Jesse Prince: The Future is Here and I’m Feeling Good. (November 7, 2014)

[…]1

I began to recall being on the other side of the fence when Gerry Armstrong had to defend himself against Scientology style black ops for years.  Scientology sued Jerry for absconding with 22 banker boxes of personal documents and artifacts of L Ron Hubbard. I’m not trying to retell the story of Jerry Armstrong here but ultimately, Scientology paid Jerry a settlement of $800.000 in exchange for his promise not to copy or discloses the content of the banker boxes he’d taken. What the hell was in those boxes? It’s a fascinating, well documented cock up of what happened when author Omar Garrison and his research assistant  Gerry Armstrong verified L Ron’s actual education and military record history among other  subjects. In a nutshell, too much of the information they were able to factually verify of L Ron’s past was contemptuously contrary to the yarn L Ron spun for his devout adherents and any other ear that could hear. Gerry Armstrong went on to violate his agreement with Scientology hundreds of times and is still perused by Scientology’s attach dog legal machine. I know something about this because I was present and informed about Jerry’s legal troubles with Scientology as they was happening.  I recall being present when the conditions of the settlement agreement between Gerry Armstrong and Scientology (Which in effect included whatever was best for Author Services Inc, ASI) was negotiated.

From 1983 until the settlement in 1986, I would receive on a daily basis, usually sometime between 6-8 pm, intelligence reports  generated by staff of Special Project Operations (ASI), OSA and RTC concerning secret and illegal operations by Scientology against Jerry, his lawyer Michael Flynn, and other plaintiffs represented by Michael Flynn’s firm.  The operations against Jerry’s lawyer included having knowledge of someone putting water in the gas tank of an airplane piloted by Michael Flynn with his son on board. There was instant access into the lives of people who were deemed enemy’s Scientology through well paid and placed private investigators.  These professionals sold their services to their Scientology paymasters because they had the latest modern bugging technology that was confirmed US CIA grade technology. Scientology was able to buy the services of ex-police, ex-FBI and other agency. Phone records were a fruitful source of information. Through illegally obtaining phone records Scientology always seemed to be a step ahead of their perceived enemies.  ASI lead attorney was Earle Cooley. A big part of his job as legal council was to made sure we rode a fine line to separate church principles from the illegal activities sanctioned by the same principles.

There were years of board room meeting at ASI to figure out how to get rid of Jerry Armstrong, L Ron junior, David Mayo and a few other people who had devoted their lives in servitude to L Ron and his grand ideas. All of these devoted people turned out to be Suppressive Persons all along according to the instructions from L Ron via his publishing organization ASI. It was new management’s job to hunt them down and get them put in jail. Some may recall during the early to mid 1980’s L Ron got a bug up his ass and thought he had the power to have people criminally prosecuted for disobeying or being out of step with what he wanted. This is way past just having a stick up your ass, he really wanted this done and some people did get set up and went to jail.  It was required protocol to hate and contribute to the destruction of men and women that I had never met or laid eyes on. We would be sitting in the board room at L Ron’s Author Services organization reading advice’s from L Ron calling for the heads of staff he felt offended him somehow. Listening to Miscavige and other staff figuring out ever clever ways to get rid of the people who were aggravating poor L Ron. As we sat there making up plans to attach the very same people who were at L Ron’s side doing everything in their power to do his will. L Ron never wavered when it came to annihilating the oldest and closest devote adherents he had. There is no retirement in the business of Scientology. Ron taught his prodigy to quickly and quietly get rid of the most loyal staff members without remorse.

There were banker boxes full of “advises” from L Ron spewing hate filled vitriol about Jerry. The information that Jerry provided to Russell Miller and Jon Attack about L Ron’s actual history did in fact exposed his underbelly and pulled back the curtains on his imaginary life he expected others to believe.

During the negotiations to settle with Jerry Armstrong the settlement was intentionally construed to make it too easy for anyone to claim Jerry had violated his agreement with Scientology. Those who were present knew this settlement, that still plagues Jerry today was not done in good faith. The actual intent of the settlement was to cause Jerry to be incarcerated for violation of his settlement agreement2 and that is exactly what has happened. The other factor is this; Jerry didn’t want to take any of Scientology’s money and he didn’t want to settle. He was in effect forced to settle by his own lawyer Michael Flynn. Michael Flynn and his whole family had been hounded by Scientology hired thugs and they were tired of it. Flynn was also the attorney of record for other ex-Scientologist in a civil class action lawsuit….you get the idea. We had them right where we wanted. Each person received a settlement but Jerry was the only hold out. We even knew about the deteriorating relationship between Jerry Armstrong and lawyer Michael Flynn because we were the ones causing the confusion. In the end Jerry was forced to settle or be attached by his own attorney who wanted out and had been working on contingency anyway. There are standard legal agreements a plaintiff makes with a lawyer who takes on a case on contingency. The rule and agreement that comes into play is the plaintiff will agree to settle the case if there a reasonable offer on the table. Jerry was obligated to accept the settlement. Someone can say that better than me but you get the idea, Jerry was forced to settle, then he was set up to violate the settlement whereby Scientology would recover its money times three and if possible get him arrested and put in jail.

After years of acting like I hated people I’d never met or seen with my eyes like Jerry Armstrong took some getting use to. Getting Jerry had been en grained in my mind. Even after being out of the cult for some years. I remember the first time I talked with Jerry years after I had left the cult. On a physical level I felt uncomfortable being around him or even engaging in personal or meaningful conversation. On a certain level I was afraid of Jerry and this made no sense. None of that changed the facts of how all of this made me feel emotionally. In L Ron’s alternative reality, it was considered a flaw to openly show or express emotion or empathy. We were all just ever replaceable characters in L Ron’s movie. Suffice to say I didn’t foster or encourage a speaking relationship with Jerry because I didn’t want to. The problem is this is how Scientology technology is designed to protect itself in the minds of its own.

