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Office of the Inspector General
 

About

 Bogus Sight Drafts/Bills of Exchange Drawn on the Treasury

There has been a proliferation of bogus sight drafts and bills of exchange drawn on the U.S. Treasury Department. These documents have appeared in a majority of states and have been used in an attempt to pay for everything from cars to child support. View image of a "Bogus Sight Draft" (230K JPG file, uploaded 12/12/2002).
 

The Story

A stripped-down version of this scheme is as follows: When the United States went off the gold standard in 1933, the federal government somehow went bankrupt. With the help of the Federal Reserve Bank, the government converted the bodies of its citizens into capital value, supposedly by trading the birth certificates of U.S. citizens on the open market. After following a complicated process of filing UCC documents with either the Secretary of State of the person's residence or another state that will accept the filings, each citizen is entitled to redeem his or her "value" by filling out a sight draft drawn on their (nonexistent) TreasuryDirect account. The scheme asserts that each citizen's Social Security Number is also his or her account number. As a part of the scheme, participants also file false IRS Forms 8300 and Currency Transaction Reports in the name of law enforcement officials and other individuals they seek to harass.
 

The Reality

Drawing such drafts on the U.S. Treasury is fraudulent and a violation of federal law. The theory behind their use is bogus and incomprehensible. The Justice Department is vigorously prosecuting these crimes. Federal criminal convictions have occurred in several cases. The Office of the Comptroller of the Currency has tried to alert the banking community to this fraud. See Suspicious Transactions, Fictitious Sight Drafts. (3K txt file, uploaded 5/16/00)
 

A Note on Bills of Exchange

With early and vigorous prosecution by the Justice Department on bogus Sight Draft cases, we have begun to see Bills of Exchange taking their place. This change occurred on or around January 2001. All these Bills of Exchange drawn on the U.S. Treasury are worthless. All the same issues and background materials applicable to Sight Drafts also apply to Bills of Exchange. This is the same fraud under another name.
For inquiries by anyone adversely affected by this fraud, please contact the Treasury Office of Inspector General (OIG).
Last Updated: 9/21/2012 2:15 PM
REPORT WASTE, FRAUD,
ABUSE
OIG Hotline: Click Here
For information about whistleblowing and reprisal and about your rights and responsibilities as a Treasury employee or contractor, please contact the OIG Whistleblower Ombudsman Program at
202-927-0650
or
OIGCounsel@oig.treas.gov

COUNCIL OF INSPECTORS GENERAL ON FINANCIAL OVERSIGHT
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The Council of Inspectors General on Financial Oversight was established by the Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203). Council members share information about their ongoing work, with a focus on concerns that may apply to the broader financial sector and ways to improve financial oversight. The Council is made of nine financial regulatory agency Inspectors General and is chaired by Eric Thorson, Inspector General, U.S. Department of Treasury.

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