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Off the Grids to Freedom
columnist: Melinda Pillsbury-Foster

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Topic: Economics
Melt Down the FED and do it NOW.

You can give Americans an alternative to the FED that will be adopted across the world like wild fire. it costs ten million dollars but you will never again pay interest of be charged fees. Fractional Reserve Banking will be a thing of the past. You get what you pay for.
by Melinda Pillsbury-Foster
(libertarian)
Friday, July 4, 2008

Clive Boustred says the future can be different; that we can get rid of the Federal Reserve Bank, displacing it with a new system that puts people in control of their money and lives It is hard to believe, but he has the credentials to be taken seriously

Clive Boustred has an impressive resume that includes nearly twenty years of providing consulting strategy for many of the high tech companies that are creating the world in which we now live. That experience built the corporate strategies of such companies as Sun Microsystems and Intuit. The core of his experience is in high tech, edge banking systems. Boustred's solution to the problem Americans face economically is CopperCards Bank. According to Boustred, the CopperCards Bank does not generate money, as we know it. It does not charge you for every transaction. It does not use fractional reserve banking. Instead, it simply enables trade using the heretofore untapped potentials of computers, encryption, and the Internet.

We all know that if we all took our money out the bank would not have enough to meet its demands. That is what a 'run on the bank' means; it is the result of fractional reserve banking. With the bank Boustred has designed the money you put in the bank stays there, waiting for you, he says. It does not visit anyone and is not rented out without your knowledge, as is true with the bank down the street. Boustred explains that CopperCards Bank is not banking, as we have known it, but a system that eliminates currency as the means for conducting transactions. People can use gold and silver coins; anything, according to Boustred, can be traded through CopperCards Bank. No fees are charged, loans on assets, such as your car or home, are made without charging interest at no cost to you. Boustred's system would eliminate the costs of making transactions. It will sit on your desk or in your purse, waiting for when you need it.

Today, many Americans seek relief for the problems created through fractional reserve banking and the FED. Many are looking seriously for solutions. More people every day can tell you who owns the FED and why a solution is necessary. At the same time, those entrusted with government, for instance Congress, continue to ignore the problem. Which leaves Americans at a stand still.

Such solutions as that started by Bernard von NotHaus's Liberty Dollar have proven to be problematical. The company issued minted gold and silver currency, valued for collection and as a way to hold precious metal against inflation. In the von NotHaus case, while tens of thousands in coin and metal were seized by the Federal government, no arrest or charges were made; the holdings of gold and coins confiscated are being held with no explanation. Asked if his system was legal Boustred replied that it certainly is. Displacing a system with something better, like the car replacing the horse and buggy, annoys the blacksmiths but it is perfectly legal. Also, there is nothing to seize. All transactions are recorded off shore.

Interviewed for this article Boustred said, "If not for the Federal Reserve and government Americans would have had this system as the natural extension of the computer and Internet long since." Boustred then explained that we have seen the technology moving in this direction without understanding what was going on. Citing such innovations in trading as Ebay and Craig's List, Boustred pointed out that these are actually trading systems and since they charge small amounts are wildly profitable because of the high volume. That makes these sites a little like today's banks, but better than selling or trading using traditional means.

The CopperCards Bank extension of this is to see the 'bank' just as a point for trading. Anything can be traded. You pay in dollars, which are traded for 'coppers' the internal unit for marking value, to buy Swiss Francs; your old stamp album, converted into coppers, by placing it for sale, is paid out in Euros to buy lodging in Hawaii. Ten hours of your time spent building a rocking chair becomes coppers which instantaneously are paid out to buy transport into the Alps. Anything, effectively, becomes money when viewed this way.

The existence of the FED and other Central banks, for instance those in Europe, have obscured where the technology could take us and what it could make available. Boustred predicts that traditional banks will disappear, just like the horse and buggy, when CopperCards is fully on line. All existing systems are based on loaning money you did not own, especially Fractional Reserve Banking. The practice got its start over 200 years ago.

