Tom Lawler's 100 page Hissy Fit
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Transcript of Tom Lawler's 100 page Hissy Fit
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FILED IN CLERK'S OFFI EU . S . f X C . Aliania
Mm 2 4 zettIN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGM ^^^^^ ^^YfkATLANTA DIVISION
SECURITIES AND EXC HAN GECOMMISSION
Plaintiffvs.
Thomas J , Lawler and FR EE DO MFOUNDATION USA L L C dbaFREEDOM CLUB USA,
Defendant(s),
DIVINE SPIRIT L L C ,ORDER PROCESSING L L C
PROSPERITY SOLUTIONS L L C , andV I O L E T BLESSINGS L L C ,
Relief Defendant(s).
Civil Action FileNo. l:14-CV-02468-AT
DEFENDANT'S SUPPLEMENTALPLEA DING / DECLA RATI ON /MOTION TO AMEND / R E L I E FFROM JUDGMENT
DEFENDANT'S SUPPLEMENTAL PLEADING / DECLARATION
MOTION TO AMEND / R E L I E F FR OM JUDGMENT
In accordance with Fed. R. Civ. P. 15(d), Rule 59(e) and Rule 60, Defendant
Thomas J. Lawler, Pro Se, and under duress, hereby submits this
SUPPLEMENTAL PLEADING / DECLARATION / MOTION TO
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AMEND / RELIEF FROM JUDGMENT. Defendant must be allowed to
establish grounds for the admission of additional and newly discovered
information and evidence found during ongoing research and the attached
DECLARATION (See Exhibit A) to be considered under Fed. R. Civ. P.
15(d) and likewise under Rule 60. Defendants wish to correct clear error and
prevent manifest injustice as allowable under Rule 59(e). Defendant
employs Rule 15(d) and Rule 60 to enter new evidence that occurred to
Defendants in support o f arguments and seeks Amendment of Judgment
Denying DEFENDANT'S MOTION TO RECONSIDER ORDER
DENYING MOTION TO DISMISS as well as relief from ORDER ON
MOTION FOR TRO. A party may also seek relief from a final judgment for
"any other reason that justifies rel ie f" Rule 60(b)(6). For this, among other
reasons. Defendant Thomas J. Lawler respectfully submits the following:
SUMMARY AND B R I E F IN SUPPORT
1. In an effort to not restate in entirety, all previous submissions to
this Court by Defendant are hereby incorporated as i f fully set forth herein.
2. Defendant(s) proceed under great duress and have been denied
the court appointment of legal counsel and denied adequate fmancial
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provision to secure legal counsel in order to provide for and present a proper
defense. Defendant(s) have been denied due process.
3. Aside from Defendants' denial of due process, Defendant
maintains that Plaintiff has offered NO real valid basis or evidence, as it
relates to a "Private Club" or otherwise to bring said allegations against a
Private Club or its Founder, Members, Agents, et al. This question was
asked by the Court to the Plaintiff in a previous telephone hearing and
Plaintiff responded to the negative. Plaintiff should be compelled to support
this important point under the law.
4. Plaintiff is not a Private Club Member and thus is sorely
deficient in facts that only Private Club Members possess via ongoing
members' only conferences, Q & A and active participation in their own
studies. Plaintiff has not studied specific topics in question nor disproved
such theories, processes, and information. It is easy to discredit that which
one does not understand. There is no basis for the allegations of FRAUD.
There are hundreds of other 3''' party resources to support Defendant's basis
of information and administrative process and the long standing legal
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process o f the Notarial Protest. One need not be a Private Club Member to
study the many independent resources available but certainly must be a
participating Private Club Member to know and understand all of the facts,
which Plaintiff does not.
5. Plaintiff is not an injured party.
6. Benefits/services/programs, including the Administrative
Remedy, are not marketed or available to the general public. Private Club
Membership may be extended through invitation.
7. Plaintiff has engaged in egregious, reckless actions by
knowingly and intentionally ignoring, omitting and bastardizing substantial
truth and facts thereby bringing great harm upon the very people they state
they purport to be protecting by and through the ongoing TEMPORARY
RESTRAINING ORDER, ASSET FREEZE, AND OTHER EQUITABLE
RELIEF, as well as asserting their own spin of language and untruths in
order to proffer false and void allegations, among other things.
8. Defendants maintain that the Plaintiff has not established a
prima facie case but rather eloquently influenced the Court with their own
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"spin" and language, with no proof to the contrary of Mr. Lawler's
testimony, complaining fraud and accusations of "scienter" where they lack
understanding and knowledge. Plaintiff has in fact not proven "fraud" or the
intent and clearly has disproved their own accusations that Mr. Lawler acted
with a great deal of "scienter". By Mr . Lawler's testimony alone, one can
see his willingness to share whatever supportive facts and information he has
leamed over the years. Most of which may be researched and confirmed
through many independent resources. It is indeed difficult to gain enough
knowledge and understanding of the facts in one conversation, in one day
through one resource alone.
9. Plaintiff has infringed upon Defendant's First Amendment
rights.
PARTIES
10. Plaintiff: SECURITIES AND EXCHANGE COMMISSION
("COMMISSION" OR "SEC"),
11. Defendant(s): Thomas John Lawler, Defendant, Pro Se,
domiciled in the State of Georgia, FREEDOM FOUNDATION USA LLC
dba FREEDOM CLUB USA ("THE CLUB"), registered in the state of
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Nevada, VIOLET BLESSINGS LLC, ORDER PROCESSING LLC and
DIVINE SPIRIT LLC, each registered in the state of Missouri.
JUDICIAL NOTICE
7. Defendant(s) claim all rights at all times and waive none of
them at any time for any cause or reason.
8. Defendant(s) claim substantial Due Process rights to have
Findings of Facts and Conclusions of Law published with any order of this
court.
9. Thomas Lawler, Defendant, Pro Se, who is unschooled in law,
asks the court to take Judicial Notice of the enunciation of principles as
stated in Haines v. Kerner. 404 U.S. 519, wherein the court has directed that
those who are unschooled in law making pleadings and/or complaints shall
have the court look to the substance of the pleadings rather than the form.
10. Plaintiff(s) reserve the right to supplement and/or amend as
needed.
JURISDICTION AND VE NU E
11. Defendant continues to challenge jurisdiction and venue.
Plaintiff has placed an incorrect emphasis on an unassociated jurisdiction.
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Change of jurisdiction has previously been established and ignored. Parties
await Order from The Common Law International World Court for removal
of this matter.
FACT AND L E G A L BASIS
12. Defendants' have been denied Due Process. Defendant Lawler
comes before the Court, under duress, Pro Se, due to the fact that this Court
has DENIED him a court appointed attomey and additionally ordered a
TEMPORARY RESTRAINING ORDER, still in force as of this date,
disallowing enough Uquidity of ftinds to secure proper legal representation,
that which far exceeds what this Court has allowed as available. Since all
other named Defendants are non-living entities, cannot speak for themselves
and can only be represented by Court recognized legal counsel, they too
have been denied proper legal counsel by the unjust restraint and freeze of
available fiinds. There is no valid fact entered to support the severity of
order of action.
13. Mr. Lawler d id not appear in person at the scheduled hearing on
August 8, 2014 due to the restraint and deprivation of legal counsel so as not
to fiirther incriminate himself, not being schooled in law, procedure or
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technicality. He continued his unsuccessful effort to secure legal counsel. He
did, however, appear via telephone, was in fact patched through to the
proceeding, via telephone. The quality of the call was poor and was
terminated by an act of God in short order due to a thunderstorm and power
outage. Mr. Lawler called the court and explained the situation as power
retumed to the presiding Judges aide, Amy. No acknowledgment,
reschedule or retum call was provided by the court. For the record, Mr.
Lawler did not simply "skip the hearing" as was stated in PLAINTIFF'S
RESPONSE TO DEFENDANTS' MOTION TO RECONSIDER ORDER
DENYING DEFENDANTS' MOTION TO DISMISS. Another non trath
which seems
to be rampant throughout Plaintiffs pleadings.
