Mark Rathbun: The Juggernaut (May 28, 2013)

 

Chapter Twenty-One

THE JUGGERNAUT  1 2

Juggernaut:   in colloquial English usage is a literal or metaphorical force regarded as mercilessly destructive and unstoppable.   – Wikipedia

For all of his alleged faults, L. Ron Hubbard was a keen observer and writer on the human condition. He once noted that “the bank follows the line of attack.”   “Bank” is Scientologese for the reactive mind, the stimulus-response portion of the mind that seeks destruction of others for survival of self.   With the devastating strike upon Ron and Scientology delivered in Los Angeles, all roads to L. Ron Hubbard’s bunker led through Flynn and Armstrong. It seemed that anyone with a score to settle was drawn like a magnet to the duo. Those combined forces took on the appearance of an overwhelming juggernaut.

The DOJ duplicated Flynn’s latest legal tactic: ask courts in Scientology litigation to order the church to produce L. Ron Hubbard as the “managing agent” of the mother church. Flynn assisted the DOJ to procure sworn declarations from his growing stable of former high-level official witnesses in support of the move.

David Mayo, the expelled former auditor to L. Ron Hubbard and erstwhile top technical authority in Scientology, had created a thriving Scientology splinter operation in Santa Barbara, California. Former high-level messengers – including two former Commanding Officers of CMO Int (Commodore’s Messenger Organization International) served as executives of his operation.   Until the Armstrong affair, they had steered clear of the L. Ron Hubbard-bashing Flynn/ FAMCO circles. But by 1984 they were supplying declarations to the DOJ and Flynn in support of their motions to compel Hubbard into depositions in lawsuits across the country.

Breckenridge’s Armstrong case decision, bolstered by a dozen declarations by former Hubbard messengers and aides, made the allegation of Hubbard’s “managing agent” status virtually uncontestable. Miscavige and Broeker were clearly established as the last links to Hubbard, but they could not provide countering declarations because it would subject them to depositions – which would lead Hubbard’s enemies directly to him.

Worse, the Breckenridge decision destroyed any chance of winning, in courts across the U.S., our vast array of pending motions to dismiss Flynn’s lawsuits on the basis of First Amendment rights to freedom of religion. The twenty-one-page Breckenridge indictment was devastating to our three years of expensive efforts at positioning much of the Flynn litigation for pre-trial dismissal.

Worse still, the decision pumped new life into what we thought by then to be criminal investigations losing steam. The Internal Revenue Service’s Criminal Investigation Division (CID) had been actively investigating the church, as well as LRH, Pat and Ann Broeker, David Miscavige and other church officials as named targets for criminal charges. Until the Breckenridge decision we had kept the CID somewhat at bay through litigation combatting their summons power, and a team of lawyers attempting to negotiate with IRS counsel and DOJ officials. But our intelligence lines were reporting that the LA-based CID group was once again gearing up to indict Hubbard and his aides.

The Ontario Provincial Police had, after their March, 1983 raid, steered clear of targeting Hubbard. Now they were reconsidering, in light of the outcome of the Armstrong case.

Our intelligence network reported that Gerry Armstrong was feeling drunk with power, given the sudden attention he’d received and his new importance in the anti-Scientology community. It seemed Armstrong and Flynn had worked their way up to being the axle to which all anti-Scientology spokes were linked. Per reports, Armstrong was talking of bringing all Scientology’s enemies together in a concerted effort to take over the church. The man who had prevailed in his case because of his alleged “fear for his life” was beating his chest and promising to take the very life of our church, and convert all its assets to outside control.

Our only shot at staving off indictments against LRH across North America, and of keeping him out of the couple of dozen pending lawsuits was to take out the axle and so depower its spokes. It was this desperate state of affairs that drew me directly into the shadowy world of intelligence. Throughout his litigation Armstrong had remained in periodic communication with a Scientologist who knew a thing or two about intelligence. Dan Sherman had published a number of spy novels, and had struck up an acquaintance with Armstrong. Armstrong looked up to Sherman and envied his literary success and intelligence acumen. Armstrong believed that Sherman – like so many other Scientologists during the tumultuous early eighties – was disaffected with the church and no longer considered himself a member. In fact, Sherman was cultivating a friendship with Armstrong in order to glean intelligence from him about the enemy camp. Up through the trial their communications were infrequent and mundane.   All that changed when Armstrong became an overnight anti-Scientology sensation. Because of Armstrong’s newly won stardom, Sherman began giving him more face time. Armstrong began sharing some of the details of his activities as a coordination point for all camps inimical to the church, from the Ontario Provincial Police, to the IRS CID, to the DOJ, to the Mayo splinter movement. Armstrong asked Sherman to see whether he could locate some church insiders who might aid in a take-over coup inside the church.

Gene Ingram and I concocted a rather elaborate game plan.   Gene would tap one of his old LAPD comrades to obtain written permission to covertly video record conversations with Gerry Armstrong. Technically, it was a lawfully given permission since we had a witness attesting that Armstrong was suggesting taking over and destroying the church by questionable means.

Gene obtained a recreational vehicle which had a wide rear window with reflective coating, making it one-way vision. A high-powered camera could record what was going on outside without being seen. We planned to record meetings with Armstrong to obtain evidence showing that not only was he not afraid for his life, he in fact was a well-backed aggressor and an operative of government agencies out to get Scientology. After taking circuitous routes to lose any possible tails, Sherman and I met Ingram in the RV in Long Beach. We worked out every detail of Sherman’s cover. We would bring in a former GO operative and have Sherman introduce him to Armstrong as a church insider, plotting the overthrow of the Miscavige regime and willing to play ball with Armstrong, Flynn and their government allies. That would hopefully prompt Armstrong to repeat and elaborate on some of the provocative takeover and take-down ideas he had alluded to in earlier conversations.

The chosen venue for the meetings was Griffith Park, inside LAPD jurisdiction and with plenty of opportunities for positioning the RV to capture the action. Sherman met with Armstrong and whetted his appetite. He told him he had made contact with an ally who had a number of well-placed contacts, currently on staff in the church. He told Armstrong he could only be identified by his first name, Joey, for security purposes. Joey was formerly of the Guardian’s Office and was connected to a number of former GO people who were bitter about being ousted by Miscavige, and sympathetic to Armstrong and the Mayo splinter movement.   Armstrong was visibly overjoyed at this opportunity gratuitously falling into his lap.

Sherman arranged a meeting between Armstrong and Joey to take place on a park bench in Griffith Park. Joey wore an audio wire which transmitted the conversation back to the RV, parked a hundred yards away and video recording the event. Armstrong and Joey both wore sunglasses; both attempted to look as nonchalant as could be, as they introduced themselves.

Joey explained that there was serious disaffection within the church, and a forming cabal of veteran staff ready to take out Miscavige and the current management. He called this cell the Loyalists. Armstrong was clearly excited, and believed Joey’s cover – no doubt because of Sherman’s story-telling skills and credibility with Armstrong.

Armstrong shared with Joey the master plan, which he represented as his brainchild, along with Michael Flynn. He explained that the plan was backed by the Ontario Provincial Police, the DOJ and the IRS. Flynn would prepare a lawsuit on behalf of the Loyalists, asking the Attorney General of California to take the church into receivership on their behalf. The DOJ, FBI, and IRS would conduct a raid on church premises to get fresh evidence of illegalities, in support of the Loyalist action. The raid would be coordinated to coincide with the filing of the receivership action.   The public relations fallout and the possible arrests of leaders would all but cripple the church.

Joey played his role well, feigning fear and nervousness that Armstrong could make good on the government back-up. In order to prove his representations, Armstrong opened a notebook and started naming his government contacts, representing that each was briefed, coordinated and ready to roll with the plan. He cited the following agents as close personal friends and in constant contact and coordination with him and with Flynn:

Al Ristuccia – Los Angeles office of the IRS Criminal Investigation Division

Al Lipkin –  Los Angeles office of the IRS Criminal Investigation Division

Richard Greenberg – U.S. Department of Justice, lead counsel in defending civil litigation brought by the church against DOJ, FBI and IRS

Tom Doughty – DOJ associate of Greenberg

Al Ciampini – Ontario Provincial Police

Armstrong provided Joey with phone numbers for each, including home numbers for some – and urged Joey to get in touch with his team members from these agencies.

Over time, Armstrong told Joey that the IRS CID was the most active government participant, and served as the main coordination point between agencies. He told Joey the CID agents had been briefed about Joey and the Loyalists, and were excited and supportive. The CID would grant them informant status, offer immunity for any crimes they might commit in assisting the government, and had even talked of providing safe houses for insiders. Armstrong then asked   Joey to get his contacts to go into church files and find evidence of illegalities, so that the IRS and DOJ would know where to search. Joey then brought into the mix someone whom Gerry had known from his Sea Org days.   Mike Rinder was a Commodore’s Messenger who had once worked directly with Ron.   He was then heading up the U.S. branch of the Office of Special Affairs.   Joey introduced Mike to Gerry.   Mike reported to Gerry that the files were relatively clean – there were no big smoking-gun documents being created after the 1977 FBI raids. At this point Armstrong’s macho bravado provided what would be our greatest defense against the indictments being issued against Hubbard, Miscavige, et al.   Armstrong suggested that the Loyalists create evidence of illegalities and plant them in church files for the IRS and DOJ to find in a raid, and use against church officials.

All of Armstrong’s representations about government conspiracies to take down church leadership and close down the operation were duly recorded.

David Miscavige was ecstatic with the results. He had me make a presentation of the evidence to a team of criminal lawyers, assembled to represent L. Ron Hubbard, Miscavige, Pat Broker and Lyman Spurlock (Hubbard’s accountant at ASI) to prevent IRS CID indictments and convictions – the potential charges we took most seriously. These attorneys – most from white-shoe Washington, D.C. law firms – were scaring the hell out of Miscavige. They were suggesting the IRS CID case was so serious that they recommended working a deal with the IRS for Miscavige and Spurlock to do time in halfway houses, so as to prevent indictment of Hubbard.   At the root of the IRS CID case was the evidence of millions of dollars of church monies being funneled to Hubbard through fraudulent means. And at the heart of the case would be the infamous MCCS taped conference in which church attorneys and staff acknowledged the fraudulent nature of the transfers.

My presentation horrified the team of criminal attorneys. They were hired because of their conservative, Reagan administration contacts. They did not want anything to do with such an aggressive investigative move.   They were concerned about the propriety of the means Ingram and I had utilized to obtain the evidence, and thought it would reflect badly on their own reputations. One attorney who represented Miscavige personally took me aside, though. He said he did not know how to use it at the moment, but that the evidence I had obtained would ultimately save the day for Hubbard, Miscavige and the church.   Gerald Feffer was the former Assistant Deputy Attorney General for taxation during the Carter administration. He was becoming a dean of white-collar criminal case dismissal prior to indictment. He would become a senior partner in the venerable D.C. law firm Williams & Connally.   Gerry told me to work with some of our more aggressive civil counsel to figure out a way to make the information public, and he would use it to make the IRS criminal case go away.

Another disclosure from the Griffith Park meetings cut to the quick with both Miscavige and me. Armstrong had told Joey that another Department of Justice player was in on the grand plan to close down Scientology: Bracket Deniston III. Armstrong said that Deniston was not investigating to find out who attempted to pass Hubbard’s check, and he was not investigating the evidence we had provided to him.   Instead Deniston was out to nail our investigator, Gene Ingram. Deniston had represented to Armstrong that he was setting traps to nail Ingram and the church for attempting to frame Flynn with purchased evidence.

This was particularly disconcerting, given events in the check investigation while all this Armstrong business was going down.   After I had been ordered out of Boston by Deniston, I had been lured back in by a man being prosecuted by his office. Larry Reservitz had been charged in a case very similar to the one involving LRH’s check. One of Reservitz’s connections who had access to Bank of New England records had used his access to fraudulently transfer money from random accounts to Reservitz. While under indictment, Reservitz reached out to me for the $ 10,000 reward we had previously advertised in the New York Times, claiming he had inside information on the Hubbard case and could identify the inside man at BNE. We had a number of phone calls and several meetings attempting to negotiate the deal. The jockeying was due to my suspicion that Reservitz was shaking us down, and I was searching for facts that would indicate he knew what he was talking about. Reservitz was continually attempting to characterize my questioning as an attempt to make the deal an exchange of cash for handing us Flynn.

In the meantime, Robert Mueller, Denniston’s superior and head of the Boston U.S. DOJ office fraud division, had flown to Italy to visit Ala Tamimi. He bought Tamimi’s retraction of his original statement in exchange for dropping a number of outstanding indictments the DOJ had pending against Tamimi for a variety of fraudulent schemes he had previously executed. I attempted to confront Mueller with what we had learned, but he refused to meet with me. Deniston outright denied that any visit or deal had been carried out by Mueller. In either event, Tamimi’s retraction caused Miscavige to turn up the heat to get me to turn up fresh evidence of Flynn’s involvement in the crime.

I was caught between a rock and a hard spot. Miscavige wanted Flynn at any cost.   Yet I felt that Reservitz might be attempting to frame me for attempting to frame Flynn.   I walked a tight rope between pursuing the investigation to Miscavige’s required degree of aggressiveness, and not stepping over the line with Reservitz. I even visited the Boston FBI agent in charge of the Hubbard check investigation, Jim Burleigh.   I pointedly accused Burleigh of having covertly made a deal with Reservitz to attempt to sting me.   Burleigh brought in another FBI agent to witness his categorical denial that the FBI or DOJ had made a deal with Reservitz: “We would never cooperate with the likes of Larry Reservitz.” Deniston likewise denied that Reservitz was working for the DOJ.   Still, I had my suspicions, particularly when we learned Deniston had become pals with Armstrong and Flynn.

With the sharks circling in and our waning confidence in our civil lawyers (having their heads handed to them in the Armstrong case) and criminal lawyers (advising Miscavige that he resign himself to doing time, at least in a halfway house), Miscavige ordered I find a new breed of lawyer. He wanted someone tough as nails, not some nervous Nellie.   He wanted someone who could figuratively kick Flynn’s butt in court, and scare the hell out of his DOJ and IRS backers. After an exhaustive nationwide search and many candidates eliminated, I thought we had finally found our man – in, of all places, Boston.

Earle Cooley was bigger than life.   He was a big, red-haired knock-off of L. Ron Hubbard himself. His gravelly voice was commanding. His wit was sharp. He was perennially listed in The Best Trial Lawyers in America.   He could spin a yarn that charmed judges and juries and took easy, great pleasure in viciously destroying witnesses on cross examination.   After I had interviewed Earle and reported to Miscavige, I arranged for us to watch Earle in action.   Miscavige and I flew out to Boston to see Earle perform in a high-profile art theft trial. We saw him decimate a seasoned criminal government informant so thoroughly on cross examination that the fellow, in a trademark Cooley expression, “didn’t know whether to shit or wind his watch.” Earle’s client – whom the government had dead to rights, and who was as unsympathetic a defendant as could be – was acquitted by the jury.   We had found the horse for the course.

Earle was like a breath of fresh air to Miscavige.   He took a similar black-and-white view of matters – we are right and good, the enemy is wrong and bad. Miscavige had long since lost his patience and his tolerance for our teams of civil lawyers and the civil-rights-experienced civil-rights-experienced opinion leaders among them. He referred to them as the “pointy heads,” short for “pointy-headed intellectuals.”   To him, our only problem was our counsels’ timid, second-guessing, defensive frames of mind.   And Earle reinforced that view.   Cooley attended a few civil litigation conferences with our other counsel. He ruffled their feathers by readily agreeing with Miscavige’s simplistic sum-up of what was wrong and the solution to it, aggression. The existing lawyers’ nervous objections and eye-rolling reactions to Earle’s sermons only reinforced Miscavige’s view.   “They are nothing but a pack of pussies,” he regularly groused to me; “what we need is for Earle to sink his teeth into those Flynn witnesses and that’ll be the end of this nonsense.”

Miscavige was nothing if not resilient. While never giving a hint that the overridingly important goal was the attainment of All Clear, by late 1984 it was quite evident to all involved that we were fighting an entirely different battle now. It was a fight for survival. We were desperately staving off the barbarians storming the walls of whatever compound L. Ron Hubbard might reside behind. It was evident too that Hubbard himself might have quit fighting – we no longer received any dispatches from him about the legal front. He was only sporadically sending ASI advices concerning his personal business, and to the church about Scientology matters. Miscavige had a team feverishly marketing Hubbard’s new science fiction books, the Mission Earth series. He was putting just as much pressure on church marketing folks to market Dianetics: The Modern Science of Mental Health, the broad public re-release of the 1950 book that had launched the entire movement.   All titles were making it back onto the New York Times bestseller lists.   So the incongruity created another level of cognitive dissonance. How could government officials across the continent be so feverishly pursuing a man who was so wildly popular with the public at large?   It would be years before I would find out that the sales were given a mighty boost by teams of Scientologists sent out to bookstores to buy them in bulk.   In the meantime, Miscavige was adept at keeping me and the troops motivated, inferring that we were buying Ron time to bail out the church’s disastrous public image and to complete his final researches at the highest levels of Scientology.

With Miscavige’s solving of the “why” behind our failures to attain an All Clear – i.e., the outside lawyers’ blatant counter-intention to Hubbard’s advices on using the enemies’ tactics against them, only more cleverly and more aggressively – our defeat-battered hopes were rehabilitated. Earle Cooley, the great Scientology hope, would soon be unleashed.

Notes

  1. Rathbun, Mark (2013-05-28). Memoirs of a Scientology Warrior (pp. 255-64).
  2. GA: I mentioned Rathbun’s Chapter 21, which he titles “The Juggernaut,” in a recent letter to Dan Sherman. http://gerryarmstrong.ca/archives/1082 The whole chapter is Rathbun’s spin on the Armstrong Op, or more specifically the 1984 Griffith Park videotaping part of the op. The operation, which was clearly concocted to use or misuse the videos for nefarious purposes after the videotaping, still continues. Rathbun’s book shows the op continues by continuing it. Even though he calls it a memoir, and recounts different events or incidents in his Scientology career that appear unrelated to the op, the whole book is his spin on it. The book is also a fantastic late act, one more contemptuous fair game nastiness in the same old sick op.

    Most importantly at this time, Rathbun’s spin, and his facts propelling it, are virtually identical to the spin and facts the Miscavige Scientologists give to their description of these events in their black propaganda publications, in their filings in their legal proceedings, in their submissions to the IRS, or to governments and people around the world. The difference is that Rathbun says Miscavige ran and runs it all, and Miscavige and his corporate underlings either do not say or say the same thing.

Testimony of Jesse Prince (Volume 8) (July 11, 2002)

IN THE CIRCUIT COURT FOR PINELLAS COUNTY, FLORIDA
CASE NO. 00-5682-CI-11

DELL LIEBREICH, as Personal Representative of the ESTATE OF LISA McPHERSON,
Plaintiff,

vs.

CHURCH OF SCIENTOLOGY FLAG SERVICE ORGANIZATION, JANIS JOHNSON, ALAIN KARTUZINSKI and DAVID HOUGHTON, D.D.S.,
Defendants.

_______________________________________/

PROCEEDINGS: Defendants’ Omnibus Motion for Terminating Sanctions and Other Relief

TESTIMONY OF JESSE PRINCE1

VOLUME 8

DATE: July 11, 2002. Morning Session

PLACE: Courtroom B, Judicial Building
St. Petersburg, Florida

BEFORE: Honorable Susan F. Schaeffer
Circuit Judge

REPORTED BY: Debra S. Turner
Deputy Official Court Reporter
Sixth Judicial Circuit of Florida
_________________________________________________

KANABAY COURT REPORTERS
TAMPA AIRPORT MARRIOTT HOTEL (813) 224-9500
ST. PETERSBURG – CLEARWATER (727) 821-3320

Page 1008

APPEARANCES:

MR. KENNAN G. DANDAR
DANDAR & DANDAR
5340 West Kennedy Blvd., Suite 201
Tampa, FL 33602
Attorney for Plaintiff

MR. KENDRICK MOXON
MOXON & KOBRIN
1100 Cleveland Street, Suite 900
Clearwater, FL 33755
Attorney for Church of Scientology Flag Service Organization

MR. LEE FUGATE and MR. MORRIS WEINBERG, JR.
ZUCKERMAN, SPAEDER
101 E. Kennedy Blvd, Suite 1200
Tampa, FL 33602-5147
Attorneys for Church of Scientology Flag Service Organization

MR. ERIC M. LIEBERMAN
RABINOWITZ, BOUDIN, STANDARD
740 Broadway at Astor Place
New York, NY 10003-9518
Attorney for Church of Scientology Flag Service Organization

Page 1009

[… Other Court business]

THE COURT: Both sides can ask the witnesses if they have been keeping up with this, and I’ll have to decide what I’m going to do about it.

Okay. Mr. Prince.

(Mr. Prince took the witness stand.)

THE COURT: Good morning.

THE WITNESS: Good morning.

THE COURT: Okay. Day 31. This is the 11th, right?

MR. WEINBERG: Of the trial?

THE COURT: 7/11.

MR. WEINBERG: 7/11.

THE COURT: All right. You may continue, Counselor.

CROSS-EXAMINATION OF JESSE PRINCE (RESUMED)

BY MR. WEINBERG:

Q Now, in the vein that we just talked, the Judge

Page 1021

and I, have — since you have been back on the stand this week, have you met with any of the witnesses or prospective witnesses in this case?

THE COURT: Do you know who the prospective — does he know who they are?

BY MR. WEINBERG:

Q I think — well, the next witness is Frank Oliver, and then there’s Mr. Dandar. There’s some secret person that Mr. Dandar hasn’t told us about — maybe he’s told you — and the prior witnesses were Peter Alexander, what, Teresa Summers, Vaughn Young, Stacy Young, Bob Minton, other people — Brian Haney. Have you met with any of those people?

A Not anything for the purposes of — that’s been in relationship to this trial. I mean, I was here the day that Mr. Haney was here, and we had lunch when he was testifying. I think I was waiting outside the courtroom or something.

THE COURT: The real question is, Have you discussed with them their testimony or yours?

THE WITNESS: Oh, no.

BY MR. WEINBERG:

Q Have you discussed, since you’ve been back on the stand, your testimony with Mr. Dandar?

A No.

Page 1022

Q Or Mr. Lirot? I’m sorry. I had trouble with his name?

A No, Mr. Weinberg, I have not.

Q Or Ms. Greenway?

A No, Mr. Weinberg, I have not.

Q Okay.

A I followed the court instruction in that regard.

Q And have you had an opportunity to visit the — the —

THE COURT: Unless Ms. Greenway is a witness, she could technically — technically I suppose have chatted with her. If people under the rule —

First of all, he’s testified he ought not to be discussing his testimony; the Court instructed him so.

BY MR. WEINBERG:

Q Let me ask you this. I mean, have you eaten — I mean, have you visited with, you know, Ms. Greenway or Mr. Oliver or anybody like that?

A Yes.

Q Okay. Because they’re friends?

A Correct.

Q When’s the last time you saw Mr. Oliver?

A Last night.

Page 1023

Q What were you doing with him last night?

A We had dinner. I invited him to a barbecue.

Q Did you know that he was going to be testifying —

A Yes.

Q — after you?

A Yes.

Q And where was the barbecue?

A My house.

Q And who else was there?

11 A Mr. Lirot, Mrs. Greenway, my fiance.

THE COURT: It — really and truly, this is  not your business. What is your business is whether —

MR. WEINBERG: I was going to ask one last question.

BY MR. WEINBERG:

Q And you all didn’t talk about the case?

THE COURT: That isn’t the question either.

It’s whether he discussed anything about his testimony. I mean, they can talk about the trial.

They can say — we’re all crazy to think that when most people get together, they don’t say, “What do you think? Is the case going to be ready for trial?” But the question is what’s going on here.

Page 1024

BY MR. WEINBERG:

Q Did you talk at all about your testimony or Mr. Oliver’s testimony?

A No. I followed the Court’s instruction in that regard.

Q Now, I touched on this a couple of days ago, but I want to go back for just a minute and see if we can focus more on the dates. After you left the Church of Scientology at the end of October, beginning of November of 1992, there came a time when, in Minneapolis, you became employed by a company called G & B. Is that right?

A Correct.

Q And that was a company — is a company that is run by a woman named Dana Hanson. Is that right?

A Correct.

Q And she is a public member of Scientology?

A To my knowledge at the time, yes.

Q All right. And you’d started working for her in March of 1994, thereabouts, correct?

A I’d say that’s a fair estimation of when I started working for her.

Q And at first your then-wife had been referred to her to work, right? Is that how it started?

A I believe, yes. I believe you’re correct in that.

Page 1025

Q And the reference came from a staff member in the  Minneapolis Org?

A I’m not sure where the reference came from.

Q In any event, you began to work for this company, right?

A Correct.

Q And you stayed at the company until the fall of 1995, when you were fired, right?

A Incorrect. I was never fired from that company.

Q You left the company in the fall of 1995?

A Correct.

Q Now, during this period of time, Ms. Hanson was kind enough, for part of the time, to let you stay in her house. Right?

MR. DANDAR: Objection to relevancy.

THE COURT: Yes. Sustained.

BY MR. WEINBERG:

Q Well, during the time that you were employed by Ms. Hanson — oh, by the way, this company was run pursuant to Hubbard technology, correct?

A Not per se, but she wanted it to. She wanted me to run it according to Hubbard technology.

Q And —

A It hadn’t been like that before.

Q And briefly, that means what?

Page 1026

A Getting people to disclose intimate details about themselves because this was, you know, a Scientology belief that, you know, if you tell intimate details about yourself or things that you wouldn’t necessarily want made public, then it’ll somehow make you feel better and increase your production.

Q And —

A That’s one thing. Another part was to sit people down and have them study the writings of Mrs. Hanson concerning how the company should operate and make sure that they understood all the words that she had written.

And also, she wanted me to do like a class, a classroom for doing the TRs, the training routines that I mentioned earlier in my testimony that’s part of Scientology training —

Q Okay.

A — that kind of thing.

Q And the idea was the company would run more efficiently, correct?

A Correct.

Q Okay. Now, during the course of your year and a half or so with the company, there came a time when you admitted to Ms. Hanson that you had engaged in extensive unethical behavior, in violation of moral codes that were adhered to by Scientologists pursuant to this Hubbard

Page 1027

technology, correct?

MR. DANDAR: Objection. This is nothing but to try to embarrass and denigrate Mr. Prince —

THE COURT: What’s the point of this?

MR. WEINBERG: The point is that Mr. Prince said on direct that he couldn’t work because of the Church of Scientology, that he lost his job as a result of the Church of Scientology. That’s what he said.

THE COURT: That has nothing to do with this hearing. The objection is sustained.

BY MR. WEINBERG:

Q What was the reason that you left in October of ’95?

MR. DANDAR: Same objection.

THE COURT: I’ll allow that.

A I left because I didn’t want to practice — I didn’t want to do that — do the things, the Scientology things, in the company. I just wanted to be normal, just do what a company does, instead of adding a Scientology slant to it.

BY MR. WEINBERG:

Q All right. So the Church, no staff member, had anything to do with you being terminated from your job.

You just —

Page 1028

A I think I mentioned I was not terminated from my job, Mr. Weinberg.

Q When you terminated from your job, no staff member had anything to do with it.

A I couldn’t hear you. There was noise going on.

Q I said no staff member in any Church of Scientology had anything to do with you leaving your job. Is that right?

A No. That’s categorically false. Mr. Sutter from the Religious Technology Center, after I would not do the Scientological things in that company, together with Ms. Hanson —

THE COURT: This is just not relevant.

MR. WEINBERG: Okay. Well, I mean, a lot of that answer —

THE COURT: It is not relevant to this proceeding, so you’re not going to go into why he left the job. It just doesn’t matter.

MR. WEINBERG: Okay.

BY MR. WEINBERG:

Q Now, you said yesterday that you had — you accused the Church yesterday of having made you sign undated resignations, resignation letters, which were then dated on the date that you were busted from the RTC.

Correct?

Page 1029

A Correct.

MR. WEINBERG: Now, let me show you —

Do we have the resignation letters? Are they in evidence?

MR. DANDAR: While they’re looking for that, Judge, did you say this is Day 31?

THE COURT: If what Mr. Weinberg said yesterday, that that was Day 30, then this would be Day 31. I couldn’t keep up with it.

MR. WEINBERG: May I approach the clerk?

THE COURT: You may.

MR. WEINBERG: This is 242 (handing), your Honor.

BY MR. WEINBERG:

Q I’ve showed you what we’ve marked as 242 —

A Yes.

Q — Defendant’s 242. Can you look at those and tell me if those are copies of the three resignation letters which you signed on March 3rd, 1987?

A Yes, they are.

Q Now, you are familiar, are you not, with a dot matrix printer? Do you know what that is? Do you remember the printers back 13 or 14 years ago?

A Yes, I believe I know what you’re talking about.

Q Right. And this letter — you can tell that

Page 1030

these letters were typed on dot matrix printers. They were printed out on dot matrix printers. You can even see on the side, the column, some of the holes? Do you see that?

They line up exactly on the three letters, right?

A Okay.

Q And it’s impossible to have typed up a letter on a dot matrix printer years before and then run it back through and put a date on it years later. That’s impossible, isn’t it?

MR. DANDAR: Objection. Outside of his expertise.

THE COURT: Do you know the answer to that?

THE WITNESS: No. But I know the answer to why these documents have this date on here.

THE COURT: Okay. If he can’t answer that question, he can’t answer it.

MR. WEINBERG: I move these into evidence, your Honor.

THE COURT: All right.

THE WITNESS: Oh, can I have this?

MR. WEINBERG: Sure. She has it.

THE COURT: What is the number, please?

MR. WEINBERG: It’s 242.

BY MR. WEINBERG:

Q Now, in your direct testimony, you made a big

Page 1031

point about the CSWs, the completed staff work, you know, like the purchase orders. Do you know what I’m talking about?

A Yes, I do.

Q And —

A I didn’t make a big deal out of it. I think I explained it.

Q Well, the point was, you said that in order to — for the medical liaison office to buy, you know, chloral hydrate, you would have to have a CSW or purchase order issued. Correct?

A Right.

Q And then you drew some conclusion. Because there wasn’t any purchase order, your conclusion was that that hadn’t happened? Was that what your conclusion was?

A I do not believe that that was my conclusion.

Q In any event, you’re familiar, are you not, with cash floats? Do you know what that is?

A Sure.

Q And are you familiar with the policy that provides for a float for the MLO? Are you familiar with that?

A I am not.

Q Explain to the Court what a float is.

A Well, I mean, if you have a policy there, I mean,

Page 1032

I —

THE COURT: He just wants you to tell me what a float is, if you know.

THE WITNESS: I don’t.

BY MR. WEINBERG:

Q I thought you just said you did.

A Well, not in the — I don’t think — maybe I misspoke, because I don’t understand the context you’re talking about float here.

MR. WEINBERG: All right. I’ll have it marked.

Could you mark this as 243, I believe.

This would be 243, your Honor (handing).

THE WITNESS: Thank you.

BY MR. WEINBERG:

Q Now, I’ve handed you a — Defendant’s 243, which is Flag Order 3082R, November 15th, 1971, with regard to medical finance. And do you see that this policy reinstates in every Sea Organization the use of a $1,000 medical float? Do you see that?

A Yes, I do.

Q And do you understand what that means?

A Yes, I do. But this does not negate someone else that has a medical emergency, as stated in that CSW exhibit that we put in for medical emergencies, of what it has to

Page 1033

go through.

Q Well, do you understand that what this is saying is that for every Sea Organization, including — which would include Flag Services, correct, Fort Harrison?

A Correct.

Q Right. That for every organization, the MLO, the medical liaison office, has a $1,000 float from which they don’t have to issue these CSWs and purchase orders and can go get what they need? Do you understand that?

A Well, hang on a second, because I’m looking at this second page here, and it says since the medical officer has the authority in the Org more than anyone else under need of these purchases, he does not need division reapproval. He does not have to have a CSW for his money. Division 3 just disburses the money each time. A simple red purchase order stating $1,000 for a medical float is sufficient to get the money.

Now, what this is specifically referring to is a medical officer having this float, but there’s another policy letter in Scientology that’s in Division 3 that has to do with accounting. Even though this medical officer would have this float, he would still have to account in detail where the last $1,000 went as well.

Q Well, look at under “essential data.” Do you see where it says this policy — this medical float policy is

Page 1034

established to prevent the medical officer from having to spend much time or worry on finance?

A Yes.

Q Do you understand that the whole concept of every time I had to go get chloral hydrate for a parishioner that needed it, that I would have to fill out some CSW, that that might not be a very efficient way to help people and that that’s what this float policy is all about?

A Well, you know, I understand what you’re saying in theory and, you know, I don’t — I really don’t think it’s a common practice.

THE COURT: Are you saying that when you go back and get more — $1,000 float money that they’re going to want to see what you spent the money for?

THE WITNESS: Yes. Yes, your Honor.

THE COURT: And how are you going to account for that? With receipts or what?

THE WITNESS: Yes, your Honor.

BY MR. WEINBERG:

Q Now, have you ever been a medical liaison officer?

A No, I have not.

THE COURT: I mean, this sounds to me like a petty cash fund of sorts.

MR. WEINBERG: That’s exactly —

Page 1035

THE COURT: When you have a petty cash fund, you still — if it’s a $1,000 petty cash fund, you’re going to have to show somebody what it is you spent the money on.

MR. DANDAR: I also object. The last sentence on this document talks about it’s only for the crew. They hadn’t mentioned anything about public members.

THE COURT: Well, you can bring that up on cross-examination.

MR. DANDAR: All right.

MR. WEINBERG: I was just raising this because of the testimony on direct, that you needed a CSW. This policy says you don’t need a CSW.

THE COURT: I frankly didn’t even remember it, so . . .

MR. WEINBERG: You do now, right?

THE COURT: I do now.

MR. WEINBERG: And then I’ll just show you —

Then I’ll mark, just so it’s in the record the — as the next exhibit.

THE CLERK: 244.

MR. WEINBERG: 244, take one second (handing to Court and witness).

Page 1036

BY MR. WEINBERG:

Q The Modern Management Technology Defined: Hubbard Dictionary of Administration and Management. You know about that dictionary, right, Mr. Prince?

A Yes, I do.

Q If you go to “medical float,” do you see on page 329, it says: “With this float, the medical officer buys doctor-dentist-medical-health specialist visits and treatment, laboratory analysis, X rays, medical equipment essential for a person’s health, medicines, prescriptions, and transportation.” Do you see that?

A Yes.

Q So something like a prescription for chloral hydrate would be covered by the medical float, would it not?

A This references this same Flag order. I gave testimony that a Flag order has to do with Sea Org personnel. It has to do with people that are on staff in the Sea Org.

Q So — so the MLO officer has to get a purchase order to go get chloral hydrate for a parishioner who is staying at the Fort Harrison, but if he or she doesn’t — if a Sea Org member is at the Fort Harrison? Is that your testimony?

A My testimony is the evidence that you’ve given me

Page 1037

here states specifically that this is how it is done for staff members. The public, being a paying public, certainly have different policies.

THE COURT: To be candid with you, I think it’s been conceded that — by somebody that Lisa McPherson should not have been to the hotel. Hasn’t that been conceded?

MR. WEINBERG: Well, I don’t think conceded.

I think people were trying —

THE COURT: To suggest that it really ought not to have been taken care of —

MR. WEINBERG: It would have been a smarter thing to be in a different environment.

THE COURT: Right. So you have to assume that the medical that they’re talking about in this — I’ll ask Mr. Prince this.

You have to assume that normally it’s going to be Sea Org members who are going to be taken care of because they’re the ones that would be living in a Scientology facility.

THE WITNESS: Correct.

THE COURT: But at some place like Flag, where they have maybe — I guess you have to be a Sea Org member to come there and take the technology courses that they offered.

Page 1038

THE WITNESS: No, you don’t have to be —

THE COURT: Right. So if somebody is there — there, and they have to get a — I mean, I don’t know what — they get sick and somebody is called in and they need some minor medicine, I would assume that they would allow this policy to govern, rather than have to go through all the harangue of whatever it was you were talking about.

But I think that whatever it is, you’re going to still, nonetheless, account for whatever it is you bought out of your petty cash fund or your float fund or whatever you want to call it.

THE WITNESS: Sure. And the other thing, your Honor, is that in no way will a Scientology organization pay the medical expenses of a public paying staff member, a public person coming in, using services in Scientology.

You know, the money works the other way. The public gives the money to Scientology. Scientology doesn’t then —

THE COURT: Well, we know they were using Ms. McPherson’s money to pay for certain things because she eventually ran out.

THE WITNESS: Correct.

THE COURT: So presumably everything was subject. I mean, if she was really in a bad

Page 1039

situation, a psychotic, where she couldn’t — you know, they apparently were free to use her funds, I guess.

THE WITNESS: Yes.

THE COURT: So you can’t really tell us, under the circumstances that we’re dealing with here, whether chloral hydrate was necessarily purchased out of the float money or whether it was purchased with this CSW.

THE WITNESS: Correct.

THE COURT: Would that be fair?

THE WITNESS: Yes, your Honor.

MR. WEINBERG: Just a few more questions, one more area.

BY MR. WEINBERG:

Q Back to the gun situation just for a moment.

Yesterday when we talked about this or the day before — I’ve sort of lost count now — you sort of suggested that it was more of a — of a joke, that you really weren’t that serious.

THE COURT: What was a joke?

BY MR. WEINBERG:

Q That you weren’t really threatening anybody.

THE COURT: What are you talking about?

MR. WEINBERG: Oh, I’m sorry, the gun, when

Page 1040

he says he pulled the guns on David Miscavige.

A I didn’t say anything about a joke. I said I did it out of self-protection.

BY MR. WEINBERG:

Q All right. So —

A That’s the testimony that I gave from this stand.

Q Well, I thought I heard you say that you didn’t really threaten anybody.

A I can’t help what you thought you heard, but I can tell you right now that when — after — what I testified to in this courtroom is that after those people grabbed me and I got away from them, I went to my room and got these weapons to protect myself.

It wasn’t a joke to me at that point.

Q And when you first told — do you remember when you first told this story about guns? That was in the FACTNet deposition, which was the first deposition I think — was that the first deposition you gave after you became a witness against Scientology?

MR. DANDAR: Objection to form.

THE COURT: No, that’s all right.

MR. DANDAR: All right.

THE COURT: Overruled.

A I’m not sure.

BY MR. WEINBERG:

Page 1041

Q All right. Do you remember in that deposition that you said something to the effect that bodies were going to start dropping?

A If you have it, you know, I’d like to see it.

Q Okay.

A If you just have it, you show it to me, and I’ll tell you what I said.

Q We’ll play a short clip, you’ll have it, and then I’ll have a couple of questions.

A Okay.

HE COURT: A short clip from what? A deposition?

MR. WEINBERG: Of his deposition. It’s his deposition.

THE COURT: In this case?

MR. WEINBERG: No. It’s his deposition in the FACTNet case. It will take just a minute, I think.

MR. DANDAR: Apparently need it brighter.

MR. WEINBERG: I’m amazed she can pull this stuff up.

THE WITNESS: Right in this room, I’m having a difficult time. I think I’d better go around.

THE COURT: Sure. Wait a minute.

MR. WEINBERG: Wait just one second.

Page 1042

(The witness left the stand,)

THE WITNESS: Okay.

THE COURT: Okay.

(The tape was played as follows.)

FROM THE DEPOSITION OF JESSE PRINCE DATED AUGUST 20, 1998

A And I went to my room, where I had a loaded .45 and a loaded Mini 14, and I came back to David Miscavige’s office with those guns. And I said, “Which one of you wants to fuck with me now?”

BY MR. ROSEN:

Q And what happened? I’m sitting here with bated breath thinking — to hear the end of the story.

A Well, do you want me to tell it or do you want —

Q No, I’m (unintelligible) the answer to that question that you raised.

A Well, I’m confused now. What question did I raise?

Q You posed a question to Mr. Miscavige that “which one of you wants to F with me now?”

A Right. So at this point Vicki comes running out:

“Jesse, no, no, no, it’s all been sanctioned by Annie Broker. She knows about everything. And Pat Broker. She knows about everything. Don’t do this.”

Then here comes David Miscavige. He completely

Page 1043

changes his tune now: “Oh, Jesse,” you know, “we’ve been friends and we’ve gone through so much. Let’s not go here.

It’s a mistake what we’ve done here. I know you’re upset. Please let’s talk about it.”

And I stood there looking at them with my guns in my hand, wondering. You know, like you can pat a snake on the head, but as soon as you pull your hand back, he going to bite. And I was wondering if that was going to happen to me as I’m sitting here with these guns.

And, you know, David is like pleading. Then it turns into a situation like, “Well,” you know, “we’ve got lots of guns too.”

And I said, “What the hell do you all want to do, have a shootout? Because I’ve got guns here, and bodies are going to start dropping.”

(End of tape. The witness returned to the stand)

MR. DANDAR: I object. It’s apples and oranges. It doesn’t even go to try to impeach the witness.

MR. WEINBERG: Well, first —

THE COURT: I don’t know what the purpose was, so we’ll hear now.

BY MR. WEINBERG:

Q Yesterday or the day before, July 9th, when I

Page 1044

asked you the question about whether you threatened to kill Mr. Miscavige, you said, quote, “I didn’t threaten to kill Mr. Miscavige.”

Now, when you told that story to Mr. Rosen at that August 1998 deposition, you said in front of Mr. Miscavige, you know, “Bodies are going to start dropping,” or something like that. Right? I mean, you said that —

A The video speaks for itself, and I don’t contest it. I mean, that’s — what I said is what happened, is what I meant. So you can take it any way you want.

Q Now, when you said a Mini 14 —

THE COURT: A what?

MR. WEINBERG: A Mini 14.

THE COURT: What do we care about this, about these guns?

MR. WEINBERG: About —

THE COURT: About something that went on between him and — way back when.

MR. WEINBERG: No, it’s just the opposite, your Honor. We don’t believe this incident ever happened and that he just made this up for reasons that one can only imagine when he told this story for the first time in August of 1998. But, your Honor, I mean —

Page 1045

BY MR. WEINBERG:

Q Let me ask you. A Mini 14 is an assault rifle, right?

A Correct.

MR. WEINBERG: Mr. Bailiff, could I possibly have our model there?

This is just a replica.

THE COURT: Okay.

MR. WEINBERG: It’s plastic. It’s plastic.

It’s not real.

MR. DANDAR: I just wish — I just wish the St. Pete Times was here with their camera to see this.

I think this is an unbelievable game —

THE COURT: Is that an objection?

MR. DANDAR: — of showmanship. It’s irrelevant.

THE COURT: What is the point?

BY MR. WEINBERG:

Q (Showing) Is that what you’re talking about?

Something like that?

A Similar to, but not quite.

MR. WEINBERG: All right. I’m going to give you this back.

BY MR. WEINBERG:

Q And you still contend that that’s what you pulled

Page 1046

on Mr. Miscavige and the other twelve people that were there. Right?

A Mr. Weinberg, I stand behind the testimony that I’ve given about that incident in the past and anything I’ve said —

Q All right.

A — in this hearing.

Q And then they just let you go right back to your room and put the guns in your room?

A Correct.

Q And they didn’t take them away from you?

A Correct.

Q And they just stayed there for the next, what, five years?

A No. I eventually sold the Mini 14.

MR. WEINBERG: Okay. I don’t have any further questions, your Honor.

THE COURT: All right. Redirect?

MR. DANDAR: Yes.

REDIRECT EXAMINATION

BY MR. DANDAR:

Q Well, we ought to pick it up right where Mr. Weinberg just left off.

(Mr. Weinberg spoke to Mr. Dandar off the record.)

Page 1047

MR. DANDAR: Do you want me to wait?

MR. WEINBERG: That’s fine. I just don’t want to interrupt you.

BY MR. DANDAR:

Q When you had these two real guns loaded as you described when you were being, quote, busted, unquote, Mr. Miscavige came right up to you while you held the two guns in your hands, correct?

A Correct.

Q And did you or he laugh?

A Laugh?

Q Laugh.

A Like laugh?

Q Yes, like laugh.

A No.

Q Did Mr. Miscavige say — indicate to you any fear whatsoever?

A No.

Q And then you turned around and walked back to your room?

A Correct. I believe he may have even followed me there. And we then proceeded to that area of the ship where we saw the pictures with the swimming pool, with the mast, and we had a conversation there.

Q Did you sit around the pool?

Page 1048

A Well, actually, there’s an area inside that’s air-conditioned, has a bar in there, and we actually sat in there and drank cold water and ate fruit.

Q And when Mr. Weinberg — or, you said that Vicki Aznaran, the president of the RTC, told you that this had all been sanctioned by Annie and Pat Broker, did she accompany you to the RPF after that?

A Yes, and other people for sure.

Q Because she took the Annie and Pat Broker side, rather than the David Miscavige power struggle side?

A Correct.

Q You’re going to the RPF, Mr. Prince. Did it have anything to do with any mistakes you made in applying the tech of Scientology?

A Absolutely not.

THE COURT: What does this all have to do with anything I’m hearing?

MR. DANDAR: Just trying to straighten out some misconceptions. My computer just went onto standby. That’s not what I wanted to happen. All right.

BY MR. DANDAR:

Q Now, when you left Scientology, did you just walk out the door in ’92?

A No.

Page 1049

Q How did you leave?

A I had to basically sign a release saying that Scientology has never done anything wrong with me and has no liability for anything that I may be suffering then or could realize in the future and on and on and on —

THE COURT: Wasn’t that release introduced yesterday?

MR. DANDAR: Yes.

THE WITNESS: Yes.

THE COURT: So it said whatever it said.

MR. DANDAR: Well, I wanted to ask him a question about it, and you can see my paralegal is not here, so I’m flying.

BY MR. DANDAR:

Q That release says that you were releasing the Church of Scientology from any and all damages for valuable consideration. There’s two or three paragraphs that say that.

A M’hum (affirmative).

Q What valuable consideration did you receive from the Church of Scientology to sign that release?

MR. WEINBERG: It was asked and answered.

He explained —

THE WITNESS: No, I never answered this.

THE COURT: Just a second.

Page 1050

MR. WEINBERG: Objection, asked and answered

by Mr. Dandar. I didn’t go back into it. It’s beyond the scope. But he already — Mr. Prince already explained how much money he got in return for signing the release on direct.

THE COURT: He did?

MR. WEINBERG: Yes. He said —

THE WITNESS: No, I didn’t.

MR. DANDAR: Shhh.

MR. WEINBERG: I thought he said a thousand plus dollars.

THE COURT: I don’t remember it, so I’m going to allow him to ask it. I don’t remember it.

MR. WEINBERG: Okay. I might have brain drain.

MR. DANDAR: I think you’re talking about some meeting in December of ’94.

MR. WEINBERG: No, I don’t think so.

THE COURT: That was more than a thousand.

THE WITNESS: Twenty-seven.

MR. WEINBERG: I really think he did, but it doesn’t matter.

THE COURT: All right.

BY MR. DANDAR:

Q Well, did you receive anything of consideration

Page 1051

to sign those releases?

A I think I received $2,000.

Q Okay. From whom?

A Good question. Marty just handed me the money.

Q Well, do you have any idea why it’s not mentioned in the release?

A I do not.

THE COURT: Most releases don’t tell you what. Most releases say “ten dollars and other valuable consideration,” don’t they?

MR. DANDAR: Not the ones that I’ve seen, Judge.

THE COURT: Most of the ones I’ve seen do, because I always wondered why they pick ten dollars.

BY MR. DANDAR:

Q Mr. Prince, how is it that Ms. Dana Hanson wanted to — picked you to come into her public business and set up her business to run the Hubbard tech?

MR. WEINBERG: Objection as to competency.

I mean, how is it that this woman —

THE COURT: I’ll sustain that. Quite frankly, I suspect that he’s already testified he was one of the premier experts on the tech. So I mean, I think I can assume that.

MR. DANDAR: Okay. If you can assume that,

Page 1052

I’ll go on.

BY MR. DANDAR:

Q Now, Mr. Prince, you were —

THE COURT: I can’t assume that, but, I mean, that is the testimony that he has put forth.

MR. DANDAR: Okay.

THE COURT: So . . .

BY MR. DANDAR:

Q Mr. Prince, is there any other reason as far as you know — without telling us what other people said — is there any other reason as far as you know as to why Dana  Hanson hired you, other than your expertise on the tech?

A You know, there —

THE COURT: If you don’t know —

A I don’t know the reason.

THE COURT: Remember yesterday, that’s a perfectly valid answer in a court of law, “I don’t know.”

THE WITNESS: Yes. I don’t know of any other reason.

BY MR. DANDAR:

Q Mr. Prince, you wanted to tell Mr. Weinberg a little while ago why the date of March 3, 1987, appears on all three resignation letters which is Defendant’s Exhibit 242. Why does the date appear on there?

Page 1053

A Because after me and Mr. Miscavige had our little chat on the ship area after the gun incident, he said, you know: “We have your undated resignation, but just help us,” you know, “do everything right now.” You know: “We’re talking again. You’re going to take this fall; you’re going to do this. Would you please just do it again and sign these new ones?”

And I said, “Yes, I’ll do it.”

So that’s why these are signed this way.

Q So there exists other resignation letters that are undated?

A Yes, correct.

Q Have you seen those? Have they been produced to you ever?

A Not today.

Q Have you ever seen them before this?

A Sure.

Q Where?

A In the Religious Technology Center in my office, where I signed it. I also saw it in David Miscavige’s office on the day that I was removed from the executive position of Religious Technology Center.

Q Okay. So on the resignation letters that are in evidence, those are the ones you actually signed on March 3rd of 1987?

Page 1054

A Correct.

Q Okay. And you did that because your friend David Miscavige asked you to do it?

A Correct.

Q You weren’t threatened and forced to do it?

A Correct.

Q Were you being a good Scientologist when you signed that?

A Absolutely.

Q All right. Now, Mr. Houghton, who is a defendant in this case, who is in the MLO office, who is the one that came up with the idea of using a syringe to get aspirin and Benadryl —

MR. WEINBERG: Objection, your Honor. First of all, to the form; he’s just testifying.

Secondly, he’s misstating the testimony.

And thirdly, it’s beyond the scope of my cross-examination. I didn’t ask anything about Mr. Houghton.

THE COURT: I suspect he’s going to go back to the CSW that you felt compelled to raise in some fashion.

MR. WEINBERG: That’s fine. But then —

MR. DANDAR: How do you know that?

MR. WEINBERG: — I object to the form. Then I object to the form, as he’s just making a

Page 1055

speech.

THE COURT: Your objection to form is overruled because he’s not. He’s trying to provide some background to see if this witness can answer a question.

BY MR. DANDAR:

Q Mr. Houghton stated on page 71 of his deposition, where the question begins on line 18, as follows.

Question —

THE COURT: You folks back there, I can hear you clear up here, so it must be disconcerting to Mr. Dandar. So keep your voices down. Or you may step out of the room at anytime you need to speak in a loud voice.

Go ahead.

BY MR. DANDAR:

Q Question: “And where did you get the money to buy the prescription?”

Answer: “I got it from Alain Kartuzinski.”

Question: “And why did you go to him to get the money?”

Answer: “I didn’t have the personal funds to pay for it. I didn’t know. I don’t know exactly why I went to Alain. I don’t know what events led me up to getting the money from Alain, but I do know that’s where I got the

Page 1056

money.”

The question is, Is Mr. Kartuzinski, back in November and December of 1995, pursuant to his testimony in this case, part of the MLO?

A No.

Q What was he?

A He was the Senior CS —

THE COURT: I’ll tell counsel what you really don’t have to do is ask this witness that. I would know that.

MR. DANDAR: Sorry.

THE COURT: You can save a lot of this for closing argument.

MR. DANDAR: All right. There’s so much of that.

All right. That takes care of this part.

Let’s put this away.

THE COURT: Is this a witness, by chance, that has just come in?

A SPEAKER: (Shook head negatively.) No, your Honor.

THE COURT: Okay. Welcome then. I didn’t want somebody to come in that was maybe going to testify.

BY MR. DANDAR:

Page 1057

Q All right. Mr. Prince, in your tenure in Clearwater at the Lisa McPherson Trust, did you ever see the Church of Scientology picketing the Lisa McPherson Trust?

A Absolutely. You know — yes. Yes, many times.

Q Would they do it in front of the building, the office?

A They would do it in front of the building. They would do it inside the building. There’s many police reports of Scientologists running and screaming, disrupting activities. Again, my friend — my good friend, Judge Penick, can speak about that. And we watched videos for days. He would be a great witness about that.

Q Okay. All right. Do you know if anyone from the Lisa McPherson Trust hired private investigators to follow Church members around?

A Never.

Q Go to their homes and picket their homes?

A Never.

Q Pass out leaflets in their neighborhood?

A No.

Q Now, even though you left the Church of Scientology, have you ever divulged the confidential PC folders of the people that you either audited or were a case supervisor over?

Page 1058

A No, I have not, never.

