Profiteering off the prisoners / Prime stockholders in Correction Corp. of America / Funding Streams Exposed / Corporate Public Private Scheme Exploiting, Criminalizing Vulnerable People

Research and excerpts from LETTERS FROM JAIL

From: Lynn Schmaltz

I had many opportunities to educate women on the monetary system of jail. The moment an order is written, whether it’s a warrant or a traffic ticket, or whatever, the money machine is activated. Every prisoner has a monetary value to our government whether its local, county, state or federal. Bonds are written based on the person’s name and social security number and are sold through a brokerage firm such as AG Edwards or Merrill Lynch who has the contract to sell all the prison bonds for the city, county, state or federal prisons. Over 50% of the money market bonds right now are purchased in Japan or China. I’ve been told by researchers that Walmart and, used to be, Kmart also purchase these bonds, Walmart mostly doing so by emptying out bank accounts at night. Both companies are fronts for enormous money machines.

The way the bond works is that a monetary value is placed on the alleged crime and then factored the way banks factor their money. In other words if a person is convicted of a felony the ‘value’ would be $4 million. The county/city/ state then multiplies it by ten, so the bond that goes out for sale with the prisoner’s name and social security number is a short-term ‘promissory’ note. It’s offered at $40 million. Perhaps an investor will offer 40% of the $40 million, or $16 million. Once this ‘promissory note’ of the face value of $40 million reaches the banks it is then multiplied again by 200 to 300% and sold as bank securities. For those of you who wonder why the US has more people in prison per capita than any other nation on earth, you’ll begin to understand how we can have a weakening economy and still fund wars overseas. It’s all based on prisoners….in other words, prison for profit.

Knowing all this and knowing that a prisoner can have a ‘net worth’ of say, $10,000 per day in the money markets, helped me explain to many bewildered women why they were in jail. We were only merchandise in a warehouse. The storage was pretty cheap; one woman while in jail researched the cost of feeding prisoners per day which ranged from 74 cents to $2.72 per prisoner per day.


From: “Lynn Schmaltz”
Sent: Friday, September 24, 2004 8:46 AM
Subject: Re: Paine Webber


*Owners of the Prison Systems in America* CORRECTION CORP OF AMERICA headquartered in Nashville, Tennessee owns all private prison systems in AMERICA and are selling the commercial paper. How it Works: A bid bond is done on Form 24, which comes out of the GSA Office (General Services Administration which is out of GAO (General Accounting Office} which is under the Comptroller General. This Blake Bond Bid Bond is promulgated at the time the social security card is issued. When you are arrested the bond is filled out and they issue a Performance Bond, which is done from Form 25, and then they do a Payment Bond, which is a Form 25A.

The Bonds are being underwritten by the Banks. This is where the PAINE WEBBER GROUP comes in. The Plaintiff in all criminal tax cases in the USA is the PAINE WEBBER GROUP as the UNITED STATES OF AMERICA. The PAINE WEBBER GROUP is a group of international businesses. The PAINE WEBBER GROUP is providing the Securities for the prisons and is selling the Bonds, and the Banks, The ABA (AMERICAN BANKING ASSOCIATION) like LEHMEN BROTHERS, in New York City, are the underwriters on the Bonds. The Banks (the underwriters) is where the money is originally coming from.

A six digit tracking number is issued for the Certificate of Stocks in the Commodity and Security Exchange in the USA by CUSIP (see and the law enforcement tracking software) and a nine digit number (called Ordnance Number) is issued for the Certificate of Stocks going internationally to ANNA (Lynn’s note: see link for ANNA which is in Brussels, Belgium at ). These Securities are sold through the Commodity and Security Exchange. The bottom line is they are selling stocks in the prison system. The jails are referred to as Warehouses and the prisoners are called Goods (oops, Lynn had it ‘wrong’….she told the ladies in Bernalillo County Metropolitan Detention Center that we were in the Warehouse and we were the ‘Merchandise’ which explained the many flimsy reasons many of the ladies were in the prison… was just business, and just revenue). They are selling the Goods or the Account as Chattel, and as Commercial Paper on the Stock Exchange. Reminds one of the days when slaves were bought and sold on the auction block!

The PAINE WEBBER GROUP is the prime stockholder in this CCA (Correction CORP of America). (Lynn’s note: the transport company who transported her to Colorado in a van with 16 other prisoners being transported about had the words “Transport Corporation of America….Nashville, Tennessee.” Transport rides are also called ‘diesel therapy’ by those who know about them.} However twenty of the largest companies such as WAL-MART; EXON; GENERAL MOTORS; FORD MOTORS; CHEVY; TEXICO; CITY CORP; IBM; EXPHILIP; HEWLETT PACKARD; VERIZON; UNITED POSTAL SERVICE (UPS); and etc. are also involved as well as other stock holding corporations (There are sixteen pages of the names of corporations that hold these stocks amounting to billions of [dollars].) Of course the monies generated is all off budget with no accounting to the People, even though the CORRECTION CORP OF AMERICA through the PAINE WEBBER GROUP is acting in the capacity of the UNITED STATES OF AMERICA.

