You must supersede it with a new contract between you and him, thanking him for him working for you and having your best interest at heart. The court cannot expect any benefits from the gifting of the assistance of the court appointed attorney.
     Now you can ask for the consideration. Discovery, full and total.
     “It ALL about the contracts, that is what the courts are there DOING! Enforcing contracts. You put the contracts on the court record and the acceptance of contracts to their oaths and they will stand on their own. If you have paid service charges for anything that is a contract that you can formally accept. Now there is a contract in place showing they work for you and you can compel performance. Even CPA’s have an oath to IRS saying they will follow the rules, that is an acceptable contract. Or how about the CFO’s of corporations, I would think that they may be CPA certified. CONTRACT IS KING!

     “If one million people did this the “Government” would truly be back in the hands of the people, by the people, for the people.
Research explaining how living souls are made prisoners for the making of Billions of Dollars for the slave making Governments and their Banking henchmen through incarcerations.

     “I do not know for sure who wrote this but it looks to be right on the money in most cases.

     “Gxxx is investigating more into the criminal jail/prosecution aspects. The results are incredible. His strawman is currently on probation from activities that were the result of Cxxxx prosecution of 17 to 18 people who were attempting to help patriots to buy Cadillacs. He was put in jail for a year, then a half-way house.  He’s been researching admiralty. When he was ready to leave the half-way house he was caught on the computer creating a bill of exchange and the guards and matrons thought it was criminal activity so they jerked him back into jail for violating his probation for putting a blank bill of exchange. Jxxx had advised him that he had to quit fighting these people or he’d be in dishonor under admiralty and he had to keep raising questions rather than fighting and denying the charges. He was only in jail about 4 or 5 days and when they tried to interrogate him to get him ready for his hearing where the judge would eventually put him back into prison. He started using the correct tactic of accepting and asking questions. He got the prosecutor (assistant) to throw up her hands and scream he was too smart for her, to just get out. He’s been in a half-way house since May.
     “The last time he had a probation hearing with his officer in Cxxxx, he’d gone to the meeting personally. Before he went, he’d written a letter to her, the judge, the prosecutor, and others, and said that he requested that they deliver to him the bonds from CUSIP (Committee on uniform securities identification procedures (CUSIP) – the committee that assigns the numbers to securities for identification, usually bonds. – the committee that assigns which were being used to underwrite his time in prison and his time on probation. He wanted them to deliver the bonds being held by CUSIP and other government agencies so he could accept them for settlement and closure. When he went to his probation officer meeting he was disappointed because his probation officer wasn’t there to meet with him. He filled out a form and left. It seems that no one wants to talk with him or meet with him now that he’s asked for the CUSIP bonds so he can settle and close the bonds.
     “CUSIP is an acronym.  Gxxx is telling us that all criminal prosecution is for the purpose for raising revenue for the United States of America and he’ll tell us who that is. Now you’ll have a better understanding of why people are in jail, why they are in prison, why they are on probation and why they are charged with everything from jaywalking on up through murder one. Jack further heard from others researching, and Gxxx is also saying that every American soldier who dies in Afghanistan and Iraq probably carries a $10 million life insurance on him carried by our government. After all, every soldier, marine, or air force person is an asset to the United States of America. They have a huge investment in that particular soldier and his activity and it can explain why it is that the US is not so anxious to withdraw its troops from that area. It’s a money making activity and they don’t want to talk about the fact that they are making money on death and that they are making money the incarceration and imprisonment on otherwise good hearted people.

     “Gxxx: The key to finding out what you want on the Internet knows how to put it into the computer. If you put the right information in there, you get the right answer. He’s been finding out who the investor is the 144 holders. They have a rule called the 144 holder. The rule is that they can’t sell private investment securities that are not registered. The rule prohibits them from selling the prison bonds. They have to wait 6 months before they can sell a certain quantity of private securities without being registered, selling them as private securities. Basically there are 8 people on the board of directors of CCA (Corrections Corporation of America E. Russell, the top holder, and John M Ferguson. Russell owns 64,000 shares of CCA stock which is worth about $70 million. Ferguson owns 34,000 shares valued at about $37 million.