Q Now, Mr. Weinberg went back and talked to you about your deposition that you gave on behalf of Religious Technology Center, where their former attorney, Joseph Yanny, was suing them or RTC was suing him. I’m not sure.

Do you remember which way that was?

A I don’t remember which way it was going.

Q Okay. But anyway, that was back in 1989, while you were still in your demoted status?

A You know, that had been some years past that, yes.

Q Okay. And when you met — you said you met with Mr. Earle Cooley, the attorney for RTC, before your deposition commenced?

A Correct.

Q Do you also recall meeting with a person by the name of Lynn Farney?

A Yes.

Q And the reason why I know this is it’s in your deposition copy that Mr. Weinberg gave me. Before today — in fact, as you sit here today, have you ever seen a copy of that deposition?

A No.

Q That deposition is dated September 11th of 1989.

Mr. Weinberg questioned you in your deposition in this case

Page 1059

that was taken in ’99, ten years after the RTC deposition.

Do you remember him questioning you about that deposition?

A Yes.

Q Did he give you a copy of that deposition back then?

A No.

Q Now, Mr. Farney, do you know — back at the time that he and Mr. Cooley, the attorney, met with you before the RTC deposition, do you know what position he had?

A Mr. Farney had been on a Rehabilitation Project Force with myself. Mr. Lynn Farney is a person that I used to create and establish the Office of Special Affairs at International. I had —

MR. WEINBERG: Your Honor, he just asked him what position he was in at the time that he supposedly had this meeting with him. Now we’re getting the whole history. Can he just answer the question, please?

THE COURT: Sustained.

BY MR. DANDAR:

Q At the time of his deposition, what was his position?

A Mr. Farney was working in OSA International. It was my belief that Mr. Farney was working in OSA International.

Page 1060

THE COURT: I’m sorry, I must have missed the beginning of this. What did you initially ask him? If Mr. Farney was —

MR. DANDAR: Part of the meeting preparing Mr. Prince for deposition in the RTC case.

THE COURT: Okay.

MR. DANDAR: RTC slash Yanny, Y-a-n-n-e-y.

THE WITNESS: Y-a-n-n-y.

MR. DANDAR: Okay. Thank you.

BY MR. DANDAR:

Q Mr. Farney is someone that you worked with in establishing the Office of Special Affairs?

A Correct.

Q Do you remember what year that was?

A ’84. ’83, ’84.

Q Okay. And are you aware that Mr. Farney is also the person who met with all the staff members after Lisa McPherson’s death?

MR. WEINBERG: Objection, your Honor —

A No, I was not aware of that.

MR. WEINBERG: Objection to form. He’s testifying.

THE COURT: True. Sustained. However, he wasn’t aware of it, so —

MR. WEINBERG: I understand. It’s just —

Page 1061

THE COURT: Remember, questions aren’t evidence, only the answers.

BY MR. DANDAR:

Q Now, in that meeting before your deposition, who instructed you to avoid telling the truth in your deposition?

A Mr. Rathbun and Mr. Cooley.

THE COURT: Is it Rathburn or Rathbun?

MR. WEINBERG: Bun.

THE COURT: Bun.

THE WITNESS: Rathbun.

THE COURT: B-u-n.

MR. WEINBERG: Right.

MR. DANDAR: And it’s Ms. Brooks, not Mrs. Brooks. Never mind.

MR. WEINBERG: R-a-t-h-b-u-n.

MR. DANDAR: I’m sorry. All right.

BY MR. DANDAR:

Q Did it surprise you when Mr. Cooley and Mr. Rathbun were giving you instructions on not telling the truth?

A No, it did not.

Q And why is that?

A Because it’s expected.

Q Why is that?

Page 1062

A Because you have to protect Scientology. You have to protect — you know, it’s like placing Scientology and Scientologists at risk being a crime. You have — you are expected as a member of the Church of Scientology to do and say whatever you have to to preserve Scientology, to preserve its leaders.

Q Is that a written policy?

A Probably.

Q And Mr. Yanny —

MR. WEINBERG: Well, your Honor, could we just identify that policy if that’s a written policy?

He said “probably.”

THE COURT: I assume probably he couldn’t tell us —

MR. WEINBERG: All right.

THE COURT: — or he would have given us a number.

MR. WEINBERG: Okay.

BY MR. DANDAR:

Q Can you tell us — without giving a number, but can you tell us generally what policy you’re talking about?

A As I sit here today without the materials, I could not, but I could certainly submit a declaration on it at a later point.

Q All right. What is an acceptable truth?

Page 1063

MR. WEINBERG: Objection, your Honor. I didn’t ask him about —

THE COURT: Right.

MR. WEINBERG: Beyond the scope.

THE COURT: I think he already — didn’t you already ask that on direct?

MR. DANDAR: I did, I did.

BY MR. DANDAR:

Q Now, you said —

THE COURT: Didn’t you also testify about the greatest good for the greatest number?

THE WITNESS: Yes, your Honor, I did.

THE COURT: So we’ve heard, I think, a lot of that.

MR. DANDAR: You have, I’m sorry.

BY MR. DANDAR:

Q Were you working for RTC at the time of that deposition in 1989?

A No, I was not.

Q Well, Mr. Yanny was the former president — or, attorney for RTC, correct?

A Correct.

Q Why was he suing RTC? What was that litigation about?

A You know, what I recall about that is that when

Page 1064

Joseph Yanny was hired, he was hired by myself and Ms. Aznaran as the lead counsel for the Religious Technology Center. When he was hired —

THE COURT: Who was? I’m sorry.

THE WITNESS: Mr. Joseph Yanny, the attorney that was hired.

THE COURT: Mr. Yanny was an attorney?

MR. DANDAR: Yes.

THE WITNESS: Yes.

THE COURT: Oh, okay.

MR. DANDAR: In fact, Judge —

Did we mark that as an exhibit at deposition? I’d like to have that marked as an exhibit since it was used. But Mr. Yanny is the one that actually took over questioning of Mr. Prince on the pertinent pages that Mr. Weinberg pointed out, although Mr. Yanny had his own attorney there. He took it over because Mr. Yanny — like me and Mr. Lirot. I have all this stuff in my head and I know what’s going on.

So the transcript — and I’d like to make that — and I will make it an exhibit if it’s not — shows that Mr. Yanny took over the questioning of Mr. Prince in that 1989 deposition.

THE COURT: Normally we don’t use as an

Page 1065

exhibit something that is just strictly used for impeachment purposes.

MR. WEINBERG: That’s why I didn’t do it.

THE COURT: Right.

MR. DANDAR: All right.

THE COURT: But if you want to make it an exhibit, why, that’s your — you can try to do that.

MR. DANDAR: All right.

BY MR. DANDAR:

Q Mr. Prince, you stated to Mr. Weinberg —

MR. WEINBERG: Your Honor, let me object. I mean, let me intercede for just a second. Just so it’s clear, Mr. Yanny was the party, was the plaintiff. And I think that was clear, but I’m not sure if it was.

THE COURT: I got it.

MR. WEINBERG: RTC was the defendant.

THE COURT: I didn’t realize Mr. Yanny was a lawyer. That’s why I —

MR. WEINBERG: Yes.

BY MR. DANDAR:

Q So you hired Mr. Yanny to be the attorney for RTC?

A Mr. Yanny was — yes, I did, to be the lead counsel for RTC. RTC had other attorneys, but Mr. Yanny

Page 1066

was hired to be the lead counsel for the Religious Technology Center at that time.

Q And is it for any particular case?

MR. WEINBERG: Object. Your Honor, I believe this is all beyond the scope. All I did was impeach him on his false testimony, which he admitted was false in that deposition. Now to get to the history of that lawsuit or Joseph Yanny I think is beyond the scope and not relevant to this proceeding either.

THE COURT: I would tend to agree with that, Counsel. You know, if you think it’s relevant and there’s something you can tell me about this, I’ll listen to you. But it’s just another one of these lawsuits, many, many lawsuits.

MR. DANDAR: Okay.

BY MR. WEINBERG:

Q Mr. Prince, do you know whether or not any of the allegations made between RTC and Joseph Yanny had anything to do with Mr. Yanny perjuring himself or suborning perjury?

THE COURT: That would be relevant.

A I don’t know. I don’t remember it.

BY MR. DANDAR:

Q You don’t?

Page 1067

A No.

Q All right. Now, did Mr. Yanny have anything to do with any of the Wollersheim litigation?

A Yes, he did. The Wollersheim —

MR. WEINBERG: Objection. That was a yes or no question, and to — if we get into the details, I’m going to object because it’s beyond the scope and it’s not relevant.

THE COURT: That would be true.

MR. DANDAR: Except he brought up the question, Mr. Weinberg did, about Mr. Prince’s testimony of destruction of the PC folders.

THE COURT: Oh, right.

MR. WEINBERG: And I impeached him on it with the Yanny deposition. He admitted it. He said he lied in the deposition. That’s all I used it for.

THE COURT: Well, I think at this point we’ll see what his question is.

MR. WEINBERG: Okay.

BY MR. DANDAR:

Q Was Mr. Yanny involved in representing RTC against Mr. Wollersheim?

A Yes.

Q And was Mr. Yanny involved when Mr. Wollersheim’s PC folders were destroyed?

Page 1068

A He had no personal knowledge of it.

Q Was any attorney for Scientology involved in that in any degree?

A The only one that I know of that would have had information about that would have been Mr. Earle Cooley.

MR. WEINBERG: Objection, “would have had.”

I mean, is he saying he did have?

THE WITNESS: I can explain if you would like me to.

BY MR. DANDAR:

Q Go ahead. Explain it.

A The decision to do this was made in a conference room at Author Services with myself, Vicki Asnaran, Mr. Rathbun was there, Mr. Cooley was there, and this all has to do with —

THE COURT: Mr. Miscavige was there?

THE WITNESS: Yes. Yes, your Honor. And this had —

THE COURT: Who else was there?

THE WITNESS: Mr. Miscavige, Mr. Lyman Spurlock I believe was there, myself, Vicki Aznaran, Mr. Cooley, Marty Rathbun.

And we were sitting in the conference room discussing it. Mr. Starkey may have been there, Mr. Norman Starkey.

THE COURT: This is when you discussed

Page 1069

destruction of these records?

THE WITNESS: Yes, your Honor.

THE COURT: So Mr. Cooley would have heard this? Is that what you’re saying?

THE WITNESS: Yes, your Honor.

THE COURT: All right.

BY MR. DANDAR:

Q And whose idea was it to destroy the records?

A As best as I can recall, it was Ms. Aznaran that said, “We have to destroy the folders.” Mr. Miscavige and everyone else agreed, so that’s what was done.

Q And did the folders contain information that would hurt the Church of Scientology?

A Yes, it — apparently, you know, that’s what they felt.

Q Okay.

THE COURT: That’s what you felt too. Right? You were there.

THE WITNESS: Well, I had actually never seen Mr. Wollersheim’s Preclear folders. I had never audited him.

THE COURT: But you didn’t have a problem destroying it.

THE WITNESS: Correct.

BY MR. DANDAR:

Page 1070

Q And why didn’t you have a problem destroying his records?

A Because, like every good Scientologist, you have to protect Scientology. You have to protect the integrity of Scientology, its leadership, so that it would carry on because it’s the greatest good. Scientologists believe that Scientology is man’s only answer to freedom.

Q Now, did you have to understand — I’m sorry.

Did I interrupt you?

A No, go ahead.

Q Did you understand at any point in time there was actually a court order to produce the entire PC folders of Mr. Wollersheim after the Church only produced a little bit of it?

MR. WEINBERG: Objection, relevancy. He’s already — and beyond the scope and all that —

THE COURT: Sustained.

MR. WEINBERG: — other stuff.

THE COURT: I’m sustaining it as beyond the scope.

MR. DANDAR: Okay. Well —

THE COURT: I mean, frankly, I think we’ve already been over this.

MR. WEINBERG: I do too. That’s why I objected.

Page 1071

THE COURT: I don’t need to hear it several times.

BY MR. DANDAR:

Q Well, Mr. Prince —

MR. WEINBERG: Just so it’s clear, our position is no PC folders were destroyed.

THE COURT: I understand that. I understand that too.

MR. WEINBERG: All right.

BY MR. DANDAR:

Q Did you understand that Mr. Wollersheim was — did allege that his PC folders were destroyed?

THE COURT: I mean, what are we using —

MR. DANDAR: I’m sorry.

BY MR. DANDAR:

Q Let me ask you this question. This is what I’m leading up to. Mr. Prince, you said that you lied in your deposition in the Yanny vs. RTC case?

A Correct.

Q And you said you sat in this meeting where Mr. Miscavige and Mr. Cooley was at this meeting where a decision was made to destroy evidence of PC folders of Mr. Wollersheim?

A Correct.

Q And Mr. Aznaran is the one who actually went out

Page 1072

to the paper mill and had it pulped?

A Correct.

Q And you did that because you were being loyal to the Church of Scientology?

A Correct.

MR. WEINBERG: Objection.

THE COURT: It’s irrelevant. Besides that, you’re doing the testimony, and he’s just saying yes.

You need to ask him, Why did you do that?

MR. DANDAR: And he’s answered that.

THE COURT: Yes, he has.

MR. DANDAR: I want to skip — the question is this.

BY MR. DANDAR:

Q Mr. Prince, are you testifying for the Estate of Lisa McPherson or for me because you’re loyal to the Estate, to the cause, or to Ken Dandar?

A No. I’m testifying because it’s the right thing to do. It’s very difficult to divine truth from — I’m not trying to be vicious here, but it’s very difficult to divine truth from Scientology. People that are currently working on this case, they’ll do anything they can to obstruct it. They’ll do anything they can to make sure —

MR. WEINBERG: Objection, your Honor.

A — that you can’t find out the truth, and —

Page 1073

MR. WEINBERG: He’s going on and on and on.

A — that’s why I do that.

MR. WEINBERG: Objection. He was asked a leading question, Are you testifying because you were loyal to the —

THE COURT: Actually, that wasn’t leading because his answer was no.

MR. WEINBERG: Well, I understand he said no. Now he’s going off into some big explanation.

THE COURT: That’s true. If you want to ask him why are you testifying, then he can go on with his explanation.

BY MR. DANDAR:

Q All right. Why are you testifying in this hearing?

A To give justice and equity a chance — a fair chance, to give all the information, to be able to give the full view of what’s going on. You know, I think it would be fair — it’s only fair that the whole picture is seen.

Q Mr. Prince, Mr. Minton and Stacy Brooks offered to continue to pay you $5,000 a month if you, quote, went down the road with them, close quote, and lied. Isn’t that true?

A I was promised a lot more than that.

Q What else were you promised to lie?

Page 1074

A Retirement.

Q Did they go into any specific details?

A Financial security that will retire me for the rest of my life.

Q Any dollar figures discussed?

A A quarter of a million. That’s normally what Mr. Minton does when he gives people money.

Q Would a quarter of a million be enough?

A For me to retire for the rest of my life? No. I think I’m too young. I would need more. I would have to need more.

Q And is there any doubt in your mind that Mr. Minton and Ms. Brooks proposed this to you, to lie, that they knew that they wanted you to lie?

A Absolutely. They knew they were lying. They knew we all had to lie. I mean, this is the only thing that they felt they could do to end it, disengage, to be done with it. I mean, there’s only so long you can wrestle with this demon.

Q Okay.

THE COURT: And you don’t need, Mr. Weinberg, when it’s your turn, to get up and respond to that. It’s for money, he testified. So I understand where both of you all are coming from here.

MR. WEINBERG: I wasn’t even going to make

Page 1075

that point.

MR. DANDAR: Well —

MR. WEINBERG: One short point on that.

THE COURT: Well, I saw you getting — fuming, and I was thinking, “Oh, dear.”

MR. WEINBERG: I was thinking about all the calls I have to return.

BY MR. DANDAR:

Q Mr. Prince, when you and I met at the mall with Mr. Lirot, Mr. Haverty, and your fiance and you wrote out what’s attached to your declaration, the handwritten note of April 14th, 2002, did I promise you money at all?

A None at all. Money wasn’t even discussed.

Q Did I pay you any money for writing that note?

A Absolutely not.

Q Did I promise to pay you money in the future if you wrote that note?

A No, you did not.

Q And isn’t it true or — what’s the reason why I gave you a retainer of 4,000?

A Because my time is as valuable as anyone else’s.

Q And you’ve been working on this — this hearing preparing documents for me?

A Correct.

THE COURT: You are back now as Mr. Dandar’s

Page 1076

consultant? Is that it?

THE WITNESS: Yes, your Honor.

THE COURT: And expert?

THE WITNESS: Yes, your Honor.

THE COURT: Okay.

BY MR. DANDAR:

Q I certainly haven’t promised you any retirement money, have I?

A No, you have not.

MR. WEINBERG: Your Honor, could we have a direct question instead of a leading question?

THE COURT: Sustained.

BY MR. DANDAR:

Q Now, Mr. Prince, when you were in LMT, did you know that the — and if I asked this, I’ll — I don’t remember asking this — do you know whether or not the LMT received an anonymous $300,000 from Clambake?

MR. WEINBERG: Your Honor, this is beyond the scope. I didn’t ask about it.

THE COURT: It’s beyond the scope. The truth of the matter is, rather than recall, if this is an area that he thinks is important, I’m going to let him get into it.

MR. WEINBERG: All right.

BY MR. DANDAR:

Page 1077

Q Did you know that they got money from Clambake?

A The only — you know, I found out about that —

MR. WEINBERG: Your Honor, could he just answer the question?

THE WITNESS: I’m trying to answer the question.

THE COURT: Counsel, just let it go, would you?

MR. WEINBERG: Okay.

THE COURT: We need to get through this.

MR. WEINBERG: All right.

A I found out about that whole deal with money coming from wherever it came from when Teresa Summers wrote her resignation letter to Stacy Brooks and I read it, where that was mentioned.

THE COURT: So the truth — you did not know about the 300,000, who it came from. Mr. Minton never discussed this with you —

THE WITNESS: Correct, correct.

THE COURT: — is that right?

THE WITNESS: That’s right.

BY MR. DANDAR:

Q And did you ever — while you were with LMT, did you ever hear the phrase “the fat man”?

A No.

Page 1078

Q Okay. Now, with this Key West fishing trip in the summer of 1999, as best I can phrase that, you had already been working for me for a few months, correct?

A Correct.

Q Now, the other people that showed up down in Key West, like Mr. Ford Greene, is that someone that you had ever seen me with before that fishing trip?

A No.

Q Did I go on the fishing trip?

A No, you did not.

Q Did I stay with you and Mr. Leipold and Mr. Greene and Mr. Haverty?

A No.

Q Oh, in that release that’s in evidence, Defendant’s Exhibit No. 231, that release language says that you are conceding or admitting that you were not harmed by the Church of Scientology. Do you have any reason to know why that was put in your release?

A Yes. That was put in the release for the same reason that Scientologists are asked to lie. It’s to protect Scientology at all costs.

Q Now, Mr. Weinberg asked you on cross if you had any personal knowledge of whether or not David Miscavige was physically at the Fort Harrison Hotel while Lisa McPherson was there in November and December of ’95. Do

Page 1079

you remember that?

A Yes.

Q Mr. Prince, would it matter where David Miscavige was physically located as to whether or not he would have knowledge and was personally involved with the care and treatment of Lisa McPherson?

A In my opinion, no.

Q Why not?

A Well, with the state of technology today, it makes no difference whatsoever. But also, based on past experience that I have had with Mr. Miscavige during the Wollersheim case, we were really just a short distance away, and while the hearings were going on, people were calling and reporting all the time. There’s no problem of getting an on-the-ground report immediately in any place in Scientology for Mr. Miscavige.

THE COURT: It is your opinion — I’m sure you’ve probably testified to this, but I can’t remember. I’ve heard from several people. It is your opinion that Mr. Miscavige was kept advised at all times of Lisa McPherson and her situation.

THE WITNESS: Your Honor, it is my opinion that once the situation where she got out of the car and was admitted to the hospital and it became a matter for Office of Special Affairs’ concern, then he

Page 1080

was — he knew about it.

THE COURT: Was it your opinion while she was admittedly PTS-III, undergoing introspection rundown, he would be kept advised of this and the progress?

THE WITNESS: Yes, your Honor.

THE COURT: Or lack of progress?

THE WITNESS: Yes, your Honor.

BY MR. DANDAR:

Q Now, Mr. Weinberg asked you to —

THE COURT: And that opinion comes from your having been around him when he was head of RTC?

THE WITNESS: Yes, your Honor.

THE COURT: Or ASI?

THE WITNESS: Both.

THE COURT: Okay.

THE WITNESS: Yes, your Honor.

THE COURT: When Mr. Hubbard was alive and was the head ecclesiastical leader of the Church, would he have been kept advised of PTS Type III introspection rundown?

THE WITNESS: He would have taken it over and dealt with it himself.

THE COURT: My question is, Would he have been kept advised?

Page 1081

THE WITNESS: Yes, your Honor.

THE COURT: Wherever it was being conducted?

THE WITNESS: Well, in all honesty, your Honor, I have to answer this and say that towards the end of Mr. Hubbard’s life —

THE COURT: Forget when folks say he was mad. I understood that.

THE WITNESS: Oh, okay.

THE COURT: When he was in charge of the Church and head ecclesiastical leader, would he have been kept advised of that type of situation, with either a public or staff member of Scientology?

THE WITNESS: Absolutely, your Honor.

THE COURT: Is there any question in your mind whatsoever about that?

THE WITNESS: None whatsoever. He would have taken it over and did it himself.

BY MR. DANDAR:

Q Now, Mr. Weinberg asked you to admit that there’s no written policy in the Church of Scientology to go out and kill somebody, and you said that’s true. Do you recall that?

THE COURT: I’m sorry, what’s that?

BY MR. DANDAR:

Q There’s no written policy in the Church of

Page 1082

Scientology to go and kill somebody.

A Well, there’s one thing that came into evidence here. It was the SP declare of — I think I read down the list. It was maybe eight people. And in that —

THE COURT: I’m sorry, what came into evidence? The, what, SP?

THE WITNESS: Yes, your Honor. It was an SP declare. It was a single sheet of a paper by L. Ron Hubbard declaring — I think it was eight people suppressive persons and declared them fair game. And then on one of the lines, L. Ron Hubbard gave instructions whereby he said any Sea Org member encountering any of the above persons is to use process R245 on them.
Process R245 —

MR. WEINBERG: Your Honor —

THE WITNESS: — is a process —

MR. WEINBERG: — your Honor, objection.

This was the document that was not admitted that Mr. Prince is now testifying about. It was the phony document.

MR. DANDAR: Phony —

MR. WEINBERG: And this is way beyond the scope of my cross-examination.

THE COURT: It’s not beyond the scope because you made it clear there’s absolutely no basis

Page 1083

upon which to make the assertions that he has. Now, if he has a basis, he would be permitted to testify. So it’s not beyond the scope.

MR. WEINBERG: This document that he’s talking about is not in evidence.

THE COURT: All right. If that’s true, then he can’t refer to that document.

MR. DANDAR: Okay. I thought it was.

THE COURT: Well, go find it. Let’s take a break and we’ll see whether it is or not. I couldn’t begin to tell you what documents are in and what ones aren’t. But the clerk would have them, whether they were admitted or not.

MR. DANDAR: Right. Before we take a break, let me ask one more question.

THE COURT: All right.

BY MR. DANDAR:

Q In your tenure at the Church of Scientology, did you ever see anything in writing called R245?

A Yes. It actually comes from a tape lecture. And I forget which tape lecture it was specifically, but it talks about R245 being an effective exteriorization process, whereby the person takes a .45, puts it to his head — a loaded .45, puts it to his head, pulls the trigger, and blows their brains out. That releases the

Page 1084

spirit from the body.

Q Is that a lecture by — who?

A L. Ron Hubbard.

MR. DANDAR: All right. Let’s take our break and let me find that.

THE COURT: All right. It’s 25 after.

We’ll take 15 minutes.

(A break was taken at 10:25 a.m. until approximately 10:55 a.m.)

THE COURT: All right. Where is Mr. Prince?

THE WITNESS: I’m here, your Honor.

THE COURT: You may resume the stand.

You all may be seated.

And, Mr. Dandar, did you find whether that was in or out of evidence?

MR. DANDAR: It was out. And for the clerk’s benefit, I still have it, so make sure I give it back to her. Somewhere. It’s on my table.

Here it is. I have this tendency of walking away with exhibits.

THE COURT: Are we having a light show?

MR. DANDAR: They had a TV or a signal that keeps coming in. We started to watch a soap opera there for a minute.

THE COURT: I see.

Page 1085

MR. DANDAR: But I have a videotape of a Boston picket. And the only reason I want to put this on is because Mr. Weinberg used Mr. Prince picketing in his cross-examination. But this shows what happened before the clip-it, the snippet, that Mr. Weinberg showed.

MR. WEINBERG: Just so it’s clear, this is a different day than the picket that I showed. But he can play it.

THE COURT: All right.

MR. WEINBERG: Ken (motioning to move).

THE WITNESS: It has no audio.

MR. DANDAR: Let’s stop it. Because I did that too.

MR. WEINBERG: Do you know the date of this?

MR. DANDAR: It’s in the beginning of the tape. Just a minute, and I’ll get everything here.

(The tape of the picket was played, entitled “Boston, September 10th, 1998, unedited.”

As noted below, the tape was not reportable and is not transcribed herein.)

THE COURT: Isn’t that pleasant.

MR. DANDAR: Judge, I just put that on to show you it’s not a one-way street.

THE COURT: I understand.

Page 1086

MR. DANDAR: Now, Mr. Prince —

THE COURT: Madam Court Reporter?

THE REPORTER: Yes, ma’am.

THE COURT: If you didn’t get all that, you can put in the record — because this tape can be put in — that it was just a lot of shouting and carrying on and that you did the best you could.

THE REPORTER: Thank you very much, your Honor.

MR. WEINBERG: Are you marking that as an exhibit?

THE COURT: Make a copy of it for the record, because there’s no way the court reporter could be expected to get all that. Talk about your proverbial everybody talking at once.

MR. DANDAR: That would be impossible to write down.

THE COURT: Yes, it would.

So I’m sure you did the best you could, but as far as I’m concerned, it could be basically said you must see the tape because it’s everybody talking at once and loud and obnoxious.

MR. DANDAR: Since Mr. Lirot is bringing in our next witness, I’m going to mark it as 135A because he has all of his exhibits premarked —

Page 1087

THE COURT: All right.

MR. DANDAR: — starting with 136. So the videotape of Boston, September 10th, ’98, is Plaintiff’s 135A.

MR. WEINBERG: Plaintiff’s 135A.

MR. DANDAR: Right.

MR. WEINBERG: It was 9/10?

THE COURT: 9/10/98.

MR. WEINBERG: And you received that into evidence, your Honor?

THE COURT: Yes.

MR. WEINBERG: Thank you.

BY MR. DANDAR:

Q Mr. Prince, the people that were engaging you and Mr. Minton in that picket, where were they from?

A Office of Special Affairs, Boston.

Q Now, Mr. Prince, you talked about the taped lecture series of Mr. Hubbard where he describes R245?

A Correct.

Q And have you seen that?

A I have seen that.

Q Or heard it, whatever it is. I don’t know what it is.

A Yes, I heard it before, read the transcript.

MR. DANDAR: Judge, I have a TV — which I

Page 1088

believe is a TV interview of Mr. Hubbard where he talks about this policy that he wrote called R245.

MR. LIEBERMAN: Objection, your Honor. It’s not a policy. It’s a mischaracterization of it.

Again, it mischaracterizes the policy of the Church of Scientology.

THE COURT: Well, if this is a lecture of Mr. Hubbard, why, what could be objectionable with Mr. Hubbard —

MR. LIEBERMAN: It’s the characterization of it as a policy.

THE COURT: All right. That will be sustained.

MR. LIEBERMAN: The characterization of what actually was —

MR. DANDAR: I apparently misspoke, I’m sorry. I’ll have Mr. Prince talk about what it is.

As soon as we identify — this is, I believe, Mr. Hubbard speaking, so . . .

THE COURT: What number is it?

MR. DANDAR: Exhibit number? This will be 135B.

THE COURT: Okay.

MR. WEINBERG: Could we just ask the relevance of playing a 1950 speech of L. Ron Hubbard?

Page 1089

MR. DANDAR: If he’s objecting because of the age of the speech, I think it’s quite clear that the age of any document Mr. Hubbard wrote or spoke about has no significance —

MR. WEINBERG: Well —

MR. DANDAR: — in the Church of Scientology. Everything remains the same.

THE COURT: What is it, though? I don’t understand. Is this a —

MR. WEINBERG: This is redirect.

MR. DANDAR: He brought this up on cross.

THE COURT: What did he bring up?

MR. DANDAR: Mr. Weinberg brought up on cross that there’s no written policy of the Church of Scientology about killing somebody.

THE COURT: Okay.

MR. DANDAR: He objected to that Flag order because it wasn’t properly authenticated. That’s fine. It spoke of R245. There’s another publication we’re going to bring in that is current and published by the Church of Scientology that does mention R245.

MR. WEINBERG: What I had asked, just so it’s clear, was there any policy to kill somebody, and he said no. But secondly —

THE COURT: I’m going to allow it, Counsel.

Page 1090

Overruled.

I hope this isn’t terribly long. Is it?

MR. DANDAR: It is. I think it’s 35 minutes.

THE COURT: I’m not going to listen to 35 minutes.

MR. DANDAR: All right. Maybe — what I would like to do over lunch is go down right to the specific area.

MR. LIEBERMAN: Well, your Honor, you see, that’s the problem. I understand your Honor doesn’t want to listen to 35 minutes. You shouldn’t have to listen to 35 minutes. But you cannot take a speech and say this is a religious policy and take two minutes out of an entire lecture about religious matters and then play it and pretend that that gives you any idea as to the context of what’s going on.

THE COURT: All right. I’ll listen to the whole thing.

MR. LIEBERMAN: I don’t want — I’m not urging you.

MR. DANDAR: Let’s do this after lunch. Is that all right?

THE COURT: All right. Let’s do it about 4 o’clock.

Page 1091

MR. DANDAR: Okay.

THE COURT: All right. We’ll do it after lunch.

MR. DANDAR: I hope Mr. Prince is still not on the stand by 4 o’clock. In fact, I think he should be over quite soon.

BY MR. DANDAR:

Q Now, talking about policies of the Church of Scientology, Mr. Prince, are you familiar with the additional steps in evidence, the policy of additional steps of an introspection rundown, where Mr. Hubbard writes that the introspection rundown can be deadly?

A Yes.

Q Are you familiar with search and discovery, the PSSSP course, where it states that some psychotics cannot be kept alive?

A Yes, I am.

Q How do you audit someone who is unconscious?

A Well, I can tell you a process. If a person is laying unconscious on a bed, you simply give them a command, “Give me that hand,” and then you actually execute that command by taking a person’s hand and putting it in your hand. And once you do that, you say, “Thank you.”

And then you put the hand back and say, “Give me that hand.” And you do that repeatedly, over and over.

Page 1092

Q Now, Mr. Weinberg asked you about the Teresita introspection rundown that you participated in — is it Soboba?

A Soboba Indian Reservation.

Q Okay. Is that — was your experience in that introspection rundown similar to what Lisa McPherson experienced?

A I don’t think so.

Q What were the differences?

MR. WEINBERG: Excuse me, your Honor. “What were the differences,” I mean, he doesn’t have any personal knowledge —

THE COURT: No, but I assume as consultant he read all of the depositions of those who did. So I suspect he can testify about that.

MR. WEINBERG: Okay.

THE COURT: Did you read the — did you read the depositions or the statements —

THE WITNESS: Yes, your Honor.

THE COURT: — from the persons who were attending Lisa McPherson?

THE WITNESS: Yes, and I read the notes as well.

MR. WEINBERG: On direct, he already did that. I didn’t ask him to — not — to do anything

Page 1093

different on cross, and now Mr. Dandar is asking him to do the same thing that he did on direct.

THE COURT: I don’t recall this on direct.

Overruled.

MR. WEINBERG: All right.

BY MR. DANDAR:

Q Go ahead. What is the differences? What are the differences?

A The difference being number one that Teresita was a staff member. Mrs. McPherson was a paying Scientology public. Teresita had no intentions of leaving staff or departing from Scientology. Lisa McPherson did.

Beyond that — and, again, there’s so many records. I mean, it’s stated that she was on the introspection rundown. Yet there is no program, there is no evidence, there’s no invoice, there’s no running form, there’s none of those things in evidence that would be in evidence if a person was on an introspection rundown in fact.

And — but as far as the manifestations of wanting to get out of the room that she was locked in, there’s certainly similarities there. But those are some of the differences.

Q When — to your knowledge, your personal knowledge with Teresita, did people talk to Teresita?

Page 1094

A Yes.

Q And — during the entire introspection rundown?

A I mean, no one held long conversations with her. But just basic civility. You know, you walk in a room and you see a person, you say hi. The person says something to you. You either acknowledge or answer the questions. You know, simple things like that.

Q Did you have to assist in any way or did you see others assist in any way Teresita in drinking water?

A Yes.

Q How did they do it?

A Sit down next to her with a glass of water with ice and a straw and sometimes they put — the girls would do it, and I would do it, you know, put your arm around her. Teresita seemed to like that. She was very childlike at times. And hold the straw to her face, and she would drink through the straw. When she would stop, you know, you would tell her: “You just need to drink a little bit more water because it’s good for you. It’s hot out here; it’s the desert. Be a good girl. Drink a little bit more.” And she would drink it.

Q And did you ever see her do that, as time went on in her introspection rundown, where she wouldn’t drink water on her own?

A Yes. But I certainly wouldn’t have any way of

Page 1095

making her drink water if she didn’t want to drink it.

Q Okay. What I’m saying is, did you ever observe her just pick up, without being coached or coaxed, pick up a glass of water or bottled water and just drink it by herself?

A Oh, sure.

Q Was that in the beginning, the middle, or the end, or throughout?

A You know, with Teresita, I don’t think the water was so much an issue because it — at a point in time she wasn’t aware of it, but as she went through introspection and we sat with her and made her drink it, that she came to understand that it was part of the routine, that she had to drink X amount of water every day or, you know, during certain time periods.

Q You said Mr. Hubbard’s doctor, Dr. Denk, came to see her?

A Yes, he did.

Q How many times?

A Once that I know of.

Q And he administered something to her?

A Yes, he did.

Q All right. After he left, did he leave any medicine behind or something for others to administer to her?

Page 1096

A Yes. There were some pills.

Q Do you know what they were?

A I do not. I do not recall what they were.

Q All right.

A But I know they were to make her sleep.

Q Okay. Did he leave instructions with people how often to give that?

A Yes, he did. I think we were to break the tablets in half, to not give her a strong dose, or even lesser amounts and crush it up and mix it in with a protein drink.

Q Do you know of any licensed medical doctor who came in to see Lisa McPherson?

A No, I do not.

Q Do you know if Teresita received a medical examination by a licensed medical doctor before or during — outside of Dr. Denk? Well, let me start — that was a terrible question.

In addition to giving Teresita prescription drugs, did Dr. Denk examine her?

A Yes, he did. He looked in her eyes, looked in her ears, checked her mouth, you know, pressed certain areas of her body to see if it was sore or she would react, check their feet, check their arms, check their back, check their neck.

Page 1097

Q Okay. Was anything else done as far as the medical exam outside of what you just said?

A Not — no, not — I don’t think so.

Q Okay. Now, you mentioned on cross-examination meeting with me and preparing that handwritten note that’s dated April 14th, 2002, the past year, a typed affidavit.

Why did you prepare a handwritten note?

A I felt it was important to preserve in some fashion what I had discussed with you, what had been going on. And since I had plans to investigate it further, in case something happened to me when I went off to see those people that at least there would have been something left written by me that would have indicated something was going on.

Q Now, the day that you prepared that written statement, that was the night you were supposed to meet with Mr. Rinder?

A Correct.

Q Did I assist you at all in preparing that written statement?

A No, you did not.

Q In fact, you purposely went away from me —

MR. WEINBERG: Objection as to the form, your Honor.

THE COURT: Sustained.

Page 1098

BY MR. DANDAR:

Q All right. How close were you to me when you wrote that document?

A I separated myself and went to a different table and did the document.

Q Okay. Now, in that affidavit that you prepared — you typed that all by yourself, correct?

A Correct.

THE COURT: Which affidavit are we talking about?

MR. DANDAR: The —

THE COURT: The last one?

MR. DANDAR: The last one, April 2002, that was actually executed —

THE WITNESS: May 1st.

MR. DANDAR: — May 1st.

THE COURT: What was the date of the last visit with Mr. Minton, Ms. Brooks? What was the date?

MR. DANDAR: What was the date? Was it that Sunday?

THE WITNESS: Yes, it was a Sunday.

THE COURT: The 14th.

MR. DANDAR: The 14th of April.

BY MR. DANDAR:

Q Now, in that affidavit, Mr. Weinberg pointed out

Page 1099

on cross that you put in the wrong date. You put in August of 2001, and Mr. Minton told you on the top of the garage about his last check to me of 500,000?

A Correct.

Q As you sit here today, what are you positive about in reference to that conversation with Mr. Minton?

A Everything that I’ve testified to.

Q When did it take place?

A It took place — you know, I can’t say the exact month, you know. I’m sorry, I wish I could do better with that. But I know it was very warm. I know that specifically it was a $500,000 check.

Q If I told you to assume that Mr. Minton only delivered to me one check for $500,000, was this conversation with Mr. Minton before or after he delivered the check?

A After.

Q And do you have any idea if it was before or after he gave a deposition in May of 2000?

A No, I have no idea.

Q Okay. Now, you mentioned that, when you met with Mr. Minton after he testified before Judge Baird on April 9th, you then telephoned Frank Oliver?

A Correct.

Q To ask Frank Oliver to call me to have me call

Page 1100

you?

A Correct.

Q Why did you go through that circuitous route?

MR. WEINBERG: Objection, because he did —

I asked him the same question, why did you do that, and he explained it.

THE COURT: I think it’s been asked and answered.

BY MR. DANDAR:

Q Okay. Why did you feel your home was bugged?

A Because a person that was hired by Scientology, a private investigator named David Amos, contacted me here in Clearwater, and I went to visit with him in Memphis, Tennessee, and he told me —

MR. WEINBERG: Objection. That’s hearsay, your Honor, whatever — he had some conversation with some guy David Amos.

THE COURT: It’s not introduced as to the truth of the matter asserted. It’s basically as to why he thought his house was bugged, not because it was bugged.

MR. WEINBERG: Well, then he had a conversation. We shouldn’t get into the details of the conversation, should we? Isn’t that just hearsay?

MR. DANDAR: It’s an exception.

Page 1101

THE COURT: I think it’s an exception. One of the exceptions I don’t really understand. I’m going to allow it.

A Mr. David Amos informed me that he had been hired by the Church of Scientology to surveil me, do surveillance on me, and to — what he was looking for, he told me, was that he had been briefed by his Scientology handlers in Los Angeles that Mr. Minton and I were involved in child slavery and we were — had child slaves that we were running around different countries. And Mr. Amos had a street ministry. He’s a very Christian man, and he has a street ministry where he helps abused children.

THE COURT: I don’t need to hear about all that.

THE WITNESS: Okay.

THE COURT: I need to hear why you thought your house was bugged.

A Anyway, he told me that he was specifically hired to bug my house in Chicago, and when I moved from Chicago to Clearwater, that he was hired to do the same there. And he agreed to come out and show me how he did it and where he did it. And I sent him plane tickets and I sent him money to come out to do that. And at the last minute, he got cold feet and didn’t do it. But I did report it to the FBI, the entire incident.

Page 1102

BY MR. DANDAR:

Q Did you go out and visit Mr. Amos?

A Excuse me?

Q Did you actually meet with Mr. Amos?

A Yes, I did.

MR. WEINBERG: Could we get a date of this alleged conversation?

THE COURT: You can when it’s your turn. I don’t care if it’s true. As far as I’m concerned, it’s only why he thought his house was bugged.

MR. WEINBERG: All right. That’s fine.

THE COURT: Which is an explanation as to why he didn’t call from his house, which is all that’s relevant to this.

MR. WEINBERG: But the testimony, of course, is that he did call from the house. He got the call at the house anyway. That’s what he said.

BY MR. DANDAR:

Q Did you go to see Agent Strope of the FDLE before or after you went to Dennis deVlaming’s office?

A After.

Q And did you go to Dennis deVlaming’s office before or after you met me at the mall on April 14th?

A Before. I did that the day of the testimony —

THE COURT: He’s already testified about

Page 1103

this.

MR. DANDAR: Okay. I wasn’t clear. Okay. All right. And I believe . . .

Your Honor, that’s all the questions I have.

I just want to be able to ask Mr. Prince a question based upon this videotape that I want to play of Mr. Hubbard.

THE COURT: Well, go on ahead and play it now. It’s a good time to do it.

MR. DANDAR: Okay. And I’m going to tell you in advance, Judge, I haven’t seen this tape before. So I’m going to play it. It’s represented to me as being Mr. Hubbard talking about this R245.

THE COURT: Well, Lord, let’s hope there’s something in there about it, something that’s relevant.

MR. DANDAR: That’s why I prefer not to do it right now. Let me —

MR. WEINBERG: Could he possibly hand it to us, see if we can identify it?

MR. DANDAR: This is a copy of a copy. This is not —

THE COURT: You couldn’t identify it.

MR. WEINBERG: I thought it might be something he had purchased.

Page 1104

THE COURT: No.

MR. DANDAR: No.

MR. WEINBERG: Okay.

THE COURT: I don’t want to leave here at 11:30 if you’ve got 35 minutes of tape you’re going to play. Are you done with Mr. Prince?

MR. DANDAR: Except for this.

THE COURT: All right. Well, put it in. Maybe Mr. Prince will let us know. I mean, I don’t know what Mr. Hubbard —

MR. WEINBERG: Could we just ask — where did Mr. Minton — Dandar get this, is all I’m asking.

MR. DANDAR: This is an interview of Mr. Hubbard from a Granada TV station.

THE COURT: It really doesn’t matter how he got it. He doesn’t ask you how you got your stuff.

MR. WEINBERG: No, no. I thought that this was the original lecture, but this is just a — this is actually just an interview, not the lecture.

MR. DANDAR: This is an interview —

THE COURT: We’ll see what it is, Counselor. Sit down.

MR. WEINBERG: All right. That’s fine.

MR. LIEBERMAN: At the expense of your Honor, I just want to point out that television can’t

Page 1105

possibly be policy letter of the Church of Scientology.

MR. DANDAR: We didn’t say it was a policy letter. It’s a lectured — of a tape lecture of Mr. Hubbard.

And I don’t know where this is taking me now.

MR. LIEBERMAN: It’s not a lecture, you said. It was a television interview.

MR. DANDAR: Well, we’ll see.

THE COURT: Surely you don’t all care if we watch Mr. Hubbard here for 35 minutes, do you? Then I wish you would sit down and let us watch it.

(The tape from Granada television was played as follows.)

THE NARRATOR: Tonight, Well in Action has tracked down one of the most elusive men on earth.

This was the end of our search, an ex-(unintelligible) for Royal Scotland, docked at (unintelligible — Deserta?), a small port in North Africa.

On board about 250 people, may be some sort of a crew, and this mysterious man. (Unintelligible) screen man thought he was a great scientist when (unintelligible). Everybody seems to think he’s a millionaire.

Page 1106

These are no ordinary seamen. Their allegiance and devotion to the mysterious man is total. To them, he is My Commodore. The man is L. Ron Hubbard, charmer, science fiction writer, and showman, the creator of Scientology, and the man who is pushing it into its new, more militant phase. He now requires that his crew must have training in judo and weaponry and must be ethically beyond reproach, tough, formidable, and effective. To them he’s a soldier.

One of them wrote: “That which I have really found is the nearness to the greatness, which is Ron, our founder –”

(The tape was interrupted.)

THE COURT: Stop this for a minute.

(Continuing with tape.)

THE NARRATOR: “– he, above all, My Commodore –”

(The tape was stopped.)

THE COURT: I don’t know what this is, but this is not Mr. Hubbard talking.

MR. PRINCE: There’s a little preamble, if you will, like a little introductory — this is an interviewer talking, and then Mr. Hubbard comes on.

THE COURT: Okay. Go on ahead.

Page 1107

MR. WEINBERG: Well, just so the record is clear, we do object to this, to the comments going in the record of this obviously reporter that was doing — I don’t think he was intending to do a favorable piece back in the ’50s with regard to the Church of Scientology. We object to his comments going into evidence. It’s like Dateline, NBC, or something, it sounds like.

THE COURT: I haven’t heard anything offensive yet.

(The tape was played as follows.)

THE NARRATOR: After several weeks of hunting for him, with the help of almost every radio station along the Mediterranean and beyond, Well in Action at last tracked Hubbard down. Just before dawn on a recent Sunday morning, Hubbard, who finds sleeping difficult, decided at last to speak. He spoke for a long, long time, about his money, his beliefs, his critics, and the new authoritarian structure of Scientology.

But first he spoke about his troubles with the British government. He put on his hat, he smiled, and he began.

MR. HUBBARD: Well, that’s very interesting.

Let’s correct the impression first. You said “you

Page 1108

were in trouble.” Let’s get my relationship to this completely straight. I am the writer of the textbooks of Scientology. About two and a half years ago or so, I even ceased to be a director of organizations.

The government — in the first place, I am not in trouble with the British government, not even faintly. If I went in today or tomorrow through immigration, they would tip their hats and say, “How are you, Mr. Hubbard?” just as they have been doing for years.

THE NARRATOR: The immigration officials might well tip their hats, but they couldn’t let him in. The day we filmed Mr. Hubbard, the home office decided that Britain would be better off without him.

Saint Hill Manor, England, Hubbard’s British headquarters —

(The tape was interrupted.)

THE COURT: Stop, stop.

(Continuing with tape.)

THE NARRATOR: — has made an income of something like one million pounds —

(The tape was stopped.)

THE COURT: This is not whatever you all said it was. This is more this other person than it is Mr. Hubbard. You — find what it is you want

Page 1109

play for me sometime and play it. I don’t want to hear all this other stuff.

MR. DANDAR: All right.

THE COURT: And your objection is sustained as far as this is not relevant. Whoever this is —

MR. DANDAR: That’s it right there? All right.

Go to the beginning of this. All right.

Sorry I had it wrong. Sorry.

(The tape was played as follows.)

THE NARRATOR: . . . simply to a layman what Scientology is.

MR. HUBBARD: I think that would be a relatively easy (unintelligible) because it’s factually a subject which is designed for the layman, and if you couldn’t explain it to a layman, you would have a very difficult time with it.

The subject name means “steel,” which means knowing how in the fullest sense of the word; “ology,” which is “study of.” So it’s actually study of knowingness. That is what the word itself means.

The —

THE NARRATOR: To me —

MR. HUBBARD: Yes.

THE NARRATOR: — to me that doesn’t mean

Page 1110

very much. (Unintelligible.) What does it do for you in theory?

MR. HUBBARD: It increases one’s knowingness. But if a man were totally aware of what was going on around him, he would find it was relatively simple to handle any outnesses in that.

THE NARRATOR: Even after twelve hours of talking, we never got an explanation from him that we could understand. In fact, Scientology is a fake, a religion —

(The tape was stopped.)

THE COURT: This is beyond —

MR. DANDAR: I apologize to the Court. Let me — let me find the spot that I’m trying to get to.

THE COURT: All right.

MR. DANDAR: And if Mr. Weinberg has recross —

THE COURT: Let’s get that done.

MR. DANDAR: I’ll try to get that done.

MR. WEINBERG: I take it the last comment was struck as well. Right?

THE COURT: It certainly was.

MR. WEINBERG: All right.

THE COURT: As a matter of fact, none of this is admissible at this point. I don’t know that

Page 1111

whatever it is they’re trying to find would be admissible.

But you try to find it, Mr. Dandar, over lunch break and we’ll —

MR. DANDAR: Thank you.

THE COURT: — listen to it, and then I’ll see.

MR. DANDAR: All right.

You may cross-examine on the redirect.

MR. WEINBERG: Thank you.

HE COURT: It was very brief.

MR. WEINBERG: Right. Excuse me.

THE WITNESS: You have to turn that thing off, because it keeps getting the radio station.

MR. WEINBERG: I thought you were yelling at me.

THE COURT: No. I thought you were yelling at me.

MR. WEINBERG: I looked up there to see if it was 4 o’clock.

RECROSS-EXAMINATION

BY MR. WEINBERG:

Q Now, you, the first time on redirect, said that Mr. Minton had offered you a lifetime pension to join him, whenever it was, April of 2002. Correct? That’s what you

Page 1112

said?

A Yes.

Q Now — and that typically —

THE COURT: He said “retirement.” I don’t know that if he used the word “pension.”

THE WITNESS: Right.

BY MR. WEINBERG:

Q What you meant was you’re going to be taken care of the rest of your life?

A I meant what I said, which is I would be retired.

Q All right. And that from your experience it was — the people that fell in that category were the people that got the $250,000. Right?

A I gave examples of other people that have — when Mr. Minton has given money to people to last them, this is what it was.

Q Right, like Mr. Dandar in March got the $250,000.

A No. That was for the case.

Q Now — now, you didn’t — do you remember that affidavit, the May 1st affidavit, that you were asked again about?

A Yes.

Q Nowhere in that affidavit do you say that Mr. Pension — Mr. Minton offered you retirement, $250,000,or a lot of money?

Page 1113

A Well, I’m not sure.

Q You didn’t say that in there, yes or no?

A I’m not sure. I would have to look at the thing.

Q Do you want to do that?

A Yes.

MR. WEINBERG: Unfortunately, we had left the documents up there, and they keep getting moved.

THE COURT: This may be it right here. I think I have it still.

THE WITNESS: I could look at that real quick, your Honor.

THE COURT: Do you want to look at my copy?

THE WITNESS: Thank you, your Honor. If you would just give me a moment to scan it.

A No, I don’t see that here. No, I didn’t include that in the declaration.

THE WITNESS: Thank you (handing back to Court).

BY MR. WEINBERG:

Q The truth is, you complained to Stacy Brooks that Mr. Minton had treated you differently and had just nickeled and dimed you over the years. Correct?

A I don’t —

Q Something like that?

A Not quite, no.

Page 1114

Q Well, you were unhappy because you had never been one of the recipients of one of those big $250,000 checks, right?

A I think that — no, that’s incorrect, because the context that we were speaking about is me selling my soul, lying, perjuring myself, lying about Mr. Dandar and whoever else Scientology would want to lie for, because, I mean, you know, they had their shopping list of everything they wanted to be gone. The Wollersheim was one; this was one.

I was supposed to do that. And, you know, I told him: You can’t do that. At no price can you make me turn on people that I have worked with for years for Scientology’s behalf.

And as a matter of fact, I think my statement was I will not help Scientology hurt or destroy one more person.

Q Now, this is a 16-page affidavit, chockful of all kinds of details. You even detailed that Mr. Minton had told you he offered Mr. Wollersheim $200,000 to try to settle that case, right?

A Correct.

Q You put that in there. But you didn’t think it was important to put in this affidavit that Mr. Minton had offered you a retire- — basically enough money so that you could retire? You didn’t think that was important?

A Well, I admit that that is something that’s

Page 1115

important here, but I did not put it there for whatever reason. I mean, you know, I put down what I put down. So if you want to give me a strike for that, okay.

Q All right. Now, you said today that — on redirect that those three resignation letters — remember the March 3rd, ’87, letters, the ones in your hand?

A Correct.

Q Right? You told Mr. Dandar on redirect that you actually executed those letters on March 3rd, 1987, right?

The ones in your hand.

A Yes.

Q And those letters were actually typed up on March 3rd of 1987, right?

A I have no idea when they were typed.

Q Isn’t that what you said on direct?

A No, I didn’t say —

Q Isn’t that what you said on redirect?

A No, I didn’t say who typed it, because I did not type this.

Q No, I didn’t say you typed them up. I said those were actually prepared, the whole letter —

THE COURT: He doesn’t know when they were typed.

MR. WEINBERG: No, that was his testimony.

THE WITNESS: No, it wasn’t.

Page 1116

THE COURT: He said that was what he executed.

BY MR. WEINBERG:

Q What you executed had the date on it already?

A Correct.

Q All right. So — that’s all I’m saying. In other words, the — you didn’t — you aren’t testifying that the — that the resignation letters that you signed were actually — and that, you know, had the date on it were actually prepared a long time before. That’s not what you’re saying?

A No. I made a distinction between the undated resignation that I had signed when I first assumed the position and these ones right here. And I stated why these ones were done, used, instead of the undated ones.

Q Do you remember in your affidavit — and the affidavit we’re talking about is the — that I’m talking about now is the August 1999 affidavit, which is the — the August 20th one, which is the — I call it the murder allegation —

THE COURT: Okay.

BY MR. WEINBERG:

Q — affidavit.

MR. WEINBERG: If I can approach —

THE COURT: You may.

