Affidavit of Monique E. Yingling (July 16, 2002)

IN THE CIRCUIT COURT FOR THE SIXTH JUDICIAL CIRCUIT
IN AND FOR PINELLAS COUNTY, STATE OF FLORIDA
GENERAL CIVIL DIVISION1;2

ESTATE OF LISA MCPHERSON, by
and through the Personal Representative,
DELL LIEBREICH,
Plaintiff,
vs.
CHURCH OF SCIENTOLOGY FLAG
SERVICE ORGANIZATION, JANIS
JOHNSON, ALAIN KARTUZINSKI
and DAVID HOUGHTON, D.D.S.,
Defendants.

AND RELATED COUNTERCLAIM.

Case No. 00-5682-CI-11
Division 11

AFFIDAVIT OF MONIQUE E. YINGLING

Monique Yingling, being first duly sworn, deposes and says:

1. I am an attorney licensed to practice in the District of Columbia and the State of California. I have represented and continue to represent Church of Scientology International (“CSI”) and other Scientology Churches and Church of Scientology organizations on corporate and tax matters. I have personal knowledge of the facts set forth herein and, if called as a witness, I could and would testify competently thereto.

2. I was first engaged to represent CSI and other Churches of Scientology in early 1986 in connection with applications for recognition of their tax-exempt status then

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pending with the National Office of the Internal Revenue Service (“IRS”), and with related administrative and judicial proceedings. In particular, I represented those Churches of Scientology during a series of administrative proceedings with the IRS that resulted in the formal recognition of their separate tax-exempt status in 1993.

3. Attached hereto as Exhibits A and B are authentic copies of June 29, 1992 memoranda my office provided to the IRS as part of these administrative proceedings on behalf of these Churches of Scientology.

[signed]
Monique E. Yingling

STATE OF FLORIDA )
COUNTY OF PINELLAS )

The foregoing instrument was sworn to and subscribed before me this 16 day of July, 2002, by Monique E. Yingling who is personally known to me or has produced and who did take an oath.

GLEN E. STIL0
Notary Public – State of Florida
My Commission Expires Oct 10, 2003
Commission # CC878443

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Question 3(d)

3(d). Did the Guardian’s Office exist on December 31, 1989, or any date since then? During that period, has there been a Guardian? If the answer is yes to either or both of these questions, please list the name(s) of the Guardian(s) and describe the role of the Guardian and the Guardian’s Office. If no, is there any entity that performs functions or operates in a manner similar to the former Guardian’s Office?

Introduction:

In this question and question 10(a), the Service seeks information concerning the Guardian’s Office. Because of the close relationship of this question with question 10(a), we answer both questions fully here.

There are straightforward answers to these questions. The Guardian’s Office (“GO”) was disbanded in 1982 and 1983. A thorough purge of Guardian’s Office staff was conducted at that
time: those convicted of illegal acts were dismissed and are prohibited from ever returning to Church of Scientology staff in any capacity. During 1981 through 1983 the Church conducted its own internal investigation and dismissed from its employ anyone found to have been in any way involved with or condoning similar activities. Such individuals are also barred from ever again serving on staff in any Church of Scientology. There is no Guardian currently and there has not been one for over a decade.

No entity replaced the GO. However, certain functions the GO was originally formed to conduct are now carried out by the Office of Special Affairs (“OSA”), the International Finance Network, the LRH Personal Public Relations Network and the Association for Better Living and Education (“ABLE”). Specifically, OSA deals with legal matters; the International Finance Network sees that Church organizations maintain proper financial records and accounts; LRH Personal Public Relations Office International handles public relations; and ABLE deals with the community outreach social betterment programs of drug rehabilitation (Narconon), criminal rehabilitation (Criminon), education (Applied Scholastics) and raising moral standards in society (The Way to Happiness Foundation).

As discussed in greater detail below, none of these activities operate in a manner similar to the old Guardian’s Office.

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Background:

The Guardian and Guardian’s Office were first established in March of 1966 because legal and other external facing matters were consuming the time and resources of churches of Scientology. In particular, church leaders were being distracted from their primary functions of ministering to the spiritual needs of their expanding religious communities and building their organizations. The first Guardian was Mary Sue Hubbard. Over the next several years, Guardian’s Offices were formed at local churches of Scientology around the world. These local GOs assumed responsibility for each church’s external affairs, with the purpose of freeing their executives and staff to practice and proselytize the religion without distractions. In January of 1969, Mrs. Hubbard appointed Jane Kember as Guardian Worldwide, the highest position in the Guardian’s Office, and Mrs. Hubbard assumed the position of Controller, which was senior to the Guardian’s Office. In 1966, when the GO was formed, the ecclesiastical management headquarters for the Church of Scientology was located in England, at Saint Hill Manor. The highest ecclesiastical body at that time was Executive Council Worldwide. The office of the Guardian was then physically located with the rest of Church management. Mr. Hubbard resigned his position as Executive Director of the Church in September 1966, in order to devote his time to researching the upper levels of spiritual awareness and establishing a base where these levels could be delivered to Scientology parishioners. Needing an environment free from the workaday distractions of Saint Hill, Mr. Hubbard along with his family and a few trusted Scientologists relocated aboard a ship in the Mediterranean. This marked the beginning of the Sea Organization.

The Executive Council Worldwide and the Guardian’s Office Worldwide remained in England and continued to perform their  functions from Saint Hill. Within a couple of years it became clear that Executive Council Worldwide was not adequately performing its functions and that the Church was experiencing a decline. In August 1971, after various attempts to correct the perceived problems, the Executive Council Worldwide was disbanded and the ecclesiastical management of the Church was taken over by Sea Org members in the recently formed Flag Bureaux aboard the Sea
Org ship Apollo.

While the Executive Council Worldwide was disbanded in 1971, the Guardian’s Office Worldwide (“GO WW”) continued to be headquartered in England where it was managed and directed by Jane

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Kember. By the 1970s then, GO WW was physically separate from Scientology ecclesiastical management. The reporting and command lines in the GO were also entirely separate. GO offices were locked and off limits to non-GO staff. The GO thus had become an autonomous network, separate from the rest of Church management. Within the GO there was yet a further segregation — a group called the Intelligence Bureau (“Bl”) kept its activities confidential even from other parts of the GO, particularly those activities it considered sensitive.

During the middle 1970s, the Scientology ecclesiastical management structure continued to evolve with the formation of the Commodores Messenger Organization, the move of the Flag Bureaux from the Apollo to a landbase in Clearwater, Florida, in 1975, and other changes. Throughout this period GO WW remained in England, becoming more and more distant from Church management. The Guardian’s Office was not Sea Org. Their operations, activities and premises were inaccessible to Sea Org members in Church management — or anyone else not in the GO.

Guardian’s Office Illegalities:

In July of 1977, the FBI conducted massive raids on offices of the GO in Los Angeles and in Washington D.C.. Michael Meisner, who had worked in the Information Bureau of the GO, both in D.C. and Los Angeles, had gone to the FBI and provided detailed information about infiltration of government offices by GO staff and/or volunteers, for the purpose of obtaining documents those offices had on the Church. Litigation over the legality of the raids commenced immediately. Criminal indictments were returned against eleven individuals, including Mary Sue Hubbard and Jane Kember.

Because of the autonomy of the Guardian’s Office, and the secrecy within its Intelligence Bureau, the truth about GO misconduct remained unknown to the rest of the Church and even to other segments of the Guardian’s Office for several reasons. The GO executives involved with the criminal activities suppressed this information within the Church and characterized the raids and criminal prosecutions as simply the latest in a long history of attacks on the religion. This explanation was supported by the fact that government (especially FBI and IRS) disinformation about the Church was rampant in the 1960s and 1970s and Scientologists

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had become somewhat inured to it.1/ Church management and staff were concerned with the practice of the religion and were not involved with the GO indictees. This combination of circumstances made it possible for someone like Jane Kember to hold herself out as a martyr being unjustly persecuted and yet remain credible with Scientology management. 2/

Indeed the Government Prosecutor in the D.C. criminal trial testified in deposition that only a small percentage of the people within the GO even knew about the illegal acts that were committed by the GO staff.

Church Investigation of the Guardian’s Office:

In late 1979 and throughout 1980 Church management began to receive indications that there were problems within the Guardian’s Office:

1. The Mission network which was the responsibility of the GO (and which was its primary source of funding) was experiencing an ethical decline. One of the largest missions became embroiled in litigation and a number of mission holders were found to be involved in unethical activities when they arrived at the Flag Service Organization for auditing.

2. Instances of GO staff opening businesses and employing Church staff to the detriment of local churches were reported. When this situation was reported to GO WW and to Mary Sue Hubbard, the response was a GO investigation and intimidation of the Sea Org staff who had received the reports.

__________

1/ For example, internal FBI and IRS documents from this period falsely accused the Church of trafficking in illegal drugs and weapons, promoting rampant drug use and promiscuity, conducting paramilitary operations and plotting civil insurrection.

2/ Mrs. Kember recently testified at a trial in Canada that she and her Deputy Guardian for Intelligence, Mo Budlong, confronted with attacks that they believed threatened the very
survival of the religion, decided on their own to use illegal intelligence measures to locate the sources of the attacks and defend the religion. She confirmed that these activities were only known to a small number of people within the GO because she knew that these activities would not have been condoned by Church management.

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3. In the Fall of 1980, after having had no communication with the Church for several months, Mr. Hubbard wrote to the Commodore’s Messenger Organization International (“CMO INT”) about a wide range of subjects including an inquiry about whether there were any lawsuits against him that he should know about.3/ When asked about this subject, Mary Sue Hubbard gave only a terse response that there were a number of suits, it would take years to resolve them and that the GO did not welcome anyone’s help or inquiries.

The above, combined with the always bothersome general secretiveness of the GO, were interpreted by CMO INT as very alarming behavior. Accordingly, a full time Special Project was initiated by CMO INT to investigate legal matters and the GO’s ineffectiveness in dealing them and the extent to which the GO had departed from its original purpose and design.

The Special Project’s attempts to get information were thwarted by Mrs. Hubbard. She informed the Special Project that she did not appreciate their investigation of the GO and that if one were needed she would do it. In March 1981 she cut all communication lines to the GO except through herself. It must be noted that Mary Sue Hubbard believed her position as Controller and as the Founder’s wife to be unassailable and beyond reproach by anyone but Mr. Hubbard – who was not around at the time. This, plus her absolute control of the GO made it difficult for the Special Project to get anything done.

In April 1981, in an unprecedented move and without Mrs. Hubbard’s knowledge, Special Project sent a mission to GO WW to inspect the Legal Bureau under the guise that they had been authorized by Mrs. Hubbard. What the mission found confirmed their worst suspicions. They found the Deputy Guardian for Legal involved in unethical sexual activities, not doing his job and desiring to leave the GO to go into private practice as an attorney. An inspection of files showed the legal suits to be severely neglected with overdue motions and pleadings. There was almost no evidence of standard Scientology administrative policy being applied.

__________

3/ As discussed in the response to Question 10(d), in early 1980, Boston attorney Michael Flynn initiated a series of duplicative personal injury lawsuits against the Church and Mr.
Hubbard. Part of the Flynn litigation strategy was to name Mr. Hubbard in these suits in the belief that he would not personally appear and thus force the Church to settle or alternatively face default judgments.

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During May 1981 the Special Project’s investigation of the GO intensified. The original mission to the Legal Bureau GO WW brought back a great deal of damaging information. Mary Sue Hubbard, in order to save face, could not admit to her staff that she had not authorized the mission. A second mission fired to GO WW in May and removed the Deputy Guardian for Legal, Charles Parselle, from post and put other GO WW executives and legal staff through Scientology ethics procedures in an effort to correct them and make them more productive.

With increased access to the legal area, in June, 1981 the Special Project discovered startling information. Appended to pleadings by plaintiffs suing Scientology were documents detailing GO criminality which had been seized in the 1977 raid. These documents contained appalling evidence of GO criminality – infiltration of government agencies and harrassment campaigns against those the GO considered enemies. When further investigation proved the documents to be authentic, CMO INT decided that it would have to take charge of GO WW and the GO network until it could be reformed and corrected.

CMO INT planned a complete take-over of the GO.

There were a number of obstacles. Mary Sue Hubbard was still asserting her position as Controller. Mrs. Hubbard and other GO executives suborned the then Commanding Officer CMG INT, Dede Reisdorf, to call off the investigation. Mrs. Hubbard also befriended Laurel Sullivan who was working on a corporate sort out project for the Church and convinced her to restructure corporate affairs so that she and others in the GO would own the trademarks of Scientology. Sullivan was encouraged and assisted by Gerry Armstrong, who sought a position in B1 as his reward.