Long before I testified in a court of law as an expert witness, Jerry had already been there doing that, the same as I would do later. The real truth is when I met Jerry I had not entirely overcome the misconceptions and false information I’d learned about him through the years. I was dismissive of Jerry and didn’t fully appreciate, let alone realize the personal sacrifice and contribution he made when he exposed L Ron for being the lying ass clown he was.

It was only after reading the Russell Miller book with fresh eyes that I finally better understanding and more fully appreciated the work Jerry did.  Since I’ve read the books again with fresh eyes so much has changed. I know I was Jerry when I woke up from the spell and stopped lying for and protecting Scientology. That meant it was my turn to be persecuted by juvenile intelligence tactics, endlessly financed on behalf of dead L Ron. These days both Marty Rathbun and Mike Rinder are Jerry too! No one owes or is obligated to me for anything and ultimately it may not matter what I think but I will say this. I don’t monitor Scientology activities anymore like I use to. That being said, It sure does make me smile when someone sends me something about Mike Rinder speaking out. He’s even been known to refer to Scientology as a cult. This is the guy who was the public face of Scientology for years!  My heart goes out to him and his new family. These days Mike doesn’t mince words when tells people about Scientology, what a turnaround bless him. Marty Rathbun is probably the most knowledgeable person in existence when it comes to how Scientology plays ball in a law suit. From what I can tell he and his wife are progressing excellently with their lawsuit against Scientology, you have my blessing for that.

Notes

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

 

Former RTC Inspector General Jesse Prince discusses the death of L. Ron Hubbard (September 5, 1998)

Former RTC Inspector General Jesse Prince
discusses the death of L. Ron Hubbard

Jesse Prince is one of the highest ranking former officers of the Church of Scientology to have to courage to come forward and tell his story. In this post, he discusses the tension between current CoS head David Miscavige and his then-rival to the throne, Pat Broeker, in the months preceding Hubbard’s death.

In the weeks since he first came forward with his story, Jesse Prince has been travelling around the country to meet with many CoS opponents, and, in some cases, filing affidavits on their behalf. For these actions, he has been targeted as ‘fair game’ for the CoS, which has put both him and his friends and supporters under extreme pressure from the Office of Special Affairs (OSA), the church’s investigation unit, also known as ‘Scientology’s Secret Service.’ He has nonetheless made several posts to alt.religion.scientology, including that from which this excerpt has been taken.

From a post by Jesse Prince (September 5, 1998):1

[ … ]

Now let”s go back in time to an afternoon in the late summer of 1984. I am sitting in one of many legal/litigation meetings at Author Services, Inc., or ASI. I am in RTC, a nonprofit religious corporation which ostensibly has absolutely nothing to do wth ASI, a for-profit corporation. But David Miscavige finds it convenient at the moment to be the Chairman of the Board of ASI, and, since David Miscavige runs Scientology (no matter where he places himself corporately), he can order all of us to meet wherever and whenever he wants us to.

The subject of this particular meeting concerns the LRH probate case in Riverside, California, and, as always, more corporate “sort-out.” Lawyers have advised that there is still too much evidence to prove that LRH is incompetent to manage his own affairs. This is crucial, since the case has been brought by LRH”s son Nibbs, who has claimed that LRH is incompetent to manage his own affairs and that his estate is being stolen by the Church of Scientology under David Miscavige’s leadership. Nibbs is hoping to take over LRH’s assets if he can prove that LRH is incompetent. So this is a very serious threat.

LRH has repeatedly said he wants different lawyers to represent him, and that he wants different legal advice on how to win this case against Nibbs. But DM has decided that the lawyers LRH already has (and who were chosen, of course, by DM) are the best possible legal counsel. LRH specifically doesn”t like the fact that these attorneys are advising him to back away from managing Scientology”s affairs. Part of the reason for this is that DM feels (and has told the attorneys) that LRH is losing his grip on reality.

In truth, DM was not the only one who knew that LRH was an old man past his prime, with no real “new ideas” or “brilliant revelations” for quite some time. All he could do was say the same thing, over and over: “There are more BTs! Many more than people realize!” Hubbard really was a bit senile at the end there – his brain pretty well fried by a wide range of drugs which he used for his “research” — and this scared the hell out of his top messengers and others near him.

For many years, LRH’s top aide, Pat Broeker, and his wife, Annie Broeker, looked after the daily care of LRH. Pat was the financial conduit between LRH and the vast reserves of liquid cash mounting in the multiple corporations of Scientology which LRH always had at his disposal. David Miscavige would be called by Pat to bring hundreds of thousands or millions of dollars in cash in briefcases to cover “basic expenses” for LRH and his small crew of four staff. Often the prearranged meeting place was near Las Vegas. On many of these occasions, Pat and Dave would go to a casino and gamble away thousands of dollars of LRH’s money, just hanging out having a good time together.

But as LRH felt his grasp on the Scientology empire weakening, he became extremely suspicious of Dave and ordered me to give him a security check to see if Dave was trying to prevent LRH from having his way with the church as he was used to having. Basically, LRH was upset that he could not simply romp from one fake corporation to another, wreaking havoc in his wake, as he had always done. And he was being advised by attorneys whom Dave had hired that in order to protect his money, he should disappear for a while. All of these circumstances added up for LRH, and he was not at all sure he could trust DM. He was afraid DM was trying to take over. Sure, he had practically raised Dave from a pup, but still, who could be trusted in this business?

So I was ordered to sec check DM to determine his real motives for passing along legal advice that he back off from his own church. When I walked into Dave”s office he was crying like a child who had taken a crap in his pants and now stank to high heaven. Dave swore up and down to me that he was only following LRH”s own orders to get an “All Clear” — meaning to get LRH dismissed from all the outstanding litigation — so that LRH could travel freely again, without fear of subpoenas or worse.

LRH had been in hiding, not only from the public but also from 95 percent of all his staff, for the last fifteen to twenty years anyway. Dave was extremely indignant at being asked such incriminating questions, but because of the questions I was asking him, he was fairly certain that LRH would soon assign him to the RPF (the Rehabilitation Project Force, Scientology”s political prison).

