This is disgusting, what else can I say. I am sorry BurtW that this has happened to you and thanks God I don't live anymore in the US, the land of free, the land of opportunity(this I say with the highest degree of irony, of course).
I hope you will get back in your feet somehow. I surely hop you are not done with Bitcoin. I also wish that you fight those a**holes with the best attorneys possible, unfortunately I don't see how this will be possible when you are essentially going against the government.
Good luck!
Yeah, I feel for him too, that just really sucks. Some people who use bitcoins use them legally so, I do not see the problem with using bitcoins.