Sullivan’s mission was immediately terminated and she was put on menial physical work pending ethics and justice actions. Reisdorf was removed from post by her peers. Armstrong was investigated for having falsified documents within the Church. These GO sympathizers later left the Church and became government informants and witnesses against the Church in civil litigation as set forth in detail in the response to question 10d.

David Miscavige gathered a couple dozen of the most proven Sea Org executives from around the world. He briefed them on what had been discovered in investigating the GO. Together, they planned a series of missions to take over the GO, investigate it and reform it thoroughly. The stakes were high because they faced expulsion from Scientology if they were unsuccessful and the GO prevailed.

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Accordingly, on July 13, 1981, with no advance warning to the GO, a coordinated series of five CMO missions were sent out to take over the Guardian’s Office.

The first of these missions, headed by David Miscavige, met with Mary Sue Hubbard to convince her to resign. This was essential as the GO consisted of. around 1,500 staff who were loyal to Mrs. Hubbard. During a stormy meeting she refused to cooperate. She finally relented when Mr. Miscavige told her that regardless of what authority she attempted to invoke, when both public and staff Scientologists were briefed on the crimes of the GO they would demand the GO leadership step down. It would result in a war of wills involving the entire congregration. She would lose, and there would be a lot of bad blood created to the detriment of the religion. Realizing the outrage that would ensue and that the GO would lose any such struggle, she wrote her resignation.

The other missions were then sent out as soon as this resignation was obtained. One mission was sent into the Intelligence Bureau with its principal objective to uncover any and all illegal activities and the persons responsible. Another mission was sent into the Office of the Controller, comprised of assistants under Mrs. Hubbard for each of the areas of Legal, Intelligence, Public Relations and Finance. The Deputy Controller and the Controller Assistants for these areas were all removed from post. They, along with Jane Kember and a number of the individuals who were directly involved in the criminal proceedings were then turned over to another separate ethics mission. This mission, aptly titled the Crim (criminal) Handling Mission, commenced internal ethics and justice actions on these individuals and began the process of removing them from Church employ. Any staff determined by any of the missions to have been involved in any illegalities were put under the charge of this ethics mission to determine more fully each person’s situation and to remove them from staff.

The fifth CMO mission sent at that time went to GO WW to organize that area as most of the executives who had been over it had been removed.

Within a day of Mrs. Hubbard’s resignation, senior Guardian’s Office officials including Jane Kember and the head of Intelligence, Jimmy Mulligan, secretly met with Mrs. Hubbard and conspired to regain control of the GO. Mrs. Hubbard signed a letter revoking her resignation and condemning the actions by the CMO. Scores of GO staff responded, locking CMO INT Missionaires out of their premises and were intending to hire armed guards to bar access to the Sea Org. Mr. Miscavige confronted the mutineers,

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and persuaded Mrs. Hubbard to again resign which ended the last vestige of resistence. While the GO still existed, it was now operating under the direct supervision of CMO missions.

In early August 1981 a Scientology ecclesiastical justice action was convened concerning eleven Worldwide and U.S. Guardian’s Office senior executives who had been removed from their positions, including Jane Kember and three of the other persons who had been charged in the criminal case. In early October each of these individuals formally resigned their staff positions.

It was not until September 1981 that Mr. Hubbard was informed about what had taken place with the Guardian’s Office, when he again contacted the CMO requesting to be updated on current activities in Scientology. He expressed shock at what had been found in the Guardian’s Office and praised those in the CMO who took action on their own initiative.

CMO INT missions and investigations into GO WW in England and the United States Guardian’s Office in Los Angeles continued through the end of 1981 and into 1982, weeding out anyone found to have had any part in anything that appeared to have been illegal or who had knowledge of and condoned the GO’s illegal acts. Anyone found to be in this category was removed from Church employ. Beginning in October of 1981 missions were also sent to the other continental Guardian’s Offices, such as Canada and Europe, to find out what, if any, illegal activity had occurred there. This process continued throughout 1982 with missions going to virtually all GO offices around the world. Any GO staff who had taken part in criminal activities as well as any staff who believed the GO should operate autonomously and without regard to Church policy were dismissed. During this period the staff of the GO network was
reduced by hundreds. Directives were issued that required all orders or communications affecting churches of Scientology originating from the GO to go through the Watchdog  Committee of CMO INT.

After the completion of over 50 Sea Org missions into all echelons of the Guardian’s Office, in early 1983 it was decided that cleaning up and maintaining the Guardian’s Office was not
workable and that it needed to be disbanded altogether. This was accomplished by a new series of CMO Int missions sent to GO offices around the world. The pattern of the missions was to remove all GO staff from their positions and put them on estates work and physical labor around the Church. Concurrently, each person was

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required to make a full confession of past misdeeds (not limited to illegal acts but also any other violations of Church policy) as part of his or her ethics handlings. Depending on what was found, the person was either dismissed from staff or put on a rehabilitation program. In some cases if the person was relatively clean and willing to abide by Church policy, he or she was retained on church staff but in a lower position on a probationary status. All GO directives and issues of any kind were cancelled across the boards.

Before being disbanded the GO’s Finance Bureaux had monitored some aspects of the Church’s finances, including the production of and maintenance of accounts and financial records. With the disbanding of the GO, this function was taken over by the International Finance Network where it remains. Public relations activities were put under the direction and supervision of the LRH Personal Public Relations Officer International and his staff. All GO social betterment functions – drug rehabilitation, criminal rehabilitation and education reform, were taken over by a new organization known as Social Coordination. Later this function was assumed by Association for Better Living and Education (“ABLE”). To administer legal affairs, the Office of Special Affairs (OSA) was formed from a mixture of Sea Org staff who had been on one or more of the missions that had disbanded the GO, new staff recruited
to work in the area and some former GO staff who had survived investigation and scrutiny and had undergone ethics clean-ups relating to their former affiliation in the GO.

The Office of Special Affairs is not an autonomous group. OSA International is part of the Flag Command Bureaux and the highest OSA management position is that of CO OSA INT. The Watchdog Committee has a WDC member, WDC OSA, whose sole job is to see that OSA INT effectively performs its functions and operates according to Church policy. Continental OSA units are part of the Continental Liaison Offices and local OSA representatives, called Directors of Special Affairs, are staff at their local church subject to the supervision of its Executive Council. These measures guarantee that the office handling legal matters for the Church will never be autonomous. Since the disbandment of the GO further steps have been taken to make sure that the negative influences of the GO that were eradicated can never again arise. In 1986 the Church instituted firm policy which makes it mandatory for any former GO staff member to request and get permission from the International Justice Chief before being allowed employment. Any staff who were dismissed

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because of involvement in illegalities are not permitted to return to staff under any circumstances. In 1987 another policy was implemented governing the eligibility of Ex-GO staff for advanced level Scientology religious services as parishioners. Such parishioners are required to request permission from the International Justice Chief and must demonstrate to him that they have been rehabilitated, completed their ethics handlings, are leading ethical lives and that they have made significant contributions toward the overall welfare of the Church.

Summary:

The illegal acts of the GO and its perversion and-abandonment of Church policy were not taken lightly by Church management once they became known. It required many months of investigation and severe measures by dedicated members of CMO INT to finally cleanse the Church of this corruption. There are no longer any autonomous groups or networks within the Church. All staff are measured against a standard of compliance with church Scripture and against their performance in advancing the religion in terms of ministering to the Scientology religious community and in attracting new members.

In early 1983, the Service was advised, in response to a similar request, that none of the eleven individuals convicted of involvement in criminal activities was then on staff at any church
of Scientology, nor was any of them eligible to be on staff in the future.

This continues to be true today and will remain so. Additionally, the Church dismissed a number of others who were determined to have had some part in illegal activities and, although never charged or convicted, are not eligible to be Church of Scientology staff members in the future.

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Question 10(a)

10(a). The Service has expressed its concerns relating to violations of public policy committed in the past by certain individuals affiliated with Scientology and by various Scientology-related organizations. What assurances can the Service be provided that these violations are not continuing as of December 31, 1989, and that those who were involved in the commission of the acts described in the CSC case are no longer affiliated in any capacity or employed by the Church of Scientology, including any Scientology-related organization?

The Service’s ongoing concerns about “violations of public policy committed in the past by certain individuals affiliated with Scientology and by various Scientology-related  organizations” appear to be based on the Tax Court’s decision in CSC. The misconduct that gave rise to the Tax Court’s public policy findings in CSC was the criminal misconduct of individuals within the Guardian’s Office. As discussed in detail in response to question 3(a), the Guardian’s Office has been disbanded, the principal wrongdoers removed from staff permanently barred from ever serving on staff of any Scientology church in any capacity, and other former GO staff with lesser involvement removed and retrained. The procedures instituted that prevent recurrence of misconduct by Church staff in their official capacity apply equally here — the legitimate functions of that office now are carried out under full
and direct ecclesiastical supervision, and there are no organizations or groups performing church functions in the practice and propagation of the religion of Scientology or its affiliated
social welfare and public benefit activities which can operate independently of CSI and the ecclesiastical hierarchy.1/

__________

1/ Church of Spiritual Technology is autonomous from the CSI hierarchy. CST has its own unique activities and purposes which require it to be autonomous. CST’s autonomy does not create a risk of a recurrence of the Guardian Office misconduct, because CST is not involved in any way with the ministry of religious services to the public, the proselytization of the Scientology religion, or the performance of its social welfare and public benefit functions.

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Question 10(b)

b. The term “Snow White” referred in the 1970s to a covert operation carried out by the Guardian’s Office under which illegal acts were perpetrated,  including burglarizing the National Office of the Internal Revenue Service. Is any operation known as “Snow White” still in existence? If not, please describe and document the method by which it ceased operations. If an operation under the name still exists, please describe the operation and provide supporting documentation. In addition, please describe any operation of whatever name that may be designed to achieve goals similar to the “Snow White” operation that existed in-the 1970s.

As discussed in our responses to Questions 3(d) and 10(a), during the 1970s the Information Bureau of the Guardian’s Office (“GO”) carried out a series of operations to infiltrate  government offices, including the National Office of the IRS, to obtain copies of documents concerning the Church. While the GO used various names to refer to those operations, we do not believe it ever used the name “Snow White” to designate those operations. However, we understand that the term Show White may have been misused within a program involving infiltration of government agencies. This may be the source of the misconception about this program conveyed by the Service’s question. The term “Snow White” correctly refers to a
program written by L. Ron Hubbard in 1973 for the purpose of correcting false governmental reports about the Church of Scientology through strictly legal means.

Mr. Hubbard wrote the Snow White Program because several countries bordering the Mediterranean Sea had denied entry to their ports to the ship Apollo, which at that time housed the Church’s senior ecclesiastical management bodies, as a result of false reports concerning the Church that were being distributed primarily by certain governmental officials in England and the United States. Mr. Hubbard wanted to correct the record and to seek redress for religious persecution. Accordingly, Mr. Hubbard wrote:

To engage in various litigation in all countries affected so as to expose to view all such derogatory and false reports, to engage in further litigation in the countries originating such
reports, to exhaust recourse in these countries and then finally to take the matter to the United Nations (that now being possible for an individual and a group) and to the European Commission on Human Rights, meanwhile uprooting and cancelling all such files and reports wherever found.

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This program did not contemplate anything illegal whatsoever, and in fact expressly stated its “Ideal Scene” to be “All false and secret files of the nations of operating areas brought to view and legally expunged . . ..” (Emphasis added).

An example illustrating the use of the Snow White Program, why it was necessary and its results, concerns the country of Portugal. Between 1969 and the first half of 1974 the Apollo frequently docked at ports in Portugal with no problems and good relations with the people and legal […]this same rumor had first surfaced at ports in Spain in 1972 and as a result of this and other false reports the ship had been denied entry into some Spanish ports. Although the rumor continued to surface in 1973 and 1974 in Portugal, the Apollo nonetheless
continued to be welcome in Portuguese ports without major incident.

