UPDATE: The Smoking Gun has PICTURES of the $1 Billion Dollar bills!

[Up2Late]

Plus, an LA Times update!

The LBN link from last night is at this link: <http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2167404&mesg_id=2169647>

The Smoking Gun Link below!
<http://www.thesmokinggun.com/archive/0315062billion1.html>

Fake $1-Billion Bills Are Seized

By Jill Leovy, Times Staff Writer
March 15, 2006

Federal authorities have seized 250 counterfeit $1-billion banknotes from a West Hollywood apartment as part of a currency smuggling investigation, officials said Tuesday. The bogus Federal Reserve notes carry 1934 issue dates and are stained to look old.

"They are a replication of 1934 Grover Cleveland $1,000 bills — manipulated to look like $1 billion," said James Todak, deputy special agent in charge for the Secret Service in Los Angeles. He described the notes as "green and waxy, old-looking documents." They have attached coupons, apparently to make them look like government bonds, he said.

Federal officials were directed to the bills by accused smuggler Tekle Zigetta, 45, who was arrested in January at Los Angeles International Airport on charges of failing to declare cash. Zigetta was caught trying to sneak $37,000 into the country on his return from South Korea, officials said. Later, he told authorities that he also had some $1 billion notes hidden away.

(more at link below)

<http://www.latimes.com/news/printedition/california/la-me-fakebillions15mar15,1,3764593.story?coll=la-headlines-pe-california>

[Suich]

1. What a dumb idea!

It's not like you can use them to buy anything. Maybe he just did it as a joke. :shrug:

[Up2Late]

3. Because of similar stories I read, I'm beginning to think that this guy...

...was conned into carrying these by someone in China or one of the other S.E.Asian countries, thinking these were a sort of Long-term Bond, or maybe suckered into buying and/or smuggling these into the country for the same reason.

[NYC]

2. Not charged with a crime for this.

...Zigetta, 45, has not been charged with a crime in connection with the $1 billion notes...

I guess if you don't try to pass countefeit, you haven't committed a crime. Not likely he would try to spend these.

He was, however, charged with bringing in undeclared money.

...pleaded guilty yesterday to a federal charge of failing to declare $37,000 in currency upon his return to Los Angeles in January from South Korea...

Can any numismatists explain the coupons attached to the bill? Thanks in advance.

[unblock]

4. certain debt instruments, such as bearer bonds, have interest coupons

one coupon matures each month or quarter, and can be redeemed for cash once it has matured.

i'm guessing the "8" means 8% interest, which would probably imply 2% per quarterly coupon.

[Up2Late]

5. This guy has such a unique name, I found his business address in LA...

...with Google, and possibly a "business" investment in Nevada. What do you make of this?

<https://esos.state.nv.us/SoSServices/AnonymousAccess/CorpSearch/CorpDetails.aspx?CorpID=450453>

[Suich]

8. Hm-m-m-m....curiouser and curiouser! n/t

[NYC]

7. What's that got to do with this billion $ bill?

I thought this was not a bond, but a "spendable" dollar?

I was wondering if those coupons were fractions of the bill*. (Example: One billion coupons each worth $1. When all the coupons were spent, the bill would no longer have value.)

I understand what you are saying about the bond coupons, but did we ever have money like that?

*A fraction of the capital, no interest.

[Up2Late]

9. Check out this post from the LBN thread, it might help a little...

<http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2167404&mesg_id=2167534>

The $100,000 Dollar bills were actually only for uses by banks: <http://www.moneyfactory.gov/document.cfm/5/42/1359>

I get the feeling this guy thought he was buying part of the U.S. National Debt. Sounds like he was conned and might have thought these were old Treasury Bonds or something.

[NYC]

10. Thanks.

I'm going to read it now. :hi:

Edit: I read it. Fascinating information about the bonds in China. Thanks.

[chancew]

6. Suspicious

The lettering for the word "Washington,DC" looks kind of modern so you can tell it is bogus.

[laheina]

11. Hi chancew!!

Welcome to DU!! :hi: