Bernard von NotHaus began minting and distributing Liberty Dollars nearly 13 years ago, saying they were an inflation-proof alternative to the U.S. dollar.

Now von NotHaus faces a lengthy prison term after being convicted by a jury in a Statesville courtroom of making, possessing and selling his own coins, according to the U.S. Attorney's office in Charlotte.

"Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism," said Anne Tompkins, the U.S. Attorney for the Western District of North Carolina.

Von NotHaus, based in Evansville, Ind., was convicted March 18 after an eight-day trial. Sentencing has not been set, but von NotHaus faces up to 25 years in prison and a fine of up $750,000. The case was tried in North Carolina, prosecutors say, because one of the defendant's chief aides, William Kevin Innes, was based in Asheville.

According to the original indictment, Innes claims he convinced about 70 businesses in the Asheville area to accept the coins, despite a warning from the government that the Liberty Dollars had no legal value.

Innes also has been charged by the federal government, but his trial date has not been set.

According to testimony in the trial, von NotHaus began minting the Liberty Dollar in 1998, selling them as an alternative to the U.S. dollar. Prosecutors say the coins were marked with the $ sign, the word "dollar," and the words "USA," Liberty," and "Trust in God" (instead of "In God We Trust," which is on legitimate U.S. currency).

Prosecutors also testified that von NotHaus founded an organization called the National Organization for the Repeal of the Federal Reserve and Internal Revenue Code, commonly known as NORFED.

"NORFED intended for the Liberty Dollar to be used as current money, in order to limit reliance on, and to compete with, United States currency," said Lia Bantavani, a spokeswoman for the U.S. Attorney's office.

Prosecutors say NORFED began mixing Liberty Dollars in the currency

The U.S. Mint issued a news release Sept. 14, 2006, advising the public that the Liberty Dollar was "not legal tender" and saying the Justice Department had determined the use of Liberty Dollars as circulating money was a federal crime.

Von NotHaus' headquarters and a mint in Idaho where the coins were being produced was raided in 2007. He was arrested in June 2009 and entered a not-guilty plea a month later.

The next phase in the case begins next Monday, when the U.S. government will seek the forfeiture of about 16,000 pounds of Liberty Dollars, worth an estimated $7 million. That case also will be tried in Statesville, prosecutors say.