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A little-known story about a 1985 raid
Frankcoins
Posts: 4,575 ✭✭✭
The Liberty Dollar raid reminds me of what happened at the coin store I went to as a kid, and eventually became the manager
of many years later. This story was "pre internet" and other than the memories of collectors in the Dallas area and some yellowed
bound copies of local newspapers in Dallas area libraries, the details can't be found online.
In 1966, Fred Causey of Fort Worth started a coin store and a few years later added a 4000 sq ft addition with
hundreds of safe deposit boxes and gun safes. The store was open 10-6 seven days a week. The safe deposit boxes were
deemed not subject to banking rules by a private ruling from the Texas attorney general's office, which meant the
government didn't have free access to records of boxholders, the boxes didn't have to be sealed upon death, and in
fact the contents could be released to a designated person upon proof of death. Unlike banks, which keep one key
and have easily drilled out soft brass locks (for the abandonded and seized safety deposit box auctions that most
states have) Causey's boxes had padlock shanks "use your own lock, you keep all keys"
Various government agencies were irked and tried for years to shut the business down. Mr Causey "must know" that
drugs "could be" stored there..."must know" that gold "could be" stored there (before the 1974 lifting of the gold
ban)... children "must be" going without food and clothes because Daddy "must be" hiding bundles of $100 bills from
his ex-wife's attorney...killers "must be" storing murder weapons in the gun safes, etc.
The city took out the street lights for two blocks from the building, then put no parking signs on both sides of the
street for two blocks, and did this the first day after daylight saving time ended in 1983, forcing box renters and
coin store customers who came after their 5pm job ended to park 3 blocks away and walk in the dark with their coins
or other valuables.
In 1985, the Treasury Department contacted Causey and his attorneys with an "amnesty" deal. Provide a list of the
box renters and have the renters give Causey a key to the lock so that it would be available "on request" of a law
enforcement agency. While the business model was unique at the time (Howard Ruff visited in the 1970s and wrote a
glowing review in his "Ruff Times" newsletter) Causey was assured by his attorney that there was no law requiring
him to comply with that request, and indeed he might be sued for giving out information he told renters would be
never revealed except under a warrant.
A few weeks later, on a Saturday when the store had about 100 people in it for the first session of his Spring 1985
coin auction, Treasury agents and local police entered the store with automatic weapons and a warrant to search for
stolen guns and jewelry. The customers were told to leave (one suffered a heart attack) and store was emptied.
Every lock was cut on every safety deposit box and it took three days for everything to be inventoried. Sealed bags
of BU silver dollars owned by an associate of Amon Carter Jr and rolls of BU Walkers were run through a defective
counting machine, scratching many of the coins. The TV and newspapers told about "the biggest fencing operation in
Texas history" being broken up, guns that were semi-automatic were described as "machine guns." A sonic jewelry
cleaner was described as a "crucible for melting down stolen gold." "Smokestacks" on the roof for the "gold bar
smelting operation" were actually for the ventilation and heating system, the gas water heater and the fresh air
ventilator for the bathroom!
Mr. Causey was charged with money laundering, conspiracy, giving aid to individuals who wished to overthrow the
government monetary and income tax system -- all strikingly similar to the charges made against the Liberty Dollar
organization 22 years later. He also faced local charges of organized crime for running a gambling operation...if
you brought the postcard notice of his auctions, he had a drawing for a 10 peso Mexican gold coin.
Mr. Causey lost 75% of his safe deposit box customers, faced lawsuits for coins damaged by the police, and was
forced to accept a plea bargain of 10 years probation. His attempt to sue the government was met with "we can
outspend you and outlive you." (Causey was nearly 80 and died 5 years later, most of the time in severe pain from
prostate cancer which had spread to his bones)
What was never printed in the papers was that NO stolen material was found, no illegal guns, no drugs, very little
current paper money (his customers were mostly "hard money" types who did not trust paper money), there was no gold
refining or smelters, and giving away a door prize is not gambling.
The lesson here, is that in 1985 and in 2007, if you are too vocal about not trusting the US system of paper money,
you wish to hold gold and silver, you believe in the right to own firearms, if you don't think the government
should know all your business and what assets you own, and you feel that the government has powers far in excess of
those intended by the founders..you will be a target for destruction.
of many years later. This story was "pre internet" and other than the memories of collectors in the Dallas area and some yellowed
bound copies of local newspapers in Dallas area libraries, the details can't be found online.
In 1966, Fred Causey of Fort Worth started a coin store and a few years later added a 4000 sq ft addition with
hundreds of safe deposit boxes and gun safes. The store was open 10-6 seven days a week. The safe deposit boxes were
deemed not subject to banking rules by a private ruling from the Texas attorney general's office, which meant the
government didn't have free access to records of boxholders, the boxes didn't have to be sealed upon death, and in
fact the contents could be released to a designated person upon proof of death. Unlike banks, which keep one key
and have easily drilled out soft brass locks (for the abandonded and seized safety deposit box auctions that most
states have) Causey's boxes had padlock shanks "use your own lock, you keep all keys"
Various government agencies were irked and tried for years to shut the business down. Mr Causey "must know" that
drugs "could be" stored there..."must know" that gold "could be" stored there (before the 1974 lifting of the gold
ban)... children "must be" going without food and clothes because Daddy "must be" hiding bundles of $100 bills from
his ex-wife's attorney...killers "must be" storing murder weapons in the gun safes, etc.