A gold merchant in Frankfurt, Germany, a Mr. Nathaniel Bauer, got into the habit of loaning money actually owned by his customers. He had noticed how careless the nobility he routinely dealt with were with their gold. In that inattention he found an opportunity. Mr. Bauer discovered he could loan many, many times the gold in his possession. Then, he realized the gold was not necessary. He later changed his name to Mayer Amschel Rothschild. The practice with loans, money, and currency became a family business, now of many generations duration. From the family practice of marrying cousins so to preserve their capital, came the Central Banks of Europe today. The lineage of the family illustrates the strategy, the story appearing on their own website as the Family History.

Boustred advised Americans to pay attention to what was being done to the wealth they entrust to traditional banks as he pointed out that with the high security encryption built into his system every copper in every transaction can be traced.

With America's economy well into its downward spiral no one is sure where we will be a year from now. Americans are looking for solutions, and Boustred's ideas are creating a following. The number of calls received at their office is increasing rapidly. Most Americans are worried about money; there is not enough to stretch and what remains is too often spent on taxes, fines, fees and costs from big corporations and government. No one seems to know what you are supposed to actually get for the money you give them.

With oil arching up to touch $145 a barrel and questions on how the vast oil reserves in Alaska were taken off line, making relief from that direction unlikely to happen, even people at the check out line in the local grocery store are conscious of what is going on with the dollar and the FED. It has been a long time since Americans worried about finding food in the stores. Today, that worry is growing as the dollar continues its nosedive.

And each of these questions return to the issue of the Federal Reserve Bank. The root of everything we do begins at the need to buy and sell. For many years, the idea that there was something smoky about the FED and how fractional reserve banking worked was the sort of thing you expected to hear only from nutcases and weirdos, who ran around in tin foil hats, or economists. But today revelations regarding the status of that institution have increased in volume until the questions are being voiced at the local Walmart.

What is the FED, who controls it, and what happened to our money? More are asking every day.

The present movement towards hyperinflation was predicted by John Templeton, considered by many to be the Father of Wall Street. Templeton predicted the present collapse three years ago, also predicting that it would be unstoppable because those in charge did not have the expertise, skills, or ability to stop it.

As to who controls the FED, a cursory check does verify that it is actually twelve separate banks, each a privately and closely held corporation. Ownership of the banks is murky, with the most likely scenario being that much of the effective control rests with Europeans. Also easily verifiable is the fact that it came into existence via a move by Woodrow Wilson, Teddy Roosevelt, his cousin Franklin Delano Roosevelt, and a group of bankers, meeting over the Christmas Congressional break in 1913. The number of bankers involved, according to "Secrets of the Federal Reserve"
by Eustace Mullins, a highly respected historian, was limited to the participation of less than ten men. The book goes on to raise eyebrows with quotes such as this,

"The Rothschilds were wary of Germany's ability to continue in the war, despite the financial chaos caused by their agents, the Warburgs, who were financing the Kaiser, and Paul Warburg's brother, Max, who, as head of the German Secret Service, authorized Lenin's train to pass through the lines and execute the Bolshevik Revolution in Russia. According to Under Secretary of the Navy, Franklin D. Roosevelt, America's heavy industry had been preparing for war for a year. Both the Army and Navy Departments had been purchasing war supplies in large amounts since early in 1916."

Meaning that the same bankers who met with Woodrow Wilson and the Roosevelts planned the War to End all Wars, World War II and, presumably later military ventures, as a way to generate corporate income through the printing of US Treasury dollars, emptying the all too occasional surpluses into their own pockets. Today, through the Internet, this kind of information is percolating across the entire population to be discussed, like bad weather, at Walmart.

Through other easily discovered linkages most of the ills that have plagued the world for the last century can be explained as a means to churn US Treasury dollars, paid for by American Taxpayers, into money banked by the same, small group of individuals, mostly located in Europe. This explains the present mortgage meltdown, those funds end up in the same accounts, off shore.

