• 48 mins Police Bust China’s Largest Bitcoin Hacking Scheme
  • 3 hours Venezuela Undergoes “One Of The Greatest Currency Devaluations Ever”
  • 19 hours Gold Is Up But Bears Still Have The Advantage
  • 20 hours Consumers Show ‘Extraordinary’ Shift In Sentiment
  • 21 hours Uber Falling Victim to Investors’ Short-Term Thinking
  • 22 hours Has Eastern European Economic Growth Hit A Ceiling?
  • 23 hours Wall Street Confident In Trade War Breakthrough
  • 1 day Emerging Market Woes Spark Surge In Bitcoin Trading Volume
  • 1 day Saudis Sovereign Wealth Fund Eyes Tesla Rival
  • 2 days Inflation Wipes Out Wage Growth
  • 3 days Turks Flock To Safe Haven Assets As Lira Plummets
  • 4 days Did North Korean Hackers Just Steal $13M From Global ATMs?
  • 4 days Asian Tech Stocks Rebound After A Tough Week
  • 4 days Switzerland Bans New Audi, Mercedes, Porsche Imports
  • 4 days Sealing Off The North Korea Smuggling Loophole
  • 4 days This Tech Giant Is Pushing For Blockchain Adoption
  • 4 days Venezuela’s Gold Reserves Are Reaching Critical Levels
  • 5 days Brexit Woes Weigh On The British Pound
  • 5 days Forget Turkey, This Is The Biggest Threat To European Finance
  • 5 days There’s No Hiding From Google
Elliott Wave International

Elliott Wave International

Elliott Wave International

Elliott Wave International (EWI) is the world's largest market forecasting firm. EWI's 20-plus analysts provide around-the-clock forecasts of every major market in the world via…

Contact Author

  1. Home
  2. Markets
  3. Other

Why The IRS Seized All the Money from a Country Store

Another shot fired in the "War on Cash"

Editor's note: You'll find the text version of the story below the video.

Lyndon McLellan owns the L&M Convenience Mart in rural North Carolina. A few months ago, the Internal Revenue Service went to McLellan's bank and seized all the cash in his store's account.

Why?

McLellan had violated a "structuring" law by making cash deposits of under $10,000. Structuring laws are supposed to catch drug traffickers and money launderers. But small business owners can also unknowingly run afoul of these laws.

Last July, a swarm of officers from North Carolina's Alcohol and Law Enforcement, the local police and the FBI descended on McLellan's place of business.

The agents told the small business owner something that shook him to his core: The Internal Revenue Service had seized all of the money in L&M's bank account: $107,702.66.

"'Are you telling me you took my money?'" McLellan recalled asking the agents. "I didn't understand what was going on. They dropped a bomb on me. I was lost for five to 10 minutes. I can't believe that y'all guys can walk in here and tell me y'all took every bit of my money out of the bank."

The Daily Signal, May 11

McLellan is still fighting to get his money back.

"In 2005, the Internal Revenue Service made just 114 structuring seizures. By 2012, that number had risen to 639."

This story shows how the government can financially upend the lives of citizens.

Consider this excerpt from the March Elliott Wave Theorist:

The most vulnerable money is sitting in bank accounts. Depositors in Cyprus banks found that out in 2013, when the government seized a large portion of uninsured deposits to pay its debts to the EU....

...I have long advocated holding outright cash notes, which are already preserving value better than commodities and negative-interest-rate bonds. But we cannot depend upon government to act fairly. If in a future panic central banks opt to recall cash, even cash-holders will be doomed. All authorities need do is demand that people turn in their cash for new notes worth 1/10 as much. In 1933, the U.S. government confiscated gold because that was the money of the day. Now, dollar deposits and cash notes are the money of the day, and they are even easier to seize.

We've been updating subscribers on the "War on Cash."

  • JPMorgan Chase Bans Storage of Cash in its Safety Deposit Boxes (InfoWars)
  • Citi Economist Says It Might Be Time to Abolish Cash (Bloomberg)
  • Sweden moving towards cashless economy (CBSNews)
  • Large U.S. bank bans wire transfers, limits cash withdrawals (TheCrux)

Giant financial institutions and the government are now waging a large-scale war on cash.

This is the time to get the financial insights you need to protect your hard-earned savings.

 


The War on Cash

Read our Free Report: War on Cash

Big government is conspiring with big banks to wage a secret war on cash by limiting and even outlawing the use of physical currency. This development may have a devastating impact on your hard-earned savings unless you prepare right now.

Get your free report now »

This article was syndicated by Elliott Wave International and was originally published under the headline Why the IRS Seized All the Money from a Country Store. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

 

Back to homepage

Leave a comment

Leave a comment