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You cannot get what you’ve never had unless you’re willing to do what you’ve never done.


When I despair, I remember that all through history the ways of truth and love have always won. There have been tyrants, and murderers, and for a time they can seem invincible, but in the end they always fall. Think of it - always.
- Mahatma Gandhi


The Lion asked the Wizard one time, "When does a slave become a king?"

"When You start acting like one! "

Otherwise You remain a slave all Your life.

 GAAP Principles 
GAAP Principles 


GAAP Principles
by Todd-Ellis: Swanson


For those who don't know me I was a CPA from November 1995 until December 30, 2005.  I was trained about 5 years ago by another CPA, Tom Schauf, to be an expert witness regarding bank loans, specifically, whether the bank actually loaned you any of their money when you got your mortgage loan or car loan.  Tom is the author of America's Hope: To Cancel Your Bank Loans Without Going To Court, The American Voters vs. The Banking System and Top Secret Banker's Manual.  I will explain this banking system by briefly summarizing the 6 page banking letter I have provided to people who have requested it, to trustees who have requested it on behalf of trusts and then tell you what has happened to me for exposing the truth.  Regardless of what has happened or may happen, it is my conviction as a Christian that I am to obey God and leave the consequences to Him.


When a bank makes a loan they must follow Generally Accepted Accounting Principles (GAAP).  Title 12 of the United States Code, § 1831n (a) requires all Federally-insured (FDIC) banks to follow GAAP.  GAAP requires the use of double entry bookkeeping journal entries.  Double entry bookkeeping journal entries work like this.  When a bank accepts cash, checks, negotiable instruments, promissory notes, or any other similar instruments from a customer and deposits or records the instruments as an asset, they must record an offsetting liability that matches the asset they accepted from the customer.  The liability shows they owe the customer the money they accepted from the customer.


You see, money is not limited to just cash.  Money is anything that has value and banks or people accept as money and money does not have to be issued by the government per Federal Reserve Bank of New York publication I bet you thought. by David H. Friedman Fourth Edition 1984.  Page 9 explains that cash and checkbook money have equal value.  Page 27 explains that the banks create new money by depositing IOU's, promissory notes, offset by a bank liability called a checking account balance.  Page 5 says, "Money doesn't have to be intrinsically valuable, be issued by a government or be in any special form.".  Federal Reserve Bank of Chicago publication Modern Money Mechanics by Anne Marie L. Gonczy, revised June 1992, shows standard bookkeeping entries from pages 7 to 33 proving that money is recorded as a bank asset and a bank liability is evidence of money a bank owes.  The bookkeeping entries prove that banks accept cash, checks, drafts and promissory notes as money deposited to create checkbook money, which are bank liabilities, which show that the bank owes money to the one who deposited money at the bank.  Federal Reserve Bank of Dallas publication Money and Banking page 11 explains that when banks grant loans, they create new money.  The new money, new "loan becomes a new deposit, just like a paycheck does."  Modern Money Mechanics page 6 says, "What they do when they make loans is to accept promissory notes in exchange (an exchange or swap is not a loan) for credits to the borrowers' transaction accounts" (emphasis added).  Federal Reserve Bank of Chicago publication Two Faces of Debt by Anne Marie L. Gonczy and Timothy P. Schilling, revised September 1992, discusses how deposit liabilities arise.  Page 19 says, "But a depositor's balance also rises when the depository institution extends credit?either by granting a loan to or buying securities from the depositor.  In exchange for the note or security, the lending or investing institution credits the depositor's account or gives a check that can be deposited at yet another depository institution.  In this case, no one else loses a deposit (at that point in time) (emphasis added).  The total of currency and checkable deposits?the money supply?is increased.  New money has been brought into existence by expansion of depository institution credit" (emphasis added).  


So what happened is the bank accepted your promissory note as money and deposited the money/promissory note into a checking account with your name on the checking account without disclosing this to you.  This means that the bank recorded the promissory note as a loan from you to the bank.  When the bank deposited your $100,000 promissory note into a checking account, the bank created $100,000 of new bank credit money (the bank did not loan money, they loaned the credit of the bank). I believe the bank, either out of ignorance or deceit, concealed the substance of the transaction, the bookkeeping entries, that would prove you were the lender and the bank was the borrower and the bank uses the form, the promissory note, to try and convince you that the opposite occurred and that you were the borrower and not the lender.


For those interested in learning more, I unreservedly recommend reading the books Money1 and The New Economic Disorder2.


1.  Ewart, James E.  MoneySeattle, Wash.: Principia Publishing, 1998.
 (ISBN 0-9663570-0-0.)


2.  Bates, Larry.  The New Economic DisorderLake Mary, Florida:  Creation House, 1994.

 (ISBN 0-8841938-3-7.)


In June, 2004 I received several letters from the SC Board of Accountancy (Board) concerning complaints that had been filed against my CPA license by several bank attorneys.  These same complaints were also filed against my NC license.  The Board requested I provide them with all the documentation I had to support what I stated in my letters.  I provided the Board with that information.  One year latter I was subpoenaed to appear for a hearing before the Board.  That hearing was postponed until October 27, 2005. 

The hearing lasted approximately 12 hours.  The transcript is 376 pages.  I provided 24 exhibits containing approximately 189 pages and I had more exhibits to submit had there been more time.  Of the exhibits, 25 pages were from 3 college level Accounting/Economic/Banking textbooks; 21 pages were from 2 college level history books; 38 pages were from 3 Federal Reserve Bank Publications; 31 pages were from 2 Continuing Professional Educations courses I took on Bank Auditing and Accounting; and 8 pages were from the Congressional Record.   I was told secondhand that the board reached their decision TO REVOKE MY LICENSE FOR 3 YEARS in less than 30 minutes.  No one rebutted the exhibits, I relied upon for the details in my letter, during the hearing and the exhibits were not rebutted in the Final Order.  In fact, the exhibits are never mentioned and yet it takes a close scrutiny of the exhibits to understand and grasp the subject matter as it relates to the information in my letter.  The Final Order doesn't even reflect what actually took place on the record.

Between the date of the hearing and December 30th when the Final Order was signed, evidence has been gathered that would suggest my due process rights were violated and that the Board was biased for several reasons I am currently not able to discuss.

I have been fighting this battle for 18 months now and I will be appealing, next week, the Board's Final Order to revoke my CPA license for 3 years.  To properly put forward my case on appeal I will need a new attorney who is familiar with employment and administrative law. The time and attorney fees have been a huge drain on my finances. I have never asked for money to fight this battle these last 18 months because I had the funds to fight it.  However, I do not have the funds to hire a new attorney for the appeals process.  Can I file the appeal without an attorney?  Yes.  Am I able to properly defend myself and put forward my case without an attorney?  No.  Any financial help and/or prayers would be greatly appreciated.  Thank you.


Todd Swanson
c/o  111 Mountainside Way
Greenville, So.Car.  29609


The Truth Shall Set You Free

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