On October 3, 1974, when the Apollo was docked at the port of Funchal on the island of Madeira, Portugal, it was attacked by a large crowd throwing rocks and shouting “CIA ship.” The local police and army stood by and watched, doing nothing to hold the crowd back. As a result some Church staff aboard the ship were injured and property was damaged or destroyed. Cars and motorcycles belonging to the Church and Church staff were thrown off the dock into the bay. The ship crew had to fight off the attackers with fire hoses while the ship made an emergency departure to escape the violence, without being able to take on food, fuel or water. The Apollo and her crew were forced to wait miles offshore for over a day while order was restored so she could return to load fuel, food and water and sail to a safe country.

Documents obtained from the U.S. State Department through the Freedom of Information act pursuant to the Snow White Program, trace the “CIA ship” rumor to a State Department telex in April of 1972 sent to various European countries that contained this and other false reports. Following the Snow White Program procedure of locating and expunging false reports and seeking redress for religious persecution, a suit was filed in Lisbon by the company that owned the Apollo, Operation Transport Corporation (“OTC”), against the government of Portugal seeking damages as a result of this riot. In June of 1985 the Administrative Court of Lisbon awarded damages to OTC finding that the riot in October of 1974 had been sparked by the CIA ship rumor, and that this rumor was false. These damages were sustained by an appellate court in 1987.

Based on these decisions and clearing up of the false

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information originally generated by the U.S. government, in April of 1988 the Minister of Justice in Portugal officially authorized the registration of the Church of Scientology in  Portugal, accomplishing the Snow White Program’s objective for that country. The principal activities in the United States under the Snow White Program have consisted of filing Freedom of Information Act requests with all Federal governmental agencies and public record requests at the state and local level, pursuing litigation to compel disclosure of records being withheld, and the filing and prosecution of a large lawsuit in 1978 against a number of federal government agencies for the purpose of expunging all false reports on the Church and Mr. Hubbard contained in their files. Other activities under the aegis of Snow White, both in the U.S. and abroad, had to do with investigating and exposing Interpol as an autonomous police agency serving as a conduit for false reports on the Church and others.

The Osler Decision:

The Service need not simply rely on our representations about the Snow White Program as we are providing a copy of the original program with this write-up as Exhibit 10-A. Additionally, Justice Osler of the Supreme Court of Ontario, Canada, reviewed this program in 1985 to determine whether an Ontario Provincial Police officer should be cross-examined on an affidavit he had sworn in support of a search warrant against a Church of Scientology in Canada. The officer had characterized the Snow White Program as calling for illegal actions.

In an opinion dated January 23, 1985, after reviewing the Snow
White Program document and other related evidence, Justice Osler
noted that

. . it is not without significance that the affidavit of Fletcher Prouty, appearing in Volume 8A of the record at tab KK, makes it appear that he formed the conclusion, as a highly
placed official of the Central Intelligence Agency of the United States that since 1950 there has been a definite campaign of harrassment against this organization (Scientology) for nearly thirty years primarily by means of the dissemination of false and derogatory information around the world to create a climate in which adverse action would be taken against the Church and its members. Defense against this type of activity was, of course, the stated objective of the SNOW WHITE program.

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Decision of Supreme Court of Ontario, Osler, J., pp. 33-34.

Concluding that the document on its face called for actions to “legally” expunge files and that the word “legally” appeared to have been purposely left out of the officer’s affidavit, Justice
Osler ordered that the cross-examination of the officer go forward.

Following the cross-examination, on February 7, 1985, Justice Osler issued a second opinion stating that while he did not believe that the officer’s mischaracterization of the Snow White Program rose to the level of a fraudulent misrepresentation, he did find that the officer had made “errors in judgment” in characterizing the program as calling for illegal actions.

Current Snow White Activities:

The Snow White program is not being executed today. It was a very specific program tailored to a particular state of affairs at the time it was written. However, over the years the term Snow White became synonymous with the activity of legally locating and correcting false reports on the Church. So the term may be heard in connection with this activity from time to time. The Church’s legal bureau, working with Church counsel, utilize the Freedom of Information Act and similar statutes around the world to locate false reports on Churches. When located they seek cooperation of the agencies involved in expunging and correcting such reports.

These staff and attorneys carry out no activities that are in any way illegal, and neither does any other unit or function in the Church.

A copy of the Snow White Program as issued in 1973 is attached as Exhibit II-10-A.

Notes

 

CSI 1023 Submission: Response to Question 3(d) [re Guardian and GO] (November 23, 1992)

Question 3(d)

3(d). Did the Guardian’s Office exist on December 31, 1989, or any date since then? During that period, has there been a Guardian? If the answer is yes to either or both of these questions, please list the name(s) of the Guardian(s) and describe the role of the Guardian and the Guardian’s Office. If no, is there any entity that performs functions or operates in a manner similar to the former Guardian’s Office?

Introduction:

In this question and question 10(a), the Service seeks information concerning the Guardian’s Office. Because of the close relationship of this question with question 10(a), we answer both questions fully here.

There are straightforward answers to these questions. The Guardian’s Office (“GO”) was disbanded in 1982 and 1983. A thorough purge of Guardian’s Office staff was conducted at that time: those convicted of illegal acts were dismissed and are prohibited from ever returning to Church of Scientology staff in any capacity. During 1981 through 1983 the Church conducted its own internal investigation and dismissed from its employ anyone found to have been in any way involved with or condoning similar activities. Such individuals are also barred from ever again serving on staff in any Church of Scientology. There is no Guardian currently and there has not been one for over a decade.

No entity replaced the GO. However, certain functions the GO was originally formed to conduct are now carried out by the Office of Special Affairs (“OSA”), the International Finance Network, the LRH Personal Public Relations Network and the Association for Better Living and Education (“ABLE”). Specifically, OSA.deals‘with legal matters; the International Finance Network sees that Church organizations maintain proper financial records and accounts; LRH Personal Public .Relations Office International handles ,public relations; and ABLE deals with the community outreach social betterment programs of drug rehabilitation (Narconon), criminal rehabilitation (Criminon), education (Applied. Scholastics) and raising moral standards in society (The Way to Happiness Foundation).

As discussed in greater detail below, none of these activities operate in a manner similar to the old Guardian’s Office.

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Background:

The Guardian and Guardian’s Office were first established in March of 1966 because legal and other external facing matters were consuming the time and resources of churches of Scientology. In particular, church leaders were being distracted from their primary functions of ministering to the spiritual needs of their expanding religious communities and building their organizations. The first Guardian was Mary Sue Hubbard. Over the next several years, Guardian’s Offices were formed at local churches of Scientology around the world. These local GOs assumed responsibility for each church’s external affairs, with the purpose of freeing their executives and staff to practice and proselytize the religion without distractions. In January of 1969, Mrs. Hubbard appointed Jane Kember as Guardian worldwide, the highest position in the Guardian’s Office, and Mrs. Hubbard assumed the position of Controller, which was senior to the Guardian’s Office.

In 1966, when the GO was formed, the ecclesiastical management headquarters for the Church of Scientology was located in England, at Saint Hill Manor. The highest ecclesiastical body at that time was Executive Council Worldwide. The office of the Guardian was then physically located with the rest of Church management. Mr. Hubbard resigned his position as Executive Director of the Church in September 1966, in order to devote his time to researching the upper levels of spiritual awareness and establishing a base where these levels could be delivered to Scientology’ parishioners.

Needing an environment free from the workaday distractions of Saint Hill, Mr. Hubbard along with his family and a few trusted Scientologists relocated aboard a ship in the Mediterranean. This marked the beginning of the Sea Organization.

The Executive Council Worldwide and the Guardian’s Office Worldwide remained in England and continued to perform their functions from Saint Hill. Within a couple of years it became clear that Executive Council Worldwide was not adequately performing its functions and that the Church was experiencing a decline. In August 1971, after various attempts to correct the perceived problems, the Executive Council Worldwide was disbanded and the ecclesiastical management of the Church was taken over by Sea Org members in the recently formed Flag Bureaux aboard the Sea Orq ship Apollo.

While the Executive Council Worldwide was disbanded in 1971, the Guardian’s Office Worldwide (“GO WW”) continued to be headquartered in England where it was managed and directed by Jane

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Kember. By the 1970s then, GO WW was physically separate from Scientology ecclesiastical management. The reporting and command lines in the GO were also entirely separate. G0 offices were locked and off limits to non-GO staff. The GO thus had become an autonomous network, separate from the rest of Church management.

Within the GO there was yet a further segregation — a group called the Intelligence Bureau (“B1”) kept its activities confidential even from other parts of the GO, particularly those activities it considered sensitive.

During the middle 1970s, the Scientology ecclesiastical management structure continued to evolve with the formation of the Commodores Messenger Organization, the move of the Flag Bureaux from the Aggllg to a landbase in Clearwater, Florida, in 1975, and other changes. Throughout this period GO WW remained in England, becoming more and more distant from Church management. The Guardian’s Office was not Sea Org. Their operations, activities and premises were inaccessible to Sea Org members in Church management — or anyone else not in the GO.

Guardian’s Office Illegalities:

In July of 1977, the FBI conducted massive raids on offices of the GO in Los Angeles and in Washington D.C.. Michael Meisner, who had worked in the Information Bureau of the GO, both in D.C. and Los Angeles, had gone to the FBI and provided detailed information about infiltration of government offices by GO staff and/or volunteers, for the purpose of obtaining documents those offices had on the Church. Litigation over the legality of the raids commenced immediately. Criminal indictments were returned against eleven individuals, including Mary Sue Hubbard and Jane Kember.

Because of the autonomy of the Guardian’s Office, and the secrecy within its Intelligence Bureau, the truth about G0 misconduct remained unknown to the rest of the Church and even to other segments of the Guardian’s Office for several reasons. The GO executives involved.with the criminal activities suppressed this information within the Church and characterized the raids and criminal prosecutions as simply the latest in a long history of attacks on the religion. This explanation was  supported by the fact that government (especially FBI and IRS) disinformation about the Church was rampant in the 1960s and 1970s and Scientologists

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had become somewhat inured to it. 1/ Church management and staff were concerned with the practice of the religion and were not involved with the GO indictees. This combination of circumstances made it possible for someone like Jane Kember to hold herself out as a martyr being unjustly persecuted and yet remain credible with Scientology management. 1/

Indeed the Government Prosecutor in the D.C. criminal trial testified in deposition that only a small percentage of the people within the GO even knew about the illegal acts that were committed by the GO staff.

Church Investigation of the Guardian’s Office:

In late 1979 and throughout 1980 Church management began to receive indications that there were problems within the Guardian’s Office:

1. The Mission network which was the responsibility of the GO (and which was its primary source of funding) was experiencing an ethical decline. One of the largest missions became embroiled in litigation and a number of mission holders were found to be involved in unethical activities when they arrived at the Flag Service Organization for auditing. Instances of GO staff opening businesses and employing Church staff to the detriment of local churches were reported. When this situation was reported to GO WW and to Mary Sue Hubbard, the response was a GO investigation and intimidation of the Sea Org staff who had received the reports.
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1/ For example, internal FBI and IRS documents from this period falsely accused the Church of trafficking in illegal drugs and weapons, promoting rampant drug use and.promiscuity, conducting paramilitary operations and plotting civil insurrection .

2/ Mrs Kember recently testified at a trial in Canada that she and her Deputy Guardian for Intelligence, Mo Budlong, confronted with attacks that they believed threatened the very survival of the religion, decided on their own to use illegal intelligence measures to locate the sources of the attacks and defend the religion. She confirmed that these activities were only known to a small number of people within the GO because she knew that these activities would not have been condoned by Church management.

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3. In the Fall of 1980, after having had no communication with the Church for several months, Mr. Hubbard wrote to the Commodore’s Messenger Organization International (“CMO INT”) about a wide range of subjects including an inquiry about whether there were any lawsuits against him that he should know about.3/  When asked about this subject, Mary Sue Hubbard gave only a terse response that there were a number of suits, it would take years to resolve them and that the GO did not welcome anyone’s help or inquiries.

The above, combined with the always bothersome general secretiveness of the GO, were interpreted by CMO INT as very alarming behavior. Accordingly, a full time Special Project was initiated by CMO INT to investigate legal matters and the GO’s ineffectiveness in dealing them and the extent to which the GO had departed from its original purpose and design.

The Special Project’s attempts to get information were thwarted by Mrs. Hubbard. She informed the Special Project that she did not appreciate their investigation of the GO and that if one were needed she would do it. In March 1981 she cut all communication lines to the GO except through herself. It must be noted that Mary Sue Hubbard believed her position as Controller and as the Founder’s wife to be unassailable and beyond reproach by anyone but Mr. Hubbard – who was not around at the time. This, plus her absolute control of the GO made it difficult for the Special Project to get anything done.

