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(no date)
  Bhagwan Shree Rajneesh was imprisoned in 1987 in the USA for violation of immigration law, after he found out, that his Oregon-ranch management was infiltrated by CIA. In Jail they treated him medically against his will and gave him an injection of unknown substances. By this - he said - he was poisoned. He died within 2 years being 56 years old. So died another Keyed Out OT due to US-govermental suppression. Do you think they had done different to LRH?

Anonymous post to COSinvestigations

(no date)
  For those who may wonder why RTC went on with the GO's criminal activities I have information that may shed some light on this. I was at FOLO EU when the famous Guardian Office got disbanded. About half of the GO staff was offloaded and the other half got recruited for the Sea Org. Some of them were recruited for RTC EU. People like Jacqueline Kevenaar, Diethelm Alich or Mariano Pedersoli were GO execs and they were later on recruited for RTC EU. The former boss of GO EU was Mariano Pedersoli he became the RTC EU Cont Inspector! No wonder the same criminal activities went on. It was the very same people.

By the way, after a big flap in Italy in 1987 (12 Class IV orgs got closed down by government ) RTC EU also got disbanded. The boss was still this former GO boss when disbanding occurred. For Mariano Pedersoli it was a real bad habit to be the boss of a later on disbanded group.

Post to COSinvestigations in January 2001 by Denis Seignez

Falsehood - Miscavige - in an affidavit he says they removed all GO criminals

(no date)
  1987Jesse Prince says Miscavige has a lifestyle that far exceeds his $40,000 annual salary. One day DM showed Jesse his safe with stacked up gold and silver brick bars, rare coins and jewelry. He owns 4 new cars, and he and his wife have lavish wardrobes, such as DM having closets full of tailor made suits valued at $2,000 each. They have a $20,000 stereo system and all handmade furniture valued around $40,000. They take 4 expensive vacations per year, each one taking between 2 and 3 weeks. They have 15 to 20 servants. Jesse estimates DM's lifestyle is costing about $750,000 a year. Meantime, Sea Org members are being paid $30.00 a week.

Jesse says that DM has access and control over all Scientology reserves and he could blow and take it all with him.

Jesse Prince tape # 2


Jesse Prince says during the time that he was in RTC, from 1982 to 1987, that the Sherman Lenske law firm was paid 7 to 8 million and the Heller firm 4 to 5 million. All they were doing was giving advice to Miscavige. Later in time Jesse was asked about the theory that the attorneys control Miscavige and Miscavige controls Scientology. Jesse was asked if he saw anything that the real control exists with the attorneys and that they have enough on Miscavige to take Miscavige out.

Jesse said yes, but he thinks that their hands are so dirty and that blood drips from all of their hands that they protect each other. They all go down together and so they all survive together. He says he thinks the attorneys were being paid, not for their work, but because they have a piece of the pie.

Jesse Prince tape # 3

01 Jan
  Los Angeles Times January 1, 1987

Former members of the Church of Scientology filed a $1-billion class-action lawsuit against the organization Wednesday, accusing its late founder, L. Ron Hubbard, and a cadre of his most trusted aides of plundering church coffers, intimidating critics and breaching the confidentiality of sacred confessional folders.

The people who are suing have been damaged by the church practicing its immoral, unethical and abusive tactics against dissidents or people considered to be a threat or potential threat, said Maren, one of the plaintiffs in the suit.

Too many of us had been harassed, sued by the church, threatened by the church, she added. They sent their private investigators to our homes, our places of work, and we had to do something.


More Legal attacks brought on by practicing Fair Game.

01 Jan
  The San Diego Union-Tribune January 1, 1987

The suit describes a purported November 1981 struggle to control church assets in which Miscavige allegedly locked up church leader William Franks in a room for several weeks while Miscavige assumed control of all corporate bank accounts and other assets.

In April 1982, the suit alleges, Miscavige ordered the payment of $250,000 to set up' and frame United States District Judge Ben Krentzman (of Clearwater, Fla.) in a scheme to compromise him with drugs and prostitutes.

It similarly contends that thousands of dollars were ordered spent to pay off Florida State Circuit Judge James Durden, then presiding over a Scientology case.

In March 1983, the suit says, Miscavige and his attorneys ordered the payment of more than $1 million to set up and frame Boston attorney Michael Flynn, a longtime courtroom foe of Scientology.

14 Jan
  On January 14, 1987, representatives of CST, CSI and RTC met with IRS officials for a six-day conference to clarify the issues. In his affidavit for the plaintiff, William C. Walsh recites that he attended the conference of right, and participated in the preliminary arrangements. He recites that during the conference, IRS representatives discussed their belief that CST controlled or influenced other churches of Scientology.

He also states that CST's representative stated that there was an issue as to whether CST's activities would be considered exclusively on the basis of its own activities. IRS representatives responded that they believed CST's application was tied into the applications of CSI and RTC. CST contends that it advised the IRS at that meeting that it provides no religious services to Scientology parishioners; rather, it conducts activities to preserve and archive Scientology scriptures for posterity. It argued that it is not involved in commercialism. Following the meeting, the three parties proposed submitting additional information. The Commissioner agreed.

CHURCH OF SPIRITUAL TECHNOLOGY, Plaintiff, v. The UNITED STATES, Defendant. No. 581-88T. United States Claims Court. Oct. 2, 1989.

27 Jan

No. 86-472
Supreme Court of the United States
January 27, 1987
Case below, 253 U.S.App.D.C. 85, 792 F.2d 153.
Petition for writ of certiorari to the United States Court of Appeals for the
District of Columbia Circuit.