Page 1117

MR. WEINBERG: — is probably the easiest way of doing this.

BY MR. WEINBERG:

Q Do you remember that in paragraph 14 of — this is the — just so you see it, is your August 20th, 1999.

A M’hum (affirmative).

Q You see, just read paragraph 14 down to — it’s short.

A Okay.

Q Read it to yourself.

A Okay.

Q Have you seen that?

A Yes.

Q Now, what you say in this affidavit in paragraph 14 on page 6 is: “I was forcefully removed,” which is, you’ve already testified, on March 3rd. Then you say, quote: “It is my belief that my undated resignation which I signed when I was appointed to the board was then dated and used to make it appear that I had resigned when I had not.”

So the testimony that you swore to in this affidavit that all that was — that all that happened was — that what happened was that a date was put on something that you had previously signed is absolutely contrary to what you just testified in this court.

Page 1118

Correct?

A What — what I wrote there, I wrote that as my belief. I didn’t recall this, but once it was shown to me and recalled to me, I testified about it. I’m not able to recall every little thing all the time. That was my belief at the time. But then when you showed me this, I remembered more about the incident that happened in 1986.

Q ’87.

A ’87, sorry, January of ’87.

Q So you were wrong in your August 20th, 1999, sworn affidavit?

A Right. In that — in that regard, in that particular regard.

MR. WEINBERG: Now, do you have — can I ask the clerk for a document, your Honor?

THE COURT: You may.

MR. WEINBERG: Plaintiff’s 15B.

I’m going to show him 15B, which is Teresa Summers’ letter.

THE COURT: For the record, you probably ought to say what you said to me.

I don’t know, did you get that, Madam Court Reporter?

THE REPORTER: Yes, ma’am, I did.

MR. WEINBERG: I guess I was speaking louder

Page 1119

than I thought.

BY MR. WEINBERG:

Q All right. I’m showing you the September 7th, 2001, Teresa Summers letter. And I believe you said on redirect that you had learned about the Clambake money and the issues with regard to the Clambake money in — for the first time — or issues with regard to LMT money for the first time in Teresa Summers’ letter, right?

A Correct.

Q And this is Teresa Summers’ letter?

A Yes, it is.

Q Now, can you look at page 1 of that letter.

A Yes.

Q Paragraph 1.

A Where it says, “Please be advised”?

Q I’m sorry, where it says –subparagraph 1. Do you see where the No. 1 —

A Yes.

Q Where it says, “The revelation –” This is a letter to Stacy Brooks from Teresa Summers, right?

A Correct.

Q “The revelation in your recent deposition that 800,000 was donated to the LMT from foreign sources and that every penny of that money was delivered to Bob Minton is very difficult to make sense of. For at least the last

Page 1120

six months, I have been told by you” all of the LMT funding — I’ve been told by you that all of the LMT funding came from Bob Minton.”

Do you see that?

A Yes, I do.

Q And that’s what you were told as well, correct, that all of the LMT funding came from Bob Minton?

A No, that’s not what I was told.

Q Now, let me — will you turn to the next-to-last page, please. The last paragraph of the next-to-last page, the one that says “in addition”?

A Yes.

Q Do you see that? Summers says: “In addition, Bob and Jesse were involved with bringing money into the country illegally, and you have never discussed this matter with me.”

A Yes.

Q Do you know what she’s talking about?

A No. And she doesn’t either. I never brought any money into the country illegally.

Q And Ms. Summers is someone that’s worked at the LMT?

A Correct. I can tell you what Ms. Summers is referring to, if you’d like to know.

THE COURT: It doesn’t matter.

Page 1121

THE WITNESS: Okay.

MR. WEINBERG: Doesn’t matter.

THE COURT: I have no idea why he bothered to bring that out. Maybe he wanted you to look bad or something.

THE WITNESS: Well . . .

BY MR. WEINBERG:

Q All right. Now, finally, you testified on redirect that the — you testified about the release that you executed with Mr. Rathbun at the end of October, the beginning of November, 1992. Do you remember that testimony?

A In November of 1992, I was not in the Sea Org. I was in Minneapolis, Minnesota.

Q What I’m asking you is, Do you recall on redirect you testified about the release that you executed at the time that you left the Church of Scientology?

A Correct.

Q All right. And your testimony is that you were under duress when you did that. Correct?

A Absolutely, yes.

Q And you executed it in a meeting — in a meeting with Mr. Rathbun, right?

A Correct.

Q Just you and Mr. Rathbun?

Page 1122

A No. There were other staff there.

Q Do you remember who else was there?

A I believe Mr. Sutter was there.

Q They were sitting — you were sitting in a meeting with him?

A If I say he’s there, that means that I can see him. That means we’re in the same room or something like that, you know?

Q So you’re saying he was there?

A Correct.

Q Okay. Well, let me show you two — and then it’s your testimony that, at the end, Mr. Rathbun made you put the wrong date on the release. Right? That was your testimony?

A It was convenient for them to have it as November, as opposed to October. I don’t know why. That’s what I —

Q But it was his origination, not yours?

A Correct.

Q Okay. I’m going to play you a short clip from the beginning of this meeting with Mr. Rathbun and then the end of the meeting with Mr. Rathbun.

A You know, I resent that unless you show the whole thing.

THE COURT: I think that’s fair. If you’re

Page 1123

going to show something and suggest whether he was or wasn’t under duress, you have to play the whole meeting.

MR. WEINBERG: It’s a long meeting. When I have is the clip, and, you know, we can provide the whole thing if you want it. But what I intend to do on this redirect is to show him the beginning of the meeting, which would indicate he was in the meeting, and the end of the meeting where he signs the —

THE COURT: All right.

MR. WEINBERG: — release. (Jesse Prince interview with Marty Rathbun, November 1, ’92, was played as follows.)

MR. RATHBUN: Okay. This is Marty Rathbun with Jesse Prince. And Jesse is going out of the Sea Org, and he agreed to have a —

(The playback was interrupted.)

THE COURT: Where is Jesse Prince?

MR. WEINBERG: He’s at the front.

(Continuing with tape.)

MR. RATHBUN: — knowledge that he might have about outstanding —

(The playback was stopped.)

MR. DANDAR: Does Mr. Prince know he’s being videotaped?

Page 1124

THE WITNESS: No.

BY MR. WEINBERG:

Q Well, you knew the meeting was recorded. A Not videotaped. And this is the first time I’ve seen this, and this is really gross. This is from a hidden camera.

Q Did you know it was being recorded or not?

A On tape. A tape recording was running, not a video.

Q Is this you?

A Yes, it is. I think it is.

THE COURT: Doesn’t look — I’m sorry, it doesn’t look like him.

THE WITNESS: Let me see. They’re full of tricks.

MR. DANDAR: Yes, why don’t you see.

THE WITNESS: I can’t tell.

MR. WEINBERG: Well, when you hear your voice, I think you can tell.

THE COURT: It does not look like Mr. Prince to me.

THE WITNESS: You know, I really resent this. This is secret. Taping this is exactly what I’ve been saying here. This is exactly what they do, the illegal surveillance. It’s just sneaky all the

Page 1125

time.

MR. WEINBERG: I asked him the question, Did you know you were being recorded?

THE COURT: He said no.

MR. WEINBERG: The answer is yes. I think he said yes.

THE COURT: He knew there was a tape recorder playing. He did not know he was being videotaped.

MR. WEINBERG: I guess the question, your Honor, is once you know that —

THE COURT: Quite frankly, I would resent the tar out of it. I hope there’s none of that going on ever. If you’re going to ever take a picture of me, you’d better tell me, because I would resent the tar out of it, to say nothing of the fact that I’m not certain it’s legal.

So whatever it is, Mr. Prince, you didn’t know anything about this?

THE WITNESS: No, your Honor. They did not have my permission to do this.

THE COURT: All right.

THE WITNESS: This is from a hidden, secret camera.

THE COURT: Go ahead and play it. We’ll

Page 1126

decide whether or not it’s legal or not.

(The playback continued.)

MR. RATHBUN: — cases going on or other matters that are involved, illegal or whatever.

MR. PRINCE: That’s right (unintelligible).

MR. RATHBUN: We’re here alone?

MR. PRINCE: That’s right.

MR. RATHBUN: Nobody else here?

MR. PRINCE: No coercion, nobody doing anything.

MR. RATHBUN: Okay. And you’re here of your own free will?

MR. PRINCE: That’s right.

MR. RATHBUN: There’s no — nobody is holding anything over your head?

MR. PRINCE: Yes.

MR. RATHBUN: There’s no threat?

MR. PRINCE: No threat, no pressure. I know exactly what I’m doing. I’m not sitting here (unintelligible) worrying about legal counsel knowing what the hell is going on. I know exactly what I’m doing in a professional capacity.

MR. RATHBUN: Great. Okay. The first thing we’re going to do was you’ve reviewed a couple of outstanding complaints, which were the RICO case,

Page 1127

which is our —

(The playback was interrupted.)

THE WITNESS: You know, I can’t hardly stand this. I can hardly stand this.

MR. WEINBERG: I was going to play the end of it.

THE COURT: Well, how in the world can you play something that suggested somebody wasn’t under coercion and not play it? How do I know —

MR. WEINBERG: If we can — we can play the whole —

THE COURT: This is the RICO case? What is your purpose in playing it?

MR. WEINBERG: Mr. Prince — Mr. Prince said that there were all kinds of people in the room, that he was being coerced, that it was forced. And there are no people.

THE WITNESS: They left the room.

MR. WEINBERG: Excuse me.

THE WITNESS: They had left the room. This was totally staged, to protect the Church, as I’ve given testimony before: Mr. Prince, this is what you need to do to leave our compound.

So I’m sitting here doing whatever they asked me to do to leave their compound. There’s been

Page 1128

articles in George magazine, press — Riverside Press, and my suit about the coercion. So, you know, and now you’re showing me a secret camera thing? I resent this highly. I really resent this.

MR. DANDAR: We object. And for the record, that sure doesn’t look like Mr. Prince.

MR. WEINBERG: Well, you know that’s you.

You’ve heard you.

THE WITNESS: Look, I resent this because it was done — not only did everybody leave the room —

THE COURT: You mean there were others there before this started?

THE WITNESS: Yes. Absolutely. They were all standing around in that room. And then it’s like, “Okay, now, let’s get this extra protection in.”

Signing a release for your client wasn’t enough. Signing a release saying that they didn’t harm me or damage me wasn’t enough for them. Now they’ve got to sit down and do this. You know? I really think anybody with common sense knows what’s going on here.

BY MR. WEINBERG:

Q When did you sign it? The beginning of the meeting or the end of the meeting?

A What, the release?

Page 1129

Q Yes.

A Probably at the end. I mean, they wanted me to — this is what I had to do to leave. I had been locked up —

THE WITNESS: Your Honor, I had to escape from Scientology. They didn’t even know where I went.

THE COURT: I don’t want to hear it anymore.

If he didn’t know about it, I don’t want to see it.

MR. WEINBERG: All right. That’s all my questions.

THE COURT: As far as I’m concerned, it can be stricken.

MR. WEINBERG: Those are all my questions.

THE COURT: All right.

FURTHER REDIRECT EXAMINATION

BY MR. DANDAR:

Q Mr. Prince, do you have that affidavit that’s —

THE COURT: And I might suggest in the future, if you’re going to videotape parishioners, that they be told about it. Quite frankly, that is not very churchly, to be candid.

MR. LIEBERMAN: Well, your Honor, just to be clear, it is the Church’s position that Mr. Prince absolutely knew this was being taped and the videotape introductory section of this before the interview

Page 1130

starts shows them setting up electronic equipment.

And it’s his testimony here that he didn’t know about it. That is not — we do not go along with that. I want the record to reflect that.

THE COURT: It’s very odd that someone leaving a Church has to be videotaped.

The truth is, it’s very odd he would have to sign a release. I mean, it’s all very odd.

However, it’s just my suggestion to you so that you don’t ever have to listen to somebody again that you might just want to put it in your release, “I understand that I’m being videotaped as I sign this.”

Then you won’t have to worry about it. I won’t have to hear somebody saying that he resents you taking my picture, for whatever reason.

THE WITNESS: Your Honor, this comes from —

THE COURT: I don’t want to hear any more about it.

THE WITNESS: Okay.

THE COURT: Go on ahead.

BY MR. DANDAR:

Q Mr. Prince, I want to direct your attention to paragraph —

THE COURT: I didn’t have to sign a release when I left my church, quite frankly. I left, I went

Page 1131

back, who cared?

BY MR. DANDAR:

Q Paragraph 15 of your —

THE COURT: Nobody ever sued me either. I never testified against them.

BY MR. DANDAR:

Q Paragraph 15 of your April 2002 affidavit, paragraph 15 — I don’t have the page numbers on my copy for some strange reason. But the second page of paragraph 15, could you please read the highlighted portion on — beginning —

THE COURT: Which affidavit is this now?

MR. DANDAR: The April 2002.

THE WITNESS: May 1st.

THE COURT: Okay.

A “Bob told me that I was the one making a big mistake, that if I walked down this road with them, they would hire an attorney for me and everything would be okay. Both he and Stacy Brooks told me of a new life, where we would all live in happiness and prosperity.”

BY MR. DANDAR:

Q What were the details of living a new life in happiness and prosperity?

A Retired, vacationing on the Islands regularly, running around the world, world travel.

Page 1132

Q When you — did the —

THE COURT: What paragraph was that?

MR. DANDAR: It was paragraph 15. If I had the exhibit, I could give you the page number.

THE COURT: It’s all right, paragraph 15.

MR. DANDAR: It’s the second page of paragraph 15. It’s a real long paragraph. It’s lines 19 through 22.

THE COURT: All right.

MR. DANDAR: And this wasn’t part of the recross of Mr. Weinberg, so if it’s objected to, I understand. But —

MR. WEINBERG: Well, I’ll object in advance.

BY MR. DANDAR:

Q Mr. Prince, when Teresita went insane or psychotic, did she do it like Lisa did, in the middle of the street, in public, or somewhere else?

A She did it — she was at a work station — oh, god, we were in a big time crunch. We were making the first —

THE COURT: We really don’t care about that. Was it out in public or at work?

THE WITNESS: No, it was at work.

BY MR. DANDAR:

Q So there was no public PR flap?

Page 1133

A Correct.

MR. DANDAR: And outside of wanting to play this videotape, that’s all the questions I have.

THE COURT: Okay. Anything further?

Thank you, sir.

THE WITNESS: Thank you, your Honor.

THE COURT: Your testimony is finished. You may step down.

I don’t know about that videotape either. I have no idea what that is either. So you find whatever it is you want to find, show it to counsel in advance, see what it is, and see if we can make some context out of it and see if it has any relevance.

MR. DANDAR: All right.

THE COURT: All right. Now, it’s noontime.

It’s 12:05. We’ll be in recess until 1:15.

MR. WEINBERG: How about 1:30?

THE COURT: No, 1:15.

MR. WEINBERG: Or 1 o’clock?

THE COURT: No, 1:15.

MR. WEINBERG: 1:15, all right.

(A lunch recess was taken at 12:08 p.m.)

_______________________________

Page 1134

STATE OF FLORIDA

COUNTY OF PINELLAS

I, Debra S. (Laughbaum) Turner, Registered Diplomate Reporter, certify that I was authorized to and did stenographically report the foregoing proceedings and that the transcript is a true record.

WITNESS MY HAND this 11th day of July, 2002, at St. Petersburg, Pinellas County, Florida.

_________________________________
Debra S. (Laughbaum) Turner, RDR
Court Reporter

Notes

Testimony of Jesse Prince (Volume 4) (July 9, 2002)

0467

IN THE CIRCUIT COURT FOR PINELLAS COUNTY, FLORIDA
CASE NO. 00-5682-CI-11

DELL LIEBREICH, as Personal Representative of the ESTATE OF LISA McPHERSON,
Plaintiff,

vs.

CHURCH OF SCIENTOLOGY FLAG SERVICE ORGANIZATION, JANIS JOHNSON, ALAIN KARTUZINSKI and DAVID HOUGHTON, D.D.S.,
Defendants.
_______________________________________/

PROCEEDINGS: Defendants’ Omnibus Motion for Terminating Sanctions and Other Relief.

Testimony of Jesse Prince.

VOLUME 4

DATE: July 9, 2002.

PLACE: Courtroom B, Judicial Buiding
St. Petersburg, Florida.

BEFORE: Hon. Susan F. Schaeffer, Circuit Judge.

REPORTED BY: Donna M. Kanabay RMR, CRR, Notary Public, State of Florida at large.

0468

APPEARANCES:

MR. KENNAN G. DANDAR
DANDAR & DANDAR
5340 West Kennedy Blvd., Suite 201
Tampa, FL 33602
Attorney for Plaintiff.

MR. LUKE CHARLES LIROT
LUKE CHARLES LIROT, PA
112 N East Street, Street, Suite B
Tampa, FL 33602-4108
Attorney for Plaintiff.

MR. KENDRICK MOXON
MOXON & KOBRIN
1100 Cleveland Street, Suite 900
Clearwater, FL 33755
Attorney for Church of Scientology Flag Service Organization.

MR. LEE FUGATE and MR. MORRIS WEINBERG, JR. and ZUCKERMAN, SPAEDER
101 E. Kennedy Blvd, Suite 1200
Tampa, FL 33602-5147
Attorneys for Church of Scientology Flag Service Organization.

MR. ERIC M. LIEBERMAN
RABINOWITZ, BOUDIN, STANDARD
740 Broadway at Astor Place
New York, NY 10003-9518
Attorney for Church of Scientology Flag Service Organization.

MR. STEPHEN WEIN
BATTAGLIA ROSS DICUS & WEIN
980 Tyrone Blvd.
St. Petersburg, FL 33743
Attorney for Mr. Minton.

0469

INDEX TO PROCEEDINGS AND EXHIBITS
                                                       PAGE  LINE
Recess                                                    535   10
Recess                                                    580   3
Reporter’s Certificate                          581  1

0470

(The proceedings resumed at 10:05 a.m.)

[… Other court business.]

THE COURT: Okay. I’m ready for Mr. Prince.

MR. DANDAR: All right. Thank you.

THE COURT: He’s still under oath. Same oath he’s taken. You only have to take it once.

You may continue, Mr. Dandar.

MR. DANDAR: Thank you.

THE COURT: Mr. Wein, you’re going to hear some unusual evidentiary rulings here, because we’re dealing with things like, perhaps, state of mind of your client. However, you don’t have — you’re  just — your client is nothing but a witness in this hearing. Therefore, as I told Mr. Battaglia yesterday —

MR. WEIN: I understand I can listen but I  shouldn’t be standing up and objecting.

THE COURT: That’s correct.

And you might think, “What in the world kind of

0499

rulings is she making? She doesn’t understand anything about the rules of evidence.” This is an unusual hearing with unusual rules, and we’ve got some objections that have been made and will be preserved, that have been made, First Amendment objections, expert objections, stuff like that, that are preserved. So you might hear triple hearsay come in in this hearing. It’s just an unusual hearing. So —

MR. WEINBERG: So it’s both the lawyers that aren’t objecting —

THE COURT: Yeah. When you hear that —

MR. WEINBERG: (Inaudible.)

THE COURT: When the lawyers don’t object —

MR. WEINBERG: (Inaudible, simultaneous speakers.)

THE COURT: — just understand that we’re involved in somewhat of an unusual hearing, and I’ve made some somewhat unusual evidentiary rulings already. So we’re —

MR. WEIN: Yes, your Honor.

THE COURT: — taking it from there.

Continue.
__________________________________________
25
0500

BY MR. DANDAR:

Q  Mr. Prince, I’m not sure I asked you this question yesterday or not, but are you aware that Mr. Minton received from me any information concerning any of the mediations in this wrongful death case?

A  No, I am not.

Q  Did Mr. Minton ever talk to you and say, “Oh, Ken Dandar told me this about the mediation and what was said at the mediation”?

A  No, he did not.

Q  Now, before you left the Church of Scientology, how many years did you know — personally know David Miscavige?

A  I’d say about 12 years.

Q  And yesterday you said you were a friend of David Miscavige?

A  I said we’d been friends; we had been friends, close friends, at a point in time.

Q  Okay. When did that friendship end, if at all?

A  Well, it’s been quite a while since we’ve talked to each other. Probably — you know, if we talked to each other — I don’t know — maybe we could still find some friendship there. But we haven’t talked for quite a while.

Q  Well, give us a year. When did you last talk to him?

0501

A  ’92.

Q  And is ’92 the year that you were no longer a Sea Org member?

A  ’92 is the year that I left.

Q  Okay. And prior to leaving, did you still consider him to be your friend?

A  Yes, I did.

Q  Okay. And did he work with you in RTC when you were deputy inspector general?

A  Yes, he did. And as a matter of fact, more often than not I would report to him.

Q  Rather than Vicki Aznaran?

A  Together with Vicki Aznaran or without Vicki Aznaran.

Q  Can you describe to the court his management style?

A  Well, same management style that’s pretty much taught throughout the management series of Scientology, wherein an executive is expected to know about or be in control of all areas underneath the executive.

Normally when you have a person that’s high in the organizational chart in Scientology, you’ll have a seven-division org board. The person that is over that activity has to know the details of what’s going on in all of those seven divisions. Each division may be having three

0502

separate departments, as many as three separate departments, and different units within the department. So there could be a lot of people there. There is provisions for inspecting, getting information, and on and on and on, with that. But it’s very much expected to know everything.

But it certainly gets carried to an extreme, or certainly was carried on to an extreme during my tenure there, in that certain sections or areas would be micromanaged to the point where the staff in that area could only act on orders and comply with orders, comply with command intention, comply with programs. There was not a lot of original thought process going on in some areas by staff.

Q  How far down the org board did you personally observe Mr. Miscavige micromanaging during your tenure?

A  All the way down to the janitor.

Q Really.

A  Yeah.

Q  Would he manage that way with RTC or would he go outside of RTC?

A  Would go outside of RTC. There’s plenty of examples of that.

Q  Can you give us a few?

A  Well —

MR. WEINBERG: Could we just date this? I was

0503

under the impression that when Mr. Prince was at RTC, Mr. Miscavige wasn’t. So can we put a date when he’s talking about?

THE WITNESS: I certainly will.

THE COURT: And what was that?

THE WITNESS: Well, I haven’t spoken of any instance yet, but the instance that I’m about to talk about right now happened in 1985 — and I do believe I’ve done a declaration about this before — whereby myself, David Miscavige, Vicki Aznaran, Mark Yeager, Mark Ingber, Ray Mithoff, the usual crew, came to the FSO.

BY MR. DANDAR:

Q  Flag?

A  Flag Service Organization.

Q  In Clearwater?

A  In Clearwater, Florida.

Went through the entire organization, started declaring suppressive persons of staff and public on the spot; people that we didn’t want or felt were inappropriate to be in the Flag Service Organization.

I’ve given a declaration about that before.

THE COURT: Have I seen that declaration?

MR. DANDAR: I don’t — I don’t think —

Was it — it wasn’t in this case, was it?

0504

THE WITNESS: No. I believe it was in another case.

I will certainly find it, when —

THE COURT: That’s all right. I just didn’t know — I didn’t remember —

MR. DANDAR: No, it wasn’t.

THE COURT: — reading it.

MR. WEINBERG: Does he know what cases?

Was it the Wollersheim case?

THE WITNESS: I believe it may have been.

A  There’s another instance that was produced and written about by KSW News or Scientology News, where again the usual crew — myself, Miscavige, Lyman Spurlock, Ray Mithoff, Mark Ingber, Mark Yeager, several Scientology attorneys — went to San Francisco to have a mission holders’ conference with the current mission holders.

THE COURT: Go to the mission —

THE WITNESS: Mission holders. Mission holders would be like franchise holders, organization — The Scientology organization is one thing.

Then you can have a franchise of that which is called a mission. And the mission holder would be the owner of the mission.

THE COURT: I see.

A  Anyway, we went up to San Francisco to have a

0505

mission holders’ conference. And prior to actually having the conference, we stopped in a local Scientology organization, the San Francisco organization, went through the entire organization, spoke to everyone in the
organization, and removed the executive from the organization, removed other people, and left.

BY MR. DANDAR:

Q  What gave you the power —

MR. WEINBERG: Could you please date that one too, please?

BY MR. DANDAR:

Q  What year was that?

A  That one was 1982 — late ’82 or very early ’83, as I recall.

Q  And what gave Mr. Miscavige and your group the power to go into a separate corporation, the San Francisco organization, and remove officers of the corporation?

A  This is the subject of something I’ve also given extensive testimony and declaration about, because it goes to alter-ego within Scientology.

But there’s a thing called mission tech, where Sea Org members can get together on orders based on Sea Org programs, and go into any organization and take it over completely and remove its executives, alter, change its policy, change its board of directors, change whatever it

0506

wants to. And once it deems that the activity is performing to the expected standard, then the mission will pull out.

Normally these missions last for two, three weeks.

Q  So it has to do —

THE COURT: Mission —

I’m sorry, Mr. Dandar. We must be driving you crazy.

The mission lasts for two or three weeks, meaning the mission church or the mission of these folks that are going in to take a look?

THE WITNESS: The mission of these folks going in to take a look —

THE COURT: Okay.

THE WITNESS: — your Honor.

BY MR. DANDAR:

Q  And the officers of the corporation are removed because they’re doing —

I mean, what’s the reason for that? Let’s talk about the San Francisco organization.

THE COURT: Why is that relevant?

MR. DANDAR: It’s the power of the Sea Org, which is one of the issues raised at this hearing.

MR. WEINBERG: But it’s not an issue at this hearing. It may be an issue he’s trying to raise, but the issue at this hearing is whether or not, A,

0507

there was misconduct by Mr. Dandar and others; and B, whether or not there was a basis to allege that David Miscavige had ordered the killing, death of Lisa McPherson. Not Sea Org, none of that.

THE COURT: Well, part of the allegation was he was the head of the Sea Org, which was by — That is an issue.

MR. WEINBERG: But it’s — it — Mr. Miscavige, as we know, is not a party, because he didn’t pursue — that was the way they got him to be a party, by saying he was outside of the contract —

THE COURT: I —

MR. WEINBERG: — and —

THE COURT: — understand that, Counsel. But the allegation in the complaint that you are trying to get a summary judgment on and — and have dismissed as false is that David Miscavige did these certain things. And that still is part of the complaint, whether he’s a party or not.

MR. WEINBERG: There’s a lot of accusations in the complaint that I guess Mr. Dandar could have this hearing go for the next three months about, but that isn’t a central — I’ve said my piece.

THE COURT: Thank you.

0508

BY MR. DANDAR:

Q  So Mr. Prince, you and your party, which included Mr. Miscavige, ousting the corporate officers of the San Francisco corporation, what — what gave them the power to do that?

A  Again, it was just Sea Org — it’s called Sea Org mission tech, where a person in the Sea Org, called a mission op, or operator — mission ops, it’s called — will put together a set of, like, project order to get done in the organization.

They may call for removing the executives; it may call for investigating and then removing upon determination; it may call for training; it may call for correction.

Q  And back in late ’82, early ’83, when you and Miscavige and the others went to San Francisco, who was the head of the Sea Org?

A  David Miscavige.

Q  And when you left in ’92 —

THE COURT: Mr. Hubbard was still alive then?

THE WITNESS: In 1992, yes.

MR. DANDAR: No, ’82.

THE COURT: ’82.

THE WITNESS: Oh. ’82. Yes. I’m sorry.

THE COURT: And he was not the head of the Sea Org?

0509

THE WITNESS: Yes, he was. He was the commodore.

But you know, we were going through this whole song and dance to try to get tax-exempt status for the various organizations of Scientology, and the problem came up where I guess it was determined that L. Ron Hubbard — it was found that L. Ron Hubbard was the managing agent of Scientology and the Sea Org. And so Mr. Hubbard, by that time, had really separated himself for the purposes of allowing this church entity — these Scientology entities to get tax-exempt status. He had kind of separated himself totally from Scientology activity.

THE COURT: Okay.

BY MR. DANDAR:

Q  So when he separated himself, who took over as the head of the Sea Org?

A  Miscavige. David Miscavige.

Q  And when you left in ’92, who was the head of the Sea Org?

A  David Miscavige.

Q  Was there anyone in the Sea Org that had equal or greater rank than David Miscavige from ’82 to ’92 when you left?

A  At the time before I left, David Miscavige — this

0510

whole thing with brevet rank and being a captain and stuff — this is something that happened, I believe, later, after I was done there.

Mr. Miscavige derives his authority from being the chairman of the board of nearly every — all of the major corporations. He’s on the board of directors somehow, where he derives —

And then also, as far as Sea Org is concerned, Miscavige — I mean, basically, L. Ron Hubbard passed the torch to Miscavige. He didn’t pass it to Miscavige; he passed it on to Pat and Annie Broeker. Miscavige got rid of Pat and Annie Broeker, so effectively took control of Scientology.

Q  And did he take control of Scientology as the chairman of the board of some corporation or through the Sea Org?

A  He took control of Scientology through — by corporate means. And he was able to — You see — you see, this may be a little confusing, so I think this is worth — takes a moment to explain.

The Sea Org operates on not only these green policy letters and these red bulletins that we’ve seen, but the Sea Org has its own issues and issue types that it operates on. And they’re called Flag orders. Flag

0511

orders — you know, they supersede corporate boundaries; supersede posts or positions or whatever.

A  So Flag orders — L. Ron — the last Flag order that he wrote, he turned over Scientology to Pat and Annie Broeker. He called them loyal officers. Loyal officers is a term that comes up from reading Scientology’s, quote/unquote, advance materials. That was — loyal officers were supposed to be the highest rank in Scientology.

Miscavige — after L. Ron Hubbard passed, Miscavige cancelled that issue, did not let Pat and Annie —

THE COURT: We don’t really need to go there, do we?

MR. DANDAR: Well, I’m leading up to one question.

THE COURT: Okay.

A  Anyway, he effectively took it over.

BY MR. DANDAR:

Q  All right. Now, why is it that paragraph 34 — based on your affidavit, why is it that it alleges that David Miscavige, outside of anyone else, would be the person who would have given this order to end cycle?

A  Well, I think what my affidavit actually says is — is David Miscavige would have sat there with Ray Mithoff, with Marty Rathbun, the people that meet, to — to

0512

make sure that the flaps within Scientology that are a threat are dealt with. I think what I said there was that those three people would have gotten together and decided —

THE COURT: Ray Mithoff and who else?

THE WITNESS: Marty Rathbun.

MR. DANDAR: R-a-t-h-b-u-n.

THE WITNESS: Would have sat there with full knowledge and information of what was going on with Lisa McPherson. And instead of letting her be taken to a hospital, would have told these people to just let her stay there, and let’s see what happens here.

Let’s continue. See if we can, you know, finish the introspection rundown. Don’t put her on any line where she can tell a story about what’s happening to her.

In other words, let her die. If she dies, that’s what happens.

BY MR. DANDAR:

Q  Now, what if the — based upon your tenure and your experience of working with Mr. Miscavige, Mr. Rathbun, Mr. — I’ve forgotten the third name.

A  Mithoff.

Q  Mithoff.

If Mr. Mithoff and Mr. Rathbun said, “No, no, no. We have these reports, that she needs to — she’s not

0513

doing — she’s getting worse. She needs to go to the hospital. Send her to the hospital,” and Mr. Miscavige says, “No. We’re not going to do that,” out of those three, who prevails?

MR. WEINBERG: Objection. This is just rank speculation.

THE COURT: It would appear to be so, except I believe he indicated, back when he was at RTC, these same people were there?

MR. WEINBERG: No. Mr. Mithoff was in CSI.

Mr. Rathbun was not in RTC.

I — I mean, he —

BY MR. DANDAR:

Q  Mr. Prince —

MR. WEINBERG: — at the time —

THE COURT: I’m going to allow it, because I know what the answer is. I mean —

BY MR. DANDAR:

Q  Mr. Prince, who was in RTC when you were in RTC, at these meetings?

MR. WEINBERG: No —

A  The only people that were in RTC were myself and Vicki Aznaran. David Miscavige was the chairman of the board of Author Services, a for-profit corporation that was L. Ron Hubbard’s publishing company. However, that meant

0514

nothing in relationship to who were the principals of Scientology, who were directing — directing the actions of Scientology as a whole. And the people that were doing that were David Miscavige, myself, Vicki Aznaran, Mark Yeager, Mark Ingber, Lyman Spurlock.

THE COURT: Was there a majority vote taken?

THE WITNESS: There’s no such thing as a vote in the Sea Org, unless you’re deciding on a quality of food, in Scientology.

THE COURT: If you disagree on a decision, who made the final call?

THE WITNESS: If you disagreed on a decision — if you disagreed with someone that was above you, you would be sent for correction to straighten out your —

THE COURT: Look, if you folks are sitting around trying to decide something — you and all these people, you said, were kind of a — there — and you disagreed; you know, you said, “I think this should happen,” Ms. Aznaran said, “I think this should happen,” David Miscavige said, “I think this should happen,” who made the call?

THE WITNESS: Ultimately the person who would have the authority and everyone would have to follow would be Mr. Miscavige.

0515

THE COURT: So he — he made the final call.

THE WITNESS: Yes, he would say, “Okay. Yeah.

This is how you do it.”

BY MR. DANDAR:

Q  Would he get input from the others for —

A  Yes. I mean, that happened. But the purpose — I mean, you know — and I just want to clear this picture — make this picture a little bit more clearer as to how it actually works.

Mr. — Mr. Mithoff, based on how it worked when I was there — I’m just going to explain this. Mr. Mithoff would have brought this situation to the attention of Mr. Rathbun. Mr. Rathbun would have looked over this — okay. And again, in my mind, I’m not going with the theory that she was crazy when they took her to the hospital; I’m not going with the theory that she just lay there and wanted to be there; I’m going with the theory that, just like she said, she wanted to leave. She was trying to leave. They incarcerated her, falsely incarcerated her, wouldn’t let her leave.

So Mr. Mithoff would have brought it to Mr. Rathbun’s attention. Because you have a threat. You have a person that is now escalated. They want to get out. And now they’re sick. It’s going bad — worse to bad. Mr. Mithoff would have taken and put an exact

0516

instructions in her folder, went over it with Mr. Rathbun.

And at the meeting they would have sat down with Mr. Miscavige and said, “This is the situation. This is the flap. This is the handling.” If their handling included not taking her to the hospital and keeping her there  and doing Scientology on her, Mr. Miscavige would have said, “Fine.” If their handling would have been, “Look, I think we better take this risk even though she is antagonistic, and we got to send her to the hospital,” it is my opinion that his answer would have been, “No. You leave her right there.”

Q  And why is that? What do you base that opinion on?

A  I base that opinion on the fact that protecting Scientology is the ultimate goal of any Scientologist, irrespective of friend, family, business. Scientology comes first. Because the idea in Scientology is that Scientology’s going to save the world. And if you lose Scientology, you lose the world. So it’s the greatest good to protect Scientology than it would be to be concerned about an individual, or a group, for that matter.

Q  Now, are you familiar with the term and policy letter called “bypass”?

A  Yes, I am.

Q  All right. Can you tell the court what that is?

0517

A  Bypass is a situation — I guess I can just do a real example here using the court reporter. If this court reporter here were typing transcripts and she were making too many errors, someone else would have to come in here and take over her job and — while she goes and gets fixed or gets corrected, and takes over her actual job, and does the job until she’s able to perform it again.

Q  Do you have an opinion whether or not, in Lisa McPherson’s case, bypass would have come into play?

THE COURT: I don’t understand that. I’m sorry. Maybe I just didn’t understand the example.

Maybe —

THE WITNESS: Okay. I’ll try to do another example, your Honor.

THE COURT: Bypass, to me, means you jump over somebody or you go around someone.

THE WITNESS: Well, you actually displace that person and assume their position.

THE COURT: Oh, I see. Okay.

THE WITNESS: Until they can do the job correctly.

THE COURT: Okay.

BY MR. DANDAR:

Q  Let me show you —

THE COURT: I don’t think he answered your

0518

question. I interrupted him. So if you want an answer, do you —

MR. DANDAR: Well, I’m going —

THE COURT: In the Lisa McPherson case —

MR. DANDAR: No —

THE COURT: — did bypass occur?

MR. DANDAR: I’m going to ask a question first.

THE COURT: Okay.

MR. DANDAR: I’m going to interrupt myself.

THE COURT: All right.

BY MR. DANDAR:

Q  Let me show you what I have marked as Plaintiff’s Exhibit 127, see if you can identify this.

A  Okay.

Q  Can you identify this?

A  Yes, I can. This is what’s commonly referred to as a CBO, central bureau order. It’s another issue type that Scientology puts out, you know, like a bulletin or a policy letter. And this particular issue talks about senior management bypassing into lower areas or lower units within the Scientology infrastructure.

Q  Under what circumstances would that happen?

A  This would happen at any point where the senior officer or senior body felt that there was a situation going on in a lower area that wasn’t being dealt with to par.

0519

Q  Now, do you have an opinion, based upon your experience in Scientology, whether or not, after your review of the Lisa McPherson matter, the policy bypass would have come into play?

MR. WEINBERG: Objection to competence. I don’t even know what this is. I mean, this is not written by L. Ron Hubbard, apparently. It’s not in the green volumes or the red volumes. There’s been no — there’s been no —

And Mr. Prince said he knew what bypass was. Well — but — and now he’s going to apply it to some hypothetical situation that he doesn’t have any personal knowledge of?

THE WITNESS: I think the issue speaks for —

THE COURT: I —

THE WITNESS: — itself.

THE COURT: I think for this purpose of this hearing, I just want to hear everything he has to say.

MR. WEINBERG: I understand. I just —

THE COURT: So I’m going to allow it.

MR. WEINBERG: Every now and then, I just need to get up to renew —

THE COURT: All right.

MR. WEINBERG: — my —

0520

Just so Mr. Wein —

Is it Wein —

MR. WEIN: Yeah.

MR. WEINBERG: Mr. — I’m “wine,” and he’s “ween.”

THE COURT: I want to hear everything —

MR. WEINBERG: Okay.

THE COURT: — because I want to find out all the things that Mr. Prince may have, as Mr. Dandar’s consultant —

MR. WEINBERG: I understand.

THE COURT: — told him about, so that I can have some understanding of the complaint and the allegations you’ve made. And so I’m going to allow it.

BY MR. DANDAR:

Q  Have you seen this document before today, Mr. Prince?

A  Yes, I have.

Q  And under what circumstances have you seen that?

A  I have seen this during messenger training.

I had to, myself — when I went to Gilman Hot Springs in 1982, I became what’s called a commodore messenger. And I’ve explained that endlessly too. It’s a person — it’s an emissary of L. Ron Hubbard who has the

0521

same authority as L. Ron Hubbard. When they come with an order to an area, it’s like L. Ron Hubbard giving an order to an area. So you know, this has the highest level of priority, as far as compliance’s concerned.

I became a commodore’s messenger. And as part of being a commodore’s messenger, this was the first time in my study pack on the duties of commodore’s messenger that I read this particular issue.

Q  Okay. And do you have an opinion whether or not this bypass would come into play in any part of the matter concerning Lisa McPherson?

A  I think it would have certainly come into play, given the fact that Mrs. McPherson was not being cooperative or — and actually intended to leave Scientology. And this was consistent in what she was saying. So that’s like a breach of technology. There’s no such thing as Scientology not working, as far as the written materials are concerned. If Scientology doesn’t work, then something is wrong with the individual. Somebody has done something wrong or somebody has misapplied it.

So if you have a person in the extreme situation like Lisa was, that continued, that would be reason for bypass; to come in and, you know, deal with it specifically.

Q  Who gets involved when bypass happens?

A  For the FSO?

0522

Q  Yes.

A  Normally Ray Mithoff.

Q  In what position?

A  He’s the senior technical person internationally for Scientology. The Flag Service Organization is the senior mecca of technical perfection as far as Scientology is concerned, so the — the Flag Service organization is certainly one of the major providences of the senior CS  international.

Q  Now, a while back, you know, in my office, you pulled out an OW of Lisa McPherson —

THE COURT: OW?

MR. DANDAR: Overt withhold, abbreviated OW.

BY MR. DANDAR:

Q  — that she wrote in the fall of ’95, concerning February of ’95, where she mentioned management had to get involved? Do you recall that?

A  Yes. This was a — right around the first time I believe that Lisa started experiencing severe difficulty with Scientology, as far as her relationship to it. And she mentioned that whatever was going on with her was — you know, technically it resulted in a bypass by senior management; a bypass of the Flag Service Organization, to specifically help her and deal with her situation.

Q  Now, we already have in evidence and marked as

0523

Exhibit 96 —

And this is an extra copy.

MR. DANDAR: And Judge, I’ll show it to you if you need to see it again.

BY MR. DANDAR:

Q  But it’s the Heide Negro (sic) isolation watch report. Did you see that before?

A  Yes, I did.

Q  And on the second page it talks about —

THE COURT: That’s in evidence?

MR. DANDAR: Yes. 96.

THE COURT: Oh, okay. It’s been a long time.

THE WITNESS: I think she needs —

MR. DANDAR: It is a long time.

THE COURT: Thank you.

BY MR. DANDAR:

Q  On the second page, first paragraph of the last sentence —

MR. WEINBERG: Well, hold on. Mr. — I object to his competence — he has no personal knowledge of any of this.

THE COURT: I don’t even know what the question is going to be, so —

MR. WEINBERG: He’s now going into

0524

somebody’s —

THE COURT: Well, you don’t know what he’s going to go into because you haven’t heard the question. So let’s hear it and I’ll —

MR. WEINBERG: If I could —

THE COURT: Go on ahead with your question.

BY MR. DANDAR:

Q  Okay. The first paragraph, it says that this data came originally from FSO CS, Alain Kartuzinski, who was in charge of John Taylor’s correction. Who —

THE COURT: See, I don’t even know where you’re reading from.

MR. DANDAR: I’m sorry. First paragraph on page 2.

THE COURT: Oh. Page 2.

MR. DANDAR: Yes. I’m sorry.

THE COURT: Okay. Go ahead.

BY MR. DANDAR:

Q  “This was later corrected by a telex from Mr. Ray Mithoff, who indicated that the RD –” I guess that’s rundown —

A  Right.

Q  “– in fact could be delivered, at which point delivery commenced.”

0525

Now, what does that mean in plain English?

A  There was a question of whether or not this person could be given the introspection rundown. Alain Kartuzinski apparently thought that no one was qualified at this particular location, which is their advanced organization in the United Kingdom. This person was — apparently had similar symptoms to what Lisa and other people were having that have that problem. And Mr. Mithoff — this, again — at management, was alerted.

And Mr. Mithoff indicated that the rundown could be given, because Mr. Mithoff is the senior-most technical person within the Scientology infrastructure. Senior FSO CS Alain Kartuzinski — any auditor or case supervisor located here in Clearwater, Florida, operating in the Ft. Harrison Hotel and the Sandcastle, are considered to be the cream of the crop as far as auditors and technically trained people are concerned.

Q  Okay. Well, are you aware of evidence that you’ve seen where David Miscavige has become personally involved in the matters concerning Lisa McPherson?

A  One thing that I saw where he actually comes out himself was a letter that was written to Mr. Bernie McCabe concerning dismissing the criminal case that was brought against Scientology for Lisa McPherson’s death.

MR. WEINBERG: Your Honor, Mr. Dandar’s not

0526

taking the position that this justifies his accusation that David Miscavige murdered Lisa McPherson, whatever he’s got to show you, that happened in the criminal investigation.

THE COURT: No. I think what he’s about to show me, based on his question, is something that indicates that David Miscavige knew about the Lisa McPherson case. I don’t think —

MR. WEINBERG: Well, I think —

THE COURT: — that that —

MR. WEINBERG: — the whole world knew about the Lisa McPherson case once there were people — once the church was indicted and people were walking around with picket signs.

THE COURT: We have to read it, ’cause I don’t know what it is.

BY MR. DANDAR:

Q  Plaintiff’s 128. Is that the letter you’re referring to, Mr. Prince?

A  Yes, it is.

MR. WEINBERG: Well, could I have a copy, please?

MR. DANDAR: Oh.

A  Yeah.

0527

BY MR. DANDAR:

Q  Based upon your experience as a Scientology executive in RTC, why would RTC have anything to do or be  involved with the Lisa McPherson matter?

A  I think if you just look at the second paragraph on page 7 of this letter, the last sentence, I think that pretty much says it all. It says, “Therefore, if rapid, responsible and meaningful resolution of this case is to be achieved –”

THE COURT: Just a second. I can’t find out where you are. Page 7, what?

THE WITNESS: Second paragraph. Last sentence in the second paragraph.

THE COURT: All right.

THE WITNESS: Where it says, “Therefore, if rapid, responsible and meaningful resolution of this case is to be achieved, you and I are the persons to do it.”

BY MR. DANDAR:

Q  You, meaning Mr. McCabe, and I, meaning Mr. —

A  Miscavige.

Q  — Miscavige?

A  Correct.

Q  Why would — again, why would Mr. Miscavige then be personally involved in the Lisa McPherson matter?

0528

MR. WEINBERG: Again —

A  Again, bypass —

MR. WEINBERG: — isn’t this pure speculation on his part?

THE COURT: Well, I think that — that — I would read this that this was after the charge was brought.

MR. DANDAR: Yes.

THE COURT: And that Mr. Miscavige, as the ecclesiastical head of the church against whom a charge was brought, was saying, “If this is going to be resolved, Mr. McCabe, as the state attorney, and I, as the head of this church, need to sit down and try to resolve it.”

MR. WEINBERG: And of course, he was not successful at that point, because the case continued for another year. And we all know how it —

THE COURT: However, we perhaps need to hear from Mr. Prince how he believes that statement shows that Mr. Miscavige was involved before Lisa McPherson died. Which is what your point of the question —

MR. DANDAR: That’s where I’m heading, yes.

THE COURT: Okay.

0529

BY MR. DANDAR:

Q  How does that — how can you explain that as reference to, as the judge just said —

A  I think the letter, you know, indicates Mr. Miscavige’s broad knowledge of every step of the criminal case, you know. And there’s no obvious evidence that he’s had involvement in this case, but it would certainly be my opinion that he has. Because again, this is a flap. It’s a bypass.

THE COURT: Well, Mr. Prince, let me just ask you what would seemingly be a logical question to me:

You could certainly have a situation — I’m not saying this is true or not true. But you could have — certainly have a situation where somebody didn’t know about somebody being ill, but when criminal charges were filed, because that person died, if they’re the head, they’d become involved and take over from that point.

THE WITNESS: Yes, your Honor. That is a rational line of thinking for, you know, regular world activities. But in Scientology, these — you know, Scientology —

THE COURT: I’m not saying that —

THE WITNESS: — is extremely —

0530

THE COURT: — Mr. Miscavige didn’t know.

THE WITNESS: Right.

THE COURT: I am saying that another explanation — I mean, this is about a criminal charge —

THE WITNESS: Right.

THE COURT: — right?

THE WITNESS: Right.

THE COURT: And so you could certainly have —

THE WITNESS: Against the Flag Service Organization.

THE COURT: Yeah. You could have a situation where the ecclesiastical head, after criminal charges are filed, says, “Let’s you and I sit down and see if we can resolve this criminal case.”

THE WITNESS: Right.

Well, you know, where are the letters from the corporate heads of the Flag Service Organization, doing the same thing with Mr. McCabe?

THE COURT: I’m sorry. Where are the what?

THE WITNESS: The corporate officers of the Flag Service Organization. Where’s Mr. Ben Shaw’s letter to Mr. McCabe to sort this out? Why does this necessitate Mr. Miscavige? This is against the

0531

Flag Service Organization.

THE COURT: Well, because as I understand it, Mr. Miscavige is the ecclesiastical head of the Church of Scientology.

THE WITNESS: Every one of them.

THE COURT: Every one of them.

THE WITNESS: Right.

THE COURT: Yeah. There’s no disagreement.

So as I said, I can — I’m not saying that Mr. Miscavige did or did not know about Lisa McPherson’s situation when she was at the Ft. Harrison Hotel. Because quite frankly, that’s one of the issues.

But this letter just simply says that, “I as the head of this church, all of them, want to sit down with you and resolve this case.”

THE WITNESS: Right.

THE COURT: So how do you jump from that —

THE WITNESS: Well —

THE COURT: In other words, there’s lots of people who have testified that David Miscavige, as chairman of the board of RTC, knew about Lisa McPherson. There’s just no question in their mind.

THE WITNESS: Right.

THE COURT: He would have known. He would have

0532

known because that’s the way business is done.

THE WITNESS: Correct.

THE COURT: Sort of.

THE WITNESS: Correct.

THE COURT: Okay. I’ve heard all that testimony. I presume you would testify the same.

But what does this letter add to this?

THE WITNESS: I — you know, your Honor, I think the only purpose of this letter is — is just to show what we were talking about earlier, when we were talking about the bypass and — and how, you know, it’s a pattern of conduct; how the organization does business. I think that’s the purpose of why this is in here.

THE COURT: Well, if this letter has relevance — if this letter has relevance, it has relevance to the, I suspect, agreed-to evidence in this case, which is that David Miscavige is the ecclesiastical head of the Church of Scientology, including — including Flag.

MR. DANDAR: Right.

THE COURT: Including all of the organizations.

MR. WEINBERG: The letter isn’t relevant to this proceeding.

THE COURT: No. It is not relevant to this

0533

proceeding, as I said, except that it might be relevant to that issue, which I assume is an agreed-upon issue.

MR. WEINBERG: The first church in the United States within 200 years is indicted, it’s not surprising that Mr. Miscavige —

THE COURT: No, it’s not.

MR. WEINBERG: — would want to try to find a resolution to it.

THE COURT: That is true, and that’s what I said. I don’t think it has any relevance to this proceeding unless it is to establish that indeed Mr. Miscavige is the ecclesiastical head of the church, including — including Flag.

MR. WEINBERG: He’s the ecclesiastical — he’s the ecclesiastical leader of the churches of Scientology.

THE COURT: Right.

MR. WEINBERG: The religious leader of the Church of Scientology.

THE COURT: Well, ecclesiastical leader and religious leader are the same thing.

MR. WEINBERG: Right. Same thing. He happens to be the chairman of the board of an organization called RTC, but he’s the ecclesiastical or religious

0534

leader of Scientology.

THE COURT: Right.

BY MR. DANDAR:

Q  Mr. Prince, is Mr. Miscavige the leader of all of the Scientology churches as — because he’s the COB of RTC or because he’s the captain of the Sea Org?

A  Because he’s the captain of the Sea Org.

Q  When Mr. Miscavige was the captain of the Sea Org and the COB, of the for-profit corporation Office Services, Inc., ASI, was he the head of all of the churches of Scientology as well?

A  Well, again, as your Honor correctly pointed out, Mr. Hubbard was alive at that time.

Q  Oh, okay.

A  Shortly after Mr. Hubbard passed, that was certainly the situation for a moment.

But immediately upon the death of Mr. Hubbard and the ousting of Pat and Annie Broeker, Mr. Miscavige assumed control of Religious Technology Center.

Q  All right. And did he do that because he was the chairman of the board of ASI or the captain of the Sea Org?

A  Because he was the captain of the Sea Org. You know, everything is done in the Sea Org with missions.

MR. WEINBERG: Your Honor, could he just answer —

0535

THE COURT: Yes. He’s answered the question.

MR. DANDAR: Judge, I have a document — actually, it’s a notice of filing. I’m going to have to have the clerk mark this notebook. And —

(A discussion was held off the record.)

THE COURT: All right. We’ll go ahead and take our morning break since it’s very close to that time. We’ll be in recess till 11:30.

(A recess was taken at 11:17 a.m.)

(The proceedings resumed at 11:37 a.m.)

THE COURT: You may continue.

MR. DANDAR: What I had marked and what I was about to hand the witness and the court, and not have to make an extra copy for Mr. Weinberg — which I didn’t because, quite frankly, he has all this, but I understand what he’s saying. He should have the same thing I’m handing — and that’s fine.

We’ll get that done over the lunch break — is Exhibit 130. It’s a compilation of documents, statements and depositions of staff.

But I’m only going to ask this witness about J, which is the narrative investigation of Detective Carrasquillo, April 15th, 1997.

MR. WEINBERG: I object to the use of this

0536

document. It’s just — it’s a — it’s not a sworn statement; it’s not a sworn statement of a witness. It’s just her — it’s a hearsay account of what she claims — I guess summarizes what somebody would have told her. That’s not evidence.

THE COURT: Well —

MR. WEINBERG: It’s not — certainly not for — I think where he’s going is that he’s offering it for the truth of the matter asserted. And it’s pure hearsay.

THE COURT: Well, it would be true hearsay if he’s offering it for the truth of the matter asserted, but I don’t know what he’s going to ask this witness. So let’s hear it.

MR. WEINBERG: All right.

BY MR. DANDAR:

Q  Mr. Prince — of course, we obtained this document, you know, a year after your affidavit of August of ’99 —

A  Mm-hmm.