AMERICAN LEGISLATIVE EXCHANGE COUNCIL: Promotes Privatization of the Prison System. Paul Weybrick (may be miss spelled) runs what is called the FREE CONGRESS FOUNDATION, which owns the AMERICAN LEGISLATIVE EXCHANGE COUNCIL. THE REASON FOUNDATION and THE CORNELL COMPANY are involved as well.

The following are notes I wrote after Paul and I were released from Colorado on August 20, 2004. Right now there are many forms of jail in the US–actual jail, CCP ankle bracelet, transport jail, probation, parole………they all generate income:

Paul and I were released on Friday on personal recognizance and allowed to go to New Mexico. We have a hearing in CO on Sept 13, 04. We got home Sat. night and have been doing catch up here at home today. I’ll write an update on Monday or Tuesday. I will especially have some words about the very heinous prison transport system in our country. For now suffice it to say that it took 20 hours in a prison van with 16 prisoners to get from Albuquerque to Hot Sulphur Springs, normally a 8 or 9 hour trip. All of us rode in hand cuffs and shackles the entire trip. There were 3 stops for McDonalds’ ‘food.’ No one but the officers got off the van unless they were being dropped off. No exercise at any point. No movement allowed but to use the porta potty on board. Cattle being transported across country are generally treated better. I talked with a man who’d been on transport from California to Colorado since July 8, 04. My transport date was August 11, 04. Someone in the Midwest told me he knew of a prisoner being transported for six months and occasionally dropped off in a county jail somewhere to await a different transport van. It’s my understanding that once you’re a prisoner in the system, the county/agency holding you is floating bond for $10,000 per day with your name and your bar code (Soc. sec. #) and these bonds are bundled periodically and sold through Merrill Lynch, AG Edwards, etc. for each state.

Prison for profit……’s not just baloney and white bread. More later and thanks for keeping up your daily news. Paul was released from CCP (ankle bracelet) in Albuquerque and allowed to drive up to Hot Sulphur where he spent another 3 days in jail (my time over the summer has been 5 days in May, 18 days in June-July, 15 days in August and on house arrest, bond from May 24 to June 25, and ankle bracelet from mid-July to August 5, 04). Thankfully, Paul with all his transplant medications, diabetes medications, was in from May 19-24, 04. The rest of the time he was on bond or ankle bracelet house arrest. I doubt he’d have survived a prolonged transport situation. The alleged crime? “Influencing a public office” and “filing a false document.” This is what they called our UCC1 financing statement sent when we informed public officials there would be a fee for using our copyrighted property (PAUL SCHMALTZ and PATRICIA SCHMALTZ), which they did anyway.

And, of course, there were no repercussions for those officials when they held a fraudulent, unpublished sale our home/business on the court house steps, etc. As you well know there is no remedy in the courts of any kind. They completely ignored our sovereign status with Little Shell Pembina and Apostille with the sovereignty filed by cancellatura.

Lynn Schmaltz


I just found the notes on Jack Smith and Gene Keating’s research on prisoner bonds (not the kind you bail out with). is the criminal justice tracking system software which shows the software that metro police departments use. Go to the user manual and it takes to 2% appearance bond fees. Then go to special operating software for courtrooms and it shows you how the 2% appearance bond fees are tied to the defendant’s account. Go to the bottom in the original user’s manual and it says, “Fine accounting.” Further up the page is assessments. it shows how it’s all tracked from beginning to end. FONTDIV

A caller wrote to a court once and send, “Send me a complete accounting of my case.” It came back showing a $90,000 active security and they said, “Your paperwork has been forwarded to the Department of Justice.” The caller wrote a week later and said, “Send me a final pay-off amount for all my money. What would there be after 18 years without any fees, fines and interest.”

They said, “We sent all your stuff to the Department of Justice. Go to GOTOBUTTON BM_3_ and you’ll see all there is to see about a public witness. The caller downloaded it. Roger Elvick had written something about stock exchange transactions.

Once you get the bond you are creditor in fact. Alan comes on the phone call with Jack Smith who had studied Roger Elvick’s stuff intensely. He understands marketing accounts and the courts. Roger had said, “We have to find a way to track the account.” The caller on Jack’s program grabbed the phone book and just randomly picked a brokerage company …….

AG Edwards. He called up to talk to a broker. Caller says he’s trying to figure something out. If there was someone trading bonds in the bond market in the caller’s name without his permission could he track the account. AG Edwards broker says they would have to have a social security number or a driver’s license number. Caller says he knows someone who was trading in Roger Elvick’s name. Broker asked if it was a friend, family member or corporation? Caller said to the broker it was a corporation. Broker then said every bond has a cusip #……..Committee on Uniform Securities Identification Process Number.

You can go to There are two main outlets — Chicago and New York. You’d have to find out who their transfer agents are and then you could track the trade. You can even find out if funds are being embezzled off the account.

When the cop gives you a ticket and you go into court, the judge is using this as a credit item to trade in the markets and he’s doing calls. What if someone went in and caught them short on the margin call?