14. A l l Defendants have been denied the right and ability to
provide for, much less present, a proper legal defense. Hence, Thomas J.
Lawler presents Pro Se.
15. Attached is a supplemental DECLARATION OF TRUTH,
submitted by Thomas Lawler. (See Exhibit A)
16. Defendant submits supplemental information, fact and law in
support under Fed R. Civ. P. Rule 15. As taught and pubHshed, by Georgia
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Perimeter College, accredited by the Southem Association of Colleges and
Schools Commission on Colleges, the first paragraph of Article I : Bill of
Rights,
rhttp://facstaffgpc.edu/~wbroadwe/State&Local%20Ch.%202.r)df),:
"Article I: Bill of Rights of The GeorgiaConstitution guarantees no Georgian will hedeprived of Life, Liberty, or Property
without Due Process of law. This basicallymeans, a citizen must:- be notified of intended govt, action,- have a right to a hearing,- be able to dispute the state s action,- call witnesses and present evidence, and- have the benefit of legal counsel.
(emphasis added)
Defendant(s) in this matter have been intentionally deprived of the benefit of
legal counsel.
17. During an event hosted Oct. 30, 2009, by the UNC Center on
Poverty, Work and Opportunity in Chapel Hill , N.C, Associate Justice
Patricia Timmons-Goodson noted that the United States is one of the few
Westem democracies that do not guarantee the right to counsel in civil cases.
That should not be acceptable for a country that has "assumed the mantle of
equality," said Gene R. Nichol, past Dean of UNC's law school. "You can
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call it justice because someone in a robe decides the case," said George
Hansen, the executive director of Legal Aid of North Carolina, "but really,
there's no adversarial process taking place." It would not be difficult to
establish a prima facie case when no adversarial process takes place", as was
the case in this matter. Defendant looks to the Court to reconsider whether or
not a prima facie case is indeed established. Defendant is not repackaging or
rearguing points but rather should be heard and considered, since they were
not, when deciding whether or not the Plaintiff did in fact establish a prima
facie case. Defendant asserts it was not.
18. Plaintiff offers NO valid basis or evidence to estabhsh this
cause of action much less continue their effort to support their void
allegations, as they relate to a "Private Club" or otherwise in order for the
Court to proceed against a Private Club or its Founder, Members, Agents, et
al. When asked by Judge Totenberg during the emergency phone hearing, i f
he had any experience or case law as it relates to a "CLUB", counsel for
Plaintiff, Pat Huddleston, I I responded to the negative. Plaintiff should be
compelled to support this important point under the law.
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19. A l l Club benefits/services/programs, none of which are
"investments", are offered ONLY to Club Members who have chosen their
own path of education. Club benefits/services/programs are NOT offered or
open to the general public. Plaintiffs allegations of "Unregistered
Securities" are void of any valid, legal basis.
20. Defendant argues and clearly disproves the securities allegation.
The supplemental information, facts and law must not be ignored.
21. "Howey Test". Justice Murphy formulated one of the U.S.
Supreme Court's earliest tests to determine whether an instrument qualifies
as an "investment contract" for the purposes of the Securities Act (which
later came to be referred to as the Howey test): The "Howey Test" clearly
proves that the contracts in question do not meet at least 3 of the 4 prongs of
the test: Plaintiff offers NO valid basis or evidence to establish this cause of
action much less continue their effort to support their void allegations, as
they relates to the actual noted cause of "Securities Fraud" and the
allegation, specifically "COUNT I - UNREGISTERED OFFERING OF
SECURITIES. Plaintiffs allegation is void of any vaHd findings of material
fact and fails the very test that their allegation is based upon. No registration
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statement need be filed or in effect as there was and is no offering of
securities.
22. Since the definitions of "Investment" and "Security" are so
broad, the authorities utilize these phrases/law as a catch-all whenever
convenient, as well as the widely used "Howey Test". In this matter, there is
1) no investment money (Club Members pay for administrative services
provided), 2) due to an expectation of profits (there are none expected or
promised, member must acknowledge in writing that services are provided
as "best efforts"), 3) there is a common enterprise obligated to cure the
judgments processed (which is the United States Department of Treasury
and NOT the Defendant(s) and 4) does NOT depend solely on the efforts of
a third party (but does depend on individual education, documentation,
information and the accuracy thereof and calculations of what they deem is
correct, provided by each individual who wish to engage the administrative
services and process, with no promise of outcome, along with The United
States Department of Treasury and what they deem is just and proper in each
individual instance).
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23. To draw a parallel, i f one engages a resume service/recruiter,
for example, who touts that their service is superior, that they have expertise,
information or connections where others do not (choosing to keep that
confidential and proprietary) and would help one to obtain the monetary
salary level or result they desire - would that service provider/contract also
then be guilty of selling a security? Would it also be deemed fraudulent
and/or deceptive i f that individual did not obtain desired results? One did
spend money, for an organization's or individual's services, wishing to
achieve a certain monetary results derived from the efforts of the service
provider. This, a parallel drawn demonstrating the broad application or
misapplication that can occur. This parallel can apply to most any service
organization or service provider i f one wishes to enhance the circumstance
to f i t their need.
24. Plaintiff also uses the term "ill-gotten gains" to describe monies
paid, categorizing all as such, and calls for the disgorgemenf of same
alleging that all Defendants and Relief Defendants have been unjustly
enriched. Perhaps the cost of doing business and related expenses have been
overlooked by the Plaintiff
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earning a return on the purchase price"(Op. 7),
not to use the phones, and ETS raised the money touse in operating the business. ""Second, it is sufficient for the required
"common trading" element if the interests are"offered and sold to a broad segment of the
public," as were the ETS units. 494 U.S at 68. ""Third, because Edwards promoted them as
"investments," the ETS units meet the"fundamental essence of a 'security.'" Id at 68-69."
26. First, in this matter, funds were not generated or used to fmance
investments but were generated were used to pay for services provided.
Secondly, the Club offers and sells nothing to the general public with the
exception of Private Club Memberships. Benefits/Services/Programs are
available only to Private Club Members. Third, the Club does NOT promote
"investments" or "securities".
27. Plaintiffs allegations of "Unregistered Securities" are void of
any valid, legal basis.
28. Furthermore, Plaintiff is attempting to conduct a mere witch
hunt with total disregard of true fact or lack of education or both. With
specific regard to the "Administrative Remedy" ("A/R"), the process by
which these void allegations are based, the facts are indisputable that
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administrative services are provided to effect a long standing, legal process
called "Notarial Protesf. NOTARIAL PROTEST, as defined in BLACK'S
LAW DICTIONARY FIRST EDITION:
"PROTEST. 2. A notarial act, being a formal statement in writing made by anotary under his seal of office, at the requestof the holder of a bill or note, in which suchbill or note is described, and it is declared
that the same was on a certain day presented for payment, (or acceptance, asthe case may be,) and that such payment oracceptance was refused, and stating thereasons, if any, given for such refusal,whereupon the notary protests against all
parties to such instrument, and declares thatthey will be held responsible for all loss ordamage arising from its dishonor. "
29. One must be a Club Member to engage in this process and
utilize these administrative services. A Club Member may engage this
process and utilize these administrative services as well as a number of other
Club benefits/services/programs, at their will , (subsequent to their own
research and conclusions), which is a part of their Membership Contract, and
in accordance with the rules and specific details of each level of service. One
cannot question that there is most certainly a strict intent of understanding
and meeting of the minds after reviewing agreements. All administrative
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services are provided to Members on a best effort basis. There is NO
promise of outcome, resuh, for services performed. There is no promise for
payment of benefit derived from any benefit/service/program. Payment is for
the administration of the service provided. Further, it is not a requirement as
a Private Club Member to participate in any one of the many programs.
Participation is solely by choice, subsequent to one's own research,
education, decision and ultimately information and calculation that they
themselves provide. Ignoring these facts would be the Plaintiffs own
admission to knowingly, intentionally and/or recklessly omitting and/or
disregarding truth and fact.