27 Jan
  The Associated Press January 27, 1987

Court Will Examine IRS duty to disclose confidential information

The Supreme Court, granting an appeal by the Church of Scientology, today agreed to examine the Internal Revenue Service's duty to disclose confidential information on request.

At issue is a law that bars the IRS from revealing tax return information that could violate the privacy of taxpayers. The law permits disclosure if the material is in a form that does not identify directly or indirectly a particular taxpayer.

Scientologists have had long-running tax battles with the IRS. The case acted on today stems from an FOIA request submitted by the church in 1980.

The Scientologists made a broad request for documents mentioning the church, its founder, L. Ron Hubbard, and his wife, Mary Sue Hubbard.

Some material was disclosed. But a federal judge dismissed the church's suit to force the IRS to provide thousands of pages of additional material.

The appeals court here then ruled that the IRS may disguise the origin of tax return information it reveals.

-- Feb
  Most important for the future of Scientology, the Aznarans claim that "in or about February of 1987, a schism arose between Defendant Miscavige and the Broekers, each of whom claimed to possess the upper level Holy Scriptures written by Hubbard."

Miscavige allegedly saw Vicki's demands for contact with her husband as an expression of allegiance to the Broekers. Miscavige ordered Vicki to the RPF at Happy Valley, a secret location bordering the Sobova Indian Reservation near Gilman . . . overseen and controlled by Defendant Norman Starkey.

Vicki was not allowed to go anywhere or do anything without her guard being present.
At night she was imprisoned by having heavy furniture moved to secure the exit ....

Vicki claimed she had seen in the past other victims of Happy Valley be beaten upon attempted escape, and their personal belongings destroyed .... Vicki and others were made to wear rags taken out of garbage cans, sleep on the ground, dig ditches.

A Piece of Blue Sky by Jon Atack

09 Feb
  UNITED STATES of America, Petitioner/Appellee/Cross-Appellant,
Frank S. ZOLIN, Respondent/Appellee,
Church of Scientology of California and Mary Sue Hubbard,
Nos. 85-6065, 85-6105.
United States Court of Appeals,
Ninth Circuit.
Argued and Submitted Nov. 6, 1986.
Decided Feb. 9, 1987.

In connection with tax investigation, United States brought action to compel state court clerk to produce sealed documents. Church and taxpayer's wife intervened. The United States District Court for the Central District of California, Harry L. Hupp, J., ordered production of some, but not all documents.

The Court of Appeals, Farris, Circuit Judge, held that:

(1) United States adequately established relevance of documents;
(2) taxpayer waived privilege as to communications when he voluntarily delivered them to third party
(3) crime-fraud exception to attorney-client privilege did not apply to recorded communications.

[19] WITNESSES Attorney-client privilege does not protect communications that further crime or fraud.

In July 1984, the Criminal Investigation Division of the IRS (Los Angeles District) began investigating L. Ron Hubbard's tax returns for the tax years 1979 through 1983. In October, the IRS served an administrative summons on the Clerk of the Los Angeles County Superior Court and requested that he produce certain documents relating to Hubbard's potential tax liability. (The Superior Court had obtained the documents in connection with an unrelated proceeding brought by the Church against a former member of the Church.) The Clerk willingly produced a number of documents, but refused to produce thirteen documents which had been ordered sealed by the Superior Court.

In January 1985, the Government initiated this action in an effort to compel the Clerk to produce the thirteen sealed documents. Shortly thereafter, the district court granted the motions to intervene which were brought by the Church and Mary Sue Hubbard.

On April 30, 1985, the district court ruled that eight of the documents--exhibits 4-D, 4-E, 4-F, 4-G, 5-C, 5-G, 5-I, and 6-B--were irrelevant, privileged, or both, and did not need to be produced. It ruled that five documents--exhibits 5-K, 5-L, 5-O, 5-P, and 6-O-- should be produced, but prohibited the IRS from disclosing them to another governmental agency except in connection with a criminal tax prosecution or with the court's approval.

The Intervenors filed timely notice of appeal on July 1, 1985. The Government filed timely notice of cross-appeal on July 15, 1985.

A. Mootness
On January 24, 1986, during the pendency of this appeal, L. Ron Hubbard died. The Intervenors argue that because Hubbard's death has foreclosed the possibility of any further investigation of Hubbard's potential criminal tax liability, this proceeding has become moot. We reject that argument for the reason stated in United States v. Author Services, 804 F.2d 1520, 1522 n. 1 (9th Cir.1986).

F. Exhibit 5-C (the Tapes)

[17] The district court found that the parties present at the meetings recorded on the
tapes had a common interest in sorting out the respective affairs of the Church and Mr. Hubbard. We agree. All of the non-lawyers present at the meeting were employees of the Church.

[18] The Government also challenges the district court's finding that the Church did not waive its attorney-client privilege when it inadvertently delivered the tapes to Armstrong. (Hubbard's personal secretary gave Armstrong the tapes under the mistaken impression that they were blank.) The secretary's delivery of the tapes to Armstrong was sufficiently involuntary and inadvertent as to be inconsistent with a theory of waiver.

[19][20] The Government challenges the district court's ruling that the crime-fraud exception to the attorney-client privilege did not apply to the tapes. The attorney-client privilege does not protect communications that further a crime or fraud. The Government had the burden of making a prima facie showing that the attorney-client communications recorded on the tapes were in furtherance of an intended or present illegality. Id. We agree with the district court's conclusion that the Government failed to satisfy this burden.

The Intervenors argue that the Government's evidence of crime or fraud must come from sources independent of the attorney-client communications recorded on the tapes.

