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

1

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

2

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.

3-35

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

3-36

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

3-37

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.

3-38

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.

3-39

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.

3-40

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,

3-41

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

3-42

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

3-43

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.

3-44

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.

10-1
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.

10-2

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

10-3

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.

10-4

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: Exhibit III-10-U [Legal Memorandum Re: Scientology criminal proceedings in Toronto, Canada] (November 23, 1992)

Ruby & Edwardh1, 2
barristers
11 Prince Arthur Avenue
Toronto, Ontario
M5R 1B2
Telephone (416)964-9664

November 6, 1992

Monique Yingling
Attorney-at-law
888 17th Street N.W.
7th Floor
Washington, D.C.
U.S.A.

Dear Ms Yingling:

I have been asked to assist in answering a question posed by the American authorities.

QUESTION 10.e.111: THE SERVICE UNDERSTANDS THAT CRIMINAL LEGAL PROCEEDINGS ARE PENDING IN CANADA. PLEASE PROVIDE A FULL DESCRIPTION, INCLUDING THE CURRENT STATUS OF THE PROCEEDINGS.

Background

Between 1974 and 1978, a tiny handful of members of the Church of Scientology Guardian’s Office acted in violation of Church policy and doctrine by committing crimes in Canada. These crimes were designed to be kept secret from parishioners and Church staff for fear of exposure by the Church.

Upon discovery of these crimes, the Church began to investigate and disband the Guardian’s Office (“GO”). This included sending missions from CMO INT to Guardian Offices around the United States and in other countries to investigate involvement by GO staff in illegal activities and, based on the findings, to remove guilty staff from Church employ.

Thus the Guardian’s Office Canada and Guardian’s Office Toronto were investigated and there the CMO mission found that some of the GO staff had been involved in illegal activities. Actions were therefore instituted which ultimately led to their removal from staff.

While the Church was investigating and cleaning out the GO in Toronto, the Ontario

1

Provincial Police (OPP) and the Crown Law Office of the Attorney General of Ontario surreptitiously placed one undercover operative in the Church of Scientology of Toronto and one in the Guardian’s Office Canada. This undercover operation included an action taken by one of the undercover officers that was later described in police testimony as an attempt to “provoke a possibility of criminal conduct response on the part of Church of Scientology”. It was unsuccessful.

One of the police operatives, Constable John Cunha, who had posed as a Church staff member, made it known to Church staff that he had left the Church, that he had removed Church financial documents and that he was going to write a critical book on Scientology. When this produced no response, despite the fact that the Guardian’s Office was aware of this threat, Cunha made further contacts. He had provided a phone number and address of where he could be reached. In his further contact, Cunha gave more detail of the documents he had taken and threatened that he would release these documents to the police, and as a result, he having spoken already with the police, Church executives were likely to go to jail.

The police then staked out a hotel, where Cunha had made known he would be, to await an expected response from the Guardian’s Office. No response ever came, despite the police’s best efforts to precipitate criminal conduct on the part of the Guardian’s Office or Church staff.

“Q. it is your expectation, was it not, that there would be some response from the Church of Scientology?

A. Yes.

Q. Was your response the kind of criminal conduct that you were concerned about that you had explained, about break, enter and theft removal of documents, the basis of Count 3 (in the search warrant), that something of that nature would occur?

A. Yes.

Q. Nothing of that occurred, did it?

A. No.”

Cross Examination of Ciampini October 16, 1991, p.43

The most important of the police operatives, Constable Barbara Taylor, worked in an undercover capacity in the Guardian’s Office Toronto. Over the course of her tenure as an undercover officer, she regularly reported the ongoing removal of GO staff as, one by one, they were held responsible for their illegal conduct. She also reported that the policy of the Church would not countenance criminal activities and that no criminal acts must take place.

David Miscavige and other senior Scientologists voluntarily came to Canada to testify

2

during the trial even though neither they nor the organizations they worked for were parties to the case. They described in detail the ways in which the Guardian’s Office had grown separate and autonomous from the Sea  Organization. They described the dramatic events when they as Sea Organization executives found out that the GO was involved in illegal activities, and how they immediately acted to reform and ultimately disband the GO.

Despite this, preparations began to obtain the search warrant which was based upon allegations of current illegalities. This search warrant ultimately authorized the largest search and seizure in the history of Canada.

The Canada Raid

In March 1983, one hundred police officers, some armed with axes and sledge hammers, entered the premises of Church of Scientology of Toronto, the Guardian’s Office Canada and the Guardian’s Office Toronto. They seized thousands of documents – including Scientology religious books and the confidential priest-penitent confessional files of hundreds of innocent parishioners. The largest raid in the history of Canada resulted in the seizure of 2 million pieces of paper filling 950 banker’s boxes.

The Church continued its own measures to disband the GO entirely and to discover the true facts of what had occurred. In an effort to cooperate with the OPP, in March 1984, Church representatives went to the Crown Law Office and offered to help prosecute the expelled individuals who had planned and ordered the crimes. Crown Attorney Casey Hill refused the Church’s offer, as OPP Inspector Germaine’s notes reveal, saying “You’ve got no cards to play with.”

OPP Officer Ciampini solicited the help of David Mayo and Mayo’s attorney, Gary Bright to approach two of the individuals expelled by the Toronto Church, one of whom was a former GO official, and convince her to talk to Ciampini. Ciampini then used this individual to get others of the former GO officials involved in crime to also agree to join the government’s case.

Solicitor/client privileged documents taken in the raid were read by the police and used to convince these former GO officials that the “train was coming both ways“ as they showed that the Church was planning to prosecute certain of these individuals. As noted by Justice Southey in his ruling of March 26, 1992:

“Both these documents were obviously covered by solicitor and client privilege but it is apparent that they were used by the police, despite the privilege.”

With Mayo’s help, these individuals were made aware of the Church’s plan to prosecute.

3

States and his own expulsions from the Church. The OPP investigation included interviews with other potential witnesses in the United States. In a June 1983 interview with Boston attorney Michael Flynn, Ciampini proposed a criminal indictment of Religious Technology Center Trustee David Miscavige in order to obtain the cooperation of a potential witness. Mr. Miscavige was the driving force behind the disbandment of the GO. At the time of this suggestion, Ciampini was fully aware that this potential witness was trying to overthrow Mr. Miscavige who had kicked the GO criminals out of the Church.

The actual criminals were embraced by the Crown while the Church and those who were involved in the GO reform and disbandment became the target of the Crown’s case.

Involvement by the IRS and Michael Flynn

The hard-line attitude by the Crown and OPP was encouraged in no small measure by the Internal Revenue Service and by Boston Attorney, Michael Flynn.

The OPP and IRS exchanged information. During 1984, OPP officers went to Los

Angeles where they copied documents from the IRS which were brought back to Toronto. IRS CID agents Al Lipkin and John Petersell went to Toronto hoping to review the documents which had been seized in the Canada raid. At this time there existed an undertaking between Crown counsel and counsel for the Church that seized documents would not be disclosed to agencies outside those prosecuting in Canada itself.

The Crown Law Office, the OPP and the IRS circumvented this agreement by giving the IRS access to a 2 volume report developed from a review of the seized documents which itself contained extracts from the documents subject to the undertaking. The forensic accountant retained by the Crown to assist in the prosecution aided the IRS in their review of this information. He later testified that he could not remember if the IRS agents also looked at the extracts of the documents.

“A. There are a number of things included in the report. There is a synopsis, summary of our finding. There are a number of sections in which detailed discussions of our findings are elaborated upon. Those sections contain essentially two things – one being an overview of that specific area, and secondly extracts from Scientology documents in support of that overview. Those overviews were combined and formed the basis for our summary conclusions.

Q. When you met with these gentlemen, did they actually see this document, or did you just read it to them, or portions of it, I take it?

A. We were in the same room. They would have seen it in front of me.

Q. Did they read from it, or did you refer to it in answering questions?

A. I definitely referred to it. I don’t remember if they read it. Certainly, if I was requested to turn it over to them, you know, I would have…

4

Q. There was nothing wrong, so far as you were aware, in them seeing the actual documents during this meeting?

A. No. I really had no involvement with whether or not documents could or could not be disclosed to them. I was there to answer questions.