In the security check Dave made sure he told me about the trips to the casinoes, the heavy drinking and the women he and Pat had enjoyed together. Dave freely confessed his sins and Pat Broeker”s sins as well. He said if he was going to go down, he was going to make sure Pat Broeker went down as well. He was very critical of Pat, saying he had a long history of alcohol abuse and recklessly spending LRH’s money. Of course, the person who received the report of Dave”s sec check was Pat Broeker. So it didn”t surprise me a bit when Dave and Pat suddenly became best buddies again. I seriously doubt that anything but reports full of glowing praise for Dave ever went to LRH. In retrospect I realize both Pat Broeker and David Miscavige had an interest in keeping the status quo with LRH, since both of them had dreams of one day being the new dictator of Scientology once the current Ding Dong king was dead.

LRH went on spending his millions freely on property and “research” (all this really meant was that he was buying more and more drugs for himself) and buying exotic animals like buffalo, llamas, swans and peacocks at the ranch at Creston.

LRH seemed resigned to follow the legal advice of Dave”s lawyers and stayed away from Scientology. However, he made it known that he was still very salty about the whole deal and refused to make contact as he had done in the past.

About a year and a half later he became very ill.

– From a post by Jesse Prince (jesse.princeatgte.net)

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 Vicki J. Aznaran (August 8, 1988)

Declaration of Vicki J. Aznaran 1

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

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

[…]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 it 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 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
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.

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

[…]

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

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

Vicki J. Aznaran

Notes

  1. This document in PDF format.

OSA Press Release (October 22, 1984)

Author Gary L. Bostwick
Date October 22nd, 19841
LOS ANGELES, Oct. 22/PRN – A $5 million malicious prosecution complaint was filed
today on behalf of Mary Sue Hubbard, wife of Scientology founder and author L. Ron
Hubbard, in Los Angeles Superior Court, the Church of Scientology reported today.
The complaint accuses a Boxford, Mass., lawyer, Michael Flynn, and his client, Ronald
DeWolf, of being “the perpetrators of a massive fraud,” in connection with an
unsuccessful probate bid in 1982, according to Los Angeles attorney Gary L. Bostwick.
Bostwick, who represents Mary Sue Hubbard, charged that Flynn and DeWolf, the
estranged son of Mr. Hubbard, “attempted a massive hoax” in bringing the probate action
and that they were “guilty of oppression, fraud and malice” in their actions.
These actions, Bostwick said, included intentionally misrepresenting facts in the original
probate filing and during subsequent actions in the probate case; illegally concealing
other material facts with the intent to cause injury; abusing the legal process by using the
probate action as a means to get information that would help Flynn’s client in other
litigation; acting with ulterior purpose to obtain advantages in other lawsuits against
Mary Sue Hubbard, L. Ron Hubbard or various churches of Scientology.
“The filing of false information in litigation is a crime and cannot be tolerated by the
American judicial system, and those who do so have to be called to account for it,”
Bostwick said.
Contact – Gary L. Bostwick or Richard Towne at 213-395-5372 for the Church of Scientology.

Notes

Affidavit of Michael Flynn (August 10, 1984)

AFFIDAVIT OF MICHAEL J. FLYNN1
I, MICHAEL J. FLYNN, swear under the pains and penalties of perjury under the laws of Massachusetts, California, Nevada, Florida and the United States, that the statements made in this affidavit are true.

1) On Monday, July 23, 1984, I received a telephone call from a reporter from the Boston Globe who advised me that affidavits were being filed on that date in the case of Miller v. Flanagan, Los Angeles Federal District Court, relating to claims by an individual named Ala Tamimi, that I had participated with him in the attempted forgery of a two-million dollar check drawn on an account of L. Ron Hubbard. Up to that date, I had never heard the name Ala Tamimi. To this date, I have never met with him, seen him, talked to him on the telephone, or had any involvement with him of any nature or description. He is a total stranger to me. The meetings, conversations, and involvements described by Tamimi in his affidavit with respect to me are completely false. As to Tamimi’s participation in the check incident, I have no knowledge of what he did or did not do, but the first information that I have ever received relative to his participation in this incident was on July 23, 1984, when the reporter called me on the telephone and advised me of Tamimi’s affidavit.

2) I first learned of an attempt to pass a two-million dollar check drawn on the account of L. Ron Hubbard on June 14, 1982, while I was staying at the Holiday Inn Surfside in Clearwater Beach, Florida. I was in Florida at that time as special counsel to the City of Clearwater for the purpose of dealing with various matters in the aftermath of the hearings held before the Clearwater City Commission in May 1982, relative to L. Ron Hubbard and the Church of Scientology. While at the Holiday Inn Surfside, I received a telephone call or calls from Mr. Joseph Snyder of Security Management Services, Inc., Boston, Massachusetts, who had been retained by the Bank of New England for the purposes of finding L. Ron Hubbard and obtaining information from Hubbard as to the circumstances surrounding the two-million dollar check. Mr. Synder informed me that approximately one week prior to his phone call, someone had attempted to pass a two-million dollar check on an account of L. Ron Hubbard in the Middle East Bank in New York City.

3) I had met Mr. Snyder for the first time many months prior to his calling me in Florida, when I delivered a speech concerning L. Ron Hubbard and the Church of Scientology to a group called the American Society for Industrial Security. The speech was well received and related to the intelligence/espionage tactics of Scientology which kindled the interest of many of the investigators present including Mr. Snyder. The speech to the group of which Mr. Snyder was a part was the only involvement with him that I had ever had

 -2-

of any nature or description up until the time that I received the phone call from him in June 1982 concerning the check.

4) When Mr. Snyder called me on or about June 14, 1982, he said that he had attended the speech that I had given relative to Hubbard and the Church of Scientology and that he was working in the employ of the Bank of New England for purposes of finding Hubbard. He was reluctant to give me any details on the telephone but agreed to pick me up at Logan Airport in Boston when I arrived back from Clearwater, Florida. After returning from Florida, I met with Mr. Snyder and his colleague, Andrew Fink, on several occasions, provided them all of the information that I could relative to Hubbard and Scientology, and thereafter I had a telephone conversation with Mr. Kevin Sheehan, an executive at the Bank of New England relative to the check incident.