In this case, the communications recorded on the tapes appear to be the Government's best evidence establishing the applicability of the "crime-fraud" exception. This is not surprising, since the illegal advice allegedly given by Church attorneys to Church officials is an integral part of the intended illegality that the Government seeks to establish.

The Government's independent evidence of intended illegality consists primarily of:

1) Agent Petersell's Supplemental Declaration of March 8, 1985, in which Petersell stated that his discussions with Gerald Armstrong had given him reason to believe that the communications recorded on the tapes focused generally on the intentional violation of the tax laws

2) Petersell's Supplemental Declaration of March 15, 1985, in which Petersell stated that his discussions with three other former Church employees had given him reason to believe that the communications recorded on the tapes specifically focused on

i) a proposed scheme whereby the Church's cash transfers to Hubbard would be disguised as payments for services rendered (allegedly to insulate Hubbard from tax liability and to protect the Church's tax-exempt status)

ii) a proposed scheme whereby Hubbard would be able to control royalty income derived from the Trademark Trust (a trust that was created to manage Hubbard's various Scientology-related and other trademarks) without that control being traceable to him.

We agree with the district court that this evidence, while not altogether insubstantial, is not sufficient to make out the requisite prima facie showing of intended illegality.


The above appeal is an effort by the government to get the "Zolin tapes". These tapes come from the Mission Corporate Category Sort-Out (MCCS) meetings wherein the communications between church attorneys and church execs show a conspiracy to defraud the IRS. (See 28 September 1980)

10 Feb
  U.P.I. February 10, 1987

A federal appeals court ruled Monday that several Church of Scientology documents now in court custody in Los Angeles may be withheld from Internal Revenue Service officials conducting an investigation of the church.

The documents, concerning the church and its late founder L. Ron Hubbard, have been in the custody of the Clerk of the Los Angeles County Superior Court because of a 1982 case in which the church claimed the documents were stolen by former church archivist, Gerald Armstrong.

The church settled the case with Armstrong last December, but the documents have remained in the court's custody pending a decision about their relevancy to the IRS investigation.

A panel of three judges for the Ninth U.S. Court of Appeal affirmed a lower court ruling that eight of thirteen documents sought by the IRS were irrelevant, privileged, or both, and did not need to be produced.

The other five documents have to be produced for the IRS, but cannot be revealed to other governmental agencies unless in connection with a criminal tax prosecution or with the court's approval, Judge Jerome Farris said in the opinion.

The IRS has asked to examine the documents in connection with an investigation of Hubbard's potential tax liability. The Criminal Investigation Division of the IRS began in 1984 an investigation of Hubbard's tax returns for 1979 through 1983.

The Los Angeles court clerk agreed to release a number of documents to IRS investigators in 1984, but would not release thirteen documents which had been ordered sealed by he Superior Court.

In January 1985, the government appealed in federal court to have the 13 remaining documents released.

11 Feb
  U.P.I. February 11, 1987

Convicted extortionist sentenced to 6 years in jail

George Kattar, convicted last December of trying to extort $100,000 from the Church of Scientology, was sentenced in U.S. District Court Wednesday to six years in prison and a $10,000 fine, court officials said.

Kattar, 57, of Methuen, was also ordered by Judge John McNaught to make restitution of $33,333 to the group. He successfully collected $30,000 of a promised $100,000 reward from the church for giving them false information about an attempt to pass a forged $1.5 million check.

Kattar was arrested while trying to collect the remaining $67,000, officials said.
The trial revolved around a $100,000 reward the church offered for information about an attempt to pass a $1.5 million forged check drawn on the account of church founder L. Ron Hubbard at the Bank of New England.

A former church official, Geoffrey Shervell, testified that Kattar threatened him in an attempt to collect the rest of the reward, telling him your days are numbered, and boasting of his alleged connections to the Boston Mafia.

Lawyers for Kattar and Brower conceded that their clients provided church officials with false information implicating Boston lawyer Michael Flynn in the forgery attempt, but claimed no fraud was committed against the church.

According to testimony, church officials were trying to obtain derogatory information against Flynn in an effort to discredit him.

20 Feb
  The Associated Press February 20, 1987

Delay Granted to Hubbard Estate in Producing Documents Detailing Wealth

A judge has granted a two-month delay to the estate of the late Scientology founder L. Ron Hubbard in filing documents detailing his wealth.

Hubbard, also known for his science-fiction writings, died 13 months ago on his Creston ranch of natural causes. His will was filed last February, setting up a trust fund for his wife and four of his five children. The will cut one child off and left most of his money to the Church of Spiritual Technology in Los Angeles.

An inventory of Hubbard's personal property not listed in the will had been scheduled to be filed Wednesday in San Luis Obispo County, but Superior Court Judge Warren C. Conklin granted the delay. A similar delay had been granted in December.

Hubbard executor Norman F. Starkey filed documents saying his staff has prepared an 817-page document listing 20,000 separate copyrights, patents, and trademarks owned by Hubbard and needed extra time to gather information to answer questions from an inheritance tax referee.

23 Feb
  The Associated Press February 23, 1987

Supreme Court Rejects Scientolgy Appeal

The Church of Scientology lost a Supreme Court bid today to prevent a splinter group from using allegedly stolen church materials in the spiritual development of the group's followers.

The court, without comment, left intact a ruling that the materials are not a trade secret of the California-based church.

The Scientologists in 1985 filed a federal lawsuit against the Church of the New Civilization, also based in California.