30. The fact remains that there was no valid basis and is still no
valid basis for Plaintiffs allegations. There are not sufficient facts to
support allegations that there are "securities" involved. Plaintiff
SECURITIES AND EXCHANGE COMMISSION has no legal basis and
allegations are void of legal standing or merit and truth and should not be
accepted as such. There are no proven violations of the Securities Act of
1933 and in fact are disproven in Paragraphs 21-23 herein. While, "on a
motion to dismiss, a complaint is viewed in the light most favorable to the
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plaintiff," anything can be well-pleaded, but the facts of the matter must be
true. The SEC has not proven a prima facie case of violations of the
antifraud provisions of federal securities laws and therefore should not be
given the forum to continue a void COMPLAINT and RESTRAINING
ORDER, ASSET FREEZE, AND OTHER EQUITABLE RELIEF. They
have proven nothing more than a Private Club, offering and providing
educational and administrative services/programs/benefits and Private Club
Members engaging in same as they so choose, subsequent to their own
research, and whose participation plays a role in the very outcome of each of
the various services/programs in which they engage.
31. Plaintiff inappropriately and untruthfully uses and assert their
own language, such as "investment" and "promise", among other phrases,
that are not used, not referred to, not mentioned, insinuated or otherwise
intended by anyone other than themselves. The Club does not advocate,
allow or perpetuate such language. In fact. Club contracts and
documentation clearly absolve themselves of same. I f Defendants became
aware of individuals engaging in untruthful language as such, that would
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and provided education and information and 3' '' party materials for Club
Members to do their own research and draw their own conclusions.
Defendant(s) have made no known untrue statements of fact nor leamed
omissions during the course of providing information and resources. The
Club may stand accused only of "leading" and not "misleading" Private
Club Members to do their own research, due diligence and form their own
conclusions based on many other resources. Members continue to provide
additional resources for the benefit of other fellow Club Members. Much of
the information and education offered by the Club was and is in fact
contributed by Club Members. We are a Club of Club Members and not
"investors" as is referred to and misstated throughout Plaintiff documents
and Court Orders.
34. Defendant(s) have not engaged in transactions, practices and
courses of business of fraud and deceit. Defendants have openly engaged in
processes of researched tmths and fact. The use of means or
instmmentalities of interstate commerce ... directly and indirectly, is
admitted as there was no fraud or deception or any reason to hide as one
might do i f in fact there were something unlawful to hide.
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35. In the case of a complaint, involving one who can only be a
Club Member (the Plaintiff is not a Club Member nor injured party), in the
event of a dispute, all Club contracts clearly define Arbitration and United
States Arbitration and Mediation Rules of Arbitration as the only remedy.
The Commission is neither a Private Club Member nor an injured party. As
a matter of fact, to date, there have been no known complaints brought forth
by any Club Member. Not one individual to date has exercised that option or
claimed injury.
36. In Paragraph 4. of Plaintiffs APPLICATION FOR
TEMPORARY RESTRAINING ORDER, ASSET FREEZE, AND OTHER
EQUITABLE RELIEF, Plaintiff refers to certain information as "spinning a
tale", in Paragraph 5., Plaintiff refers to certain information shared by
Defendant as a "fantastical story" and in Paragraph 12, there is reference to
"the scam". Further, in Plaintiffs COMPLAINT FOR INJUNCTIVE AND
OTHER RELIEF, Page 5., under FACTS, A. refers to "The Investment
Scheme. Paragraphs 19 - 21, fiirther poorly attempts to define bits and
pieces of information and education; none of which has been proven as
factual or true by Plaintiff. Plaintiff presents no factual evidence disproving
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or to the contrary nor enjoins in the suppression the millions of publications,
websites, organizations, individuals, etc., sharing and pubUshing the same
and/or closely related information.
37. There is much evidence to demonstrate the validity of facts as
leamed, known and believed trae by Mr. Lawler in his testimony. It would
be impossible to prove herein all information and facts in what has taken
years of study. Defendants supplement with evidence of trath and fact to
support their "fantastical story". One cannot dispute these facts. Defendant
offers more than adequate trath and fact to disprove fraud.
38. Modern Money Mechanics, A workbook on Bank Reserves and
Deposit Expansion, published by the Federal Reserve Bank of Chicago, is a
well known publication that describes how the banks create all money from
the "borrowers" signature on a promissory note (not from the bank's assets
or from its depositors). It is called "fractional banking". As stated in Modem
Money Mechanics:
"Of course, they (the banks) do not really pay outloans from the money they receive as deposits. Ifthey did this, no additional money would becreated. What they do when they make loans is toaccept promissory notes (loan contracts) in
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exchange for credits (money) to the borrower's
transition accounts.39. As an example, a deposit of a promissory note in the amount of
10 thousand dollars ($10,000) creates an expansion to 100 thousand dollars
($100,000), at a 10 percent reserve requirement. The "borrowers" signature
gave undisclosed permission for the bank to create the loan value ($10,000)
on its books as an asset without spending a dime. These funds were then
deposited by the seller (home owner, car dealer, school, etc.) to their bank
for further loans repeating the process over and over with each new bank
holding back the 10 percent reserve requirement (or prevailing Federal
Reserve rate) additively totaling $100,000 from the original $10,000 loan.
The "borrowers" signature just created 100 thousand dollars that was
fractionalized by the bank's conversion of your signature and promissory
note. 9 times any deposit can be created out of thin air. The bank not only
loaned back to you from the very deposit you made but also, got paid
multiple times through a credit from the Federal Reserve to the banks
reserve account and through pooling and securitization and the selling of the
asset backed security, as just two examples. The conversion continues to
perpetuate each time the "borrower" makes payment on an already paid
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account. As a matter of fact, this is not the Defendant's rule, spin or process,
but that of the Federal Reserve's Modem Money Mechanics. (Refer to
Exhibit C, Modem Money Mechanics, pages 7 - 1 1 ) .
40. Further, damages for "borrowers" who have paid again on a
paid "loan", is the fraud and basis for the Administrative Remedy, the
Notarial Protest.
41. Defendant also offers a copy of two of several communications
to the United States Treasury and President Barack Obama as preparation for
processing the administrative services performed. Great care was taken
"not" to bring harm to any banks or the US Treasury with payment of the
AR claims. These claim payments will cost neither the banks, taxpayers nor
the US Treasury even one dime with our proprietary process nor create any
new debt. This demonstrates the tmth, intent and integrity of the
Administrative Remedy. Further support is provided of the veracity of
Defendant's communications to members and prospective members by "The
National Economic Security and Reformation Act" compiled by Nancy
Detweiler, M . Ed, M . Div. This research thoroughly validates the fraudulent
banking practices, the illegal IRS, the unlawful Federal Reserve and more.
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This is not a "story" or a "spin" but is the pathway for remedy. (See Exhibits
D & E )
42. Bank statements clearly show all funds deposits and all
expenditures. Mr . Lawler has never taken a salary or commission from club
proceeds in the life of the club. He has an agreement to borrow on occasion
at a 5 percent annualized rate for personal use which has averaged from
$5,000 to $10,000 per year. Mrs. Lawler has a similar agreement and has
borrowed approximately $5,000 or less per year for the 10 years of her
related work. There are no lavish vehicles, no fancy home or lavish
vacations. The Lawler's have occupied their single residence for 29 years
with 2 vehicles of 95,000 and 160,000 miles respectively. Funds received by
the Club were used to support the organization, usual and customary
expenses and overhead, and the multiple benefits/services/programs, serving
Club Members. There are no hidden funds, no personal luxuries. Bank
statements and funds activity has been excruciatingly reviewed, transfers of
funds reasonably explained with no evidence of misuse of Club funds or
hidden funds that the Plaintiff seems to have convinced the Court, despite
reviewing bank statements to the contrary. Yet the Plaintiff continues to
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muster some believability for Court consideration and continuation of an
unjust cause void of any real fact to support their position, inflicting ongoing
harm and hardship on the Defendant(s). Absent any real, factual evidence to
support these allegations, this is, in fact, "spinning a tale" and a "fantastical
story", to quote the Plaintiff.