What Americans need today, said Boustred, is the means to stabilize their economy, trade, do business, buy, sell, and hold on to what they own. Money must flow, but for that to happen Americans must pry lose the fingers of those who control them through their money.

Boustred, returning to the subject of the developments in banking technology, went on to point out that when the transfer of money is electronic it is instantaneous, thus the 'float' is eliminated, making it possible to have a system of banking and trading that is a simple but elegant service that costs nothing. The tiny cost, Boustred said, would be nearly unnoticed and easily borne as a business expense of businesses who would be paying far less with this technology than the present fees charged to implement credit cards. This has been true for some time now. Boustred said, "we can now eliminate the need for banks and fiat currency as we have known them. Instead, this can be handled as a not-for-profit that is decoupled from government, corporate or personal interests. CopperCards Bank will function as a not for profit and encourages others to do the same."

Asked if this would change the lives of ordinary people Boustred responded with enthusiasm. "Yes. Their incomes will effectively double. They can carry out their transactions in tax free zones. The average Joe can structure their affairs in the same way that the megawealthy do today. This will eliminate taxes all together. This also means that commerce will receive an enormous boost. We can experience the greatest boom in history instead of a downward spiral into poverty."

The lives of ordinary people, said Boustred, will be less, not more, complicated.


"Using CopperCards Bank we can eliminate the fluctuations and wars that have plagued us. We can live in peace, prosperity, and community. It will be very much better for everyone, even the Rothschilds.." said Boustred.

"For instance," Boustred said, illustrating his point. "Imagine yourself selling a used car. You list it for free. Your local CopperCards Guardian looks it over, notes you have good credit and are in good standing. You receive 90% of the probably selling price immediately. When a buyer gives you the money you get the other 10%." I asked, "No fee?" "None. Welcome to banking as it will be very soon." Then he smiled.

Boustred, a native of South Africa who left there for America because he was disgusted with Apartheid, lectured on strategy for high tech companies in Silicon Valley and around the world for much of the 90s. Boustred's website is at CopperCards.com and the site offers cards that help "Americans stranded in the courts."

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©2008 Melinda Pillsbury-Foster, all rights reserved. You must have written permission from the author in order to republish this work.
Published: Friday, July 4, 2008
Last modified: Friday, July 4, 2008

The views expressed in this article are those of Melinda Pillsbury-Foster only and do not represent the views of Nolan Chart, LLC or its affiliates. Melinda Pillsbury-Foster is solely responsible for the contents of this article and is not an employee or otherwise affiliated with Nolan Chart, LLC in his/her role as a columnist.

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Reader Comments:

Posted By: creator
Date: 2008-07-05 15:01:27

Melinda,

I read this after my comment on your previous article about Jefferson and Copper Cards...

This is great, just the kind of thing needed to "get the word out." The only thing that might make it better? Perhaps deal these out in smaller doses, shorter stories, a few illustrations... but that's just my reaction based on knowing what a short attention span the average man has these days.

I find this powerfully encouraging stuff! But still agree with Walt, Copper Cards needs to lower the barriers to membership.

In another article that I wrote today (about the Freedom Slate Money Bomb) I observed that there is a "price point" that EVERYONE can meet - the "five bucks" price point. If Copper Cards were to offer, say, a "three month trial membership" for "five bucks" I think it would be a "no brainer" entry point for many millions with a growing uneasiness with our economy and longing to "ditch" the fractional reserve system (although they can't as yet quite put that into words.)

Thanks for these articles, please keep 'em coming!

Report violation


Posted By: Karl Schwarz
Date: 2008-12-26 13:38:45

 CAVEAT EMPTOR... TRANSLATION: BUYER BEWARE!

 I hope Copper Cards Bank is insured by the FDIC?  Because if Melinda Pillsbury-Foster or Gina de Miranda (AKA Madam Karnak)have anything to do with it, the money will be squandered on financing their next extortion scheme.