Q. And I take it from time to time in answering the questions you would turn to a page in the brief and read from it?

A. That’s correct.”

Cross Examination of Joe Zier January 16, 1992, pp.56-58

According to a diary kept by Ciampini, Lipkin and Petersell briefed the OPP on the IRS CID investigation and offered to assist the OPP in locating L. Ron Hubbard and David Miscavige when the OPP brought charges against them.

Another entry to Ciampini’s diary, in October 1984, when the Crown was preparing its formal charges against the Church of Scientology of Toronto and Church members, stated that Michael Flynn had called to say that he wanted to know when the OPP charges were to be laid “because he has 30 – 35 people inside [the Church] who are immediately going to take physical control of the Church of Scientology California and then ASI [Author Services. Inc.] – then file suit in court – turn over all documents to IRS CID for their investigation.” He further stated his hope that the OPP would move soon and that the “momentum of [the OPP’s] charges will cause Scientology to collapse.”

Sergeant Ciampini was questioned at trial about his connection to those seeking to take over the Church.

“Q. And did you know his clients were trying to take physical control, to take over the Church of Scientology in the United States and around the world?

A. I heard, as you can see from my notes here, that it was people within the organization that felt that they wanted to take over the organization. Certainly I had no control over that.

Q. But you knew that they were doing that?

A. I knew it as of October 9, 1984, yes.”

Cross Examination of Ciampini January 10, 1992. p.111

“Q. If I read this note correctly that you made, the takeover of the Church of Scientology of California and ASI is going to follow immediately upon your arrest, your laying of charges. Isn’t that so?

A. That’s what he is saying, yes.

Q. Well, surely you said to him, “Listen, you can’t tie this takeover of these church institutions to my laying of charges in Canada. You must have nothing to do with this.”

5

A. I had nothing to do with this.

Q. You must have told him you must have nothing to do with this. Surely you said, ‘Don’t involve me in this.’

A. I gave him no instructions.

Q. Am I wrong in suggesting to you that the sense of this now is that you were quite content to let this all happen?

A. I had no control over it, Mr. Ruby.”

Cross Examination of Ciampini January 10, 1992, p.117

This testimony above corroborates the plan exposed in late 1984 in a police authorized video tape of IRS CID operative Gerry Armstrong in which Armstrong planned to plant phony documents in the Church that could be seized in an IRS CID raid designed to topple the Church hierarchy so that Armstrong and Flynn could seize control.

On December 12, 1984 (6 days before charges were laid), OPP Inspector Ormsby wrote in his diary that he returned a call from Lipkin, and that Lipkin was interested in doing a joint investigation with Revenue Canada. Lipkin wanted to be notified if charges were laid and if they could have access to the financial records.

There were three allegations made against the Church in the search warrant that authorized the Toronto raid: tax fraud, consumer fraud, and conspiracy to commit indictable offenses.

The Charges

Contrary to the assertions set out in the Information to the Search Warrant, no charges were ever laid in relation to tax fraud, consumer fraud or indeed conspiracy.

In December 1984, 18 months after the raid, charges were brought by the Ontario Provincial Police against the Church of Scientology of Toronto and 19 named individuals. The charges dealt with theft of confidential information and property, breach of trust, and possession of stolen information and property, alleging the removal of information and documents in government and private agency files by GO operatives for use by the Guardian’s Office. All of these incidents were alleged to have occurred between 1973 and 1983.

The Guardian’s Office executives who were in charge at the time of the alleged thefts and who actually directed the individuals involved were given Immunity by the government (Crown) so they could testify against their former subordinates. These government witnesses were all who had been removed from GO staff for their activities, and some had been excommunicated from Scientology – all well before the raid and before the Church had any knowledge of the OPP investigation or infiltrators.

6

The lower level individuals who had obeyed the orders of these government witnesses were charged along with the Toronto Church corporation. By this time, these individuals who were charged had already performed hundreds of hours of independent community service at the direction of the Church to make amends to society for their wrong-doing. This was the first time, anywhere in the free world, that a church was criminally prosecuted by the state for the wrongdoing of a tiny handful of its former members.

During the preliminary hearing, on June 15, 1988, a judge in the Ontario Provincial Court dismissed 4 counts of theft of information, thereby leaving only 15 outstanding charges. On September 21, 1990, this same judge dismissed all counts of possession of stolen property leaving 7 counts of theft and 5 counts of breach of trust, to proceed to trial.

Raid Declared Illegal

On December 2, 1991, Judge Southey of the Ontario Court of Justice, who presided over the trial, ruled that the Church’s constitutional right to be free from unreasonable search and seizure had been violated. The judge further found that the OPP officers “conducting the search did not act in good faith”. To remedy these violations, he ordered all the documents seized by the OPP to be excluded from trial.

On January 27, 1992, the OPP returned the bulk of the 2 million seized documents to the Church, save those kept by the Crown for possible appeal purposes. On March 26, 1992, the judge ruled that the testimony of the ex-GO officials, who had been granted immunity, be excluded in relation to all counts of theft.

He noted,

“The breach (of the Charter) was a serious one. The loss of the documents in the illegal seizure caused substantial hardship to the Church.”

Ruling by Southey, J. March 26, 1992, p.20

The Trial

Almost a decade after the raid and more than 15 years after the alleged acts that were the subject of the case, a trial on 5 counts of breach of trust commenced in the Ontario Court of Justice on April 23, 1992, against the Church of Scientology of Toronto and 5 individuals.

On June 26, 1992, the Church and 2 individuals were acquitted on 3 counts of breach of trust. The Church and 3 individuals were convicted on 2 counts of breach of trust. In a

7

separate jury trial held on June, 25lune 25. 1992, the Church and 7 named individuals were acquitted on all 7 counts of theft of documents.

On September 10, 1992, the Church was sentenced to pay a fine of $250,000 Canadian total for the 2 counts on which it was convicted. The individuals were fined, but no jail terms or probation or community service was imposed: the court recognized that they had already done thousands of hours of community service to society.

Janice Wheeler was fined $2,000 for breach of trust in respect to the Attorney General’s Office of Ontario; Don Whitmore was fined $2,000 for a breach of trust in respect to the Royal Canadian Mounted Police; Jacqui Matz was fined a total of $5,000 for a breach of trust in respect to the Attorney General’s Office of Ontario and the Ontario Provincial Police.

The fact that Scientology is a religion was not questioned by the Crown during this trial. This was the first time in Canada that a recognized non-profit corporation was charged respecting the actions of individuals under what, in my opinion, was an unconstitutional application of the law. Thus the convictions of the Church of Scientology of Toronto are presently under appeal and the payment of the fine has been ordered stayed by the Court of Appeal for Ontario.

The Ontario Court of Justice did not dispute:

(1) that Church doctrines never condoned these criminal acts;
(2) that all criminal activity within the Guardian’s Office ceased in 1978, years prior to the raid, and that all those responsible were removed from positions of
(3) that none of the present directors of the Church were directors at the time of the offenses; and
(4) that vast numbers of the Church’s present parishioners were not even parishioners then.

The Court acknowledged that the Guardian’s Office itself was disbanded in 1983 by senior Church management who had discovered what these wrongdoers had done as described by David Miscavige and other senior Scientologists. And indeed, in dealing with sentence, Justice Southey concluded that specific deterrence respecting the Church was not needed.

In his Charge to the Jury, Justice Southey said:

“There is no evidence that the Church of Scientology authorized the Guardian’s Office in Toronto, either expressly or by implication, to participate in the unlawful plant operations…”

8

He had earlier ruled on August 2, 1991:

“there is no suggestion that the stealing or documents or the breaches or trust by government employees, if they occurred, were acts condoned by the religious doctrines of the Church. Indeed, quite the reverse, the Church has vigorously repudiated the*conduct of persons who have engaged in such acts and has expelled such persons from its organization.”

The raid and the prosecution must have involved years of court time and tens of thousands of man-hours on the part of the Attorney General’s Office of Ontario and the Ontario Provincial Police and may have cost over 15 million dollars of taxpayer’s money. All of this time and expense was to prosecute a Church which had long since cleaned its own house.

The unprecedented conviction of the Church of Scientology of Toronto on theories of vicarious criminal liability is under appeal.

Yours very truly,

Clayton C. Ruby

/mm

9

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.

10-1

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.

10-2

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

10-3

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.

10-4

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.

10-5

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.