5) In November 1982, as a result of several factors set forth below, Ronald DeWolf, the oldest son of L. Ron Hubbard, decided to bring a “missing person” petition in Riverside Probate Court in order to obtain a judicial determination of his father’s legal status. I represented Mr. DeWolf in this petition. During the pendency of the petition, I was contacted by numerous individuals both inside the Church of Scientology and outside relative to circumstantial evidence suggesting that some of L. Ron Hubbard’s closest aides may have been involved with the

-3-

check incident. This information included the fact that one Jan R. Goergen, president of Intercap, Ltd., L. Ron Hubbard’s primary investment advisor, had received large sums of money from the same Hubbard account at the Bank of New England on which the 2 million dollar check was drawn, and that Goergen was involved in several gem transactions involving L. Ron Hubbard. Most significantly, the vice president of that company, David Delozier, had been indicted by an Arizona Grand Jury and Delozier was then being investigated for his contacts with organized crime.

6) During the pendency of the Probate petition relative to Hubbard’s missing person’s status, and in other litigation in the United States relative to Hubbard and the Church of Scientology, substantial evidence was produced that Hubbard’s name had been forged on several legal documents, that David Miscavige had allegedly notarized Hubbard’s signature during a period when both the Church of Scientology and Hubbard’s attorneys had claimed that there were no means to communicate with Hubbard, that no one had communicated with him since February 1980 and that no one connected with the Church of Scientology had seen him since that period of time. However, David Miscavige was then the highest ranking official of the Church of Scientology. Additionally, Mary Sue Hubbard had filed affidavits in various cases stating that she had not seen her husband since late 1979. However, evidence was adduced that she and her husband had purportedly signed powers of attorney together in July 1980, in Los

-4-

Angeles, approximately seven months after she had allegedly last seen Hubbard. The foregoing facts, together with the indictment of Intercap’s principal, David Delozier, together with the attempted passing of the two million dollar check, which was attempted at the same time that large sums of money were paid to Intercap by Hubbard, together with the fact that Hubbard had been defaulted in the Cooper case and was about to be defaulted in other cases, and lastly based on the fact that Hubbard’s own attorney, Alan Goldfarb, stated that Hubbard was a missing person, all warranted a finding that Hubbard was indeed missing. However, the day before the Riverside Probate Court was going to rule on Hubbard’s missing person’s status in connection with a motion for summary judgment filed by Mary Sue Hubbard, a declaration purportedly signed by L. Ron Hubbard was produced stating that his affairs were being handled by Author Services, Inc. Based on the declaration of L. Ron Hubbard, the Court adjudicated that L. Ron Hubbard was not a missing person.

7) During the pendency of the Probate proceeding relative to Hubbard’s missing person’s status, Hubbard’s attorneys retained Eugene M. Ingram. Ingram had previously been dismissed from the Los Angeles Police Department for pandering, pimping, conspiring to run a house of prostitution and aiding narcotics dealers. Ingram was also indicted for conspiracy to obstruct justice and on the pimping, pandering and prostitution charges, but the indictment was later

-5-

dismissed.

8) Between May 1983 and the present, Ingram, other private investigators including Andrew Palermo of Boston, Massachusetts, and various Scientology agents, have engaged in a consistent course of conduct to harass, intimidate and to “frame” me for the check incident. This conduct includes close constant surveillance by as many as four automobiles at a time following me in Boston, Los Angeles, and other locales, contacting my clients and informing them that I was a drug dealer, that I was connected to organized crime, and that together with my brother, Kevin Flynn, I had attempted to pass L. Ron Hubbard’s two million dollar check, for which I was going to be indicted, that I was going to be disbarred, and similar statements.

9) In January 1984, Ingram placed full-page ads in the Washington Post, the New York Times and the Boston Globe offering a one hundred thousand dollar reward for information leading to the arrest and conviction of the person or persons responsible for the two million dollar check incident. Individuals responding to the advertisement including several newspaper reporters such as Beverly Ford of the Boston Herald and Glen Fowler of the New York Times were told that the primary suspects in the check incident were Michael Flynn and his brother, Kevin Flynn and that evidence existed to prove that Kevin Flynn had trespassed into various areas of the Bank in order to steal checks of

-6-

L. Ron Hubbard. Ingram used the reward offer as a means to pay Ala Tamimi and his brother, Akil Tamimi a large sum of money (at least $25,000) for purposes of signing a false affidavit. Tamimi is currently wanted in four countries, and he has been indicted for fraud, and in two separate cases for perjury.

10) On Monday, July 23, 1984, Hubbard, and the Church of Scientology through its attorneys John Peterson and Donald Randolph, launched an international “black propaganda” campaign against me by filing the false declarations of Ala Tamimi and Akil Tamimi in the Los Angeles Federal District Court, issuing press releases throughout the United States which were sent to most of my clients and friends, and holding press conferences in Los Angeles, Boston, New York, and Clearwater, Florida. In the press releases, the press conferences, television and radio appearances, and in private interviews with individuals from the media, Ingram, Heber Jentzsch and John Peterson have falsely stated that I offered $400,000 to Ala Tamimi to forge one of L. Ron Hubbard’s checks. This media blitz to destroy my reputation based on completely false testimony of an indicted perjurer, (Tamimi) procured by Eugene Ingram, a known sex offender, and paid off by the Church of Scientology whose top eleven leaders have all been convicted of a variety of crimes for which they were incarcerated in Federal prison, is despicable beyond description. The media blitz was timed to defuse the recent judicial findings made by Judge Paul Breckenridge of

-7-

the Los Angeles Superior Court in the case of Church of Scientology v. Armstrong, C.A. No. C 420 153, wherein Judge Breckenridge ruled that Hubbard was a “pathological liar” and that the Organization was a “massive fraud” that engaged in a “form of blackmail and extortion against its members.” Similarly, a high court judge in London in a 50-page opinion, ruled that Scientology was “immoral, corrupt and sinister” and that its methods were “grimly reminiscent of the ranting  and bullying of Hitler and his henchmen.” In an effort to counter the growing world-wide awareness of Scientology, its methods and practices, Hubbard, Peterson, Ingram, and agents of Hubbard have implemented the familiar policy of “attack the attacker” for purposes of destroying my reputation based on knowlingly false testimony.