43. Evidence in support of the "emergency" actions taken against
the Defendants and Relief Defendants, were derived from a one sided story,
presented in a most enticing manner, including language and enhancements
far beyond that of the truth. The evidence offered by the Plaintiff included a
DECLARATION OF MATTHEW MCNAMARA and a DECLARATION
OF KARAZ S. Z A K I Attachments 1 and 2, respectively.
44. The DECLARATION OF MATTHEW MCNAMARA refers to
sworn testimony of both Thomas and Diane Lawler, both of whose
testimony was taken while under great duress, being grilled by multiple
parties and without the benefit of legal counsel. The DECLARATION
regurgitates and highlights certain chosen excerpts and establishes that there
is no securities registration. Questions seemed to escalate into a financial
and taxation witch hunt, revealing reasonably explained supported staff and
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business expenditures and focusing heavily on minor personal expenditures,
no salary noted, or any real unusual activity noted. Defendant Thomas
Lawler's testimony reveals cooperation and explanation, under great duress,
revealing years of research, and great belief in same and contact with the
"Treasury" with reference to the "ARs". Private Members, of which Mr.
McNamara is not, who engage administrative services, understand their own
obligation to do their own due diligence and proceed and that at no time are
promised any outcome. They are afforded administrative services for a fee.
Al l information, charts, figures, etc. is based on information that individuals
submit according to their calculations and is what is passed along to the
Treasury for consideration and payment.
45. The DECLARATION OF KARAZ S. ZAKI, CPA, employed
by the "Commission", reveals a cursory review of ten bank accounts,
identifying authority signatories, deposits and transfers, and a few specific
focal transactions, including a few personal transfers, not including any
salary paid to Mr. Lawler, since there was none. Just a vanilla summary of
sums, dates and select transactions. A l l of which were questioned and
explained under oath by Mr. Lawler. The DECLARATION of KARAZ S.
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ZAKI is merely one of accounting. Again, provides no legal basis in support
of Plaintiffs allegations Accounts were thoroughly reviewed during
Defendant's grilling and testimony.
46. Clearly there were and are no grounds for restraint of funds,
asset freeze or any other equitable relief The TEMPORARY
RESTRAINING ORDER, which was founded on mere supposition and void
of any wrongdoing or factual evidence to support such extraordinary
measures much less the allegations proffered by the Plaintiff, remains in
effect to date and should immediately be lifted.
47. Plaintiff and this Court have sorely infringed upon Defendant(s)
First Amendment rights by ordering suppression of certain information and
statements, orally or in writing, statements of which have not been rebutted,
have not been proven as not facttial supported by any material fact to the
contrary and thus stands as material fact. Certain statements and information
that have been researched and made public for years and can be found in
many resources, publications and other websites. Yet the Defendants are
suppressed and denied their First Amendment rights to speak on these
matters. Are all those who have done their due diligence and communicate,
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either written or verbally on these same matters to be suppressed as well?
Are they all deemed fraudulent?
48. One can easily search the intemet and YouTube videos where
thousands of resources may be found and explored, specific to the very
information that we are being unduly restrained from sharing and in large
part what these void "Fraud" charges are based upon. A l l , including
Defendants' information, is provided for and is intended as information and
education only, for those who choose to do their own research.
49. In the landmark case of Reno v. American Civil Liberties
Union, 521 I L S . 844 the Supreme Court found, in summary, that the
Intemet was a "protected" form of communication in roughly the same way
that a book was. It had the added benefit of additional protection, since it
was an on-demand method of communication.
50. We are a Club that offers a great deal of information on many
different topics, we implore those who are uneducated to do their own due
diligence and findings of fact in order to draw their own conclusions.
However, suppression and denial of First Amendment rights is no doubt a
serious matter.
29
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SUMMARY
51. Defendants have offered more than adequate argument and
credible grounds to amend judgment and for relief The Commission has no
real interest in this matter and has not established good cause to continue.
The allegations are void and without merit and standing and thus, as a matter
of law, must be reconsidered and dismissed. Plaintiff simply cannot be
allowed to holler Fraud as a remedy for lack of education or understanding.
Fraud has not been proven. It is clear that the Plaintiff moved this Court on
assumption, without adequate findings of fact and in a most expedited
manner, in concert with the deprivation of the Defendant(s) to secure and
provide adequate legal defense. The ability for the Defendant(s) to secure
legal counsel at all has been denied and fiirther railroaded. The Court based
its decision on a one sided, skewed story, unethical spin, contrived language
and assumption, presented by the Plaintiff to fit their need. The story spun
and the continuance of an action void of substantial evidence in support is a
travesty.
52. In a trial last November, 2013, Judge Duffey, in THE UNITED
STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
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GEORGIA ATLANTA DIVISION, rejected insider trading charges of a
defendant who had a longtime friendship with a chief executive. I n S.E.C. v.
Schvacho, on January 7, 2014, the Court found for the Defendant because
the SEC did not meet the burden of proof
53. While the natures of the matters clearly differ, the law does
not. The SEC failed to meet the burden of proof in this matter.
54. It is a known fact that the Commission did not enjoy a winning
year i n 2014, with several notable losses taking center stage and would look
to put a winning feather in their cap. In one article published by Law360,
New York on June 09, 2014, Thomas Gorman, former SEC trial counsel is
quoted saying, " I f you don't have the facts, you don't have the facts".
55. In consideration of the overwhelming argument and
supplemental Pleading showing that the Plaintiff was unable to prove their
claims and did not meet the burden of proof to establish a prima facie case,
but was nothing more than a preponderance of one sided twisted bits of
information spun into a palatable presentation to suit their needs, and as a
matter of law, this action should be dismissed and the Plaintiff sanctioned
for misuse of law and deceptive practices, at the very least.
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56. As a final note, the Defendant(s) may never recover from the
harm inflicted by this action.
PTj A V F R F OR R E L I E F
Defendant(s) seek the following relief:
12. Relief of Judgment by way of an Order lifting aU restraints and
releasing in its entirety, all pending Orders against Defendants in this
matter, including ORDER TO SHOW CAUSE, TEMPORARY
RESTRAINING ORDER, ORDER FREEZING ASSETS AND FOR AN
ACCOUNTING, ORDER PROHIBITING DESTRUCTION OF
DOCUMENTS, AND ORDER EXPEDITING DISCOVERY. The Club is
an operation of about 10,000 private memberships encompassing about
20,000 people. Club Members, none of which are complaining parties, are
being unduly harmed alongside the Defendants and Rehef Defendants.
13. Amendment of judgment DENYING Defendants' Motion To
Reconsider Order DENYING Defendants' Motion to Dismiss and an order
GRANTING dismissal with prejudice.
14. Court fees and any and all costs of this action against the
Defendants; and.
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15. Any other relief the court deems just and proper.
Dated this 2V day of October, 2014.
/s/ Thomas J. LawlerThomas J. Lawler5077 Tanaga CourtStone Mountain, GA 30087
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C E RT I F I C AT E OF COMPLIANCE
In accordance with Local Rule 7.1D and 5.1C, I hereby certify that the
foregoing has been prepared using Times New Roman 14 point font.
This ay of October, 2014.