In April 1981, in an unprecedented move and without Mrs. Hubbard’s knowledge, Special Project sent a mission to GO WW to inspect the Legal Bureau under the guise that they had been authorized by Mrs. Hubbard. What the mission found confirmed their worst suspicions. They found the Deputy Guardian for Legal involved in unethical sexual activities, not doing his job and desiring to leave the GO to go into private practice as an attorney. An inspection of files showed the legal suits to be severely neglected with overdue motions and pleadings. There was almost no evidence of standard Scientology administrative policy being applied.

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3/ As discussed in the response to Question 10(d), in early 1980, Boston attorney Michael Flynn initiated a series of duplicative personal injury lawsuits against the Church and Mr. Hubbard. Part of the Flynn litigation strategy was to name Mr. Hubbard in these suits in the belief that he would not personally appear and thus force the Church to settle or alternatively face default judgments.

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During May 1981 the Special Project’s investigation of the GO intensified. The original mission to the Legal Bureau GO WW brought back a great deal of damaging information. Mary Sue Hubbard, in order to save face, could not admit to her staff that she had not authorized the mission. A second mission fired to GO WW in May and removed the Deputy Guardian for Legal, Charles Parselle, from post and put other GO WW executives and legal staff through Scientology ethics procedures in an effort to correct them and make them more productive.

With increased access to the legal area, in June, 1981 the Special Project discovered startling information. Appended to pleadings by plaintiffs suing Scientology were documents detailing GO criminality which had been seized in the 1977 raid. These documents contained appalling evidence of GO criminality – infiltration of government agencies and harrassment campaigns against those the (K) considered enemies. When further investigation proved the documents to be authentic, CMO INT decided that it would have to take charge of GO WW and the GO network until it could be reformed and corrected.

CMO INT planned a complete take-over of the GO.

There were a number of obstacles. Mary Sue Hubbard was still asserting her position as Controller. Mrs. Hubbard and other GO executives suborned the then Commanding Officer CMO INT, Dede Reisdorf, to call off the investigation. Mrs. Hubbard also befriended Laurel Sullivan who was working on a corporate sort out project for the Church and convinced her to restructure corporate affairs so that she and others in the GO would own the trademarks of Scientology. Sullivan was encouraged and assisted by Gerry Armstrong, who sought a position in B1 as his reward.

Sullivan’s mission was immediately terminated and she was put on menial physical work pending ethics and justice actions. Reisdorf was removed from post by her peers. Armstrong was investigated for having falsified documents within the Church. These GO sympathizers later left the Church and became government informants and witnesses against the Church in civil litigation as set forth in detail in the response to question 10d.

David Miscavige gathered a couple dozen of the most proven Sea Org executives from around the world. He briefed them on what had been discovered in investigating the GO. Together, they planned a series of missions to take over the GO, investigate it and reform it thoroughly. The stakes were high because they faced expulsion from Scientology if they were unsuccessful and the GO prevailed.

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Accordingly, on July 13, 1981, with no advance warning to the GO, a coordinated series of five CMO missions were sent out to take over the Guardian’s Office.

The first of these missions, headed by David Miscavige, met with Mary Sue Hubbard to convince her to resign. This was essential as the GO consisted of around 1,500 staff who were loyal to Mrs. Hubbard. During a stormy meeting she refused to cooperate. She finally relented when Mr. Miscavige told her that regardless of what authority she attempted to invoke, when both public and staff Scientologists were briefed on the crimes of the GO they would demand the GO leadership step down. It would result in a war of wills involving the entire congregation. She would lose, and there would be a lot of bad blood created to the detriment of the religion. Realizing the outrage that would ensue and that the GO would lose any such struggle, she wrote her resignation.

The other missions were then sent out as soon as this resignation was obtained. One mission was sent into the Intelligence Bureau with its principal objective to uncover any and all illegal activities and the persons responsible. Another mission was sent into the Office of the Controller, comprised of assistants under Mrs. Hubbard for each of the areas of Legal, Intelligence, Public Relations and Finance. The Deputy Controller and the Controller Assistants for these areas were all removed from post. They, along with Jane Kember and a number of the individuals who were directly involved in the criminal proceedings were then turned over to another separate ethics mission. This mission, aptly titled the Crim (criminal) Handling Mission, commenced internal ethics and justice actions on these individuals and began the process of removing them from Church employ. Any staff determined by any of the missions to have been involved in any illegalities were put under the charge of this ethics mission to determine more fully each person’s situation and to remove them from staff.

The fifth CMO mission sent at that time went to GO WW to organize that area as most of the executives who had been over it had been removed.

Within a day of Mrs. Hubbard’s resignation, senior Guardian’s Office officials including Jane Kember and the head of Intelligence, Jimmy Mulligan, secretly met with Mrs. Hubbard and conspired to regain control of the GO. Mrs. Hubbard signed a letter revoking her resignation and condemning the actions by the CMO. Scores of GO staff responded, locking CMO INT Missionaires out of their premises and were intending to hire armed guards to bar access to the Sea Org. Mr. Miscavige confronted the mutineers,

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and persuaded Mrs. Hubbard to again resign which ended the last vestige of resistence. While the GO still existed, it was now operating under the direct supervision of CMO missions.

In early August 1981 a Scientology ecclesiastical justice action was convened concerning eleven Worldwide and U.S. Guardian’s Office senior executives who had been removed from their positions, including Jane Kember and three of the other persons who had been charged in the criminal case. In early October each of these individuals formally resigned their staff positions.

It was not until September 1981 that Mr. Hubbard was informed about what had taken place with the Guardian’s Office, when he again contacted the CMO requesting to be updated on current activities in Scientology. He expressed shock at what had been found in the Guardian’s Office and praised those in the CMO who took action on their own initiative.

CMO INT missions and investigations into GO WW in England and the United States Guardian’s Office in Los Angeles continued through the end of 1981 and into 1982, weeding out anyone found to have had any part in anything that appeared to have been illegal or who had knowledge of and condoned the GO’s illegal acts. Anyone found to be in this category was removed from Church employ.

Beginning in October of 1981 missions were also sent to the other continental Guardian’s Offices, such as Canada and Europe, to find out what, if any, illegal activity had occurred there. This process continued throughout 1982 with missions going to virtually all GO offices around the world. Any GO staff who had taken part in criminal activities as well as any staff who believed the GO should operate autonomously and without regard to Church policy were dismissed. During this period the staff of the GO network was reduced by hundreds. Directives were issued that required all orders or communications affecting churches of Scientology originating from the GO to go through the Watchdog Committee of CMO INT.

After the completion of over 50 Sea Org missions into all echelons of the Guardian’s Office, in early 1983 it was decided that cleaning up and maintaining the Guardian’s Office was not workable and that it needed to be disbanded altogether. This was accomplished by a new series of CMO Int missions sent to GO offices around the world. The pattern of the missions was to remove all GO staff from their positions and put them on estates work and physical labor around the Church. Concurrently, each person was

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required to make a full confession of past misdeeds (not limited to illegal acts but also any other violations of Church policy) as part of his or her ethics handlings. Depending on what was found, the person was either dismissed from staff or put on a rehabilitation program. In some cases if the person was relatively clean and willing to abide by Church policy, he or she was retained on church staff but in a lower position on a probationary status. All GO directives and issues of any kind were cancelled across the boards.

Before being disbanded the GO’s Finance Bureaux had monitored some aspects of the Church’s finances, including the production of and maintenance of accounts and financial records. With the disbanding of the GO, this function was taken over by the International Finance Network where it remains. Public relations activities were put under the direction and supervision of the LRH Personal Public Relations Officer International and his staff. All GO social betterment functions – drug rehabilitation, criminal rehabilitation and education reform, were taken over by a new organization known as Social Coordination. Later this function was assumed by Association for Better Living and Education (“ABLE”).  To administer legal affairs, the Office of Special Affairs (OSA) was formed from a mixture of Sea Org staff who had been on one or more of the missions that had disbanded the GO, new staff recruited to work in the area and some former GO staff who had survived investigation and scrutiny and had undergone ethics clean-ups relating to their former affiliation in the GO.

The Office of Special Affairs is not an autonomous group. OSA International is part of the Flag Command Bureaux and the highest OSA management position is that of CO OSA INT. The Watchdog Committee has a WDC member, WDC OSA, whose sole job is to see that OSA INT effectively performs its functions and operates according to Church policy. Continental OSA units are part of the Continental Liaison Offices and local OSA representatives, called Directors of Special Affairs, are staff at their local church subject to the supervision of its Executive Council.

These measures guarantee that the office handling legal matters for the Church will never be autonomous.

Since the disbandment of the GO further steps have been taken to make sure that the negative influences of the GO that were eradicated can never again arise. In 1986 the Church instituted firm policy which makes it mandatory for any former GO staff member to request and get permission from the International Justice Chief before being allowed employment. Any staff who were dismissed

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because of involvement in illegalities are not permitted to return to staff under any circumstances. In 1987 another policy was implemented governing the eligibility of Ex-GO staff for advanced level Scientology religious services as parishioners. Such parishioners are required to request permission from the International Justice Chief and must demonstrate to him that they have been rehabilitated, completed their ethics handlings, are leading ethical lives and that they have made significant contributions toward the overall welfare of the Church.

Summary:

The illegal acts of the GO and its perversion and abandonment of Church policy were not taken lightly by Church management once they became known. It required many months of investigation and severe measures by dedicated members of CMO INT to finally cleanse the Church of this corruption. There are no longer any autonomous groups or networks within the Church. All staff are measured against a standard of compliance with church Scripture and against their performance in advancing the religion in terms of ministering to the Scientology religious community and in attracting new members.

In early 1983, the Service was advised, in response to a similar request, that none of the eleven individuals convicted of involvement in criminal activities was then on staff at any church of Scientology, nor was any of them eligible to be on staff in the future.

This continues to be true today and will remain so. Additionally, the Church dismissed a number of others who were determined to have had some part in illegal activities and, although never charged or convicted, are not eligible to be Church of Scientology staff members in the future.

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Notes

CSI 1023 Submission: Response to Question II-10 (a-d) [Re: Public Policy Violations] (June 2, 1992)

Question 10(a)1

10(a). The Service has expressed its concerns relating to violations of public policy committed in the past by certain individuals affiliated with Scientology and by various Scientology-related organizations. What assurances can the Service be provided that these violations are not continuing as of December 31, 1989, and that those who were involved in the commission of the acts described in the CSC case are no longer affiliated in any capacity or employed by the Church of Scientology, including any Scientology-related organisation?

The Service’s ongoing concerns about “violations of public policy committed in the past by certain individuals affiliated with Scientology and by various Scientology-related organizations” appear to be based on the Tax Court’s decision in CSC. The misconduct that gave rise to the Tax Court’s public policy findings in CSC was the criminal misconduct of individuals within the Guardian’s Office. As discussed in detail in response to question 3(a), the Guardian’s Office has been disbanded, the principal wrongdoers removed from staff permanently barred from ever serving on staff of any Scientology church in any capacity, and other former GO staff with lesser involvement removed and retrained. The procedures instituted that prevent recurrence of misconduct by Church staff in their official capacity apply equally here — the legitimate functions of that office now are carried out under full and direct ecclesiastical supervision, and there are no organizations or groups performing church functions in the practice and propagation of the religion of Scientology or its affiliated social welfare and public benefit activities which can operate independently of CSI and the ecclesiastical hierarchy.1/

1/ Church of Spiritual Technology is autonomous from the CSI hierarchy. CST has its own unique activities and purposes which require it to be autonomous. CST’s autonomy does not create a risk of a recurrence of the Guardian Office misconduct, because CST is not involved in any way with the ministry of religious services to the public, the proselytization of the Scientology religion, or the performance of its social welfare and public benefit functions.

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Question 10(b)

b. The term “Snow White” referred in the 1970s to a covert operation carried out by the Guardian’s Office under which illegal acts were perpetrated, including burglarising the National Office of the Internal Revenue Service. Is any operation known as “Snow white” still in existence? If not, please describe and document the method by which it ceased operations. If an operation under the name still exists, please describe the operation and provide supporting documentation. In addition, please describe any operation of whatever name that may be designed to achieve goals similar to the “Snow White” operation that existed in the 1970s.