*   *   *   *   *

10-6
152077

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

10-7
CSI Prod 11-4-93
152078

 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

10-8
CSI Prod 11-4-93
152079

 

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

10-9
CSI Prod 11-4-93
152080

 

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.

10-10
CSI Prod 11-4-93
152081

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

10-11
CSI Prod 11-4-93
152082

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.

10-12
CSI Prod 11-4-93
152083

 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.

10-13
CSI Prod 11-4-93
152084

 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

10-14
CSI Prod 11-4-93
152085

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

10-15
CSI Prod 11-4-93
152086

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

10-16
CSI Prod 11-4-93
152087

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

10-17
CSI Prod 11-4-93
152088

 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

10-18
CSI Prod 11-4-93
152089

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.

10-19
CSI Prod 11-4-93
152090

 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.

10-20
CSI Prod 11-4-93
152091

 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

10-21
CSI Prod 11-4-93
152092

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).

10-22
CSI Prod 11-4-93
152093

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

Declaration of Richard N. Aznaran (January 15, 1989)

I, Richard N. Aznaran, hereby declare and state:1

1. I am over 18 years of age and a resident of the State of Texas. I have personal knowledge of the facts set forth herein and, if called as a witness, I could and would competently testify thereto.

2. There are many factors surrounding the releases attached to defendants Motion for Summary Judgement, attached as Exhibits A & B which are false and/or misleading.

A. The first point is that I do not believe these are the papers which we signed when we left the cult in 1987. We were forced to sign quite a few different papers before being allowed to leave. At the time, we had asked for copies of all of the papers we had signed but were not allowed to have copies of the releases.

B. One of the conditions of being allowed to leave without being declared “fair game”1 was that we report to Mark Rathbun

_____________________
1When the cult declares a person a Suppressive Person he automatically becomes Fair Game. Per the cult’s founder and existing policy when a person is Fair Game he may be lied to, cheated, stolen from and destroyed with no protection from the cults ethics codes. If the person is considered a threat in the eyes of the cult, then scientologists and their agents are encouraged or even paid to do so. This has been documented on many occasions and I am personally familiar with it.

1

on a regular basis. We did do this for a while and repeatedly asked for copies of these releases. We were put off with various excuses on each occasion. We never did obtain a copy of the releases. It is clear to my now that this was so that the cult’s “dirty tricks unit” could change the releases to fit their claims and then supply them as “evidence” if and when they felt they needed them. They didn’t dare supply us with doctored copies which we did not sign as they knew that this alienate us and they didn’t want to supply us with actual copies as this would preclude them from making changes later.

3. At the time that these releases were signed both my wife and myself had been receiving intensive “security checking”. This “security checking” was conducted by Ray Mithoff. Ray Mithoff was at that time (and still is to the best of my knowledge) the highest trained and most senior security checker in all of scientology. He is so senior in fact that normally all he ever does is oversee others doing it. There were two reasons why he was used. The first was obviously because of the intimidation factor he would have and the second is not so obvious.

A. Part of our security checking was so that we could be interrogated on how much we knew and so that the potential

2

threat of our leaving could be analyzed by David Miscavige. Miscavige trusts few people and lives in constant fear that his crimes will become public and land him in jail as it has the cult’s earlier leaders. Mithoff is the only security checker Miscavige was willing to trust. This was the second reason Mithoff was used. 2

B. In retrospect, it is easy to see that this security checking was done to soften us up and remind us of what powers the cult could bring to bear on us should we refuse to cooperate fully. Their tactics obviously worked because at the time, we were in terrible fear that we would not be allowed to leave.

4. We were not allowed to seek legal counsel at the time that we signed these releases. Two of the cults’ attorneys were brought out to further intimidate us. We were told that we could ask them questions if we had any. It was made clear that
________________

2 Mithoff was normally used in such cases as he is trusted and considered a loyal minion by David Miscavige. David Miscavige is the senior most of the founders “messengers” and took control upon Hubbard’s demise. It was Mithoff under the alias of “George Jones” who personally oversaw Michael Meisner’s security checking after the cult had kidnapped him. Meisner was the cult’s agent who had infiltrated various government agencies and stolen documents under the direct control of Hubbard, Hubbard’s wife and the rest of the cult’s management. It was Meisner (having again escaped from the cult and sought protection from the Justice Department) whose evidence lead to the 1977 raids on the cults Los Angeles and D.C. offices by the FBI. I know of Mithoff’s involvement because he spoke to me personally about it displaying great pride in his activities.

3

we could definitely not seek other counsel.

5. It had been my understanding through earlier contacts with scientology’s dirty tricks unit known as the Guardian’s Office and later the Office of Special Affairs that these releases had no legal binding whatsoever. In my early years as a staff member I had seen the various policies issued by the Guardian’s Office concerning releases. Releases were to be signed by every public person and staff before and after every single service they received. The idea being that the person was to be convinced that he had no recourse for lousy service and false promises. Guardian’s Office personnel had told me repeatedly that they did not hold water and were merely a deterrent. This was later confirmed by cult attorney John Peterson.

6. To me the intention behind the releases themselves appeared unlawful. Although not trained in law, it was obvious to me that the intent included the obstruction of justice. Part of our security checking was to ensure that we had no plans to go to any government agencies to give them evidence of crimes being committed by cultists or their agents. It was stressed at the time of the signing of the releases that if we spoke to government agents about any “confidential information” we had concerning the cult that we would be in violation of our agreements and that we would be sued. Additionally we were to

4

withhold information and avoid testimony in any civil litigation where the truth may be harmful to the cult or aid someone else seeking justice. With the purpose of the releases including the withholding of information from lawful authorities I certainly did not feel that they could possibly be legal or binding.

7. The conditions surrounding the sale of our horse and the loan from the cult need to be made perfectly clear. Defense attorneys constantly try to twist this into some evidence of philanthropy on the cult’s part. This just isn’t the case at all.

A. David Miscavige came to visit us in our motel room a few days before we were allowed to leave. Miscavige asked us what our plans were. We told Miscavige that we didn’t have any specific plans but that since I knew some people in the area (southern California) I would probably work something out. Miscavige made it clear that he did not want us to stay in southern California but wanted us to go to Texas. He did not want us connecting up with any of our friends in southern California be they current or former scientologists. We told him that we had limited funds and would have to stay in California long enough to sell our horse and make a little money so that we could travel. Miscavige reiterated his objection to us staying in California and stated that we would have to work it out to go back to Texas.

5

B. The next day Mark Rathbun suggested that the cult buy the horse from us and that they loan us some money so that we could leave right away and go to Texas. Rathbun stated that this had been Miscavige’s idea.

C. This loan and purchase of the horse had nothing to do with the releases.

8. There had been a fire at one of the ranches I had worked at and all of the belongings of four people had been destroyed in the fire. I was one of them. A claim was being negotiated with the insurance company. Rather than have me wait for the insurance claim to settle I was given $1,040.90 which was the value of the goods destroyed in the fire. This is money which I understood was going to be later reimbursed by the insurance company.

9. I received the pay due to me according to their rules but this was just for the previous pay period. I never received any compensation or wages for many hundreds of hours of work I had performed and been forbidden to include on my time card during the previous thirteen months or so while I worked for the Norman Starkey, Trustee of the Estate of L. Ron Hubbard. This was not religious work and the estate was not a non-profit entity. I was supposed to be receiving minimum wage.

6

10. The cult purports that my wife Vicki had overall responsibility for RTC’s legal matters and litigation and such. This is only partly true. David Miscavige, the Chairman of the Board at Author’s Services, Inc.3 had final say over what did or did not occur and constantly issued streams of orders concerning everything from personnel transfers to finances. Miscavige either directly or indirectly oversaw all major decisions and even minor ones if it were his whim.

11. While it is true that Vicki (and even myself on occasion) did assign others to the Rehabilitation Project Force, it is not mentioned that there is a basic tenet in scientology’s ethics policies which state that if you fail to assign someone to the RPF and your boss feels you should have then you can be assigned to the RPF with them. In other words it is enforced from the top down. Miscavige as the senior person often assigned people for no other reason that whim. I saw him do this to others and he threatened me on several occasions. He considered such activities his “management style”.

________________

3Author Services, Inc (ASI) was a corporation set up by Miscavige, Starkey and Lyman Spurlock. It’s purpose was to manage Hubbard’s money and oversee the cults’s finances and ensure that Hubbard was getting his “cut”. I was briefed on this by Miscavige himself when ASI was first being set up.