This woman and her friend Gina have a long history of pretending to do work for people like me and then later trying to extort money from them.

Cite: http://portland.indymedia.org/en/2005/06/318783.shtml

 http://lookdeeper.org/Misc/exfile_exfile.2005-06-10.7654530173/download

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Posted By: No Name Supplied
Date: 2008-12-27 09:09:43

Karl Schwarz has left an interesting trail through the movement.  Some think he is a spook.  More think he is just a grifter.  Below is the definitive expose on Schwarz.  The journalist also told me the following, which you should keep in mind as you read it.  Both myself and di Miranda are reporting Schwarz to the authorities for his libelous remarks. 

Anything about Schwarz is really a waste of time.  I paid no attention until Schwarz posted this comment.  When I contacted di Miranda she finally read his comments to me.  I was appalled. I am publishing an article responding to his accusations on a separate blog,  

Dumb, Unscrupulous and Debauched

 

(Gina di Miranda's comments)  "I intervewed about 20 people, including others who had written stories, Picasso Dreams, an expert on nanotechnology named H. Levy, and called and interviewed his divorce attorney and associates in Little Rock.   The divorce attorney gave me leads which I followed up.  I  reviewed transcripts of reports made by the psychlogist for his step daughter when Karl was accused of sexual molestation.  I reviewed his bankruptcies and spoke to his creditors.  I spoke to the daughter of the founder of the craft company Karl claims his father founded to find out about his Dad's work history.  Karl's reports were all fiction.  His father founded nothing.  I talked to people, particularly a former partner, who had known him through his first big con, the fake development of the river trench in the 80s.  I have a copy of the report done at the time and an article published by a quarterly magazine in Arkansa that is no longer published.  I spoke to the State of Arkansas  department for licensing architects and ascertained that he had been licensed at one time but not as he reported.  He never completed a degree at the University of Arkansas.  

I did what is appropriate and usual for professional journalists, meaning I checked every assertion he had made publicly including his affiliations with the Republican and Democratic parties.  They did not know who he was.  I went through the FEC records and determined he had made a few small donations.  $200 once or twice.  He was not a significant donor to either party.  He never legally set up his campaign committee nor reported his contributions.  That is illegal.  

I also attempted to contact the women he persuaded to invest in his nanotechnology company.  They were reluctant to discuss him.  I reviewed any kind of papers through Pacer, the court reporting records.  That is a sizable file.  I talked to all of his attorneys.  I found all of the case records for the FEC, the FCC, and the FTC regarding  Global Crossing. I also checked the SEC, I spoke to people who were involved in his share holder law suit and reviewed the case file at the FCC.  That is where I found other people who had been involved in the law suit.  I talked to them about his role in the case and their thoughts on that.  I followed up on all leads and checked the corporate records at the Sec. of State's Office in Delaware, Nevada, Florida, Arkansas, Georgia, Maryland, Virginia, and the Carolinas,North and South. I followed up for any ownership in his name, any corporations, LLCs, incorporations and single owner proprietorships.  If I found a record with his name I cross checked for the address to ascertain it was definitely him and not someone with the same name.  I used a number of online data bases to determine his location.

I got a report from a man who Karl had hired to get money from the Indian tribes, which Karl presented as a campaign contribution but which was to be directly wired to his Cayman account, unusual for legitimate campaign contributions.  When the Tribal Elders realized it was a fraud he left the man he had hired stranded on the road.  This man is one of many who contacted since the first story was published.  He wanted to find Karl.  Another individual who contacted me was a woman whose mother was allowing Karl to sleep on her couch.  She was concerned because she, the daughter, believed Karl was a con artist who intended to steal from her parents.   

I am still contacted by people who have questions about Karl.  More people are looking for Karl than for Easter Eggs on Easter Sunday.  He will be in trouble when more people realize he is again back in the US and not in Europe.  This is a role I do not relish. I am not an extortionist now and never have been.