As discussed in our responses to Questions 3(d) and l0(a), during the 1970s the Information Bureau of the Guardian’s Office (“GO”) carried out a series of operations to infiltrate government offices, including the National Office of the IRS, to obtain copies of documents concerning the Church. While the GO used various names to refer to those operations, we do not believe it ever used the name “Snow White” to designate those operations. However, we understand that the term Show White may have been misused within a program involving infiltration of government agencies. This may be the source of the misconception about this program conveyed by the Service’s question. The term “Snow White” correctly refers to a program written by L. Ron Hubbard in 1973 for the purpose of correcting false governmental reports about the Church of Scientology through strictly legal means.

Mr. Hubbard wrote the Snow White Program because several countries bordering the Mediterranean Sea had denied entry to their ports to the ship Apollo, which at that time housed the Church’s senior ecclesiastical management bodies, as a result of false reports concerning the Church that were being distributed primarily by certain governmental officials in England and the United States. Mr. Hubbard wanted to correct the record and to seek redress for religious persecution. Accordingly, Mr. Hubbard wrote:

To engage in various litigation in all countries affected so as to expose to view all such derogatory and false reports, to engage in further litigation in the countries originating such reports, to exhaust recourse in these countries and then finally to take the matter to the United Nations (that now being possible for an individual and a group) and to the European Commission on Human Rights, meanwhile uprooting and cancelling all such files and reports wherever found.

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This program did not contemplate anything illegal whatsoever, and in fact expressly stated its “Ideal Scene” to be “All false and secret files of the nations of operating areas brought to view and legally expunged . . ..” (Emphasis added).

An example illustrating the use of the Snow White Program, why it was necessary and its results, concerns the country of Portugal. Between 1969 and the first half of 1974 the Apollo frequently docked at ports in Portugal with no problems and good relations with the people and local governments. In July 1973 a rumor was first heard in the port of Oporto that the Apollo was a “CIA ship.” This same rumor had first surfaced at ports in Spain in 1972 and as a result of this and other false reports the ship had been denied entry into some Spanish ports. Although the rumor continued to surface in 1973 and 1974 in Portugal, the Apollo nonetheless continued to be welcome in Portuguese ports without major incident.

On October 3, 1974, when the Apollo was docked at the port of Funchal on the island of Madeira, Portugal, it was attacked by a large crowd throwing rocks and shouting “CIA ship.” The local police and army stood by and watched, doing nothing to hold the crowd back. As a result some Church staff aboard the ship were injured and property was damaged or destroyed. Cars and motorcycles belonging to the Church and Church staff were thrown off the dock into the bay. The ship crew had to fight off the attackers with fire hoses while the ship made an emergency departure to escape the violence, without being able to take on food, fuel or water. The Apollo and her crew were forced to wait miles offshore for over a day while order was restored so she could return to load fuel, food and water and sail to a safe country.

Documents obtained from the U.S. State Department through the Freedom of Information act pursuant to the Snow White Program, trace the “CIA ship” rumor to a State Department telex in April of 1972 sent to various European countries that contained this and other false reports. Following the Snow White Program procedure of locating and expunging false reports and seeking redress for religious persecution, a suit was filed in Lisbon by the company that owned the Apgllg, Operation Transport Corporation (“OTC”), against the government of Portugal seeking damages as a result of this riot. In June of 1985 the Administrative Court of Lisbon awarded damages to OTC finding that the riot in October of 1974 had been sparked by the CIA ship rumor, and that this rumor was false. These damages were sustained by an appellate court in 1987.

Based on these decisions and clearing up of the false

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information originally generated by the U.S. government, in April of 1988 the Minister of Justice in Portugal officially authorized the registration of the Church of Scientology in Portugal, accomplishing the Snow White Program’s objective for that country. The principal activities in the United States under the Snow White Program have consisted of filing Freedom of Information Act requests with all Federal governmental agencies and public record requests at the state and local level, pursuing litigation to compel disclosure of records being withheld, and the filing and prosecution of a large lawsuit in 1978 against a number of federal government agencies for the purpose of expunging all false reports on the Church and Mr. Hubbard contained in their files. Other activities under the aegis of Snow White, both in the UZS. and abroad, had to do with investigating and exposing Interpol as an autonomous police agency serving as a conduit for false reports on the Church and others.

The Osler Decision:

The Service need not simply rely on our representations about the Snow White Program as we are providing a copy of the original program with this write-up as Exhibit 10-A. Additionally, Justice Osler of the Supreme Court of Ontario, Canada, reviewed this program in 1985 to determine whether an Ontario Provincial Police officer should be cross-examined on an affidavit he had sworn in support of a search warrant against a Church of Scientology in Canada. The officer had characterized the Snow White Program as calling for illegal actions.

In an opinion dated January 23, 1985, after reviewing the Snow White Program document and other related evidence, Justice Osler noted that

“. . . it is not without significance that the affidavit of Fletcher Prouty, appearing in Volume 8A of the record at tab KK, makes it appear that he formed the conclusion, as a highly placed official of the Central Intelligence Agency of the United States that since 1950 there has been a definite campaign of harrassment against this organization (Scientology) for nearly thirty years primarily by means of the dissemination of false and derogatory information around the world to create a climate in which adverse action would be taken.against the Church and its members. Defense against this type of activity was, of course, the stated objective of the SNOW WHITE program.

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Decision of Supreme Court of Ontario, Osler, J., pp. 33-34.

Concluding that the document on its face called for actions to “legally” expunge files and that the word “legally” appeared to have been purposely left out of the officer’s affidavit, Justice Osler ordered that the cross-examination of the officer go forward. Following the cross-examination, on February 7, 1985, Justice Osler issued a second opinion stating that while he did not believe that the officer’s mischaracterization of the Snow White Program rose to the level of a fraudulent misrepresentation, he did find that the officer had made “errors in judgment” in characterizing the program as calling for illegal actions.

Current Snow White Activities:

The Snow White program is not being executed today. It was a very specific program tailored to a particular state of affairs at the time it was written. However, over the years the term Snow White became synonymous with the activity of legally locating and correcting false reports on the Church. So the term may be heard in connection with this activity from time to time. The Church’s legal bureau, working with Church counsel, utilize the Freedom. of Information Act and similar statutes around the world to locate false reports on Churches. When located they seek cooperation of the agencies involved in expunging and correcting such reports. These staff and attorneys carry out no activities that are in any way illegal, and neither does any other unit or function in the Church.

A copy of the Snow White Program as issued in 1973 is attached as Exhibit II-10-A.

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Question 10 (c)

Please state whether, to the best of your knowledge and belief, there are any pending United States or state or local governmental investigations regarding possible criminal law violations by a Scientology-related organization or by any individual alleged to have been acting under the direction of (as agent or otherwise), or in conjunction with, any such organization. For purposes of this question, please include any information relating to any Class V Church or Mission without regard to whether such Church or Mission is required to be listed in your response to question 1. Please include any pending criminal charges (and/or any pending court action including relevant docket number(s) against such entity or individual. Include in the description the investigating agency and any knowledge and/or documents known by you, or in your possession, or known by a Scientology-related organization or in the possession of such an organization regarding the investigation (e.g., what the allegations are and the date the acts were allegedly committed). In addition, please list all positions held by the individual listed in response to this question in any Scientology-related organizations at the present time and at the time the activity in question allegedly occurred.

There are no known pending governmental investigations regarding possible criminal law violations by any Scientology-related organizations or by any individual alleged to have been acting under the direction of (as agent or otherwise), or in conjunction with, any such organization.

*   *   *   *   *

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Question 10 (d)

d. Please provide a list of all civil or criminal litigation commenced on or after January 1, 1980 in which it is alleged that any Scientology-related organization (as that definition has been modified in c. above) or any individual alleged to have been acting under the direction of (as agent or otherwise), or in conjunction with, any such organization, has violated any criminal law or has committed an intentional tort. The list should contain parties’ names, the docket number(s) of the litigation, the court in which the matter is or was pending, a short description of all claims (and any counterclaims) by the parties, including any additional facts you believe would be relevant to allow us to understand the bases of the suit, and the status of the action. The list need not contain litigation in which the Commissioner of Internal Revenue is a named party.

Background

Although only litigation that commenced on or after January 1, 1980 has been requested, background information is necessary to put those cases in context. In the 30 years prior to 1980 there were only a handful of alleged intentional tort cases in the United States. These were principally cases involving a disgruntled former member wishing a refund of his or her donations, and who included tort causes of action as a litigation tactic. Such cases were typically dismissed without a trial or settled for a refund of the donations made.

The response to Question 3 (d) describes in detail how during the 1970s the Guardian’s Office (“GO”) acted as an autonomous organization unchecked and unsupervised by the ecclesiastical management of the Church. GO staff carried out illegal programs, such as the infiltration of government offices for which eleven members of the GO were prosecuted and convicted. There were also instances in which GO staff used unscrupulous means to deal with people they perceived as enemies of the Church — means that were completely against Scientology tenets and policy.

Although these activities involved a very small number of Guardian’s Office staff members operating autonomously in violation of Church policy and the law, their actions provided ammunition for those who would attack the Church and damaged the Church’s credibility with courts and the government. The GO carried out several years of secretive, questionable and often illegal activities before they were exposed and stopped. Much of this was recorded in documents that were seized in FBI raids on GO offices and made publicly available during the criminal prosecutions of GO members. The Commodore’s Messenger Organization

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 investigated and disbanded the GO in the early 1980s, dismissing a large number of GO members from Church staff along with a few GO sympathizers in Church management. The GO documents and the activities that they revealed, along with a small group of rabid apostates, came to the attention of Boston personal injury attorney Michael Flynn, who concluded that this combination made the Church an easy litigation target in cases which he hoped to position for large monetary settlements.

Michael Flynn

Flynn, whose practice had theretofore centered on medical malpractice, launched his litigation assault on the Church of Scientology in 1979. His formula, which he repeated in all of the cases he brought, was to: (1) locate someone who had left the Church, had been purged or who could be induced to leave the Church; (2) convince the person to file “cookie-cutter” fraud and emotional distress claims; and (3) commence an action through an inflammatory complaint, relying on documents from the Guardian’s Office to give an air of false credibility to the claims.

Flynn, however, did not sue the GO; instead, his targets were Churches of Scientology generally and L. Ron Hubbard. As part of his design, Flynn enlisted the aid of ousted GO sympathizers and former GO members as witnesses, thus enabling him to orchestrate a highly prejudicial portrayal of Scientology for judges and juries and for the media.

On a separate front, Flynn set out to create broader problems for the Church in the hope both of spreading Church resources thin and imparting a false air of credence to his civil claims. This he accomplished by instigating governmental investigations and attacks on the Church, often through IRS personnel who were more than willing to cooperate.

The Van Schaick Action

Flynn’s first step was to file a class action lawsuit on December 13, 1979, in the United States District Court for the District of Massachusetts. Van Schaick v. Church of Scientology of California, et al.. No. 79-2491-G. In that action, Van Schaick, purporting to act as a supposed class representative, alleged an array of torts and sought $200 million in damages. However, no class certification was ever pursued by Flynn. Instead, he used the lurid allegations and huge prayer of the Van Schaick complaint as a tool for soliciting additional clients to sue the

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Church. Ultimately, Flynn recruited 28 plaintiffs to file virtually identical actions in various jurisdictions.

Flynn Associates Management Corporation

In 1980, Flynn created a corporate entity to promote his burgeoning business of suing the Church. Flynn Associates Management Corporation (“FAMCO”) was formed, in the words of a FAMCO document, to promote four basic goals:

  1. Closing Scientology organizations (Churches)
  2. Adverse media
  3. Adverse public reaction
  4. Federal and state attacks (on religion)

FAMCO was merely a front designed to generate money to finance Flynn’s litigation against the Church. A “get rich quick” scheme outlined in one FAMCO document actually promised FAMCO “investors” between $2 and $4 for every $1 invested in FAMCO shares. FAMCO was essentially a franchising scheme through which Flynn solicited co-counsel in various other jurisdictions to join in the Church litigation through a fee-splitting system. Flynn’s plan was “. . . to position ourselves such that to fight us would be cost ineffective.” He forecast “One thousand lawsuits (against the Church of Scientology) . . . by the end of 1981.” Flynn provided attorneys with “turn-key” lawsuits. He promised other attorneys that, “We provide the clients, the damages, the pleadings, the memoranda, the documents, the witnesses and virtually everything required for an instantaneous trial with little or no necessity for discovery.”

