ORDER DENYING MOTIONS FOR SUMMARY JUDGMENT AND ORDER TO SHOW CAUSE
RICARDO S. MARTINEZ, District Judge.
This matter comes before the Court on the Government's Motion for Summary Judgment (Dkt. # 27) and Defendant Ronald Brekke's "Judicial Notice Summary Judgment" (Dkt. # 29). For the reasons that follow, both motions shall be denied and the Government is ORDERED TO SHOW CAUSE why the action should not be dismissed without prejudice.
In 2012, Mr. Brekke was convicted on a four count indictment. United States v. Brekke, et al, Case No. 10-cr-00328JCC (W.D. Wash.); see also Dkt. # 27, p. 2. Pursuant to Count One, Brekke was found guilty of conspiring to steal government money, present false or fraudulent claims to the Government, and submit false or fraudulent tax returns to the IRS in violation of 18 U.S.C. § 371. Brekke, No. 10-cr-00328JCC. Pursuant to Counts Two, Three and Four, he was found guilty of committing wire fraud on three separate occasions, including one e-mail communication with a co-conspirator, one fax with a co-conspirator, and at least one PayPal payment received by Brekke, in order to carry out a 1099-OID tax scheme. Id.; 18 U.S.C. §§ 1342, 1343. He is currently serving a 144 month sentence at the Federal Correctional Institution in Bastrop, Texas ("FCI Bastrop") for all four crimes. Dkt. # 27, p. 2.
The Government filed a complaint for permanent injunction and other equitable relief against Mr. Brekke on July 20, 2012, following his criminal conviction. Dkt. # 1. In response, Mr. Brekke filed a "Non-Negotiable Notice of Acceptance" indicating that he would "accept for value and consideration all offers/summons/claims/charges/orders/motions/trials and the like in the matter of United States of America v. Ronald Brekke...'" and "not argue the facts" in exchange for the Government's agreement to (1) "recall all securities, bonds, debts, pledges, insurance, and any other debt obligations related to this/these account(s) and... not issue any others"; (2) "adjust and set-off all public charges, debts, taxes, and dues"; (3) "post full settlement and closure of the account(s)"; and, (4) dismiss the case. Dkt. # 3, p. 1-2.
In September 2012, the Government responded to Mr. Brekke's "Notice, " treating it as a motion to dismiss and refuting it for lack of legal basis. Dkt. # 5. Later that month, Mr. Brekke filed a "Notice of Dishonor" indicating that he had not been "paid" and his "notice of acceptance" had not been "accepted"; therefore, he intended to "look to [the Government] for payment or performance." Dkt. # 6, p. 1-2. Soon thereafter, Mr. Brekke filed a "Judicial Notice" requesting "this court take Judicial Notice that unless the Prosecution can produce an actual injured party, i.e. natural person-flesh and blood man or woman who can make an appearance on the record and who can submit, into the record, a signed and sworn Affidavit as to the nature and extent of his/her alleged injuries, then this court lacks subject matter jurisdiction and the named Plaintiff and Defendant are not natural persons, i.e. flesh and blood men or women, but are fictions of law." Dkt. # 7, p. 1-2.
The Government moved the Court to enter default pursuant to Rule 55(a) for Mr. Brekke's failure to answer the complaint. Dkt. # 8. The following month, Mr. Brekke again filed a "Notice of Dishonor" indicating his "non-negotiable notice of acceptance" had "been dishonored or [had] not been paid or accepted." Dkt. # 9, p. 1.
The Court issued an Order to Show Cause and directed Mr. Brekke to file a pleading in accordance with Fed.R.Civ.P. 8. Dkt. # 10, p. 1. Mr. Brekke filed a response to the Order on November 19, 2012, stating that he "accepted for value' (AFV)" the Court's "offer order to show cause'" pursuant to the
AFV remedy [which] is based on the premise of (1) the corporate United States... ongoing bankruptcy/reorganizations..., (2) the replacement of lawful money with the private debt-based currency or the private' non-government International Banking Center called the Federal Reserve, (3) the pledge by the bankrupt U.S. corporation of actual title to all real property of the American people, their wealthy assets and labor productivity-collectible as tax revenues, as collateral for corporate United States public debt, and (4) the provisions made by the bankrupt U.S. Corp. to provide the American people (as Creditors, Principals and Beneficiaries) consideration/exchange for this full faith and credit' pledge by set-off or discharge of all debts held in the name of the... legal fiction/US person, which in this instance is RONALD BREKKE. Therefore, I stipulate this matter be discharged/vacated.
Dkt. # 12, p. 1-2.
In light of Mr. Brekke's filings, the Court declined to enter default judgment against him as default judgments are disfavored and because Mr. Brekke had appeared on the record on his own behalf. Dkt. # 13. Mr. Brekke then proceeded to file a series of "Notices" re-asserting his claims as quoted above. See generally Dkt. ## 16, 18, 22, 26. On July 2, 2013, the Government filed a motion for summary judgment "because there are no disputed material facts and the United States is entitled to judgment as a matter of law." Dkt. # 27. Defendant replied with a "Notice" in which he "refused for cause conditional acceptance order" as "purely commercial matters...." Dkt. # 28, p. 1.
The Government urges this Court to grant summary judgment on its request for an injunction against the Defendant. Dkt. # 27. However, the Government's argument is based entirely on tax violations that occurred prior to October 31, 2012. For these crimes, Mr. Brekke was tried, convicted, and sentenced to 144 months in prison plus three years of supervised release, during which time he will be prohibited from acting as a tax preparer. Dkt. # 27, p. 2. The Government does not suggest that Mr. Brekke has engaged in criminal behavior since his incarceration last year. Rather, the Government contends it is "not ...