I have the journalistic credentials to know what to do.  I did it.  The information can be cross checked and I invite any of you to do that.  That documentation was provided to the Indy media and to a site in Canada.  Karl then harrassed the site owner.  Anything I said about Karl was documented.  I left out the more sordid details as irrelevant to the main thrust of the material.  It is a fair story.  Below is a copy of the story." - Gina di Miranda 

 

Unfortunate Son – The Karl Schwarz Saga Continues

Karl Schwarz: Unfortunate Son http://www.yayacanada.com/9-11-4d.html


Update: December 4, 2005 -Karl W.B. Schwarz has withdrawn his candidacy for the US 2008 presidential election.

See READER COMMENTS
See new Download page -more supporting See also: comments at Portland documents have been added along with additional Indymedia notes from "Madame Karnak" See also: Karl Schwarz caught in another lie

See also: Karl Schwarz forwards his debate with

See Karl Schwarz's emailed

"911 Team 8+" and "Madame Karnak" adds her

responses

comments.

Editor's Note at 9-11Truth.org: "Interesting data dump on the ever entertaining Karl Schwarz. In view of the spotlight this gentleman is courting as a born-again 9/11 truth spokesman, self-styled "billionaire" and now presidential candidate, due diligence for the movement demands a look behind the curtain and you might as well start here. - Ed."

.Karl Schwarz: Unfortunate Son

by "Madame Karnak"

June 2, 2005

Note from YYC: Soon after I wrote my questions about Karl Schwarz "Who is Karl Schwarz...", I was contacted by an American woman who offered to do some interviews and research and write it up for me. The article below is the result of her  considerable efforts. I have verified the identity of this person, her address, her phone number, and even her driver's licence number, and have talked with her at length on the telephone. Unfortunately, neither she nor anyone of the long list of sources who contributed information for this article wants to be publicly named. They all feel that Karl Schwarz is "vindictive" and want nothing more to do with him.

The pen name she has chosen is of course a take-off on one of the late Johnny Carson's comic personae, but this woman is dead serious about the necessity to prevent Karl Schwarz from gaining any kind of leadership of the legitimate 9-11 truth movement and thus destroying its credibility. Anyone who is interested in contacting this author about future articles (for which she will no doubt give her real name) should feel free to email me, and I will forward all requests to the author.

AMERICAN HEARTLAND---May 27, 2005—What does one call a man who has spent the greater part of his life luring people to invest in schemesthat never work out? More charitable people might say that Karl was adreamer or a Walter Mitty type.

Some might call him a grifter, others might call him a hustler and still

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Karl Schwarz: Unfortunate Son http://www.yayacanada.com/9-11-4d.html

others, a con man. Regardless, the one thing that Americans cannot afford to call him is President. It would not be a change for the better. Very much like the current President, Karl Wilhelm Schwarz hasn’t had a successful business. His dreams and stories have always outstripped his realities.
Unlike Dubya, Karl did not use those dreams cynically. He believed that he could make his dreams into reality.


At least, it appears that he did in the beginning. Karl Wilhelm Schwarz, also known as Bill Schwarz, also known more recently as Karl W.B. Schwarz, was born on May 1, 1951, to a blue collar family in Arkansas. His father, Norris Schwarz, abandoned Karl and his two siblings, Robert and Viki, when Karl was only 9. For weeks, the slight, blue-eyed boy sat on his porch waiting for his dad to come home.


His mother, Robbie, with the help of his grandmother, raised the three kids by herself. Much like her son, Robbie was a dreamer. She dreamed of  instant riches, compulsively gambling and squandering the family’s meager assets. Furtively borrowing from her mother’s savings earned in the local sewing factory, Robbie managed to stay just ahead of her creditors.
Finally, Robbie remarried and the family had stability for a while.


Robbie’s new husband was James Dickson. They would have a child together, James Jr. Karl was close to his stepfather and supported him through legal troubles that incarcerated Jim Dickson when Karl was a young man.