Flynn’s Probate Gambit

A particularly outrageous tactic employed by Flynn was his attempt to steal Mr. Hubbard’s estate by inducing Mr. Hubbard’s estranged son, Ronald DeWolfe, to bring a probate action in November 1982, falsely alleging that Mr. Hubbard was missing and that DeWolfe should be appointed to control the estate. At the same time, of course, Flynn was representing a group of former Scientologists who had named Mr. Hubbard as a defendant in civil suits against the Church, alleging that Mr. Hubbard controlled the Church as its managing agent. Flynn thus achieved the unique distinction of going into one court room to argue that Mr. Hubbard controlled the day-to-day operations of the Church through a constant stream of orders to Mr. Miscavige, and then crossing the hall to another court room to argue that Mr. Hubbard was ill and dying and that he was being manipulated by his close advisors, especially Mr. Miscavige. By being willing to speak out of both sides of

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his mouth, Flynn was seeking to get rich by trying to gain control of the very estate he was simultaneously seeking to plunder./1

After Flynn’s probate action was dismissed on summary judgment in June of 1983, Flynn shifted gears and announced that his “real” purpose in bringing the probate action had been to force Mr. Hubbard out of seclusion so he could be served in Flynn’s other cases.

One of Flynn’s clients, Paulette Cooper, graphically described in an affidavit how Flynn detailed to her his strategy to “quickly and easily win” cases by “conducting an attack against Scientology founder L. Ron Hubbard” by naming him as a defendant in her pending lawsuits. Flynn specifically told Cooper that he believed that “Hubbard would never appear” in those suits because “by approximately 1979, Mr. Hubbard had severed his ties with the
Church.” Flynn boasted that such a ploy would result in quick money judgments because the litigation could be “quickly terminated, either by obtaining a default judgment against Mr. Hubbard,” or by forcing “settle[ment] in order to protect Mr. Hubbard.” Cooper further affirmed that Flynn filed sworn statements by Cooper in her cases alleging Mr. Hubbard’s control when Cooper lacked any evidence whatsoever of the claim, “solely for strategic reasons in pursuit of default judgment.”

Government Support for the Flynn Campaign

As noted above, Flynn obtained government assistance to lend credence and momentum to his attacks and to bring additional pressure on the Church. Tactics, strategies and the goal of the destruction of the Scientology religion were shared and carried out by Flynn in coordination with some parts of the IRS and Department of Justice. The clearest examples of this collusion were in the fall and winter of 1984.

In August of 1984, in civil litigation between churches of Scientology and the IRS and other federal government agencies that had been in progress for some years, the government worked with Flynn in importing one of Flynn’s principal tactics into the Church’s government litigation, namely seeking the deposition of L. Ron Hubbard as managing agent of the Church and then seeking dismissal or default as


1/ It was during that same time period that Charles Rumph of the IRS National Office told Mr. Miscavige that he lacked credibility because he was an “automaton” who only did and said what L. Ron Hubbard told him to do and say.

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a sanction if Mr. Hubbard failed to appear. The evidence used to support the government’s motions to compel those depositions were declarations by individuals who were clients of or had been witnesses for Flynn. Simultaneously, the government launched an “unclean hands” defense in these same suits based on allegations and claims that mirrored those that Flynn had asserted in his redundant lawsuits nationwide.

Two of the government’s principal declarants were Flynn’s client Laurel Sullivan and Flynn witness Dede Reisdorf. Sullivan had been removed from her position and later left the Church because she conspired with the GO to place GO members who had committed crimes in positions of corporate authority within the Church. She was a loser in the purge. Flynn provided her to the IRS who used her as a government witness represented by DOJ attorneys in Flynn litigation. Dede Reisdorf was also a GO sympathizer who was removed from her post in 1981 when she tried to block the investigation in the GO.

In March of 1985, based on the declarations of Sullivan and Reisdorf, Judge Joyce Hens Greene ordered the Church to produce Mr. Hubbard for deposition or face dismissal of a civil suit against the government which was in the process of exposing 20 years of false reports and harassment against Scientology and Scientologists. Unable to comply with the order as Mr. Hubbard was not running the Church or even accessible to anyone in the Church, the Church’s suit was dismissed in April of 1985 as a discovery sanction.

A few courts saw through the charade and refused to order Mr. Hubbard’s deposition. One such Judge was District Judge Marianna R. Pfaelzer, who, on January 24, 1986, just hours before Mr. Hubbard’s passing, refused to order Mr. Hubbard’s deposition. In her ruling, Judge Pfaelzer held that, while Mr. Hubbard was “accorded reverence and respect by Scientologists,” he was not the managing agent of the Church corporations.

IRS CID Support of Flynn

It was during this same period that the IRS Criminal Investigation Division in Los Angeles commenced a criminal investigation of L. Ron Hubbard, David Miscavige and various churches of Scientology and other Scientologists. According to the testimony of CID Branch Chief Phillip Xanthos, the impetus for the investigation was a newspaper article detailing allegations made by Flynn and a number of his witnesses and clients. In fact, the majority of the individuals who were interviewed and used as informants by the CID in their investigation were from Flynn’s stable of

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witnesses and clients, among them Gerry Armstrong. In a late 1984 police-authorized video tape surveillance, Armstrong — a Sullivan ally who had made several attempts to join the GO’s intelligence office — was recorded plotting a take-over of the Church. The plan included planting phony documents that would then be seized in a CID raid, the filing of a new lawsuit by Flynn which was designed to wrest control of the Church from its legitimate leaders and to set up the sexual compromise and blackmail of a senior Scientologist.

Just as Flynn expressed his goal of destroying the Church in his original planning papers, in the Special Agents report prepared at the end of the CID investigation, the agents expressed the same aim — “the final halt” and the “ultimate disintegration” of the Church of Scientology.

Resolution of Flynn Cases:

Between 1980 and 1986, Flynn was either counsel of record, of counsel or coordinating counsel on 40 virtually identical lawsuits against the Church. Flynn’s plan to incite 1,000 lawsuits never came to fruition, and his plan to break the Church financially, failed. By 1986, only one of Flynn’s cases had gone to trial. That case, Stifler v. Church of Scientology of Boston and Church of Scientology of California, involved an altercation between Stifler and a Church disseminator in which Stifler claimed injuries.2/ He found his way to Michael Flynn and filed suit, alleging various tortious conduct on the part of the Church and sought $4,250,000 in damages. Flynn took the case to trial and Stifler was awarded the amount of his medical bills ($979) in a judgment against the individual Church member. There was no judgment or damages against either of the Churches.

Realizing his plan had failed, Flynn approached the Church in 1986 offering a settlement. The Church decided to pay nuisance value to get rid of the distraction created by these cases, begin a new era of expansion for Scientology and to settle matters with the IRS. The first two of these objectives were achieved and all of the Flynn-related cases, as listed below, were settled if they had not been previously dismissed already. A new era of expansion did begin for Scientology.

2/ The only other “Flynn” case that went to trial was Church of Scientology of California v. Armstrong, a suit the Church brought against Armstrong, over Armstrong’s theft of Church archival materials. Armstrong brought a counter-suit with intentional tort claims which was never tried and was part of the Flynn settlement.

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 It also appeared that a settlement with the IRS would be possible, but after years of good faith efforts and cooperation by the Church in its efforts to settle with the IRS, agents in the Los Angeles IRS Criminal Investigation Division and hardliners against Scientology in the National Office, such as Marcus Owens, sabotaged those efforts causing the negotiations to break down, as is covered in more detail later.

The following is the list of the Flynn-related suits that were either dismissed or settled: Gerald Armstrong v. Church of Scientology of California, et al., (cross-complaint), No. C 420 153, Superior Court of the State of California for the County of Los Angeles; Jose Baptista v. Church of Scientology Mission of Cambridge, No. Civ. 81010, Superior Court of the Commonwealth of Massachusetts; Mark D. Barron v. Church of Scientology of Boston, No. 5110, Superior Court, Commonwealth of Massachusetts; Donald Bear v. Church of Scientology of New York, et al., No. 81 Civ. 6864 (MJL), United States District Court Southern District of New York; Peggy Bear v. Church of Scientology of New York et al.; No. 81 Civ. 4688 (MJL) United States District Court Southern District of New York; Phillip Bride v. Church of Scientology of Portland, Church of Scientology Mission of Davis, et al.. No. A 8003-01189, Circuit Court of the State of Oregon, Multnomah County; Eileen Brown for Kevin Brown v. Delphian Fdn., et al. No. 81-435 (FBL); United States District Court of New Jersey transferred to the U.S. District Court for the District of Oregon on July 28, 1982; Tonja C. Burden v. Church of Scientology of California, et al., No. 80-501-Civ-T-K, U.S. District Court for Middle District of Florida, Tampa Division. Gabriel and Margaret Cazares v. Church of Scientology. No. 82-886-Civ-T-15 United States District Court Middle District of Florida, Tampa Division; Gabriel and Margaret Cazares v. Church of Scientology of California, et al. 81- 3472-CA-OI, Circuit Court Seventh Judicial Circuit Volusia County; John G. Clark, Jr. v. L. Ron Hubbard No. 85-356-MCN, United States District Court for the District of Massachusetts; Bent Corydon and Mary Corydon, Mark Lutovsky, Phil Black, Mark Chacon, Church of Sciologos v. Church of Scientology Mission of Riverside, et al., No. 154129, Superior Court of the State of California County of Riverside; Paulette Cooper v. Church of Scientology of Boston, Inc., et al., No. 81 681 MC United States District Court, District of Massachusetts; Michael J. Flynn, Lucy Garritano, Steven Garritano, James Gervais and Peter Graves v. Church of Scientology of Boston, Inc., (counter-claim), No. 40906 Superior Court Commonwealth of Massachusetts; Michael J.

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 Flynn v. Church of Scientology of California, et al., No. 54258, Superior Court Commonwealth of Massachusetts; Michael J. Flynn v. Church of Scientology International, et al., CV 85-4853, United States District Court, Central District of California; Michael J. Flynn v. L. Ron Hubbard, Mary Sue Hubbard, Church of Scientology of California, No. 83-2642-C, United States District Court for the District of Massachusetts; Carol A. and Paul Garrity v. Church of Scientology of California, Mary Sue Hubbard, and L. Ron Hubbard, CV 81-3260 RMT (JRX), United States District Court Central District of California; Hansen, Marjorie J. v. Church of Scientology of Boston, Church of Scientology of California, No. 47074, Superior Court Commonwealth of Massachusetts; Betsy Harper v. Lafayette Ronald Hubbard, No. 65262, Superior Court Commonwealth of Massachusetts; Ernest and Mary Adell Hartwell, v. Church of Scientology of California et al., No. 196800, Eighth Judicial District Court of the State of Nevada in and for County of Clark; Thomas Jefferson v. Church of Scientology of California, L. Ron Hubbard and Mary Sue Hubbard, CV-81-3261, United States District Court Central District of California; Deborah Ann Keck v. Church of Scientology of California, et al., CV-81-6060 R, United States District Court for the Central District of California; Dana Lockwood v. Church of Scientology of California, L. Ron Hubbard and Mary Sue Hubbard, CV-81-4109 CBM, United States District Court Central District of California; Nancy and John McLean, v. Church of Scientology of California, et al., No. 81-174-Civ-T-K United States District Court Middle District of Florida Tampa Division; Steven R. Pacca v. Church of Scientology of New York, et al., No. 12076-81, Supreme Court New York County; Jane Lee and Richard Peterson v. Church of Scientology of California, L. Ron Hubbard, Mary Sue Hubbard, CV 81-3259 CBM (KX), United States District Court Central District of California; Patrick R. Rosenkjar v.  Church of Scientology of California, L. Ron Hubbard, and Mary Sue Hubbard, No. 81-1350, United States District Court for the District of Columbia; Martin Samuels, v. L. Ron Hubbard, A8311-07227, In the Circuit of the State of Oregon for the County of Multnomah; Howard D. Schomer v. L. Ron Hubbard, et al., No. CV 84-8335, U.S. District Court, Central District of California; Michael W. Smith v. Church of Scientology of Boston, Inc. and Church of Scientology of California, No. 47236, Superior Court for the State of Massachusetts; Manfred Stansfield, Valerie Stansfield, Franklin Freedman et al. v. Norman Starkey, et al., No. CA 001 012, Superior Court for the County of Los Angeles; Lawrence Stiffler v. Church of Scientology of Boston and Roger Sylvester, No. 44706, Superior Court Commonwealth of Massachusetts; Gabor Szabo v. Church of Scientology of California and Vanguard

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Artists International, No. C 312 329, Superior Court of California, County of Los Angeles; Janet Troy v. Church of Scientology of Boston and Church of Scientology of California, No. 41073, Superior Court Commonwealth of Massachusetts; Kim L. Vashel v. Church of Scientology of Boston and Church of Scientology of California, No. 47237, Superior Court for the Commonwealth of Massachusetts; Margery Wakefield v. Church of Scientology of California, No. 82-1313 Civ-T-10 United States District Court for the Middle District of Florida Tampa Division. Bent Corydon v. Church of Scientology International, et al., No. C 694401, Superior Court of the State of California, County of Los Angeles.