7

12. It is stated that after Vicki escaped from the desert camp where she was being held that she was able to travel freely on her own. This is not true. We were under constant surveillance by the cults’ security personnel and all of our belongings were being held to ensure our cooperation. We feigned cooperation to prevent being declared suppressive persons and opening ourselves up to “fair game”.

13. It is stated that the cult paid three hundred dollars more for our horse than I had paid for it. This is false and in fact they paid three hundred dollars less than I had paid for it.

14. While I am not a psychologist nor am I a psychiatrist, it is clear to me now that both Vicki and I had previously been brainwashed by the scientology cult. This process began in 1972, continued through 1973 when we were forced to give all of our worldly possessions to the cult leaders and has only recently ended since we were able to escape their influence. At the time we left in 1987 we were heavily under their influence and even to this day my wife has nightmares where she is still being held captive by the cult.

A. It was only once we started to become “unbrainwashed” that we began to realize the extent of suffering, misery, fear and intimidation that we were put through.

8

15. Claims are being made to the effect that due to the cult’s philanthropic efforts on our behalf we left as happy little cultists. Nothing could be farther from the truth. At the time of my wife’s escape from Happy Valley I was called in by Miscavige and Mithoff and interrogated until four o’clock in the morning in an attempt to get me to break up with her. When this failed I was called upon to try to get her back. I pretended to do this and even went so far as to encourage Jesse Prince and David Bush (the two men who escaped with Vicki) to go back. But during this whole time we planned to go along with whatever the cultists wanted in order to be allowed to leave without being declared “fair game”. We lived in constant apprehension and fear, not daring to believe that we could pull it off but praying against hope that we could. By the time we had successfully made it through our security interrogations we would have signed anything to be allowed to leave.

16. Scientology purports itself to be a religion. In the early 1970’s when I first became involved with scientology, the cultists were quite open about the fact that they called themselves a religion only for tax purposes. It was only later, in the mid 70’s that the Guardians Office forced the “churches” and franchises to conform to “religious image programs”. These programs covered everything from hanging up crosses to having staff “ordained” and having get togethers on Sundays and calling

9

them Sunday services. It would never stay in though because it was obviously bogus. Finally the threats became great enough to force it in. Hubbard himself, in earlier unedited versions of his taped lecture called “The Road to Truth” stated that there was no god but not to let the “wogs” (non-scientologists) know or they would never join. When scientology was being set up in Mexico it was decided not to make the claims of being a religion due to the fact that it would effect their ability to make money. The same thing goes for a couple of other countries. When the decision was whether to be a religion or make money, make money won out. I know of all of these points from my own personal experience.

17. I have been informed by my former attorney that although we have made discovery requests, Defendants have failed and refused to comply with even the simplest requests. During this time they have barraged us with burdensome and costly demands exceeding all reason. Additional evidence is currently in the hands of Defendants but withheld from Plaintiffs. This evidence is favorable to Plaintiffs’ opposition to Defendants Motion for Summary Judgement.

I declare under the penalties of perjury under the laws of the United States of America that the foregoing is true and correct.

10

Executed this 15th day of January 1989, at Dallas, TX.

[Signed]
Richard N. Aznaran

Declaration of Vicki J. Aznaran (September 23, 1988)

I, Vicki J. Aznaran declare as follows:1

1. I am one of the plaintiffs in the within action.

2. I was a member of the Scientology Cult from November of 1973 until April, 1987.

3. From 1975 until April 1987, I was a staff member of various organizations controlled by the Scientology Cult. Among those staff positions was the presidency of Religious Technology Center, a California corporation. In my capacity as president, I became familiar with the interlocking corporate structures of the various organizations controlled by the Scientology cult.

4. I also became familiar with the policy known as “fair game.” “Fair game” is a policy whereby those who are declared to be “suppressive” persons are subject to any form of intimidation, harassment, or oppression by any Scientologist.

5. I have seen a policy letter written by L. Ron Hubbard, the founder of Scientology, which ordered that the words “fair game” no longer be used because of negative public relations implications, but the policy letter continues to indicate that “suppressive” persons are to be treated in the same way as previously. I have witnessed the application of “fair game” over the years of my membership in the cult and in positions of responsibility within the Scientology Cult, and I know that it was still applied to “enemies” of the cult even after its public disavowal.

6. Even after leaving the Scientology Cult in April of 1987, my husband Richard and I tried very hard to avoid becoming

1

“fair game.” We were told that we had to maintain contact with the Scientology organizations and that Mark Rathbun would be contacting us regularly. Mr. Rathbun did contact us on a regular basis and we contacted him according to his instructions.

7. Even as late as November or December of 1987, my husband and I were contacted by Mr. Rathbun and told not to talk to reporters from the Los Angeles Times. Mr. Rathbun made it clear that we would be declared “suppressives” if we did not continue to cooperate.

8. It was not until early 1988, that I became determined to resist the efforts of the Scientology Cult to have me lie about matters which had occurred during my tenure as a member of the staff of Religious Technology Center.

9. In February 1987, I was working for the Scientology Cult at Gilman Hot Springs. In the latter part of that month, I was forced to go to the Rehabilitation Project Force at “Happy Valley.” I was rousted out of bed early in the morning after having worked late into the night before, and I was ordered to go to my office. David Miscavige was there along with Norman Starkey, Greg Wilhere, Ray Mithoff, and several other uniformed men. Mr. Miscavige ordered me to write an order assigning myself to the Rehabilitation Project Force. Mr. Miscavige told me that if I didn’t he would write it and would fill it full of libelous statements about me. He said that because of his high position within the cult, his statements would be believed, and my standing and reputation within Scientology would be destroyed.

10. I was kept up all day and late into the night, being interrogated by one person after another. Because of the

2

presence of several persons, I felt that any attempt to escape would be futile. I was watched at all times during the interrogation. There is an eight-foot fence topped by barbed wire surrounding the compound where I was being held, with guards posted at the gates.

11. After my interrogation, I was taken into a car with three other people who were to guard me, and I was transported to “Happy Valley.” “Happy Valley” is a piece of property owned by Scientology. It is about 10 miles from the Gilman Hot Springs Cult Headquarters. It is located just past the Soboba Indian Reservation about three miles down a dirt road into the rocky foothills. It is rocky semi-desert country and is very isolated. I felt that any attempt to escape from “Happy Valley” would be futile.

12. During my stay at the Rehabilitation Project Force at “Happy Valley,” I slept in a tin shed which had no air conditioning or heating. The shed had a bare wood floor and it was terribly cold at night and miserably hot during the day. The first night that I was there, I was forced to sleep on the floor, as there was no bunk for me. It was a small room with 12 to 14 women who slept in it.

13. During my stay at the Rehabilitation Project Force, I was required to do hard physical labor from 6:30 a.m. until 5:30 p.m. The meals consisted of either beans and rice or leftovers from the food served to other staff working at the Rehabilitation Project Force. I was not allowed to walk, but rather required to run everywhere I went in the compound.

14. I was guarded the whole time I was in the

3

Rehabilitation Project Force. I was not allowed to go to the restroom alone. I was not allowed to shower alone. At night I was locked in a room that had heavy bunk beds with people sleeping in them and which were pulled in front of the doors. I repeatedly requested to be able to contact my husband by phone and letter, and this was denied. During March, 1987 I asked David Miscavige that I be put in touch with my husband. Mr. Miscavige tried to make me believe that my husband did not want to communicate with me and had “written me off.” As a result of these statements, I felt isolated from my husband and a sense of despair about ever seeing him again or continuing with our relationship.

15. On March 31, 1987 two of the men in the Rehabilitation Project Force whom I knew, Jesse Prince and David Bush, escaped from the Rehabilitation Project Force. They ran out of the front gate and were pursued down the road toward the Indian reservation by guards and two others. I was later told that two men in a pickup truck drove by and slowed down. They asked Mr. Prince and Mr. Bush if they would like a ride. They climbed in the back. They were transported in the pickup truck into town to a rental car place where Mr. Prince rented a car. They then drove back to Happy Valley to get me.

16. At that time I was lying under a tree on a hill, as I was sick with a fever and had been told that I could not see a doctor until Mr. Miscavige gave his permission. I had been sick for a week. The tin building where we slept was too hot during the day to sleep in and that was why I was sent to lie down under a tree.