The city took out the street lights for two blocks from the building, then put no parking signs on both sides of the
street for two blocks, and did this the first day after daylight saving time ended in 1983, forcing box renters and
coin store customers who came after their 5pm job ended to park 3 blocks away and walk in the dark with their coins
or other valuables.
In 1985, the Treasury Department contacted Causey and his attorneys with an "amnesty" deal. Provide a list of the
box renters and have the renters give Causey a key to the lock so that it would be available "on request" of a law
enforcement agency. While the business model was unique at the time (Howard Ruff visited in the 1970s and wrote a
glowing review in his "Ruff Times" newsletter) Causey was assured by his attorney that there was no law requiring
him to comply with that request, and indeed he might be sued for giving out information he told renters would be
never revealed except under a warrant.
A few weeks later, on a Saturday when the store had about 100 people in it for the first session of his Spring 1985
coin auction, Treasury agents and local police entered the store with automatic weapons and a warrant to search for
stolen guns and jewelry. The customers were told to leave (one suffered a heart attack) and store was emptied.
Every lock was cut on every safety deposit box and it took three days for everything to be inventoried. Sealed bags
of BU silver dollars owned by an associate of Amon Carter Jr and rolls of BU Walkers were run through a defective
counting machine, scratching many of the coins. The TV and newspapers told about "the biggest fencing operation in
Texas history" being broken up, guns that were semi-automatic were described as "machine guns." A sonic jewelry
cleaner was described as a "crucible for melting down stolen gold." "Smokestacks" on the roof for the "gold bar
smelting operation" were actually for the ventilation and heating system, the gas water heater and the fresh air
ventilator for the bathroom!
Mr. Causey was charged with money laundering, conspiracy, giving aid to individuals who wished to overthrow the
government monetary and income tax system -- all strikingly similar to the charges made against the Liberty Dollar
organization 22 years later. He also faced local charges of organized crime for running a gambling operation...if
you brought the postcard notice of his auctions, he had a drawing for a 10 peso Mexican gold coin.
Mr. Causey lost 75% of his safe deposit box customers, faced lawsuits for coins damaged by the police, and was
forced to accept a plea bargain of 10 years probation. His attempt to sue the government was met with "we can
outspend you and outlive you." (Causey was nearly 80 and died 5 years later, most of the time in severe pain from
prostate cancer which had spread to his bones)
What was never printed in the papers was that NO stolen material was found, no illegal guns, no drugs, very little
current paper money (his customers were mostly "hard money" types who did not trust paper money), there was no gold
refining or smelters, and giving away a door prize is not gambling.
The lesson here, is that in 1985 and in 2007, if you are too vocal about not trusting the US system of paper money,
you wish to hold gold and silver, you believe in the right to own firearms, if you don't think the government
should know all your business and what assets you own, and you feel that the government has powers far in excess of
those intended by the founders..you will be a target for destruction.
Frank Provasek - PCGS Authorized Dealer, Life Member ANA, Member TNA. www.frankcoins.com
0
Comments
people here are paranoid enough..
"Sugar" watches all and sees all
what is a person to do except defend his liberty to the death if
you truly believe in yourself?!?
one thing i am learning about society today is that people are sheep
and as long as they are not bothered they do not care about you.
take Joe horn for example. smoked the two hoodlums robbing a
neighbor's house in texas. many people think HE SHOULD BE IN JAIL!
http://www.cbsnews.com/stories/2007/11/17/national/main3517564.shtml?source=mostpop_story
"They are Miguel Antonio Dejesus, 38, and Diego Ortiz, 30. Official records show that each of them had a prior arrest in Harris County for drug offenses."
oh i will miss them. NOT!
i am disgusted with people and our govt now days. no balls.
sheep.
I would trust gold and silver over paper any day; paper is just lighter and easier to carry in the wallet.
Now days it might be wise to not make waves either. You can't trust the media so forget public support.
<< <i>The store was open 10-6 seven days a week. >>
Thats amazing, considering Texas did not repeal the Blue Laws until the mid 80's... (you could not sell anything except food on Sunday in Texas - Even Wal Mart was closed) Maybe it was 6 days a week...
Fighting the Fight for 11 Years with the big "C" - Never Ever Give Up!
Member PCGS Open Forum board 2002 - 2006 (closed end of 2006) Current board since 2006 Successful trades with many members, over the past two decades, never a bad deal.
yes. that is what bribery, campaign donations, giving jobs to useless
senators/reps when they retire, and etc.. are for.
did you pay your security fees to the right people mister? NO?
uhoh.
lets face it. the USA has problems that are hidden from normal view.
we are no different then 100 years ago. big business runs the country just like back then. breaking a law is for the poor.
<< <i>people here are paranoid enough.. >>
I didn't read the OP (too hard to read formatted like that) but the above quote sticks out....all I can say is "Ya think?"
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
I believe he calls himself a Libertarian.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Guns, Gold, Girls, Guitars, in that order.
Regards,
Wayne
Wayne
www.waynedriskillminiatures.com
<< <i>
<< <i>The store was open 10-6 seven days a week. >>
Thats amazing, considering Texas did not repeal the Blue Laws until the mid 80's... (you could not sell anything except food on Sunday in Texas - Even Wal Mart was closed) Maybe it was 6 days a week... >>
The law banned sales on Sunday of housewares, furniture, appliances, automobiles, and clothing. Coins stores were not restricted, although most were closed Sunday by choice.
Grocery stores were maddening. They were open, but entire sections were roped off or covered with tarps. You could buy baby formula, but not a baby bottle. You could buy candles but not a flashlight. You could buy cigarettes but not an ashtray. You could buy Playboy but not a pair of socks.