Exceptionally bright, and gifted with a near photographic memory, Karl learned quickly. He attended the University of Arkansas at Fayetteville for three years, but did not graduate. Instead, anxious to get out and make money, Karl took an exam that gave him an architecture license without a diploma.


The state architect licensing board reported that: “Karl Wilhelm Schwarz was licensed as an architect in Arkansas on February 22, 1982. His license to practice in Arkansas was revoked due to failure to renew his registration July 31, 1985. He would not be eligible to become licensed in Arkansas as an architect because Arkansas now requires a five (5) year degree in architecture.”


With his architecture license as an entrée, Karl associated himself with three other men of the firm, Turner, Dyer and Alessi. He quickly came up with a scheme to build a “slack water harbor” in Helena, Arkansas. For  those unfamiliar with this term, “slackwater” harbors are large ditches dug from deep rivers to a specific point inland. The idea is to give a city without a seaport, access to over water transportation. While this might
have been a great idea in the days of the mighty riverboats, it hasn’t been the big industry or tourist attraction it often is sold as.


Convinced that his idea would create a tourist attraction, generate new industry and lots of cash for everyone, Karl raised money from everybody


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Karl Schwarz: Unfortunate Son http://www.yayacanada.com/9-11-4d.html

that he knew and from anybody that anyone else knew. Relentlesslycharming and industrious, Karl persuaded his sister’s husband’s father’s friends to invest. Member of large Italian families from New York, thosefriends of inlaws gave Karl about $300,000. One hundred thousand came  from local affluent families; about $200,000 came in from friends, and atrusting banker at the Worthen Bank lent Karl around $100,000. The
money went quickly. $90,000 on a feasibility study, a salary for Karl, options on land that might be profitably developed, offices andentertainment of clients.

Even the Arkansas Times ran a story in 1983 on Karl and his amazing plan.

For a couple of years, things looked rosy mostly because ignorance can bebliss. Secretive by nature, Karl managed to keep his investors fromdiscovering the disarray in the project. By 1985, it was clear that theharbor wasn’t happening. The Worthen bank called their note.

Typical of traditional Southerners, this had been a handshake deal. When  the trusting, elderly banker learned that the loan couldn’t be repaid, his heart seized. He died. Others were ruined. They lost their savings,investment properties and their homes. Some interviewees asked thattheir names not be mentioned either because remembering the deal’s repercussions was too painful or because remembering how a friend fleeced them cut too deeply for words.

Within his personal life, Karl was as secretive and chaotic as his business.
Married young to Lois Love, by 1985, they had a young son, Ryan who wasthe apple of his mother’s eye. Lois had problems conceiving because of her anorexia-bulimia. When she controlled her need to purge enough tobe able to conceive, she was overjoyed. While Lois reveled in motherhood, Karl was frequently gone. At first, he was out working investors in the slackwater harbor. Then he took up hunting or at leastthat is what he told Lois although he seldom brought home any game.
Finally, it became clear that something else was going on. Karl was hunting, but not deer.

He was pursuing a woman, Marilyn McDougald Moody. Karl has called her “the love of my life” to many people who have corresponded with him viaemail. Lois asked Karl whether he wanted to work on their marriage or give up. He moved out the next day. A week or so after Karl’s departure,
Randy Lee Moody, Marilyn’s husband phoned. He was trying to collect on a hot check of Karl’s. Comparing notes, Randy and Lois discovered that Karl’s “hunting trips” appeared to coincide with Marilyn’s overnight visits at girlfriends or “out of town” forays.

Randy and Lois became friends through this difficult time. Later theywould marry and sue Karl for unpaid child support. Karl and Lois’s divorce battle turned bitter quickly. There are over 12 years of court recordsreflecting the blood-soaked turf of child custody, child molestation allegations, property divisions and much more.