17. Mr. Prince and Mr. Bush opened the front gate and

4

drove up close to where I was under the tree. Another person at the Rehabilitation Project Force named Chris Byrnes was with me to keep me from going with them. There were at least four security guards equipped with radios and motorcycles, attempting to maneuver into a position where they could prevent us from leaving the compound. As I got up to leave, Mr. Byrnes grabbed my arm in an attempt to keep me from leaving. I pulled loose and ran to the car and got in the back seat. We then drove out the front gate, which Mr. Prince had left open when he drove into the compound.

18. When I left “Happy Valley,” I did not know where my husband was located. When one spouse leaves Scientology, it is the practice to get the other spouse to divorce them. I knew that Mr. Miscavige had been telling me that my husband “probably didn’t care about me or want to hear from me.” I knew that Mr. Miscavige would try to get Richard to leave me and would tell Richard that I was insane and that Richard needed to divorce me. Richard had been working in various Scientology locations since December, 1985. Sometimes I would know what locations he was in and sometimes I would not.

19. After leaving “Happy Valley,” Mr. Bush, Mr. Prince, and I drove around for a half hour or so and then had dinner in San Jacinto. The three of us were all concerned about our spouses, as we knew they would be told that we had “turned, and that they should make us come back or “disconnect” (a Scientology term which means to sever all relationships with a person). After we ate, Mr. Prince took me to a store to buy some clothing, as all I had was the worn out and ragged clothes that I was wearing.

20. I then got a motel room in Hemet, California. Mr.

5

Bush and Mr. Prince got a room in another motel down the street. Mr. Prince informed me that he was going to call Mr. Miscavige to demand that his and Mr. Bush’s wife be brought to them. I told Mr. Prince not to tell them where I was and to tell them that I would not discuss anything until I heard from my husband and that Mr. Miscavige was to let Mr. Prince know how and when I could talk to him.

21. Mr. Prince returned in a few hours relating that he had called the Scientologists and they had brought his and Mr. Bush’s wife out to see them. He told me that their wives told them they would divorce Mr. Prince and Mr. Bush if they did not return to the Rehabilitation Project Force. He said the wives then returned to Gilman Hot Springs and left Mr. Prince and Mr. Bush at the motel.

22. Mr. Prince told me the Scientologists had told him they would have my husband get in touch with me right away if I would come to the motel where Mr. Prince and Mr. Bush were staying. I moved to that motel to a room which they had reserved for me. I slept there that night and waited for my husband to arrive.

23. My husband did not arrive. So the next morning I called the two ranches where I thought he might be (San Luis Obispo and Newberry Springs). Both places informed me that Richard was not there and they did not know where he was.

24. Shortly after making that call, I looked out the window of the motel room and saw persons whom I recognized as Scientology security guards wearing civilian clothes. They were posted at various spots around the motel. Seeing this, I felt

6

that it was impossible for me to escape. Besides, I did not want to leave until I had made contact with my husband.

25. A little before noon on April 1, my husband arrived. He informed me that he had been up most of the night with Mr. Miscavige and others, telling him that I had gone insane and he should divorce me if he could not force me to return. We discussed our situation and agreed that we would cooperate with all their security checking and signing of documents so that we could get away without being declared fair game. From my experience as a staff member with the Scientology organizations, I knew that they would not let us leave until such time as we complied with their various requirements.

26. At this time, the Scientologists had all of our worldly possessions, including a pickup truck, a horse, and two dogs, as well as clothing and other personal effects.

27. On approximately April 2nd or 3rd, my husband took me to see Dr. Megan Shields (a doctor whom I knew to be associated with Scientology) in Los Angeles. Dr. Shields prescribed some antibiotics for my illness. We were followed by someone from Scientology when we traveled to Los Angeles and when we returned. At this time, Scientology still held our personal possessions, including the dogs and horse.

28. The process of “security checking” continued daily. It went on for several hours a day. During this time, we were submitted to intensive interrogation and required to be connected to the “E-Meter,” a device which purportedly measures a person’s truthfulness. The interrogation continued until April 8, 1987.

29. At the completion of the interrogation,

7

Mr. Miscavige came to the motel where we were being interrogated, along with Mr. Mithoff and Mr. Rathbun. Mr. Miscavige asked us regarding our plans and how much money we had. My husband told Mr. Miscavige that we had a couple of thousand dollars. Mr. Miscavige stated that he was concerned we might stay in California where we would be easily available to subpoenas in litigation in which Scientology was involved, or where we would be susceptible to contact by “enemies” of Scientology. Mr. Miscavige asked how much money it would take for us to move back to Texas and get started in some type of business. My husband stated he wasn’t sure since it had been 15 years since he had lived as a “normal” person, but he thought it would take about $5,000. He stated that we would manage somehow on the money we had (our main concern was getting away). Mr. Miscavige offered to loan us $20,000 if we would go back to Texas.

30. On April 9, 1987 Mr. Rathbun and Mr. Mithoff returned with a notary public and two attorneys, Mr. Larry Heller and Mr. John Peterson. We were required to sign a stack of documents. From my previous experience with Scientology, I knew they were all the usual “standard” waivers, as no one is allowed to leave the cult without signing them. Mr. Peterson and Mr. Heller informed us that we could “consult” with him if we wished to do so concerning the documents we were signing. I knew that these attorneys had represented Scientology organizations and that there was no way they would advise us regarding our best interests.

31. The last document to be signed was a loan agreement for $20,000. Once we signed that, we were given a check for

8

$20,000. We were then allowed to go downstairs to the parking lot where a security guard had transported our belongings. Mr. Miscavige had informed us the night before that since we had no money, he would have Scientology buy our horse for $1,500.00 so that we would be able to leave the state “right away” rather than wait around and try to sell the horse. We did not have the money to move the horse to Texas. At this point, we got our two dogs back and our belongings, and we left for Texas.

32. In 1981, when I was in the “U.S. Guardian’s Office” and had become familiar with the documents that had been seized by the F.B.I. from the Scientology Cult in 1977, I became aware that Scientology was capable of physical violence. I had heard stories of it before, but had no first-hand knowledge. Once I saw these documents (containing, among other things, evidence of operations done on Paulette Cooper, Gabe Cazares, and others), I knew that the end of “protecting Scientology” would justify any means.

33. In 1982, I witnessed David Miscavige (with a large male security guard staff member there to back him up) physically attack three people who were incarcerated at Gilman Hot Springs. Mr. Miscavige made them stand there while he hit them in the face.

Mr. Miscavige told me on more than one occasion how he had physically attacked a female who was a fellow “Commodore’s Messenger” in 1981. He said he beat her up and threw her off post. On another occasion, Mr. Miscavige called me out of his office. He had a revolver in his hand, and stated he was very angry with the “Golden Era Musicians,” as they had not handled some of the music on an album properly. He had a copy of the album cover in his hand. He spread open the album cover to show

9

the pictures of the musicians. He said he would like to be able to shoot the musicians, but could not. So instead he was going to put a bullet in their heads in the picture. He then proceeded to shoot the picture, of each of them in the head. On another occasion, Mr. Miscavige expressed fantasies about shooting Michael Flynn, an attorney who had claims against Scientology, with his rifle.

34. The first time Mr. Miscavige told me he was going to “blow my head off,” I had walked into his office by mistake. This was at Gilman Hot Springs, where I had just arrived to become part of the staff of Religious Technology Center. I was very shocked and did not know how to take it. The second time he told me he was going to blow my head off was when he thought I had sent up an unfavorable report on his wife and upset her. The last time he made such a statement was when he sent me to the rehabilitation Project Force. Even though he was not aiming the gun at my head when he said it, from the prior incidents that I had witnessed and the prior statements that he had made, I felt he was capable of, and indeed obsessed with, committing acts of physical violence against others.

35. In late 1981, L. Ron Hubbard sent down an order that was several pages long, setting forth how he wanted the corporate structure of Scientology re-arranged due to legal threats from criminal, civil, and IRS litigation. Prior to this time, the mother church and the corporation that held the majority of the Scientology assets was Church of Scientology of California (CSC). CSC also held the Guardian’s Office. CSC was at that time named in many civil lawsuits as the defendant. Hubbard’s strategy

10

was to reorganize this corporate set-up and create a new corporation to be the mother church. This corporation was created, and it was named Church of Scientology International. CSC was stripped of all assets and moved to a small office across the street from the Cedars of Lebanon complex. The majority of the cash was placed in overseas trusts in order to avoid the IRS. The people who controlled these trusts were Mr. Miscavige and Mr. Spurlock. The money was set up to flow from the various churches in the U.S. and elsewhere to these trusts. The theory for this, as I understood it from Mr. Spurlock, was that the money was being held in trust for Scientology parishioners. While I did not personally work on setting up the corporate structures or money flows, I was privy to the overall picture of the corporate reorganization of Scientology organizations in my capacity as President of Religious Technology Center and Guardian Office Missionaire.