Q  — when this was made a public record —

But in paragraph 3, the interview summary of Mr. and Mrs. Ortner, O-r-t-n-e-r, indicates that Mr. Miscavige was staying at the Ft. Harrison Hotel —

MR. WEINBERG: That’s what I’m talking about,

0537

your Honor.

BY MR. DANDAR:

Q  — while they were there, around November 20th of 1995.

Do you — here’s my question: Do you know of circumstances or other occasions when Mr. Miscavige would stay at the Ft. Harrison Hotel?

A  Yes, I do. Again, I’ll refer to the — to the video that was played the first day of my testimony where we were having a New Year’s Eve event. He would be there for that. He would be there for March 13th, which is  L. Ron Hubbard’s birthday. They normally have an event at the —

MR. WEINBERG: Are you talking about a specific year?

A  — and —

THE WITNESS: Excuse me?

MR. WEINBERG: About a specific year?

THE WITNESS: No. I’m talking — he asked me a question of when normally he would be there. I’m talking about —

MR. WEINBERG: All right. My objection is the question was whether he stayed there, not whether he was there. Big difference. And in this case there is no — I mean, if this is being offered that Mr. Miscavige was in Clearwater in November or

0538

December of 1995, it’s pure hearsay. And he wasn’t. And if he was —

THE COURT: I didn’t hear —

MR. WEINBERG: — he would have obviously — the state attorney would have done some investigation on it if that were the case. And it’s not the case.

But the question was whether he — whether Mr. Miscavige ever stayed at the Ft. Harrison Hotel, and Mr. Prince is talking about whether Mr. Miscavige was ever at the Ft. Harrison Hotel, which is completely different.

BY MR. DANDAR:

Q  How did you understand the question, Mr. Prince?

A  I understood the question as to at what times would Mr. Miscavige likely be at the Ft. Harrison.

Q  Okay. All right. Well, let’s —

THE COURT: I think that has some relevance, if it was anytime around — in and around the time of Lisa McPherson’s stay at the Ft. Harrison.

BY MR. DANDAR:

Q  So what events would he normally routinely come to in the Ft. Harrison?

A  There would be auditor’s date —

Q  Which is —

0539

A  — which is sometime in September; there would be IAS —

Q  What’s IAS?

A  Excuse me. International Association of Scientologists. They have an event in the summertime, I think, that’s around June or something like that, they have an IAS event. The New Year’s event. L. Ron Hubbard birthday event.

Q  Which is March?

A  March 13th.

Some of the more common times that I can think of that he would be there.

Q  What about non-Scientology holidays such as Thanksgiving?

A  Not likely —

Q  Okay.

A  — in my experience.

Q  Okay.

THE COURT: And the reason he would be at the Ft. Harrison Hotel as opposed to someplace else is because it’s the mecca of all —

THE WITNESS: Yes, your Honor.

The Ft. Harrison is a very beautiful hotel.

THE COURT: Is that — mecca of all technology — mecca of all technology?

0540

THE WITNESS: Yes, your Honor.

BY MR. DANDAR:

Q  Was —

THE COURT: Now, on a New Year’s event, I thought he was out in California on the tape that I saw.

THE WITNESS: No, your Honor. That was right in the Ft. Harrison.

THE COURT: Oh, it was?

MR. WEINBERG: You’re talking about two different tapes. The tape that you saw was California. The tape that Mr. Prince was in, was —

THE COURT: In Clearwater.

MR. WEINBERG: — in the Ft. Harrison.

THE COURT: Okay.

MR. WEINBERG: That was — Mr. Prince was 20 years ago; your — I don’t know when it was. 2000.

THE COURT: Okay.

MR. DANDAR: It was less than 20 years ago.

BY MR. DANDAR:

Q  But anyway, do you — do you have any recollection of Mr. Miscavige staying at the Ft. Harrison Hotel rather than just showing up for an event?

A  Well, when I testified earlier about Mr. Miscavige and myself, Vicki Aznaran, you know, the regular crew coming

0541

into the Flag Service Organization and rearranging and declaring some people, we stayed there at that time.

I mean, you know, whenever Mr. Miscavige would come to the Clearwater area, as well as myself, we always stayed at the Ft. Harrison Hotel.

THE COURT: What were the dates that Lisa McPherson was at the Ft. Harrison?

MR. DANDAR: November the 18th of ’95 through December the 5th of ’95.

THE COURT: Do you have any information that would say that David Miscavige was or was not at the Ft. Harrison Hotel on those dates?

THE WITNESS: Your Honor, beyond what Mr. Dandar is presenting here today, I do not.

THE COURT: So regardless, if it weren’t for that hearsay document, you have no firsthand knowledge or other way of knowing whether he was there or not.

THE WITNESS: Correct.

THE COURT: Okay.

BY MR. DANDAR:

Q  Mr. Prince, one thing I wanted to ask you about that’s out of sequence, and that is after you left the Church of Scientology in 1992, did you have occasion after that time to consult with Scientology attorneys?

0542

A  Yes, I did. I was contacted by Mr. Mike Sutter, who worked in the Scientology — worked in the Religious Technology Center. He told me that he wanted me to meet with Mr. Earle Cooley concerning ongoing church litigation.

Q  And who is Mr. Cooley?

A  Mr. Earle Cooley was lead counsel for Scientology during the early ’80s.

Q  And what date or what month and year was this that Mr. Sutter asked you to meet with Mr. Cooley?

A  You know, to the best of my knowledge, I do believe it was 1994.

We met in Boston.

Q  What was the purpose of that meeting?

A  Well, I thought I was going to go there to speak about current legal cases, because that’s what they told me they wanted me to speak about. But in fact, when I got there, it became quite a different show. They wanted me to reaffirm for them the fact that — you know, the — under the — reaffirm the conditions under which I left Scientology, the documents and things that I was — felt obligated to sign to leave. They wanted to update all of that again.

So they recorded me and — And I — and I guess I also found out that they were having trouble in the Wollersheim 4 case, in that —

0543

and they wanted to know if persons such as Vicki Aznaran, Lawrence Wollersheim, any attorneys, had contacted me to give testimony concerning Scientology.

Q  And as of that time, had anyone contacted you?

A  No.

Q  And did they pay you for your time?

A  Yes.

Q  How much?

A  I think it was 28- — 27-, $2,800.

Q  Was that the last time you were consulted by any representative of the Church of Scientology on matters such as that?

A  I believe so.

Q  Okay. Now, Mr. Prince, you —

MR. DANDAR: And I am going to be jumping around here.

THE COURT: You said this was 1994?

THE WITNESS: Yes, your Honor.

BY MR. DANDAR:

Q  All right. Let me show you Plaintiff’s Exhibit 131. And I have highlighted certain portions of it. I’m going to direct your attention to certain areas.  First of all, can you identify this document?

A  Yes. This is another Scientology issue type.

It’s called an executive directive. And this is an

0544

executive directive concerning senior HCO Int. And it concerns security situations and threat handlings.

Q  Now at the top it has references, and it has a bunch of HCO policy documents. Is that what — am I reading that correctly?

A  Yes. There’s four HCO policy letters. The FO — there’s one Flag order; there’s one SPD, which is a Scientology policy directives; two more HCO PLs, another SOED, that’s a Sea Org executive directive; and a couple of more policy letters.

Q  Okay. And the references for like the Sea Org executive director 4234 international, it says, “Coordination on security and investigation matters, suppressive acts.” Do you see that?

A  Yes, I do.

Q  Did I read — maybe I didn’t read that right.

A  Well, suppressive acts is the HCO PO, 23 December, ’65.

THE COURT: What does HCO stand for?

THE WITNESS: Hubbard Communications Office.

BY MR. DANDAR:

Q  And the last HCO policy of October 27th, 1964 talks — or concerns physical healing, insanity and sources of trouble. Do you see that?

A  Yes, I do.

0545

Q  All right. What does this document, mentioning insanity and healing and sources of trouble, have to do with security?

A  Well, when you have a — an insane person or a source of trouble, potential trouble source within a Scientology organization, according to its policies, this is a source of great potential trouble for an organization, be it a Sea Organization or regular Scientology organization, and these gives — it gives the steps of prevention and handling.

Q  Is “handling” a word that is used in the policies?

A  Yes.

Q  And in this particular checklist, it talks about — the second paragraph, where I’ve highlighted, uses, “Make sure the situations are actually handled.”

A  Right.

Q  Now, turn to page 2, letter G.

A  Okay.

Q  First of all, this list is below a paragraph that says the types of security situations, am I reading this correctly, where it says, G,”Attempted suicide cases or PTS Type IIIs and any external or antagonistic connections to these –” are these security issues?

A  Absolutely.

Q  Do you have an opinion whether or not this

0546

particular checklist would come into play in reference to the Lisa McPherson matter, in November and December of ’95?

A  This — the date of this issue is the 11th of May, 1991, and it’s basically instructing the divisions within Scientology organizations to coordinate with OSA — Office of Special Affairs — to deal with the  situations listed A through O, Type III — PTS Type IIIs being one of them, PTS Type III being the Scientology term for a psychotic.

Q  Mr. Prince, this is, as you said, dated May, 1991.

Does it surprise you that it references policy letters that are written in 1959 and 1964 and 1968, et cetera?

A  No. The words of L. Ron Hubbard are eternal to Scientology.

MR. DANDAR: I’d like to move Exhibit 131 in evidence.

THE COURT: Any objection?

MR. WEINBERG: No objection. I don’t know what the relevance is, in light of the fact that there isn’t anything about RTC in this document.

THE COURT: It’ll be received.

BY MR. DANDAR:

Q  All right. And Mr. Prince, let me show you Exhibit 129. I don’t have an extra copy here, for some reason. Oh, I do. Okay.

0547

Remember yesterday we talked about in order to get the injectable Valium prescriptions and the chloral hydrate prescriptions from drugstores, you talk about staff — somebody filling out what’s called a CSW, completed staff  work?

A  Yes.

Q  All right. This document, Plaintiff’s Exhibit 129, do you know where this comes from?

A  Yes. This comes from the Hubbard Administrative Dictionary, which is a dictionary that defines administrative terms used in Scientology organization.

Q  Okay. And the definition of completed staff work, does that fit within your understanding of what you testified to yesterday?

A  Yes, it does.

MR. DANDAR: Like to move 129 into evidence.

THE COURT: It’ll be received.

BY MR. DANDAR:

Q  Also Mr. Prince, you mentioned several times today that — when I was asking you about bypass and Mr. Miscavige’s role, you mentioned you had prior declarations. Let me show you Plaintiff’s Exhibit 132.

First of all, what is 132?

A  This is a supplemental declaration that was submitted in the Los Angeles courtrooms on behalf of

0548

plaintiff Lawrence Wollersheim.

Q  And this is your declaration?

A  Yes, it is.

Q  It’s dated December 22nd, 1999?

A  Yes.

Q  Is this one of the declarations you were referring to when you said you — in your testimony today, that you had previously filed declarations on the matters that we talked about?

A  No.

Let me just scan it here real quick.

Q  All right.

A  Well, yeah. I think right — starting on page 2, under the subtitle Sea Organization, I talk about Scientology missions, meaning, you know, a group of people going into an organization, taking it over. I talk about that.

Q  And on page number 40, you talk about —

MR. WEINBERG: Your Honor, I object to this. Why are we doing this? Mr. Dandar can ask him questions, but this is just a hearsay — I mean, this is an affidavit. He’s on the stand. I mean, if there’s something he wants

to ask him about, he can ask him, instead of saying, “On paragraph such and such it says such and such.”

0549

THE COURT: Well, I would normally tend to agree with you, except we have affidavits, prior declarations of so many people in this case, I don’t know why I would keep the prior declaration of Mr. Prince’s out.

BY MR. DANDAR:

Q  But Mr. Prince, the command channels and structure of the hierarchy of the Church of Scientology in this declaration, Plaintiff’s Exhibit Number 132, is it any different than your testimony than you’ve given in

this case today?

A  No, it is not.

Q  Is it any different than your — and the reason why you reached the opinions you reached in August of 1999 concerning David Miscavige’s role in Lisa McPherson’s death?

A  No, it is not.

MR. DANDAR: I’d like to move 132 into evidence as Plaintiff’s Exhibit 132.

THE COURT: I’m going to receive it over objection, just as a prior affidavit that —

MR. WEINBERG: Right. I mean, I — the objection would be, normally, just buttressing his testimony.

THE COURT: That is true. In other words, that would be exactly right. And that would be proper

0550

objection, not hearsay or —

However, I’m going to let it in.

BY MR. DANDAR:

Q  All right. Now, Mr. Prince, have you worked with Mr. Michael Rinder in your tenure in Scientology?

A  Yes, I have.

Q  And what did — how did — under what circumstances?

A  Mr. Rinder was a member of the watchdog committee during my tenure at RTC. He was a member of the watchdog committee, a commodore’s messenger, and he worked for the corporation the Church of Scientology International.

Q  What is the watchdog committee?

A  The watchdog committee are the principals of the Church of Scientology International. The principals of each sector and section of Scientology — if you look at a Scientology org board, you will — you will see it’s broken down into certain sections and sectors. One — one sector of Scientology is Scientology International. That means all of the organizations that are not Sea Org organizations and are not missions.

So you would have a WDC member, a watchdog committee member, for the Scientology organizations. Then you’d have a WDC member or a watchdog committee member for the Sea Organization. You would have a watchdog committee

0551

member for SMI, S-M-I, Scientology Missions International, et cetera, et cetera.

Q  And who is the head of that watchdog committee?

A  The chairman of the watchdog committee, during the time — my tenure in Religious Technology Center, was Mark Yeager.

Q  And did Mr. Miscavige serve on that board as well?

A  No, he did not.

Q  Okay.

A  That board reported to Mr. Miscavige.

Q  So Mr. Miscavige was above that board?

A  Correct.

Q  Now, Mr. Prince, based upon your experience and expertise in Scientology, do you have an opinion as to why Michael Rinder was meeting with Bob Minton to try to get the McPherson case dismissed, as early as 1998?

MR. WEINBERG: Objection to the — I mean, this is pure speculation. It is — it’s — I think it’s improper opinion testimony. He says that he has some expertise — which we have challenged, you know, for a number of
reasons — with regard to the religious technology.

Now he’s going to be speculating as to why someone would have been meeting with Mr. Minton? Mr. Minton’s testified regarding that; Ms. Brooks

0552

has testified in regard to that meeting at length.

THE COURT: I — I understand. We’ve had some opinions in — I don’t know why we wouldn’t listen to his, too. I mean —

MR. WEINBERG: I — it’s more frustration than anything.

That’s my objection. I understand that you’re overruling it, and I just wanted to —

THE COURT: All right.

MR. WEINBERG: Thank you.

A  Sorry. I don’t remember the question.

BY MR. DANDAR:

Q  Why would Mr. Rinder —

First of all, is Mr. Rinder part of the Flag Service Organization?

A  To my knowledge, he is not.

Q  Do you have an opinion as to why Mr. Rinder would be meeting with Mr. Minton, as early as 1988, and of course in 2002, to get the Lisa McPherson case dismissed?

A  Certainly I have an opinion, based on experience. Because like the Wollersheim case that happened here, and the Mayo case, any major case that’s being litigated in the United States, irrespective of the corporation, the decisions, the planning and the execution of legal is done with OSA — Office of Special Affairs, David Miscavige,

0553

Marty Rathbun.

Q  All right.

A  Lyman Spurlock if it — if it involves corporate. Lyman Spurlock was an expert on corporate entities.

THE COURT: Who is Mr. Rathbun? What is his capacity?

THE WITNESS: Mr. Rathbun has had many capacities. Prior to coming into the Religious Technology Center, he was what was called a client affairs; legal client affairs. And he handled the legal affairs for the publishing aspect for Mr. Hubbard in Author Services. When he moved to Religious Technology Center, he became the inspector general for ethics. Ethics —

THE COURT: Is that what he is now?

THE WITNESS: I’m not sure what he is now —

THE COURT: Okay.

THE WITNESS: — your Honor.

But that position handles all legal PR and intelligence as part of its duties for Scientology organizations.

THE COURT: And do I recall correctly — I know we’ve had a vacation, and frankly some of this has escaped me —

Is Mr. Rinder the head of OSA?

0554

MR. DANDAR: Well, Mr. — at one time, Mr. Shaw, who is the head of OSA here, was — testified that he reported — his senior was Mr. Rinder. What his title was to be Mr. Shaw’s senior, I don’t know.

THE COURT: Well, OSA would have a —

Okay. I believe there’s testimony about that in this hearing that he is the head of the Office of Special Affairs. I think. Maybe not.

MR. DANDAR: All right.

THE COURT: Which includes legal.

THE WITNESS: Yes.

MR. DANDAR: Right.

BY MR. DANDAR:

Q  Now, Mr. Prince, let me show you what’s already in evidence as Plaintiff’s Exhibit 110, known as KSW News. And if you could, I’m going to —

THE COURT: I don’t know — I allowed the answer, but I don’t know what the answer was. I mean, the answer —

MR. WEINBERG: Mr. Shaw can explain it to you.

THE COURT: No. What — what I think — he went off to tell us about Mr. Rathbun. I think the question was why would it have been — why would Mr. Rinder have been called to this meeting. And

0555

is — what is your answer?

THE WITNESS: Right. Because Mr. Rinder would have been in that position, the senior person within the OSA network. And OSA operates on a statistic, just like other departments and sections within the Scientology organization operate on. And a statistic for the OSA would be a threat handled; a threat being a lawsuit or a person that was perceived to be an adversary against Scientology or taken an adversarial position against Scientology.

So getting rid of a lawsuit would be something that would improve conditions, you know, a statistic going up. That would be a good thing for them.

So — and that’s what they focus and concentrate on, handling legal situations.

BY MR. DANDAR:

Q  OSA.

A  Yes.

Q  All right. The KSW News, if you open up to the little — I believe it should be in the middle — there is a list of matters that need to be reported up lines to RTC.

A  Yes.

Q  Do you see that?

A  Yes, I do.

Q  And there’s an arrow that I drew —

0556

THE COURT: You all are too loud back there. Go ahead.

BY MR. DANDAR:

Q  — next to PTS Type III?

A  “Any person who acts PTS Type III, potential trouble source.”

Q  Okay.

A  And that is of concern.

Q  Does PTS Type III include people who are psychotic as well as people who want to leave? A  Correct.

Q  Now, this publication, when was it published?

A  1994 —

Q  And —

— is when the copyright notice is on it, RTC copyright notice.

Q  All right. So it certainly wasn’t published after Lisa McPherson died in ’95.

A  No, it was not.

Q  Now, this reporting up lines of PTS Type III to RTC, was that in effect when you were an active Scientologist?

A  Yes, it was.

MR. WEINBERG: Well, excuse me. What does that mean, an active Scientologist? When he was —

0557

BY MR. DANDAR:

Q  Prior to ’92. Prior to you actually leaving —

MR. WEINBERG: When you were at the RTC?

THE WITNESS: Yes. Yes, it was.

BY MR. DANDAR:

Q  Now, these meetings that you had with David Miscavige and Rathbun and Mithoff, Aznaran and others, you said there was a certain agenda?

A  Correct.

Q  And that the top of that agenda for each of these meetings was what?

A  Flaps.

Q All right. What was —

A  And what the handlings were.

Q  — the next —

How they were handling the flaps?

A  Yes.

Q  What was the — give us a list of — in priority of each meeting.

A  Flaps and handlings. Then statistics, go over the statistics of the departments, the divisions. Then you talk about — the next thing is talk about wins.

Q  Wins.

A  Wins. You know, successes. Scientology successes. Successes on the job, successes within the

0558

organization.

Q  And how often would these meetings occur?

A  Once a week.

Q  And this is just a meeting of people who were at RTC?

A  No. This is a pattern that is continued throughout the majority — all of Sea Org organizations.

Q  That includes Flag?

A  Yes.

Q  And back in —

MR. WEINBERG: Your Honor, could I — the question was about Mr. Miscavige, and the answer obviously was way broader. You’re not — I don’t think Mr. Prince was saying Mr. Miscavige was having meetings on a weekly basis at all the Scientology organizations.

THE WITNESS: No, no. That’s not —

THE COURT: He’s saying, when he was a member and he would meet with these people, what was their agenda? That’s all —

MR. WEINBERG: Right. No — but then the next question was — then what he said was, “And this is done in all Scientology organizations,” which means — I think what he meant was there’s meetings every week in Scientology organizations with people

0559

in the org. That’s what —

THE WITNESS: The pattern of flaps and handlings, statistics and wins, is a pattern that every Sea Org organization has in their meetings, their weekly meetings. Miscavige isn’t at those meetings. I —

BY MR. DANDAR:

Q  But at the meetings that you had and you participated in with Mr. Miscavige, were these meetings — when you say flaps, were they just — my question was, did they just concern RTC or was it flaps —

A  No.

Q  — of what —

A  When RTC has a meeting about flaps and handlings, it could include any aspect of the Scientology empire. It could include the FSO; it could include the organization in Australia if there was a threat in Australia of some org getting ready to be closed down, or if one of the Scientology organizations were raided in Greece or whatever.

You know, it could be anyplace.

Q  All right.

A  Because the problems were existing — in the lower organizations, their flaps —

THE COURT: You need to get to the point.

In your opinion, as somebody who was with — in

0560

RTC, at the time you were there, would the Lisa McPherson situation have been discussed at one of those meetings.

THE WITNESS: Yes, your Honor.

THE COURT: All right.

BY MR. DANDAR:

Q  Is there any doubt about that?

A  No. And as I was getting ready to say is, the reason being is the lower organizations have to report to the higher organizations. The higher organizations have to approve the handlings for the flaps; have to verify the statistics. Then it goes to the next organization, who’ll do the same thing. And by the time it gets to RTC, it’s pretty much confirmed what the lower organization is saying.

And maybe the handlings may be modified, but you know, they’re pretty much all on the same page.

Q  Is there any doubt in your mind — as you sit here today, do you question your opinions that you reached in your August, ’99 declaration concerning the involvement of Mr. Miscavige in the Lisa McPherson as a PR flap?

A  No. I haven’t changed my opinion one bit.

Q  And is that opinion solely your opinion or are you being influenced by anyone to make that opinion?

A  I base my opinions on my personal experience, what I’ve observed, the written word of L. Ron Hubbard.

0561

Q  All right. Now, let’s jump now to 2002. The — we left off with your meeting — I believe you said you had this rather un- — not unpleasant, but bad — heated words were exchanged at that hotel, the Radisson on Clearwater Beach, when you met with Mr. Minton and Ms. Brooks. Do you recall that?

A  Yes, I do.

Q  And Ms. Brooks walked out to the parking lot with you?

A  Yes.

Q  All right. I want to pick up from there.

When is the next time you recall having further conversation with Ms. Brooks or Mr. Minton?

THE COURT: What — do we have the date on that?

MR. DANDAR: April the 14th.

THE COURT: Okay.

A  The last —

MR. WEINBERG: I don’t think he said that —

MR. DANDAR: Yeah. April the 14th.

THE COURT: Well, he said the dates were as they were in his affidavit, ’cause he sat down with a calendar.

MR. DANDAR: Right.

A  The next time that I talked to them, I think, was

0562

maybe a week or some days later, when they were staying at another hotel — oh, wow. Windham, the Hyatt Windham Hotel. I called and spoke to Bob and asked if he wanted to come by to the — ’cause I was having a barbecue.

MR. DANDAR: All right. And Judge, just for the record, I am looking at his April, 2002 Jesse Prince affidavit.

THE COURT: All right.

MR. DANDAR: His handwritten note is April 14th, that’s attached, 2002.

BY MR. DANDAR:

Q  Mr. Prince, the handwritten note, did you write that when you met with me and Mr. Lirot?

A  Yes, I did.

Q  Okay. And after that is when —

Maybe I’m confused. Let’s hold on.

After that is when you had the dinner with Mr. Minton?

A  After I wrote this handwritten note is the Sunday that I met with them at the Radisson.

Q  Is that when you had that heated conversation —

A  Yes.

Q  — at dinner?

A  Yes.

Q  Was that — were you supposed to meet Mr. Rinder

0563

that day?

A  Correct.

Q  And who told you that?

A  Mr. Minton, Mrs. Brooks.

Q  And did you meet with Mr. Rinder on April 14th, 2002?

A  No, I did not.

Q  Why not?

A  Because it was deemed by Mr. Minton that I was not ready, because I was not willing to perjure myself.

Q  And who told you that?

A  Mr. Minton.

Q  How did he want you to perjure yourself?

A  He wanted — he wanted me to come in and say that you influenced me to write the August, ’99 declaration that I did; that you put words in my mouth. And he wanted me to say that some meeting occurred where Mr.  Minton was at, where you talked about adding David Miscavige on as a party.

And he kept using this term of, like, “You have to walk with us on this because we’re going to show you what to do. You know, we’re the A team. We got to be together on this. There can’t be any breaks. This is what we’re doing. This is what I’m saying. This is what you need to do to back it up.”

Q  How did you respond?

0564

A  “I absolutely will not do it.”

Q  Did Mr. Minton ever indicate to you that he knew that he was lying?

THE COURT: Could I ask —

Just one more minute.

What you’re saying — which affidavit is it that they — they, meaning Mr. Minton — wanted you to say Mr. Dandar influenced you to write?

THE WITNESS: The one where I wrote that Miscavige had knowledge and culpability in Lisa McPherson’s death.

THE COURT: The one that dealt with the change — or the amendment of the complaint. Is that the one he’s talking about?

MR. DANDAR: Yes. That’s the one he’s talking about.

THE COURT: That would have been the first affidavit he filed maybe in this case? Well, it doesn’t matter.

MR. DANDAR: No. The first one, I think, was the PC folders.

THE COURT: I know which one you’re talking about.

THE WITNESS: It was the second one.

MR. DANDAR: It’s the August, 1999 affidavit.

0565

THE WITNESS: Right.

THE COURT: And he also wanted you to state —

THE WITNESS: That Mr. Dandar had had a meeting with myself, Mrs. Brooks, Dr. Garko, Mr. Minton, to discuss adding Mr. Miscavige on as a party.

THE COURT: Right.

THE WITNESS: And apparently Bob was saying, you know, and we have to say that Mr. Dandar said that the meeting never happened, and you know, we were adding on Miscavige basically to try to force Scientology into a settlement position.

BY MR. DANDAR:

Q  Was any of that true?

A  No.

THE COURT: Could we find out, since that does seem to be an issue here, what he remembers about whatever meeting there was to discuss adding Mr. Miscavige as a party? Or are you not ready for that, or are you not going to go there, or —

MR. DANDAR: Well, I’m trying to not invade my work product as much as possible. But it is an issue, and so I didn’t — We can ask him that question.

THE COURT: All right.

MR. DANDAR: I just don’t know how far I want

0566

to invade my work product.

BY MR. DANDAR:

Q  But Mr. Prince, do you recall having any meeting with me, Dr. Garko and Stacy Brooks about adding on David Miscavige —

THE COURT: I’m not going to let them get into the extent of the discussion necessarily, other than what we’ve done thus far in this hearing, which is who was there —

MR. DANDAR: Okay.

THE COURT: — and was there a discussion about adding Mr. Miscavige, and who was in favor of it and who wasn’t? That’s pretty much all that’s been discussed.

MR. DANDAR: All right.

THE COURT: And it’s been discussed by a lot of witnesses —

MR. DANDAR: Yes.

THE COURT: — Stacy Brooks, Mr. Minton, Mr. Garko, you.

MR. DANDAR: All right. So — That’s fine.

BY MR. DANDAR:

Q  So was there such a meeting?

A  There was a meeting between you, myself,

0567

Mrs. Brooks, Dr. Garko, where we discussed — and I mean, my recollection is there’s been more than one time that we  discussed this — about adding Mr. Miscavige on as a party.

Q  Was Mr. Minton ever at any of those meetings?

A  No, he was not.

Q  Do you have any idea why Mr. Minton would tell you, when you met with him in April, why he wanted to say he was at a meeting to add on David Miscavige?

A  Because the idea was —

MR. WEINBERG: Objection. If it’s something Mr. Minton told him, fine. But otherwise it would just be pure conjecture.

THE COURT: That’s true. If it’s something Mr. Minton told him, then he can discuss it.

Go ahead.

A  Okay. The idea that Mr. Minton told me is Scientology had several things that they wanted Mr. Minton to do. These were in conjunction and coordination with things that could be done to get the case dismissed. Specifically, going after you. Specifically, you were to be made the target of whatever stack of papers that Scientology provided to Mr. Minton. There was five or six things that they wanted him to do in relationship to you only. And you were the obvious target —

0568

BY MR. DANDAR:

Q  Why?

A  — to —

Because they wanted to get you kicked off the case. Because they figured if they got you kicked off the case, then no other attorney would pick it up and the suit would simply go away.

Q  And Mr. Minton told you this.

A  Yes.

Q  And how many times did he tell you that?

A  Several.

Q  Did Mr. Minton ever indicate to you that he knew that what he was saying about me was not true?

A  Mr. Minton was in — in the — in the very beginning, Mr. Minton was in anguish over the — the prospect of — of lying on behalf of Scientology for — against you. Mrs. Brooks was in a panic and desperate frame of mind to do whatever it took to extricate Mr. Minton from just the assault that Scientology was enacting upon Mr. Minton. And she thought that it would be a good idea for Mr. Minton to cooperate with Mr. Rinder, with Mr. Rosen,  whatever they wanted, to get him extricated from the Scientology assault.

Q  Did Mr. Minton or Ms. Brooks tell you that —

Well, you said they — let me go back.

0569

You said something about Scientology gave Mr. Minton a stack of papers about what he needed to say against me?

A  Yes.

Q  What —

A  Or possible things to go into. And that’s the stuff that came from the Adams Mark Hotel, after we had the meeting, after I went to see him again, after he lied the first time on the stand.

MR. WEINBERG: Well, objection.

A  And —

MR. WEINBERG: If this is —

THE COURT: Wait a minute.

MR. WEINBERG: If this is the same stack that Mr. Prince testified yesterday that he never looked at —

THE COURT: Right.

MR. WEINBERG: — so how’s he going to answer questions about what was in the stack?

THE COURT: He’s not answering questions about what was in the stack. He’s talking about what  Mr. Minton told him. That’s all he’s supposed to  testify about.

MR. DANDAR: That’s what he’s doing.

MR. WEINBERG: Well —

0570

BY MR. DANDAR:

Q  You didn’t look at the stack of papers, right?

A  No, I did not.

Q  So how do you know what was in the stack of papers?

A  ‘Cause he told me. There were five to six things in there that Scientology wanted him to do against you, and you specifically, and you only.

Q  Okay.

A  And two of them were the check. You know, somehow saying that you caused him to perjure himself concerning the check. And then the meeting. These were two very important issues to —

You know, I can’t say that I fully understood it because I’m not a lawyer, but this was very important that they executed in that way.

Q  Okay. And let’s talk about the check, all right?

A  Okay.

Q  Did Mr. Minton ever tell you that — after he met with Scientology, did he ever tell you that the check was from him; that May, $2,000 (sic) check for $500,000?

A  At that time he did.

Q  All right. Did you have any conversation with him as to why he told you something different on the roof of the parking lot across from the Lisa McPherson Trust office?

0571

MR. WEINBERG: Objection. Asked and answered. He talked about that yesterday.

THE COURT: I think he did.

MR. DANDAR: Did he?

THE COURT: Yeah, I believe he did.

MR. DANDAR: All right. Okay.

THE COURT: Do you remember — sometimes one day bleeds into the next. I do know he talked about being on the roof of the parking lot, and I do know he talked about Mr. Minton telling him something different. Did he — Did you discuss yesterday with us why Mr. Minton said he was telling a different story now? I don’t remember.

THE WITNESS: Well, yes, your Honor. Your recall is actually quite correct. Because you yourself asked me, “Well, what did they say,” when I  brought up the fact that we had been on the roof. And he had told us this whole different story. And you asked me, “Well, what did they say,” and I said that, “They just looked at me stupidly.” But of course —

THE COURT: So is the answer then he really didn’t say anything about this difference —

THE WITNESS: Right.

0572

THE COURT: — that you’re telling that —

MR. WEINBERG: Changed the subject.

THE COURT: Changed the subject.

THE WITNESS: Right.

THE COURT: Okay.

BY MR. DANDAR:

Q  Did you ever talk to him again about the check, or was that the last time?

A  I think that is the last time I spoke to him about the check.

Q  Okay. Did you have any other conversations with Mr. Minton or Ms. Brooks about trying to get you to lie and go down the road with him, as you say?

A  Well, I had continuing conversations with them after negotiate — after they had the negotiations in New York and then began the negotiations — continued the negotiations in Clearwater.

MR. WEINBERG: Well, my objection, your Honor, is he went over all this yesterday.

MR. DANDAR: Right.

MR. WEINBERG: I mean, now we’re going back and we’re going to go repeat what happened yesterday.

THE COURT: That’s true. I think we really were, yesterday, up to the point of this forward meeting.

0573

MR. DANDAR: That’s right.

THE COURT: Although frankly, you never did discuss the meeting where there was a discussion to have Mr. Miscavige added. And I think he’s done that now.

MR. DANDAR: Yes, he has.

THE COURT: Right. And — and that was the second thing. And I — I think now you’ve explained that. So you can go — I shouldn’t say you — Mr. Prince can explain what.

THE WITNESS: There was something I left off about Mr. Miscavige — adding Miscavige as well, in the discussions that I had with Mrs. Brooks and Mr. —

THE COURT: Oh, yeah. I don’t believe he’s ever discussed with us what his discussions with Mr. Minton were about that.

THE WITNESS: Right.

THE COURT: So you might want to.

MR. DANDAR: Oh.

THE WITNESS: Right.

MR. DANDAR: Okay. Go ahead.

THE WITNESS: As you well know, and certainly Mr. Weinberg well knows, we all sat before Judge Moody forever on this issue of adding David

0574

Miscavige as a party. We discussed this back and forth.

MR. WEINBERG: “We” being —

THE WITNESS: The judge said a key question to be asked was, is was that anything I wanted to have happen? The answer is no. I was not in favor of  adding David Miscavige. I thought it would drag  down the lawsuit and just be cumbersome.

THE COURT: That’s you. You were not in favor of adding him.

THE WITNESS: Right.

But in discussions about this, it was decided to do it anyway, and it was decided because this is  what Ms. Liebreich wanted to do. But we discussed this. And my — my thing with Mr. Minton as we were  talking about this when they were trying to get me to do this, is when the record is so obvious why and how that happened, why are you now trying to say it’s just all Ken’s fault, when Mrs. Brooks was the one that was really wanting this to happen; wanting to add Miscavige? So we talked about that.

BY MR. DANDAR:

Q  Okay.

0575

THE COURT: And what did he say?

MR. WEINBERG: Excuse me. Talked about it when, then?

So now it’s Ms. Brooks or Ms. Liebreich that wanted this to happen. I mean, I —

THE COURT: No. No. I understand this. Wait till you get the transcript.

MR. WEINBERG: I’m sorry.

THE COURT: It’ll be very clear to you. Don’t  get all flustered.

MR. WEINBERG: I’m not flustered.

THE COURT: Yes, you are.

MR. WEINBERG: I’m hungry.

THE COURT: I’m hungry too. We’re going to stop at 12:30. Did you say you were hungry?

MR. DANDAR: That’s what he said.

MR. WEINBERG: That’s what I said.

MR. DANDAR: That’s a new objection.

THE COURT: Just so we see if the testimony’s consistent —

At this meeting, Jesse Prince was not in favor of adding Mr. Miscavige; Stacy Brooks really wanted to add David Miscavige. What about Dr. Garko?

THE WITNESS: Dr. Garko was hesitant about it.

And —

0576

THE COURT: Okay.

THE WITNESS: And Mr. Minton didn’t care one way or the other. I mean —

THE COURT: I thought Mr. Minton wasn’t there.

THE WITNESS: You know, later, when we discussed it, when, you know, Stacy — we went to the office. And Stacy says, “Well, I think, we’re  going to do this,” and he’s, like, “Yeah, okay. So what?” Because Mr. Minton always — you know, he was concerned about what he was doing. Mr. Minton  wasn’t concerned with what Mr. Dandar was doing  or — or what Mr. Prince was doing or Mr. Brooks  (sic). He had his own agenda. When he came down  to — here in Florida, he would be more concerned  about what he was doing.

BY MR. DANDAR:

Q  Well, was there a meeting with Mr. Minton?

A  No.

Q  Well, what are you talking about when you said Minton — Mr. Minton didn’t care?

A  I recall Stacy Brooks and myself having a conversation with Mr. Minton, mentioning the fact that we were doing this.

Q  Oh, okay. Was I there, or Dr. Garko?

A  No.

0577

Q  All right.

A  No. And he’s like, “Okay. Where do you guys want to eat,” type of thing. You know, he just didn’t care.

“Okay.” You know, that’s — “Ken –” “Whatever.”

Q  Did Mr. Minton ever tell you he had an agenda?

MR. WEINBERG: Excuse me, your Honor, could we date that meeting?

MR. DANDAR: Yeah. Let’s date the meeting.

MR. WEINBERG: And where it was?

MR. DANDAR: Yeah.

THE WITNESS: When Stacy and I discussed it, I think it was probably — some — maybe a week or sometime prior to the fifth amended complaint actually being filed —

BY MR. DANDAR:

Q  Well —

A  — we discussed it.

Q  — there were several times that the fifth amended complaint —

MR. WEINBERG: Well, your Honor —

A  Well, okay. To answer the question, no, I don’t know when it was. I just know —

THE COURT: No. I think —

MR. WEINBERG: My objection was Mr. Dandar prompting him.

0578

THE COURT: No, he wasn’t prompting him.

There were several fifth amended complaints. I would like to know.

Was it the fifth amended complaint where Mashburn (sic) and — Rathbun — all those other people were added or was it the fifth amended  complaint that’s now the complaint?

THE WITNESS: Your Honor — I don’t —

THE COURT: Or do you know?

THE WITNESS: I don’t have a clear recollection of which —

THE COURT: Was this a discussion where it was decided to add Mr. Miscavige as, I guess, chairman of the board of RTC — I don’t know how — I’ve never seen that complaint — or was it before the discussion to add Mr.

Miscavige as head of the Sea Org?

THE WITNESS: I think it was after the discussion to add — after it had been resolved that Mr. Miscavige could be added as head of the Sea Org.

You know —

THE COURT: After it was resolved by whom? By Judge Moody?

THE WITNESS: Yes. By Judge Moody.

THE COURT: Then you had a discussion with

0579

Mr. Minton about this?

THE WITNESS: Yeah. I believe he, Stacy and I were in the car, traveling, and we talked about it.

THE COURT: Okay.

BY MR. DANDAR:

Q  So it was after the hearing we had, you said took forever, with Judge Moody?

A  I know that it became a serious possibility after we exhausted, in front of Judge Moody, every way of whether or not it would be correct or appropriate or even allowed to do it; coming in as head of the Sea Org, when Judge Moody said that it could — that he could be added as head of the Sea Org, not as COB because of that agreement.

Q  Right.

A  Which, you know, I didn’t even know about until after the fact.

MR. DANDAR: All right. Okay. Probably a good time to break for lunch, unless you have a question, Judge.

THE COURT: I think it’s a good time to break for lunch. We’ll be in recess — you know, an hour just isn’t enough. I need to make some phone calls and sign some things. We’re going to break until quarter till 2.
Court’s in recess.

MR. WEINBERG: And the same instructions to

0580

Mr. Prince.

THE COURT: Same instruction.

(A recess was taken at 12:29 p.m.)

0581

REPORTER’S CERTIFICATE

STATE OF FLORIDA  )
COUNTY OF PINELLAS )

I, Donna M. Kanabay, RMR, CRR, certify that I was authorized to and did stenographically report the proceedings herein, and that the transcript is a true and complete record of my stenographic notes.

I further certify that I am not a relative, employee, attorney or counsel of any of the parties, nor am I a relative or employee of any of the parties’ attorney or counsel connected with the action, nor am I financially interested in the action.

WITNESS my hand and official seal this 9th day of July, 2002.

______________________________
DONNA M. KANABAY, RMR, CRR

Notes

Declaration of Michael Lee Hertzberg (September 20, 1999)

Gerald L. Chaleff, SBN 39552
ORRICK, HERRINGTON & SUTCLIFFE LLP
777 South Figueroa Street, Suite 3200
Los Angeles, California 90017-5832
Telephone: (213) 629-2020

William. T. Drescher, SBN 93737
LAW OFFICES OF WILLIAM T. DRESCHER
PMB 338
23679 Calabasas Road
Calabasas, California 93102-1502
Telephone: (818) 349-8100
Attorneys for Non-Party
CHURCH OF SCIENTOLOGY INTERNATIONAL

Samuel D. Rosen, pro hac vice
PAUL, HASTINGS, JANOFSKY & WALKER LLP
399 Park Avenue, 3 1 st Floor
New York, New York 10022-4697
Telephone: (212) 318-6000

Alan K. Steinbrecher, SBN 79201
PAUL, HASTINGS, JANOFSKY & WALKER LLP
555 South Flower Street, 23rd Floor
Los Angeles, California 90071-2371
Telephone: (213) 683-6000
Attorneys for Non-Party
RELIGIOUS TECHNOLOGY CENTER

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES

LARRY WOLLERSHEIM,

Plaintiff,

vs.

CHURCH OF SCIENTOLOGY OF
CALIFORNIA,

Defendant.

)
)
)
)
)
)
)
)
)
)
Case No. C 332 027

DECLARATION OF
MICHAEL LEE HERTZBERG
1

DATE: October 15, 1999
TIME: 8:30 a.m.
DEPT: 24
Judge Charles W. McCoy, Jr.

I, Michael Lee Hertzberg, hereby declare and state:

1. I am an attorney, admitted to practice before the courts of New York State, the District of Columbia Bar, Ninth Circuit Court of Appeals and the United States Supreme Court. I make the following statement of my own personal knowledge, and if called to testify thereto, I could and would do so competently.

2. I was counsel of record in Aznaran v. Church of Scientology of California, et al. I was present in May of 1994 in Dallas, Texas when Vicki Aznaran settled her then pending litigation against several churches of Scientology and related organizations. I was present to provide legal advice to the representatives of the defendants who were negotiating directly with Ms. Aznaran. She was represented by her attorney, Karen MacRae of Dallas.

3. On May 19, 1994 when Ms. Aznaran settled her litigation, she executed several declarations. Annexed hereto as Exhibits A – E are true and correct copies of the declarations executed by Ms. Aznaran. Her declarations cover a wide range of subjects. The most comprehensive declaration is annexed hereto as Exhibit A. This declaration provides an overview of her experience as a litigant against churches of Scientology, tactics used by individuals litigating against churches of Scientology, specific allegations from her complaint that she formally repudiated and ordered her attorneys to withdraw, the payment of thousands of dollars to witnesses for sworn statements against the churches of Scientology, and the addition of eleven pages of one of Ms. Aznaran’s declarations by an attorney representing opponents of Scientology, Graham Berry.

4. The remaining declarations (Exhibits B – E), cover specific topics related to Ms. Aznaran’s experiences as a litigant against churches of Scientology. Specifically, these declarations cover the following topics:

– Litigation tactics by Lawrence Wollersheim and Gerry Armstrong (Exhibit B);

– A specific refutation of claims that her testimony supports the contention that Church officials have destroyed documents in litigation (Exhibit C;

– Ms. Aznaran’s knowledge regarding Stacy Young (one of Mr. Wollersheim’s witnesses) (Exhibit D);

– In this declaration Ms. Aznaran also repudiates allegations of corporate irregularities similar to those being made in the instant case (Exhibit A);

– A declaration in which Ms. Aznaran explains why she executed the other declarations and her response to what she anticipates other apostates will say about her for having revealed their tactics (Exhibit E).

5. I invite the Court’s attention to particular passages relevant to the claims at issue here. Ms. Aznaran signed her declarations in May 1994, a year after her most recent statement cited by Wollersheim in support of his motion. In one declaration Ms. Aznaran explains how witnesses have been conditioned to sign affidavits to support whatever arguments opponents of churches of Scientology wish to “prove”:

The abusive device most consistently utilized by litigants and counsel adverse to the Church occurs in connection with the filing of declarations or affidavits. It is common knowledge among the stable of disaffected ex-Scientologists who supply such sworn statements that the attorneys dictate the desired content of such testimony with the primary, often sole, purpose of presenting inflammatory accusations that prejudice the Church in the eyes of the court. In such declarations or affidavits, context, the truth, and relevance to the issues in the case are disregarded altogether. As time has passed and this technique has evolved, anti-Church litigants and their counsel have become more and more emboldened in making such declarations and affidavits because the tactic has proven to be so effective in poisoning courts and juries against the Church.

Thus, it has become a routine practice of litigants to make accusations against the Church, including even false allegations of threats of murder, which would be summarily thrown out of court as unsupported and scandalous in other litigation. There is a group or “team” of anti-Scientology witnesses who are being paid for their testimony, and based on my experience, this testimony is being altered and falsified, either by the witnesses themselves or the attorneys. (Ex. A, Declaration of Vicki Aznaran; 12, 17, 19.)

6. Ms. Aznaran even predicted that the attached declarations would be attacked by adverse litigants whose litigation tactics she has exposed:

On May 19, 1994, my husband and I each executed a series of declarations under penalty of perjury addressing a variety of issues. Among those declarations are one of mine that demonstrates that perhaps the most common litigation ploy that is used against Churches of Scientology is for opponents to submit false, inflammatory and accusatory declarations which make wild accusations irrespective of their falsity, lack of relevance, or lack of first hand knowledge.

I am executing this declaration on May 19, 1994 because I am certain that litigation opponents of the Church will react to one or more of my other contemporaneously dated declarations in precisely the fashion I describe in the preceding paragraph.

(Ex. E, Declaration of Vicki Aznaran; 2, 3.)

7. Ms. Aznaran identifies Stacy Young as employed by Graham Berry, Mr. Leipold’s former co-counsel in Wollersheim, to create inaccurate affidavits:

I know from subsequent conversations I have had that Andre Tabayoyon is similarly employed, as are Vaughn and Stacy Young and others, each paid to create declarations for Mr. Berry when he needs them. On the basis of my knowledge of the Church and the declarants, I can state that these individuals are not “experts” ‘in any recognized sense of the word as I understand it. They are nothing more than witnesses who are being paid to make sworn statements against the Church. More than just being paid, they are actually employed by Mr. Berry as a source of signed declarations of testimony or as a ” source” of allegations, the need for such is decided by him. (Ex. A, Declaration of Vicki Aznaran; 22.)

That Vaughn and Stacy Young are experts is not true. They are being called experts not due to expertise in Scientology but in order to collect insurance money for their testimony.

What this creates, and what the Youngs are part of, is a stable of people who, for pay, write declarations. (Ex. D, Declaration of Vicki Aznaran; 7, 8.)

8. Ms. Aznaran also swore to Ms. Young’s lack of knowledge of inside workings of churches of Scientology, both corporately and ecclesiastically:

In my staff capacities in the early 1980s, and later in my executive positions in the Religious Technology Center, I was directly or closely involved in meetings with senior staff members of various Church corporations. These senior staff made significant or major decisions which affected the future of the Church. I know that neither Vaughn nor Stacy Young were included in such senior decision-making processes. They were never senior or key Church executives. They were not consulted regarding, nor were they privy to, the meetings where major issues were discussed an decisions made.

I am informed that the Youngs have made claims to specialized knowledge about the corporate status and structure of the Church. Such claims are false. Neither of the Youngs were in a position to have detailed knowledge of the corporate and fiscal structures and operations of any Church of Scientology. In fact, Vaughn Young worked in the area of Public Relations for the entire time that I was acquainted with him. Stacy was primarily a writer in the Church public relations department. (Ex. D, Declaration of Vicki Aznaran; 4, 5.)

9. Ms. Aznaran repudiated allegations of corporate irregularities that were contained in her complaint against the Church of Scientology of California. These allegations are very similar to those being made by Wollersheim in the instant case:

Paragraph 16 of the complaint included the allegation that I had been employed as a “missionaire” to remove assets of Defendant Church of Scientology of California to overseas trusts where they could not be accessed. This allegation was false, and it was not an allegation that either my husband or I requested be included in the complaint….

It was also alleged in paragraph 16 of the complaint that I was employed as a”missionaire” to “set up sham corporate structures to evade prosecution generally.” This allegation is also false. (Ex. A, Declaration of Vicki Aznaran; 8, 9.)

10. In another sworn declaration Ms. Aznaran identifies Wollersheim witness Gerald Armstrong as the source of a litigation technique utilized by this small group of witnesses:

The fundamental premise upon which the Church’s adversaries and their lawyers operate is the likelihood that courts and juries are willing to believe any allegation made against the Church by a former member, without regard to plausibility, contrary evidence or the true facts. That concept was most succinctly expressed, on videotape, by anti-Scientology litigant, Gerald Armstrong, when he state that a lack of documents or evidence was no impediment to litigating against the Church when the litigant can “just allege it.” The active pursuit of that litigation approach has now led to the formation of a small group of disaffected Scientologists who are now employed by an even smaller number of attorneys who are making a practice of litigating against the Church. This stable of witnesses can be relied upon to furnish ” corroboration” for any allegation which an attorney wishes to make against the Church in pleadings, at deposition, in affidavits, and ultimately in trial testimony. (Ex. A, Declaration of Vicki Aznaran; 5.)

11. Ms. Aznaran even addressed Larry Wollersheim’s allegations:

While I was in the Church I witnessed the “Fair Game” allegations made by Gerry Armstrong and Larry Wollersheim in their litigation against the Church. My position in the church at the time gave me broad access to what was occurring and I would have known were the allegations made by Armstrong and Wollersheim true. Wollersheim, for example, made the allegation that a pipe bomb was found on his parent’s lawn and, without any corroboration, blamed the Church. I know from my own personal knowledge that this outrageous allegation of Church involvement is absolutely false. During the Wollersheim trial, rumors began to spread throughout the trial courtroom that Judge Ronald Swearinger had been followed, his tires had been slashed, and his pet dog drowned, and that the Church was responsible for that supposed activity. All of those allegations of Church complicity were false, as I now personally attest. Armstrong alleged the Church was trying to kill him and this allegation was just made up. I know of its falsity of my own personal knowledge. Both Armstrong and Wollersheim, continue to make the same type of outrageous allegations of Fair Game to forward their litigation to this day, due ‘in no small measure to the fact that they practiced Fair Game so effectively in their earlier, victorious litigation against the Church.” (Ex. B, Declaration of Vicki Aznaran; 12.)

12. An allegation relied upon by Wollersheim is that David Miscavige ordered Vicki Aznaran and Jesse Prince to destroy documents, including documents compelled to be produced in this case. However, Ms. Aznaran states in another declaration:

During the time I was President of RTC, we fully complied to all discovery requests, I have never received an order from David Miscavige, Norman Starkey or Lyman Spurlock to destro any documents related to litigation and I have no reason to believe that the Church would destroy any documents related to the consolidated cases… (Ex. C, Declaration of Vicki Aznaran; 8.)

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

Executed this 20th day of September, 1999 at ______________.

MICHAEL LEE HERTZBERG

Notes

  1. Document source: http://bernie.cncfamily.com/sc/Aznaran.htm

Affidavit of Jesse Prince (August 20, 1999)

IN THE CIRCUIT COURT OF THE THIRTEENTH JUDICIAL CIRCUIT
IN AND FOR HILLSBOROUGH COUNTY, STATE OF FLORIDA
GENERAL CIVIL DIVISION

ESTATE OF LISA McPHERSON, by and through the Personal Representative, DELL LIEBREICH
Plaintiff,

vs.

CHURCH OF SCIENTOLOGY FLAG SERVICE ORGANIZATION, INC.; JANIS JOHNSON; ALAIN KARTUZINSKI; and DAVID HOUGHTON

Case No. 97-01235

Defendants.
_________________________________/

STATE OF FLORIDA :
COUNTY OF HILLSBOROUGH :

 

AFFIDAVIT OF JESSE PRINCE1

BEFORE ME, personally appeared JESSE PRINCE, who, after being duly sworn, deposes and says:

1. I am over 18 years of age and currently reside in the state of Illinois, Cook County. This declaration is of my own personal knowledge and if called upon to testify to the facts herein I could and would be competently able to
testify thereto.

My History in Scientology

2.        I was in Scientology for 16 years (1976-92). In July of 1992, I escaped with my wife from Scientology headquarters at Gilman Hotsprings, Ca. Under duress, my wife and I were forced to return. After intense interrogation and isolation, my wife and I on October 31, 1992, were able to leave Scientology, but only after we were coerced to sign a release containing untrue statements protecting Scientology from legal liability. I remained silent about my experience in Scientology, since upon leaving I was subjected to routine monitoring by Mike Sutter of the Religious Technology Center, (RTC), and Earl Cooley, Scientology counsel. In July of 1998, I discovered that others had similar experiences and were courageous enough to speak out against Scientology. I therefore ended my silence so that others would know about the truth of what really happens within the inner circles of Scientology.