11) As a result of the constant, close and harassive surveillance, and as a result of the frame-up now being engineered against me, which is being disseminated in the news media world-wide, my family and I have suffered extreme emotional anguish, great loss of reputation, and substantial interference with my law practice.

12) The pattern of conduct now engaged in by Hubbard and his agents is similar to past activities they have engaged in against their critics, including the frame-ups of Gene Allard, Paulette Cooper, and Gabriel Cazares, the mayor of Clearwater, as well as numerous harassive activities taken against judges, lawyers, the American

-8-

Medical Association, reporters, and anyone who has attempted to speak out against Hubbard and his Organization. For some examples of this type of conduct, I have attached the “Sentencing Memorandum” of the United States Government hereto, as Exhibit A.

13) The Church of Scientology and Hubbard through its agent, Eugene Ingram, have also procured an affidavit from George Edgerly stating that I offered a bribe to Edgerly not to testify in his own defense in exchange for the payment of $500.00 per week to Edgerly’s wife, that Edgerly accepted this proposal and that I paid him $1,000.00 several weeks later. The statements of Edgerly are completely false. Edgerly has been convicted of first degree murder and is presently serving a life prison sentence in Massachusetts. He has also been convicted of fraud, and he had previously been indicted for the murder of his wife. He is a well-known and infamous criminal in Massachusetts. The fact that Hubbard and Scientology would accept as true the statements of a convicted murderer is indicative of the desperate measures that they are now willing to employ in order to rebut the truthful findings of Judge Breckenridge in the Armstrong case and of Judge Latey in England.

14) The Edgerly and the Tamimi affidavits both procured from infamous criminals by Eugene Ingram in exchange for the payment of large sums of money is a transparent attempt to frame me as Hubbard and his Organization have previously

-9-

done or attempted with Paulette Cooper, Gabriel Cazares, and Eugene Allard. See for example, documents attached hereto as Exhibit B, reflecting “operations” against the above named people by Scientology. Hubbard and his Organization have also attempted to victimized judges and lawyers who have fought to bring them to justice. See for example, the article attached hereto as Exhibit C, “Scientologists’ War Against Judges.”

In sum, the recent “attack” against me by Ingram and Hubbard based on the false declarations of convicted criminals, both of which are now serving time in prison, is transparent and outrageous. I have turned the entire matter over to the United States Attorney’s Office in Boston, Massachusetts and have requested that criminal charges be brought against Ingram, and others responsible for manufacturing this outrageous attempt to frame me.

Finally, the Church of Scientology and the Hubbards have unsuccessfully attempted to disqualify me from representing my clients in other Scientology related proceedings. I have attached hereto as Exhibit D, a copy of the Los Angeles Superior Court’s ruling in the recent case of Church of Scientology v. Armstrong, No. C 420 153, in which disqualification was denied. I have also attached hereto as Exhibit E a copy of the Court’s decision in that case.

-10-

Signed under the pains and penalties of perjury this 10th day of August, 1984.

[Michael J. Flynn]

Notes

 

  1. This document in PDF format.

OSA Press Release (August 1, 1984)

Author  Sylvia Stanard
Date  August 1st, 19841

WASHINGTON, July 31/PRN – House and Senate oversight committees are being asked
to investigate the refusal of Small Business Administration officials to probe allegations
that  some  investors  in  a  new  Washington  restaurant  may  be  connected  to  narcotics
trafficking,  according  to  the  Church  of  Scientology’s  Washington  attorney,  Robert  L.
Oswald.

Oswald said that the alleged drug connection was recently discovered during a probe into
an attempt to pass a counterfeit forged $2 million check against the personal account of
Scientology founder L. Ron Hubbard.

Oswald said investigators obtained a signed declaration from a former employee of the
bank  that  said  he  had  seen  Kevin  Flynn,  an  officer  of  General  Business  Management
Corp., in the high-security section of the Bank of New England in Boston, where checks
were allegedly stolen from Hubbard’s account for counterfeiting in 1982.

Oswald added that Flynn disappeared when the counterfeit attempt failed and resurfaced
a year later in Washington, seeking the SBA loan.

Oswald  said  that  the  investigation  of  the  financing  of  the  Washington  restaurant  –
Blossoms – led the investigators to:

– Paul Flynn, cousin of Kevin Flynn, who Oswald said is an imprisoned drug smuggler
who raised cash for Blossoms;

– Paul Flynn’s Florida attorney, Rex Ryland, who Oswald said was recently indicted in
U.S. District Court as the ringleader of a major drug-smuggling operation throughout the
United States.

–  Two  individuals  who  Oswald  said  invested  in  Blossoms  and  whom  he  described  as
having close ties to narcotics smugglers in California and Florida.

– Michael Flynn, Kevin’s brother, who allegedly orchestrated the $2 million forged check
using Boston organized crime figures, according to sworn declarations – submitted last
week to a Los Angeles federal court, and now in federal hands – by those who worked
with him on the alleged conspiracy. – Alleged misrepresentations to the SBA – detailed in Los Angeles federal court affidavits
submitted by civil rights attorney Don Randolph last week – by Kevin Flynn’s Boston
attorney Tom Hoffman that Kevin Flynn was not a defendant in any suit.

Flynn was allegedly being sued in two separate cases in California and Boston for false
imprisonment and kidnapping.

“The investigators are seeking the assistance of congressional oversight committees after
SBA officials who were given information about the loan misrepresentations refused to
pursue the matter,” Oswald said.

According to the church attorney, the $2 million check forgery was attempted in 1982
and then used by Boston attorney Michael Flynn later that year to argue that Hubbard’s
estate was being mismanaged and should be seized by a Riverside court.

Flynn brought the probate suit in 1982, representing Hubbard’s estranged son, Ronald E.
DeWolf.  Oswald noted that “the petition was thrown out of court a year later.”