36. In 1982, my husband Richard was sent to the Rehabilitation Project Force in Los Angeles. At that time I was working in Gilman Hot Springs. These are about 70 miles apart. During this period of time I had no time off and had to work every day, all day, and many times, all day and all night. Mr. Miscavige was my senior. He told me he did not want me going to see Richard, as he was supposed to be isolated. At that time there was another person at Gilman Hot Springs whose wife was in the Rehabilitation Project Force in Los Angeles. He was told not to see her either. He secretly went to see her one night and was caught. Because of this, he was stripped of his status as a “Commodores Messenger.” His wife was then assigned to an even

11

more intense level of rehabilitation until she agreed to divorce him, and he was then declared a “suppressive person.”

37. During this period I would drive to Los Angeles during the middle of the night once a week when Mr. Miscavige would be away from Gilman Hot Springs. I would return to Gilman Hot Springs in time to go to work the next morning so no one knew that I was leaving. I knew from seeing what had happened to the other person, that a similar fate awaited me if I was caught.

38. During the period from December, 1985 to April, 1987, I had only limited contact with my husband. In December, 1985 he was sent away. From that time through the middle of January, 1986 I had no contact whatsoever with him and did not know where he was.

39. For the period from mid-January, 1986 through April, 1987 I had occasional contact with my husband. Even during that time, the contact was not as frequent as we wanted. In addition to the lack of frequency, I was never sure of his location and had limited opportunities to have both physical contact with him and opportunities for intimate conversational exchanges where we could renew and sustain our relationship as husband and wife.

40. Even after we were physically reunited, on or about April 1, 1987, we were subjected to long periods of interrogation by members of the Scientology Cult. In the confined circumstances of this interrogation, I felt that we could not have the kind of closeness and intimacy that would give me the support and comfort that I needed and wanted from my husband.

41. During the period from October, 1981 to April, 1987

12

I worked for the cult in California. Although I may have traveled outside of California on occasion, California was my residence and the place to which I would return. During this period, I was a staff member of the Scientology Cult. I worked many hours a day, and far in excess of 40 hours per week. Although I did receive some services in exchange for my work, I was never paid a minimum wage for the work and overtime work that I performed for the cult while in California.

42. In late 1982 the “Team Member System” was created by L. Ron Hubbard in an effort to control staff of the Scientology Cult. This was a system whereby a staff member was given five laminated cards, and as the member committed various offenses, cards were arbitrarily taken away. These cards represented privileges like a place to sleep and food to eat and monetary pay. As these are taken away, a person could end up sleeping out on the ground with no food. This happened to several people while I was at Gilman Hot Springs. I personally did not end up sleeping on the ground as a result of this system.

43. If sworn as a witness, I could competently testify to the matters stated in this Declaration.

I declare under penalty of perjury that the foregoing is true and correct.

Executed this 23rd day of September, 1988 at Dallas, Texas.

[signed]
VICKI J. AZNARAN
Declarant

Notes

  1. Signature page in image format .

Declaration of Vicki J. Aznaran (August 9, 1988)

I, Vicki J. Aznaran, make the following declarations on personal knowledge except where the context indicates knowledge based upon information and belief.1

My husband Richard Aznaran and I are plaintiffs in the instant action wherein defendants (hereinafter referred to collectively as “Scientology”) have moved to strike our entire complaint and to prevent our attorneys from representing us.

2. As set forth in more detail below, my husband and I were involved with Scientology for approximately 15 years. For much of that time we were members of an organization known as the Sea Organization. This organization is an elite organization within Scientology. The Sea Organization has considerable influence and control over Scientology organizations. Generally, Sea Organization members hold the management posts within Scientology.

3. In 1978, after approximately four years as staff members, my husband and I joined the Sea Organization. From 1978 to early 1987, my husband and I worked most of our waking hours, with very few days off, at our various assignments within Scientology. I eventually became President of Religious Technology Center and, supposedly, the top “ecclesiastical” authority within Scientology. Richard was a high-level security officer. During this period my husband and I became intimately familiar with the structure and activities of various Scientology organizations. Among other things, I was briefed on and sometimes a participant in meetings involving litigation tactics and various

1

means used to attack and fight “enemies” of Scientology. In numerous instances I was in the chain of command or approval for such activities. The legal strategy of Scientology and the existence of numerous potential legal problems, some of which are set forth below, were known to me when I was a staff member in Scientology. Contrary to, what I understand to be claimed by defendants herein, Mr. Yanny did not reveal to me the legal strategies or secrets of Scientology. Nor did Mr. Yanny invent or open my eyes to the wrongs that I had suffered at the hands of Scientology.

4. I have become an “enemy” of Scientology. This has certain consequences that will influence what Scientology will do in this litigation. For example, it is important to understand that their value system allows dishonesty if done in the name of Scientology.

5. Enemies of Scientology are deemed to be “suppressive persons”(“SPs”). One becomes a “suppressive person” by doing a suppressive act, such as suing Scientology as a litigant or lawyer. In the jargon of Scientology, when one is “declared” this means that one has been declared a “suppressive person” and, therefore, may be, harassed, hurt, damaged or destroyed without regard to truth, honesty or legal rights. It is considered acceptable within Scientology to lie, cheat, steal and commit illegal acts in the name of dealing with a “suppressive person”.

6. This practice or policy is sometimes referred to as the policy of “fair game”. In the jargon of Scientology, a person who is “declared” is understood to be a suppressive person. This means that the person is “fair game”. The fair game policy was

2

issued in the 1960s. It was, never cancelled. A document was issued for public relations reasons that purportedly cancelled “fair game”; however, that document stated that it did not change the manner of handling persons declared “SP.” In reality, the purported cancellation of fair game is at most a matter of semantics. Enemies of Scientology are treated as “fair game.”

7. It is my understanding, and I have so testified in my deposition, that when my husband and I escaped from Scientology we were not immediately declared suppressive persons or subjected to the fair game policy. Among other things, we were compelled to do certain things and sign various documents to escape and avoid being subjected to fair game treatment. As we have now sued Scientology, we are “fair game”.

8. From 1984 through early 1987, I was President of Religious Technology Center (hereinafter “RTC”). As President of RTC and a Sea Organization member, I attended many meetings concerning the numerous legal actions involving Scientology organizations. During this time period, I had personal access to all legal documents having to do with RTC. I received a report every day on my computer that included a synopsis of each ongoing legal case involving Scientology. I received, or so I was told, copies of every major motion filed in cases involving Scientology. I was on the “approval lines” for legal documents dealing with RTC. During this time period, I had the option of attending legal meetings although some were mandatory. I attended many litigation meetings and became generally aware of Scientology’s dirty tricks and legal maneuvers. On specifics, I frequently deferred to in-house and outside counsel, however, at least in theory, I was

3

the head of RTC and had access to any business or litigation ” secrets” of Scientology.

9. As President of RTC, I was one of those responsible for retaining the services of Joseph Yanny as counsel for Scientology organizations. I supervised and worked with Mr. Yanny who served as coordinating attorney for RTC in 1985. I am not aware of any legal or corporate information concerning RTC that was available to Mr. Yanny but not available to me.

10. I am informed and believe that various Scientology organizations are contending that Mr. Yanny has somehow improperly educated me on the legal maneuvers, tactics and affairs of Scientology. Although such claims are consistent with litigation tactics of Scientology, which .are not constrained by considerations such as truth and reality, the proposition that I need Mr. Yanny to educate me on the internal affairs of Scientology is simply wrong. I was one of the highest ranking members of Scientology and was involved in upper management. Mr. Yanny was a lawyer hired by management, of which I was a part, to work for it. Further, it was the practice during the time period in question to screen the information given to outside counsel such as Mr Yanny.