The suit said the new church is using copies of scriptural materials stolen from the Scientologists' offices in Copenhagen, Denmark, in 1983.

The Scientolgists contend federal courts have authority under California trade secrets law and under the federal Racketeer Influenced and Corrupt Organization Act, an anti- organized crime law, to enjoin use of the materials by the new church.

A federal judge agreed with the Scientologists and issued an injunction. But the 9th U.S. Circuit Court of Appeals overruled the judge.

The appeals court said the federal law authorizes government officials, but not private citizens, to seek such federal court injunctions.

The appeals court also rejected the Scientologists' claim that the church's spiritual training materials are trade secrets that can be protected by California law.

The Scientologists alleged no competitive market advantage from maintaining the secrecy of its higher level materials, the appeals court said. Indeed, to do so would raise grave doubts about its claim as a religion and not-for-profit corporation.

Rather, the church alleges that its precepts require adherents to be audited in a structured manner with exposure to higher level materals only when the auditor considers the adherent ready, the appeals court said. The injury inflicted on the church by the new church's misappropriation of its 'secret' is the 'religious harm' that would be suffered by church (of Scientology) adherents from premature unsupervised exposure to the materials. Therefore, the 9th Circuit court said, the value of the materials is spiritual not commercial and lack the economic worth of the normal trade secret.

The Church of the New Civilization is headed by David Mayo, formerly a disciple of L. Ron Hubbard, founder of the Church of Scientology. Mayo left the Scientologists in 1983 in a bitter dispute with other senior church officials.

Mayo said the new church's teachings are based on Scientology materials he reconstructed from memory, not stolen materials.

The case is Religious Technology Center vs. Wollersheim, 86-1123.

24 Feb
  Los Angeles Times February 24, 1987

The U.S. Supreme Court ruled that Church of Scientology scriptural documents are not a trade secret and can be used in a splinter church's activities. The ruling means that the church cannot legally prevent the Church of the New Civilization from utilizing materials allegedly taken from Scientology's Denmark offices.

-- Mar
  Pat Broeker sends a mission to remove David Miscavige from post. Missionaires are Vicki Aznaran, Jesse Prince and Spike Bush. They go to Gilman Hot Springs to remove DM from post and take over command of Scientology. The mission failed and that results in LRH's closest aide, Pat Broeker, being removed. The power was taken over by Miscavige who purged the Sea Org of anyone friendly to Broeker.

Jesse Prince is removed from RTC and put under armed guard at Happy Valley, a few miles West of Gold. After a few months he was put to work at Gold under watch, until he escapes in 1992. Miscavige removes Vicki Aznaran from the post of Commanding Officer of RTC. He appoints himself Chairman of the Board of RTC. Thus, he moves the seat of power from ASI to RTC because it was more defensible to run Scientology from a non-profit corporation.

In an affidavit dated 24 Sept 1999, Miscavige gives his cover story for why he removed Vicki Aznaran, Jesse Prince and Pat Broeker:

"Their duties, of course, were to see to the purity of the religion.

....I soon learned this individual (Broeker) was pretending to have special data concerning Scientology and had begun a project to change the Scientology Grade Chart. This chart is central to the practice of the religion. As such, it is sacrosanct.

This, of course, was entirely contrary to the authority vested in RTC. Alteration of Scripture is what RTC is charged with preventing. The manner in which this person (Broeker) attempted to gain a position of Source was by claiming to know things Mr. Hubbard wished to be done, that Mr. Hubbard had never articulated or written down. Mr. Hubbard wrote a policy letter called Hidden Data Line, outlawing this practice in the Scientology religion."

Stacy Young affidavit
David Miscavige affidavit 15 Oct 1999


In 1999 Miscavige makes a change in the Grade Chart. He orders the Happiness Rundown put on the Grade Chart, instead of off to the side where LRH had it. Also, as COB RTC, he has allowed over a 1000 LRH issues (Scripture) to be altered.

Also, RTC hands out verbal data that they have followed LRH handwritten originals.
But they deny any requests from the public or common staff to see the handwritten originals. This violates the HCOPL Hidden Data Line.

RTC/Miscavige have altered the Grade Chart and Scripture, & violate Hidden Data Line.

Therefore, these were not the real reasons he removed Aznaran, Prince and Broeker.
The real reason he removed Aznaran, Prince, and Broeker was politics.

Vicki is ordered to the RPF Running Program at Gilman Hot Springs. This involved running around an orange telephone pole from 7:00 AM to 9:30PM with 1/2 hour breaks for lunch and dinner. She was kept there by armed guard, but finally escaped down a riverbed.

Vaughn Young did not know that Pat was planning to oust Miscavige. But, Miscavige thinks that Vaughn was one of Pat's infiltrators in ASI. They went after Vaughn for weeks and broke him. Then they did it several more times over the next year and a half.

Stacy Young affidavit


Mike McClaughry asked Stacy Brooks what does "broken" mean? She said:

They took him into a gang bang sec check and for 3 weeks a group yelled at him and would not allow him to eat or sleep. When that was over, he was not the same person. Stacy said it was like Vaughn, the being, was gone.

She also elaborated on how DM was able to handle Broeker. When Broeker sent the mission to remove DM from post and put him in the RPF, DM gathered up the attorneys. They pointed out to Broeker that Pat had signed for all the money that was being delivered to LRH at Creston. They told Pat that he did not pay taxes on all of that money and that if he did not cooperate and go away quietly, they would put him in jail. Broeker left quietly.