Rev. Heber Jentzsch, president of the Church of Scientology International, said, “It will
take  the  full  resources  of  the  government  to  expose  why  the  SBA  granted  a  loan  on
deliberate false information and why Kevin Flynn withheld the information that he paid
known kidnappers to terrorize people for their religious beliefs.

Contact – Robert L. Oswald at 202-293-3204, Nick Beltrante at 703-360-4848, or Sylvia
Stanard at 202-797-9828, all of the Church of Scientology.

Notes

Declaration of John G. Peterson In Opposition To Motion For Attorney’s Fees (July 30, 1984)

PETERSON & BRYNAN
ATTORNEYS AT LAW
8530 WILSHIRE BOULEVARD, SUITE 407
BEVERLY HILLS, CALIFORNIA 90211
(813)659-9965

ATTORNEYS FOR: Plaintiff ,
CHURCH OF SCIENTOLOGY OF CALIFORNIA

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES

CHURCH OF SCIENTOLOGY OF CALIFORNIA,
Plaintiff

vs.

GERALD ARMSTRONG,
Defendant.

MARY SUE HUBBARD,
Intervenor.

CASE NO. C 420153

DECLARATION OF JOHN G. PETERSON IN OPPOSITION TO MOTION FOR ATTORNEY’S FEES

DATE: August 2, 19841; 2

TIME: 8:00 a.m. Defendant.

DEPT: 57

 

I, JOHN G. PETERSON, declare:

1. This declaration is submitted in opposition to defendant’s Motion for Attorney’s Fees, pursuant to Code of Civil Procedure Section 1021.5. Plaintiff, CHURCH OF SCIENTOLOGY OF CALIFORNIA, joins in and adopts by reference the Memorandum in Opposition to Motion for Attorney’s Fees filed herein by intervenor, MARY SUE HUBBARD.

2. Defendant’s motion can best be described as a poor attempt to add insult to injury. The defendant’s moving papers are an affront to the intelligence and integrity of this Court and the legal profession. This fee request is an insult to good intentioned legislators who enacted Code of Civil Procedure Section 1021.5, and is ironic since this case was pursued by GERALD ARMSTRONG’S attorneys primarily to use this Court as a discovery tool for other litigation and as an avenue for media coverage to extort settlement of other litigation against Mr. Hubbard and the CHURCH.

3. GERALD ARMSTRONG’S moving papers transparently and despicably use a quote from the Bible and a reference to Jonestown all on the front page. The papers go on to paint GERALD ARMSTRONG as a great protector of truth who risked life and limb to expose the “illegal and unconstitutional actions” of the plaintiffs all to a “significant public benefit and will further constitutional freedoms.” However, nowhere does GERALD ARMSTRONG ever state exactly what these public benefits are and how the fact that he stole documents and invaded a person’s privacy can further constitutional freedoms.

4. GERALD ARMSTRONG’S unsupported claims of public benefit should not come as a surprise since all of his trial allegations were never supported by evidence. GERALD ARMSTRONG’S attorney, on page 9, lines 20 through 28, and page 10, lines 1 and 2, attempt to explain the claim for public benefit and constitutional significance. After reading these lines several times, anyone with any first year of law school education would be compelled to conclude: (I) It is incoherent; (2) the person writing the lines does not understand constitutional law; (3) the person writing these lines is audacious in seeking fees for “legal” work; and (4) any response is impossible and would only dignify the lines by educating the person who wrote them.

5. The Court should examine what the attorneys for GERALD ARMSTRONG really sought in this case. They argued that there was a novel and heretofore unheard of in law defense called “justification”. This is, GERALD ARMSTRONG because he believed his life was in danger and that “harassing lawsuits” were forthcoming he could steal evidence and send it to his lawyer for use in this “potential” litigation. Defendant’s attorneys also asserted that if a person feels he may be physically harmed, he can steal materials and threaten to or even publicize these private materials as a deterrent.

6. While these purported “defenses” advocate the worst kind of lawlessness and vigilantism, defense counsel totally failed at trial to produce any evidence to support these novel defenses. First, GERALD ARMSTRONG had no reasonable belief he was going to be sued. ARMSTRONG himself testified that he knew of no one who had ever left the CHURCH and been sued. It is unreasonable to conclude and foolish to believe that the incident where his ex-wife told him to “get a lawyer” could mean anything other than advice that if ARMSTRONG wanted the photos returned, ARMSTRONG would have to sue the CHURCH. How strange that this is the person found to be fearful of his life and terrified of this organization, yet he was marching up to the CHURCH’S main offices shouting and demanding “his pictures”. Did defendant produce witnesses who said they had left the CHURCH, been critical and then been sued? No evidence was produced at trial, simply because none exists. The only thing the Court heard was the ravings of Flynn.

7. The only reasonable way to view the evidence clearly shows that GERALD ARMSTRONG stole the documents for use in his case against the CHURCH. He left the CHURCH, was unskilled, had no job and he visited Flynn, a notorious anti-Scientology plaintiff’s lawyer, who obviously conspired with ARMSTRONG to steal the documents for use in their cases. It is naive to think that ARMSTRONG’S massive theft of marginally relevant documents is simply overkill. That is also why Flynn argued so strenuously that the Court do his discovery for him and hold the documents for use in the Cross-Complaint and other litigation Flynn is involved in.

8. Defense counsel claim they have exposed the CHURCH’S policy of blackmailing former members by use of PC material (page 4, lines 9 through 10). Flynn argued that the CHURCH blackmailed people. However, no witness was ever produced who testified that they had been either threatened with or blackmailed by the CHURCH. Defense counsel, without legal support or evidence, asked this Court to find that the CHURCH practices this policy. Also, how could ARMSTRONG reasonably fear blackmail when he had no knowledge of any instances of it prior to his theft of the documents?