11. It is the stated policy and practice of Scientology to use the legal system to abuse and harass its enemies. This crude, fundamental directive of Scientology is no secret. In any event, this information did not come to me from Mr. Yanny. The policy is to do anything and everything possible to harass the opposing litigant without regard to whether any particular motion or maneuver is appropriate or warranted by the facts or applicable law. That policy was followed in every legal case I was involved

4

with or learned about while a member of the Sea Organization. The management of Scientology consistently expressed and demonstrated a complete disdain for the court system viewing it as nothing more than a method to harass enemies. Some examples of this are set forth below.

12. During litigation between Gerald Armstrong and Scientology, which was before Judge Breckenridge of Superior Court for Los Angeles County, the court ordered the production of Armstrong’s pre-clear (“PC”) folders. These are files maintained by Scientology on those who submit to interrogation sessions in a process called auditing. During the course of that litigation I was ordered to go through Armstrong’s folders and destroy or conceal anything that might be damaging to Scientology or helpful to Armstrong’s case. As ordered, I went through the files and destroyed contents that might support Armstrong’s claims against Scientology. This practice is known within Scientology as “culling PC folders” and is a common litigation tactic employed by Scientology.

13. During other litigation in Los Angeles known to me as the Wollersheim case, I was told that the. judge had ordered the production of Wollersheim’s folders. As ordered, I “culled” these files. In other words, I removed contents that might have been damaging to Scientology or support Wollersheim’s claims against Scientology. For example, I removed evidence of events involving his family, the anguish this caused him, evidence of disconnection from family and evidence of fair game.

14. I was involved in numerous meetings concerning what is known to me as the Christofferson case in Portland, Oregon. This

5

case was tried twice. In the first case, a Scientology witness by the name of Martin Samuels was coached and drilled for hours on how to lie convincingly or avoid telling the truth. Before or during the second trial he admitted to this course of conduct. In this litigation, a Scientologist by the name of Joan Shriver produced responsive documents that may have been incriminating. This was a serious breach of policy for which she was punished. These documents were ordered produced on such short notice that apparently files were not thoroughly “culled”. In another case, Mr. Yanny was severely criticized and almost fired for failing to properly coach and feed the desired answers to Heber Jentzsch. Mr. Jentzsch was, for public relations reasons, the purported head of the Church of Scientology International. During his deposition, Mr. Jentzsch was unable to answer fundamental questions concerning the management of Church of Scientology International. This may be what certain defendants are referring to when they say that they were dissatisfied with Mr. Yanny’s services and I protected him. There were those, including McShane, who were outraged by the embarrassing testimony of Mr. Jentzsch. This was blamed on Mr. Yanny. I did not wish. to discontinue using Mr. Yanny at RTC for this perceived problem.

15. In November, 1985, I was present at a meeting whereat Earle Cooley, a Scientologist lawyer, Lyman Spurlock and Norman Starkey, all high ranking Scientologists, announced that they were going to contact Judge Mariana Pfaelzer. Earlier that day Judge Pfaelzer had denied a Scientology motion for a temporary restraining order. After losing on the application there was a meeting to determine what to do about the situation. At the

6

meeting Mr. Cooley had a file, that purportedly contained background and personal information on Judge Pfaelzer. During the meeting Mr. Cooley and the others announced that they were going to attempt to meet with Judge Pfaelzer that evening, at her house if necessary, concerning the litigation in which the temporary restraining order had been sought. Thereafter, Mr. Cooley and two others left with their file on Judge Pfaelzer. They returned several hours later at which time I was told that their attempts to contact Judge Pfaelzer had been unsuccessful.

16. In late 1979 and early 1980, there was a massive document destruction program undertaken to destroy any evidence showing that L. Ron Hubbard (“LRH”) controlled Scientology. I participated in this activity in Clearwater, Florida and am informed that there was also intensive document destruction at facilities in Gilman Hot Springs, California. From at least that point onward there was a continuous effort to hide or destroy any evidence of Hubbard’s control. For example, during an IRS investigation in 1984 and 1985, while in bed with pneumonia, I was ordered out of bed by Norman Starkey who told me that they had received a tip from a Los Angeles Police officer advising them of a pending IRS raid in Los Angeles. Mr. Starkey ordered me to go to a computer facility and insure that all information on the computers in Los Angeles that might show Hubbard’s involvement and control of Scientology’s money was destroyed except for one copy of each document. These copies were to be saved on computer discs which were to be hidden in secure storage places. At the time I was also instructed to destroy anything that would show the control of Mr. Starkey or Mr. Miscavige over Scientology.

7

17. I have been informed and believe that a an improper affidavit was filed in a case brought by L. Ron Hubbard, Jr. in Riverside, California. The circumstances were as follows: The document purported to be an affidavit of L. Ron Hubbard. The signature of Hubbard was purportedly notarized by David Miscavige. It is my understanding that this affidavit caused the case to be dismissed. Subsequently, I was told by Pat Broeker, who had been living with Hubbard at the time, and by Miscavige, that Miscavige had not seen Hubbard between 1980 and Hubbard’s death in 1986. Accordingly, the affidavit was apparently signed, notarized and dated during a time period when Hubbard was in seclusion and not seen by the person who purportedly notarized the signature of Hubbard.

18. In or about 1981, while working in a Scientology organization known as the Guardian’s Office, I had access to and observed various written and oral communications pertaining to illegitimate activities participated in by the Guardian’s Office.

The Guardian’s Office attempted to infiltrate both governmental and private agencies including the IRS, the Department of Justice, the American Medical Association and the National Institute of Mental Health. The purpose of this was to steal documents pursuant to Hubbard’s “Snow White” program. The goal of this program was to eliminate any negative reports about Hubbard and Scientology that may have been held by these various agencies.

19. While involved in Scientology I became aware of various operations directed against an author who had written a negative book about Scientology. The author, Paulette Cooper, was subjected to various forms of harassment. One operation included an

8

attempt to frame her. A false bomb threat was written. A Scientology agent lifted a fingerprint from Cooper’s apartment. These fingerprints were then transferred to the bomb threat letter. Ms. Cooper was subjected to an investigation and was not cleared until an FBI raid resulted in the seizure of Scientology documents that exposed the operation as a frame-up. There was at least one other operation directed against Ms. Cooper. The substance of it was to plant a boyfriend to reinforce and play upon her suicidal tendencies in the hopes that she would commit suicide.

20. In 1976 and 1977, the then Mayor of Clearwater, Florida, Gabe Cazares was involved with litigation against Scientology. Arrangements were made to have an attorney by the name of Merril [sp. Merrill] Vanniere [sp. Veneer?], a Scientologist, represent Mr. Cazares and sabotage his case. This plot was also exposed by documents obtained in an FBI raid of a .Scientology facility. Also, in response to Mr. Cazares’ litigation against Scientology, an attempt was made to implicate Mr. Cazares in a staged hit-and-run accident.

21. During the time period of my involvement with Scientology, I also learned of various. attempts to influence judges or force their removal from cases. For example, a private investigator named Dick Bast obtained a statement from a prostitute concerning involvement with a certain judge in Washington, D.C. who was sitting on a Scientology case. This was then publicized. The judge did not continue on the case. The same investigator, Dick Bast was also hired for the purpose of attempting to force the removal of a judge in Tampa, Florida. This involved what I know as the Burden case, which was civil

9

litigation brought by Michael Flynn. Dick Bast secured a yacht and attempted to get the judge on board for the purpose of filming him under compromising circumstances. The judge declined to go yachting and the operation was unsuccessful. Approximately $250,000.00 was spent on the operation.

22. I have been informed by Mark (Marty) Rathbun, a high ranking Scientologist, that his private investigator, Gene Ingram, “fed” a confession to Ala Tamimi when visiting him in an Italian prison. This false confession was, in substance, that Tamimi had been involved in a bad check scam involving an account of L. Ron Hubbard. This false confession implicated attorney Michael Flynn in the check scam. Michael Flynn was at the time considered a major enemy of Scientology because he represented numerous clients with claims against Scientology. This purported confession was used to slander and attack Michael Flynn. Michael Flynn has also been sued.by Scientology as part of its “strategy” for handling enemies.