I think it's interesting they used IRS tax laws to extort him into resigning and leaving. Broeker was the designated head of Scn., there is nothing in writing that appoints DM. The interesting thing is DM & Lenske using tax laws. We already know he is connected to Meade Emory, former assistant IRS commissioner, co-founder of CST, etc

Important Note:

From a private E-Mail to Mike McClaughry -

The story going around regarding Pat Broeker was that DM got him out of his office to do something and then raided it and stole all the stuff he was working on. OT 8-9-10-11 were supposed to be re-written old OT 4-5-6-7.


Pay attention everybody! Did you see what that just said?

He was working on OT 8-9-10-11. He means Broeker, not LRH.

Remember earlier we said that LRH left nothing to the Enslavers who took over:

1. He allowed his copyrights to fail into the public domain.
2. He left them no Upper Bridge.

Remember how Mithoff tried to piece together an OT 8 that could be delivered - from a bunch of scraps of paper containing notes? And, he tried 3 different versions of OT 8 - and all versions were a flop?

Then they tried to cover this up with a shore story about how it was the fault of the OT 7s and how they all had to re-do OT 7. Bullshit. The real reason for putting OT 7s back on OT 7 was they don't have an Upper Bridge to deliver and they can keep making money off of the OT 7 completions by putting them back on OT 7 - rather than having them standing idly by while waiting for the Non-Existent Upper Bridge to be released.

It's a DEAD END folks. That's why they keep everybody overrunning OT 7 and won't release OT 9, etc. OT 7 and their off-source 6-month sec checks is their big cash cow.
When they lose that - when that dries up - it's all over. They're done.

That's one of the reasons for the high prices - to maximize profits while they can - because they know their days are numbered.

They're dragging their feet on releasing the Upper Bridge because when people complete those levels and then find out they did not get the promised goods - their whole house of cards will come crashing down. That will be the end.

So, by not releasing the Upper Bridge - they are continuing the ILLUSION as long as they can - in order to milk as much money as they can out of their scam - before people wake up and smell the coffee.

In order to keep the ILLUSION going as long as possible they issue suppressive arbitraries such as EVERY Scientologist has to be OT VIII completion and ALL orgs have to St Hill size before releasing OT 9. That will NEVER happen - which means they never will release OT 9. The real reason for not releasing OT 9 is - they can't - because they don't have an OT 9 to release.

Added Inapplicable suppressive arbitraries which act as stops on making OTs -
ADDED TIME to releasing the Upper Bridge -
Omitted PURPOSE of making OTs -
False purpose (evil purpose) of preventing anyone from going OT -


-- Mar
  Richard and Vicki Aznaran leave the SO and return to their home in Dallas, Texas.
DM says this is when he became COB RTC. He leaves the post of ASI and takes over RTC.

Vicki Aznaran affidavit

United States District Court for the Central District of California
Church of Scientology International vs Steven Fishman Case No. CV 91-6426 HLH (Tx)
David Miscavige affidavit 17 Feb 1994

-- Mar
  Post to COSinvestigations :

There are lots of good tech offshoots and methods derived from Scn. I personally favor Harry Palmer's Avatar Course (or its offshoots) because it blows off massive BPC and stuck ideas in a hurry, doesn't require auditing, and doesn't try to install any religion, philosophy, ritual, ethics or dependency on anyone. I don't have any vested interest in Avatar except from having done it right at the beginning and seeing how well it worked.

I went to Mayo and Gerbode's conference in 3/87 and told Mark Jones, Virginia Downsbrough, Frankie Freedman and a couple of others about Avatar. They came to Elmira and quickly began delivering it in the West coast. In 1987 Avatar gobbled up most of the US independents and from then on there were few independents who gave any credence to LRH's OT levels.

I mention it because it is something to know about. I saw quite a few ex-scns get the biggest wins of their lives as all the stuck beliefs pertaining to LRH as "source" blew off.

All the best, Ed Hamerstrom


Well - there's a piece of 1.1 Enslaver technology - BAIT with a HIDDEN HOOK.

What were we saying about Theta Traps in the "freezone" earlier?

You fall for this one YOU LOSE - the ENSLAVERS WIN.

And, how many of these folks lost sight of their purpose to become a free being?

This has the same purpose as DM and RTC -

To stop people from auditing so as to prevent beings from going free.

The price of freedom is - constant alertness and willingness to fight back.

It's not an option. You don't pay the price - you don't get the goodies.

There's nothing wrong with sorting the wheat from the chaff. You approach Avatar the same as you do Scientology or anything else - it's like eating an ear of corn - there's a part you swallow and a part you don't.

But - if you do Avatar and throw the baby out with the bathwater - YOU LOSE.

You've just been had by an Enslaver Theta Trap.

Get in line early to get your electronic mind-control device implanted in your brain.

The line for such when the One-World Government starts - is gonna be a LONG line.

-- Mar
  From the beginning of 1982 until March of 1987, I was Chief Executive Officer and later Chairman of the Board of Author Services, Inc. (ASI), a California corporation which managed the personal, business, and literary affairs of L. Ron Hubbard. ...Since March of 1987, I have been Chairman of the Board of Religious Technology Center (RTC).

David Miscavige's Declaration of February 1994

-- Mar
  Miscavige became head of RTC in March of 1987, at this point he moved Marc Yaeger and Ray Mithoff from their positions in CSI into RTC. He also moved Mark Rathbun, LRH Legal IC or Special Project L, and Greg Wilhere from their positions in ASI into RTC.