2. I am intimately familiar with the organization, movement, beliefs, practices and technologies of Scientology. I served in the highest ranks of Scientology, including second in command of the Religious Technology Center
(RTC), the most senior body of Scientology.

3. Beginning in March of 1983 and until the Spring of 1987, I held the position of “Deputy Inspector General, External”. In this position, I was one of three members of the Board of Directors of RTC while David Miscavige was on its Board of Trustees.

4. In the position of “Deputy Inspector General, External”, I was in charge of supervising all activities in every aspect of Scientology, i.e., supervising senior management structure of the “mother church”, Church of Scientology International, CSI. In the hierarchy of all of Scientology, I was only two steps removed from L. Ron Hubbard. Mr. Hubbard gave his orders to David Miscavige who in turn gave them to me to supervise, delegate and enforce their execution. Corporately speaking, Vicki Aznaran, the President of RTC, and I were accountable and reported only to David Miscavige and L. Ron Hubbard. RTC gave CSI the license to use Dianetics and Scientology technologies.

5. Moreover, I was in charge of the Trademark Integrity Secretary, (TMI Sec), Jim Mooney, who had authority over the senior management of CSI called the Watchdog Committee. This Committee has complete authority over the different sectors of all of Scientology. The members of this committee are comprised of senior management officials who oversee and control the management of the following: FLAG SERVICE ORGANIZATION,(FSO); World Institute of Scientology Enterprises, (WISE); Scientology Missions International,(SMI); Reserves, the person responsible for the management and supervision of all bank accounts and revenues; Golden Era Productions, (GOLD);Flag Land Base,(FLB); Sea Org, (SO); Celebrity Center International, (CCInt); and Office of Special Affairs, (OSA), which handles all the legal and intelligence functions of Scientology.

7. Some of my specific duties as Deputy Inspector General, External, included supervising all litigation by or against any Scientology organization, intelligence and covert operations brought against perceived or imagined “enemies”, trademark registrations, and the licensing of trademarks to other Scientology corporations to create the false impression of “corporate integrity”. I was also in charge of the “Celeb Project,” which ran all auditing of Scientology celebrities, such as John Travolta, Priscilla Presley, Kirstie Alley, Anne Archer, and Chick Corea to name a few. I was also the auditor for David Miscavige and his wife, Shelly. I was the course instructor for all of the auditing courses for Alain Kartuzinski and his Cramming Officer for Class 10, 11, and 12, 12 being the highest level an auditor can reach.

6. I first became involved with Scientology in September, 1976, in San Francisco. In late 1976, I joined the elite Scientology paramilitary organization known as the Sea Organization, also known as the “Sea Org” or the acronym “SO”. Sea Organization personnel are authorized to take over and control Scientology organizations and to demote or promote personnel including chief executives, move bank accounts, and run the corporation as if SO personnel were employees or representatives of that corporation. The power of the SO is not only over the purported religious Scientology organizations but also prevails over the secular organizations such as WISE or Bridge Publications. The Sea Org’s pervasive authority is possible because the only personnel allowed into executive positions in these organizations are those who are in full agreement that the Sea Organization is the commanding organization.

7. Before I was recruited into the Religious Technology Center (RTC) in 1982, most of my experience was with Scientology technical material; the actual codified auditing and administrative techniques used within the  organization. This gave me considerable time to become familiar with these technical materials, most of which was written by Scientology founder L. Ron Hubbard. My knowlege and expertise of the technologies prompted my promotion to a technical position at RTC.

8. In the fall of 1982, L. Ron Hubbard issued an order to find the best Supervisor/Cramming Officer in all of Scientology and bring that person to Golden Era Productions (GOLD) to correct and train the senior executive management structure of the Scientology empire all around the world. A Supervisor in Scientology is analogous to a teacher in a class room. A Cramming Officer is responsible for the correction of individuals who have difficulty in executing the techniques of Dianetics and Scientology or otherwise following the dogma of L. Ron Hubbard to the letter. Mike Eldridge, a personal emissary of L. Ron Hubbard, in charge of conducting the search to
find the most qualified person to serve as Supervisor/Cramming Officer, recommended me to David Miscavige, who ultimately approved my appointment. I was transferred to, lived and worked at what is known as “Golden Era Studios,” near Hemet, California. It is also known as “Gold” or simply “The Base”, where senior management of Scientology is headquartered.

9. By Scientology standards, I was a very highly trained auditor and case supervisor. An auditor in Scientology is a trained practitioner of the pseudo scientific methodology of psychological counseling commonly referred to as “The Tech,” as dictated and written by Scientology founder L Ron Hubbard. A case supervisor is also a trained auditor who reads the “auditing” records of every counseling session performed by an auditor to ensure “The Tech” was applied exactly. In Scientology there are 12 levels of auditor and case supervisor classification, each level being “higher” than the next. In this system, I was certified as a Class 9 Auditor and a certified Class 9 Case Supervisor.

10. In my capacity as Deputy Inspector General, External, I traveled about the U.S. and outside of the U.S. on behalf of RTC. I traveled to Germany, Italy, Australia, United Kingdom, Denmark, Mexico and Canada. These trips were designed to put together an infrastructure that would interface with RTC for the purpose of trademark enforcement. I was personally chosen by David Miscavige over Vicki Aznaran to speak on behalf of RTC to a worldwide audience via satellite to warn them that RTC holds the trademarks of Scientology and eradicates all those who violate “The Tech” or infringe on trademarks.

11. I became familiar with the trademark laws of the various countries in which I traveled. I interviewed and retained law firms, and put personnel in place that would report to RTC and be our site representatives. I testified as an expert witness on Scientology technology on behalf of RTC in federal court in Los Angeles in a RICO action with RTC as the plaintiff in 1985. In 1983, on orders from L. Ron Hubbard, I brought into existence within RTC a unit called “The Tech Unit”. The Tech Unit had the responsibility of inspecting PC files a/k/a Pre-Clear files, (counseling files), in all Scientology organizations to ensure “The Tech” was being applied 100% according to the standard tech.

12. When Hubbard died in 1986, there was a power struggle in Scientology for the next 18 or so months that resulted in Hubbard’s closest and most powerful aide (Pat Broeker) being removed from Scientology. Total power was taken over by David Miscavige who purged the organization of anyone who was friendly with Broeker. In mid 1987, because I did not want to participate in Miscavige’s power struggle to become the head of Scientology, I was forcefully removed from my position and put under armed guard at Happy Valley, located deep in the desert behind the Soboba Indian Reservation. It is my belief that my undated resignation, which I signed when appointed to the Board, was then dated and used to make it appear that I had resigned, when I had not.

Practices of Scientology

13. From time to time, based on orders that I received from David Miscavige, I would order others to engage in illegal activities against perceived enemies of Scientology. These activities included, but were not limited to, wire-tapping and document destruction. For example, on or about April,1983, I was present at a meeting which took place in Los Angeles, California, at a Scientology office called Author Services, Inc. (ASI), a for profit company
and the “literary agency” for Hubbard, run by David Miscavige. There is no real corporate structure among the many Scientology corporations. ASI was the meeting place where various Scientology corporations went to receive orders. Present at this meeting was David Miscavige, then the Chairman of the Board of ASI, Vicki Aznaran, Deputy Inspector General of RTC, Marc Yeager, Commanding officer of CSI, and Lyman Spurlock, who was “Director of Client Affairs” for ASI. Mr. Miscavige expressed concern at this meeting that there might possibly be a raid on Scientology by the IRS. At that time, none of the churches of Scientology had received tax exempt status. At this meeting, David Miscavige announced to the group that the destruction and alteration of documents to protect Scientology was in progress. One principal reason why tax exempt status had not been granted was the IRS’s position that Scientology founder, L. Ron Hubbard (LRH), was actually the managing agent of Scientology in complete disregard of the corporate structure of Scientology. We knew this to be a fact, but also knew that it violated IRS rules and thus had to be hidden. There was concern that the IRS would obtain the hundreds of daily, weekly and monthly LRH orders written by Hubbard and distributed throughout Scientology. These orders were commonly referred to in Scientology as “advices” to avoid the appearance that Hubbard was actually running Scientology. In fact, Hubbard was running Scientology. The principal concern expressed at this meeting was that the LRH orders or “advices” would be used to name Hubbard as the managing agent of Scientology. Because of an already existing fear that an LRH “advice” might fall into the wrong hands, these orders from him were written in a way that we could deny it was from him. His name was not on them. He was never cited in the dispatch except in the third person. There was no signature and a salutation in reply was never more than “Dear Sir.” The routing at the top referred to him merely as “###”, (three pound signs), while his closest aids, Pat and Annie Broeker, were referred to as “* “, (an asterisk). However, if a person (or agency) got enough of these, there would be little doubt that we were in touch with Hubbard (via ASI) and that he was telling us and each corporation what to do to make him more money.

14. David Miscavige specifically ordered destruction of any documents in ASI’s posession which would implicate Hubbard as managing agent of Scientology. He stated that under his directive the LRH orders, or “advices” were being collected and transferred by truck to a Riverside County recycling plant where the documents were to be “pulped.” This method of destruction was considered to be better than shredding. I was also put in charge of purging the remainder of the LRH orders, i.e. “Advices”. This was to include “advices” that were located in Church of Scientology of California (CSC); Church of Scientology International (CSI); and RTC.

15. Several weeks after the April, 1983 meeting, I attended another meeting at the ASI offices concerning the continuing destruction of Scientology corporate documentation. In attendance at this meeting were David Miscavige,
Lyman Spurlock, Vicki Aznaran, Norman Starkey, Marty Rathbun, and Scientology attorney, Earl Cooley. At this meeting, Miscavige, for the first time, stated that Scientology had been ordered by a court to produce various documents concerning a former Scientology member, Lawrence Wollersheim, who had a lawsuit pending in Los Angeles against the Church of Scientology of California. The court had ordered Scientology to produce  Wollersheim’s entire Pre-Clear file.

16. A “Pre-Clear” file is one of the several files kept on members. The Pre-Clear file is the file that includes all written records of all “confessionals’ done by the member. This means that it includes not only the most self-damaging material, but it also reflects every problem the person might have had with the organization, including complaints. This Pre-Clear file grows with the person’s tenure in Scientology.

17. Mr. Wollersheim’s Pre-Clear file was several thousand pages in length and stood as high as a six-foot tall man. Initially at this meeting, it was decided that Mr. Wollersheim’s Pre-Clear file would be redacted and culled of any evidence or documentation which might assist Wollersheim in his lawsuit against CSC. There was also concern that the materials known as Clear, OT I, OT II, OT III, and NED for OT’s (NOTS) would be open to public  inspection if Wollersheim’s files were produced as ordered. Scientologists are taught that a person could catch pneumonia and die if that person is prematurely exposed to these “upper level” materials without first having taken many hours of preparatory auditing.

18. Wollersheim’s Pre-Clear file was purged of any incriminating evidence against Scirentology based on a direct order from Miscavige in the presence of Scientology’s lead trial counsel, Earl Cooley of Boston, Massachusetts. Mr. Cooley thereafter represented to the court that the purged file was indeed the entire PC File of Mr. Wollersheim. Ultimately, approximately 50 pages were produced pursuant to the court order.

21. Later, I was informed that a second court order was issued to produce Wollersheim’s entire file. Faced with the prospect of having to produce the entire file, Miscavige gave orders that the entire file simply be destroyed by being pulped.

22. Pursuant to Miscavige’s orders, I ordered Rick Aznaran to take Wollersheim’s Pre-Clear files to the recycling plant in Riverside to be pulped. Several hours after I gave the order to have Wollersheim’s Pre-Clear files destroyed, Rick Aznaran returned and confirmed that the records had been pulped and even showed me a small bottle of pulped material. “Here’s what’s left,” he said.

23. Members of Scientology are induced to confess to acts that, if not outright criminal, are embarrassing or possibly destructive to the person’s job, marriage or profession. For example, shoplifting, adultery, masturbation, homosexuality, drug abuse, or any other potentially embarassing or illegal matters are recorded. Members are urged to write down these compromising facts in their own handwriting, under the guise that it is a “religious confessional” for the member’s good. The truth is that these “confessions” are kept to blackmail and extort members should they dare to speak out against Scientology. Members are also coerced to sign documents that are  self-damaging in order to protect Scientology in case they dare to leave its control and speak the damaging truth. I know all this to be true, because I watched this done to others; I did it to others; and it was done to me.

24. I have personally witnessed executive decisions directed to members instructing them to “end cycle”, i.e., die. I have personally read written instructions by Ray Mithoff concerning the following individuals: a) Diane Morrison, a personal friend of mine. She had cancer. Radiation treatment is forbidden by Scientology. She was instructed by Ray Mithoff to “end cycle.” Her husband, Shawn Morrison, was ordered by Ray Mithoff to transport her off of the Scientology property at Gilman Hotsprings, California, to her mother’s house so that she would not die on Scientology property. b) Ted Cormier, a personal friend of mine. He had Parkinson’s disease. He was ordered to leave Gilman Hotsprings and go directly to Flag for NOTS 34, auditing to cure his cancer. When this failed, Ray Mithoff sent him orders in his Pre-Clear folder for him to “end cycle.” He died.

25. I have personally reviewed a video of a television interview of Roxanne Friend, a former Scientologist. She had cancer which could have been successfully treated. She was kidnapped in California and taken across
country in a motorhome to FLAG in Clearwater where she was held against her will, which prevented her from getting cancer treatment. After she escaped she gave this interview that I observed on a television talk show. She
disclosed that she was beyond treatment because of this delay and subsequently died. Based on my experience in Scientology, her statements ring true.

My Experience with Isolation

26.  In 1973, Hubbard announced to the Scientology world that he had solved the problem of how to handle a person in a “psychotic break”. Hubbard stated that this was a “technical breakthrough” which possibly ranks with the major discoveries of the twentieth century. He further said his discovery means the last reason to have psychiatry around is gone. He went on to say the key is what caused the person to introspect before the psychotic break. During my tenure in Scientology I have observed four instances of people having a psychotic break. In each case the person was sleep deprived; each had been told their job performance was inadequate; and each person was subjected to Scientology ethics.

27. I am familiar with the practice of “Isolation,” also known as “baby watch” as practiced by Scientology and I have participated in the “handling” of one Scientologist that was ordered to “Isolation”. No one volunteers to go into Isolation. I have seen with my own eyes how a person is driven to the point of having a “psychotic break” and the subsequent brutality of treatment the person then receives as a result of the handlers following strict Scientology methods.

28. In the four instances of Isolation I observed, the person was locked in a room with at least two other people guarding the exit door. The people that watch the person in a psychotic break are not allowed to talk to the person at all. They are only allowed to physically restrain the person. The reason there are people guarding the exit door is that the person wants to leave and attempts to leave time after time. By their own policy the person in a psychotic break is not allowed to leave until the Case Supervisor allows it. Here is a direct quote from Scientology technical “Introspection Rundown, Additional Step”: “Dear Joe. What can you guarantee me if you are let out of
Isolation?” If the persons’s reply shows continued irresponsibility toward other dynamics or fixation on one dynamic to the exclusion of others damaged, the C/S (Case Supervisor) must inform the person of his continued Isolation and why. Example: “Dear Joe. I’m sorry but no go on coming out of isolation yet…”

29. In 1987, I was at a place called Happy Valley, located behind the Soboba Indian Reservation in California. Happy Valley is where the Scientology Rehabilitation Project Force, RPF, is located. It is a prison /slave labor camp for Scientologists who no longer ascribe totally to the doctrine of Scientology. I, along with six other Sea Org members, were ordered to do a “isolation watch” on another Sea Org member who was having a psychotic break. Prior to having the psychotic break the person was very normal. She had been deprived of sleep for many days due to a deadline she was ordered to meet on her job. She was sent to “Ethics” and was constantly humiliated and degraded for making errors and for falling asleep at her work station. When she was given to me to watch she was on her hands and knees and literally barking like a dog. She thought she was L. Ron Hubbard. It was at this time that I learned how forced feeding was done and the extent of restraint we all had to enforce on a young woman barely 5 feet tall. I was horrified at just how close she was to losing her life due to the “help” we were being ordered to give her. Even though she was now being allowed to sleep, she could not sleep and had been up for nearly four days. She was in a very agitated and violent state. She would scream for hours until she could scream no more. She fought to escape and mutilated herself in the process. Finally a doctor was called in and it took four people plus the doctor to hold her down to give her a shot to make her go to sleep.

30. A major part of the trauma a person experiences in Scientology’s “isolation” treatment is the person’s struggle to get away or to get out of the room they are being confined in. The young woman I had to “iso watch” had
numerous injuries as a result of her beating on the walls and the door trying to get away. She would drift in and out of her psychotic state. I was informed by the security guard watching over us all that her family was desperately trying to find her and during the times when she was “okay” I had to let her call her mother after I told her what to say. I held a separate phone while she talked to her family and when things started to get “weird” I would end the conversation. She would tell her mother that she was okay and would be home soon. During this time she became very upset with me because I made her see a doctor she did not know and who was not allowed to talk to her
while he was giving her shots. She physically attacked me on more than one occasion. This was a public relations nightmare for Scientology and this is why she was told to lie to her family about what was really going on with her. This went on for two months. After she seemed stable for a week and completed the “Introspection Rundown” she was made to sign a release form which in essence said Scientology was not responsible for what had happened to her and she was quickly sent home.

31. If I had not forcibly made her drink water, I am positive that based upon my own observations she would have died.

32. The people who are selected to watch a person in a psychotic break are trained to make a person physically comply with orders and demands. Controlling a person physically is taught in Scientology in its Training Routine Courses. As an example, in what is called “Training Routine 7, High School Indoc” the Scientology student is trained to never be stopped by a Pre-Clear. No matter what the person in “Isolation” does or says, they are not allowed to leave until the C/S says they can.

My Involvement in the case of Lisa McPherson

33.  I have been retained as an expert witness and trial consultant in the case of Lisa McPherson since Nov, 1998. In Dec, 1998, Scientology representative Glenn Stilo brought Lisa McPherson’s Pre Clear files to the
office of Ken Dandar by order of this court for inspection. Glenn Stilo and I knew each other when I was in Scientology. At that time, Glenn was fully aware that I was present at Mr. Dandar’s Office and that I was there inspecting Lisa McPherson’s auditing files. I have also reviewed the “caretaker logs” of Lisa McPherson at the Fort Harrison Hotel and her Ethics File.

34. It is obvious from these files that Lisa McPherson complained that auditing and Scientology were not working for her in 1995 and that she wanted to leave and return to Texas. Her “stats” were down, i.e., her production and income at AMC Publishing. As a result, she was placed in Ethics at her work where the records revealed that she was constantly doing “amends” and writing “O/W’s”, overts and write-ups, which resulted in less time to obtain adequate sleep which further, in my own observations, leads to psychotic breaks. This is confirmed by L. Ron Hubbard in his own writings, “Introspection Rundown Additional Steps.”

35. FLAG at the Ft. Harrison Hotel is “the mecca of technical perfection” according to Scientology. I can attest that it is a high crime in Scientology to alter or ignore the tech. It is also a high crime to lose or omit vital information from any PC folder, including “caretaker logs.” The Lisa McPherson “caretaker logs” are missing substantial day-to-day portions, in particular, the last three and one-half days of her Isolation. This is no accident. Records of this magnitude are not lost. Based on my experience, these missing records were intentionally destroyed to conceal material matters damaging to Scientology. Hubbard explicitly writes in CS SERIES 97 and CS SERIES 98 that “omissions from folders and complete loss of folders is a very serious matter….” If proven, expulsion from Scientology is mandatory.

36. I have been asked to address the issue of whether or not Lisa McPherson would have consented to her own isolation prior to experiencing a psychotic break. Without question, no Scientologist, except a Class 4 auditor or above, would have prior knowledge of how someone would be treated who is declared to be PTS Type III: a “Potential Trouble Source” who is experiencing a psychotic break. Only those auditors would have the knowledge that “Isolation” is implemented or the details of “Isolation” for those who are PTS Type III. In reviewing the Scientology records of Lisa McPherson, she was not an auditor and would therefore never have acquired the knowledge prior to becoming PTS Type III to consent to being held against her will in isolation.

37. In Scientology technical bulletin “Search and Discovery” under the subtitle “Handling Type III”, L. Ron Hubbard wrote, “But there will always be some failures as the insane sometimes withdraw into rigid unawareness as a
final defense, sometimes can’t be kept alive and sometimes are too hectic and distraught to ever become quiet, the extremes of too quiet and never quiet have a number of psychiatric names such as “catatonia” (withdrawn totally) and “manic” (too hectic).”

38. Following the dogma of L. Ron Hubbard to the letter is the highest priority for a person practicing Scientology. In a Scientology policy letter called “Keeping Scientology Working”, L. Ron Hubbard says “The proper
instruction attitude is, ‘You’re here so you’re a Scientologist. Now we are going to make you into an expert auditor no matter what happens. We’d rather have you dead than incapable.”

39. In terms of the report and control of RTC, it is required by any and all Scientology organizations to report directly to RTC any extreme deviations from “standard tech”. For example, it would be considered a deviation when a
Scientology Pre-Clear, (a person that has paid for auditing services from Scientology), has left Scientology and threatens to sue. Other examples would include a Pre-Clear who is not getting the expected results or one who has had a psychotic break (PTS Type III). Once the RTC Tech Unit completed a review of a Pre-Clear folder, it would be sent back via the Office of the Senior Case Supervisor International (located in Church of Scientology  International) to ensure compliance to orders and correction as deemed necessary by the RTC Tech Unit. CSI receives updated status reports and without question would have received updated status reports on the Isolation of Lisa McPherson and her deteriorating medical condition because RTC has an on site representative at FLAG. These reports would be composed and sent up line to Ray Mithoff at RTC by the Senior Case Supervisor, Alain Kartuzinski. Ray Mithoff would then take the report to RTC. The Office of Special Affairs, OSA, locally and internationally, would be informed of the Isolation as well. Marty Rathbun, Inspector General Ethics, is over all the legal affairs of every case and situation in Scientology and would also have knowledge of a PTS Type III in Isolation.

40. The above reporting procedure is still practiced in the Scientology conglomerate today. For example, in the attached “D/Inspector General Office,” published by Religious Technology Center and copyrighted in 1997, it
compels reporting directly to RTC any listed situation, such as “any person who acts PTS Type III.” This is all done in order to help RTC “locate and eradicate any suppression (i.e., a threat) and thereby make sure that Scientology keeps working.” Lisa McPherson was deemed PTS Type III and therefore was such a threat.

41. RTC receives all reports on situations involving Isolation for guidance from RTC to the Senior Case Supervisor, Sr. C/S. RTC then reports the matter to Sr. C/S INT, i.e., International, office for further investigation. Sr.
C/S INT then reports back to the RTC Reports Officer. Ray Mithoff is the Sr. C/S INT at CSI, the mother church. Ray Mithoff, Marty Rathbun and David Miscavige, as they have done on other occasions within my personal knowledge, meet and discuss various options available to Scientology on how to deal with a public relations flap. No one else has the authority to do so. Lisa McPherson was such a public relations flap to Scientology since she took her clothes off in public and was placed in Isolation.

42. In records I have reviewed provided by FLAG in this case concerning Lisa McPherson, she had previously complained that Scientology was not working for her and her stats were down. Based upon my own experience and Scientology procedures and protocol, these three individuals would have met and discussed on several occasions what to do with Lisa since she was not improving in Isolation. It is important to know that Scientology has no prohibition on members seeking emergency medical treatment as stated in HCOB Physically ILL PCs and Pre-OTs, 12-3-69, which mandates a medical cure before auditing, where Hubbard states “if we already know he is ill we should call in the doctor.” page 328 of Volume 8 of the Technical Bulletins

43. Yet, from the available records, it is apparent to me that these three individuals: Mithoff, Rathbun, and Miscavige, had no option other than to permit her to die in Isolation rather than take her to the hospital for emergency medical treatment and risk embarrassing questions from the attending physicians, press, and authorities with likely claims of imprisonment and abuse being made by Lisa McPherson upon her recovery. This is true because in
Scientology it is never an option to be held accountable. Contrary to their own policy that “THE CORRECT ACTION ON AN INSANE PATIENT IS A FULL SEARCHING CLINICAL EXAMINATION BY A COMPETENT MEDICAL DOCTOR.” Page 327, Volume 8 of the Technical Bulletins, Scientology decided in Lisa’s case, through these three individuals acting through FLAG, not to follow this particular policy and let her die. Scientology provides an option called “end cycle” which is permitting and ordering the person to die. It is obvious to me that the decision was to permit Lisa McPherson to die rather than face an extreme public relations flap by taking her to the local emergency room in her morbid condition as described in the “caretaker logs.”

44. Based on my personal experience and expertise in Scientology, I have formed the following opinion: Lisa McPherson was held against her will in Isolation and when she did not respond to Scientology technical handling, FLAG, on orders from David Miscavige, Ray Mithoff, and Marty Rathbun sat mute and watched her die after she no longer had the strength to fight for her freedom. Her death was no accident. It was the chosen option to  minimize a public relations flap.

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

______________________________
JESSE PRINCE

SWORN TO AND SUBSCRIBED before me at Tampa, Hillsborough County, Florida, this ___ day of August, 1999.

___________________________________
NOTARY PUBLIC
My commission expires:

Personally Known ____
Produced ID ____
Type of ID Produced _____________________

Notes

Second in command of Scientology tells all, Part 1 (October 2, 1998)

Second in command of Scientology tells all, Part 11

Introduction by FACTNet

This is one part of a series of articles being released by Jesse Prince . Jesse Prince was second in command of all of Scientology. He has shown great courage and has put himself at considerable personal risk to tell the world about the real everyday criminal and immoral activities of Scientology.

FACTNet has helped Jessie through our Victim Assistance Fund because we knew how much publicizing this information would help others who were and are being victimized by Scientology’s criminal activities.

FACTNet now needs your immediate help to get Jesse’s articles distributed as widely as possible. FACTNet believes — and we think you will also believe, especially after reviewing Jesse’s series of articles — that there is a real growing danger to individuals involved with Scientology, particularly to staff members.

FACTNet believes that Scientology is at a dangerous pressure point as more information comes out revealing its actual activities. The world has learned horrible lessons when cults are trapped at pressure points from tragedies such as Jonestown, Heaven’s Gate, Waco, the Swiss Solar Temple, and Aum Shin Rikyo.

Because of Scientology’s current crisis state and the new revelations about its criminal activities, FACTNet is issuing a worldwide alert to all individuals who have friends of family in Scientology, particularly if they are on staff. Do everything you can to legally get them away from this group as fast as possible.

FACTNet recommends among other things getting Jesse Prince ‘s series of articles to everyone currently in Scientology. Once they have read them, even the most hardened Scientologists will have powerful doubts about how they have been deceived.

In addition to distributing these articles to Scientology’s current members, we also ask that you distribute them to media all over the world and to your local and national governments.

Only information can solve the problem dangerous criminal cults like Scientology present. If the Jesse Prince articles are widely circulated, we will help avert another horrific cult tragedy.

End of Introduction

 

Part I

October 2, 1998
By Jesse Prince

During September 1982, through spring of 1987, I attended biweekly meetings at Author Services, Inc. (ASI), which at the time was located in the 6700 block of Sunset Blvd. in Los Angeles, CA.

From late 1982 until the spring of 1983 I held an executive position in the Religious Technology Center (RTC) titled Inspector General Cramming Officer. During the spring of 1983 I was promoted to Inspector General External and Treasurer on the board of directors of the Religious Technology Center. There were two other board members; Vicki Aznaran, Inspector General and President, and Warren Mc Shane, executive over legal matters concerning RTC, was a member. David Micavage, Norman Starkey and Lyman Spurlock were the trustees of RTC. It was during this time that I learned the true nature of Scientology management and how it ran its affairs.

The meetings I attended at ASI were always called and run by David Miscavige. It was here that I learned that David Miscavige was a managing agent of the various Scientology corporations, including but not limited to ASI, RTC and Church of Scientology International (CSI). Each senior executive of RTC, CSI and ASI met once or twice a week to give a report concerning each of the above corporations. This in fact was the inner circle of Scientology’s elite and as a result of my position I was involved in and received communications concerning Scientology’s most secret operations.

During my time as an executive and senior executive in RTC, David Miscavige was the decision maker concerning all legal suits filed by any of Scientology’s corporations. Miscavige had complete authority concerning all litigation within Scientology, and he made the final decisions as to how each case would be litigated as well as which lawyers would be used in each and every case. Miscavige had two Scientology staff, Marty Rathbun and Lyman Spurlock, who assisted in Scientology litigation matters, but Miscavige always made the final decisions. CSI majorly operated on orders from LRH, which were called advices to avoid legal problems for himself and Scientology, since he supposedly had not managed any of the corporations of Scientology since 1966, when he had officially resigned as Executive Director.

ASI served as LRH’s literary agency, but it was really a clearing house for his orders into the various Scientology corporations and organizations, which included but was not limited to RTC, CSI, CSC, Flag Land Base, CST and the Office of Special Affairs (formerly the Guardian’s Office). Miscavige was the person responsible for ensuring the execution of LRH orders in these various corporations, until LRH’s death in 1986. ASI and some of its staff members exercised complete financial authority over other church entities. Fran Harris, a staff member of ASI, was responsible for the gross income of the organization.

ASI received its operating expenses from commissions it received for collection of royalties owed to LRH based on moneys collected from LRH book outlets. Some time ago, LRH wrote a policy letter entitled “Minimum Book Stocks” which in effect placed a minimum on the amount of books each Scientology org had to have. Bridge Publications is the organization responsible for enforcing the minimum book stocks policy.

More often than not, on orders from Miscavige to get the stats up, Fran Harris would bypass Bridge Publications and go direct to org finance personnel and demand that the orgs buy books from BPI so that ASI would get its weekly commissions. Fran enforced her demands by using lower conditions, ethics hearings, comm evs and just plain intimidation to make the nonprofit scientology orgs pay money to BPI, often before the org had even had a chance to feed and clothe its staff. BPI never saw much of this money itself, as it was considered that BPI owed a debt to ASI going back to before ASI was ever incorporated. This action, which went on every week, was a known criminal act by all concerned, as not only did it violate Scientology’s own policy of corporate integrity, it also violated the laws of the land.

ASI is a for-profit corporation and paid its staff minimum wage plus a bonus based on royalties collected. Every week ASI had to get more and more money in order to keep its stats up to receive bonuses. ASI staff were in fact Sea Org members that were paid very well when you consider the average Sea Org member was paid $24.00 per week. It was considered a privilege to be on staff at ASI and the staff were encouraged not to discuss with other Sea Org members what they were paid weekly in order not to create a rift among Sea Org members.

In 1984 David Miscavige received word there was an IRS criminal investigation pending with the threat of a raid in Los Angeles. Fran Harris was flown out of the country and sent to Copenhagen, Denmark, to avoid possible interrogation by IRS officials. This was just the beginning of the “clean up” most senior executives executed within various Scientology corporations. One morning I awoke to find my senior, Vicki Aznaran, her husband Rick Aznaran, who was head of all security for Scientology, and Foster Tompkins, executive over INCOMM, removing evidence from hard disk drives that proved LRH was in fact the managing agent of Scientology as well as other sensitive information. Vicki and the others had been up most of the night purging computer files and creating back-up disks to be stored at confidential storage sights.

At this time I was ordered to verify that other corporations had purged their files of LRH “advices.” The corporations concerned were RTC, CSI and CSC. I did in fact verify that no evidence of LRH advices existed. This was accomplished by gathering up all hard copy advices and getting them mulched at a paper treatment plant located near Riverside, CA. Back-up copies of these advices were placed in secret unknown storage facilities by head of security, Rick Aznaran. The only people who knew these locations were Rick, the security chief, whose name was Jackson, DM and Norman Starkey.

From 1982 through 1986, LRH would use a dictaphone to dictate his orders to the various Scientology corporations. The tapes from the dictation would be delivered by LRH’s top aides Pat or Annie Broeker to the Scientology location at Gilman Hot Springs. At this location a special unit, headed by a staff member named Susie Bennick, would transcribe the tapes and issue hard copy dispatches to various executives and staff of ASI, RTC, CSI, CST and CSC. Often, these dispatches had certain time deadlines for compliance as mandated by LRH. I’ve seen as many as 150 orders dictated by LRH in one run. Often the staff who had orders issued to them were not allowed to sleep until they complied to the LRH order issued to them. David Miscavige oversaw the transcribing operation and enforced compliance to LRH orders by staff in all Scientology corporations.

Scientology Legal Procedures

During my tenure as an executive and senior executive in RTC, I was taught how to aggressively go about destroying an enemy or critic of Scientology. Enemies and critics of Scientology are considered to be suppressive persons or groups. In Scientology the suppressive element is basically dealt with in the same way: investigation, black operations, black propaganda and frivolous litigation. Scientology believes anyone labeled a suppressive is “fair game” and can be cheated, tricked, lied to and even physically harmed in order to “save” Scientology as mandated in policy by L Ron Hubbard. The following are specific instances I have either been a party to or observed being done to persons labeled “suppressive.”

David Mayo

David Mayo was once one of the top senior executives in Scientology. He worked directly with LRH on technical policies, he was LRH’s auditor, and even authored the “Ned for OTs” series when it was first issued. By the time I arrived in September 1982 at the secret management base located in Hemet, CA, David Mayo had fallen from grace. Upon my promotion to this secret location, the first duty I had was to security check (interrogate) Mayo endlessly. LRH had the idea that Mayo had been bought off by Scientology mission holders and was either a dupe or a plant. At this time Scientology was once again getting rid of its criminals. The executives of all management organizations had been removed and brought to Hemet to receive severe Scientology justice and ethics. Mayo was part of a group of 11 management executives being given a comm eve that went on for 3 months. Nearly all 11were eventually labeled suppressive persons and left Scientology.

Once David Mayo was off staff he decided to start his own church, the Advanced Ability Center (AAC), that was an alternative to Scientology and used many of the same techniques used by LRH. At this point David became the target for “fair game.” DM became infuriated and ordered Mayo’s new group to be destroyed using all means possible. Bob Mithoff, brother of Senior C/S Int Ray Mithoff, was placed by RTC in David Mayo’s new church as a plant to obtain financial and critical legal information to forward a planned attack on his group. Week after week Bob Mithoff provided financial information to RTC concerning Mayo’s new group. The fact of the matter is Mayo had drawn a good amount of people who were ex-Scientologists to his new church and was making $20,000 to $30,000 gross income every week. This was better than most Scientology Class 4 organizations. Mithoff stole a copy of the AAC’s mailing list and provided it to RTC. Within four months of its inception, AAC had a standard newsletter it mailed to its adherents.

With the stolen mailing list RTC operative Gary Klinger designed a similar newsletter that contained disparaging information concerning AAC to the same mailing list. This list was used by RTC to contact members of the AAC for the purpose of harassment and intimidation.

Mithoff also stole a copy of the NOTs materials that David Mayo had rewritten, and he provided it to RTC. At one point before her “suicide” Flo Barnett, David Miscavige’s mother-in-law, became a member of the AAC. More black operatives were sent into the AAC by RTC. Black operations included renting the office above Mayo’s AAC to electronically bug him. At one point private investigator Gene Ingram was hired to pose as an investigative reporter and Mayo was duped into believing he was participating in a TV program to promote his new group. Through Mithoff, it was learned that David Mayo planned to travel abroad to Europe. Through investigator Gene Igram, it was arranged to have Mayo stopped at customs as a suspected drug dealer, which did happen, and he was detained for hours based on false information by European customs officials. Gene Ingram received his instructions on these matters from Gary Klinger, an executive in RTC.

Ingram’s fee was paid by CSI through the office of John Peterson, who was retained as in-house counsel by CSC. As a note, John Peterson was not fully aware of why his office paid private investigator expenses to Bob Mithoff.

Prior to Mayo writing his own version of the NOTs materials it was learned through Mithoff that several other ex-Scientologists had copied and were planning to use Scientology HCO P/Ls and HCOBs. A former mission holder, Sarge Gerbode, had an ongoing project to copy via computer all HCOPLs and HCOBs and sell them to Mayo or trade them for Scientology OT materials. Through Mithoff we learned that Mayo and Gerbode had come to an agreement and Mayo’s new group was in fact more computerized than most Scientology facilities.

As part of the weekly ASI meetings, Vicki and I were confronted by David Miscavige concerning what we planned to do to put an end to Mayo and the AAC. The first option we suggested was to bring a copyright suit against the AAC. David Miscavige called in LRH Personal Secretary Pat Brice to get a briefing on the status of current church copyright filings. He was sorely disappointed when he found out that no one in the entirety of Scientology was responsible for copyright filings since the Guardian’s Office had been reorganized by him. He decided at that time to give Pat a project to file for copyright protection ofall Scientology bulletins and policies. This is the reason most Scientology copyright filings have a date starting in 1983 forward. The best option for the church to sue Mayo was through trade secrets and trademarks. Then-RTC lawyer Joe Yanny recommended a RICO complaint be drawn up, as evidence existed that David Mayo had formed agreements with other Scientology dissidents to exchange Scientology materials to strengthen the alternative movement which David Mayo was the leader of.

While all of this was going on Mayo and the AAC were successful in getting a Temporary Restraining Order against RTC and CSI because of the constant harassment and plants sent in. The specific incident which resulted in the TRO was in fact when Gary Klinger posed as a Jewish rabbi and went to a barbecue the AAC had one weekend and created havoc at the party. There is no difference between the black operations executed by the “Old GO” and the then new RTC. Because of the very nature of Scientology it will never change. L Ron Hubbard himself issued the marching orders for Scientology to become a criminal organization and people are trained to lie from the moment they walk in the door and take a Scientology course.

Almost immediately a person is taught how to use “ethics” to control another. Example: Hubbard Policy Letter 29 April, 1965 titled “Ethics Review” instructs a person how to effectively harass and attack another, a few quotes from the above mentioned P/L:

“Levels of Ethics Actions”

“Ethics actions in degree of severity are as follows:

  1. “Noticing something non-optimum without mentioning it but only inspecting it silently.”
  2. “Noticing something non-optimum and commenting on it to the person.”
  3. “Requesting information by ethics personnel.”
  4. “Requesting information and inferring there is a disciplinary potential in the situation.”
  5. “Talking to somebody about another derogatorily.”
  6. “Talking to the person derogatorily.”

The list get worse and worse. L Ron Hubbard was mentally ill for at least 4 years before he died that I know of through direct experience and association. When Gerry Armstrong , Omar Garrison, Vaughn Young and Stacy Young all at one time or another tried to write a biography of L Ron Hubbard based on his own records the records clearly showed he was mentally disturbed much earlier as well. As can be seen from the above-quoted HCOPL, a NAZI like dedication to the “group” is required which in fact turn people against one another in a spy-like fashion. In Scientology, people are dehumanized and in fact become members of a human ant family – you are only as good as you produce for the group. The concept of self is surrendered to the false idea that “Scientology” is much more important than individual life.

In the case of the RICO suit filed by RTC and CSI against the AAC, another type of Scientology “ethics” was applied. L Ron Hubbard believed certain words and catch phrases used together in a writing could have a psychological effect on the reader. The words and phrases are part of a confidential course called “R6 End Words” or “R6EW.” Hubbard ordered his “magic words” to be sewn into each and every legal motion and complaint submitted to any court. Hubbard said by doing this a judge would subconsciously become antagonistic to anyone trying to fight Scientology with the current justice system.

It is not necessary to be a brain surgeon to see this as pretty crazy, but because its so stupid the point can be lost. Hubbard thought he was superior to his culture and sought to make a mockery of the way everyday people live. In late 1952 Hubbard thought he had discovered something so powerful with Dianetics that he had to protect us all from his own invention. He wrote a journal called “Black Dianetics.” Here is how it starts: “Death, insanity, aberration, or merely a slavish obedience can be efficiently effected by the use of Black Dianetics. Further, adequate laws do not exist at this time to bar the use of these techniques. The law provides that only the individual so wronged can make complaint or swear out a warrant for offenders using these techniques.”

Well, now you know why there is an organization of people that have ruined lives and are a slave to the idea they are “saving the world.” Of course, the organization I am talking about is Scientology’s “Sea Org.” Sorry for digressing so about this — back to Mayo.

The RICO suit was filed against the AAC and black operations against it by RTC were at an all time high. There was a preliminary injunction hearing in the RICO case. The day before the hearing I was drilled by Earle Cooley and other church lawyers as to what I would say because I was an expert witness in this case. The fact of the matter is that I was drilled all day, all that night and up until the time I arrived in the courtroom as to what I would say as a witness. It’s funny how Sandy Rosen, Scientology’s replacement for Earle Cooley, asked me in my deposition in the FACTNet case in Denver several weeks ago if I had been coached at all by my lawyer before the deposition. He knows he works for criminals and that they are the ones who commit the crimes of which they accuse others.

RTC won its injunction against AAC, and Mayo was effectively shut down at that point.

It is shameful to have been a part of Scientology. I am grateful to be free of it physically and mentally. I promise to work just as hard exposing Scientology for what it is.

Respectfully Submitted,
Jesse Prince

Notes

Jesse Prince: No conscience, no church (September 29, 1998)

Title: No conscience, no church1
Author: jesse77@gte.net (Jesse Prince)
Date: Tue, 29 Sep 1998 19:15:12 GMT

During September, 1982, through the Spring of 1987, I attended  biweekly
meetings at Author Services, Inc. (ASI), which at the time was located in
the 6700 block of Sunset Blvd. in Los Angeles, CA.

From late 1982 until the spring of 1983 I held an executive position in the
Religious Technology Center (RTC) titled Inspector General Cramming
Officer.  During the spring of 1983 I was promoted to Inspector General
External and Treasurer on the board of directors of  the Religious
Technology Center.  There were two other board members; Vicki Aznaran,
Inspector General and President, and Warren Mc Shane, executive over legal
matters concerning RTC, was a member.  David Micavage, Norman Starkey and
Lyman Spurlock were the trustees of RTC.  It was during this time that I
learned the true nature of Scientology management and how it ran its
affairs.

The meetings I attended at ASI were always called and run by David
Miscavige. It was here  that I learned that David Miscavige was a managing
agent of the various Scientology corporations, including but not limited to
ASI, RTC and Church of Scientology International (CSI).  Each senior
executive of RTC, CSI and ASI met once or twice a week to give a report
concerning each of the above corporations.  This in fact was the inner
circle of Scientology’s elite and as a result of my position I was involved
in and received communications concerning Scientology’s most secret
operations.

During my time as an executive and senior executive in RTC, David Miscavige
was the decision maker concerning all legal suits filed by any of
Scientology’s corporations. Miscavige had complete authority concerning all
litigation within Scientology, and he made the final decisions as to how
each case would be litigated as well as which lawyers would be used in each
and every case. Miscavige had two Scientology staff, Marty Rathbun and
Lyman Spurlock, who assisted in Scientology litigation matters, but
Miscavige always made the final decisions. CSI majorly operated on orders
from LRH, which were called advices to avoid legal problems for himself and
Scientology, since he supposedly had not managed any of the corporations of
Scientology since 1966, when he had officially resigned as Executive
Director.

ASI served as LRH’s literary agency, but it was really a clearing house for
his orders into the various Scientology corporations and organizations,
which included but was not limited to RTC, CSI, CSC, Flag Land Base, CST
and the Office of Special Affairs (formerly the Guardian’s Office).
Miscavige was the person responsible for ensuring the execution of LRH
orders in these various corporations, until LRH’s death in 1986. ASI and
some of its staff  members exercised complete financial authority over
other church entities. Fran Harris, a staff member of ASI, was responsible
for the gross income of the organization.

ASI received its operating expenses from commissions it received for
collection of royalties owed to LRH based on moneys collected from LRH book
outlets. Some time ago, LRH wrote a policy letter entitled “Minimum Book
Stocks” which in effect placed a minimum on the amount of books each
Scientology org had to have. Bridge Publications is the organization
responsible for enforcing the minimum book stocks policy.

More often than not, on orders from Miscavige to get the stats up, Fran
Harris would bypass Bridge Publications and go direct to org finance
personnel and demand that the orgs buy books from BPI so that ASI would get
its weekly commissions.  Fran enforced her demands by using lower
conditions, ethics hearings, comm evs and just plain intimidation to make
the nonprofit scientology orgs pay money to BPI, often before the org had
even had a chance to feed and clothe its staff. BPI never saw much of this
money itself, as it was considered that BPI owed a debt to ASI going back
to before ASI was ever incorporated.  This action, which went on every
week, was a known criminal act by all concerned, as not only did it violate
Scientology’s own policy of corporate integrity, it also violated the laws
of the land.

ASI is a for-profit corporation and paid its staff minimum wage plus a
bonus based on royalties collected. Every week ASI had to get more and more
money in order to keep its stats up to receive bonuses. ASI staff were in
fact Sea Org members that were paid very well when you consider the average
Sea Org member was paid $24.00 per week. It was considered a privilege to
be on staff at ASI and the staff were encouraged  not to diskuss with other
Sea Org members what they were paid weekly in order not to create a rift
among Sea Org members.

In 1984 David Miscavige received word there was an IRS criminal
investigation pending with the threat of a raid in Los Angeles. Fran Harris
was flown out of the country and sent to Copenhagen, Denmark, to avoid
possible interrogation by IRS officials. This was just the beginning of the
“clean up” most senior executives executed within various Scientology
corporations. One morning I awoke to find my senior, Vicki Aznaran, her
husband Rick Aznaran, who was head of all security for Scientology, and
Foster Tompkins, executive over INCOMM, removing evidence from hard disk
drives that proved LRH was in fact the managing agent of Scientology as
well as other sensitive information. Vicki and the others had been up most
of the night purging computer files and creating back-up disks to be stored
at confidential storage sights.

At this time I was ordered to verify that other corporations had purged
their files of LRH “advices.” The corporations concerned were RTC, CSI and
CSC. I did in fact verify that no evidence of LRH advices existed. This was
accomplished by gathering up all hard copy advices and getting them mulched
at a paper treatment plant located near Riverside, CA. Back-up copies of
these advices were placed in secret unknown storage facilities by head of
security, Rick Aznaran. The only people who knew these locations were Rick,
the security chief, whose name was Jackson, DM and Norman Starkey.

From 1982 through 1986, LRH would use a dictaphone to dictate his orders to
the various Scientology corporations. The tapes from the dictation would be
delivered by LRH’s top aides Pat or Annie Broeker to the Scientology
location at Gilman Hot Springs. At this location a special unit, headed by
a staff member named Susie Bennick, would transcribe the tapes and issue
hard copy dispatches to various executives and staff of ASI, RTC, CSI, CST
and CSC.  Often, these dispatches had certain time deadlines for compliance
as mandated by LRH. I’ve seen as many as 150 orders dictated by LRH in one
run. Often the staff who had orders issued to them were not allowed to
sleep until they complied to the LRH order issued to them. David Miscavige
oversaw the transcribing operation and enforced compliance to LRH orders by
staff in all Scientology corporations.

Scientology Legal Procedures

During my tenure as an executive and senior executive in RTC, I was taught
how to aggressively  go about destroying an enemy or critic of Scientology.
Enemies and critics of Scientology are considered to be suppressive persons
or groups. In Scientology the suppressive element is basically dealt with
in the same way: investigation, black operations, black propaganda and
frivolous litigation. Scientology believes anyone labeled a suppressive is
“fair game” and  can be cheated, tricked, lied to and even physically
harmed in order to “save” Scientology as mandated in policy by L Ron
Hubbard. The following are specific instances I have either been a party to
or observed being done to persons labeled “suppressive.”

David Mayo

David Mayo was once one of the top senior executives in Scientology. He
worked directly with LRH on technical policies, he was LRH’s auditor, and
even authored the “Ned for OTs” series when it was first issued. By the
time I arrived in September 1982 at the secret management base located in
Hemet, CA, David Mayo had fallen from grace. Upon my promotion to this
secret location, the first duty I had was to security check (interrogate)
Mayo endlessly.  LRH had the idea that Mayo had been bought off  by
Scientology mission holders and was either a dupe or a plant. At this time
Scientology was once again getting rid of its criminals. The executives of
all management organizations had been removed and brought to Hemet to
receive severe Scientology justice and ethics. Mayo was part of a group of
11 management executives being given a comm eve that went on for 3 months.
Nearly all 11were eventually labeled suppressive persons and left
Scientology.

Once David Mayo was off staff he decided to start his own church, the
Advanced Ability Center (AAC), that was an alternative to Scientology and
used many of the same techniques used by LRH. At this point David became
the target for “fair game.” DM became infuriated and ordered  Mayo’s new
group to be destroyed using all means possible. Bob Mithoff, brother of
Senior C/S Int Ray Mithoff, was placed by RTC in David Mayo’s new church as
a plant to obtain financial and critical legal information to forward a
planned attack on his group. Week after week Bob Mithoff provided financial
information to RTC concerning Mayo’s new group. The fact of the matter is
Mayo had drawn a good amount of people who were ex-Scientologists to his
new church and was making $20,000 to $30,000 gross income every week. This
was better than most Scientology Class 4 organizations. Mithoff stole a
copy of the AAC’s mailing list and provided it to RTC. Within four months
of its inception, AAC had a standard newsletter it mailed to its adherents.
With the stolen mailing list RTC operative Gary Klinger designed a similar
newsletter that contained disparaging information concerning AAC to the
same mailing list. This list was used by RTC to contact members of the AAC
for the purpose of harassment and intimidation.

Mithoff also stole a copy of the NOTs materials that David Mayo had
rewritten, and he provided it to RTC. At one point before her “suicide” Flo
Barnett,  David Miscavige’s mother-in-law, became a member of the AAC. More
black operatives were sent into the AAC by RTC. Black operations included
renting the office above Mayo’s AAC to electronically bug him. At one point
private investigator Gene Ingram was hired to pose as an investigative
reporter and Mayo was duped into believing he was participating in a TV
program to promote his new group. Through Mithoff, it was learned that
David Mayo planned to travel abroad to Europe. Through investigator Gene
Igram, it was arranged to have Mayo stopped at customs as a suspected drug
dealer, which did happen, and he was detained for hours based on false
information by European customs officials. Gene Ingram received his
instructions on these matters from Gary Klinger, an executive in RTC.
Ingram’s fee was paid by CSI through the office of John Peterson, who was
retained as in-house counsel by CSC. As a note, John Peterson was not fully
aware of why his office paid private investigator expenses to Bob Mithoff.

Prior to Mayo writing his own version of the NOTs materials it was learned
through Mithoff that several other ex-Scientologists had copied and were
planning to use Scientology HCO P/Ls and HCOBs. A former mission holder,
Sarge Gerbode, had an ongoing project  to copy via computer all HCOPLs and
HCOBs and sell  them to Mayo or trade them for  Scientology OT materials.
Through Mithoff we learned that Mayo and Gerbode had come to an agreement
and Mayo’s new group was in fact more computerized than most Scientology
facilities.

As part of the weekly ASI meetings, Vicki and I were confronted by David
Miscavige concerning what we planned to do to put an end to Mayo and the
AAC. The first option we suggested was to bring a copyright suit against
the AAC. David Miscavige called in LRH Personal Secretary Pat Brice to get
a briefing on the status of current church copyright filings. He was sorely
disappointed when he found out that no one in the entirety of Scientology
was responsible for copyright filings since the Guardian’s Office had been
reorganized by him. He decided at that time to give Pat a project to file
for copyright protection ofall Scientology bulletins and policies. This is
the reason most Scientology copyright filings have a date starting in 1983
forward. The best option for the church to sue Mayo was through trade
secrets and trademarks. Then-RTC lawyer Joe Yanny recommended a RICO
complaint be drawn up, as evidence existed that David Mayo had formed
agreements with other  Scientology dissidents to exchange Scientology
materials to strengthen the alternative movement which David Mayo was the
leader of.

While all of this was going on Mayo and the AAC were successful in getting
a Temporary Restraining Order against RTC and CSI because of the constant
harassment and plants sent in. The specific incident which resulted in the
TRO was in fact when Gary Klinger posed as a Jewish rabbi and went to a
barbecue the AAC had one weekend and created havoc at the party. There is
no difference between the black operations executed by the “Old GO” and the
then new RTC.  Because of  the very nature of Scientology it will never
change.  L Ron Hubbard himself issued the marching orders for Scientology
to become a criminal organization and people are trained to lie from the
moment they walk in the door and take a Scientology course.

Almost immediately a person is taught how to use “ethics” to control
another. Example: Hubbard Policy Letter  29 April, 1965 titled  “Ethics
Review” instructs a person how to effectively harass and attack another, a
few quotes from the above mentioned P/L:

“Levels of Ethics Actions”

“Ethics actions in degree of severity are as follows:

“1. Noticing something non-optimum without mentioning it but only
inspecting it silently.

“2. Noticing something non-optimum and commenting on it to the person.

“3. Requesting information by ethics personnel.

“4. Requesting information and inferring there is a diskiplinary potential
in the situation.

“5. Talking to somebody about another derogatorily.