Other Categories of Cases:

Although the cases generated by Michael Flynn comprised the majority of tort litigation against the Church of Scientology between 1980 and 1986, there were some other cases that arose during the same period of time that were not entirely “Flynn” cases although they were generally of the same ilk. Flynn shared information, witnesses, tactics and sometimes acted as coordinating counsel for other attorneys involved in similar litigation against the Church. In other instances, while there was no apparent direct link between Flynn and a particular plaintiff or attorney in a suit, the similarity of claims and tactics suggests that these individuals or attorneys were copying Flynn’s strategy. The following cases fall into this category: Alberto Montoya v. L. Ron Hubbard, Church of Scientology, et al., No. 450094, Superior Court of California, County of San Diego; Joan Edin v. Church of Scientology Mission of Davis, et al., No. 287191, Rita Engelhardt B. v. Church of Scientology, et al., No. C 312 692, Superior Court of California, for the County of Los Angeles. Each of those cases was dismissed.

There are a few cases where Flynn’s influence was felt that deserve separate discussion as they are cases that actually went to trial and were adjudicated.

Christofferson:

The Christofferson case was actually originally filed in 1977, prior to the period covered by the Service’s question.

In 1977, after taking a few elementary courses at the Church of Scientology Mission of Portland and working for a short time at another organization, Julie Christofferson was kidnapped and, over a four day period, deprogrammed to give up her religion by convicted felon Ted Patrick. She was

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then turned over to attorneys by the anti-religion group involved so she could bring suit against the Church on a contingent fee basis.

At trial, Christofferson’s attorneys derided and distorted Scientology’s beliefs and practices to such an extent that the Oregon State Court of Appeals overturned the $2 million verdict, finding that Scientology is a religion and that the trial had been rife with First Amendment violations. Upon remand, Christofferson’s lawyers — by then FAMCO members — applied Flynn’s tactics and inflamed a jury into a $39 million verdict that led the trial court to declare a post-verdict mistrial in May of 1985. There never was another trial. The Christofferson case was part of the 1986 global settlement with Flynn.

Wollersheim

Larry Wollersheim had been in and out of churches of Scientology for over a decade before he finally left for good in 1979. While in the Church he was continually in trouble over his unethical business practices. He filed suit against the Church for a variety of claims, Wollersheim v. Church of Scientology of California, No. C-332-027, in State Court in Los Angeles in 1980, represented by attorney Charles O’Reilly, a participant in the original FAMCO planning meetings.

During the five month trial in 1986, O’Reilly applied the FAMCO tactics and relied upon Flynn’s stable of witnesses and obtained an absurd verdict of $30,000,000.

While the Wollersheim case is still going through the appeals process, the jury verdict has been reduced to $2,500,000 from its original $30,000,000, and further appeals are pending.

GO Criminal Activity Fallout Litigation:

Another category of cases involved Guardian’s Office members or stemmed from GO illegal activities. This included, for example, proceedings to compel testimony before a grand jury convened in Florida to investigate GO activities and an action by the State of Florida to disbar Merrell Vannier, an attorney who was also a GO operative and who violated the canons of ethics as an attorney. It was this kind of activity that was rooted out and condemned in the disbanding of the GO. Nonetheless a certain amount of fall-out litigation from the years of GO criminality had to be expected. Cases falling into this category — i.e., cases which were not against the Church but which present allegations about the GO — are as follows: The Florida

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Bar v. Merrell G. Vannier,. No. 61,691, Supreme Court of Florida (Vannier was disbarred); Merrell and Francine Vannier v. Superior Court for the State of California, County of Los Angeles, No. 60 478, Supreme Court of California (Vannier lost an appeal against an extradition order); In re Charles Batdorf; United States v. Batdorf, No. 80 CV Misc (MM-188), United States District Court, Southern District of New York (Batdorf convicted); In re Grand Jury Proceedings (Mitchell Hermann, Peggy Tyson, Richard Weigand, and Duke Snider), Nos. 80-5 Misc-T-H and 80-614 CIV-T-H, Municipal District State of Florida — Tampa Division (investigation dropped); United States v. Stephen E. Poludniak. Libby Wiegand, No. 80-00143 CR (1), United States District Court for the Second District of Missouri (defendants plead guilty).

The Mayo Cases:

Mayo was removed from a senior post in 1982 due to unethical conduct and the discovery that he had altered Scientology religious practice and Scriptures. Mayo then left the Church and along with a few other ex-Scientologists established the Church of the New Civilization, dba Advanced Ability Center, in Santa Barbara, California, where he delivered his own version of Scientology religious services to ex-Scientologists. He also sought the defection of Church members in order to build his membership. Mayo then acquired copies of certain confidential advanced Scientology Scriptures which had been stolen by some of Mayo’s confederates from a Church facility in Denmark.

As a result, in 1985, Religious Technology Center, Church of Scientology of International and Church of Scientology of California sued David Mayo and others in a suit alleging RICO causes of action based on the conspiracy to acquire the secret confidential materials of the Scientology religion and use them for the economic advantage of Mayo’s organization and other related splinter groups. This litigation consists of the consolidated cases, including counter-claims, of Religious Technology Center, et al. v. Scott, et al., U.S. District Court (C.D. Dal. 1988), No. CV 85-711 JMI (Bx) and Religious Technology Center, et al. v. Wollersheim, et al., U.S. District Court (C.D. Cal. 1985) No. CV 85-7197 JMI (Bx).

Although this litigation is still ongoing, Mayo’s Advanced Ability Center has long since ceased to operate and the various individuals who had been associated with it have for the most part scattered to different areas.

The IRS has been supportive of Mayo’s efforts. Mayo became an IRS informant during the CID investigation of the

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 mid-80’s. Whereas Scientology organizations have been unable to obtain exempt status, the IRS granted exempt status to Church of the New Civilization – even though it had closed its operations and its sole remaining business was to contest this litigation. Further, much of this litigation is financed by wealthy psychiatrist Sarge Gerbode. In 1986, Gerbode formed a trust known as the “Friends of the First Amendment.” The IRS granted exempt status to this anti-Scientology fundraising entity, and Gerbode has funnelled in excess of $1.4 million dollars to fund Mayo’s litigation through that trust as charitable tax deductions for himself.

The Aznaran/Yanny Litigation:

Vicki Aznaran is the former President of Religious Technology Center and her husband, Richard, is a former Church staff member. Vicki was removed from her position by the Trustees of RTC in March 1987 as she had betrayed the trust of her position and was not acting in the best interests of the religion. By her own testimony, she first got in trouble when she sought to place an ex-GO criminal in RTC’s personnel department. Vicki and her husband then left the Church after Vicki’s removal.

Joseph Yanny served as an attorney for RTC and various churches from 1983 until November of 1987. His primary contact with the Church was with RTC and Vicki Aznaran, with whom he developed a close personal  relationship.

After Vicki’s departure, the new officers of RTC examined Yanny’s performance, determined it to be sub-standard, and learned that he was a user of LSD. He was then discharged.

Upon his termination, a billing dispute erupted between Yanny and the Church, and Yanny enlisted the aid of the Aznarans in supporting him in his billing dispute and, in exchange, acted as de facto counsel for the Aznarans in helping them prepare and file a lawsuit against his former clients. The Aznaran suit, Aznaran v. Church of Scientology of California, et al., U.S. District Court (C.D. Cal. 1988), No. CV 88-1786 JMI, was filed on April 1, 1988. Despite Vicki Aznaran’s high ecclesiastical position as the head of RTC for a number of years, her suit portrays her as a victim who didn’t know for all these years that she was really “brainwashed” and under “mind control” – plus the other stock inflammatory allegations that characterize this sort of litigation. It seeks $70,000,000 in damages and is still pending.

Shortly after the Aznaran complaint was filed, Yanny

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received from Vicki Aznaran a declaration by her as the former President of RTC supporting Yanny’s claim that a retainer he received in 1985 was “non-refundable.” Yanny used this declaration in his fee dispute over the retainer which is now in litigation along with claims against Yanny for his breach of his fiduciary duties.

Even before the Aznaran case was filed, Al Lipkin, one of the agents who conducted the IRS’s CID investigation in 1984 and 1985, was in contact with Yanny and the Aznarans. It was Lipkin who arranged for the Aznarans to be interviewed by Exempt Organizations agents from Los Angeles who were conducting an on-site review of Church records, ostensibly the final step in negotiations concerning tax exempt status for Scientology churches. The day after issuing summonses to the Aznarans to be interviewed and to produce documents relating to their lawsuit, the same agents issued document requests to Religious Technology Center asking RTC to produce Vicki Aznaran as a corporate officer of RTC.

While the allegations of the Aznaran complaint serves as the purported reason for the summonses and interview, in reality the taped interview was a contrived setting for an IRS/Aznaran diatribe against the Scientology religion and L. Ron Hubbard, with the IRS agents urging the Aznarans to press their litigation and the Aznarans urging that the tapes of the interview be furnished to Lipkin and LA IRS CID.

It was the Church’s discovery of this event which precipitated the breakdown of the earlier negotiations between the Church and the IRS.

Coincident with their interview with the IRS, the Aznaran’s personal tax problems evaporated and their private investigation business was retained by Guess? Jeans — the large jeans manufacturer that Al Lipkin befriended during an earlier IRS CID investigation (which also involved tampering with civil litigation and was the subject of a Congressional investigation).

The Aznaran suit is still pending at this time and has not yet gone to trial. Meanwhile Yanny has pursued an agenda to cause as much harm as possible to the Church by repeatedly betraying his fiduciary duties as former Church counsel by providing information concerning the Church to the Aznarans and a number of other litigants against the Church, as well as to the IRS and the FBI.

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 Other Current Litigation:

Several other suits are pending against Churches of Scientology that allege some form of tort claim. Although there are variations in the claims and different attorneys representing the plaintiffs, there is one common  denominator underlying most of these suits: the influence of the Cult Awareness Network (“CAN”).

CAN, which the IRS has recognized as exempt under section 50l (c) (3) as an educational organization, is in fact a bigoted hate group that targets and tries to destroy churches and religions. CAN’s principal activities are negative propaganda campaigns, covert dissemination of false information for purposes of subversion and acting as a referral service for deprogrammers on a fee sharing arrangement. Although complaints have been made to the IRS about CAN’s continued exempt status in light of its true activities, no action has been taken.

The Church of Scientology is presently CAN’S principal target for attack, and CAN’s favorite tactic is to spread false and defamatory information about the Church through all available means while holding itself out as an authority on the subject. When contacted by anyone with a complaint about the Church, CAN manipulates them to attack the Church either through the media or by referring them to an anti-Scientology attorney.

The majority of the suits against Churches of Scientology recently filed and presently pending, that have not been otherwise discussed above, fall into this category. None has gone to trial. The following are cases instigated or influenced by CAN either directly or as a result of one of CAN’s spread of false information: Terry Dixon v. Church of Scientology Celebrity Center of Portland, et al., No. 9010-08200 Multnomah County – Circuit Court of Oregon (in arbitration); John Finucane, David Miller, Alexander Turbyne v. Emery Wilson Corporation, et al., No. C 045216, Superior Court of the State of California for the County of Los Angeles (pending); Dorothy Fuller, an individual v. Applied Scholastics International, et al., No. 92K 11466, Municipal Court of the State of California for the County of Los Angeles (just filed); Lisa Stuart Halverson v. Church of Scientology Flag Service Organization, et al., No. 92K11186, Municipal Court for the State of California, County of Los Angeles (settled); Thomas and Carol Hutchinson v. Church of Scientology of Georgia, et al., No. D90315, Superior Court of Fulton County, State of Georgia (pending); Mark Lewandowski v. Church of Scientology of Michigan, et al., No.