/s/ Thomas J. LawlerThomas J. Lawler5077 Tanaga CourtStone Mountain, GA 30087
34
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C E RT I F I C AT E OF S E RV I C E
I hereby certify that on November 2V\ 2014, I mailed the foregoing
document with the Clerk of this Court and served the same, via U.S. Postal
Service on the following:
PAT HUDDLES TON, H , SR . T R I A L COUNSELU.S. SECURITIES AND EXCHANGE COMMISSION950 East Paces Ferry, N.E., Suite 900Atlanta, GA 30326-1382
MATTHEW McNAMARA950 East Paces Ferry, N.E., Suite 900Atlanta, GA 30326-1382
ICARAZ ZAKI950 East Paces Ferry, N.E., Suite 900Atlanta, GA 30326-1382
G R E G O RY SM OLER950 East Paces Ferry, N.E., Suite 900Atlanta, GA 30326-1382
MADISON G RAHAM LOOM ISRegional Trial Counsel950 East Paces Ferry, N.E., Suite 900Atlanta, GA 30326-1382
FREEDOM FOUNDATION U SA L L C
Dba F REEDOM CLUB USARegistered AgentLaughlin Associates, Inc.9120 Double Diamond ParkwayReno, NV 89521
35
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DIVINE SPIRIT L L C
Registered AgentIncorp Services2847 S. Ingram Mi l l Road, Suite AlOOSpringfield, MO 65804-4006
ORDE R PROCESSING L L CRegistered AgentIncorp. Services, Inc.2000 Riveredge Parkway, NW, Suite 885Atlanta, G A 30328
PROSPERITY SOLUTIONS L L CRegistered AgentJudith Harris950 Herrington Road, C 197Lawrenceville, GA 30044
V I O L E T BLESSINGS L L Cc/o Diane Lawler5077 Tanaga CourtStone Mountain GA 30087
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IN THE UNITED STATES DISTRICT COURTF O R THE NORTHERN DISTRICT OF GEORGIAATLANTA DIVISION
SECURITIES AND EXCHANGECOMMISSION
Plaintiffvs.
Thomas J . Lawler and F R E E D O MFOUNDATION U SA L L C dbaFREEDOM CLUB USA,
Defendant(s),
DIVINE SPIRIT LLC,ORDER PROCESSING LLC
PROSP ERITY SOLUTIONS L L C , andV I O L E T BLESSINGS LLC,
Relief Defendant(s).
Civil Action File
No. l:14-CV -02#8 -AT
DECLARATION O F Thomas Lawler
I , Thomas J. Lawler, in accordance with 28 U.S.C. 1746, do
declare as follows:
1. My name is Thomas J. Lawler.
hereby
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2. I am over 18 years of age and legally competent to make thi^
Declaration.
3. I am the Founder of Freedom Foundation USA LLC dba FreMom
Club USA and the Manager of Divine Spirit LLC and Order |
Processing LLC.
4. have not knowingly or intentionally misguided or misquote^ any
researched fact.
5. I have always been open and cooperative in sharing information and
answering all questions to the best of my knowledge and belief.
6. I have provided live Q & A on weekly conference calls for Ivlembers
and prospective Members to receive M l disclosure and ask ^ y
questions of their choosing,
7. I believe that I have always acted in the best interest of the
Membership and all disbursed funds have been spent to furtlier the
objectives of the members and Membership.
8. In Ught of this SEC situation, we have had to suspend commjinication
with the Treasury and delay forward progress toward Member
settlements.
9. To date, there has been no payment forthcoming from the Treasury
2
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10.1 have always advocated that Private Club Members and prdspective,rd
tial study
Members do their own due diligence and have provided man|y 3
party resources for their research.
11 .The Member must verify that they have completed a substan|;
and proven understanding of the basis of the Administrative flemedy,
related history and full information before providing data an^
engaging services.
12.Members are clearly advised and must agree at multiple stagbs
(Member Agreement, at order placement and on intro and mijmber
conference calls), that there is no promised outcome and all ^ervices
are provided on a best efforts basis.
13.Industry and case law research is the foundation fo r the calci^lation of
settlement which ultimately will be settled by the United Stal
Treasury.
14.Based on the administrative package submitted to the Treast^, I am
confident that settlement calculations provided by individual^ are just
and will be acceptable by the Treasury.
15.1 am confident in these statements based upon a proprietary process
whereby it will cost neither the Treasury nor the Tax Payer a^iythingand add zero to any debt.
es
3
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16.1 have spent U years and tens of thousands or hours researct^g
sources from credible authors, lecturers, articles, papers and jreatises.
Sources include but are not limited to:
a. G. Edward Griffin (The Creature from Jekyll Island)
b. Nancy Detweiler, M.Ed., M.Div. (History of NESAR^)
c. Dr. Harvey F. Bernard (Draining the Swamp)
d. Eric Madsen, Trustee (Team Law)
e. Black's Law (Multiple Editions)
f. Bi l l Benson (The Law That Never Was)
g. Rep. James Traficant, Jr. (Ohio) gune 1933 Bankruptcy o f the
United States, HJR 192, 73 * Congress)
h. Paul Andrew Mitchell, B.A., M.S. (14* & 16* Amendment
Fraud)
i . Louis McFadden, Chairman of the House Banking ani
Currency Committee in the 1930s
j . Congressman Charles A. Lindberg, Sr. (Money Trust
Investigation)
k. Board of Governors (The Federal Reserve Act)
1. Sam Bouman (Real Freedom)
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m. Russell L . Munk, Assistant General Council, Department o f
Treasury (Federal Reserve Notes are not dollars)
n. And hundreds more
I declare under penalty of perjury that the foregoing is true and
best of my knowledge and belief
SIGNED this 21 day of November, 2014.
cortecttothe
Thomas J. La\vler
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Freedom Club USAEarly Bronze Membership Agreement
4002 Hwy 78, Suite 530-321, SnellviUe, GA 30039
This Independent Contractor Agreement (the "Agreement") is made and entered between an independentcontractor, hereafter referred to as "Member", and Freedom Foundation USA, LLC (FFUSA) dba Freedom ClubUSA (FCUSA), a Nevada Limited Liability Company with a primary office located 2533 N. Carson St., CarsonCity, Nevada, 89706 with primary mailing office at 4002 Hwy 78, Suite 530-321 , Snellville, 30039, hereafterreferred to as "FCUSA" or "Company". Upon acceptance by both parties, this agreement replaces any existingAmbassador, Referrer or Consultant Independent Contractor agreement between the parties for all futurebusiness. FFUSA and FCUSA are synonymous throughout this agreement.
FCUSA, upon verification and deposit of member funds thru the online order form and at the sole discretion ofFCUSA, will activate such Member into Freedom Club USA Early Bronze Program.
Member dues are as follows:
Membership dues are $300 annually or 1000 lifetime. The annual membership includes the member, spouseand their children living with them up through college age at time of membership acceptance by FCUSA. Norenewal fees are due for annual memberships until "interim or Administrative Remedy (AR) funding" takes place.Upon funding, each individual within the family will continue their membership but convert to an individuallifetime membership and unique member number upon submission of their first Administrative Remedy (AR)from which 1,000 will be deducted one time and automatically renew annually thereafter with no furthermembership payments due.
Club benefits:
Your membership in Freedom Club USA is a non-voting membership and is limited to use of clubbenefits. No ownership, other duties or obligations apply to your membership other than stated herein.
Member has full access to all club education programs and all future programs at the posted fees.
Member has access to these programs for the length of their membership beginning from the date ofacceptance by FCUSA of this agreement.
Member may extend their membership for each additional year or for life at the then currentmembership fee upon club approval.
Membership applies to an individual only (each spouse or child of legal age must acquire their ownmembership).
Current and upcoming programs include but are not limited to education regarding: mortgages, creditcards, student loans, car loans, IRS, CRA, prosperity training, wellness programs and health products oras added, removed or adjusted at the discretion of FCUSA.
Members are required to complete FCUSA Study Guides to receive backend payment.
All programs are the member's processes until assigned to FCUSA for processing and payment, and are offeredon a best effort basis with no guarantee expressed or implied on any program, current or future. Onceassigned to FCUSA, they are held and controlled by FCUSA for the life of the process. Member payments for alleducational processes are payable to "Freedom Foundation USA" via money order or cashier's check.Membership Agreement is accepted only after review of your "Membership Application" by FCUSA and emailconfirmation.
Membership dues and program costs are not refundable or transferable. Upon funding of your first AR orcommissions, a lifetime membership fee, QE and Coaching will be assessed and deducted from your account.
Costs:
Annual membership: $300
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Lifetime membersi i ip: 1000 one timeFinancial Access Service: $300 one timeFull Pay Programs: $2700 eachBooster 1: $1000Booster 2 : 1000B Programs: $1200 eachQE: 795Coaching: $495
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I. R U L E S OF DISBURSEMENT
1. Early Bronze members may purchase Administrat ive Remedy (AR) educational programs as desiredwith the cost of the remedy credited back to the member during their backend payout.