“6. Talking to the person derogatorily.”

The list get worse and worse. L Ron Hubbard was mentally ill for at least 4
years before he died that I know of through direct experience and
association. When Gerry Armstrong, Omar Garrison, Vaughn Young and Stacy
Young  all at one time or another tried to write a  biography of  L Ron
Hubbard based on his own records the records clearly showed he was mentally
disturbed much earlier as well.  As can be seen from the above-quoted
HCOPL, a NAZI like dedication to the “group” is required which in fact turn
people against one another in a spy-like fashion.  In Scientology, people
are dehumanized and in fact become members of a human ant family — you are
only as good as you produce for the group. The concept of self is
surrendered to the false idea  that “Scientology” is much more important
than individual life.

In the case of the RICO suit filed by RTC and CSI against the AAC, another
type of Scientology “ethics” was applied. L Ron Hubbard believed certain
words and catch phrases used together in a writing could have a
psychological  effect on the reader. The words and phrases are part of  a
confidential course called “R6 End Words” or “R6EW.” Hubbard ordered  his
“magic words” to be sewn into each and every legal motion and complaint
submitted to any court. Hubbard said by doing this a judge would
subconsciously become antagonistic to anyone trying to fight Scientology
with the current justice system.

It is not necessary to be a brain surgeon to see this as pretty crazy, but
because its so stupid the point can be lost. Hubbard thought he was
superior to his culture and sought to make a mockery of the way everyday
people live. In late 1952 Hubbard thought he had discovered something so
powerful with Dianetics that he had to protect us all from his own
invention. He wrote a journal called “Black Dianetics.” Here is how it
starts: “Death,  insanity, aberration, or merely a slavish obedience can be
efficiently effected by the use of Black Dianetics. Further, adequate laws
do not exist at this time to bar the use of these techniques. The law
provides that only the individual so wronged can make complaint or swear
out a warrant for offenders using these techniques.”

Well,  now you know why there is an organization of people that have ruined
lives and are a slave to the idea they are “saving the world.” Of course,
the organization I am talking about is Scientology’s  “Sea Org.” Sorry for
digressing so about this — back to Mayo.

The RICO suit was filed against the AAC and black operations against it by
RTC were at an all time high. There was a preliminary  injunction hearing
in the RICO case. The day before the hearing I was drilled by Earle Cooley
and other church lawyers as to what I would say because I was an expert
witness in this case. The fact of the matter is that I was drilled all day,
all that night and up until the time I arrived in the court room as to what
I would say as a witness. It’s funny  how Sandy Rosen, Scientology’s
replacement for Earle Cooley, asked me in my deposition in the FACTNet case
in Denver several weeks ago if I had been coached at all by my lawyer
before the deposition. He knows he works for criminals and that they are
the ones who commit the
crimes of which they accuse others.

RTC won its injunction against AAC, and Mayo was effectively shut down at
that point.

It is shameful to have been a part of  Scientology. I am grateful to be
free of it physically and mentally. I promise to work just as hard exposing
Scientology for what it is.

Respectfully Submitted,

Jesse Prince

Notes

Affidavit of Jesse Prince (July 27, 1998. Modified August 14, 1998)

AFFIDAVIT OF Jesse Prince

I, Jesse Prince declare as follows:

1. I am over 18 years of age and currently reside in the state of Minnesota, County of Hennepin. This declaration is of my own personal knowledge and if called upon to testify to the facts herein I could and would be competently able to testify thereto.

2. I am intimately familiar with the Scientology organization, movement and beliefs because I was in Scientology for 16 years (1976-92) and served in the highest ranks, including as the second in command of the Religious Technology Center (RTC). At that time, my position was “Deputy Inspector General, External” which meant being in charge of all activities outside the body of Scientology. This included being in charge of all litigation by or against any Scientology organization, intelligence (spying, covert operations) brought against perceived or imagined “enemies” (which ranged from critics to media to the courts), trademark registrations, and the licensing of trademarks to other Scientology organizations, which was how we tightly controlled all Scientology corporations while creating the false impression of “corporate integrity.”

3. It is incumbent on this and every court, as well as the authorities, to realize the amount of deception, chicanery, lying, manipulation and outright criminality that Scientology will employ to hide the truth about their criminal activities. They will spend any amount of money to do this. I know because I was part of it for years. I received orders to break the law. I issued orders to break the law. I got others to break the law, and then I helped to hide these criminal activities just as they are hiding them now.

4. In fact, this tactic is one of the most coercive used by the Scientology hierarchy: to involve members in criminal acts for which they are then liable, which then prevents the person from speaking out. Even if the member manages to leave or flee, they will be reluctant to speak to the courts or the authorities because they were part of criminal activities. Plus the organization is ready to use Mafia-like tactics to threaten an ex-member if the hierarchy is afraid of their testimony. If the ex-member does speak, the organization will claim no knowledge and blames the individual, calling them a criminal when that person was doing nothing more than following orders under duress.

5. Members of Scientology are induced to confess to acts that, if not outright criminal, are embarrassing or possibly destructive to the person’s job, marriage or profession, for example, shoplifting, adultery, masturbation, or drug abuse. The member is urged to write these down in their own handwriting, under the guise that it is a “religious confessional” for the member’s good. The truth is that these “confessions” are kept to blackmail and extort the member should they dare to speak out. The member is also coerced to sign documents that are self-damaging while protecting the organization, solely in case the member dares to leave their control and speak the truth. I know because I watched this done to others, I did it to others and it was done to me. That is why I respectfully urge this court to recognize Scientology’s tactics and treat them for what they are: criminal deceit to defraud this court at any cost.

6. For the past five years since I fled Scientology, I have been silent because it was my intent to create a new life for myself, away from their obsessive control, and it required all the energy that I could muster to do that. About two weeks ago, I finally became curious as to what was happening within the Scientology world and I used the Internet to look up Scientology and was stunned to discover former friends who had also left and the conflicts being waged in the courts. I contacted one (Stacy Young) who had been a close friend for many years in the cult who told me what had been happening, with former members fighting to have the abuses and the criminality exposed.

7. Because I have intimate and personal knowledge of issues in this case, she put me in touch with attorney Dan Leipold and I traveled to his offices in Santa Ana, California. After speaking with him and others, I realized that this level of criminal fraud and deceit can no longer continue without opposition. I could no longer remain silent, regardless of their terrorism. I offered to tell the court how Scientology really operates with trademarks, copyrights and the courts. In fact, I am doing this at the risk of enduring the hate campaign this pseudo-religion will wage against me, as they have against others, including judges.

8. Let me begin with some basic information about my own Scientology history:

I first became involved with Scientology in September 1976, in San Francisco. In late 1976 I joined the elite Scientology paramilitary organization known as the Sea Organization, also known as the “Sea Org” or the acronym “SO.” The Sea Organization is the actual nexus that controls the Scientology empire. Sea Organization personnel are authorized to take over and control Scientology organizations and to demote personnel, move bank accounts and run the corporation as if the SO personnel were employees or representatives of that corporation but they are not. This is true if the organization was part of the “Church of Scientology” or one of the secular areas such as Bridge Publications. This is possible because the only personnel allowed into executive positions in these organization are those who are in full agreement that the Sea Organization is the commanding organization. This weeding out process guarantees there will be no executives who will resist or protect their corporate integrity. This is how the Sea Organization can operate with impunity, and continue to claim that it is merely a “fraternal organization.” The Sea Organization is a “fraternal organization” the way the Cosa Nostra is.

9. Before I was recruited into the Religious Technology Center (RTC) in 1982, most of my experience was with Scientology technical material; the actual codified techniques used within the organization. This gave me considerable time to become familiar with the material, most of which was written by Scientology founder L. Ron Hubbard. It was that familiarity that prompted my promotion to a technical position at RTC.

10. Physically, I was transferred to and lived and worked at what is known as “Golden Era Studios,” near Hemet, California. It is also known as “Gold” or simply “the base.” RTC’s presence at Gold was fully known to all at the base, but was kept hidden from all others, to try to make it appear that Gold was merely a movie/tape production studio when really the movie/tape production is nothing but a front to mask, hide and protect the top of Scientology’s actual power structure so they cannot be served with subpoenas. (The security system is more befitting a top secret military installation, with its motion detectors, buried sensors, high-speed cameras, night cameras, guards on motorcycles, and barbed wire fences wired to detect anyone touching it etc.)

RTC was at that time the most senior, most powerful and most influential organization in all of Scientology. All at RTC were Sea Org members, as are all at the base. But because of RTC’s position, we were the elite at the base.

11. In March 1983, I became the Deputy Inspector General, External, and a member of the Board of Directors for RTC, as Treasurer. (The only other board members were Warren McShane as Secretary and Vicki Aznaran as President, during this time.) At the time I was appointed a member of the Board of Directors of RTC I was forced to sign an undated letter of resignation. This is standard practice with all Scientology board members and is another means by which the Scientology corporations are controlled while giving the appearance of corporate integrity.

12. In that capacity for the next few years, I traveled about the US and outside of the US on behalf of RTC. I traveled to Germany, Italy, Australia, the United Kingdom, Denmark, Mexico and Canada, with several trips to some of these countries. These trips were to put together an infrastructure that would then interface with RTC for the purpose of trademarks. I became familiar with the law with regard to each area, interviewed and approved law firms, and put the personnel in place that would report to RTC and be our on-the-ground representatives in dealing with the attorneys etc.

13. When Hubbard died in 1986, there was a power struggle in Scientology for the next 18 or so months that resulted in Hubbard’s closest and most powerful aide (Pat Broeker) being removed. The power was taken over by David Miscavige who purged the organization of anyone who was friendly with Broeker. In mid-1987, I was removed from my position and put under armed guard at Happy Valley, a property the organization owns that is a few miles west of Gold and located deep in the Soboba Indian Reservation. I assume the undated resignation I provided on being appointed to the Board was then dated and used to make it appear that I had resigned, when I had not. After a few months, it was decided that I would not escape and I was given various jobs at Gold but kept under watch. My pay was standard Sea Org pay, $24 per week.

14. I should clarify why I (and others) tolerated such treatment for so long. The ability to tolerate such abusive conditions and treatment are one of the most basic requirements for promotion in the Sea Organization and RTC. We were selected and promoted because we vowed such loyalty and demonstrated it daily. Not unlike a military unit, it is the ability of the Sea Org member to take orders, carry out the assignment and to tolerate self-degrading conditions that ingratiates them to their seniors and to the system. That was why I was promoted so highly and why I then tolerated more. Looking back on it, I cannot believe that I actually tolerated such denigration and such abuse and actually deluded myself that it was for my good as well as the good of others.

15. In late 1991, my wife Monika became pregnant and although we were elated, she was ordered to abort the child. The reason for the abortion order is that Sea Org members were not allowed to have children. The order devastated both my wife and me. Our dedication as Sea Org members clashed violently with our intentions as parents and we went through a personal nightmare with me opposing it, to no avail. She got the abortion and afterwards she was not the same. She was devastated at the impact of what she did and that was when she told me she wanted to leave. We fled, with the organization close behind us, trying to find us. They finally did and convinced us to return so we could “leave properly.”

16. Once they had us again behind the barbwire and watched by security, my wife was threatened that if we did not sign certain papers, she would no longer be able to see her father and her sister, who were both in the Sea Organization.

17. This is another coercive power that the organization wields. Like a police state, it can order and enforce family members to alter their relations, and even get them to turn against each other. Monika and I knew that if the organization said she would be kept from her father and sister (by control over them), that she would not again be able to talk to them or see them, let alone visit. This is called “disconnection” in Scientology. We agreed to sign the papers and were able to leave.

18. On July 26, 1998, one of the cult’s attorneys sent a long fax to Dan Leipold that is their first not-so-veiled threat to me, warning me to be silent. The attorney included the document they prepared for me and that I signed under the conditions I just described. I am attaching his letter and the documents I was forced to sign under duress as my first evidence of what this criminal cult does to silence anyone speaking out. (Exhibit 1). It does not surprise me, as it is a standard tactic, to force a person to create or sign a self-damaging document to use when ready.

19. I have also been privy to the destruction and alteration of documents to protect the group. On or about April of 1983 I was present at a meeting, which took place in Los Angeles, California at a Scientology office called Author Services, Inc. (ASI). ASI presented itself as the “literary agency” for Hubbard but it was actually the top of the Scientology empire at that time. All of Scientology was being directed from ASI in 1982. ASI was where various Scientology corporations went to receive orders.

20. Present at the meeting was David Miscavige, then the chairman of the board of ASI, Vicki Aznaran then the Deputy Inspector General of Religious Technology Center, (RTC) and Lymon Spurlock, who was “Director of Client Affairs” for ASI. Mr. Miscavige expressed concern at this meeting that there might possibly be a raid on Scientology by the IRS. At that time, none of the churches of Scientology had received tax exempt status.

21. One principle reason why tax exempt status had not been granted was the IRS’s position that Scientology founder L. Ron Hubbard (LRH) was actually the managing agent of Scientology in complete disregard of the corporate structure of Scientology. We knew this to be a fact but also knew that it violated IRS rules and thus had to be hidden.

22. There was concern that the IRS would obtain the hundreds of daily, weekly and monthly LRH orders written by Mr. Hubbard and distributed throughout Scientology. These orders were commonly referred to in Scientology as “advices” to avoid the appearance that LRH was actually running Scientology. In fact, LRH was running Scientology. The principle concern expressed at this meeting was that the LRH orders or “advices” would be used to name L. Ron Hubbard as the managing agent of Scientology.

23. Because of an already existing fear that an LRH “advice” might fall into the wrong hands, these orders from him were written in a way that we could deny it was from him. His name was not on them. He was never cited in the dispatch except in the third person. There was no signature and a salutation in reply was never more than “Dear Sir.” The routing at the top referred to him merely as “*,” an asterisk. However if a person (or an agency) got enough of these, there would be little doubt that we were in touch with Hubbard (via ASI) and he was telling us and each corporation what to do to make him more money.

24. David Miscavige specifically stated that ASI was “already dealing with the problem”, ridding ASI of any documents that would implicate L. Ron Hubbard as managing agent of Scientology. He stated that under his directive the LRH orders, or “advices”, were being collected and transferred by truck to a Riverside County recycling plant where the documents were to be “pulped”. This method of destruction was considered to be better than shredding. I was also given instructions that I was in charge of purging the remainder of the Scientology organization of LRH orders. This was to include Church of Scientology of California (CSC); Church of Scientology International (CSI); and RTC.

25. Several weeks after this first meeting I attended a second meeting at the ASI offices concerning the continuing destruction of Scientology corporate documentation. In attendance at the second meeting were David Miscavige, Lymon Spurlock, Vicki Aznaran, Norman Starkey and Marty Rathburn. At this meeting, David Miscavige for the first time stated that Scientology had been ordered by a court to produce various documents concerning a former Scientology member named Lawrence Wollersheim who had a lawsuit pending in Los Angeles against the Church of Scientology of California. The court had ordered Scientology to produce Mr. Wollersheim’s entire “preclear” (PC) file.

26. A “PC ” file is one of several files kept on members. The PC file is the file that includes all written records of all “confessionals” done by the member. This means that it includes not only the most self-damaging material but it also reflects every problem the person might have had with the organization, including complaints. This PC file grows with the person’s tenure in Scientology.

27. Mr. Wollersheim’s PC file was several thousand pages in length and stood as high as a six-foot tall man. Initially at this meeting it was decided that Mr. Wollersheim’s PC file would be redacted and culled of any evidence or documentation which might assist Mr. Wollersheim in his lawsuit against CSC. There was also concern that the materials known as Clear, OT I, OT II, OT III and NED for OT’s (NOTS) would be open to public inspection if Mr. Wollersheim’s files were produced as ordered. Scientologists are taught that a person could catch pneumonia and die if that person is prematurely exposed to these “upper level” materials without first having taken many hours of preparatory auditing. Ultimately, approximately 50 pages were produced pursuant to the court order. Mr. Wollersheim’s PC file was culled based on a direct order from David Miscavige.

28. Later, I was informed that a second court order was issued to produce Mr. Wollersheim’s entire file. Faced with the prospect of having to produce the entire file David Miscavige gave orders that the entire file simply be destroyed by being pulped.

29. Pursuant to Mr. Miscavige’s orders I ordered Rick Aznaran to take Mr. Wollersheim’s PC files to the recycling plant in Riverside to be pulped. Several hours after I gave the order to have Mr. Wollersheim’s PC files destroyed, Mr. Aznaran returned and confirmed that the records had been pulped and even showed me a small bottle of pulped material, saying “Here’s what’s left.”

30. The material that David Miscavige ordered destroyed and which Rick Aznaran had pulped was the same material that the court had ordered produced in Mr. Wollersheim’s Los Angeles court case against CSC.

31. In early 1983 I attended a meeting at Scientology’s ASI office in Los Angeles. In attendance at this meeting were David Miscavige, Lymon Spurlock, Vicki Aznaran, Patricia Brice and Edith Buchele. The meeting concerned Scientology copyrights. In particular, David Miscavige stated that Scientology was “in trouble” concerning the copyright status of the many published materials of founder L Ron Hubbard. Concern was expressed that many of Mr. Hubbard’s published materials had become ‘public domain” because the materials had not been registered with the United States Copyright office for many years. David Miscavige stated that Scientology had failed to register copyrights for thousands of pages of Scientology material written by Mr. Hubbard. These records included the numerous policy letters and bulletins published by Mr. Hubbard. In particular, Mr. Hubbard published “Policy Letters” (always published in green ink on white paper and intended as administrative directives) LRH ED’s (Executive Directives) which are used for various topics, (always issued as blue ink on white paper) and “Technical Bulletins” published with red ink on white paper covering technical aspect of Scientology such as Auditing techniques, Policy and Ethics.

32. At the same meeting in early 1983 David Miscavige specifically ordered Patricia Brice (who at the time was L. Ron Hubbard’s personal secretary and an employee of ASI) to begin the process of mass copyright registration filings for all of L. Ron Hubbard’s materials. This order was given despite the fact that Mr. Miscavige was already aware that many of the materials in question were already in the public domain. Thus, I know from personal knowledge that in mid 1983 Scientology began a massive program to register Mr. Hubbard’s material with the United State’s Copyright office.

33. Based on my many years of reading and studying Scientology directives including my time as a “Co-Audit Supervisor” and “Inspector General Cramming Officer” I became intimately familiar with the content, form, manner of distribution and publication of Scientology works and directives including the works of L. Ron Hubbard. As a Cramming Officer it was my job to insure that those who employ Scientology “tech” properly adhere to the official guidelines adopted by Scientology.

34. I was requested by counsel for Mr. Wollersheim to review the exhibits to BPI’s renewed motion for summary judgement. These were contained in more than 20 banker’s boxes.

In reviewing these boxes of exhibits I selected out documents at random to inspect. The chart below explains the result of my examination of certain of the exhibits. In examining the plaintiff’s exhibits I compared the alleged LRH originals submitted by the plaintiff’s as exhibits to some early editions of Scientology compilations which contains the policy issues in question. I employed a “1st edition” of the Organization Executive Course, and a “First printing of the Scientology Technical Bulletins for comparison to what BPI has claimed are the LRH originals.

35. I have attached hereto copies of various LRH materials that were published by Scientology in the early 1970’s that prove conclusively that the copy right notices on BPI’s purported “LRH originals” were not present then, but placed on the “originals” at a later date.

Exhibit Date Issued Copyright Registration Title  
B-1287 1954 27 January 1975 The Church of Scientology Creed FACTNet copy bears no resemblance to original
B-1289 1953,ca.endMay 2 May 1956 (renewal 7 February 1983) LRH PAB No. 2 A Summary of SOP 8A Copyright notice 1953 Copyright res. for compilation published Dec. 1955
B-1292 1953 ca.end July 2 May 1956 (renewal 7 February 1983) LRH PAB No. 6 No title Copyright notice 1953 Copyright res. for compilation published Dec. 1955
B-1293 1953 ca. mid. August 2 May 1956 (renewal 7 February 1983) LRH PAB No. 7 Six Steps to Better Beingness Copyright notice 1953 Copyright res. for compilation published Dec. 1955
B-1290 1953 ca. mid June 2 May 1956 (renewal 7 February 1983) LRH PAB No. 3 Certainty Processing Copyright notice 1953 Copyright res. for compilation published Dec. 1955
Exhibit Date Issued Copyright Registration Title  
B-4 2 June 1959 22 December 1987 (renewal 22 December 1987) HCO PL Purchasing Liability of Staff Members Copyright notice 1959 but original contains reference to CSI which did not exist until 1981
B-2 2 May 1957 24 December 1985 (renewal 24 December 1985) HCO PL Dissemination Original offered by BPI is substantially different from that published as an original in OEC Vol. II 1st Ed. 1970 ; Copyright notice 1957, registration 1985
B-1291 Ca. mid-July 1953 2 May 1956 (renewal 7 February 1983) LRH PAB No. 5 About PABs B-1291 BIP original contains no copyright notice. However FACTNet copy and copy of document published in 1st printing of Technical Bulletins Vol. I contain 1953 copyright notice. Copyright registration is 1955 as part of compilation
B-1288 20 July 1956 22 September 1983 (renewal 26 December 1984) Article From LRH to HGC Staff “How to really split a valance.” No Copyright notice in claimed original
B-371 16 December 1958 12 May 1983 (renewal 22 January 1986) HCOB Extension Course Curriculum BPI original contains notice 1958, however copy of document published by Scientology in 1976 in Technical Bulletins Vol. III 1st printing contains no copyright notice
Exhibit Date Issued Copyright Registration Title  
B-59 21 March 1965 28 January 1988 (renewal 9 September 1993) HCO PL Staff Members Auditing Outside PCs BPI original contains copyright notice 1958, however, copy of document published in 1970 OEC Vol. I 1st Ed. contains no copyright notice.
B-249 28 April 1973 28 April 1988 HCO PL Good Service BPI original shows on face it was 1st published Dec. 23, 1968, not claimed date of April 28, 1973
B-157 2 September 1968 28 January 1988 HCOPL Chaplain BPI original shows on face 1st appeared as Sea Organization Flag Order
B-94 24 August 1965 28 January 1988 (renewal 3 November 1993) HCO PL Cleanliness of Quarters and Staff Improve Our Image BPI “original” contains 1965 copyright notice. However, “original” references CSI which did not exist until 1981
B-248 27 December 1972 28 January 1988 HCO PL Speed of Service BPI original shows on face published 1968, not claimed date of 1972
Exhibit Date Issued Copyright Registration Title  
B-214 4 January 1971 2 May 1991 HCO PL Competence BPI original contains no copyright notice
C-3 5 February 1958 27 January 1995 HCO PL No New Charters BPI original contains no copyright notice
B-215 25 January 1971 28 January 1988 HCO PL Squirrel Admin Claimed original contains 1971 copyright notice. However, also contains reference to CSI which did not exist until 1981
B-1 25 January 1957 24 December 1985 (24 December 1985) HCO PL Concerning the Separateness of Dianetics and Scientology BPI original shows on face not original but Issue II
B-369 25 November 1958 12 May 1983 (renewal 22 January 1986) HCOB Step 6 BPI “original” contains a 1958 copyright notice. However, 1st printing of Technical Bulletins in 1976 Vol. III contains no copyright notice for this document
Exhibit Date Issued Copyright Registration Title  

36. The above chart documents my observations in reviewing the documents that I selected at random to review. The important points that I believe the Court should note with reference to these documents are as follows:

1. Exhibits B-1289; 1290; 1291; 1292 and 1293 contain a 1953 copyright notice. However, the copyright registrations submitted by BPI are for a compilation published in 1955.

2. Exhibits B4; B-94 and B-215 all contain copyright notices from the 50’s, 60’s and 70’s that contain notations to CSI. CSI is the Church of Scientology International, which did not come into existence until 1981. Therefore, either BPI’s “originals” are not originals as claimed, or the copyright notices were placed on these documents long after they were published. (Exhibits 2, 3 and 4 attached hereto).

3. Exhibits B-59; B-369; and B-371 contain copyright notices from 1958. However, when these originals are compared to first printings or first editions of compilations put out by Scientology in the 1970’s, these copyright notices are not present, indicating that they were placed in the “originals” subsequent to the compilations being published. (Exhibits 5-7).

4. Exhibit B-2 is substantially different from that published as an original in OEC Vol. II, 1st Ed. 1970. (Exhibit 8 attached hereto).

5. Exhibit B-1287. The FACTNet copy bears virtually no resemblance to the BPI original.

6. Exhibits B-1288; B-214; and C-3. The BPI originals contain no copyright notice.

7. Exhibit B-1 shows on its face it is not an original but “Issue II.”

8. Exhibits B-248; B-249; and B-157 show on their face they were published elsewhere prior to the claimed original publication.

37. Based on my knowledge gained as a staff member of Scientology, including my assignment as “Chief Cramming Officer” and based on my examination of the exhibits submitted by BPI in support of their renewed motion for summary judgment, it appears that numerous “originals” submitted by BPI are not originals at all and that copyright notices were placed on documents long after publication back-dating them to the date of publication.

Further declarant sayeth naught.

I declare, under penalty of perjury under the laws of the United States of America and the State of California that the foregoing is true and correct. Executed this 27th day of July, 1998, at Santa Ana, California.

JESSE PRINCE

Notes

Declaration of Michael Rinder (October 27, 1994)

[CT 7417]

I, MICHAEL RINDER, declare as follows:1

1. I am over 18 years of age and a resident of the State of California. I am a director of the Church of Scientology International (‘CSI” or “the Church”), the mother church of the Scientology religion. By virtue of my position, I am familiar with the Church’s legal affairs, and I have personal knowledge of the matters set forth in this declaration. If I were called upon to do so, I could and would competently testify thereto.

2. In July 1994, another Church staff member, Michael and I spent several days in Seattle, Washington, meeting with apostate Scientologists Stacy and Robert Vaughn Young. The Youngs left the Church in 1989, and approximately four years later, in 1993, they appeared as witnesses for hire in litigation against Churches of Scientology, Scientologists or businesses owned by Scientologists. Among the attorneys who hired and paid the Youngs for their testimony was Graham E. Berry of the Lewis, D’Amato firm, who used their purchased testimony many times in Church of Scientology International v. Fishman and Geertz, No. 91-6426-HLH (TX) (C.D.Cal.).

3. The Youngs’ activities had resulted in the Church spending considerable time and energy to correct the falsehoods they had injected into these lawsuits. So we travelled to Seattle to meet with the Youngs in the hope that direct communication with them might lead them to correct their false statements and cease their campaign against the Church. We explained this purpose for our visit when we met with the Youngs first on July 9, 1994. We told them that recently several other

1

[CT 7418]

litigation opponents of the Church had stated that they had wished we had been in direct communication earlier and it may have prevented years of litigation and disputes. We told the Youngs that we sought to avoid that same situation from occurring with them.

4. We were direct and forthright with explaining why we wanted to meet with them. At the beginning of our discussion, both of the Youngs stated that they did not enjoy manipulating the facts to attack and embarrass their former religion, but that economic hardship had compelled them to embark upon that course. At the end, however, it was clear that “economic hardship” was simply a euphemism for amoral greed. Their professed guilt about the dishonest quality of their sworn statements could not overpower their craving for money. Thus, we resolved nothing in those talks.

5. Stacy told us that she believed that it would be in everyone’s best interest for the conflict between the Youngs and the Church to end. It was apparent that the reason they were talking to us was because they found it emotionally distressing to be involved in an occupation that required them to figure out how to manipulate and distort facts for use in litigation. Stacy said she could not stand living a lie and wanted out, and that Vaughn also “hated” being involved in the litigation. We explained that we simply wanted to resolve matters, get the record set straight, and the Church and the Youngs could get on with their respective lives. They agreed that this was a desirable objective.

6. Stacy recounted the story of what had happened to them

2

[CT 7419]

and how they had come to get involved with writing declarations in the first place. She said that neither she nor Vaughn were good with money and that after leaving the Church in 1989, they had run up tens of thousands of dollars in debts. She said that they first tried to live off various family members while Vaughn attempted to establish himself as a writer. The family eventually balked at that, and the Youngs were on their own. She said they used up their savings and over-extended their credit cards in an unsuccessful attempt to create a computerized, desk-top publishing business. Stacy said that she and Vaughn both wanted to work as writers and eventually took a series of jobs in several small newspapers in the San Diego and Newport Beach areas. These jobs did not pay well, and they were heavily in debt when the last paper for which they worked went bankrupt. Their financial situation worsened as Vaughn was unemployed and refused to take on any employment other than as a writer. Stacy earned the only income, working for an insurance sales firm which she said she hated.

7. Stacy told us that their financial situation deteriorated to the point that she had threatened Vaughn with divorce if he did not get a job. Vaughn then got a job driving a taxi cab. He was unable to continue this however, when, after running out of gas, he attempted to push his vehicle, lost control of it, and injured his leg. Additionally, Stacy said she had suffered a tubal pregnancy, necessitating an operation. Between the medical bills and the lack of a steady income source, Stacy explained that they ended up more than $50,000 in debt, It was in those circumstances that the Youngs turned to trafficking in

3

[CT 7420]

anti-Scientology allegations as a means of making money.

8. Stacy said that in early 1993, at the depth of their financial crisis, a British anti-Scientologist, Jon Atack, introduced them to an active anti-religionist in the Los Angeles area named Priscilla Coates. It was through Coates and her attorney, Daniel Leipold, that the Youngs connected up with Graham Berry, for whom they eventually became paid “consultants.”

9. At one point in our conversations, Stacy broke into tears and said that she and her husband only began consulting with and selling declarations to Graham Berry because she and Vaughn were so desperate for money. Stacy said she had been willing to say under oath whatever Berry wanted her to say if it would result in getting paid, as she could not face continuing to live under the financial pressure she and Vaughn were suffering. Stacy said that she had made a vow, like Scarlet O’Hara in Gone With The Wind, that no matter what it took, she would never be poor again. Vaughn explained that it was “a great way to utilize twenty years that I was trying to avoid on my resume,” and that he could work one afternoon and make what would be a weekly salary in any other job.

10. In the course of the discussions, both Mike Sutter and I brought up how we could not understand how they could tell so many lies in the declarations they had filed, especially those in the Fishman case. Neither denied that this was what they had done, but explained that in order to be able to survive, they provided testimony requested by the attorneys, and that they had to write what was wanted or they would not get paid. Stacy said it was “obvious” they would not be paid to write things that

4

[CT 7421]

would be helpful to the Church.

11. We challenged them to explain how they could justify lying as a way of life, and they told us that what they had mostly done was twist facts and used “creative writing” and innuendo to paint a picture that was negative to the Church. They explained that they had tried to avoid explicitly lying about facts so they could not be accused of perjury. Vaughn especially seemed proud of this, and said that he was a writer by profession, which is why he was so good at preparing declarations and why he was paid so well. He claimed that unlike the Fishman case declarations of Andre Tabayoyon, Steve Fishman and Garry Scarff, where the lies and inconsistencies were obvious, his declarations were worded in such a way as to make them much more difficult to discredit. Nothing he said ever disavowed his explanation of how he manipulated facts to create false illusions.

12. Both of the Youngs readily agreed that they could easily set the record straight by writing new declarations which would “clarify” the statements they had made previously. Vaughn said that he did not want to write anything that would be a “direct contradiction” to what he had written earlier, but this was simply a matter of “interpreting” things differently. He said he intended to make his career as a writer and would need “credibility” in order to obtain future jobs, so wanted to do this “properly.”

13. Stacy said that by writing such declarations they would “burn their bridges” with the anti Scientology camp. She went on to say that this would not be difficult to do as they did not

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[CT 7422]

want to be involved in anti-Scientology litigation matters any longer and in fact, they were “between jobs” at the time, so it was an opportune moment to bring this entire episode in their lives to an end.

14. Stacy and Vaughn spoke extensively about matters they had put in earlier declarations during the course of several days of meetings. They explained their true views and talked candidly about many matters. For example, in the Fishman case, Graham Berry wanted them to execute declarations to support the contention that Steven Fishman was an experienced Scientologist. Both Youngs said that this presented a problem as the very data which Berry had given them to orient them to the “facts” of the case proved that Fishman was a fraud. Upon reading Fishman’s unpublished manuscript, The Lonesome Squirrel, they told us they had the same reaction: That Fishman was psychotic and that his so-called experiences in Scientology described in his manuscript never occurred. Stacy specifically mentioned by way of example that the manuscript discusses meetings and activities allegedly done by a Church staff member, Lyman Spurlock. Stacy said that she knew that such incidents could not have occurred; that Lyman Spurlock would never have done the actions Fishman alleged and that Fishman’s description simply does not match Mr. Spurlock. Further, she knew that the meetings described between Fishman and Church officials simply could not conceivably have occurred. She said the whole manuscript was ridiculous, a fabrication. Vaughn said he could not even finish the manuscript, it was so bad.

15. Similarly, they both described watching a video of Fishman describing the operation of a Hubbard Electrometer

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[CT 7423]

(E-meter). The video was supposed to demonstrate Fishman’s competence and knowledge in Scientology. The Youngs said Fishman explained that the meter’s “sensitivity knob” was used to keep the meter’s needle on its dial, and that this was such a ridiculous mistake that they burst out laughing and knew with certainty that Fishman was not an experienced, Scientology auditor.

16. Stacy also pointed out that they both knew that Fishman’s claims of having completed the Saint Hill Special Briefing Course — an advanced course in Scientology counseling — was a lie, that it was physically impossible for anyone to complete the course in the six weeks Fishman claimed. In fact, after recounting these facts, both Vaughn and Stacy stated that they knew that Fishman and his co-defendant, Uwe Geertz, were both crazy and that their allegations about Scientology were false.

17. Stacy said she had to come up with a way of supporting Fishman’s claims for Berry because she needed the money. She said she knew that she could not state in a declaration that Fishman was a long-term Scientologist as that would be, in her words, “completely untrue.” Instead, she said that she played with words and concepts so that she could, without directly lying, construct a picture that would create the impression that Fishman knew what he was saying about Scientology. She said she even knew that Fishman was ineligible for Church services due to an extensive history of psychological treatment, and to solve that she had created a way of explaining his “involvement” by alleging that “the Church had negligently allowed Fishman to read

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[CT 7424]

church scripture,” and that this “resulted in Fishman’s mental state deteriorating.” She said that she knew his mental state was not good, and that he knew some Scientology words and terms (though he usually misused them) and therefore this was a “credible” scenario that suited the attorney.

18. Stacy said that her theory was used to support the contention that Fishman had been “exposed” to upper level Church scriptures, even though he had never attained that level in the Church and the materials are kept strictly confidential in the Church.

19. She went on to explain that her distortions had extended to allegations about brainwashing, and that here she had quoted completely out of context from the writings of L. Ron Hubbard. She gave this as a classic example of how one can distort the facts. She said that it was ironic that while she was in the Church she had compiled a pack of materials written by L. Ron Hubbard where he had alerted people to the existence and dangers of mind control techniques through the use of pain, drugs and hypnosis. She had created the pack to rebut falsehoods presented by Bent Corydon in his case against the Church and that it showed that Mr. Hubbard was in the forefront of the condemnation of brainwashing techniques and had developed the first techniques to counteract it. For the Fishman case, however, she explained that she took this very same material and pulled selected quotes out of context to give her declaration a 180-degree reverse “spin.” Her Fishman declaration then gave the false impression that Scientology techniques were mind control when, in fact, they are just the opposite.

8

[CT 7425]

20. One of the falsehoods I brought up with Vaughn Young was his allegation that David Miscavige was involved in the death of his mother-in-law, and that Vaughn had stated that it was a murder.He said that “if you read my statements exactly (‘Mr. Miscavige’s behavior was overlooked in the investigation of the death of his mother-in-law… She died… from three shots to the chest and to the temple from a .22 rifle.’) you’ll see I didn’t say David Miscavige murdered his mother-in law.” I told him that this was the impression he created and he replied “Exactly.” He said that he could never have directly made the accusation as it wasn’t true but he crafted his declaration to create that impression.

21. Young said he had done the same thing when he attempted to create the impression that the Church was involved in the death of Steven Fishman’s wife, even though he knew this was simply incredible. However, he explained that they needed statements that would support the defense’s position, so he worked with the material he had.

22. This is what led to him supporting Fishman’s contention that he had been ordered to commit suicide or to “do an ‘end of cycle.'” Young explained that the three words did have a meaning in Scientology, and even though he knew that Fishman falsely claimed the term was Scientology slang for suicide or murder, and that this in fact was further evidence that Fishman was not a Scientologist, he had enough to go on to fashion a statement for a declaration that would be interpreted to support Fishman’s claims.

23. Vaughn also said that the Church could be poisoned by

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[CT 7426]

throwing around numerous allegations about the Church ordering people to commit suicide or murder. This was especially difficult to respond to when the events were so old they could not be objectively verified, and where no allegation of wrongdoing had been made at the time, so it would be too time consuming to attempt to correct them all.

24. Vaughn had further expanded on this theory when he stated that one cannot simply leave Scientology — i.e., cease being a member of the Church — because a Church policy states that it is better that a person “be dead” than to not be a dedicated Scientologist. Vaughn said he knew the quote was not meant to be taken literally, but again, it was something that as written he could not be charged with perjury for, yet he created a completely wrong impression. Ironically, both of them acknowledged that except for assistance from the Church to help them retrieve their belongings after they abruptly left the Church without notice, they had had no contact with any Scientologists from shortly after they left the Church until they began to file declarations against the Church, a period of more than three years.

25. Stacy also talked about her assertions that the upper level scriptures of the Church were in the public domain. She was challenged on this and admitted that she knew that the Church took great care to maintain the confidentiality of these scriptures as a matter of religious faith and actively would seek to prevent the improper distribution and exposure of these materials. She said she was willing to withdraw her declaration on this matter, as she knew how important this was to

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[CT 7427]

Scientologists.

26. After Vaughn and Stacy had opened up and talked a great deal about what they had been doing in their anti-Scientology litigation, they also discussed some of the other witnesses who had been hired by Graham Berry to attack the Church. Their descriptions match my personal knowledge and made it obvious that these are not credible witnesses. Stacy specifically mentioned Gerry Armstrong and Larry Wollersheim, both of whom were also paid witnesses for Berry. Stacy told me that Armstrong is psychotic and lives in a delusory world in which he holds conversations with God. She said that Wollersheim is as crazy as Armstrong is.

27. They also talked about Andre Tabayoyon. Stacy was especially upset about him, and described an incident in which she and others were at the offices of Berry’s law firm. Tabayoyon was upset that he had not been paid and began yelling in a wild and uncontrolled manner and threatening to kill people. When Stacy told him to stop shouting and to act more professionally, he began to make threatening remarks to her. His yelling drew the attention of employees of the law firm who came to see what was going on. When they arrived in the conference room where Stacy and Tabayoyon were located, Tabayoyon abruptly stormed out of the office. Stacy also told me that Tabayoyon continually mistreated his wife, Mary, and that he regarded her as a slave. Both Stacy and Vaughn found this conduct very disturbing, and they said they would find excuses not to have to socialize with the Tabayoyons because they were not good company and had nothing worthwhile to say.

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[CT 7428]

28. The Youngs said they would write declarations to set the record straight on points described above along with others. However, they said that as they would no longer have a source of income they needed help in getting on their feet. They wanted to get into the environmental or animal rights fields. They wanted nothing to do with litigation any longer, and even said that once they got established they might be able to help forward the Church’s environmental campaigns and programs. We said we would try to help find them jobs and might be able to assist them with a small loan or possibly even purchase of the rights to future writings to help them while they embarked on a new career.

29. We suggested that while we made inquiries about possible jobs for them, they should put together declarations which would rectify the falsehoods and misimpressions thay had created. They agreed that this would be easy for them to do.

30. Mike Sutter and I returned to Los Angeles and contacted Church staff and professionals who had connections in the environmental and animal rights areas and lined up several possible jobs for Vaughn and Stacy.

31. We returned to Seattle some days later to give Vaughn and Stacy the good news about the jobs we had found. We thought they wanted to resolve their differences with the Church and settle down to an honest living and that this would come as welcome news. It became clear almost immediately that they were not interested.

32. They said they had not written draft declarations, and in fact, had been thinking about it and had decided that they wanted the Church to pay them $540,000 — enough money to live

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[CT 7429]

without having to work for five years. They claimed that if they were to set the record straight it would end their careers as anti-Scientology consultants and that this was a lot of future income to give up. They made no mention of the morality of their position, and when challenged on it, merely responded that this was just a matter of money, not of right and wrong nor truth or fact. They would do and say whatever would make them money.

33. In an attempt to make their ridiculous demand sound reasonable, they stated that even for $540,000 they were not sure that they would write the declarations to correct the record as they had earlier agreed. They said that since we had left they had been in communication with some people they refused to identify, and had been given “legal advice’ that if they were to correct the declarations they had filed, the insurance company could sue them for “breach of contract.”

34. It should be made clear here that neither of the Youngs has any claim against the Church and both have stated such when asked this question directly in deposition. I brought this up to the Youngs to make clear to them that they couldn’t even have a reason for thinking we owed them money. I told them that if they wanted peace they had to voluntarily provide truthful declarations to correct their lies and that we would not accede to their extortionate demand. While admitting that we didn’t owe them anything for what they had done while in the Church, their answer was simple. It was not a moral question. They earned a good living distorting facts against Scientology, and for them to stop, we should pay up. Vaughn Young summed up their position by claiming that the more of an asshole one is the more one is

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[CT 7430]

worth in this game.

35. I told Vaughn that I could not believe he was demanding that the Church pay him an enormous amount of money so he would not have to work at all. He became very indignant at this and threatened that he would “do more” and that we would wish that we had “paid him now rather than have to deal with what he would do to us in the future.”

36. Thus the Youngs ultimately refused to put down on paper what they had so willingly told us in person, because we would not pay them for the truth like they had been paid to lie.

37. The Youngs never retracted their admissions that their publicly filed declarations created false impressions and contained lies. In fact, they even said they would now have difficulty carrying on with their “profession” as witnesses due to what they had told us.

38. In summary, the facts are as follows: When we met with them alone, the Youngs candidly admitted what we have been telling the court all along, they have been lying and intentionally distorting facts. They do it knowingly and will readily admit to it outside the presence of an attorney or Court Reporter. They feel comfortable in making these allegations because they know that unfounded accusations against Scientology are given much greater deference in the Courts than are false and degrading accusations made about others. They saw this themselves when they were in the Church, and now they exploit it for cash.

39. No doubt they will now try to deny the facts laid out in this declaration, but when they do so, their motivation should be

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[CT 7431]

remembered. They still have their jobs as anti-Scientology witnesses to protect.

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

Executed this 27th day of October 1994 at Los Angeles, California.

[signed]
Michael Rinder
MICHAEL RINDER

Notes

CSI 1023 Submission: Response to Question 10 [Civil litigation involving the Church] (November 23, 1992)

Question 10

INTRODUCTION1

In the responses that follow, the Church is providing all of the information the Service has requested in the various subparts to Question 10. It is only fair, however, that the following responses be considered in their proper context, and for that reason we submit the following additional information by way of introduction.

Question 10 relates exclusively to public policy questions, focusing on civil litigation involving the Church. There is no escaping the irony of being asked to catalogue the unsubstantiated allegations of civil litigation adversaries when those allegations often have been manufactured, promoted, disseminated, and even subsidized by a cadre of anti-Scientology individuals within the Service itself. The Church does not believe that the Service as an institution, hates Scientology. We believe there are and have been, however, a core of dedicated “Scientology-bashers” within the Service who have allied themselves with encouraged, and even fixed the tax problems of the principal sources of the tired civil allegations we are now being asked to chronicle.

Question 10.e.i and 10.e.ii request a list of all of the tort allegations that have been made against any Church of Scientology in more than a score of cases arising within the last twelve years and for copies of all verdicts, decisions or findings made by any court that any of those allegations were true. As may be seen in the following responses, two of the only four cases where any such decision has been issued, and a majority of the other cases were instigated or heavily influenced by the Cult Awareness Network (“CAN”).

CAN and its influence on the litigation in question was described in passing at page 10-20 of our response to Question 10 of your second series of questions. There is no escaping the fact that CAN has been able to survive financially and has drawn much of its false veneer of credibility from the Service’s recognition of it as exempt under section 501(c)(3).

CAN was formed in 1975, under its original name, Citizen’s Freedom Foundation. CAN’s activities, from its inception until today, have consisted of negative propaganda campaigns against nontraditional religious organizations and promoting and perpetrating “deprogrammings,” a euphemism for kidnapping people and using force and coercion to dissuade individuals from maintaining their voluntarily held religious beliefs.

CAN applied for tax exemption in March of 1976 as an educational organization. Literature provided with its

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application, however, clearly evidenced CAN’s biased views and its involvement in deprogramming. Indeed this material shows CAN’s close association with Ted Patrick (one of its founders), who has   been convicted on numerous occasions for kidnapping, assault and related charges arising from his violent deprogramming activities. It was Patrick who touched off the premier tort case against Scientology when he deprogrammed Julie Christofferson in 1977. (This is further described at pages 10-15 and 10-16 of our response to Question 10 of your second series of questions and infra.)

The IRS denied CAN’S initial application for exemption because “after reviewing your publications, we concluded that a significant portion of your viewpoints were not supported by relevant facts.” CAN reapplied in 1977 but the application and CAN’s accompanying literature showed that CAN had not reformed. Consequently, the Service again informed CAN that its application was being denied because “Your revised application for exemption contains disparaging statements about organizations which are not supported by facts. Your revised application indicates that the reasons for our denial of your previous application are still present.” (Exhibit III-10-A).

CAN did not give up. In July 1978, CAN submitted additional information to the IRS including a “Statement of Purpose, Functions and Activities” which included the claim that one of CAN’s functions was to recommend personnel and facilities for deprogramming. CAN furnished the Service with an example of how CAN would handle a contact from a caller who intended to join the Church of Scientology: referral of the person to ex-members for negative information on Scientology and to an attorney in his or her area, as well as providing the person with a list of “Dos and Don’ts” which included advising the person to file complaints with the government. (Exhibit III-10-B). CAN identified the Church of Scientology as one of its principal targets and the Service granted CAN tax exempt status. (Exhibit III-10-C).

From that point forward until the present, CAN has followed the precise modus operandi concerning Scientology that it described   to the Service in 1978. CAN refers individuals to ex-members for negative information about the Church and to attorneys who then create causes of action against the Church that almost always recite the same boilerplate tort claims. As will be seen in the response to Question 1.e.i, a large number of the cases listed in that section have been filed by attorney Toby L. Plevin. Plevin is a CAN member who gets all of her client referrals from CAN in exactly the manner CAN described in its 1978 application supplement.

CAN also continues to be involved in the felonious practice CAN calls deprogramming, which is as flagrant a violation of public policy as can be imagined. While CAN enjoys exempt status

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its deprogrammers are being arrested and jailed by local police agencies and the FBI. Recently, CAN deprogrammers Galen Kelly and Bob Moore, and CAN attorney Robert (“Biker Bob”) Point, were arrested by the FBI and charged with conspiring to kidnap Lewis DuPont Smith, heir to the DuPont fortune, and to “deprogram” him   from his support of Lyndon LaRouche’s political organization. (Exhibit III-10-D). At this writing there are several other CAN deprogrammers under indictment as a result of their deprogramming activities, including Joe Szimhart, Mary Alice Chrnaloger, Karen Reinhardt and Randall Burkey. (Exhibit III-10-E). It is troubling that in the face of this kind of evidence individuals in the Service like Jacksonville District EO agent Melvin Blough, continue to use CAN as an investigative arm to drum up false charges against the Church of Scientology. (Exhibit III-10-F).

There are individuals in the Los Angeles IRS Criminal Investigation Division (“CID”) who harbor sentiments about Scientology very much akin to those espoused by CAN, who have directly brought about or have had a major influence on Scientology-related civil litigation. Much of this information has been covered before or is covered in more detail in the responses to specific subparts of Question 10 that follow. Consider the following:

* The decision in Gerry Armstrong’s case is one of those described in detail in response to Question 10.e.ii. Armstrong’s fanatical hatred of Scientology ingratiated him with the LA CID and earned him the status of IRS operative in an unlawful scheme to infiltrate and destroy the Church through, among other things, the seeding of Church files with forged or manufactured documents. Armstrong was a link between the CID and Michael Flynn, whose multi-jurisdictional litigation campaign against Scientology was encouraged and assisted by the CID. (See pages 10-8 to 10-16 of our response to Question 10 of your second series of questions). The allegations, first manufactured by Armstrong and Flynn, have been adopted and parroted by many of the other tort litigants whose cases are described in the response to Question 10.e(i). In exchange, Gerry Armstrong has been insulated from liability for his theft of Church documents and encouraged to continue and to expand his nefarious efforts.

*The Aznarans, whose case was described at pages 10-18 and 10-19 of our response to Question 10 of your second series of questions, left the Church and filed suit for $70,000,000,

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resulting almost immediately in their being embraced by the IRS CID. The CID agents then passed the Aznarans on to like-minded EO agents in Los Angeles who interviewed them, encouraged them to continue their attacks on Scientology, treated their claims as fact and used their allegations as a basis to throw five years of cooperation from the Church down the drain. A tax debt that the Aznarans had been unable to handle with the IRS for ten years disappeared when they became civil litigants against the Church and CID informants.

*Question 10.e.iii asks for a description of the criminal case involving the Church in Canada, which is described in the answer to Question 10-e-(iii) and in a memo from counsel for the Church of Scientology of Toronto attached as Exhibit III-10-U. As that memo details, LA IRS CID agents fed information, allegations and witnesses to the Ontario Provincial Police (“OPP”) and plotted with Armstrong, Flynn and OPP officers to bring about the “collapse” of the Church. CID agents traveled to Canada where they encouraged the OPP to bring indictments, offering to help locate L. Ron Hubbard and others in the Church if OPP moved forward with their case. The CID and OPP also utilized apostate David Mayo and his cronies to recruit ex-GO criminals as government witnesses to testify against the church and their former subordinates about crimes that they themselves had perpetrated. Mayo is further described below.

* As early as 1969, a CID operative named Gene Allard was allowed to get off scot-free with the out-right theft of Church records. (See response to Question 10.d.1, infra.).

* Laurel Sullivan, who left and became disaffected with the Church after she was removed from her Church post for being a Guardian’s Office sympathizer, was embraced as an informant by the CID, and was represented by a government attorney when the Church sued her personally for improperly disclosing attorney-client information to the IRS. (See page 3-40 of our response to Question 10 of your second series of questions).

* As described below apostate David Mayo gained favor with the IRS as an informant and IRS reciprocated by granting exempt status to his group in support of his anti-Scientology stance. This list could go on with example after example of times when some person or organization has manifested an anti-Scientology sentiment and has suddenly emerged as an IRS ally, operative or beneficiary. At that moment such a person or group is transformed into a fountainhead of unassailable virtue whose claims are gospel, whose protection is guaranteed and who is given unwarranted, improper encouragement and assistance. As described in detail below, while Churches of Scientology receive unprecedented scrutiny when they apply for tax exemption, apostates who sue the Church and attack the religion have been aided by IRS tax exemption subsidies.

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An anti-Scientology sentiment has existed in the IRS National Office Exempt Organizations Technical Division, dating at least back to CAN’S 1978 exemption. Certain EO Technical Division officials appear to have directly colluded with the CID in 1984 and 1985, using information gathered by the CID, including the statements and allegations of their informants, to sabotage the Church’s exemption proceedings at that time. Evidence of their bigotry is best seen in their treatment of anti-Scientologists.

David Mayo:

David Mayo was removed from a senior Church position for moral turpitude. He was using his position for economic advantage. Even more serious from a Scientology perspective, he was the source of serious alteration and denigration of the technical scriptures of Scientology. Rather than atone for his misdeeds, he left the Church in 1982.

Upon leaving, Mayo and a few others established an organization he called the Advanced Ability Center (“AAC”), which utilized a badly altered version of Dianetics and Scientology technology in an effort to lure parishioners away from the Church for economic advantage. For example, Mayo dropped the use of Scientology ethics technology altogether, eschewing ethics as an applicable concept. Solely for the tax advantages it would afford, he incorporated the AAC under the name “Church of the New Civilization” (“CNC”), but it operated solely as the Advanced Ability Center. Mayo’s prime objective was to obtain copies of the confidential upper level scriptures so that he could represent that CNC/AAC could deliver the entire Bridge as it existed in the early 80’s and thus attract a larger following. Mayo conspired with like-minded apostates in Europe and effected the theft of these scriptures on December 9, 1983 from AOSH EU & AF in Denmark. These events prompted the suit by RTC and the Church as described on pages 10-17 and 10-18 of our response to Question 10 of your second series of questions. Mayo also actively endeavored to lure Scientologists away from Scientology, including putting out a publication of negative propaganda on the Church.