9. Defense counsel should not be compensated for conducting a heresy trial. This Court took judicial notice of the fact that Scientology is a religion and has rights under the First Amendment. This Court correctly ruled that it could not inquire into or evaluate the merits, accuracy or truthfulness of Scientology. Yet defense counsel sought to try the religion, its Founder and its policies. An example of the dishonesty of defense counsel is when they submitted to this Court Exhibit 500-HHHHH. This 1970, French Government investigation report was authoed by an ex-Nazi, who admitted doing no first hand investigation but relied on other sources. Also, defense
counsel failed to inform the Court that the French court had reversed its findings that Scientology was a fraud.

10. Julia Dragojevic’s dishonesty with this Court is shown by her Declaration. At the beginning of the trial, she said that GERALD ARMSTRONG needed Flynn because Flynn knew the case better, was more experienced and knowledgeable; and we were told she had never tried a jury case. Now she is the “Scientology expert” who is deserving of $150.00 per hour. She is even claiming $150.00 per hour for the time she just sat in the Courtroom during Flynn’s trial. Julia Dragojevic’s hours are inflated, refex time spent on other matters and not relevant to this case (see attached Exhibit “A”).

11. Attorney fees could not be properly claimed because GERALD ARMSTRONG thinks he exposed Scientology and L. Ron Hubbard as frauds. This Court clearly ruled in the beginning of the trial that Scientology was not on trial and that the Court would not consider the truth or falsity of the contents of the documents but only how they were relevant to ARMSTRONG’S “state of mind.” If the Court correctly followed this stated ruling, it could not properly reach any conclusions regarding Scientology or L. Ron Hubbard, and defense counsel could not receive fees for this improper presentation.

12. At the beginning of the trial, plaintiff’s counsel warned the Court about allowing Michael Flynn to conduct the trial. Plaintiff made a motion to disqualify Flynn. Plaintiff warned this Court that Flynn would conduct a heresy trial against the CHURCH and a personal attack against L. Ron Hubbard. Flynn did this under the pretext that he was going to show this person and organization had unclean hands and was not entitled to equitable relief.  Defense counsel argued that an old order by MARY SUE HUBBARD (GO-121669) gave her unclean hands that should deny her relief in this case. This ridiculous legal position is so contrary to black letter law that it does not deserve further comment. What is incredulous is that defense counsel seeks fees for presenting and arguing such a patently unsupported legal position.

13. Defense counsel point repeatedly to what they call the unclean hands of plaintiffs. This Court should be aware of the true character and motives of Michael J. Flynn.3

14. Plaintiff can not ignore Flynn’s efforts to prejudice this Court. Plaintiff also asks the Court to admonish counsel for defendant and their client to immediately cease these improper tactics, such as filing this fees motion, in their effort to prejudice this Court. Plaintiff also requests the Court to impose sanctions in the amount of attorneys’ fees incurred by plaintiff in replying to this frivolous motion for fees.

15. According to sworn declarations filed by attorney Michael J. Flynn of Boston, Massachusetts, he is an attorney of fourteen years experience in the State of Massachusetts who has tried 40 to 50 jury trials since 1972. Approximately one-third of Mr. Flynn’s career, since mid-1979, has involved litigating against the Church of Scientology and/or its Founder, L. Ron Hubbard. Mr. Flynn has been counsel of record, or counsel but not of record, in cases being litigated in at least the states of Massachusetts, New York, Florida, Nevada, Oregon and California involving the Church. He has made appearances as counsel pro hac vice in California three times in the past two years in suits involving either Mr. Hubbard or the CHURCH.

16. Due to Mr. Flynn’s legal attacks upon the Church of Scientology, its members, practices and Founder, investigative actions were undertaken by professional investigators. These investigations revealed the following facts:

17. In early 1981 a document that laid out a scheme to sell shares in litigation against the Church of Scientology was drawn up in the law offices of Michael Flynn in Boston.

18. This document referred to Flynn Associates Management Corporation, a for-profit Massachusetts corporation incorporated on August 28,1980 by Kevin Flynn, Michael Flynn and Cheryl Flynn. (See attached Exhibit “B”). Kevin Flynn is the brother of Michael Flynn and, at that time, worked as an investigator or researcher for Michael. Cheryl Flynn is Kevin Flynn’s wife.

19. The document stated: “Description: Flynn Associates Management Corp. is a management consultant company. It was organized to manage and oversee the operations and strategy of all Scientology litigation of Michael Flynn Associates.” (See attached Exhibit “C”). Other documents discarded at about the same time from Mr. Flynn’s office revealed that investors were to be promised “a $2.00 return for each $1.00 invested.”

20. Despite claims to the contrary by Michael Flynn, attempts were made to sell shares. In an affidavit executed on October 13,1981, Jim Grey of Clearwater, Florida, stated that on October 2, 1981, Michael Flynn “offered me the position of Trustee of Flynn Associate Management Corporation (FAMCO) in the Clearwater area and told me that as a trustee, I would receive, raise and disburse monies which would be used to file suits against the CHURCH OF SCIENTOLOGY around the country and therefor breack the CHURCH financially. ” (See attached Exhibit “D”).

21. A FAMCO document obtained around the same time, entitled “Scientology – Review and Planning”, demonstrated that the above was an “All Out” strategy which included: “a) closing orgs (orgs -Scientology organizations) b) adverse media c) adverse public d) Fed & State attacks”. Following this “all out” strategy, Michael Flynn and FAMCO engaged in the “adverse media” actions. From the deposition testimony of both Kevin Flynn and deprogrammer Joseph Flanagan in Garrison v. Kevin Flynn, et al. and Miller v. Kevin Flynn, et al. the initiation of the “adverse public” strategy was also implemented with the creation of new potential litigants. Kevin Flynn operating out of the 12 Union Wharf offices of FAMCO and Michael Flynn, solicited, organized and carried out several “deprogrammings” of Scientology parishioners. Following each successful deprogramming, Kevin Flynn had the victim transported to the Boston offices of Michael Flynn where the person was solicited to join the suits filed against the CHURCH they had just departed.