2. Special Early Bronze Payouts: Should the Early Bronze member submit one or more ARsand pay in 7 days (US) or 14 days (International) prior to Full Bronze Membership webannouncement, the member will lock in the EARLY BRONZE higher rates on ail their ARsubmissions for the life of their membership. Submission of an AR during this phase willalso complete sooner and will likely accelerate the funding payout. Should the Early Bronzemember not submit an AR prior to Full Bronze Membership web announcement, their ARs willdefault to the normal "Payout" amounts below. The member may choose a "B" program ontheir first AR submission only to lock in Early Bronze rates with the exception their "B" programwill pay out as indicated below.
> .A."* \ |i j Nil fif
Credit Cards, Auto and
Student Loans
Programs S 2.700Pnyout S 250.000Early Bronze
Programs S 2.700 Iprograms $ 2,700Payout S 250.000 jPayout $ 100,000Early Bronze Early Bronze $ 150,000
Booster 1 S 1,000Early Bronze
Booster 1 S 1,000 Booster 1 $ 1,000Early Bronze Early Bronze $ 250,000
Booster 2 S 1.000Early Bronze
Booster 2 $ 1,000 Booster 2 $ 1,000Early Bronze Early Bronze $ 350,000
B Program S 1.200Payout
B Program S 1.200 B Program $ 1,200Payout IPayout $ 50,000
3. When FCUSA receives the proceeds from funding source, FCUSA will disburse monetaryfunds due Member within 10 business days of receipt.
Once FCUSA has received your payment and approved your membership, you are entitled to use allclub benefits. Some club benefits (QE and Coaching require an additional fee but will be deductedfrom your first AR payout). The membership payment date shall be the date upon which yourmembership will begin and from which all club renewals will be calculated. Please contact yourambassador should you have questions about the program or visit www.freedomclubusa.com.
CONTRACTURAL SHARING: FCUSA does not condone contractual sharing of member's backend
distributions with any referring parties. Should the member have contracted with any source (writtenor verbal) prior to or after signing of this agreement for purposes of sharing backend proceeds fromthe sale, trading or other benefit from your AR from the FCUSA program: your agreement with FCUSA will be null and void all monies paid for educational programs, dues or services wil l not be refunded to member all work on your educational program will cease. no further disbursements will be made to member. All third parties involved in the contractual sharing will be excluded from FCUSA membership and
processes and if already involved in a process, no payout or refund will be issued to the thirdparties.
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By accepting your membership with FCUSA, you are acknowledging all these terms and conditions.
[[. N O N - D I S C LO S U R E / N O N - C O M P E T E
Recitals
A. "FCUSA" wishes to provide "Member" certain educational information pertaining to debtresolution/equalization including, but not limited to: mortgages, credit card, car loans, studentloans, IRS and other programs plus all variations of these. This includes all communication ofinformation between the parities in any form whatsoever, including oral, written and machine-readable form, pertaining to the above.
B. "FCUSA" is providing this educational information to "Member" for the purpose of providing assetreclamation and asset protection information, which is to be confidential and regards saidinformation to be as a trade secret. FCUSA desires to protect those parts from unauthorizeddisclosure or use (such confidential trade secret parts being hereafter collectively referred to as"Information").
C. "FCUSA is willing to disclose "Information" to "Member" on the terms and conditions set forthherein.
D. "Member" agrees not to compete with "FCUSA" or disclose "Information" per the terms andcondition set forth herein.
E. Should "Member" wish to contract as an Ambassador with FCUSA; the "Member" can applyonline.
111 AGREEMENTS
Therefore, "FCUSA" and "Member" agree as follows:
1. "Member" shall:a. (1 ) Not disclose "I nformation" of "FCUSA" to any other person and (2) use the
same degree of care to maintain th e "Information" confidential as "Member"would use in maintaining Me mbers own confidential Informati on, bu t always atleast to a reasonable degree of care;
b. Use the "Information" only fo r the above purpose;c. No t compete wit h "FCU SA" by utilizing "FCUSA" educational pr ocesses fo r their
own use or to sell such educational processes to any third party without theexpress written permission of "FCUSA";
d. Upon any termination, within fifteen (15) days following request of "FCUSA",return to "FCUSA" all documen tatio n, copies, notes, diagrams, computer
storage media and other materials containing an y portion of the "Information",or confirm to Owning Party, in writing, t he destruction of such materials;e. No t allow any "non members" to 3 wa y or take part in "member's only" calls or
information nor divulge "Member" onl y login or passkeys to non members.
2. Disclosure. This agreement imposes no obligation on "Member" with respect to any portionof th e "Information" received from "FCUSA" which (a) is or becomes generally known orpublicly available other than by unauthorized disclosure, (b) is independently developed by"Member" or (c) is disclosed by "FCUSA" to a third party without a duty of confidentiality onth e third party.
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3. Confidentiality. "CONFIDENTIAL" includes, but is not limited to all written an d verbalcommunication provided to "Member" by any means .
4. Property. The "Information" shall remain th e sole property of "FCUSA". "FCUS A" makesno representation with respect to, and does not warrant an y "Information" provided under this
agreement, bu t shall furnish such in good faith. Without restriction th e generality of theforgoing, "FCUSA" makes no representations or warranties, w hether written or oral, statutory,express or implied with respect to the "Information" which may be provided hereunder,including without limitation, any warranty of merchantability or of fitness for a particularpurpose. "FCUSA" shall not be liable for any special, incidental or consequential damages ofan y nature whatsoever resulting from a receipt or use of the " Information" by the "Member".
5. Breach. In th e event of a member breach or threatened breach or intended breach o fthis Agreement by "Member", "FC USA" may proceed with terminatio n of the membershi p asoutlined in Breach and Termination below.
6. License. "Member" will no t export, directly or indirectly, any technical data acquired from"FCUSA" or any produc t utilizing any such data to any country fo r which the U.S. G overnment
or any agency thereof at the time of export requires an export license or other governmen talapproval, without first obtaining such license or approval from "FCUSA".
7. Rights. The Rights an d obligations of the parties under this Agree ment may not be sold,assigned or othenwise transferred. By signing this docume nt wit h my electronic signature I,th e Assigno r "Member", without recourse, irrevocably assign to Freedom Foundation USA,LLC, the assignee, its successors and assigns, all Administrative Remedies (AR) theyprocess on my behalf together with th e property descript ions and properly secured, an d alsoall the rights including rights of holder in due course, title an d interest of the Assignor of andto the assets desc ribed in the AR.
8. Privacy: IVlember agrees to not d isclose to any parties ou tside of their di rect family,F C U S A an d essent ial financial parties regarding an y amount or percentage a memberhas received a s a result of any educational process offered by FCUSA.
9. Inoui r ies . Member agrees to respond to any inquiries from law enforcement or legalauthorities or courts that vou are under a non-disclosure contract an d canno t divul ge anydetails of this agreement or with whom it is made. Any violation of these non-disclosurerules can mean reduction of any of member 's back -end payouts to a minimum of 10%at the discretion of FCUSA.
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1 0 . Entrapment. Member agrees to disclose in writing to FCUSA headquarters that if true, themember is an agent f or Federal, State, o r Local agencies being officially or unofficially on amission of entrapment or for any investigative purposes im mediately upon or before enteringinto this agreement.
1 1 . Relationship of Parties. Contractor is an independent contractor of the Company .Nothing in this Agreement shall be construed as creating an emplo yer-em ployee relationship,as a guarantee of future employment or engagement, or as a limitation upon either party'ssole discretion to terminate this Agreement at any time without caus e. Contractor further,agrees that, if the Contracto r determi nes that he/she is a "taxpayer," or is a party made"liable," then th e Contractor shall be responsible fo r all of Contractor's federal and state taxes,withholding, social security, insurance, and other benefits.
12. Free Will. Member is participating in this educational process and any subsequenteducational process, solely on their own behalf and of their own free will.
