Opinion ID: 1013090
Heading Depth: 3
Heading Rank: 1

Heading: The Comptroller Warrants.

Text: Beginning in or about November 1995, Stern traveled to Bozeman, Montana, where he attended anti-government seminars presented by Leroy Schweitzer (Schweitzer). Schweitzer and his followers, who were known as Freeman, operated a compound in Montana, and while he was there, Stern attended a Freeman class, conducted by Schweitzer, during which Stern obtained at least seven documents, each titled Comptroller Warrant. UNITED STATES v. STERN 3 Stern subsequently delivered one of these comptroller warrants, in the amount of $77,581.98 and numbered 1809, to the First Union National Bank (First Union) as complete satisfaction of his approximately $40,000 worth of outstanding loans with the bank. Stern requested that First Union refund him the difference in a cashier’s check. First Union rejected the comptroller warrant on the ground that it was not a legitimate collectible document. Stern transmitted some of his other comptroller warrants to other financial institutions and government entities. He also provided some of the comptroller warrants to friends and family members for their use in satisfying debt with financial institutions and the IRS, and for obtaining false and fraudulent refunds. In a letter dated January 3, 1996, the Comptroller of the Currency, Administrator of National Banks for the United States Treasury Department, notified Stern that the comptroller warrants were worthless financial instruments. Stern’s conduct with respect to these comptroller warrants is the subject of Counts One and Three of the indictment. Count One charged Stern with conspiracy to submit false claims for payment to the IRS in order to receive false and fraudulent refunds, 18 U.S.C. § 286, and Count Three charged Stern with bank fraud, 18 U.S.C. § 1344.