Is Your Birth Certificate Worth Millions? The Birth Certificate Bond Myth Explained

What the birth certificate bond myth claims

TreasuryDirect describes the common version this way. When the United States left the gold standard in 1933, the story goes, the federal government somehow went bankrupt. Supposedly the government then became a corporation and turned its citizens into capital value, by trading their birth certificates and making each person a corporate asset, often called a "strawman."

Blogs and videos built on this idea promise that your "birth certificate bond" can wipe out your debts or let you collect money or securities. Some sites sell videos, webinars and coaching on how to do it.

What the Treasury says

TreasuryDirect states that this story is a variation of an older scam, the bogus sight drafts and bills of exchange drawn on the Treasury. It says no one has profited from the Treasury Department by using these tactics, and that the scammers intend to profit by selling their bogus products.

What the FBI and IRS say

The FBI's Law Enforcement Bulletin describes the "Redemption Theory" as a belief within the sovereign citizen movement. It says followers claim that the government uses citizens as collateral and that each person has a hidden net worth kept in a Treasury account tied to a "strawman." The FBI notes that people then file real IRS and commercial code forms for illegitimate purposes, hoping to force the Treasury to pay debts such as credit cards, taxes and mortgages. The FBI considers sovereign citizen extremists a domestic terrorist movement and says the scheme is used to defraud banks, credit institutions and the government.

The IRS has also addressed the strawman idea. In Revenue Ruling 2005-21 it describes the claim as premised on an erroneous theory that most government documents do not actually refer to individuals.

What a birth certificate really is

A birth certificate is a record of a birth filed with the state or local registrar. The U.S. Department of State accepts a U.S. birth certificate as primary evidence of citizenship for a passport when it shows the place of birth and the parents' full names, and carries the registrar's seal or stamp and signature. In everyday life, a certified copy is what you use to prove your identity, age and citizenship, for example when you enroll in school, apply for a passport or a driver's license, or claim benefits.

That is the whole job of the document. It does not create an account, a bond or a second legal person.

Warning signs of a birth certificate scam

1. It promises to erase your debt. TreasuryDirect says the story is pitched as a way to wipe out debts or collect money.
2. It sells coaching or webinars. The people who profit are the ones selling the course, according to the Treasury.
3. It tells you to file Treasury or IRS paperwork on your own. The FBI describes this as the core of the redemption scheme.
4. It claims you are not subject to taxes or laws. The FBI says followers believe announcing themselves as sovereign frees them from taxes and the law, which is not how the law works.
5. It asks you to mail your birth certificate. Never send an original certificate to anyone selling a debt solution. Order official certified copies only from the state, county or an ordering service you trust.

Where to get a certified copy

If you need your birth certificate for ordinary purposes, order a certified copy from the vital records office of the state where you were born. Our guides explain how, including how to order an Oregon birth certificate and the difference between long form and short form copies.