1 3 . Indemnification. The Member agrees to indemnify and hold harmless FCUSA , FreedomClub USA, FFUSA, Freedom Foundation USA, LLC and their officers, directors, employees,consultants, referrers, ambassadors representatives, members and agents from an y an d allclaims, damages, failure to perform, breach of contract, or any othe r potential liabilityregarding the benefits and services as offered by FCU SA. ". "FCUSA" agrees to operate ingood faith and put fo rth a best effort t o monetize th e administrative remedy / AR judgments.Al l processes/programs and/or services ar e provided to member on a best efforts basis.FCUSA reserves the right t o amend this agreement from time-to-time with any newprovisions binding to both parties as is necessary to memorialize accuratel y this agree mentbetween Member and FCUSA and accurately depict the agreement between FCUSA andmember an d to maximize the administrative remedies- pa youts of the Member and FCUSA .
"Member" hereby agrees, warrants and attests that they will provide true and accurateinformation, at all tim es, to the best of their knowledge, and will a t no time knowingl y and/orwillfully misrepresent, or provide false, misleading, or inaccurate information.
"Member" agrees that they ar e solely responsible fo r the validity and accu racy of any and allinformation provided to "FCU SA" Freed om Club USA and/or "FFUSA " Freedom FoundationUSA, LLC, e t a l .
14. Death or Permanent Incapacity of "Member" / "Member Successor".
"Successor" is defined as any one na tural person claiming a lawful interest in "FCUSA "benefits of a deceased or permanently incapacitated "FCUS A Member".
"Permanent Incapacity" is defined as the inability to act on one's ow n behalf, includin g but notlimited to permanent confusion, permanent lack of consciousness or other disability renderingindividual permanently void of capacity to act and/or make decisions wit h no reasonableexpectation of meaningful recovery. Must be confirmed in writing by a competent MedicalDoctor.
"Interest" is defined as access/ownership/control of existing benefits of deceased ClubMember as detailed in "FCUSA" agreem ents and docum entatio n.
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"Benefits" ar e defined as any existing programs/processes/admi nistrativeremedies/accounts/membership/written, verbal & recorded information reserved for membersonly, in which deceased or permanently incapacitated Member was a participant and otherbenefits as may be available to Club Members.
In the event of "Member's" death or permanent incapacity, "Member' s" designated"Successor" may step forth. "FCUSA" will only recognize designated "Successor" as set forthin "Member's" most current, existing Letter of Wishes on file with "FCUSA". At the time o fpresentment, "Successor" must provide all information and documenta tion required asoutlined in FCUSA SUCCESS OR INSTRUCTIONS IN THE CASE OF DEATH O RPERMANENT INCAPACITY OF FCUSA MEMBER.
"Successor" must become a "Member" of "FCUSA" and remain a "Member" in good standing."Successor" will be bound by the same agreements an d limitations, including but not limitedto , non-disclosure and code of ethics of "FCUSA" Mem bershi p. Should my "Successor"
choose not to accept my Letter of Wishes an d "FCUSA" agreem ents, with all benefits andresponsibilities, the proceeds and control of my membership and all related benefits andassets will default to "FCUSA" for their discret ionary use.
"Successor" must contact "FCUSA" within 90 days of death or permanent incapacitation of"FCUSA Member" after which time the proceeds and control of "Member's" membership andal l related benefits and assets will default to "FCUSA" fo r their discretionary use.
15 . Breach Defi ned. Should Contracto r act or cause any action(s) against Compa ny, legal orother, or speak, write, email, post articles, fonward articles of any content or performs anaction or causes an action to occur that disparages, defames , brings harm, injures, discredi tsor dishono rs Company, these actions will be construed as a Breach of this agreement b yContractor.
16 . Remedy for Breach. The parti es hereto agree that, in the event of breach or threatenedbreach of any covenants of Contractor, the damage or imminent dama ge to the value and thegoodwill of the Comp any's b usiness shall be inestimable, and that therefore an y remedy atlaw or in damages shall be inadequat e. Accordingly, the parties he reto ag ree that theCompany shall be entitled to injunctive relief against Contractor in the event of any brea ch o rthreatened breach of any of such provisi ons by Contractor, in addition to any other relief(including damages) available to the Compan y under this Agreemen t or under law.
Additionally, upon such breach by Contractor, th e Compa ny ma y exercise its right to
terminate such Contractor with no further compensatio n fo r commissions and no payment sfo r any administrative remedies submitted or to be submitted a nd will provide no refunds t oContractor.
17 . Termination. Either party may terminate this agreement without cause. FCUSA mayterminate any membership do to any violations of this agreement including a breach of orthreatened breach of this contract.
Termination witho ut cause: Should Contractor elect t o end their Member status, they will bepaid for all commissio ns and submi tted paid programs up to their resignation date.
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Termination with cause: Should Contractor be removed due to breach, all unpaidcommissions will be forfeited to Company. All educational processes submitte d or in processwill be forfeited to Company. No refunds will be provided to Contractor fo r any fees paid to
Company.
Notifications of termination may be sent via Emai l, US Mail o r f ax to the last known add res sof the other party.All items in this agreement regarding N O N - D I S C L U S U R E / N O N - C O M P E T E , disputes andprivacy will survive termination of this agreement .
18. Entire Agree ment . This Agree ment, contains th e entire agreement and understandingbetween the parties hereto an d supersedes any prior or contemporaneous written or oralagreements, representations an d warrantie s betwee n them respecting the subjec t matte rhereof.
19 . Disputes. In the event a dispute shall arise between th e parties to this agreement, it ishereby agreed that the dispute shall be referred to the American Arbitration Association oralternate service by agreement of the parties. The Federal Arbitrat ion Act shall govern thearbitration procedure and no t any on e single law of any particular state law. The parties agre ethat any arbitration shall be held by an arbitrator with experi ence in contract and common lawand the hearing shall be held in the closest county of the FCUS A business off ices forarbitration in accordance with th e applicabl e United States Arbitration an d Mediation Rules ofArbitration. T he arbitrator's decision shall be final and legally binding and judgm ent may b eentered thereon.
In an y ruling and /or award th e arbitra tor shall provide a written opinion of the facts andconclusions of law and follow applicable la w and judicial precedent.
Each party shall be responsible for its share of the arbitration fees in accordance with theapplicable Rules of Arbitration. In the event a party fails to proceed with arbitration,unsuccessfully challenges th e arbitrator's aw ard, o r fails to comply with the arbitrator's a ward ,th e other party is entitled to costs of suit, including a reasonable attorney's fee for having tocompel arbitration or defend or enforce the award. This arbitration cl ause st ands as anindividual agreement, which is incorporated herein for the enforcement of the MembershipAgreement(s), Non-Disclosure/Non-Compete Agreement and any disputes arising thereof.
20. Power or Attorney. This agreem ent shall also serve as a Power of Attorney from theMember to FCUSA to execute any and all document s necessary to obtain an d monetizeMember AR judgments-education processes.2 1 . Previous Agreements. This Agreement supersedes all previous agreemen ts. ThisAgreement is binding upon both partie s and upon th e manager, direct ors, officers, employ eesan d agents of each. This Agreement is effective as of the later date of execution, namely thedate of acceptance of membership by FCUSA an d will cont inue i ndefinitely; unlessterminated on thirty (30) days written notice by either party or immediately by breach of thisagreement. However, "Member's" obligations of confidentiality an d restrictions on the use ofth e "Information" disclosed by "FCUSA" shall survive termination of this A greem ent.
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By accepting your membership with FCUSA, you are acknowledging all these term s andconditions and any updates to this agreement and yo u also ag ree to bind your successorsand/or assigns to this Agreement.
22 . Severability. If any term , provision, coven ant or condition of this Agreement, or theapplication thereof to any person, place or circumstance, shall be held to be invalid,unenforceable or void, the remainder of this Agreement an d such te rm, provision, covenantor condition as applied to other persons, places an d circumstance s shall rema in in full forceand effect.