The broker at AG Edwards knew what the caller was talking about. He said, “IF you want to follow this up anymore, you’ll have to go to the Securities Exchange division in your state. So, the next thing the caller did was check the Department of Financial Institution of his state on the web and looked up securities exchange division. The advisory committee showed AG Edwards was the transfer agent for the state, making all the bond trades.

The cop does all the paper work in the car. He is creating the assessment and the paperwork in his car when he makes out the ticket by using name, social security number, and driver’s license number. They assume you voluntarily gave it to the cop and make the trade. Every cop is a private business contractor working for the corporation. If this is true then you can follow up on every trade made in your name on your exemption. Find the bond written on your birth certificate. Use that and access your exemption through the stock market that way.

Roger Elvick knew this. The transfer and transfer agent and the number with social security number and every case number will be listed. Every traffic ticket will be listed. Broker says if Ameritrade had a trade he could track it, but he can’t track AG Edwards, and others. It’s going to take someone higher up. The brokers are enslaved by their industry. When you have a job your company is using your social security number.

They’ll keep taking your exemption even if you leave that company. AG Edwards sells the prisoner/traffic bonds for several states. How does this correlate with admiralty? Jack Smith says that in admiralty the vessels are carrying commodities and goods. So they carry invoices, packing slips and bills of lading. Warrants and securities back up the goods. Lag–goods that float on the water. Gene Keating says that Title 46 is the shipping code in admiralty. Secretary of Transportation is the receiver of the bankruptcy of the UNITED STATES — section 1247 Title 46–he’s the receiver and trustee. He’s talking about the carriage of goods sea act which is Title 46 in the appendix. Bills of lading are all documents of title–warrants and documents are all under the UCC and deal with documents of title. Title 46 Sections 181-189–admiralty is very complex. Even judges are taught on a need to know basis. Appellate judges often don’t know all this.

This all leads to different aspects of admiralty/maritime law, both inside and outside the courtroom. The carriage of goods act, Title 46, is all governed by the Secretary of Transportation–the Coast Guard, Secretary of Commerce and the treasury are all under Secretary of Transportation and it’s all in commerce. The Secretary of transportation is the head of the maritime commission. All vessels are registered under Title 46, Section 31-301 which talks about maritime liens that arise by operation of law. There’s a maritime lien commission. The Secretary of Transportation is running everything because we are all on the ‘highway of commerce’–the water came inland, so to speak, and now it’s here under the law of trust. Everyone who comes into the courtroom is a ward in admiralty–a ward of the court. We’re in an “in rem” proceeding in admiralty in a title dispute and we have to come in as the title holder or have interest or claim in the subject matter of the complaint, or we are the ‘vessel’ and they have arrested ‘the vessel.’

We’re not in common law in the courts, we’re in admiralty and they get jurisdiction by arresting the vessel. They (lawyers/district attorneys/law enforcement) don’t use the proper process and they need to trick, cajole, deceive, pressure us to do whatever they need to do and have us make a mistake to give them ‘in personam jurisdiction’ over us when we take on the attributes of a general appearance to the subject matter of the pleadings against the defendant “in rem” and we start acting in any capacity on the merits of the charges or by taking on the persona of the defendant vessel ‘in rem.’ There’s lots more to this, but I think you get the gist about ‘prisons for profit.’

In tying this all together it would appear that there are many laggard souls, some are incarcerated in prison and some are working in the prisons. And many, many more are indifferent to what is going on in our country as far as prisons and prisoners are concerned. When I explained my case to women, many said, “Why do you bother trying to change things? To stand up to the system?” I’d always explain to them the concept of our earth trying to ascend to higher consciousness and take all the souls along, even the laggard souls. I’d explain how we could use the light of the angels, masters and God through us as flashlights …..

“Perfect sincerity and transparency make a great part of beauty,
as in dewdrops, lakes, and diamonds.” ~ Henry David Thoreau

Friday, November 4






Mike Wasdin is the guest editor today.


Yesterday the link to this article was incorrect until around 9:30 a.m. ET, so if you missed it, here it is again.  “From Aristotle to Goethe to Spencer to Rothbard, there have been those who stood up to the State and exposed the lies of its leaders.  A true patriot fights for liberty, not a piece of paper, a piece of cloth or a liar seeking votes.  Let reason be your guide and seek the truth before consenting to be governed by thugs and thieves interested in only power.”  Column by Mark Davis.

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The White House gift shop .

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Time to find a new scapegoat.

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“Did the Bush White House, in a deliberate and organized manner, misrepresent the truth to Congress, the American people and the world in making its case for the military invasion of Iraq?”

Freedom Summit

Next weekend, November 12-13 at the Best Western Grace Inn at Ahwatukee.


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In the DVD player: Goodbye, Lenin! (good), The Beast (recommended), Guns, Germs and Steel (recommended), Reno 911! Season 2, Disc 1 (recommended), The Bear (amazing animal shots), Mystic River (recommended), Me and You and Everyone We Know (pretty good, very quirky), Big Fish (not recommended), My Cousin Vinny (horrible), Raising Helen (pretty good), Almost Famous (OK)

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Nov 1, 2005
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