United States District Court Central District Of California, No. Cv 91-6426 Hlh (tx); Church Scientology International, Plaintiff, Vs. Steven Fishman And Uwe Geertz Declaration Vicki Aznaran

10 Mar
  Letter from Ronald E. Saranow, Chief, Criminal Investigation Division of IRS Los Angeles: "...The Los Angeles not currently conducting, nor does it have under consideration, criminal investigations of entities, officers, attorneys of, or individuals who hold ecclesiastical positions with any Church of Scientology organization. Further, I am not personally aware of any other such criminal investigations elsewhere.... Unfortunately, since Powers of Attorney have been filed only for Author Services, The Church of Scientology of California, Mary Sue Hubbard and the Estate of L. Ron Hubbard, I can only include these individuals and entities by name, as you had requested.

Booklet, Fact vs Fiction;
A Correction of Falsehoods Contained in the May 6, 1991 Issue of Time Magazine
published by the Church of Scientology International, page 61


More subtle lies from church PR.

Very slippy wording "not currently conducting" in March 1987. Fails to mention the past criminal investigation started in 1984 by this very IRS office. There is no doubt it existed because the Judges for United States Court of Appeals used that fact in rendering their decision in the case of United States of America vs Church of Scientology on 9 Feb 1987.

09 Apr
  Finally, on about April 9, 1987, Vicki and two other victims escaped from Happy Valley onto the Sobova Indian Reservation where they were pursued on motorcycles by guards. They were rescued by the Indians. Richard Aznaran meanwhile was urged to divorce his wife. Instead, that very month they left the Sea Org, though not the Church, and returned to Dallas, Texas, where they started a private investigation business.

A Piece of Blue Sky by Jon Atack


What kind of a "church" is this - where people have to escape from it in the middle of the night - and then have to use false names for themselves on the internet for fear of being attacked by their own "church" - just for communicating about it?

16 Apr
  Los Angeles Times April 16, 1987


L. Ron Hubbard, the Scientology founder and author who died last year, left more than $26 million in assets, excluding trust funds, according to documents filed by the executor of his estate.

Total assets listed in the inventory amount to $26,305,706. They include $25 million even in copyright and trademark materials and $1,305,706 in oil, gas and business investments, said attorney Charles Ogle of Morro Bay.

The estate documents were prepared in Los Angeles by Norman F. Starkey, the executor of Hubbard's estate. Ogle handled the filing of those documents with the San Luis Obispo county clerk's office Friday.

Hubbard suffered a stroke and died Jan. 24, 1986, on his ranch in Creston. His will, filed in Superior Court the following February, did not detail his wealth. Hubbard signed the will the day before his death.

The listed assets do not include money Hubbard put into trust funds for his wife, four of his five children and the Church of Spiritual Technology. The amount in the trust funds is private, Ogle said.

A statement issued by Starkey's office Friday said: "As per Mr. Hubbard's instructions, ownership of all his copyrighted works will pass to the Church of Scientology."


What happened to the alledged 100 plus million siphoned off to LRH over the last few years before his death? Oh - I forgot - that's private.

Interpretation of private = somebody has a withhold about the missing money

06 Jul
  U.P.I. July 6, 1987

Attorneys for an arm of the Church of Scientology argued Monday that a former member should be barred from suing the church for libel and from seeking damages from the estate of the late Scientology founder L. Ron Hubbard.

The arguments came in a pretrial hearing in a legal dispute between the Church of Scientology's Religious Technology Center and several former members who, it claims, used religious materials stolen from a Scientology outpost in Denmark to teach similar -- and cheaper - religious courses at a splinter church in Santa Barbara.

The Religious Technology Center claimed David Mayo, founder of the Advanced Ability Center in Santa Barbara, violated the California trade secrets law by using the stolen documents and won a court order barring their further use pending trial.

But a federal appeals court dissolved the order last August, holding religious scriptures are not trade secrets. The case has not yet been set for trial.

Lawyers for the Religious Technology Center asked U.S. District Judge Mariana Pfaelzer to dismiss Mayo's counterclaims for libel and emotional distress, saying he had not proved that he was defamed by several statements published by the church.

Mayo's lawyers said they intended to file a suit against the estate for alleged improper assertion of a copyright claim to the religious materials. Mayo claims he helped Hubbard develop some of the church's central religious scriptures. He claims he was defamed by several published statements by members of the church, alleging that Hubbard was the only source of Scientology theory, that Mayo's Santa Barbara courses made one follower violently ill and that he had an extramarital affair.


More Legal attacks from practicing the Fair Game Law.

Their Fair Game practices against Mayo will end up costing them 2.9 million.

28 Jul

No. 85-7324. United States Court of Appeals Ninth Circuit
Argued and Submitted Aug. 8, 1986.
Decided July 28, 1987.

On appeal from revocation of church's tax exempt status by Internal Revenue Service, the Tax Court, 83 T.C. 381, affirmed commissioner's assessment of tax deficiencies and late filing penalties and church appealed. The Court of Appeals, Tang, Circuit Judge, held that:

(1) significant sums of church money inured to benefit of church's founder and his family thus constituting inurement to private individual, and thus, church was not entitled to tax
exempt status


In order for organization to pass operational test in order to obtain tax exempt status? organization's net earnings may not inure to benefit of private shareholders or individuals...


For purposes of determining whether church's net income inured to benefit of church's founder and family, combined salaries of $20,249, $49,648 and $115,680 in three different tax years were not excessive.


Financing church operation through sale of religious literature does not necessarily violate requirements for tax exemption; furthermore, church may pay author reasonable compensation in form of royalties for literary works.


Royalty payments made by church to its founder on sales of books, recordings and electronic devices, were excessive, and thus supported determination that church's net income inured to benefit of individual, where founder used church to generate copyrighted literature and market his products, church policy mandated that any book on subject be copyrighted in name of founder, and number of publications copyrighted by founder were actually written by church employees.


