Imprisoned Tax Resister Faces Charges in Pyramid Scheme

Adding to imprisoned tax resister M. Elizabeth Broderick’s legal woes, state authorities have filed 45 fraud and grand theft charges against her involving a pyramid scheme she allegedly operated before turning to what federal authorities call a phony check scheme inspired by the Montana “freemen.”

Broderick, 53, of Palmdale, cheated about 900 investors out of thousands of dollars through her California Gold Co., which operated out of offices in Santa Ana and Long Beach, said Van Coleman, special agent with the California Bureau of Investigations.

Colorado authorities say Broderick was convicted of running a pyramid scheme there in 1987.

Federal authorities arrested Broderick late last month on suspicion of raking in $1.5 million by charging up to $200 for admission to seminars at which she promoted the use of homemade checks, supposedly backed by liens against government officials.

A member of the burgeoning “patriot movement” who contends that she is beyond the jurisdiction of the federal courts, Broderick remains in custody in Los Angeles on federal fraud and conspiracy charges.