Promoter a No-Show at Debt Seminar

In the wake of a federal investigation and a judge’s warning that her activities may constitute bank and mail fraud, M. Elizabeth Broderick was a no-show at her own seminar Sunday, which still drew nearly 500 people from across the nation to Lancaster hoping to hear her detail her methods for paying off debts for free.

At her popular seminars, held once every two weeks throughout Southern California, but most often at the Essex House Hotel’s convention center, Broderick has taken orders for checks bearing the words “Payable at Office of Postmaster,” which she says can be used to pay bills. Prosecutors have said in court documents that the checks are worthless, and federal officials say they have records of her issuing more than $30 million worth of the checks.

Broderick is a pupil of tax resister LeRoy Schweitzer, whose recent arrest in Montana sparked the ongoing standoff between federal agents and members of the group known as “freemen.”

Even though notices from the U.S. attorney were taped to the doors of the hotel convention center Sunday, warning that the checks were worthless, the seminar went on as scheduled, without the keynote speaker.

At Sunday’s session, the parade of speakers lectured the audience of mostly Latinos, African Americans and Asian Americans on what they described as the corruption of the U.S. government and the need to regain the ideals of the American Revolution. Many of the speakers made jokes about undercover federal agents, whom they assumed were in the crowd.

They detailed to attendees the so-called “patriot movement,” which holds that people can renounce their U.S. citizenship and become “sovereign citizens,” creating their own government, complete with common-law courts.

But also on Sunday, a woman who only last week identified herself as Broderick’s attorney distanced herself from the lecturer, calling her checks worthless.

“I’m having nothing to do with her,” said Ivy West, who represents “sovereign citizens,” acting as their attorney even though she said she is not a licensed lawyer.

West said that after studying Broderick’s documents late last week, she concluded that the checks were no good.

“She’s done a lot of damage,” West said in a telephone interview. “If you’re having seminars and teaching people, that’s one thing, but there’s no such thing as a free lunch.”

Broderick, 52, could not be reached for comment. She was hit with two temporary restraining orders filed by the U.S. attorney in Los Angeles last week, barring her from issuing or promoting her checks, which she claims are backed by liens lodged against the government.

Although authorities say banks have rejected most of the checks, that hasn’t stopped Broderick’s disciples from using thousands of the slips to try to pay off mortgages, medical bills, bank loans and credit card debt.

Most attendees remained optimistic, however, having already plunked down the $125 preregistration fee, paid by money order, cashier’s check or cash. “If this really was bogus and this was really that bad, wouldn’t they have arrested her?” asked a 31-year-old Downey man.

Broderick’s aides told attendees--some of whom had flown in from the East Coast--that there may be a delay before they receive their checks. A federal judge is not scheduled to hear arguments to lift the restraining order until April 16.

In the past, Broderick has defended the checks’ validity.

U.S. District Court Judge William Keller has said the checks appear to be bank and mail fraud. “There is no legal authority for what they are doing here,” he said in court last week in Los Angeles.