* Local currency = domestic terrorism *

The leader of a group that marketed a  fake currency called Liberty Dollars in the  Asheville area and elsewhere has been  found guilty by a federal jury of conspiracy  against the government in a case of  “domestic terrorism.”

Bernard von NotHaus was convicted Friday  at the conclusion of an eight-day trial in U. S. District Court in Statesville. The jury  deliberated less than two hours, according  to the Department of Justice.

Charges remain pending against William  Kevin Innes, an Asheville man who  authorities said recruited merchants in  Western North Carolina willing to accept the  “barter” currency, according to court  records. Innes was indicted along with von  NotHaus in 2009.

“Attempts to undermine the legitimate  currency of this country are simply a unique  form of domestic terrorism,” U.S. Attorney  Anne Tompkins said. “While these forms of  anti-government activities do not involve violence, they are every bit as insidious and  represent a clear and present danger to  the economic stability of this country.”

The case was investigated by the FBI,  Buncombe County Sheriff’s Office and U.S.  Secret Service with help from the U.S. Mint.

“We are determined to meet these threats  through infiltration, disruption and  dismantling of organizations which seek to  challenge the legitimacy of our democratic  form of government,” Tompkins said.

Von NotHaus, 67, faces up to 25 years in  prison during sentencing, which hasn’t  been scheduled. The government also is  seeking the forfeiture of about 16,000  pounds of Liberty Dollar coins and precious  metals valued at nearly $7 million.

According to court documents, von  NotHaus founded the National Organization  for the Repeal of the Federal Reserve and  Internal Revenue Code in Evansville, Ind., in  1998, and developed the Liberty Dollar.  He touted the silver medallions as an inflation-proof alternative to official  currency.

The coins were marked with the dollar  sign, the words “dollar,” “USA,” “Liberty,”  “Trust in God” (instead of “In God We  Trust”) and other features associated with  legitimate U.S. coins. 

A 2007 affidavit said more than 70  businesses in the Asheville area agreed to  accept the Liberty Dollar. Innes held the  title of North Carolina regional currency  officer and was one of three members of  the group’s executive committee, an  indictment states.

The charges against Innes include passing  coins resembling genuine U.S. coins and  intended for use as money, mail fraud and  possession Liberty Dollar coins with intent  to defraud. Authorities said when he was  arrested that he faces up to 45 years in  prison. 

Despite warnings from the federal  government, Innes told the Citizen-Times  in 2006 that Liberty Dollars were legal.

“One of the first things I did when I started  this in Asheville was to go to the police and  tell them what I was doing,” he said.

Federal agents raided von NotHaus’  company headquarters in 2007 and seized  documents and precious metals. A private  mint in Coeur d’Alene, Idaho, that  produced the coins was raided the same  day.