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Karl Schwarz: Unfortunate Son http://www.yayacanada.com/9-11-4d.html

Howard Lovy’s Nanobot blog, Portland Indymedia Blog and PicassoDreams have run queries and located the voluminous court records available.
Attorneys on both sides suggest that the depositions, replete with tales of a CIA/mob connection, and various other “fantasies” were entertaining, but factually impaired.

When Karl was ordered to quitclaim a piece of property to Lois, he madeout a quitclaim to an incorrect address and then attempted to unload theproperty by forging Lois’s name. This resulted in another lawsuit againstKarl and could have landed him in jail. But, like so many of Karl’s adventures, when admonished about the illegality of his actions, he blamed the situation on other people.

Throughout the peregrinations of fortune that Karl experienced, he failedto pay the $35 a week pittance ordered as child support. Even when he was flush, Karl did not pay $140 a month to maintain his son. Eventually, after the arrears reached $6,000, Karl was sent to the county jail by ajudge who called him a sociopath before sentencing him.

While in jail, a church with a fundamentalist orientation sent members tovisit Karl and even lent him a car when he left. Perhaps praying to get outof jail with these church members is where Karl began what he hasdescribed as his prison ministry in his book, “One Way Ticket to Crawford.”

For 12 years after the harbor fiasco, Karl dodged creditors and set upother businesses that failed. In 1987, he created a “digital videobusiness” under Marilyn Moody Schwarz’s name with Thurman B. Patterson  as the only other officer.

Marilyn and her two children fared no better than Karl’s son Ryan in that hedid just about as well supporting them as he did his son. Their lives were filled with chaos and poverty. Karl and Marilyn filed for bankruptcy in1992.
The following citations of this case are taken from the PACER online federal court information system.

4:92-bk-41522 Karl Wilhelm Schwarz and Marilyn Schwarz
Case type: bk Chapter: 7 Asset: No Vol: v Judge: Mary Davies.Scott
Date filed: 06/17/1992 Date discharged: 09/15/1994

The records show that the bankruptcy was discharged near the end of1994. Karl moved the family to Maryland to start over, but quickly becameembroiled in yet another get rich quick scheme. From what can be piecedtogether, Karl convinced a number of investors to pool money to lease oroption an office building that the GSA indicated interest in buying.

When the GSA bought the building directly from the owner, Karl sued.
When the case was dismissed in Maryland as groundless, Karl and Marilynreturned home to Little Rock.

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Karl Schwarz: Unfortunate Son http://www.yayacanada.com/9-11-4d.html

Again, my thanks to the blogs who have done the research.

Back in Little Rock, Karl purchased a 5,000 square foot house in ChenalCircle that he could not make the payments on. Eventually, the utilitycompanies turned off their electricity and water. Karl and Marilyn lived inthis huge house, bathing and washing with the water from a neighbor’s hose. Occasionally, that same neighbor would invite them over for a hotshower.

After much wrangling, with Karl appearing pro se (as his own attorney), thehouse was repossessed. Marilyn, tired of the chaos of the “Life with Karl” daily drama, filed for divorce.

By 1997, things were again at rock bottom. Karl had filed for a second bankruptcy to avoid both creditors and paying Marilyn a propertysettlement. Even though she entered marriage with a house, it is not clearthat she left with anything.

Yet another victim of the Karl Express to Glory train of financial gain.
Casting about for something to do, Karl became very interested intelecommunications and the Internet. It is not clear whether he or cronies set up the e*Capbank and the GlobalAxxess sites.

Both were part of an attempt to secure funding to take over failingtelecommunications companies. Karl intended to purchase thesecompanies with OPM and meld them into a worldwide conglomerate withhimself at the helm. The deals failed, because despite all the effortexpended (i.e. a Delaware LLC., an Arkansas corporation, an Antiguatrust), Karl could not find the money to make the deals happen.

