Sylvia Stanard

Sylvia Stanard

Sylvia Stanard

The Oregonian: Scientologists fail in bid to block lawsuit (July 12, 1985)


OSA Press Release (August 1, 1984)

Author  Sylvia Stanard
Date  August 1st, 19841

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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