COEUR d'ALENE - Idaho Rep. Phil Hart, an Athol Republican, found it "upsetting" that Bernard von NotHaus' case involving Liberty Dollars was handled in a criminal court.

"This was a civil matter, not a criminal matter," Hart told The Press this week. "He did his due diligence to get started. He was very public about what he was doing."

What von NotHaus did was make and sell his own coins, and conspire against the U.S. government. An eight-day federal jury trial in U.S. District Court, in North Carolina, ended with less than two hours of jury deliberations and a guilty verdict against the founder and monetary architect of the Liberty Dollar medallions.

"I'm disappointed to see what's happened with Bernard here lately," Hart said. Hart said von NotHaus likely will appeal his conviction.

Hart believes von NotHaus was "above board" in his dealings with the federal authorities as he brought his Liberty Dollars to customers wanting a secure place to invest wealth.

Von NotHaus designed the Liberty Dollar in 1998, and was indicted in June 2009. Von NotHaus faces a sentence of up to 15 years in prison.

Hart said he became involved with the Liberty Dollar in 2001.

"I was an outlet for them, for North Idaho," Hart said. People came to him to obtain them or trade them back, he said.

He said most people acquired them as an investment, an alternative way to store wealth.

Sunshine Minting Inc., in Coeur d'Alene, manufactured the Liberty Dollar, which had features associated with the legitimate U.S. currency.

The U.S. Mint issued a press release in September 2006, warning people and businesses that the Liberty Dollar was "not legal tender."

The Liberty Dollars' "value wouldn't be eroded through inflation," compared with the U.S. dollar, Hart said. Gold and silver prices have been climbing, "and really, the sky is the limit from here."

He said his involvement with the Liberty Dollar was "pretty limited," as not many people were interested in the medallions. He ceased his involvement in 2007, he said.

"I had too much on my plate at the time," he said. "It was something I have a passion for, but it was too time consuming."

He couldn't recall how many hours per week he spent dealing with the Liberty Dollar and investors' inquiries. But he recalls plenty of lengthy conversations with those people who were interested in them.

Hart said that when von NotHaus was establishing the Liberty Dollar, he took time to consult with lawyers and accountants.

Before the launch, he notified the U.S. Department of the Treasury, the U.S. Mint, the U.S. Secret Service and the Federal Reserve.

"Nobody endorsed it, but they said they don't have a problem," Hart said.

From 1989 to 2009, Hart said von NotHaus promoted his Liberty Dollar at potentially 1,000 public meetings.

On a personal level, Hart said he hasn't spoken with von NotHaus in a year, and doesn't expect to anytime soon.

Hart wouldn't say whether he still had any of the Liberty Dollars.

"I don't know what the status of the Liberty Dollar is," Hart said.

Hart said he hasn't invested in gold and silver.

"I'm too busy being a legislator," he said.

In recent years, 10 or more state legislatures have entertained proposals to establish gold- or silver-backed means of exchanges, Hart said.

Hart introduced a bill during the 2010 Idaho Legislative session that would have paved the way for the creation of what would have been called the Idaho Gem Medallion, using silver from Idaho.

"We need something like this for our economy," Hart said.

He expects inflation to ramp up in coming years.

"We need the security of an alternate currency," Hart said.