     “Fidelity Management and Research is the top stock holder, the top investment firm that is selling the bonds as investment securities. They pool them and sell them as mortgage backed securities. They also when they pool them, they sell them as mutual funds on the stock market. By pooling you mean the securities on the inmates. What they are doing is they are actually taking the mortgage backed securities, which are really bid bonds, performance bonds and payment bonds. They pool these bonds and when they pool them together they call them mortgage backed securities.  They take these to TBA which is the Bond Market Association. It’s an actual market for bonds. Anytime a bond is issued there has to be an underwriter. The bonds have to be underwritten. Bonds that are issued have to be indemnified so there has to be surety (spelling?) to indemnify the bonds. The brokerage houses and the insurance companies indemnify the bonds. They’re called surety companies.
     “After the surety companies indemnify the bonds, which are underwriting them, they do this through an investment banker or the banks themselves do this. They job it out to them. They buy up all these shares and turn around and sell them as investment securities. The shares represent the stock which represents the account of CCA. All of this has been funneled through CCA, the Corrections Corporation of America. What they are doing is selling stock in the prison system by selling the prisoners’ accounts as securities through the securities exchange. They are making huge amounts of money off it. They privatize the prisoners’ accounts and bring all these investors in and what they are doing is underwriting all these prisoner’s accounts (bonds). This is after the surety company guarantees the bonds.  Then they are underwritten through an investment bank or banker. Then they are put out on the market and resold to the public. In other words the banks are buying up all the shares and then they resell them as investment securities to the public. The public then buys them as mutual funds or they can buy them as debt instruments, equity instruments.

     “What they are really doing is they are buying up debt instrument. They are using the fiscal accounting cycle of accrual and they sell the prisoner’s ‘capital and interest’ as it is called in accrual accounting. They resell these to the public because the prisoner did not do full settlement and closure on the account. They sell the prisoner accounts as a commercial dishonor and sell it to the public as a commercial dishonor.

     “When you go in the courts they always say they are operating under a statute jurisdiction. The Black’s Law Dictionary 4th edition says a statute is a bond or obligation of record. That’s what all the criminal statutes are……..bonds or obligation of record. Go in and read the definition of a recognizance bond and you find that it is a bond or obligation of record. They are selling bonds. They are charging prisoners under a bond; the prisoner signs the bond and the bond becomes the agreement for the payback. This is done when the prisoner signs the final court papers at a sentencing hearing.

     “Jxxx: how many of us remember when our government attempted to finance from the private sector the Second World War. Weren’t they selling war bonds? They were soaking up the people’s equity in terms of buying bonds, transferring your funds to the government. The government by purchasing those bonds was promising to pay you back your investment at sometime in the future with interest. At that time what they were collecting from the people was their so-called cash equity. What Gene saying now is that people have gotten too poor, too stingy and too smart to buy bonds to finance the government? How long has it been since you heard the Post Office or anyone trying to get you down to buy US savings bonds?

     “So what they are doing now instead of getting us to voluntarily give our cash equity to the government for a promise to be paid back in the future, they are securing from us some violation of a statute by which the law ascribes from us a penalty; i.e., the payment of a sum of money due. Instead of collecting the cash from us, they put us through a criminal procedure where we dishonor the system and what Gene said is what is happening is they are selling our capital and our interest. In other words, they are selling the liability you had in whatever charge has been brought against your straw man. They are taking that capital and interest that you should pay and are grabbing that from us and selling it on the open market to bankers and investors to transfer their funds to government which is covered by the bond of the violation of your straw man of that statute. In order to secure the bond the living soul is placed in prison as the surety to back the bond which is financed on the investment of the public market place in terms of the sales of stocks and bonds.
     “The public doesn’t directly bid on my (the prisoner’s) debt.  Your debt is assumed by the bankers. The bankers issue secondary paper that allows me to invest in what they are holding as the holder in due course of the claim against your straw man. The reason they are doing this is because you dishonored the post settlement procedures for settlement and closure of the account. The prisoner should have come in and accepted and used his exemption. Since the prisoner dishonored the post settlement proceedings, then the prisoner is in dishonor and the issuance of the bonds by the financing system was done in order to pass the punishment on to him because of his inability to fulfill his post settlement objectives.
      “If you get into dishonor by non-acceptance, what they are trying to do is get an acceptor which is the same thing as a banker. They need someone to pay off the obligation and if you get into dishonor, they sell your dishonor and put you into prison as the collateral and they sell the bond. The bond is issued and they get a surety to underwrite the bid bond with a performance bond and then they get an underwriter to underwrite the performance and payment bonds. What the performance bond does is it guarantees the bid contract, or the bid bond. What the bid bond does is guarantee the payment of the performance bond. This is done through a surety company. Then they get an underwriter or an investment banker to underwrite it. After it’s underwritten, they sell it to the public as investment securities, debt instruments, or mutual backed securities.
     “It’s all done through bonds…bonding.  That’s what all these municipal bonds are. What they doing is following everything through the prison system. The prison system is being privatized.  Through privatization, private enterprise can fund the prison system cheaper than the government can. They are subsidizing everything through privatization.
     “ALEC does this; the American Legislative Exchange Council, promotes privatization through foundations like the Reason Foundation owned by David Knott. They get the foundations to promote this and get investors to come in. Cornell was merged with Trinity Venture Company, which is an investment company. What they did was changing their name to Reid Trinity Venture and then merged with SB Warburg. (Warburg was out of Germany or France and partnered with Rothschild). SB Warburg is in Chicago, Illinois, and they merged with BIF in Switzerland, which is a settlement and closure bank, and the biggest bank in the world for settlements. They are connected to Cornell Company, which is owned by David Cornell.
     “Everyone is tied in. Paine Webber Group is the United States of America and all the big international corporations are the stockholders and own all the stock in CCA. Everyone is using our exemptions on the private side. They filed a 1096 tax return and show it as a prepaid account, as prepaid interest and they returned it back to the prisoner. They took the prisoners deduction for the exemption and they deduct the tax and the IRS bills the prisoner for the tax. So the corporations are stealing your exemption which is your intellectual property. What’s wrong with this? They are not telling us what they are doing. It’s all commercial. When you go into the court room everything is commercial. Vxxxxx in her seminar says the facts don’t matter, the facts are on the moon. What matters is honor and dishonor. The courts have to dishonor the potential prisoner or get that ‘person’ to argue or get that person’s attorney to argue. Just like Martha Stewart. Argue and you’re in dishonor and you’ll end up in jail.