23 . Construction. The headings and captions of this Agreement are provided forconvenience only and ar e intended to have no effect in construing or interpreting thisAgreement. The language in all parts o f this Agreement shall be in all cases construedaccording to its fair mea ning and not strictly f or or against either party.
24 . Non-waiver. No failure or neglect of either party hereto in any instance to exercise anyright, power or privilege hereunder or under law shall consti tute a waiver of any other right,power or privilege or of the same right, power or privilege in an y other instance. All waiversby either party hereto must be contained in a written instrument signed by the party to becharged and, in the case of the Comp any, by an officer of the Com pany or other perso n dulyauthorized by the Comp any.
25. Disclaimer. FCUSA does not provide nor is it responsible for providing tax, legal,accounting or financial advice. FCUSA urges members to retain such expe rts f or properadvice. It is also de eme d that both parties have signed this a g r e e m e n t . The Member b yelectronic acknowledgement and FCUSA by drafting this d ocumen t.
26 . IN WITNESS THEREOF, th e Parties hereto have duly execut ed this Contr act the da y andyear per the online registration date and the Signature (typed) on that form shall be deemedto be an executed contract upon th e acceptance by FCUSA via a member number assignedand emailed to prospect.
THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION, WHICH AFFECTSYOUR LEGAL RIGHTS AND MAY BE ENFORCED BY THE PARTIE S.
Freedom Foundation USA, LLC,4002 Hwy 78530-321
Snellville, GA 30039USA
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A Workbook oh Bank Reserves and Deposit Expansion
Federal Reserve Bank of Chicago
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Modern Money Mechanics
The purpose of this booklet is to describe the basic
process of money creation in a pactional reserve" banking system. The approach taken illustrates the changes
in bank balance sheets that occur when deposits in banks
change as a result of monetary action by the Federal
Reserve System the central bank of the United States.
The relationships shown are based on simplifying
assumptions. For the sake of simplicity, the relationships
are shown as if they were mechanical, but they are not,
as is described later in the booklet. Thus, they should not
be interpreted to imply a close and predictable relation
ship between a specific central bank transaction and
the quantity of money.
The introductory pages contain a brief general
description of the characteristics of money and how the
U.S. money system works. The illustrations in thefol-
lomng two sections describe two processes: first, how
bank deposits expand or contraci in response to changes
in the amount of reserves supplied by the central bank;
and second, how those reserves are affected by both
Federal Reserve actions and other factors. A final sec
tion deals wifh some of the elements that modify, at least
in the short run, the simple mechanical relationship
between bank reserves and deposit money.
Money is such a routine part of everyday living thatits existence and acceptance ordinarily are taken for granted. A user may sense that money must come into beingeither automatically as a result of economic activity or asan outgrowth of some govemment operation. But just howthis happens all too often remains a mystery.
What Is Money?If money is viewed simply as a tool used to fecilitate
transactions, only those media fliat are readily accepted inexchange for goods, services, and other assets need to beconsidered. Many tilings from stones to baseball cards have served tiiis monetary function through the ages.Today, in the United States, money used in titmsactions ismainly of tiiree kinds currency (paper money and coins
in tiie pockets and purses of the public); demand deposits(non-interest-bearing checking accounts in banks); andother checkable deposits, such as negotiable order ofwitiidrawal (NOW) accounts, at all depository institutions,including commercial and savings banks, savings and loanassociations, and credit unions. Travelers checks also areincluded in tiie definition of b-ansactions money. Since $1in currency and $1 in checkable deposits are freely convertible into each other and botii can be used directiy forexpenditures, they are money in equal degree. However,only tiie cash and balances held by tiie nonbank public arecounted in tiie money supply. Deposits of tiie U.S. Treasury, depository institutions, foreign banks and officialinstitutions, as well as vault cash in depository institutionsare excluded.
This transactions concept of money is the one designated as M l in the Federal Reserve's money stock statistics. Broader concepts of money (M2 and M3) include Mlas well as certain otiier financial assets (such as savingsand time deposits at depository institutions and shares inmoney market mutual funds) which are relatively liquidbut believed to represent principally investments to tiieirholders ratiier than media of exchange. While funds canbe shifted feirly easily between transaction balances andthese other liquid assets, titie money-creation process takesplace principdly through transaction accounts. In tiieremainder of this booklet, "money" means Ml.
The distiibution between the currency and depositcomponents of money depends largely on tiie preferencesof tiie public. When a depositor cashes a check or makesa cash witiidrawal through an automatic teller machine, heor she reduces flie amount of deposits and increases tiieamount of currency held by tiie public. Conversely, whenpeople have more currency than is needed, some is retumed to banks in exchange for deposits.
While currency is used for a great variety of smalltransactions, most of the dollar amount of money payments in our economy are made by check or by eledronic
2 Modem Money Mechanics
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transfer between deposit accounts. Moreover, currencyis a relatively small part of tiie money stock. About 69percent, or $623 billion, of tiie $898 billion total moneystock in December 1991, was in the form of tiansactiondeposits, of which $290 billion were demand and $333
billion were other checkable deposits.What Makes Money Valuable?
In tiie United States neitiier paper currency nordeposits have value as commodities. hitrinsicaBy, a dollarbill is just a piece of paper, deposits merely book entiles.Coins do have some intiinsic value as metal, but generallyfer less than tiieir fece value.
What, then, makes tiiese nstilmentschecks,paper money, and coins acceptable at fece value inpayment of att debts and for otiier monetary uses? Mdnly,it is the confidence people have that they will be able toexchange such money for other financial assets and forreal goods and services whenever they choose to do so.
Money, like anything else, derives its value fi-om its scarcity in relation to its usefulness. Commodities or services are more or less valuable because there are more orless of them relative to tiie amounts people want Money'susefiilness is its unique ability to command other goodsand services and to permit a holder to be constantly readyto do so. How much money is demanded depends onseveral fectors, such as the total volume of h:ansactionsin the economy at any given time, tiie payments habits ofthe society, the amount of money that individuals andbusinesses want to keep on hand to take care of unexpected ti^sactions, and tiie foregone earnings of holdingfinancial assets in the form of money rather tiian some
otiier assetConti-ol of the quantity of money is essential if its
value is to be kept stable. Money's real value can be measured only in terms of what it will buy. Therefore, its valuevaries inversely with flie general level of prices. Assuminga constant rate of use, if the volume of money grows morerapidly than tiie rate at which tiie output of real goods andservices increases, prices will rise. This will happen because there will be more money than there will be goodsand services to spend it on at prevailing prices. But if, onthe otiier hand, growtii in the supply of money does notkeep pace wtii tiie economy's current production, thenprices will fell, the nation's labor force, factories, and otiier
production facilities will not be fiilly employed, or botii.Just how large the stock of money needs to be in
order to handle the ti^sactions of the economy withoutexerting undue influence on tiie price level depends onhow intensively money is being used. Every transactiondeposit balance and every dollar bill is a part of somebody's spendable funds at any given time, ready to moveto other owners as ti^sactions take place. Some holdersspend money quickly after tiiey get it making tiiese fimdsavailable for other uses. Otiiers, however, hold money forlonger periods. Obviously, when some money remainsidle, a larger total is needed to accomplish any givenvolume of transactions.
Who Creates Money?Changes in tiie quantity of money may originate wth
actions of tiie Federal Reserve System (tiie centi^ bank),depository institutions (principally commercial banks), ortiie public. The major control, however, rests witii the
cenh^ bank.The actual process of money creation takes place
primarily in banks.' ./^ noted earlier, checkable liabiEtiesof banks are money. These liabilities are customers' accounts. They increase when customers deposit currencyand checks and when tiie proceeds of loans made by tiiebanks are credited to borrowers' accounts.
In flie absence of legal reserve requirements, bankscan buUd up deposits by increasing loans and inveshnentsso long as tiiey keep enough currency on hand to redeemwhatever amounts the holders of deposits want to convertinto currency. This unique athibute of the banking business was discovered many centimes ago.
It started with goldsmitiis. As early bankers, theyinitially provided safekeepmg services, making a profit fi-omvault