[442] in Cypherpunks
Hargis T-raid
daemon@ATHENA.MIT.EDU (Kent Hastings)
Thu May 20 12:46:38 1993
Date: 19 May 93 15:06:11 U
From: "Kent Hastings" <kent_hastings@qmail2.aero.org>
To: cypherpunks@toad.com
Cc: extropians@gnu.ai.mit.edu
Hargis T-raid#000#
The offices of Anthony L. Hargis were visited 5-18-93 by Treasury
agents. Since 1976, Hargis operated a "bank that isn't a bank,"
using a Massachusetts Business Trust structure. The theory of
operation was that a Trust recording gold Deposits and Transfer
Orders was legally different than a Bank with Accounts and Checks.
This bluff worked well for 15 years. Anthony's recent involvement
with the State Citizens (a new tax protestor approach) may have
triggered the raid. Or perhaps ALH was allowed to exist all
these years to suck in more IRS victims.
Account holders can assume the worst. Customers were not allowed
in the door, and the computer records were not encrypted, despite
my, and others, frequent suggestions. "Citizens don't need
encryption" was the response in a nutshell.
Citizens Do.
Now, secure physical data links (perhaps using spread-spectrum
modulation of radio and microwave) appear necessary for financial
privacy. All the nice little tricks with mail drops and trusts
may work in the short term, but only strong encryption and signal
hiding will insure long term survival.
Kent - kent_hastings@qmail2.aero.org.
and