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 91-421716-LZ, State of Michigan in the Oakland Circuit Court (pending); Peter and Francis Miller v. Church of Scientology et al., No. 027140, Superior Court for the State of California, County of Los Angeles (case abated re the Church and in arbitration re Sterling); Ted Patrick, et al. v. Church of Scientology of Portland, et al., State Court of Oregon for the County of Multnomah (dismissed); Dee and Glover Rowe v. Church of Scientology of Orange County, et al., No. BC 038955, Superior Court of California (pending); Frank and Joan Sanchez v. Sterling Management Systems, et al., No. 91-224-CV, 4th Judiciary District Court San Miguel County, State of New Mexico (pending); Thomas Spencer v. The Church of Scientology, et al., BC 026740, Superior Court of the State of California for the County of Los Angeles (settled); Irene Zaferes v. Church of Scientology, Superior Court of the State of California County of Los Angeles (dismissed); Jo Ann Scrivano v. Church of Scientology of New York, et al., No. 87-1277, Supreme Court of the State of New York, County of Suffolk (in discovery stage); Marissa Alimata and Richard Wolfson v. Church of Scientology of California, etc., et al., No. C 650 988, Superior Court of the State of California, County of Los Angeles (judgment entered for the Church).

Personal Injury, Medical-Related Suits:

Another category of lawsuits involve claims by individuals who have been injured on Church premises or in some way attributed responsibility to the Church for an injury or death. For example, in the Rabel case listed below, a stereo speaker accidentally fell out of the window of a Scientology mission and hit someone on the street below. The case was settled. The Arbuckle case was brought by the parents of an individual who died while a parishioner of a church of Scientology. Although his death from kidney failure was traceable to his use of steroids, the case was settled to avoid expense of litigation. Each of this group of cases was either settled or dismissed. Mira Chaikin v. Church of Scientology, L. Ron Hubbard, et al., No. 81 Civ 7525, United States District Court of the Southern District of New York; Gary and Susan Silcock v. Church of Scientology, Mission of Salt Lake, et al., No. C 86-7213, Third Judicial District Court for the Salt Lake County, Utah; Rimando, Pedro H. Irene Marshall v. The Church of Scientology of San Francisco, et al., No. C 669015, California Superior Court, County of Los Angeles; Wendy and William Rabel v. Eric Rising, Jane Doe Rising, his wife; Church of Scientology Mission of University Way, et al., King County Superior Court, Washington State; Francine Necochea, a minor child, by her guardian Ad Litem

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Cecilia Garcia v. Church of Scientology, et al., No. C 165360, California Superior Court for the County of Riverside; Roxanne Friend v. Church of Scientology International, et al., No. DC 018 003, California Superior Court, County of Los Angeles; Bruce and Lynnel Arbuckle v. Skip Pagel M.D., Church of Scientology Celebrity Center Portland, et al., No. 8907-04119, Multnomah County, Oregon Circuit Court.

A final category of lawsuits includes cases that have arisen out of financial or property disputes or transactions involving individual Scientologists, their businesses or creditors or organizations or individuals that Churches of Scientology or related organizations have had financial dealings with. Often the Church is named in such cases simply as a perceived “deep pocket” or as a tactic to try to coerce a settlement. Such cases are typically dismissed or settled. These cases are as follows: In re Dynamic Publications Inc., U.S. Bankruptcy Court in Maryland (settled); Gregory F. Henderson v. A Brilliant Film Company, et al., No. 164213, California Superior Court, County of San Joaquin (settled); Gregory F. Henderson v. Marvin Price, et al., No. 165165, California Superior Court, County of San Joaquin (settled); Peter Siegel v. Religious Technology Center, et al., CV 89-5471, United States District Court, Central District of California (pending); Steve Dunning v. Church of Scientology, et al., No. 060613, California Superior Court County of Los Angeles (dismissed with prejudice); Jeff and Arlene Dubron v. Church of Scientology International, et al., No. NCC 29267B, Superior Court of California Burbank Division (settled); Sherry Fortune v. Church of Scientology American Saint Hill Organization and Chuck Tingley, No. C 099061, Superior Court of California, County of Los Angeles (dismissed as to the Church and settled as to Tingley); Vicki Adler v. American Sun, Inc., Church of Scientology of Los Angeles, SWC 81874, Torrance Superior Court of California (settled); Benham v. Church of Scientology Celebrity Center of Dallas, No. 91-08216, 9th Judicial District Court, Dallas County (settled); Michael Burns v. The Recording Institute of Detroit, Inc., et al., No. 91-422334-CZ, Oakland County Circuit Court, State of Michigan (pending); Clay Eberle and Eberle & Jordan Law Firm v. Church of Scientology of California, No. NCC 166486, Superior Court of the State of California, County of Los Angeles in the City of Glendale (dismissed in favor of the Church); Mario Metellus v. Church of Scientology of New York, Linda Barragan, No. 01133-89, Superior Court of the State of New York, County of New York (settled).

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CONCLUSION:

The civil litigation campaign against the Church in the 1980’s was unscrupulous in its creation and execution. Using the crimes of the GO and the GO’s documents, Flynn and others have manufactured meritless claims and secured the survival of those claims against the very people and organizations which uncovered the GO’s crimes and harrassment, put an end to GO misconduct, and rid Scientology of the criminals who were responsible for the GO’s terrible legacy. In that regard, the unsettling truth is that what can correctly be characterised as the GO’s last operation, was the litigation campaign the GO criminals, Flynn and his confederates and their IRS allies launched against the people and organizations which put an end to the GO.

* * * *

10-23
CSI Prod 11-4-93
152094

Notes

  1. This document in PDF format. Text sources: gerryarmstrong.org; xenu-directory.net; archive.org

Reporter’s Daily Transcript: Scientology v. Armstrong (excerpt) (May 21, 1984)

LOS ANGELES, CALIFORNIA; MONDAY, MAY 21, 1984; 1:33 P.M.1

-o0o-

THE COURT: All right. We are back in session.

Mr. Armstrong, would you retake the stand.

GERALD ARMSTRONG,

having been previously duly sworn, resumed the stand and testified further as follows:

THE COURT: Just state your name again for the record, sir. You are still under oath.

THE WITNESS: Gerald Armstrong.

THE COURT: You may continue, Counsel.

MR. HARRIS: Thank you, Your Honor.

CROSS-EXAMINATION (Resumed)

[…]

Q Mr. Armstrong, at the time that you left the organization did you have in mind that you were not going to be declared a suppressive person? Yes or no.

A Did I have in mind that I was not going to be?

Q That is correct.

A I think I have explained that I —

Q Yes or no, Mr. Armstrong?

A I hoped that I would not be.

Q You hoped that you would not be, but you didn’t know?

A I still don’t know what the organization will do.

Q And your photo incident is what convinced you that this secret definition of enemy was being applied to you; is that correct?

A That was a big piece of it.

Q It wasn’t the declare alone that caused you to believe this; correct?

A I knew that I was under investigation by a B-1 operative by the name of Brad Ballentine [Balentine].

I knew that the organization had, first of all, declared me; that the declare itself was Black Propaganda.

2578

Once the photos were taken, I made a demand for their return. They refused.

At that point I felt indebted to the people whose photos had been stolen.

I was scared for my life. I was scared for my wife’s life. I knew what the organization was capable of.

I saw that they viewed me as an enemy and that the weight of the intelligence machinery of the organization would be brought against my wife and myself.

Notes

Assistant Guardian Intelligence GLA Daily Report to PAC Mgmt Chief (February 22, 1982)

PAC Mgmt Chief US1
cc: AG GLA2


AG I GLA3

 

DAILY REPORT

 

cc: PES USGO
cc: DG I US
cc: Org P & E Info US22 Feb 82

Dear Roberta,

RE: GERRY ARMSTRONG

DR 22 February 1982

DR (February 22, 1982)

Today we telexed SU4 via DG I US5 to get Gerry’s birthday and social security number from his payroll records. That will enable us to check other areas is the wog world to see if he can be located.

We also verified that his wife’s parents were last known to be living in Phoenix. That means that with his parents in Vancouver and hers in Phoenix, that will make it harder to verify our theory that they would be staying with one of their parents’ houses.

Also today, Debbie liased with DG I US to see how we can cheek with OVG to see if he knows anything about Gerry’s whereabouts.

It has become obvious to us that there is a lot of omitted data on Garry – that even though SU and Flag have sent us all their files on him, there still seems to be a lot missing. So tomorrow we will go through all his files to look for indicators as to where more files might be, and also-to see who might be able to give us any information about him or any misdeeds he may have committed while on staff.

That’s all. This is OK.
ML,
Brad6

Notes

  1. PAC Mgmt Chief: Pacific Management Chief.
  2. GLA: Guardians Office Los Angeles
  3. AG I: Assistant Guardian Intelligence
  4. SU: Special Unit
  5. DG I US: Deputy Guardian Intelligence US
  6. Brad: Brad Balentine

Gerry Armstrong Project (February 17, 1982)

GERRY ARMSTRONG PROJECT1

17 Feb 82

Project information: Gerry Armstrong is a blown SO member who had access to a lot of sensitive information; he is now disaffected, from what we can see. He is hiding out apparently. He knows the GO has been looking into him, so he has been laying low to avoid this. So we don’t know where he is currently and he is expecting us to approach him on a covert line. So this presents the trickiest of problems. It would undoubtedly antagonize him further if any of our investigation efforts became known to him. Yet we still need to know what he is up to.

Project purpose: TO obtain a means of predicting Armstrong’s activity in such a way that there is no possibility of backflash.

Step 1) The first thing we need to do is to locate him. Those few people who know where he is probably are on the look out for GO inquiries. However, he is going to have to get a job soon to earn a living, by law he must notify the DMV when he moves – he might do this, and there are other things like that which can be checked and which may give us his location once he starts operating in the wog world again. These can be checked once we get his birthday and social security number. These should be available from his personnel records and his treasury records. SO the steps would be: a) Telex Flag and SU to locate his personnel file and to get his
ss number from payroll records. b) Use this data to check DMV, the post office, or any other source to locate him in a way that he would not be aware of it.

Step 2) Go through his files and folders to extract the names of people who knew him and who are still well connected up and completely trustworthy. Interview these people to find out who Gerry’s close friends were and to see if he had any relatives in this area (we could then follow up to see if he might be staying with them).

Step 3) Determine which locations would be likely places that Gerry might be staying, assuming that he would be staying with friends or relatives. Check these out, either by physical surveillance or other means, to determine if he’s there.

Step 4) Note that Gerry had tried to get OVG[. OVG: Omar Garrison] to hire him as a researcher after he blew. It could be that he gave a PT2 address to OVG. This should be checked out by going through the proper people who have a line to OVG to see if this can be done or if he has it.

Step 5) Conditional: If GA has not been located at this point by doing the above steps, then review what has been done and work out further actions that could be done to locate him.

Step 6) Once he is located, determine where he is currently working. This may entail following him to see where he works.

Step 7) Once it is established where he works, see what opportunities might exist there for setting up an inquiry line from an apparent “wog” angle. He might not be expecting that at all.

Step 8) Review his files for people who had a good commline with him and who are no longer on staff, and who would be trustworthy.

Step 9) Once the list of candidates has been selected from step 8 above, do a complete check on these people (discreetly) to see what their current status, demeanor, attitude, etc., are as regards their potential willingness to help us on this cycle.

Step 10) Using standard and discreet recruitment tech, interview the trustworthy candidates to see if they can be used as a resource.

-more-

Step 11) Arrange a suitable cover story and other standard procedures, such as a plausible reason for the resource to be contacting GA, etc.

Step 12) Initiate the commline and procede from there, on that line.

Step 13) Have a PT investigation done on Scott Brown in Phoenix, Arizona.3 He was running a squirrel group there and may have some sort of group going that could be entered by a public person. This needs to be checked out either via LV GO, or simply by sending a GLA resource to Phoenix for a day or two.

Step 14) Conditional: If it looks like an entrance point can be arranged through Scott Brown in Phoenix, this will have to be separately targetted out and persued. Perhaps we could get someone connected up to him in Phoenix who then moves to LA and connects up with the Brown family or Gerry here. That might be sufficiently subtle; GA might not suspect someone from Phoenix as he knows we don’t have a GO there.

Step 15) Persue the potential existing line that might be available to us via a trusted GAS who is a writer and who is respected by Gerry. This would require some reach from Gerry, though, as he might be suspicious if this GAS made a big reach for him.

Step 16) If the product has not been achieved at this point, review the steps taken so far and debug or replan as needed.

End.

Notes

  1. This document in PDF format.
  2. PT: Present time
  3. Scott Brown was Gerry’s then brother-in-law.