Actually, there was another problem. Karl’s proposal to save GlobalCrossing violated a number of pension and other agreements. The fact that Karl lacked the experience to run a huge conglomerate was just a littlefly in the ointment compared to his finances. Throughout the 2000, 2001and 2002, Karl worked his GlobalAxxess, Commaxxess activities.

He never acquired any of the companies that he targeted and Chiaro hasnot confirmed that he had any relationship with them. There is a judgment of $2 million against Karl by UUnet. As of this date, it is not clear whetherthey have any way to collect on this judgment. According to Arkansas’s Secretary of State, Department of Corporations, GlobalAxxess andCommaxxess have had their charters revoked. In Delaware, the names for
GlobalAxxess Holding Inc is available. That’s a good indication that the state revoked the company’s charter.


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Karl Schwarz: Unfortunate Son http://www.yayacanada.com/9-11-4d.html


When asked about how he jumped from real estate to telecommunications, Karl explained that he learned all this high finance as a broker. A search of the National Association of Securities Dealers (NASD) yielded no absolutely
no -license for a Karl W. Schwarz, a Karl W.B. Schwarz or
derivatives thereof.


Flash forward to another Karl venture circa 2002. Reichenbach Group, LLC, a publishing company formed by T.B Patterson, would publish Karl’s book, “One Way Ticket To Crawford, Texas.” When the book was available, the newly christened, Karl W. B. Schwarz began to make the rounds of the Internet sites relating to 9/11.



He wrote a series of articles entitled, “Pop Goes the Bush Mythology.”
Doubtless, Karl’s energetic evangelizing of this topic revealed many


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Karl Schwarz: Unfortunate Son http://www.yayacanada.com/9-11-4d.html

fundamental questions about 9/11. It galvanized people’s interest. Karl sold these ideas as he sold so many of his schemes.

Unable to resist self-aggrandizement, Karl tried to add gravity to hisefforts, by portraying himself as a big player within the Republican NationalCommittee (RNC). A search of the FEC records at Political Money Lineturned up no political contributions made by Karl Schwarz or his companyPatmos.

He further embellishes his image with his claims of being the CEO of a nanotechnology firm, Patmos. Actually, many of his trips to speak about 9/11 have had a dual purpose; he is also seeking investors for Patmos.


Interestingly enough, many of Karl’s targeted investors are women, wealthy women. Those who have watched him in action opine that Karl’s goal is to find an extremely wealthy woman who can keep him and his dreams in the lap of the luxury that he’d like to believe he was born to.
Patmos has been his vehicle for gaining access to these women. There are many of them, too. Deborah on the west coast, Paula in Georgia, Amy, a nurse in Canada, to name a few.


Like so many Schwarz ventures, Patmos is more idea than reality.
Searches of international and national patent databases conducted via the US Patent office yield no intellectual property under the name Patmos, Patmos Nanotechnologies, Karl W.B. Schwarz, Karl Schwarz, Carl Schwarz, Bill Schwarz or any combinations thereof.


Searches of pending patents also yield no results. There are patents under Karl Q. Schwarz and Benjamin Schwarz, but not only do these not share the name of Patmos’ CEO, but the patents are not “assigned” to the company. Searches of nanotechnology sites and postings left there indicate that in the small community of materials science, Karl Schwarz is not a recognized name.


In Arkansas, where Patmos is incorporated, the department of securities has never heard of Patmos, which means there are no shareholders.


So, considering that Karl W.B. Schwarz is as hollow a man as Dubya, why does he hate him so? An educated guess might be that Dubya hasn’t been  caught and Karl has. Both have deceived and betrayed, but one man was a fortunate son whose wealth and familial connections obviated his need to ever pay the piper for his fiscal, moral, ethical and personal misdeeds. The other son wasn’t so fortunate.


Author's note: Many people were interviewed for this article. Public government sources provided information on licensing, business licenses, court cases and other aspects of the story. Some information was also gleaned from the web.


See also: Karl Schwarz forwards to YayaCanada his debate with "911 Team


7 of 8 9/12/06 10:30 AM


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