In 1984 CNC filed for tax exemption. The original application identified CNC’s source of financial support to be “Fees received from parishioners for counseling.” CNC’s statement of activities stated that “The program of activities of [CNC] are limited to personal counseling and spiritual studies” and responded affirmatively to questions on whether or not recipients would be required to pay for counseling. Subsequently, Mayo gave an opposite answer to the question. Eventually, the 1023 application was forwarded to National Office for processing by Rick Darling who inquired further into CNC’s fundraising methods. Mayo responded that “Parishioners receive spiritual enhancement and guidance from the Church in a program of services for which monies are given and received” to a question asking why parishioners would donate to CNC.

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During the same time period Darling and Friedlander were considering the CNC application, they were using “commercialism” as a reason to deny tax exemption to various church of Scientology applicants. Their purported reason was that the Church charged fixed donations for services giving them a “commercial hue and purpose.” Shortly after issuing adverse determination letters to the Scientology applicants, EO granted CNC’s application on substantially identical information as to funding practices.

Mayo had become a CID informant (Exhibit III-10-G) and Darling/Friedlander were now aware that Mayo was an enemy of the Church of Scientology. (Exhibit III-10-H). On March 27, 1986, David Mayo himself responded for CNC to a set of questions from   Darling. In response to a question whether CNC charged fixed amounts for their services, Mayo provided information which contradicted CNC’s 1023 record and was flatly impossible stating that CNC had “no predetermined price.” (Exhibit III-10-H).

Frank Gerbode:

Psychiatrist Frank Gerbode is an heir to the Alexander Baldwin sugar fortune. He left psychiatry for Scientology in the 1970s and for several years was the mission holder of the Palo Alto mission. He ran afoul of Church management in the early 1980s when the Church tried to reform his financial misdealings. In March 1984, Gerbode left the Church to join up with David Mayo. He set up a parallel operation he also called Advanced Ability Center in Palo Alto which, for tax purposes, he named the Church of the Universal Truth (“CUT”). Gerbode’s 1023 application, along with those of CNC and various Church applicants also went to Darling and Friedlander.

The exemption applications for the churches of Scientology were denied; the applications for CNC and CUT were granted. While Darling and Friedlander asked endless intrusive questions of the Scientology applicants, they chose not to find out about CNC and CUT. For example, by the time they recognized CNC’s exempt status, CNC had long since ceased operations. Mayo had cashed in its assets and deposited them in his personal Liechtenstein bank account and had gone to work for Gerbode at CUT. He essentially liquidated the corporation into his own pocket, even though it was a non-profit organization purportedly dedicated to section 501(c)(3) purposes.

More specifically, the last known letter from Mayo to the IRS on the CNC exemption application is the one mentioned above, dated March 27, 1986. (Exhibit III-10-H). According to the deposition testimony of his wife, Julie Mayo, CNC closed its doors one month later, on April 30, 1986, at which time David and Julie Mayo both resigned their respective director and officer positions. They also sold the house in which they were living that had been purchased in their name by CNC as a “parsonage,” and using other

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rsed to them from CNC as “severance pay,” “travel expenses”and “vacation pay accrued,” they traveled for the next several months to Europe, Australia and Florida with Gerbode and his wife. While on this trip they stopped over in Liechtenstein where Gerbode introduced Mayo to his banker who opened an account for him with the $80,000 received from the sale of their “parsonage.” CNC’s exempt status was granted subsequent to these events. In fact the only ongoing activity of CNC at the time it was granted exemption was ongoing litigation with the Church of Scientology.

Gerbode obtained tax exemption for CUT ostensibly based on representations that the organization was a church and conducted exclusively religious activities. (Exhibit III-10-I). In fact, once tax exempt status was obtained, CUT ceased carrying out any religious activities and began dispensing a novel brand of psychology under the name Center for Applied Metapsychology (“CAM”), and promoting Gerbode’s personal books and literature, co-authored by Mayo, much of which are plagiarized from the works of L. Ron Hubbard. In 1986, Gerbode also established the Institute for Research in Metapsychology (“IRM”), another tax exempt organization which operates at the same address using the same personnel as CAM, and which produces the literature and materials that CAM promotes and distributes. IRM characterizes metapsychology in scientific terms, making it clear it is not a religion and followed no belief system. Yet metapsychology is what Gerbode’s church, CUT operating as CAM, dispenses.

Compare the representations made by CUT in Exhibit III-10-I, a letter to the IRS in support of their exemption application in December 1985, to the representations made by Gerbode concerning the same organization on November 2, 1992 in Exhibit III-10-J. In the December 5, 1985 letter in support of its exemption application, CUT discussed its purported “religious doctrine” and “religious history” and submitted copies of their baptismal, funeral and marriage ceremonies, representing that it was a Church conducting exclusively religious activities. (Exhibit III-10-I). On November 2, 1992, Gerbode wrote to the City of Menlo Park, California in response to a “complaint that a church is being operated at the premises” to set the record straight so that they would not lose their zoning permit:

CAM [really CUT] is classified under the IRS code as a church . . . However . . . CAM does not hold worship services, perform baptisms, or carry out other such activities typical of churches.

* * * *

“‘Church’ means a structure intended as a meeting place for organized religious worship and related activities.” We feel that this does not apply to the building or the activities occurring therein.

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Exhibit III-10-J.

This is the “church” that passed muster with Friedlander and Darling as soon as it was apparent to them that, like Mayo, Gerbode   was no longer associated with and was opposed to L. Ron Hubbard and the Church of Scientology. Gerbode has made substantial “contributions” to both CAM and IRM, which he deducts on his personal income tax returns as charitable contributions. However, at the same time Gerbode receives the direct benefit of the bulk of these “contributions” from CAM and IRM in the form of rent, salaries and payment of personal expenses. The organizations also   provide Gerbode with an administrative staff and office facilities, all tax-free. The following are specific tax law violations Darling and Friedlander could have found if they had subjected CUT   to the same kind of scrutiny they had subjected Churches of Scientology to during the same period.

In 1982 and 1983, prior to the incorporation of CUT, when Gerbode was still the mission-holder of the Church of Scientology Mission of Palo Alto, he claimed substantial tax deductions on his personal tax returns for books, office furnishings, equipment, artwork, etc., that he purchased for use at the Mission. When Gerbode left the Mission in 1984 and established CUT, he donated these same books, office furnishings, equipment and artwork to the new corporation and again claimed them as charitable contribution deductions on his personal tax return. These were listed as donations in the 1023 application for CUT that Darling reviewed in 1986. When Gerbode left Scientology in 1984 he evicted the mission from his building in favor of his new operations, CAM and IRM from which he now collects rent. It is also evident that he launders donations to CAM/IRM back to himself as rent in order to get the benefit of both the charitable deductions and depreciation write-offs.

The IRS continues to probe litigation involving the Church while it ignored litigation against Mayo et al. Indeed the Service gave a de facto subsidy to the Gerbode/Mayo litigation by granting exemption to their litigation tax shelter. In the letter that Mayo wrote to the Service in support of CNC’s exempt status in March of 1986 (Exhibit III-10-H) he sent along part of the complaint in the suit RTC and CSI had brought against Mayo and CNC which alleged theft and violations of the RICO statute. Darling apparently did   not consider it necessary to inquire about the possible public policy implications of this litigation once he saw that Mayo was on opposite sides in the litigation to the Church and granted exempt status.

In 1986, Gerbode and Mayo established and obtained tax exempt public charity status for the Friends of the First Amendment (“FFA”), an organization purportedly established to support and promote First Amendment rights, but which in fact enabled Gerbode to claim tax deductions for hundreds of thousands of dollars he

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“donated” to FFA, which sums were then used to pay Mayo’s litigation costs in his litigation with the Church. Although Gerbode is not a party to this litigation, a central issue in the suit concerns the control of copyrights in the name of L. Ron Hubbard that Gerbode has exploited. Gerbode struck a deal with David Mayo that Mayo will continue the litigation provided that Gerbode funds it, with the understanding that Gerbode will be reimbursed for the litigation costs if Mayo wins a counterclaim for damages. Thus, Gerbode has used FFA to deduct as charitable contributions what are in reality his own litigation expenses, that he expects to recover if the litigation is successful. David Mayo, on the other hand, hopes to net millions of dollars if the counterclaim is won. Gerbode has also disguised some of the millions of dollars he laundered through FAA so that they would not appear to be from him in order to avoid FFA being found to be a private foundation, and cemented this by shutting FFA down just before its advance ruling period on private foundation status expired in 1990.

The only question Mayo’s and Gerbode’s groups were asked concerning litigation was whether their “legal defense fund” was set up solely to battle the Church of Scientology. When they answered in the affirmative, exemption was awarded.

Unlike CNC, CUT, and CAN, who to this day enjoy exemption, our principal clients have no such status. Yet we alone of that group have been and are providing truthful and full answers to each question you have asked.

———————-

All of the information the Service has requested in the various subparts of Question 10 is contained in the responses to the individual subparts that follow.

* * * *

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Questions 10.a, 10.b, 10.c and 10.d.2

In question 10 of our second series of questions, we expressed our concern over the possibility of continuing violations of public policy and requested certain information to assuage these concerns. We have additional follow-up questions in this regard.

a. Attached is a document relating to a program referred to as Snow White that apparently existed as of December 16, 1989. Please explain the apparent discrepancy between the document contained at the attachment and the response to Question 10.b.

b. The response to Question 10.b refers to a decision by Judge Osler of the Supreme Court of Ontario (page 10-5). Please provide a complete copy of the cited opinion.

c. What is the status of Operation Transport Company? Does it continue in existence? If not, please specify when and to whom all assets were distributed or transferred.

* * * *

d.2. Please provide the following information with respect to Exhibit II-10-A; (i) fill in the blank under the heading of “Primary” contained in #6; (ii) an explanation of the reference to “HF” or “AS” under the heading of “Primary” at #7; and, (iii) fill in the blanks under the heading of “Vital Targets” contained in #7.

—————–

As a preliminary matter, we note that question 10 has two subparagraphs denominated as “10.d.” For the sake of clarity, we will refer to the first as “10.d.1″ and the second as “10.d.2.” Subparagraph 10.d.1 and paragraph 10.e are addressed in separate responses. This response addresses the remainder of question 10.

Subparagraph 10.a

Subparagraph 10.a asks for an explanation of an “apparent discrepancy” between the response to Question 10.b of your second series of questions and Exhibit II-10-A.

That which is attached is a copy of a document written in December of 1989 by a person holding the position of Snow White Programs Chief in the Office of Special Affairs United States,

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and describes her functions and those of the Snow White Unit. The document also specifically mentions the Snow White program and its “Ideal Scene”: “All false and secret files of the nations of operating areas brought to view and legally expunged and OTC, “Apollo” and LRH free to frequent all Western ports and nations without threat and all required ports open and free.”

Initially, it must be stated that the document in question was stolen from Church offices by an individual who had infiltrated the Church at the behest of the Cult Awareness Network. It was then passed on to the IRS by the CAN infiltrator via CAN. (See page 10-20 of our response to your second series of questions and supra for discussions of the Cult Awareness Network).

The “apparent discrepancy” to which subparagraph 10.a refers seemingly arises from use of the word “programs” in a post title that includes the words “Snow White” viewed against the statement on page 10-5 of our response to your second series of questions that “The Snow White program is not being executed today.” There is no inconsistency. That same page also states that the term Snow White became synonymous with the activity of legally locating and correcting false reports on the Church. The Church vigorously pursues these objectives through the use of the Freedom of Information Act and through direct negotiation with government agencies intended to persuade them, at minimum, that if expungement of false reports is not feasible, corrective reports should be filed.

The original Snow White program, provided as Exhibit II-10-A, was written specifically to address problems which existed in 1973 with respect to OTC, the Apollo and Mr. Hubbard. Because the United States State Department and other government agencies had engaged in the circulation of false reports, free access to various Western ports and nations had been severely curtailed. The Apollo was sold in 1975, OTC became inactive at that time, and Mr. Hubbard passed away in 1986. Clearly, the original Snow White program became obsolete within a couple of years of its creation and is no longer in effect. In fact, the Apollo no longer exists. Once converted by its new ownership to a restaurant in Texas, it was involved in a train collision and in dry dock was cut into scrap. So, there is no way the Apollo will be frequenting Western or any ports!

However, obsolescence of the actual program did not invalidate Mr. Hubbard’s observation that when governmental and police agencies are allowed to accumulate false information in their files, and disseminate it to other agencies, they then “…tend

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to act on the file without the presence of the real scene data which is factually good but which is then ignored.” In an ongoing effort to practice the Scientology religion free from the interference of misinformed government agencies, the Church continues to pursue the Snow White objectives with the legal means at its disposal. Only when the Church is free from governmental harassment and is accorded its rights will the 6 need for Snow White activities vanish.

Subparagraph 10.b

Subparagraph 10.b requests a copy of Justice Osler’s decision cited in the June submission. A copy of that Supreme Court of Ontario decision is submitted as Exhibit III-10-J-1, with the appropriate sections highlighted.

Subparagraph 10.c

Subparagraph 10.c addresses the present status of OTC, as well as details regarding the timing and distribution of any of OTC’s former assets.

OTC effectively ceased to operate in late 1975 when the Church activities that had been housed on the Apollo moved ashore in Florida. OTC remained inactive from that point forward except for ongoing litigation against the Portuguese government which is described on page 10-3 of our response to your second series of questions.

In July 1981, OTC’s aggregate assets were approximately $2,244,252 plus Pounds Sterling 2,254,852. At that time, OTC transferred all of its assets except for approximately Pounds Sterling 200,000 and its pending Portuguese claim to the Scientology Endowment Trust. This trust was recognized as tax exempt by the IRS under Section 501(c)(3) in 1983 after the particulars relating to the transfer of funds from OTC were specifically reviewed. In 1988, OTC dissolved and all assets still remaining, approximately $180,000, were transferred to Church of Scientology Religious Trust.

Subparagraph “10.d.2″

In Subparagraph “10.d.2,” you ask to have some blanks in the copy of the Snow White program provided to you with the June submission filled in and for an explanation of the terms “HF” and “AS.”

The version of the Snow White program provided with the June submission contained blanks in the places that you noted, apparently left there by whoever retyped that version. We have located, and are including here as Exhibit III-10-K, another

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version which appears to be a copy of the original version and contains no blanks. The abbreviations “Cont,” “Gdn” and “DG/US” in Vital Target 7 stand for Controller, Guardian and Deputy Guardian United States.

The abbreviation “HF” stands for Hubbard Freedom Foundation. Our records show that it was set up as a Liberian corporation in November 1972 for scientific, research and educational purposes, received a total of $500 from OTC, but then never became active and never received any other funding.

The abbreviation “AS” stands for American Society which was another Liberian corporation also established in late 1972, at or around the same time as the Hubbard Freedom Foundation and probably for similar or related purposes. The best available information is that the American Society had a fate similar to Hubbard Freedom Foundation, receiving a small amount of money to get started, but then never actually carrying out any activities or function.

As neither of these Liberian corporations was ever active and as no effort was made to maintain their corporate charters in Liberia, we assume that they were dissolved by operation of law many years ago. The Liberian attorney who originally formed them was killed in a political upheaval more than a decade ago, and we, therefore, have no access to HF or AS records.

* * * *

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Subparagraph 10.d.1

In our prior question 10, we expressed our concern over the possibility of continuing violations of public policy and requested certain information to assuage these concerns. We have additional follow-up questions in this regard.

* * * *

d. In CSC v. Commissioner, 83 T.C. 381 (1984) at 431-437, there is a discussion of the actions of several persons identified by name or office (e.g., Vicki Polimeni). Please identify the persons who held the following offices during the period referenced at pages 431-437 of the CSC opinion: (i) FBO International; (ii) FBO AOLA; and (iii) FBOs at various other Advanced Organizations as described at page 431 of the CSC opinion. Please state whether Vicki Polimeni or any of the individuals identified in the response to this question have at any time subsequent to 1989 been related (by reason of being service-provider or otherwise) to any Scientology-related organization (either as staff or in any other capacity). Please describe the current relationship between Martin Greenberg and Scientology-related organizations.

——————–

During the period of time described at page 431 and 432 of the CSC decision, i.e., May through August 1969, there were only three Advanced Organizations in existence. Consequently, the positions you have inquired about and the individuals who held them were:

FBO International — Al Boughton FBO AOLA — Lauren Gene Allard FBO AO United Kingdom — Don Clark FBO AO Denmark — Rob Sanderson

Vicki Polimeni, Don Clark and Rob Sanderson ceased having any relationship with any Scientology-related organization many years ago, long before 1989. From 1989 to the present, Al Boughton has been a staff member at the American Saint Hill Organization (ASHO) in Los Angeles. He holds the position of Auditing Supervisor for the Saint Hill Special Briefing Course, responsible for overseeing the auditing done by students training to be Scientology auditors on this course. The Church has had no specific information concerning the activities or whereabouts of Gene Allard since 1981, when he appeared as an IRS witness in the Tax Court trial of the CSC case.

The Church has long suspected that Allard was sent into AOLA in 1969 by IRS Intelligence Division agent John Daley, to infiltrate the Church as an agent provocateur. John Daley was an agent in the IRS’ Case Development Unit in Los Angeles, a unit

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which served as a model for a national intelligence operation known as the Intelligence Gathering and Retrieval System (“IGRS”). The IGRS was disbanded in 1975 when Congress found that it had “fostered unrestrained, unfocused intelligence gathering and permitted targeting of groups for intelligence collection on bases having little relationship to enforcement of the tax laws.” Congress found that “there were the beginnings of politically motivated intelligence collection in at least one district; and evidence that the fruits of similar investigative efforts in two districts had been destroyed.” One of the districts that destroyed its files on the eve of the Congressional investigation was the Los Angeles District (i.e. John Daley’s files) and the other was the St. Louis District, where Congress found that a file labelled “Subversives” that “contained only material on the Church of Scientology” had been destroyed. (See pages from Supplementary Detailed Staff Reports On Intelligence Activities And the Rights of Americans, Final Report of the Select Committee to Study Governmental Operations With Respect to Intelligence Activities, attached as Exhibit III-10-L).

Circumstantial evidence strongly suggests that Allard was a clandestine operative who reported to Daley. Daley had been investigating the Church since at least 1968 and, by the time Allard first appeared at AOLA, Daley had already used a plant inside Crocker Bank who provided Daley with illegally-obtained copies of the Church’s confidential bank records. After occupying the position of FBO AOLA for barely two months, Allard suddenly disappeared, taking with him some internal Church correspondence and other Church assets. Allard turned over the documents to the IRS in Kansas City; the documents were forwarded to John Daley in Los Angeles.

The Church filed criminal charges against Allard. He was later located and arrested by the FBI in Florida and brought back to Los Angeles. Not long after Daley interviewed Allard in jail, the California Attorney General’s office decided the evidence against Allard was insufficient and dropped the charges. Then, in 1981, Allard surfaced as a witness for the IRS in the CSC case along with the documents that he had stolen, admitting on cross-examination that he was hopeful of receiving a reward if his testimony resulted in collection of any taxes. Judge Sterrett demonstrated a willingness throughout the CSC trial to regard any anti-Church witness as credible, but even he had problems with Allard’s testimony: Judge Sterrett found that “There were significant inconsistencies in his testimony . . .”. 83 T.C. 509.

Nevertheless, it was Allard’s testimony and the documents that he stole that formed virtually the sole basis for the findings at

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pages 431 and 432 of the CSC decision about which you now inquire. Judge Sterrett’s gratuitous comments suggested that whatever occurred at AOLA in 1969 constituted some kind of criminal conspiracy. All of this evidence however, was known in 1969 when Revenue Agent Woodrow Wilson unsuccessfully sought to institute a fraud investigation. In June 1969, Daley even went so far as discussing with California State officials the use of the Allard evidence as “grounds for dissolution” of the Churches of Scientology. (Exhibit III-10-M.) In August of 1969, Wilson presented this information in the form of a “fraud referral” in an effort to elevate it from “case development” status to an actual criminal investigation. The fraud referral was declined by the Chief of Intelligence. (Exhibit III-10-N.)

You have also asked about the current relationship of Martin Greenberg to any Scientology-related organizations. Mr. Greenberg has not been on the staff of any Scientology-related organization since early 1980’s. He is a certified public accountant with an accounting practice in Clearwater, Florida. Although we understand that individual Church members have used his services for their personal or business accounting, he has not to our knowledge been retained nor has he done any accounting work for any Scientology-related organizations for many years. Mr. Greenberg is a parishioner of the Scientology religion.

While in Los Angeles in 1978, Martin Greenberg, along with CPA James Jackson, formed the firm of Greenberg and Jackson. In 1983 Greenberg moved away and sold his interest in the practice to Jackson, who retained the name “Greenberg and Jackson” for the professional corporation. At that time Mr. Greenberg ceased having any involvement in or knowledge of the affairs of any Scientology-related organizations. Recently, Mr. Jackson also sold his interest in this practice and presently there is neither a Greenberg nor a Jackson associated with “Greenberg and Jackson.” Several Scientology- related organizations continue to utilize the services of CPA Brad Bernstein, one of the present shareholders of that firm.

* * * *

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Questions 10 e(i)-(ii)

In our prior question 10, we expressed our concern over the possibility of continuing violations of public policy and requested certain information to assuage these concerns. We have additional follow-up questions in this regard.

* * * *

e. We have carefully reviewed the response to Question 10.d. The Service still requires a more complete understanding of the cases listed in the response. Please provide the following information, as well as any other information or documentation that you believe would assist the Service in this regard.

(i) For each of the cases listed on pages 10-20 through 10-22, please provide a short description of all claims by the non-Church of Scientology parties. In particular, please describe any allegations that the Scientology-related organizations, and/or the individuals, described in Question 2.d of our second series of questions have engaged in any action that is an intentional tort and/or that would violate any criminal law. In your description, please include the date the action is alleged to have occurred and the party alleged to have committed the action.

(ii) For each of the cases on pages 10-8 through 10-22, other than the “GO Criminal Activity Fallout Litigation” cases listed on pages 10-16 and 10-17, please provide a copy of any jury verdict, or any decision, finding or statement by a court that any Scientology-related organization, and/or any individuals described in our prior Question 10.d, engaged after 1980 in any action that is an intentional tort and/or that would violate any criminal statute. The copy should be provided regardless of the ultimate disposition of the underlying legal action (e.g., even if an appeal is still pending or the action was settled, dis- missed, or successfully appealed). With respect to each copy provided, please state whether the Church agrees with the court’s statement, and, if so, whether there is presently any connection or relationship between the individual(s) involved and the church.

——————-

Subparagraph 10 e(i)

In our response to the Service’s prior Question 10.d, we provided a lengthy description of litigation involving Scientology-related organizations or individuals since 1980. To facilitate the Service being able to understand these cases and put them into proper context, the cases were grouped according to the kind of case and allegations and the phenomena that brought the various suits about.

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In this follow-up question the Service is asking for copies of any jury verdicts or judicial findings respecting all but a few of those cases, where it was found that a Scientology-related organization or individual committed a tort or criminal law violation; and with respect to just three of the groupings of cases, the Service wants further information concerning the allegations made in those cases. Those groupings are: 1) cases listed as financial or property disputes or transactions; 2) personal injury or medical-related suits; and 3) suits that appear to have been instigated directly or indirectly by the Cult Awareness Network.

As described above in the Introduction to Question 10, in the vast majority of these cases the allegations that have been made and which are described below, trace back in one way or another to the IRS itself.

Nonetheless, in the spirit of cooperation, we are providing in this response all of the information requested — i.e. the description of the allegations in each of the cases listed on pages 10-20 to 10-22 of our response to your second series of questions and copies of the verdicts, decisions and findings requested in Question 10.e (ii). We feel it is appropriate, however, to make the following preliminary observations.

Public Policy As An Exemption Issue:

All of these questions concerning litigation relate to the issue of public policy. Section 501(c)(3), however, contains no express condition that an organization must operate in conformance with public policy to qualify for tax exemption. Whether or not an organization violates public policy is relevant to exemption only in the context of whether the organization is operated exclusively for one of the exempt purposes that section 501(c)(3) enumerates.

Only one judicial decision has ever applied a public policy condition to the exempt status of a church — the Tax Court decision concerning the Church of Scientology of California (the “CSC decision”). Judge Sterrett, however, limited his findings of public policy violations affecting CSC’s exempt status strictly to the activities of the Guardian’s Office (“GO”) that resulted in a number of GO members being convicted of crimes. Thus, although the Service was prepared to present testimony in the CSC case from tort claimants such as Larry Wollersheim and some of attorney Michael Flynn’s clients, Judge Sterrett precluded that testimony and made no finding regarding public policy based on any civil tort claims. (See our response to Question 10.d of your second series of questions for a description of Michael Flynn’s and Larry Wollersheim’s claims infra.).

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The CSC decision, upon which the Service has often relied, itself highlights the irrelevancy of pending, dismissed or settled legal cases where any form of tort allegation has been made. The public policy issue was addressed in the CSC case and decided in that case, and the only acts of any Church of Scientology members that were found to provide a basis for questioning exempt status were the criminal activities of the Guardian’s Office. If Judge Sterrett did not find the allegations of Flynn’s clients, Wollersheim and the rest to be relevant, there can be no legal basis for considering the same kinds of allegations now.

The Church has addressed the Guardian’s Office both here (see responses to Questions 3.e, 10.a and 10.d) and in our prior response (responses to Questions 3.d and 10.d). The Church also addressed at some length the various kinds of other litigation Scientology-related organizations and individuals have been involved in (response to your prior Question 10.d). On this basis, the Church feels that it has adequately addressed public policy against the relevant legal authorities.

Public Policy As Applied to Other Churches:

The Service has enforced the public policy standard selectively, applying it only to the Church of Scientology and not to other churches to which it could just as easily, if not more appropriately, be applied. For example, for most of the past decade the Catholic Church has been embroiled in a major scandal arising from the exposure of an astonishingly large number of instances of child molestation involving Catholic priests. Copies of newspaper and magazine articles about this subject are attached as Exhibit III-10-O. A book published in October 1992, Lead Us Not Into Temptation by Jason Berry, states that between 1984 and 1992 four hundred Catholic priests in North America were reported for molesting children, and in this same period the Catholic Church has paid out $400 million to resolve these cases. The book further details how other Catholic officials, including many high in the Catholic hierarchy, have covered up what occurred or were guilty of complicity by knowing what was happening and ignoring it or reassigning a tainted priest to another job where he would still have contact with children. These are not merely cases where unproven allegations have been made; some of the cases resulted in criminal convictions of the priests involved. In the case of Father Gilbert Gauthe, for example, Father Gauthe pleaded guilty to 36 counts of child molestation while serving as a parish priest in Louisiana. The attempts to cover-up Father Gauthe’s crimes described in Jason Berry’s book spanned the Catholic hierarchy and included archbishops, bishops, other priests and directions and orders emanating from Rome. Thus a jury also awarded a verdict of $1.25 million to one of the victims and his family against the responsible Catholic diocese.

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We are not suggesting that the IRS should now investigate the Catholic Church or make a tax exemption issue out of an unfortunate scandal that should be dealt with in the criminal justice system. Rather, this example serves simply to illustrate the unfair double standard that has been applied to the Church of Scientology.

Nevertheless, the following is a description of the cases that were listed in our prior response, describing the allegations in those cases of commission of intentional torts or violations of criminal statutes.

Description of Tort Litigation:

The suits listed on pages 10-20 through 10-22 each have their own set of facts and assortment of claims, but for the most part are of the same general character. They involve frivolous claims by “crazies” who think they can make some money suing Scientology; suits against former spouses or business associates naming the Church to seek a tactical advantage; and a considerable number of suits inspired by the Cult Awareness Network, which bombards the person with negative information about the Church and then refers them to an attorney who tells them they can sue the Church and get rich. (See the “Introduction To Question 10″ for further information on CAN) . There are a few instances, like the Rabel case, where a stereo speaker fell from the window of a Scientology mission injuring someone walking below, where there was a valid claim which the Church equitably settled. Not one of the cases asked about in Question 3.e.1 has been adjudicated by a court; thus all the claims listed are unproven.

Because many of these suits are refund suits, it is useful first to review the Church’s refund policy. It has been a longstanding policy of the Church that if someone is dissatisfied with their Scientology services and asks to have their contributions returned within a three month period, these amounts will be returned. Likewise, if the person asks for return of contributions for which no services were received (i.e. an advance payment), there is no three month limitation period. Anyone newly enrolling in services at a Church of Scientology is informed of the policies and signs an agreement to abide by them. As a further condition of receiving a refund or repayment, the person understands that they may not again receive services from the Church.

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Within the Church, there are two separate terms: A “refund” refers to a return of contributions to a parishioner within 90 days of participating in religious services while a “repayment” refers to a return of a parishioner’s advance payment before he or she has participated in religious services. For simplicity, the following discussion will use the term “refund” to describe both types of transactions, because both involve a return of parishioner contributions.

The Church’s refund policy is exceedingly fair. If someone isn’t happy with Scientology — which is a very small minority of people — he simply has to make a proper request for his donations back, agree to forego further services and his donations will be returned. For the Church, in addition to the fact that this policy aligns with Scientology principles of exchange, it also serves the purpose of allowing our churches and the parishioners who are very happy with Scientology, to carry on without the unhappy few in their midst.

The presence of a considerable number of refund suits in the following list is directly related to the influence of CAN and CAN attorneys. As described in the “Introduction to Question 10,” CAN’s modus operandi is to seek out anyone who is unhappy with Scientology, feed them negative information and then refer them to an attorney. The CAN attorney then convinces the person that he can not only get a refund of his donations, but by allowing the attorney to handle the claim he can get damages as well, and possibly get rich. As will be seen in the descriptions of the cases that follow, almost one for one such suits are ultimately settled for the refund amount the person could have obtained in the first place simply by requesting it.

It is also of interest that we know of no suit filed for refund that wasn’t instigated by CAN. In fact, the Church rarely has any refund requests, by suit or otherwise, except when instigated by the IRS-sanctioned CAN. And in most cases, further discussion reveals the person was quite happy with his service at the Church and seeks his money back only after CAN has told him how “terrible” Scientology is.

Descriptions of individual suits follows:

Mira Chaikin v. Church of Scientology. L. Ron Hubbard. et al.: The following is from the judge’s ruling dismissing the case, which says all that needs to be said about this case:

“In this pro se complaint, which can most charitably be described as bizarre, plaintiff Mira Chaikin (‘Chaikin’) alleges that the various defendants are exploiting her, impersonating her and ‘implanting’ her.

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She alleges that because defendant Ron Hubbard has been ‘flowing to (her) sexually and romantically’ she is his ‘true wife,’ as well as ‘having been (his) wife in (her) last life who was murdered. ‘ Thus, she further alleges, defendant Mary Sue Hubbard is ‘in no way the wife of Lafayette Ron Hubbard ‘ but has merely been impersonating plaintiff with resulting severe endangerment of plaintiff’s mental health.

“As against the Church of Scientology, Chaikin appears to be claiming that the organization is acting contrary to its theoretical foundation. For the reasons set forth below, I dismiss the complaint.

“An action may be dismissed ‘when the allegations of the complaint are beyond credulity . . .’ [cite omitted]. I find plaintiff’s allegations, to the extent they are comprehensible at all, to be patently incredible.

Terry Dixon v. Church of Scientology Celebrity Center of Portland, et al.: This is a typical CAN-influenced suit for refund by Terry Dixon, which also asks for damages based on claims of breach of contract and breach of fiduciary duty. Dixon alleges that the Church of Scientology Celebrity Centre Portland, Church of Scientology of Portland and Church of Scientology Flag Service Org, breached a contract with him and their fiduciary duty, by failing to deliver to him results he considers to have been promised him from Scientology religious services. The suit was filed in December 1990.

Each of the three churches filed motions to abate the case pending arbitration, based on enrollment agreements signed by Dixon while he was in the Church, which include a clause that any disputes between the Church and the parishioner must be arbitrated. The judge ordered the case to arbitration and it has now been settled for the refund amount.

John Finucane, David Miller, Alexander Turbyne v. Emery Wilson Corporation, et al.: This suit was instigated directly by CAN and CAN attorney Toby Plevin. All of the plaintiffs are dentists who were clients of Sterling Management Systems (Emory Wilson Corporation) for a brief period of time and also briefly received some services from the Church of Scientology of Orange County. Sterling is a company that has been owned and run by Scientologists and uses methods of organizational administration developed by L. Ron Hubbard to help business people improve their businesses. Some of these individuals, upon being impressed with Mr. Hubbard’s works, have become interested in Scientology.

The lawsuit was filed in LA Superior Court on December 26, 1991 by Finucane, Miller, and Turbyne, who reside, respectively, in Aiken, South Carolina, Sacramento, California, and Sohigan, Maine,

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against Sterling and the Orange County Church. The complaint contains causes of action for deceptive trade practices, fraud, and injunctive relief, alleging that Sterling misrepresented itself to be an independent management training organization when, in fact, it was a part of the Church of Scientology and operated as a recruitment office for the Church with the goal of procuring new members and getting them to take Church services.

Miller and Turbyne settled their cases with the Church of Scientology of Orange County for a refund, but not with Sterling, leaving all plaintiffs with claims against Sterling, and only Finucane suing the Orange County Church. Finucane has so far refused offers from the Church to have his claim arbitrated as per the enrollment agreement he signed. The Church therefore filed a counter-claim and criminal complaint against Finucane relating to his breach of contract (his refusal to abide by the enrollment agreement) and invasion of privacy (for secretly tape-recording a conversation with a Church staff member and then broadcasting a heavily edited version of it on national television).

Dorothy Fuller, an individual v. Applied Scholastics International, et al.: This is another Toby Plevin, CAN instigated suit filed in April 1992. The claims are breach of lease, fraud and negligent misrepresentation. Applied Scholastics leased a residential property from Fuller who claims that the house was misused in several ways, including housing more people than agreed upon in the lease, use of the house as a child center, dormitory style living, and fabrication of products for resale. Thus it is a minor property dispute escalated by Plevin into tort litigation. It is expected that this suit will be quickly settled.

Lisa Stuart Halverson v. Church of Scientology Flag Service Organization, et al.: This was another suit for refund that CAN attorney Toby Plevin filed, alleging several torts for purposes of effect. The claims were for violation of the deceptive practices act and fraud, based on Halverson being told she could get a refund and then not being able to get it. The suit was settled for the refund amount.

Thomas and Carol Hutchinson v. Church of Scientology of Georgia, et al.: The complaint in this suit is virtually a carbon copy of the complaint in the Corydon case, one of the Michael Flynn cases listed at page 10-13 of our prior response. Although the Corydon case was settled, Hutchinson apparently got a copy of the complaint, very likely provided by CAN, and felt its inflammatory claims against a wide array of Church organizations would add spice to what is otherwise a suit for refund of money paid to the Church of Scientology of Georgia. The claims are stated as fraud and deceit and infliction of emotional distress, seeking unspecified damages and injunctive relief. However, the claims revolve around a core that the teachings of Scientology differ from those of

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Fundamentalist Christianity, a topic constitutionally barred from secular adjudication.

The Church anticipates dismissal of this suit, favorable summary judgment or settlement for a refund of the Hutchinson’s donations.

Mark Lewandowski v. Church of Scientology of Michigan, et al.: This suit was against the Church of Scientology of Michigan and two individuals, one former and one current staff member of the Michigan Church. Mark Lewandowski, who had previously been under psychiatric treatment with a substance abuse disability, took some courses at the Church of Scientology of Michigan in 1988. Although Lewandowski’s relationship with the Church was short, in his suit he alleges that the Church committed consumer fraud by failing to ascertain his unstable mental condition, fraud, for allegedly misrepresenting the nature of the courses he took, and intentional infliction of emotional distress through the above. The nature of Lewandowski’s claims and allegations strongly suggest that he was influenced to file suit by CAN.

This case went before a mediation panel where a settlement was accepted by the Lewandowski’s attorneys for a refund. The Church of Scientology of Michigan is in the process of paying this amount to end the suit.

Peter and Francis Miller v. Church of Scientology et al.: The suit was filed on April 29, 1991 by CAN attorney Toby Plevin against several organizations, including CSI, Church of Scientology Orange County and Sterling Management Systems. This suit makes claims not unlike those of the Finucane suit described above, that they were misled into Sterling and Scientology and therefore want their money back. The claims include fraud, breach of express and/or implied warranties, invasion of privacy, intentional infliction of emotional distress and negligence. The Millers’ claims against Sterling were arbitrated, with the millions the Millers originally claimed reduced to the refund amount. The case is still at the pleading stage as regards the Church parties.

Dee and Glover Rowe v. Church of Scientology of Orange County, et al.: This is another Toby Plevin/CAN suit naming the Church of Scientology of Orange County, RTC, CSI, the Sea Org and Does 1-100. It was filed on October 7, 1991, alleging fraud/deceptive trade practices, invasion of privacy, false imprisonment, assault, and intentional infliction of emotional distress. The suit essentially repeats the allegations made by the Rowes in the May 6, 1991 edition of Time magazine, that they took courses at Sterling Management Systems and allegedly under the guise of management training were induced to take Scientology services. Discovery in this case has demonstrated that the Rowe’s claims are contrived and maliciously false, and that these are people with a history of criminal activity. Glover Rowe embezzled

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money from a fraternity in college and Dee Rowe has a history of emotional turbulence starting long before any contact with any Scientology organization. One of their claims, which has already been dismissed on summary judgment, was that the Church bugged their hotel room. This was a completely fabricated claim as seen by the fact that the staff of the hotel testified that this was impossible and that the Rowes could “support” it only by stating without any proof that their room “must have been bugged.” It was not, a fact quickly recognized by the court. The Rowes were referred to Time magazine by CAN and continue to be encouraged by CAN.

Pretrial summary judgment motions are still being considered in this case and the Church expects all of the Rowe’s claims to be dismissed. The Church also expects to prevail on a counterclaim naming the Rowes and CAN defendants, for libel and breach of contract, and that by deprogramming the Rowes, CAN interfered with the Church’s relationship with the Rowes.

Frank and Joan Sanchez v. Sterling Management Systems, et al.: This is yet another CAN-inspired suit involving a dentist, Frank Sanchez and his wife, Joan Sanchez, filed against Sterling, the Church of Scientology of Orange County and IAS.

The Sanchezes attended a Sterling seminar at the end of October 1989, after which Sanchez asked Sterling to administer a program in his office. The Sanchezes went to the Church of Scientology of Orange County in December 1989 and were involved with the Church for less than a month. Sanchez wanted help with his marriage as he and his wife had marriage counseling over a twenty year period but it had been unable to straighten out problems arising from twenty years of adulterous affairs. Joanne Sanchez was opposed to the trip to Sterling and Orange County and went only because her husband wanted her to go.

The Sanchezes paid some money to Sterling and the Orange County Church, but then returned to New Mexico and refused further participation in any services at either Sterling or the Church, which would appear to have been directly caused by negative information provided them by CAN. Although the bottom line of what they are seeking is a refund of their money, their complaint asks for damages for breach of contract, intentional infliction of emotional distress, breach of covenant of good faith and fair dealing, for fraud and all the usual, boilerplate CAN allegations. The suit was dismissed with respect to the Orange County Church and it is expected that ultimately it will be settled for a repayment of the money they paid to Sterling.

Thomas Spencer v. The Church of Scientology, et al.: This suit was settled for a refund and dismissed on August 31, 1992. It was another suit for refund laced with the standard CAN claims,

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breach of contract, fraud, and intentional infliction of emotional distress.

Irene Zaferes v. Church of Scientology: This was a personal injury suit filed in April 11, 1989. The plaintiff was a Hollywood woman who claimed that a wrongful death occurred when her brother, Luke Andrea (a.k.a. Louis Zaferes) died on April 12, 1988, some months after he did some “heavy construction work” at the Church of Scientology Flag Service Org, while having a heart condition. Zaferes was acting as her own attorney. The case was dismissed.

Jo Ann Scrivano v. Church of Scientology of New York, et al.: Jo Ann Scrivano, had an extensive psychiatric history including the use of heavy psychiatric drugs, before she came to the Church of Scientology Mission of Long Island in January of 1986. After receiving a small amount of introductory level auditing for which she donated $450, Mrs. Scrivano became upset and blamed this on her auditing. She was offered her money back, but refused it and left. She subsequently filed a suit naming not just the Long Island Church but also a number Church organizations that had never heard of her. She even alleged an array of torts and sought $10,000,450 in damages. Her claims include Fraud, Constructive Trust, Breach of Fiduciary Duty, Malpractice, Negligence, and Intentional Infliction of Emotional Distress. None of these claims is true, and both Scrivano’s own attorneys and the judge assigned to the case have encouraged her to accept a token settlement offered by the Church just to get rid of the suit.

Marissa Alimata and Richard Wolfson v. Church of Scientology of California, etc., et al.: This case, of Marissa and Richard Wolfson, furnishes an excellent example of how any fruitcake can file a civil suit. The Wolfsons sued for $1 billion alleging intentional infliction of emotional distress and that the conduct of the Church was “outrageous, fraudulent, malicious, abusive, indecent, intentional, unduly influential, willful, wanton and beyond bounds of common human decency.” They claimed to have been subject to “undue influence” and to have suffered “violation of fiduciary relationship,” interference with prospective economic advantage, loss of consortium and fraud. Before winning summary judgment on all of the Wolfsons’ claims, the church was required to endure the public airing of delusional charges and suffer through such bizarre conduct as Mr. Wolfson appearing at his deposition dressed as Mrs. Wolfson.

Sherry Fortune v. Church of Scientology American Saint Hill Organization and Chuck Tingley: This case was brought by Sherry Fortune against the Church of Scientology American Saint Hill Organization and Chuck Tingley, her former husband, an independent contractor who had been a computer programmer at the Church. The case was essentially a domestic dispute between Fortune and Tingley that involved the rights to some computer software Tingley had developed. Fortune believed that naming the Church in her suit

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would give her additional leverage over her former husband so she alleged that the Church was guilty of intentional interference with economic advantage, fraud and misrepresentation, intentional infliction of emotional distress, and conversion. The frivolous claims against the Church were dismissed and Fortune and Tingley reached a settlement between them.

Gary and Susan Silcock v. Church of Scientology, Mission of Salt Lake, et al.: The Silcock’s received some religious services from the Church of Scientology Mission of Salt Lake in 1984 and then asked for a refund. The refund amounts requested were paid to the Silcocks and the suit was dismissed in September 1986.

Pedro H. Rimando and Irene Marshall v. The Church of Scientology of San Francisco, et al.: This suit was a suit brought by the parents of Rodney Rimando, a former Church staff member who committed suicide in November 1986 by jumping out of a window of a Church of Scientology building. The suit’s claims were wrongful death, intentional infliction of emotional distress, negligence, and outrageous conduct. The suit claimed that Rimando came to the Church of Scientology of San Francisco for spiritual guidance and that no precautions were taken to prevent his suicide or see that he got psychiatric help. This suit only came about because a CAN attorney incited the parents to file it. The parents did not really believe the Church to be responsible for their son’s suicide. The suit was never served and was voluntarily dismissed with prejudice.

Wendy and William Rabel v. Eric Rising, Jane Doe Rising, Church of Scientology Mission of University Way, et al.: As described previously, this suit involved an incident where a stereo speaker placed in the window of the University Way Mission in Seattle, Washington fell out of the window and struck Wendy Rabel on the head. A settlement payment was negotiated and the case was dismissed in January 1988.

Francine Necochea, a minor child, by her Guardian Ad Litem Cecilia Garcia v. Church of Scientology, et al.: This was an insurance suit dealing with an incident in 1983 when a girl on a motorized bike hit a Golden Era Studios Bus. She sustained a broken leg and other minor injuries. The girl’s family sued the Church and the Church’s insurance company handled the case and settled it for $5,000.

Roxanne Friend v. Church of Scientology International, et al.: Some background leading up to the filing of this suit will help make it understandable.

Shortly after breaking away from the Church of Scientology, Roxanne Friend became romantically involved with a non-Scientologist. After an on-again, off-again relationship, they

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finally broke off the relationship in August 1989. For months after this Friend experienced what she later characterized on a medical questionnaire as a “nervous breakdown.”

Documents authenticated by Friend in her own hand illustrate her state of mind during this period, and outline the series of bizarre and violent acts that she admits were preceded and prompted by the break-up with her non-Scientologist boyfriend. She first secretly absconded with her former boyfriend’s young son and molested him sexually. She next tried to persuade a karate instructor to murder her former boyfriend. Failing this, she wrote letters to the ex-boyfriend claiming that he had drugged, hypnotized and forced her to perform lewd sexual acts for he and his friends. When all of this further alienated the man, her conduct became more bizarre. She scrubbed her mare’s vagina with bleach causing the animal severe pain and then physically assaulted and injured the proprietor of the stable when she tried to intercede on behalf of the horse. A bit later Friend was stopped for dangerous reckless driving and resisted arrest by assaulting a police officer.

Church staff who knew Friend and Friend’s brother, nonetheless attempted to help by taking her to doctors in Los Angeles and then escorting her to Florida to be in a less stressful environment where she could also be examined by doctors. Once in Florida, Friend refused help, and went to the police with the hallucinatory claim that someone put crack cocaine in her cigarettes to account for her bizarre behavior. She was taken to a hospital at her insistence. The Church attempted to get her to submit to a full medical examination, knowing that most such behavior episodes are initially prompted by some undetected and untreated physical ailment. Friend refused.

Friend was then taken to her mother along with a written recommendation from the Church that she receive a full medical examination.

Friend’s mother ignored the recommendation and Friend was later arrested, incarcerated in a mental hospital and sent for counselling at a Jewish support group. A psychiatrist at that group turned her over to the Cult Awareness Network (CAN). As they do in every such case, CAN promptly pumped Friend full of false and derogatory information about the Church and turned her over to their attorney Plevin. Up to that point, when CAN became involved, Friend had never considered the efforts of the Church members to help her as anything other than help, and despite her agitated state, had never accused the Church of causing the condition — indeed she recognized that the break-up of her ill-fated romance was what brought it on. After being manipulated by CAN, however, Friend decided the Church was to blame and should pay her damages.

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Months after the Church had its last communication with Friend, she finally received two medical examinations. The first found nothing wrong with her. The second found that she had a large lump in her abdomen and it was diagnosed as a very rare form of cancer. Friend’s CAN attorneys, the same attorneys who had represented the Aznarans (see description of the Aznaran litigation in the response to your prior Question 10.d) considered this the next best thing to a plane crash, and suddenly saw in Friend the prospect of a circus trial with a dying woman to play on the emotions of a jury. Her attorneys rushed to court with a lawsuit that claimed the Church was responsible for her cancer not being earlier detected by not allowing her to see a doctor, and that all her psychotic episodes stemmed from this undetected physical condition. The attorneys characterized the efforts of Church members to help her as examples of assault and battery, wrongful imprisonment, invasion of privacy and intentional infliction of emotional distress. The suit also claimed the Church was guilty of fraud and false advertising and breached express and implied covenants in representing it would refund money to those not satisfied but then failing to do so.

These claims were completely unfounded as discovery proved that Friend had seen many doctors on a regular basis during the period that she was at the Church, both at the Church’s direction and on her own, and thus the Church took the appropriate measures to see that she got the care and diagnosis needed. Her own doctor testified that the type of cancer Friend contracted was very rare and virtually undetectable by modern medical science until well developed and spread. The doctor testified that the only way to detect such cancer was for the patient to complain of a lump and then have a biopsy performed. Friend subsequently testified that she had felt a lump developing for two years, but never mentioned it during that time to the several doctors she did see.

The Church settled this case for nuisance value, for less than the cost of a trial, even if the Church prevailed. David Miscavige met with Friend in settlement talks as he was concerned that her attorneys would leave her destitute when doctor reports were submitted in court stating she only had several months left to live. Once settlement terms were generally agreed upon, the first thing Friend did was ask whether if she miraculously recovered, could she get back into the Church and take services. Thus, in the final analysis Friend herself acknowledged that her frightening claims against the Church were contrived.

To our knowledge, despite the claims that were made by Friend and her attorneys of imminent death, she is still alive.

Bruce and Lynnel Arbuckle v. Skip Pagel M.D., Church of Scientology Celebrity Center Portland, et al.: This suit was brought by the parents of Chris Arbuckle, a former Church

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parishioner, who died of kidney failure. The suit’s claims were wrongful death against Scientologist Dr. Skip Pagel and the Tuality Community Hospital, and breach of fiduciary duty against the Church of Scientology Celebrity Centre Portland, Church of Scientology of Portland and Church of Scientology Mission of Fairfax. Arbuckle, a 25-year-old chiropractor, participated in the Purification Rundown after first receiving a physical examination by Dr. Pagel. Subsequent to this Arbuckle died, in August of 1986, of a heart attack resulting from a kidney failure which followed a dying liver, with the cause of the dying liver attributed to “probably hepatitis” on the death certificate. The complaint alleged that the Purification Rundown caused this to occur. What was found on further examination was that Arbuckle was known to be abusing steroids for body building purposes, that he had undergone a bout of hepatitis prior to doing the Purification Rundown (which he did not disclose to Dr. Pagel), and that a pathologist familiar with Arbuckle’s death stated that his liver died as a result of Hepatitis B, and that there was no way the Purification RD could have caused this to occur. The suit was settled and dismissed in August 1990.

In re Dynamic Publications Inc.: Dynamic Publications was a company owned by two now-expelled former Scientologists, who filed for bankruptcy in early 1987 in United States Bankruptcy Court for the District of Maryland. The trustee in bankruptcy, appointed by the court to collect all the assets of the company, determined that these individuals had made donations to Churches of Scientology and Scientology-related organizations through the company and sought to get some of this money back as having been fraudulently conveyed when the company was in debt. The suit was settled in January of 1991.

Ted Patrick, et al. v. Church of Scientology of Portland, et al.: The Church of Scientology of Portland filed a suit against the deprogrammers of Julie Christofferson in September, 1980, suing them for barratry and practicing medicine without license. Ted Patrick, a convicted felon, was one of the deprogrammers. He filed a counterclaim in September 1980 alleging abuse of process and claiming that the Church’s suit was frivolous and vexatious. The attorney on the suit was an associate of Michael Flynn associate. The counter-suit was ultimately dismissed.

Gregory F. Henderson v. A Brilliant Film Company, et al. and Gregory F. Henderson v. Marvin Price, et al.: Henderson had a contract with Brilliant Film Company to shoot a movie written by L. Ron Hubbard. Brilliant Film went bankrupt and Henderson filed suit on May 14, 1982 against a series of defendants, including L. Ron Hubbard. It raised financial claims and also that there had been a conspiracy to induce Henderson to agree to a loan that would not be repaid and to keep him from pursuing his legal remedies. He

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also filed a second suit, against Marvin Price, an ex-Scientologist who had was the mission holder of the Church of Scientology Mission of Stockton stating claims for negligent misrepresentation, fraud, breach of fiduciary relationship and conspiracy to defraud. The suit with Brilliant Film Company was settled and the other suit was then dismissed with prejudice in July 1984.

Peter Siegel v. Religious Technology Center, et al.: Peter Siegel is a “sports hypnotherapist”, doing business as “Achievement Plus Institute”. Siegel used a logo similar to a trademark owned by RTC. Attempts were made prior to litigation to settle Siegel’s confusion as to the ownership of the mark, which was registered by RTC in December 9, 1986, and to obviate the need for litigation. Siegel was uncooperative in this and RTC and CSI filed suit. Siegel filed a pro per cross-complaint on December 20, 1989 for registration of the mark in his name, cancellation of RTC’s registration, trademark infringement, intentional infliction of emotional distress and revocation of RTC and CSI’s tax-exempt status. Siegel has no valid claim to this trademark and RTC’s summary judgment motion is presently pending. Although Toby Plevin   came in at the last minute to represent the defendant at the summary judgment hearing, the court, after hearing her argument, told Plaintiff’s counsel to propose an order on the summary judgment motion to be written from the viewpoint that the court was ruling in Plaintiff’s favor. The court has also asked for more detailed information concerning RTC’s pending motion for attorneys’ fees.

Steve Dunning v. Church of Scientology, et al.: Dunning was a Church staff member for three months in 1983 and came and went for very brief periods after that. He is currently in a half way house for psychiatric patients where he committed himself because he could not function in the outside world, has an outstandingwarrant for his arrest in North Carolina for assault with a deadly weapon and another arrest for threatening someone with a knife. He filed a suit against the Church asking for over $5 billion claiming breach of contract, breach of implied covenant of good faith and fair dealing claims, fraud and intentional infliction of emotional distress. The suit was completely groundless and it was dismissed in favor of the Church in August 1987 when Dunning failed to appear at the hearing on the Church’s Motion for Entry of Final Judgment.

Jeff and Arlene Dubron v. Church of Scientology International, et al.: This suit which named 21 defendants and 50 “John Doe” defendants, alleged claims of defamation, invasion of privacy, outrageous conduct, and negligent infliction of emotional distress. The suit stemmed out of an incident where some Church staff posted a notice around Scientology churches calling for Scientologists to report unethical conduct and used some facts concerning Dubron as an example. The suit was voluntarily dismissed.