     “The attorneys are actors to make us think the whole process is a factual issue. They get us into the guilty/not guilty mode and they get into all the cloak and dagger or what evidence to present. It’s a dog and pony show to cover up that they are after the debt money. All corporations work on a fiscal accounting year which means that they spend debt. They can’t get rid of the debt and balance the books unless they run it through our accounts on the private side. We the people run on a calendar year and the corporations run on the fiscal year. They can only balance their books is to run it through our accounts using our exemptions. Then they can do their reverse bookkeeping entry and go to post settlement and closure. They can’t do that until the prisoners do the acceptance (if they do it). That what they are looking for in the court room under 3-410 is the acceptor.
     “That means we are assuming the liability for the debt as the principal. A lot of times with debt the principal is always the primary libellant in the commercial setting. He has to assume the liability and then you get your remedy. Otherwise you don’t get a remedy. They sell your account to some corporation while you’re sitting in prison.
     “How many times has government ever had a case against anyone? The attorneys have to attempt to get you to go right into argument and trial and go into dishonor. Axxxx was given documents from Redwood Trust on a mortgage foreclosure. She did a conditional acceptance and she did a heck of a job. She stopped them cold and they took the property off the market. At the end she said if they didn’t answer her within 14 days she was going to resort to notorial protest and get remedy for dishonor. She went into the fact that their charter doesn’t allow them to loan credit, she wanted to know the name of the company who was the source of the credit, she wanted the name of the account number, she wanted certified copies of the front and back of the promissory note. She was trying to get them to divulge that it was her secured party creditor that was the source of everything they were doing. She was forcing them to admit that it was her promissory note that was the basis of the credit instrument that they loaned and that they had already sold the note to someone else and they didn’t have it in their possession. What they do is they sell the notes just as they do when you go into prison. They endorse the note and they are no longer the holder of the note. The mortgage company wasn’t involved in this process….the attorneys are doing all this. What they are doing is coming to the private side to get the debt without any permission from the mortgage company. In this case they quoted from the UCC, and it’s from Lex Mercatoria, the Law of the Merchant.
     “If you read John Hall’s book it talks about letter Rogatory, indictments where you are indicted and brought into the court under a warrant. What the warrant is a demand for payment of debt. What they did under admiralty in the court room is they are demanding payment. You sign a bond to be released until the civil complaint is prosecuted and then they release you under the bond until civil bond is prosecuted. If you didn’t pay the debt they put you in prison until the debt is paid. They use the same terms in this practice book from 1700. This is an actual practice book. It was written by Courts Practice who worked in the Court of Arches for the Crown as a registrant. This is a private book, not meant for public viewing. It lays out the whole practice of admiralty during the American Revolution.
     “Hall translated this and put it in put it in district court in Maryland in 1809. This was written in 1692. It’s an actual practice. Benedict is not a practice; it gives information about what admiralty is. Admiralty is all debt and it’s all civil; it becomes criminal when the prisoner gets a contempt charge when he refuses to pay. They can keep you in jail until you pay the debt. The initial get out of jail bond releases you until you’ve successfully paid the debt. This book goes into the history and practice of admiralty. It tells how to set the bond, and do court room procedure. The laws haven’t changed; the circumstances of the government have changed so admiralty can be applied instead of constitutional law. Warden comes from admiralty-warden of the sea. The warden is the warehouse man who is warehousing all the goods; he’s the bailee. The commitment order is your bailment, your contract for the commitment of the goods. Then they put the goods in a warehouse and store them there (prisoners stored in prisons, just like the people stored in the pods in the movie, The Matrix). ***

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Chapter 27