Government Theft and Misconduct in Daniel Smith’s MMS Case

By US~Observer Staff

It’s business as usual in the Eastern District of Washington as two corrupt U.S. Attorneys, Michael C. Ormsby and James A. Goeke, work tirelessly to acquire millions of dollars through the meticulous conversion of other people’s property – all in the name of 21st century American justice.

Daniel Smith

This story of malicious prosecution begins when Daniel Smith, a Spokane family-man, whose online business sold an innocuous water purification product known as MMS, had his home and bank accounts raided by agency thugs in June of 2011. Kicking off the racket was Magistrate Cynthia Imbrogno, who rubber stamped the crafty warrants calling for the seizure of Smith’s property based on trumped allegations of “smuggling”.

“It’s awfully hard to smuggle something that’s perfectly lawful to buy, sell, import, export and possess,” says Smith, who informed the US~Observer that, as of 2011, he’s out of the MMS business for good.

After over a year of legal gymnastics, and trying to convince two federal Grand Juries of the alleged “probable cause” that took only minutes to elicit Imbrogno’s eager signature, Ormsby and Goeke now find themselves knowingly and willfully playing a part in the government’s blatant thievery of Smith’s property.

The Fifth Amendment to the federal constitution expressly provides the guarantee that no person shall be deprived of their property without due process of law. But this means very little to individuals like Ormsby and Goeke who appear ready to give up what’s left of their tarnished reputations in exchange for a salary.

“It’s a malicious prosecution aimed at three ends”, says Ed Snook of the US~Observer, “money, money, and money.” This, he says, pointing to three names and faces on his screen.

Forfeiture actions have been an increasing boon for government over the years. In a recent press release, Ormsby bragged U.S. Attorney offices collected $6.5 billion in court actions for fiscal year 2011 – a whopping increase of half a billion (that’s five hundred million) over the year prior. This is in spite of the FBI’s reported decrease in crime the preceding five years. So, what gives?

Facing yearly budget cuts, there remains only one sure way to feed this monster, and that’s for each district to take whatever it can from whoever it can. Over $14,000,000 came through Ormsby’s office in 2011, by and through, largely, the efforts of the infamous James A. Goeke.

Goeke became a lay-low forfeiture aficionado for Ormsby’s office during a high-profile three year investigation into his alleged prosecutorial misconduct in the trial of the late Alaskan Senator, Ted Stevens. After gaining a conviction, Goeke’s team then turned around and asked the Judge to dismiss the case. This has caused speculation the prosecution was really designed by the former administration to politically ruin Stevens. The Senator died two years after losing his reelection in a mysterious plane crash, along with a handful of individuals having “deep connections to government”, reported New York Times.

More recently, NYT reported on the release of a “blistering 514-page report” quoting the investigator who claimed to have uncovered evidence that would “prove beyond reasonable doubt” James Goeke “intentionally withheld and concealed significant evidence that could have resulted in Stevens’ acquittal.” One of Goeke’s fellow prosecutors, Nicholas A. Marsh, also under investigation for withholding evidence in the case, reportedly committed suicide.

In late May, 2012, the Justice Department officially announced Mr. Goeke would be suspended two weeks without pay. “The punishment is a laughable and pathetic attempt to fool the public”, said Brendan Sullivan of Williams & Connolly, the firm that represented Stevens. “The Justice Department has demonstrated to all of us conclusively that they cannot discipline their own.”

James Goeke’s attorneys claimed the investigative report’s “conclusory statements” were not fair in the absence of a trial, presumably because they know this violates the spirit of due process. But in an interesting twist of irony, that is exactly what Ormsby and Goeke asked Judge Edward F. Shea to do when Smith filed his Motion to Dismiss the government’s bogus claim.

According to forfeiture law, in order for there to be a civil forfeiture for smuggling, there needs to be a criminal violation of smuggling. It’s pretty simple. Yet, according to court records there has been no indictment, no charges, no findings of fact, no trial by a jury of peers, and no conviction. Ormsby and Goeke cite unconstitutional case law to support an idea that even in the absence of a due process criminal trial, the court should treat their criminal allegations as true and construe them in a light most favorable to the United States. Now, isn’t that rich?

We say if “conclusory statements” are good enough for the goose, they’re good enough for the gander. Ormsby and Goeke stand as testaments to rampant Justice Department and U.S. Attorney corruption. They have knowingly and intentionally deprived Smith of his funds and property for over a year without due process of law, while Cynthia Imbrogno, Edward Shea, and Chief Judge Rosanna Petersen have acted as knowing accomplices.

In an effort to simply move on with his life and focus more on his family, Smith proposed a generous settlement offer. Smith informed Ormsby and Goeke they could keep the money the government was trying to steal in exchange for the return of Smith’s foreign currency collection stolen during the bogus raid of his home. Smith’s collection of Iraqi Dinar is valued at only a few thousand dollars admits Ormsby, and as Smith points out, it would cost the government much more to go to trial than simply return the stolen envelope.

Ormsby’s and Goeke’s rejection of Smith’s offer illustrates the irrational greed and corruption of both the Justice Department and the Judiciary – which no longer exists to protect society from criminals, but rather to feed on society as criminals. These band of thieves have no doubt considered if Smith’s Iraqi Dinar revalues to a pre-war rate, as rumored ad nauseam for the last seven years, Smith’s currency collection could be worth more than $17,000,000 USD overnight.

Ormsby’s and Goeke’s mode of operation is devious and skeevy. Court records clearly indicate their pattern of activity is not coincidental, but represent a methodically implemented “policy of plunder” made possible by a clear manipulation of the law and the support of corrupt judges.

Another actor in Smith’s case is Christopher E. Parisi, a prosecutor who stood Smith up after granting his request to testify on his own behalf before the Grand Jury. There is nothing potentially more exculpatory than the testimony of one being falsely accused. What other reason could there be to not allow Smith to testify unless the government was trying to pull the wool over the juror’s eyes? Ormsby, Goeke, and Parisi probably don’t want jurors to know their office received a thousand exculpatory affidavits sent by Smith supporters from all over the world.

The tale is as old as time. Corrupt attorneys like Goeke and Parisi consistently withhold evidence that could acquit their targets because that evidence is in conflict with their prime directive. Far too many U.S. Attorney’s jobs (livelihood and career) rely upon one thing: convictions. Innocence is not a factor. Guilt is not a requisite. A corrupt prosecutor will withhold evidence if they think they can get away with it.

This is the modus operandi of the modern legal system as executed in the Eastern District of Washington. The shakedown begins with an allegation, however remotely plausible, coupled with a seizure of assets to make it difficult for the accused to defend themselves. Charges are piled high in an effort to extract a plea bargain. This is all to insure a high conviction rate and big forfeiture wins, and that’s just scratching the surface.

The real criminals that oversee this system operate with virtual impunity until someone stands up. That is why the US~Observer exists, to expose malicious prosecution and the thieves and liars who pretend to be bringers of justice. In Smith’s case, Ormsby, Goeke, Parisi and all their D.C. handlers (you know who you are), along with Cynthia Imbrogno, Edward Shea, and Rosanna Peterson, no-doubt know Smith is innocent, but why would they concern themselves with something so trivial as a man’s life when there’s so much money and opportunity on the table?

The US~Observer answers the question this way. Why would an honest judge or attorney genuinely interested in justice and equity, concern themselves with prosecuting an innocent man, especially when their reputations are on the table? The US~Observer thinks the government should apologize to Smith, return his property, and move on. According to a few of the world’s finest attorneys, Smith’s case is quickly becoming a civil rights liability nightmare.