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Vicki Adler v. American Sun, Inc., Church of Scientology of Los Angeles: This suit alleged emotional distress as a result of Adler’s alleged brainwashing by American Sun, a business owned and operated by several Scientologists. The suit was essentially an employment dispute between Adler and American Sun where Adler made Scientology an issue to intimidate the company. The suit was settled and dismissed in 1988.

Benham v. Church of Scientology Celebrity Center of Dallas This was a personal injury case in Dallas, Texas. Vicki Benham alleged that she was injured while on the Purification Rundown and that she had emotional distress. The case was settled in 1991 for a refund and nominal nuisance fee which was paid by the insurance company.

Michael Burns v. The Recording Institute of Detroit, Inc., et al.: This case was filed on July 25, 1991 against the Church of Scientology of Michigan, Church of Scientology Flag Service Org and several individual Scientologists, and a recording school owned by a Scientologist. Burns claimed that he was subjected to mind control by the Scientologist from the recording school and that this induced Burns to become involved with Scientology and join Church staff, which prevented him from pursuing his studies in the recording field. The case alleged fraud, breach of contract, intentional interference with a contractual relationship, intentional infliction with emotional distress, and conspiracy. The suit has no merit and is expected to be dismissed shortly.

Clay Eberle and Eberle & Jordan Law Firm v. Church of Scientology of California: Eberle is an attorney who formerly represented refund/repayment claimants suing the Church. His suit alleges that he was damaged when CSC settled directly with some of the claimants as the claimants then did not pay him attorneys’ fees. In April 1988, the Court granted the Church’s summary judgment motion dismissing the case and ruled that there was a qualified privilege for the Church to deal directly with its former members notwithstanding the retention of an attorney by the former member, and there was no evidence that the Church intended for the persons to breach their attorney/client contracts with Eberle, and no evidence that the Church caused the attorney/client contracts to be breached.

Mario Metellus v. Church of Scientology of New York, and Linda Barragan: Metellus was a non-Church member who responded to an advertisement placed by the New York Church for part-time help. After working less than a day, on November 29, 1989 he was dismissed. Metellus refused to leave and the police had to be called in to remove him from the premises. Metellus even refused to respond to the police officer’s directions to leave and

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was arrested. When Metellus refused to allow the police to take his fingerprints, he was held in custody. The complaint, claimed that Metellus was falsely accused of criminal trespassing and falsely arrested. Metellus also sued the City of New York. The complaint against the New York Church was settled for a nominal amount.

Subparagraph 10.e(ii)

In this subparagraph, the Service has asked for a copy of any verdict, decision or judicial finding that any Scientology-related organization or individual was involved in the commission of an intentional tort or violation of criminal law. Copies of these documents are attached as Exhibit 10-P. There were verdicts, or decisions with judicial findings of intentional torts in only four of the cases discussed on the pages of the prior submission referenced in this question, and all of these cases were discussed in the response to Question 4.d of the Service’s May letter — the Stifler case, the Christofferson case, the Wollersheim case, and the Armstrong case, discussed at pages 10-12; 10-15 to 10-16; 10-16; and, 10-12 respectively, of our prior response.

The Service has asked the Church to state whether it agrees with the findings of the Courts in each of the above decisions. The Church’s response to this part of the question follows:

Lawrence Stifler v. Church of Scientology of Boston:

The Stifler case was, for all practical purposes, won by the Church, as the only money judgment in the case was entered against an individual Church member for $979 in medical bills. This was one of Michael Flynn’s stable of cases described in our prior response at 10-12. Lawrence Stifler accosted a staff member of the Boston Church, Roger Sylvester, on the streets of Boston, Massachussetts in the early 1980’s. Stifler verbally abused Sylvester for attempting to disseminate his religion. Both men lost their tempers and came to blows. As a result of the altercation Stifler suffered a minor injury to his knee. Stifler filed suit claiming $4,250,000 in damages.

During the 1984 trial, Flynn attempted to show that the altercation was part of a nefarious Church of Scientology scheme. Flynn sought to introduce his standard retinue of professional anti-Church witnesses in order to reap a large punitive damages award. The Court refused to go along with this charade, bifurcated the Boston and California Churches from the trial and prohibited Flynn from introducing any of his general Scientology issues or “evidence.”

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Stifler claimed to have suffered major trauma to his knee which had permanently incapacitated him. Yet, when the evidence was presented at the trial, the defense showed that whatever injuries he may have suffered at the time of the altercation with Sylvester were extremely minor. Evidence supporting this defense included photographs of Stifler engaging in competitive stair climbing up skyscrapers at the very time he claimed to be incapacitated. The jury awarded a mere $979.00 against Sylvester to cover Stifler’s medical costs, and the Church defendants were dismissed from the case.

The Church disagrees with the fact that Stifler was awarded any money at all. The Church agrees with the dismissal of the Church of Scientology of Boston and the Church of Scientology of California from the case.

Church of Scientology v. Gerald Armstrong:

We have included some background information here and an epilogue to the decision in question. That is because the Service has continuously thrust the Armstrong case at us, demanding an explanation. The Armstrong case decision was so inflammatory and intemperate that it was used to stigmatize the Church in the legal arena and make other outrageous decisions possible. As we shall demonstrate below, all this decision ever involved was Armstrong’s state of mind, which subsequently obtained evidence proved conclusively to be one sordid, sado-masochistic nightmare. Furthermore, Armstrong’s state of mind horror stories have fallen on deaf ears in recent litigation. Relying on Armstrong or the Armstrong decision is wholly unjustified.

During the later years of his tenure as an employee of the Church, Gerald Armstrong was placed in charge of a huge quantity of documents that belonged to Mr. Hubbard that contained private and personal information regarding Mr. Hubbard. Part of his duties included research to support the work of an author who had been retained to write an authorized biography of Mr. Hubbard.

In late 1981 after the initial clean out of the higher levels of the Guardian’s Office, and when investigations were turning toward identifying those in alliance or sympathy with the GO, Armstrong suddenly vacated Church premises and left its employ, taking with him huge numbers of confidential documents that belonged to Mr. Hubbard or his wife which the Church was holding as bailee. It was no coincidence that Armstrong left at that time because he had repeatedly expressed his ambition to join the GO and work in Bureau 1 (Information Bureau), the same area of GO that had been responsible for the criminal acts of the 70’s. Armstrong also had been a long-time friend and confidant of Laurel Sullivan. Just prior to the take over the GO taking place, Sullivan had made a

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proposal to place convicted GO members into corporate positions of control throughout the top of the ecclesiastical hierarchy. She was also found to be spying on the CMO for the GO during the early days of the CMO’s investigation into the GO. Armstrong assisted and supported Sullivan in her efforts.

In the summer of 1982 the Church received evidence that Armstrong had stolen thousands of documents from archives when he left the Church. Church counsel wrote to Armstrong, demanding that he return them. Armstrong denied the theft.

Once the demand for return of documents was made, Armstrong turned the stolen documents over to Michael Flynn, with whom Armstrong decided he could make a lot of money.

In August 1982, the Church sued Armstrong for conversion, breach of fiduciary duty and confidence, and invasion of privacy based on Armstrong’s theft of extensive amounts of private papers owned by the Church or the Hubbards. The Church sought return of the papers and the imposition of a constructive trust over them, and any proceeds derived from them, as well as preliminary and permanent injunctive relief against dissemination or disclosure of the private documents.

In September 1982, Armstrong, represented by Flynn, answered the complaint and raised the defense that he was justified in stealing the documents entrusted to him as a fiduciary because he wished to make public information about Mr. Hubbard and the Church out of fear for his safety and well-being. His defense was stricken on four different occasions by three different judges.

In April 1984, the case was assigned for trial before Judge Paul Breckenridge, Jr. At that time, the Church presented motions in limine to prevent Armstrong from introducing the stolen, confidential documents since their introduction into evidence would vitiate the very rights of privacy the action sought to protect. The Court not only allowed Armstrong to introduce the confidential documents, but also allowed him to raise his four-times stricken defense with a new perverted twist. He would not have to prove there was anything to fear from the Church, but only his state of mind when he stole the documents. The Church was completely ambushed in the trial by these documents, as in most cases Armstrong had stolen the only copy that existed. Then, after he and Flynn had ample time to prepare their case from them, the documents were placed under seal in the Court. Although the inflammatory allegations that Armstrong made and purported to support with these docments could have been shown to be false or grossly distorted by other evidence, the Church had no chance to prepare and put on that evidence before being hit with the documents in court.

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During the trial, Armstrong presented testimony from numerous witnesses who testified for the purpose of establishing Armstrong’s supposed “state of mind” with regard to his alleged justification for stealing the documents. Each of the witnesses was hostile to the Church and, in fact, was a plaintiff against or taking a position adverse to the Church in other litigation in which Flynn was the counsel. Each witness gave general testimony about his or her own viewpoint on relationships with the Church in an effort to bolster Armstrong’s state of mind justification defense.

The Court did not allow the Church to put on evidence to rebut the testimony of those witnesses. The Court also declined to allow the Church to put on evidence explaining the confidential documents and precluded the Church’s proffered rebuttal evidence on the ground that the adverse testimony was admitted only for the purpose of establishing Armstrong’s state of mind and not for the truth or falsity of the matter testified about.

On July 20, 1984, Judge Breckenridge issued a Statement of Intended Decision which became final a month later, which held that the Church had “made out a prima facie case of conversion…, breach of fiduciary duty, and breach of confidence” (as the former employer who provided confidential materials to its then employee for certain specific purposes, which the employee later used for other purposes to employer’s detriment). Judgment, however, was entered in favor of Armstrong. The Statement of Decision adopted as the facts of the case the allegations which Armstrong had made in his trial brief. These allegations included the statements on which Armstrong premised his justification defense; i.e., that defendant “… became terrified and feared that his life and the life of his wife were in danger, and he also feared he would be the target of costly and harassing lawsuits.” The judge went on to pontificate on the psychological mind-set of not only Mr. Hubbard, but Scientology at large. The only lawsuit that there was to fear was the one that was ultimately filed for return of the stolen documents. It never would have been brought had Armstrong voluntarily returned the documents when asked, despite the theft.

The IRS CID, however, absorbed Breckenridge’s findings as the definitive statement of what Scientology is, and used this decision and the Flynn witnesses who testified at the trial as the nucleus of their investigation. The Church tried repeatedly to explain to the IRS that the Armstrong decision was nothing more than a statement concerning Armstrong’s state of mind. The CID and EO weren’t interested, as they found in Armstrong a kindred spirit who echoed their own sentiments. They therefore embraced Armstrong and the Flynn witnesses and used their fabrications as the basis for their investigations and denials of exemption.

Evidence found after the Armstrong trial proves not only that Armstrong never was afraid of the Church as he claimed at trial,

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but that he was engineering a plan to infiltrate and take over the Church at the behest of the CID.

Shortly after the trial, Armstrong’s conspiracy against the Church surfaced when he sought, at the behest of IRS CID agents Al Lipkin and Phillip Xanthos, to recruit Church employees and organize them against the Church. To this end Armstrong contacted a Church member and former friend to enlist his aid in recruiting a group of dissident Scientologists to overthrow Church management. After this individual, however, informed the Church of Armstrong’s plan, it obtained permission from the Los Angeles Police Department to conduct undercover surveillance of Armstrong. The Church then used two “undercover” persons to collect evidence of Armstrong’s machinations.

Videotaped conversations show that Armstrong intended to recruit additional persons to create “as much shit for the organization as possible.” Armstrong intended to foster this plan by creating sham lawsuits against the Church, seeding the Church’s files with forged and “incriminating” documents which would then be seized in a raid by the Internal Revenue Service as part of the then ongoing CID investigation, taking control of the Church after such a raid, and lying under oath to prevent discovery and to protect Armstrong’s co-conspirators.

Armstrong admitted on videotape that there was no basis in fact for his justification defense since he had no fear that anyone associated with the Church could or would harm him. Speaking with an undercover operative known to Armstrong as “Joey,” Armstrong revealed his “justification” defense for the fraud it was, and that his only “fear” was that his conspiratorial plans would be discovered:

JOEY: Well, you’re not hiding!

ARMSTRONG: Huh?

JOEY: You’re not hiding.

ARMSTRONG: Fuck no! And. . .

JOEY: You’re not afraid, are you?

ARMSTRONG: No! And that’s why I’m in a fucking stronger position than they are!

JOEY: How’s that?

ARMSTRONG: Why, I’ll bring them to their knees!

(Exhibit 10-Q).

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Armstrong requested that the undercover persons give him Church documents so that he could forge documents in the same style. In particularly revealing language with respect to the documents he stole and later relied on at trial, Armstrong stated with respect to forgeries that he can “create documents with relative ease” because he “did it for a living.” (Exhibit III-10-Q).2

Armstrong then planned to “plant” forged, incriminating documents in the Church’s files so that those documents could be later discovered and used to discredit the Church. Armstrong planned to “tip off” investigators for the Criminal Investigations Division of the Internal Revenue Service once the phony documents were safely planted so that they could be “discovered” in a later IRS raid.

JOEY: (Laughs) Great, so what kind of stuff are we going to want to create and who’s going to get it?

ARMSTRONG: That’s what we need to talk about!

* * *

JOEY: — and what do the agencies want on this?

ARMSTRONG: O.K. Well, the agencies have asked for some specific things, that’s all they asked for. Now – – * * *

JOEY: Now, who wanted this?

ARMSTRONG: CID.

(Exhibit III-10-Q).

The videotapes also reveal Armstrong’s true motivations and his systematic and fraudulent sabotage of the trial. Armstrong stated he would bring the Church to its knees and that the fomentation of litigation was one of the prime vehicles for accomplishing this objective. He stated:

ARMSTRONG: That they’re going to lose in a whole bunch of jurisdictions. They’re going to lose, they’re going to lose, they’re going to lose (tapping his palm each time he said it). And they’re going to start losing (shrugs) 1985. They only even have to lose one, and attorneys all over the country are going to jump on the fucking bandwagon. And watch, you know, all of a sudden you’ve got precedents being established, which are incredible.

(Exhibit III-10-Q).

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Armstrong further explained that, from his perspective, neither the truth nor good faith play any significant role in litigation. He instructed the undercover Church member that facts mean nothing to a civil litigant and that truth is merely an avoidable obstacle. Armstrong explained how a civil claim can be pursued despite an absence of a claim or essential facts:

ARMSTRONG: They can allege it. They can allege it. They don’t even have — they can allege it.

MIKE: So they don’t even have to have the document sitting in front of them and then —

ARMSTRONG: Fucking say the organization destroys the documents

* * *

ARMSTRONG: Where are the — we don’t have to prove a goddam thing. We don’t have to prove shit; we just have to allege it.

(Exhibit III-10-Q).3

As to Armstrong’s “dedication to the truth,” for which he is complimented in the trial court’s decision, Armstrong took the opportunity to instruct both “Joey” and “Mike” separately on the need and desirability of lying under oath:

ARMSTRONG: . . . . By the way, no one will ever get any names, any communications, any times, any dates or anything out of me, that’s just the way it is. I’ll go to prison before I ever talk, okay. So you have to know that, because they’re wanting to depose me every couple of months. I’m simply saying no, anyone I talked to that’s, that has nothing whatsoever to do with this lawsuit, the causes of action in my lawsuit began in 1969 when I was enticed into the Sea Organization and it ended in 1981, or they actually they continue on because you guys have continued to harass me but you…

MIKE: Not us, hey!

ARMSTRONG: No, I’m telling you what I would tell them in deposition, but they don’t get anything else, go ahead.

MIKE: Okay, so that, that’s fine, we have an agreement on that point.

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ARMSTRONG: Right. And you guys also have to have your agreements marked out between yourselves too, like, I don’t know who knows I’m involved but, I’ll deny it!

MIKE: Okay, well, we haven’t said anything either.

ARMSTRONG: Good, Good.

(Exhibit III-10-Q).

Armstrong was even more direct in discussing the fine points of perjury when speaking with Joey:

ARMSTRONG: OK. What are our conversations, should it come down to it?

JOEY: What do you mean?

ARMSTRONG: What do we talk about. You’re deposed. You walk out there, and there’s a PI hands you paper, saying you’re deposed Jack, and not only that, you’re out of the organization. And what do you say in deposition. Well,Armstrong and I talked about this, and he had a whole bunch of ideas about how to infiltrate the communication lines and spread turmoil and disaster, you know! What are we doing here? That’s my question, before I tell you my ideas on documents.

* * * *

ARMSTRONG: OK. So as far as the doc… Let me just say ah, you and I get together, we get together because I have a goal of global settlement. You have felt that the turmoil and abuses and so on have gone on too long… Hence we get together and discuss things. We have not discussed anything about a destruction of the tech, or Scientology is bad, or anything like that. Are we agreed?

JOEY: Yeah.

(Exhibit III-10-Q).

The evidence shows Armstrong’s state of mind, not to be fear, but instead to be of a calculating, aggressive and dishonest character.

Armstrong’s own writings illustrate Armstrong’s state of mind to be sickly and twisted. Attached are two examples of Armstrong’s writings illustrating Armstrong’s psychosis and his plan to entrap a senior Scientologist in a compromising sexual situation, as previously presented but not provided to the Service. (Exhibits III-10-R and III-10-S).

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We do not enjoy even reading much less repeating Armstrong’s demented ramblings. However, we have tried to explain to the IRS at every level that the Armstrong decision only stood for what Armstrong’s feigned state of mind was during the trial. Yet, the allegations kept getting raised for us to have to deal with as some sort of fact. And they are being raised here again.

The Armstrong case was reviewed by the California Court of Appeal in summer 1991. The Court of Appeal refused to accept the evidence that the Church had discovered after the trial as outlined above, on the technicality that the trial court never got to see it first (an impossibility since it was obtained after the trial). The Court of Appeal upheld Breckenridge’s decision on the legal technicality that it believed a justification defense is available to defend against theft in California. As to the Church’s protest to the gratuitous and condemning language of the Armstrong decision, the Court of Appeal ruled there was not a problem of stigmatization because Breckenridge was only reciting Armstrong’s purported state of mind – exactly what we had been telling the IRS from 1984 to this writing.

In December 1986, Armstrong entered into a settlement agreement with the Church as part of the overall Flynn case settlement. The agreement was designed to resolve all present and future issues between the parties. Armstrong agreed not to insert himself into future legal proceedings regarding the Church absent legal process. Within a short time after receiving the Church’s money, however, Armstrong embarked on a course of conduct in direct, intentional violation of that agreement.

Upon entering into the agreement, Armstrong acknowledged that he understood the provisions of the settlement and had received legal advice thereon. Armstrong now states, however, that he found these provisions to be “not worth the paper they were printed on.” He now says that he “put on a happy face” and “went through the charade” of signing the settlement agreement. The Church recently sued Armstrong for his blatant disregard of his obligations under the settlement agreement. After a full hearing, in which Armstrong was able to fully air his “justification defense”, essentially replaying his 1984 case, another Superior Court Judge was not impressed and slapped Armstrong with a preliminary injunction. So, history has proven Breckenridge wrong. Armstrong is anything but frightened. As he so clearly said – “just allege it.”

There is a compelling body of evidence that suggests that Armstrong case was manufactured and arranged by the IRS prior to it even going to trial. The following is brief synopsis of some of that evidence:

– The IRS was part of Armstrong’s attorney Flynn’s FAMCO plan from the very beginning. FAMCO documents disclosed plans to create

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“Federal and State attacks” with the objective of “closing orgs”. Flynn conducted a FAMCO conference in May 1981 that included “representatives of Internal Revenue Service”

– The IRS was the recipient of attorney-client privileged audio-taped conferences that were stolen by Armstrong. The IRS pleaded at one point during the US v. Zolin proceedings (see more about this below) that they had received a copy of the tapes from a “confidential informant” whom they refused to identify. This revelation shows the CID had a very strong vested interest in Armstrong being found justified, after they were in receipt of stolen property. This is evidence of motive for tampering with the outcome of the Armstrong case. It also explains their conduct in illegally and secretly obtaining a “legitimate” copy of the tapes from the Superior Court after the Breckenridge decision had been rendered.

– Despite the fact that communication with the IRS or any other federal agency was never an issue in the Armstrong case, Breckenridge’s ruling inexplicably invited Armstrong to discuss the contents of the sealed archives documents, and share them, with “any duly constituted Governmental Law Enforcement Agency”.

– During post trial proceedings, Armstrong’s counsel let slip a mention to Judge Breckenridge that “The IRS is interested, as the court probably knows. An investigation is ongoing right now with respect to the IRS criminal office concerning the testimony in this case and the evidence that was introduced at trial.” However, the Church knew of no such investigation and was not informed of such for 2 months. In fact, the CID to this day claims the investigation did not begin until July. Apparently, the IRS saw fit to inform Armstrong, his attorneys, and a sitting Judge about their investigation before informing the Church or the individual targets. The only explanation for this is ex parte communication with the judge on the part of the IRS to the exclusion of the Church.

– Discovery in the Canadian case revealed that Armstrong’s video taped statements concerning Flynn, the IRS CID and the Ontario Provincial Police (OPP) actively conspiring to create the “collapse” of the Scientology religion were borne out. Detective Ciampini’s notes revealed constant communication with Armstrong, Flynn, and LA CID agents. The CID agents travelled to Canada in late 1984 to coordinate. Canadian documents and agent testimony also revealed that Ciampini and his associates travelled to LA to coordinate with Armstrong and LA IRS in April 1984 – one month BEFORE the Armstrong trial.

– The CID’s own Special Agent’s Report of May, 1985 also corroborated that they were working in alignment with the FAMCO plan and Armstrong’s video taped aims. The report stated that the

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objective of the investigation was to cause the “ultimate halt” to and “final disintegration” of the Church of Scientology.

– In the David Miscavige v. IRS FOIA case covering the IRS CID files, the IRS has strenuously evaded acknowledging the name of a single informant, despite the fact Mr. Miscavige has provided public documents irrefutably proving two dozen of them are Flynn clients. In fact, every single witness for Armstrong was an IRS CID informant. The CID has gone so far as to knowingly file a forged document in order to prejudice the court in the effort to prevent the disclosure of any documents generated by informant contacts.

– LA CID agents have sworn under oath several times that the CID investigation started as the result of a 11 July, 1984 New York Times story that covered the Armstrong case. Yet, the New York Times story itself quoted an IRS spokesman as claiming the “Internal Revenue Service has been investigating Mr. Hubbard’s financial arrangement with the Church of Scientology for more than a year.”

– On Sept 26, 1984 David Miscavige met with several high ranking IRS officials in Washington D.C. including Al Winbourne, Charles Rumph, Joe Tedesco, Marvin Friendlander, and Bill Connet, to answer to allegations made in the New York Times article since that was what purportedly caused the CID investigation. When Mr. Miscavige began by asking how the NY Times article could be the impetus for the CID investigation when the same article states it has been going on for a year, none of the IRS personnel could answer and in fact ended the entire discussion on the article – yet an explanation of the article is precisely why they asked for someone to attend this meeting.

CID agents continuously dispute evidence that their investigation began earlier than the 11 July, 1984 New York Times article. If the investigation started before 11 July, then it would clearly show there was no “reason” for it, other than the reason that has been clearly emerging in evidence obtained through discovery in Canada, and in FOIA cases – to wit, the CID started the investigation much earlier, orchestrated the Armstrong case and N.Y. Times article as a pretext to justify their concerns, with the aim to bring about the “final halt” to and “ultimate disintegration” of Scientology.

The Church contends the 1984 Armstrong decision was brought about by IRS agents illegally working in collusion with private litigants. The Church vigorously disagrees with the 1984 decision and with Judge Breckenridge’s observations about Scientology. The Church agrees with the 1992 Armstrong decision preliminarily

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enjoining him from injecting himself into other private and government actions concerning the Church.

—————-

Among the fall-out from the Armstrong case has been litigation for most of the past decade over the IRS’s use of some of the fruits of Armstrong’s theft. In addition to Mr. Hubbard’s private and personal papers, Armstrong stole a tape made of a GO attorney conference in 1980. This conference was attended by Laurel Sullivan (later an IRS informant) who headed a project called Mission Corporate Category Sort Out (MCCS). The purpose of MCCS was to align the Church’s corporate structure with its expanding ecclesiastical hierarchy. MCCS was disbanded in early 1981, coincident with the overthrow and disbandment of the GO, when it was learned that Sullivan was attempting to place some of the indicted GO criminals in high corporate positions and also in control over the trade and service marks of Dianetics and Scientology.

The IRS gained illegal possession of these tapes through a secret summons served on clerk the Superior Court (Frank Zolin) without notice to the Church. A Federal Court later ruled the IRS must return the tapes back to their sealed position in the Superior Court. In defiance of the court order, the IRS made a copy of the tapes, transcribed them, and sent the transcripts to IRS agents around the country. Several CID and EO agents working on Church cases fully reviewed the transcripts, while the Church itself never had access to them.

The IRS has used the existence of the stolen tapes against the Church both in court and in the exemption proceedings. Knowing full well that the Church did not have access to them or knowledge of their contents, the IRS has demanded the Church provide copies of them in virtually every 1023 proceeding.

This ploy was taken to its most outrageous extreme in the CST declaratory judgement case before the Court of Claims in Washington DC. The Department of Justice attorney representing the IRS in this litigation vehemently asserted the bald face lie that CST failed to establish its entitlement to exemption by not providing copies of the MCCS tapes during its exemption proceedings. He used that as the stepping stone for the rest of his argument in which he speculated that nefarious purposes for the establishment of CST were evident in the MCCS tapes, and that these inferences had to be accepted since CST failed to produce them. Not only were the tapes unavailable to the Church, contrary to DOJ assertions, but the IRS had possession of them and knew they didn’t contain the inferences put forth to the court. The big lie was pressed so insistently and forcefully that the judge bought and premised his entire ruling on it.

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These tapes are still the subject of ongoing litigation. The most recent decision was rendered by the United States Supreme Court on November 16, 1992 in (U.S. v. Zolin which acknowledged that the IRS had access to the tapes in 1984 and had access in 1991 up through present time. In fact, the IRS argued unsuccessfully that because they had the tapes, the Church’s appeal of the ruling granting the IRS access was moot.

Christofferson v. Church of Scientology:

The Christofferson case, described at pages 10-15 and 10-16 of our prior response, went to trial twice, had two jury verdicts and both verdicts were overturned. The case ultimately was settled as a nuisance.

Julie Christofferson made her claims against the Church only after being kidnapped and deprogrammed by convicted felon and CAN founder Ted Patrick, and after being induced to file suit by unethical attorneys as part of Michael Flynn’s FAMCO scam, as described in the response to Question 10.d of our prior response. Christofferson’s attorneys were FAMCO members.

Christofferson claimed that she had been defrauded, brainwashed and subjected to emotional distress. The first trial of the case, conducted in 1979, was a free-for-all, in terms of Scientology bashing. The judge at that trial allowed Christofferson’s counsel to parade a string of former members and store-bought psychiatrists through the court room and essentially put the Scientology religion on trial, as seen through their hate-filled eyes. This resulted in a verdict against the Church of Scientology of Portland and other Church entities in the Portland area, of $2 million.

The Oregon Court of Appeals resoundingly reversed the verdict on the ground that it was a runaway, heresy trial prohibited by the First Amendment. The case was remanded for a new trial.

Given the admonitions of the Court of Appeals in remanding the case, the second trial should have been better controlled. It was not. If anything the second trial, conducted in 1985, was worse, as by that time Michael Flynn had put together a regular traveling circus of apostates that he exported to his allied FAMCO attorneys who were trying the case. All the witnesses had three things in common. One, they had never met Julie Christofferson. Two, they were all represented by Flynn and had a stake in the outcome of the litigation. Three, they were CID informants. This was the same turn-key arrangement used in the Armstrong case.

None of the witnesses had a single thing to say about Christofferson. They were simply summonsed to rant about the

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“evil” Church for days on end. Gerald Armstrong, an IRS informant whose love poem to a pig was written at plaintiff attorney Gary McMurry’s farm-home between days of testimony, spent several days denigrating the Church and its beliefs.

On cross examination Armstrong was questioned about the facts disclosed in the video tapes outlined earlier in the Armstrong section of this answer. True to his premeditated pledge to deny any of it, even under oath, he proceeded to do just that. Thus, he denied that he had ever been involved in any planning to take over the Church or to seed its files with phoney documents in preparation for a CID raid, and other similar facts that the tapes clearly documented. He was asked if he ever met with anyone to discuss anything like this. Armstrong vehemently denied it. His blatant perjury then was exposed when the Los Angeles police department sanctioned video tapes were put into evidence.

Within two hours of this testimony, CID agents and District Counsel attorneys were in Portland in the Judge’s chambers, and in a clear attempt at intimidation, demanded access to and sealing of the tapes. Simultaneously, CID agents Lipkin and Ristuccia visited the Chief of the Los Angeles police department to arrange cover for their operation. This case should have exploded in the plaintiff’s face with a summary perjury conviction of her star witness. Instead, as a result of IRS CID interference it was allowed to run its full course as a modern-day heresy trial against the Scientology religion.

Not only was Armstrong not charged with perjury, but other CID informants such as Laurel Sullivan, Bill Franks, Eddie Walters and Howard Schomer, were also allowed to disparage the Scientology religion to their heart’s content; and CAN psychologist Margaret Singer, whose theories on “cults” and “brainwashing” have subsequently been completely discredited in several courts, was allowed to expound upon those theories making Scientology out to be something entirely evil and diabolical. This went on to the point where once again Scientology was on trial and the jury was overwhelmed by the poisoned atmosphere and the inflammatory accusations.

The resulting $39 million verdict was so outrageous that a public outcry went up, not just from Scientologists but from the religious community at large. The judge himself was shocked, and in admitting that the case had gotten out of hand in violation of the court of appeals ruling in the first case, declared a mistrial and nullified the verdict completely.

The Church thus does not agree with the verdict reached by the jury but does agree with the mistrial declaration that nullified that verdict exactly 60 days after it was entered. Lawrence Wollersheim v. Church of Scientology of California.

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The Wollersheim case, discussed on page 10-16 of the prior submission is still under consideration by the California Supreme Court. The original $30,000,000 verdict was reached after months of testimony by Michael Flynn’s regular stable of witnesses, including Laurel Sullivan, Eddie Walters, and psychiatrist Margaret Singer, none of whom had even met Larry until the eve of trial. The trial was no different than Christofferson – same witnesses, same documents – except that it lasted for an additional two months. The entire trial was five months of unrestrained ridicule and attack of the Scientology religion.

On appeal the verdict was reduced by the California Court of Appeal to $2.5 million. The Court of Appeal characterized the amount of the verdict as “preposterous.” Although clearly shocked by the outrageous verdict, the court of appeal went out of its way to recite a factual record absolutely unsupported by the record below to justify Wollersheim receiving the $2.5 million they arbitrarily decided he was entitled to.

Both Wollersheim and the Church filed petitions with the United States Supreme Court. Wollersheim’s petition was denied, but the United States Supreme Court granted the Church’s petition, vacated the judgment and remanded the case to the state appellate court for further proceedings. On remand, the Court of Appeal issued a new decision giving Wollersheim a choice of accepting a $2.5 million award or having the case remanded for a new trial. When Wollersheim refused to accept the award, the Court of Appeals changed their decision and, instead of sending the case for a new trial as required, amended the decision to affirm their original award of $2.5 million.

That decision was superceded as a matter of law by the California Supreme Court’s grant this summer of CSC’s Petition for Review. The matter is pending before the California Supreme Court. The final adjudication of this case is yet to be made.

However, the only thing the Church of Scientology was ever guilty of with respect to Larry Wollersheim was trying to help him, which is why he kept coming back for over a decade, even after being expelled for unethical conduct. The Church obviously disagrees with the jury’s treatment of the Wollersheim case as well as the dishonest manner in which the California Court of Appeals dealt with the case on both occasions on which that court acted. The Church agrees with the US Supreme Court’s decision vacating the judgment, and the California Supreme Court’s decision to review the case.

Wollersheim, an attendee at numerous CAN functions, has   recently communicated directly with Church counsel. This is

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significant because the communication from Wollersheim confirms what the Church has asserted about Wollersheim the entire time — he is deranged and delusional. As can be seen from the attached correspondence (Exhibit III-10-T), Wollersheim’s current position is that the Church of Scientology is some sort of massive United States government intelligence experiment run amok. Wollersheim’s theory even has the Internal Revenue Service, along with the FBI, Justice Department and the Judiciary, having their actions with respect to Scientology dictated by the CIA:

“If you were sitting as director in one of the super-secret intelligence agencies or think tanks would you hesitate for a moment to run interference on the outer agencies, the FBI, the Justice Dept., the IRS or the Judiciary if this would insure that national security interests in this valuable thought reform field experiment would not be terminated. Wouldn’t you also periodically let the lower agencies publicly rough up Scientology to help maintain the great religion cover and release some of the pent up victim and social back-pressure.”

Wollersheim’s letter is plainly the ramblings of a decayed mind, but it illustrates the sort of persons against whom the Church has been forced to defend itself and further illustrates that any reliance by the Service on the claims of anti-Church plaintiffs like Wollersheim and other CAN members is seriously misguided.

CONCLUSION

As you no doubt expected, we don’t agree with the negative decisions concerning some Scientology corporations in the 1980s. More importantly, through the passage of time we are being vindicated.

The Service has criticized the Church for being over-litigious in fighting dissidents. In virtually every instance, however, it has been the Church that in the first instance was required to defend itself in litigation commenced by these dissidents; litigation packaged, marketed and sold by cynical merchants of religious intolerance like Michael Flynn, CAN and a significant element of the IRS.

As detailed in this and our previous submission, we have to litigate seriously because we have been subjected to great persecution. Perhaps those in the Service who complain about our “litigious nature” do so because we didn’t just fold under the onslaught of IRS sponsored attacks and this upset the best laid plans of the IRS Scientology-haters. The Service exhibits remarkable temerity to ask us to “explain” such cases when it was so integral in creating them.

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The Service also has directed the support these dissidents receive. An LA district counsel attorney encouraged Vicki Aznaran to “take a stand” against Scientology, and her lawyer discussed her civil case strategy at length with LA District Counsel and EO agents. Once Aznaran was on board her ten year old personal income tax dispute with the IRS magically disappeared. Laurel Sullivan was represented by the U.S. Attorney’s office (on the justification she was an IRS informant) in a civil case brought by the Church against her for violating the attorney-client privilege. Mayo’s perverted version of Scientology principles received tax exemption as soon as he became an IRS informant. Even Flynn’s “Scientology Victims Defense Fund” which raised “donations” to fund his contingent fee litigation against the Church received tax exemption.

Cult Awareness Network received exemption as soon as they stated in writing that they would actively refer innocent inquiries about Scientology to lawyers. No cases remain in existence that were not started or maintained by Cult Awareness Network, which continues to operate under the IRS’ imprimatur. If the IRS were to withdraw its support, CAN and its instigated cases would disappear.

Our consistent view has been that the civil litigants are solely motivated by greed. The exception is Armstrong who we truly believe to be psychotic. During the 1980’s, the IRS used every single civil litigant against Scientology as an IRS witness. The government, however, has no business in taking sides in a religious or civil dispute. It is indeed ironic to note that once the Flynn civil litigation in the 80’s was settled, with the exception of Armstrong, we hear no more of their “horror stories” from these paragons of virtue claiming to be interested only in “principle” and “what is right.”

But there is a more important point to be made. You are still holding us to a higher standard in these proceedings, which is not a fair and impartial administration of tax law. These decisions –Armstrong, Christofferson and Wollersheim– concerned CSC. Even putting aside whether we were right or not in the court room, how could these decisions have anything at all to do with these current proceedings? CST, RTC and CSI did not even exist when these individuals left the Church and the decisions in the aforementioned cases are not against these corporations.

We have more than answered your questions on the subject of litigation and we want you to understand how unfair we think this is. After all, as we have shown, significant elements within the IRS have actively participated in the litigation with a vested interest in the outcome. So you are asking us to defend ourselves against unfair attacks that your own agency has had a hidden and illegal part in creating. To understand why we have had to engage in so much FOIA litigation, you need only look at the bizarre

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occurrences in our general litigation. So why continue this war of attrition? Who keeps pushing to ask us questions about our civil litigation? It isn’t relevant to these proceedings and this should be the end of it.

Everybody today knows Pontius Pilate was a toady who rendered a dishonest decision to curry favor from the Roman establishment. Judge Breckenridge is of the same ilk. The true story of his decision is in LA CID files – provided they haven’t been destroyed to avoid our FOIA litigation.

It is time to end this shameful IRS involvement in trying to destroy Scientology. Why must the Service follow in the footsteps of the Nazis, who spread black propaganda about the Jews so that the German people would be inured to the massacre of millions. This is the same tactic used by significant and powerful elements within the Service in their dissemination of false information and active participation in attempting to destroy us.

We have no doubt that the IRS officials involved in unreasoned hatred and war against us are morally certain of their correctness that this isn’t the same as the early Roman attacks on Christianity, that it isn’t the same as the Nazis’ genocide against the Jews. No doubt, the Romans and Nazis also showed the same moral certainty. Many such dogmas have borne the imprimatur of government–the indestructibility of the Roman Empire, the supremacy of the Aryan race, the inevitable triumph of communism over capitalism, the legal segregation of the races. History, however, always has proven otherwise: Rome fell, the Nazis were defeated, communism collapsed and apartheid was unmasked for the evil it is. History is on our side today.

* * * *

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QUESTION 10.e.iii

iii. The Service understands that criminal legal proceedings are pending in Canada. Please provide a full description, including the current status of the proceedings.

In the preceding subparts to Question 10 and the response to Question 10.d of your second series of questions, the Church has described in detail litigation involving Scientology-related organizations or individuals in the United States. This final subpart broadens the scope of the Service’s public policy inquiry to include Canada. While the relevance of this inquiry is perhaps more attenuated than those concerning U.S. litigation, at the same time it provides a fitting conclusion because the Canadian case mirrors much of what occurred in the U.S., including a leading role played by the IRS. We are providing a full description of the Canadian proceedings below, and have also attached as Exhibit III-10-U, a memorandum prepared by counsel for the Church of Scientology of Toronto, setting forth his perspective on this case in response to this question.

Canadian Criminal Proceedings:

The acts that were at issue in Toronto occurred nearly 20 years ago, from 1974 to 1976. Canadian law, however, has no statute of limitations to bar anachronistic prosecutions such as occurred in this case. All the acts at issue were committed by Guardian’s Office members during the same time period as similar acts in the U.S. These included a conspiracy of infiltration and theft of documents in Canada similar to that which lead to the trial and convictions of GO members in the U.S. Yet, it was not until March of 1983, when the GO criminals in the U.S. had long since been convicted and sentenced, that the Ontario Provincial Police (“OPP”) conducted the largest raid in the history of Canada against the Church of Scientology of Toronto.

The Guardian’s Office Clean-up:

In our prior response, the Church’s response to Question 3-d provided a detailed description of the actions taken by the Church to investigate and disband the Guardian’s Office (“GO”). This included sending missions from CMO INT to Guardian Offices around the United States and in other countries to investigate involvement by GO staff in illegal activities and, based on the findings, to purge offending staff from Church employ. The Guardian’s Office Canada, located in Toronto, was one of those offices investigated. A CMO mission found that some of the GO staff had been involved in

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illegal activities. Actions were therefore instituted to weed out and discharge those involved. Church executives insisted that all wrongdoers make up for damage done to society by full and appropriate amends. During the thorough clean-up process, those who earnestly complied through thousands of hours of community-based charitable works, although barred from Church staff, were allowed to otherwise retain their membership in the Church. Those who refused to take responsibility for their actions were expelled.

A clique of the most high level GO members in Canada, lead by Brian Levman and Marion Evoy, who ran the Guardian’s Office in Canada and, in fact, were the ones originating criminal activities and ordering them carried out, refused to take any responsibility for their acts and were expelled from the Church. Their refusal to cooperate with investigations into the extent of the criminality made it impossible for the CMO missions to find out just how pervasive the crimes committed by GO Canada were.

By January of 1983 it was well known to the OPP that the Church had dismissed from staff all people even tangentially involved in criminal activities committed in the mid 70’s, and no one then currently on staff had the slightest inclination to commit crimes, and could not be induced to despite the best efforts of OPP informants. In February 1983, after 2 years of reorganization, a CMO mission fired to GO WW to begin the disbandment of the entire GO network. By late February 1983, GO WW no longer existed, and in the last week of February 1983, GO Canada was disbanded. This drove Ciampini and the OPP into a frenzy of activity.

Just two weeks later, as if fearing that the clean-up and elimination of the GO would completely undermine any case against the Church, the OPP conducted the largest raid in Canadian history, smashing Church property with sledgehammers and axes, and seizing two million documents, including confidential priest-penitent confessional materials from 641 parishioners. All together a total of 950 banker’s boxes full of materials were carted off from the Church.

Why did the OPP do this, almost a decade after the alleged acts occurred, six years after the FBI had raided U.S. churches and punished the masterminds of this activity in the US? It was at least in part pursuant to the goal of destroying the Scientology religion. It was also in large measure aimed at aiding U.S. attackers, including Scientology-haters in the IRS.

The IRS, Michael Flynn and his clients Gerry Armstrong and Laurel Sullivan, were key sources who had supplied the OPP with information for the warrant used in the raid. Indeed, a large portion of the Toronto warrant dealt with allegations of fraud (saying Church services did not result in spiritual betterment) and tax fraud against the Church based on information provided

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by these IRS witnesses. The warrant predicted broad charges being laid, not only against the Toronto Church, but against the religion’s Founder, L. Ron Hubbard, and senior Scientologists such as David Miscavige and Lyman Spurlock.

The two other main informants for the warrant were former Church members John and Nan Mclean. Documents received under the Freedom of Information Act evidence that during the 1970s and early 1980s while the Mcleans were assisting the OPP infiltrate the Church, they were at the same time acting as agents for the IRS. The Mcleans were also plaintiffs in one of the many Flynn FAMCO lawsuits. Other FOIA documents revealed that the OPP had arranged for government legal assistance in the form of money for the Mcleans’ attorneys in order to prosecute their civil claims.

Immediately following the raid, Ontario attorney general Roy McMurtry told the news media that a US government agency was coordinated with and served to help spearhead the investigation leading to the raid. Subsequent discovery showed the US agency working hand in glove with the OPP was the IRS. After the raid, IRS agents in LA CID became regular communicants with Detective Ciampini to get information seized in the raid and share with him information from their investigation. In August 1984, CID agents Al Lipkin and Stephen Petersell went to Toronto and met with Ciampini and the forensic accountants who had examined seized Church financial records.

Because of an agreement made with Church counsel, none of the seized documents could be given to foreign agencies. Nevertheless, the Crown allowed IRS agents Lipkin and Petersell to be briefed for several days on the information from the documents, including extracts from the documents themselves. CID agent Lipkin advised Ciampini that if the OPP indicted L. Ron Hubbard and others, the IRS would assist in locating them. Clearly the IRS was encouraging the OPP to go forward with charges despite the stale nature of the evidence, hoping to bolster their own chances to bring charges of some kind in the U.S.

In March 1984, Church representatives went to Toronto to offer the Church’s cooperation to the Crown law offices in prosecuting the GO criminals responsible for the criminal acts in Canada. The Crown categorically rejected the Church’s good faith offer saying they held all the cards. Instead, the Crown Law Office twisted the Church’s offer of good faith cooperation as a threat by the Church against the GO criminals and used this to convince the criminals to accept immunity from prosecution and attack their former religion and the very subordinates they had ordered to commit the crimes in question.

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Initially, the Toronto GO criminals were so uncooperative that the Crown could not even communicate with them directly. The Crown Law Office approached apostate IRS informant, David Mayo, for help in gaining support from the criminals. The OPP also utilized Mayo as a middleman to approach the expelled former Church members, as they knew Mayo was a GO supporter and part of the same splinter movement. The government chose sides in a religious dispute and went with those demonstrably guilty of criminal acts because they were willing to denounce the religion of Scientology.

In December 1984, 18 months after the raid, the OPP brought charges against the Church of Scientology of Toronto and 19 named individuals alleging theft of confidential information and property, breach of trust, and possession of stolen information and property. None of the other charges against the Church as set forth in the search warrant that authorized the raid – tax fraud, consumer fraud and conspiracy to commit indictable offenses – were raised in the indictment. After an extensive review by forensic accountants and Revenue Canada agents of all Church finance records and correspondence which had been seized in the raid, no evidence of any financial crime was ever found and no charges proceeded from these allegations. The only charges brought concerned the breaking and entering, and the infiltration activities by the GO.

The Crown gave immunity to the real culprits who actually ordered the activities of the charged individuals. Those given immunity were the GO staff who had been at the top-levels of the Guardian’s Office in Canada and who had planned out and ordered the criminal activities. Those who were prosecuted were the lower-level staff who were following these orders. In an unprecedented move, no member of the Board of Directors of the Church of Scientology of Toronto was charged, but rather the entire corporation itself was – a clear move by the Crown to attempt to stigmatize the entire religion for the acts of a few long-since-expelled criminals.

During the preliminary hearings from 1988 to 1990, the Crown produced no evidence that the Church as a corporate entity had advocated the illegal actions of those charged. Evidence that was produced showed that the Church forbade actions which violated the law, was not aware of these individuals’ activities and that when they were discovered, the Church removed these people from staff and disbanded the Guardian’s Office. Several charges were dropped as a result of the preliminary hearing.

The individuals who were indicted offered to plead guilty if the Crown would drop the charges against the Church, because neither the Church nor its directors nor Church members had any idea that the criminal acts in question were being committed.

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The Crown refused to change its position, insisting that the Church plead guilty as well.

In the litigation of this case, which spanned most of a decade, during which time government officials expended $15 million in attempts to “get” the Church of Scientology. As described below, of 19 original charges, only 12 proceeded to trial and of those the Church was acquitted on 10. The remaining two are on appeal. The case was ill-intentioned from the outset and fell apart in court.

In November 1991, the Ontario Court of Justice ruled that the search of the Toronto Church premises was unlawful and violated the Church’s rights under the Canadian Charter of Rights and Freedoms, which affords protection from unreasonable search and seizure. The Church had shown in the months-long evidentiary hearing that the OPP timed the raid to coincide with press deadlines of the international media; that many of the searching officers acted with no specific instructions or were left unsupervised, seizing everything in sight.

The judge ruled that the OPP failed to respect the terms of the search warrant that safeguarded against a general rummaging of the premises. Although the Crown argued that the police had acted in “good faith,” the judge found that the police either were unaware of this limitation or chose to ignore it, and he could not find they had acted in good faith. The judge found that the instigator of the raid, Detective Al Ciampini, was not a credible witness.

The judge cited as a significant example of the massive over-seizure, the large amount of religious confessional material respecting Church members taken by the police, noting that confessional material from 641 parishioners was unlawfully seized in violation of their privacy rights.

The judge also found it ironic that for two years prior to the raid, the two OPP officers, placed inside the Church as plants, had stolen hundreds of documents without authorization and without a warrant. These stolen documents then were used in the Information section of the warrant as the justification for the raid. The fact that the information came from documents the OPP had unlawfully stolen from the Church was withheld from the Justice of the Peace who issued the Warrant. The judge also observed the ironic fact that the OPP’s undercover police officers had done the very thing that was now the subject of charges against the Church and some of its members. The judge’s ruling resulted in acquittals on 7 of the remaining 12 charges, and the elimination of all theft charges. The remaining five charges for Breach of Trust were left for trial. The crime was that certain GO members had worked for Ontario government agencies, had signed confidentiality agreements and then

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breached those agreements by passing on information concerning the agencies’ activities outside the agencies.

The trial judge allowed the Crown to keep the Church in the case as a party on a tenuous legal theory. The law that was used to support the Crown’s position is called the “Dredge & Dock” case, in which a court had ruled that a corporation can be held criminally liable for the actions of its employees. This case was relied on even though it clearly pertained to a profit-making, commercial enterprise, had never been applied to, nor is applicable to, a church and had never been applied to an organization that had thoroughly and demonstrably taken responsibility to rectify the actions of the miscreants.

The trial proceeded in April and May 1992. The Crown put on several ex-GO criminals, all of whom had been expelled by the Church in the early 80s. They testified under immunity even though they were the masterminds of the Canadian criminal activity. These criminals testified against their erstwhile juniors, whom the criminals had ordered to commit criminal acts. The criminals also were allowed to manufacture justifications for their own unconscionable conduct, laying the blame on the Church’s doorstep with tortured and false stories about their states of mind.

The Toronto Church had no local witnesses testify as there was no one locally in good standing who knew the first thing about the criminal activity from the 1970s. Senior Scientologists from California did travel to Toronto to testify. David Miscavige, who Ciampini had earlier threatened to indict solely for the purpose of getting ex-GO criminals to testify, voluntarily testified. He told the entire story of the GO take over, what lead to it, how it was carried out, and how the Church was so offended by the GO’s crimes that it was the only entity or individual that volunteered its services to the Crown to prosecute the wrongdoers. None of the Church witnesses attempted to justify a single act of the GO. Instead they outlined how the GO had covered up their criminal activity from Church management, and when management found out about the acts, it acted, swiftly and responsibly.

Once the evidence was all in, the trial judge, misusing the “Dredge and Dock” case essentially directed a verdict for the Crown. The Judge stated that whether the GO was separate and autonomous or not, and whether or not they withheld from the Church what they were doing, and whether or not the Church cleaned house long before the OPP and Crown were even interested in any criminal charges, did not matter. He told the jury that despite the unrefuted nature of the evidence of the Church witnesses mentioned above, they must return a verdict against the Church on certain counts. Notwithstanding the de facto directed verdict, the jury found the Toronto Church innocent on 3 of the 5 counts tried. It

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was convicted on two counts of breach of trust. 3 ex-GO individuals were convicted on between one and two counts of breach of trust each.

No jail terms were given to any of the individual defendants. One was fined $5,000 and two others were each fined $2,500. No probation or community service work was ordered, in acknowledgment of the fact that they had already done thousands of hours of community service at the direction of the Church. The Church was given a fine of $250,000, one quarter the sum the Crown pleaded was an appropriate minimum.

The judge acknowledged that the alleged criminal acts had taken place more than 15 years ago and that all those responsible were removed by Church officials from positions of authority. He also recognized that not a single member of the present Board of Directors was a director at the time of the offenses, and that most present parishioners were likely not even members of the Church then. He specifically found that in light of those facts, deterrence was not required of the Church.

Following the decision, Church counsel immediately served the government attorney with a Notice of Appeal on the two counts upon   which the Church was found guilty. The Church and Church counsel fully expect these convictions to be overturned. Not only was a novel extension of the law used to find corporate responsibility, but the trial was fraught with numerous other errors. The fact that the directing minds of the GO criminality, who testified for the Crown under grants of immunity, were allowed to go on week after week denigrating the beliefs and practices of the religion in their attempt to lay the blame for their own acts on the Church’s shoulders, made for an inquisition-like, heresy trial.

On September 15, 1992, the Church filed notice of a $19 million Constitutional Damages suit against the Ontario Provincial Police and the Crown law office for the unconstitutional search and seizure in the 1983 raid. At the center of that suit are the discriminatory and violent acts manifested by the OPP’s raid; a raid that has already been ruled to have been illegal and conducted in bad faith.

The Toronto case began with dozens of charges being proposed in the early 1980’s. Internal OPP memoranda obtained through discovery have shown that the aim of the case was to complement the plans of IRS CID and US private litigant to physically overthrow leadership of the mother Church and to wipe out the religion of Scientology. It began with infiltration and attempted entrapment, followed then by an unconscionable physical assault on the Toronto Church, later ruled illegal and unconstitutional. The case was pressed by the OPP and Crown, despite the Church providing evidence it expelled the culprits and was willing to cooperate in their prosecution. The individuals who were convicted, GO underlings of

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the Crown’s immunized witnesses, had already made up for their wrong-doing years prior to trial at the Church’s insistence. The Crown’s animus against the Church was so strong that notwithstanding the failure of the IRS CID’s takeover plan, and the failure of the US litigants against the Church, they pressed forward by dismissing dozens of capital crime cases in order to make room for their several week heresy trial against Scientology.

The fact that the OPP and Crown walked away with 2 counts of breach of trust, a fine less than 1/4 of what they argued was the minimum possible, and no jail time for any of the individual defendants amounts to one of the biggest embarrassments in the entire history of Canadian jurisprudence. Nevertheless, the Church will continue to fight until justice is completely served. And that means reversal of the two breach of trust convictions, and full recompense awarded for the OPP’s vicious and illegal raid on the Toronto Church.

* * * *

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Notes

 

  1. This document in PDF format. Source image files: https://web.archive.org/web/20090927222617/http://www.xenu-directory.net/documents/corporate/irs/1993-1023-csi-questions-3-10.pdf
  2. Transcript excerpts from the illegal videos submitted as Exhibit III-10-Q on archive.org. Cf. court transcripts and illegal videos.
  3. Exhibit III-10-Q: Transcript excerpts of illegal videos on archive.org. Cf. court transcripts and illegal videos.