Church's founder's control over large amount of church's assets compelled finding that church's proceeds inured to benefit of private individual, though some evidence was presented that funds were not missing, where fact that funds were present was not inconsistent with finding that founder had unfettered control over millions of dollars in money which originated with church.


"Debt repayments" to church's founder by church, which were based upon percentage of church's total receipts inured to personal benefit of founder and thus, church's claim to tax exempt status was defeated.


Standard applied by Court of Appeals in reviewing cases of alleged discriminatory prosecution is that others are not generally prosecuted for same conduct and that decision to prosecute this defendant was based upon impermissible grounds such as race, religion or exercise of constitutional rights.

The Church of Scientology (Church) appeals a judgment of the Tax Court which
affirmed the Commissioner's assessment of tax deficiencies and late filing penalties against the Church for the years 1970, 1971 and 1972. At issue is whether the Commissioner properly revoked the Church's tax exempt status.


The Church was incorporated as a nonprofit corporation in the State of California in 1954. In 1957, the Commissioner recognized it as a tax exempt organization under s 501(c)(3) of the Internal Revenue Code of 1954.

The Commissioner revoked the Church's tax exempt status in 1967. The letter of revocation stated that the Church was engaged in a business for profit, and was operated in a manner whereby a portion of its earnings inured to the benefit of a private individual, and was serving a private, rather than a public interest. The letter instructed the Church to file federal income tax returns.

The IRS subsequently published a notice of revocation in the Internal Revenue Service bulletin, and removed the Church from the Service's official roster of organizations eligible to receive tax deductible charitable donations. The Church did not file income tax returns for the years 1970 through 1972, instead, it submitted Form 990, information returns.

On December 28, 1977, after auditing the Church's records, the IRS sent a Notice of Deficiency for the years 1970, 1971, and 1972. The IRS calculated the deficiency to be $1,150,458.87 and imposed an additional $287,614.71 in late filing penalties.

On March 28, 1978, the Church filed suit in United States Tax Court challenging the Commissioner's determination of tax deficiency. In an extensive opinion, the Tax Court substantially upheld the determination of the Commissioner.

It held that the Church did not qualify for exemption from taxation under ss 501(a) & 501(c)(3) because:

(1) the Church was operated for a substantial commercial purpose

(2) its earnings inured to the benefit of L. Ron Hubbard, his family, and OTC, a private non-charitable corporation controlled by key Scientology officials

(3) it violated well defined standards of public policy by conspiring to prevent the IRS from assessing and collecting taxes owed by the Church. The Court also upheld the validity of the Notice of Deficiency.

Finally, the Court upheld the penalties for failure to file tax returns.


During the years in question, the Church of Scientology of California was the Mother
Church of the many Scientology churches around the country.

Flag was the highest division of the California Church. It provided spiritual leadership. It also acted as the Church's administrative center. The Flag division was headquartered aboard the ship Apollo, which cruised the Mediterranean Sea and docked in various countries along its shores. L. Ron Hubbard, his wife, Mary Sue, and their family lived aboard the Apollo with other members of the ship's crew and staff.

Besides performing the highest levels of auditing and training, Flag staff members performed a variety of management functions. The Church derived income from four sources:

(1) auditing and training
(2) sales of Scientology literature, recordings and E-meters
(3) franchise operations
(4) management services. Franchise operators were required to remit ten percent of gross income to the Church. The Church offered its managerial services to branch organizations around the world for a fixed fee.

L. Ron Hubbard officially resigned his position as executive head of the California and other Scientology churches in 1966. Despite his official resignation, the Tax Court found that he continued to exert significant control over the Church by making policy statements, directives, and orders. In addition, his approval was required for all financial planning. He was the sole trustee of a major Scientology trust fund into which the Church made substantial payments. He or Mary Sue Hubbard were signatories on many Church bank accounts.

During the tax years at issue, L. Ron Hubbard and Mary Sue Hubbard received salaries from the California Church and its affiliate, the United Kingdom Church, in the following amounts:

                           1970      1971       1972

California Church
L. Ron Hubbard $4,932 $9,368 $35,000
Mary Sue Hubbard $3,017 $2,430 $25,000

United Kingdom Church
L. Ron & Mary Sue
Hubbard Combined $12,300 $37,850 $55,680
TOTAL $20,249 $49,648 $115,680

During these years, L. Ron Hubbard, Mary Sue Hubbard and their four children resided for the most part aboard the Apollo. While aboard ship, the Church provided the Hubbards with free lodging, food, laundry, medical services and vitamins.

The Church made royalty payments to L. Ron Hubbard for sales of his books, tapes and E- meters. The royalties amounted to ten percent of the retail price. The Church, for example, made $104,618.27 in royalty payments to Hubbard in 1972.

Additionally, Church policy required that all work pertaining to Scientology and Dianetics be copyrighted to L. Ron Hubbard. As the result of this policy, a number of publications copyrighted by L. Ron Hubbard were actually written by others. For example, Ruth Mitchell wrote the book Know Your People and Peter Gillum wrote the book How to be Successful.

Additionally, a series of books called the OEC series contained policy letters, some written by L. Ron Hubbard and others written by paid employees of the Church. L. Ron Hubbard received royalty payments on the sale of all of these publications.

During the 1960's, Scientology organizations around the world were required to pay directly to L. Ron Hubbard, ten percent of their income. These payments were termed "debt repayments" because they were designed to compensate Hubbard for his work in originating the Scientology religion. The Tax Court concluded that during 1971-1972 the Church continued to make debt repayments to Hubbard.