22. This all out effort continued on into early 1982. Affidavits show that through co-conspirators, Michael Flynn obtained access to the Bank of New England where Church of Scientology Founder L. R. Hubbard maintained a Cash Reserve Management account. The conspirators obtained copies of several of Mr. Hubbard’s checks, as well as several checks from an unrelated Florida company, and hired Ala Fadili Al Tamimi to counterfeit and forge these checks in the amount of $2 million.4

23. In a sworn statement, Ala Tamini has detailed how Mr. Flynn promised him $400,000 to pass the forged checks and pass the monies received to an overseas account established by Mr. Flynn in the Cayman Islands. Mr. Tamimi also related, in this same statement, the treatening remarks made by Mr. Flynn regarding the safety of Mr. Tamini’s family. (See attached Exhibit “E”).5

24. Following the failure of the attempt to forge and pass Mr. Hubbard’s checks, Mr. Flynn then filed suit on behalf of Ronald DeWolf, the estranged son of Mr. Hubbard, in Riverside, California. The suit claimed that Mr. Hubbard was a missing person under California probate codes and included charges that Hubbard’s business affairs were being mismanaged as evidenced by the failed attempt to forge one of his checks. Flynn accused Church officials of forging the check.

25. The investigation also discovered evidence that such behavior by Mr. Flynn was not limited solely to litigation against the CHURCH.

26. According to the Declaration of George Edgerly, executed on March 5, 1984, in Bridgewater, Massachusetts, Mr. Flynn both offered to pay Edgerly for his silence during two 1976 trials and made intimidating statements regarding the safety of Mr. Edgerly’s children.6

27. Mr. Edgerly was the defendant in a criminal case for fraud in Lowell, Massachusetts, in February and March, 1976. In approximately March, 1976, Mr. Flynn approached Mr. Edgerly and suggested that Edgerly not testify in his own defense, offering to pay Edgerly’s wife $500.00 a week for every week that Edgerly spent in prison. Edgerly accepted this proposal, was paid $1,000.00 by Mr. Flynn about two weeks later, and was sentenced to three to five years in prison.

28. Between October and December, 1976, Mr. Edgerly was again on trial, this time as a defendant to a charge of conspiracy. One of his co-defendants was represented by Mr. Flynn, both in this criminal suit and in a civil suit against General Motors Corporation.

29. Again, during this trial, Mr. Flynn proposed to Edgerly that he not testify and Edgerly agreed. Mr. Flynn promised Edgerly a share of the recovery from General Motors in exchange for his silence.

30. Later, during the trial, subsequent to Mr. Edgerly’s attorney being removed for a conflict of interest and Edgerly beginning to represent himself, Edgerly decided that he was being set up as the “fall guy” by Mr. Flynn and his co-defendants. He began aggressively cross-examining his co-defendants. They, and Mr. Flynn, became upset by this, resulting in Mr. Flynn’s offering to pay Edgerly $18,000.00 immediately. The money was not immediately forthcoming; Edgerly continued his aggressive cross-examination; and Mr. Flynn then mentioned that he knew of Edgerly’s concern for his family, that he knew Edgerly had a lot of children who were little and that “one of
them could be hit by a car.” Mr. Flynn made similar threatening remarks to Edgerly’s wife. (See attached Exhibit “F”).

31. A fee request by defense counsel is not supported by law as more fully discussed in the Opposition filed by intervenor. A request for fees is inappropriate in this case because of counsel’s conduct of this litigation and other attacks on Scientology. It is plain to see that this litigation was not brought and pursued for any public interest, but was part of a general plan of attack on Scientology and an attempt by Flynn to get documents for use in his
other litigation.

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

Executed on July 30, 1984, at Beverly Hills, California.

[signed]
JOHN G. PETERSON

Notes

  1. Judge Breckenridge discussed this declaration at an August 2, 1985 hearing in Scientology v. Armstrong: Reporter’s Transcript of Proceedings (August 2, 1984)
  2. This document in PDF format.
  3. See Operator: John G. Peterson.
  4. See Scientology’s Check Forgery Frame.
  5. See Declaration of Ala Fadili Al Tamimi (May 5, 1984).
  6. See Operator: George Edgerly

OSA Press Release (July 19, 1984)

Source  “PR Newswire”
Author  John Peterson
Date  July 19th, 19841

LOS  ANGELES,  July  19/PRN  –  Ronald  DeWolf,  the  estranged,  disinherited  son  of
bestselling author and Scientology founder L. Ron Hubbard, has paid $6,382.71 for legal
costs incurred during his unsuccessful 1982 attempt to take control of his father’s estate
for himself and Boston lawyer Michael Flynn, the church reported today.

While DeWolf’s allegations initially gained national media attention, the court threw out
his petition and ordered him to pay $4,723.97 in court costs for bringing the “groundless
case” to court. An additional $1,658.74 was charged and collected because DeWolf failed
to pay the initial costs promptly.

Church attorney John Peterson said that “Flynn and DeWolf toured the country with their
outrageous and scurrilous allegations which proved to be nothing more than attempts to
generate enough adverse publicity to influence the court and grab control of the estate.”

Peterson continued: “After hearing all of Flynn’s and DeWolf’s arguments, the judge not
only threw the case out of court as being completely without merit, but he also held Flynn
in contempt for violating court orders during the trial and ordered Flynn to pay a court
fine.  Flynn’s  client,  DeWolf,  not  only  lost  his  case,  but  had  to  pay  costs  as  further
mumiliation.”

Peterson  revealed  that  DeWolf  made  an  offer  to  pay,  following  a  Monday  hearing  in
Reno,  Nev.,  during  which  a  Nevada  district  court-appointed  special  master,  Craig  L.
Imara,  stated  he  would  authorize  a  motion  to  compel  DeWolf  to  disclose  all  of  his
personal and business financial records for the past five years.

According to Peterson, DeWolf had “dragged his feet from more than a year and claimed
he was unable to pay the court costs, saying that me was ‘destitute.’ Evidence, however,
had  been  uncovered  that  DeWolf  had  concealed  more  than  $60,000  in  cash  and  other
assets when he filed his then-third bankruptcy in April 1979.”

Contact – John Peterson for the Church of Scientology at 213-659-9965.

Notes