Illegal Tender? — Class Action Suit Accuses Banks Of Illegal Creation Of Money

VANCOUVER, British Columbia, Canada John Ruiz Dempsey, a criminologist and forensic litigation specialist, last year filed a class action suit on behalf of the People of Canada alleging that financial institutions there have been engaged in the illegal creation of money.

According to Dempsey, the lawsuit, which could involve millions of Canadians, claims that money is being created out of nothing by Canadian Imperial Bank of Commerce (CIBC) and that the money is then entered into the bank clients’ accounts as loans.

Dempsey says that these loans are not backed by currency or any real tangible asset and, essentially, “the bank never loaned any money of their own, nor do they stand to lose any money of their own at any time.”

The complaint, the first of its kind ever filed in Canada, was originially filed on April 15, 2005, in the Supreme Court of British Columbia at New Westminster and later updated on Aug. 10, 2005, but on Feb. 27, 2006, presiding judge Nicole Garson called off a hearing scheduled for three days after hearing only 20 minutes of questioning in the matter, saying that the People’s claim has no merit and that their claims are vexatious, frivolous, scandalous, and abuse of process.

Dempsey had filed a motion to have Garson recused, a motion that he had intended be heard by the Chief Justice, but it wasn’t. Dempsey says that Garson should have recused herself since prior to becoming a Supreme Court justice, she was the lead counsel for one of the defendant banks, TD Canada Trust, a situation Dempsey deemed a conflict of interest.

During the last hearing on April 6, 2006, Dempsey served Garson a Writ of Summons and Statement of Claim, filing a lawsuit against Garson in her personal capacity for interfering with what Dempsey described as his personal right of unlimited contract with his principals.

Says Dempsey, “Whatever happens, this is only the beginning. The greatest battle, ‘The People vs. The Banks,’ has only begun.”

In an interview with Iconoclast publisher W. Leon Smith, Dempsey explained that in Canada, as in the United States, where the similar Federal Reserve System is in place, all monies advanced by banks to its borrowers are simply IOUs where money is digitally created by computer entry.

“No cash or any valuable or legal consideration is received by the debtors,” he said, noting that financial institutions who are in the business of lending money have been illegally creating money out of nothing since the 1950s and 60s and there is no law in Canada that empowers any financial institutions to create money out of thin air.

Dempsey explained that in most transactions, there is no two-sided contract the bank does not generally sign meaning that a contract per-se does not legally exist.

The litigation specialist is also working with Indian tribes to establish banks within their soverign nations that do not have ties to the Canadian version of the Fed.

Here is the interview:

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ICONOCLAST: You filed a class action suit in New Westminster, B.C. on April 15, 2005, accusing banks in Canada of the illegal creation of money. Can you explain the basis of this suit?

DEMPSEY: The suit is fundamentally based on the fact that money does not exist. When we go