In 1968, L. Ron Hubbard, Mary Sue Hubbard, and Leon Steinberg incorporated a

Panamanian corporation called Operation Transport Corp., Ltd. (OTC). OTC was a for-
profit corporation. Shortly after the corporation's formation, Hubbard, Mary Sue Hubbard and Steinberg resigned and were replaced by three Flag employees. During the years in question, the new directors performed only one function. In the summer of 1972, they approved L. Ron Hubbard's decision to transfer approximately two million dollars from an OTC bank account in Switzerland to the Apollo. The money was stored in a locked file cabinet to which Mary Sue Hubbard had the only set of keys.

Between 1971 and 1972, the Church made payments in excess of three and a half million dollars to OTC. During these years, the Church also made payments totaling nearly $175,000 to the Central Defense and Dissemination Fund. According to the Church, these payments were placed in the United States Church of Scientology Trust of which L. Ron Hubbard was the sole trustee. The trust funds were deposited in several Swiss bank accounts. L. Ron Hubbard and Mary Sue Hubbard were signatories of the accounts and L. Ron Hubbard kept the trust checkbooks.


We conclude that the Church failed to establish that "no part of the net earnings ... inures to the benefit of any private shareholder or individual"

B. Inurement

The sole beneficiary of the church's activities must be the public at large.

Unaccounted for diversions of a charitable organization's resources by one who has complete and unfettered control can constitute inurement.


The finding of the Tax Court that a portion of the Church's net earnings inured to the benefit of L. Ron Hubbard, his family, and OTC, a private for- profit corporation, is a factual finding.

In finding that a portion of the Church's net earnings inured to the benefit of L. Ron Hubbard, his family and OTC, the court isolated two indicia of inurement, overt and covert. The overt indicia included salaries, living expenses, and royalties. The covert indicia included "debt repayments"?


Axiom 38 - Truth is the exact time, place, form and event.

Why was the membership not informed about the above tax court decision?

This is the main way that Church PR lies. By omitting to tell us things like this.

The Data Series says Omitted Data is one of the outpoints that causes wrong conclusions. Thus, the reason for Church PR not informing the membership of things like this is exposed - to make us reach the wrong conclusion that all is well - when the truth is - all is not well.

29 Jul
  Los Angeles Times July 29, 1987


A federal appellate court Tuesday upheld the revocation of the tax-exempt status of the Church of Scientology of California, saying the church used a sham corporation and other methods to funnel money to founder L. Ron Hubbard.

The U.S. 9th Circuit Court of Appeals also upheld more than $1.4 million in federal taxes and penalties levied against the Los Angeles-based church for the years 1970 through 1972.

The court said the Internal Revenue Service and the U.S. Tax Court had properly revoked the church's tax-exempt status on the grounds that a portion of its earnings inured to the benefit of a private individual, Hubbard and his family.

The court said the salaries paid to Hubbard and his wife, Mary Sue, totaling $185,000 in 1970-72, were not excessive and did not disqualify the church from tax-exempt status. But other types of payments cross the line between reasonable and excessive, the court said:

* The church required all books on Scientology and Dianetics, a related subject, to be copyrighted in Hubbard's name, even if someone else wrote them.

* A sham corporation, Overseas Transport Corp., funneled millions of dollars of church assets to L. Ron Hubbard.

* The church required its organizations around the world to pay Hubbard 10% of their income as a debt repayment for his work in founding Scientology.

* Hubbard was sole trustee of a church trust fund to which church assets were transferred. In 1972, more than $1 million was withdrawn from the trust, taken aboard a yacht on which Hubbard and his family lived while cruising the Mediterranean and kept in a file cabinet to which Mary Sue Hubbard had the only keys.

17 Sep
  Norman Starkey, as Trustee of Author's Family Trust-B, enters into a License Agreement with RTC, wherein LRH's estate allows RTC use of the Advanced Technology.

...Reference is made to the following described agreements between NORMAN F. STARKEY, as Executor of the Will of L. Ron Hubbard or as Trustee of Author's Family Trust, and RELIGIOUS TECHNOLOGY CENTER, a California nonprofit religious corporation (Agreements):
Title Date

(a) License Agreement September 17, 1987

Assignment and Assumption agreement between Norman Starkey and CST, as posted on
the internet

10 Nov
  The Associated Press November 10, 1987

Court Makes it Easier for IRS to Withhold Some Material

A unanimous Supreme Court today made it easier for the Internal Revenue Service to withhold material sought by individuals or organizations under the Freedom of Information Act, a law aimed at curtailing government secrecy.

The court ruled 6-0 that the IRS legally may refuse to disclose certain records even if the tax agency could delete anything linking those records to individual taxpayers.

Led by Chief Justice William H. Rehnquist, the court said the Freedom of Information Act does not require the IRS to make such deletions so certain documents can be released on request.

Scientologists in 1980 had filed an FOIA request for all IRS documents mentioning the church, founder L. Ron Hubbard and his wife, Mary Sue Hubbard.

10 Dec
  PR Newswire December 10, 1987

The California Superior Court in Los Angeles has granted two motions to dismiss a $1.5 billion suit filed by a small group of disgruntled former members of the Church of Scientology. For the fourth time, Dowds has dismissed the entire complaint, citing serious factual inadequacies in the suit that F.A.I.R. and its attorney, Lawrence Levy, have been unable to correct.

Further, he pointed out that in four attempts, the plaintiffs have not alleged the fraud with the specificity which the law requires.

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