23. During an IRS criminal investigation in the 1984 to 1985 time period, the IRS ordered production of various communications between Hubbard and Author Services, Inc. (ASI). The ASI staff worked literally day and night for several days reviewing documents so that unfavorable documents could be destroyed or otherwise concealed from the IRS. Lyman Spurlock and Marion M. Dendui, Scientologists involved in this operation, informed me of this operation. Also during this IRS investigation, my husband, Rick Aznaran, was ordered to remove and conceal any incriminating documents from certain locations. He was also directed to make the computer network “raid proof”. This involved creating a

10

system where incriminating documents could be deleted from computer storage rapidly and before the IRS could obtain control over the computers.

24. In 1985, I attended a conference on “squirrels” attended by Miscavige, Starkey, Spurlock, and McShane, members of top management, and others. In Scientology jargon, “squirrels” are people who use or practice some procedures also used by Scientology but who do not submit to the total control of the Scientology organization and, perhaps most importantly, who do not pay a percentage of their auditing or counseling fees to Scientology. At this meeting, David Miscavige ordered that public Scientologists be organized and motivated to physically attack squirrels and disrupt their operations. This was stated to be pursuant to the standard guidelines of Scientology. Pursuant to such directives, efforts were undertaken to intimidate and disrupt these persons and their organizations.

25. In 1981, operation “Juggernaut” was commenced. The purpose of this was to destroy Michael Flynn who, as stated above, was representing various plaintiffs with litigation against Scientology. This operation contemplated the use of infiltration, propaganda and attempts to persuade clients to turn against him.

26. The Guardians’ Office got into so much trouble, and worse yet got caught, that it was decided in the early 1980’s that the Guardians’ Office should be disbanded. This was purely a public relations gimmick. In short, it was decided that the Guardians’ Office and Mary Sue Hubbard, its then leader, were to take the rap for all criticism and improper conduct. This scheme was laid out in various written communications I observed in 1981

11

and 1982. (Of course, I was not allowed to keep or escape from Scientology with any such incriminating documents.)

27. Since the early 1970’s, Scientology has operated a forced labor camp known as the Rehabilitation Project Force (“RPF”). Staff members are incarcerated in the RPF for various real or imagined offense. People confined at this camp are forced to perform hard physical labor every day. They eat rice and beans, or left-overs, and wear rags. They are deprived of sufficient sleep. In 1987, I was confined in such a camp at Happy Valley for approximately six weeks. I worked all day and was confined in a room at night. To the best of my knowledge I was guarded 24 hours a day. They would not even let me shower alone. I had to obtain permission to use a bathroom. I was ill and not allowed to obtain medical treatment. I was not allowed to communicate with my husband nor was I allowed to obtain adequate sleep. I was told that I had gone insane and that my husband did not want to communicate with me. I was physically and psychologically abused both at Happy Valley and for numerous days thereafter in a process called “security checking”. Much oversimplified, I was grilled on a primitive lie detector called an E-Meter and made to understand that I would not be released, have my property returned, or escape fair game policy unless I eventually gave all of the “right” answers. Examples of ” right” answers were responses that I would not talk to a lawyer or consider suing Scientology. I had to give such answers before being released.

28. Recovering from the years of brainwashing, thought control and propaganda to which Scientology subjected me is a

12

gradual process that I do not fully understand. I am not a psychologist or psychiatrist and do not fully understand the ramifications of what I have been through although I can observe and experience many symptoms. I have many nightmares and a fear of Scientology.

29. The suit brought by Richard Aznaran and myself is based upon real events that happened to real people, namely us. Just as my husband and I do not need Mr. Yanny to educate us on any secrets of Scientology, it is simply untrue that our claims were somehow invented or manufactured by Mr. Yanny. The whimsical notion that Mr. Yanny invented this litigation through my husband and me is simply false.

30. My husband and I consider Mr. Yanny to be a friend. Further, it might be noted that Mr. Yanny was to serve as my personal counsel in a class action against Scientology and numerous individuals including myself. Recent events have changed this, however, .there was a period of time when Mr. Yanny was purportedly designated as my personal counsel with the approval of Scientology.

31. My husband and I feel quite strongly that we want Barry Van Sickle and the firm of Cummins & White to represent us in this case. Our reasons are both subjective and objective. We do not wish to list our subjective reasons, although we will do so if the Court requests it. Objectively, it might be noted that we had considerable difficulty finding counsel willing and in a position to undertake this extremely volatile, time consuming and expensive litigation. We are unable to pay hourly rates to pursue our claims and need a firm willing to work with us on a contingency

13

fee basis. I anticipate great difficulty, delay and prejudice if forced to find other counsel.

32. Based upon my experience within Scientology and as a litigant against it, I understand that this is not routine litigation. If I am forced to find other counsel, prospective counsel will be presented with the following situation:

(a) A complex case that must be handled on a contingency fee and cost-advanced basis;

(b) A case that requires a litigation team and substantial financial resources;

(c) A case involving an opponent who has a practice and history of suing opposing lawyers as a tactic in addition to subjecting opposing lawyers to surveillance, depositions, infiltration, bad publicity and the full ramifications of the fair game policy;

(d) A case where the opponent is not constrained by a need to be cost effective, truthful, honest or reasonable; and

(e) A case that requires extraordinary security precautions.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed this 9th day of August, 1988, in Dallas, Texas.

[signed]
VICKI J. AZNARAN

14

Notes

  1. This document in PDF format.

Declaration of Vicki Aznaran (May 31, 1988)

I, VICKI AZNARAN, do hereby declare as follows:1

I am over the age of eighteen and if called to the stand and sworn under oath I could competently testify as follows:

1. I was involved with the Church of Scientology from 1972 to April 1987. During this time I held various management roles within the Church of Scientology. In 1982 I became an official for the Religious Technology Center which controlled the use of Scientology trademarks. At one time I was head of this entity.

2. Prior to my tenure at RTC, I was a Commodore Messenger in Clearwater, Florida.

3. Around 1981 and into 1982, Scientology disbanded the Guardian’s Office as members of the same had been arrested for theft of government documents and obstruction of justice.

4. I personally read dispatches setting forth L. Ron Hubbard’s plan that Scientology should separate itself from the acts that were done in the Guardian’s Office and therefore the Guardian’s Office should be disbanded.

5. Your declarant was selected to go to Los Angeles and take over the United States Guardian’s Office for purposes of reforming it and disbanding it. Pursuant to said plan, I reviewed many of the Scientology documents seized by the FBI. The accuracy and legitimacy of these documents were confirmed to me by other Scientology officials, including Norman Starkey and staff members of the Guardian’s Office who were on staff at the time documents were seized. These informants included Joe Lisa, Tom Ritchie, and Laurie Zurn.

1

6. While the Guardian’s Office was disbanded, the same was done in “name” only. The role was assumed by the Office of Special Affairs International located in Los Angeles at the old Ceders Complex.

7. Scientology still ran covert operations that included planting people as spies, bugging of rooms and raiding people’s garbage, particularly opposing legal staff, looking for information.

8. The Office of Special Affairs International has a public relations division which subscribes to a “clipping service” and maintains files concerning publicity and articles generated concerning the Church of Scientology.

9. The Office of Special Affairs International further has a legal division which monitors all legal cases involving the Church of Scientology and maintains records relating thereto.

10. In 1984 I attended a meeting of high Church of Scientology officials, including David Miscavige, Starkey, and Marty Rathburn. At this meeting Mr. Miscavige said that something had to be done about “squirrels.” “Squirrels” is a Scientology term for people who have left Scientology and offer an altered version of Scientology technology to the public. I personally heard Mr. Miscavige discuss getting their “field people” to go out and beat up squirrels. (In Scientology, field people are Scientologists not employed specifically by the Church.) These instructions were given to Warren McShane. Plans were discussed as to who would do it.

2

11. In late 1986, I saw a directive concerning planting someone close to Bent Corydon in order to obtain the manuscript of his book that he was writing on L. Ron Hubbard.

12. In 1982, I listened to a tape of L. Ron Hubbard outlining a plan, the purpose of which was to take over control of the Missions so that Scientology could control the Mission money and assets. It would also give Scientology the power to control and dictate activities of any Missions. Prior to this, Missions were generally autonomous.

13. As part of this plan, the purpose of the plan was not to be disclosed to the Mission holders. A sales pitch was created to falsely advise Mission holders that the new articles and by-laws would make their Missions better and more independent.

I declare under penalty of perjury that the above is true and correct to the best of my belief.

Executed on May 31, 1988, at Dallas, Texas.

[signed]
Vicki Aznaran

Notes