In seeking possession of the MCCS tapes, which had been held by the Clerk of the Los Angeles Superior Court following the 1984 trial in the Scientology v. Armstrong case, the IRS had submitted a partial transcript to the U.S. District Court to demonstrate a crime-fraud exception to the attorney-client privilege. The MCCS meeting that was recorded involved of course a number of attorneys for Hubbard and Scientology, as well as Sea Org and GO staff members working on MCCS. Scientology founder L. Ron Hubbard ordered MCCS, and current cult head David Miscavige operated the mission.
I have never seen what transcript the IRS used, and I did not give the IRS any transcript at any time. I wrote the note that precedes the transcript in 1982 and my ex-wife Jocelyn transcribed the tape. If the IRS used it, the Service did not get it from me, and I do not recall to whom I may have given it besides my attorneys, but I obviously gave it to someone because it has now come back to me.
Because of the ongoing investigation of Scientology cult fraud, I am posting this now, and I am grateful to whoever sent it to me. If anyone knows if this is the partial transcript that was central to the U.S. v. Zolin cases I would like know. The published opinions and a number of other documents relating to MCCS are webbed on my site at: http://www.gerryarmstrong.org/50grand/legal/other-scientology-litigat...
The U.S. Supreme Court stated in its ruling:
[Quote]
The IRS denied that the transcripts were made using tapes obtained from the Superior Court or from any other illicit source. Agent Petersell declared: "The partial transcripts were not prepared by the United States from the tapes in the custody of the Superior Court for Los Angeles County, California, nor from copies of the tape now in the custody of the Clerk of this Court. The transcripts were obtained from a confidential source by another Special Agent prior to the issuance of this summons. The source was not a party to Church of Scientology v. Armstrong, No. 410153, nor an attorney for any party in that proceeding." See Declaration of Agent Petersell in No. CV85-0440-HLH (Tx) (March 21, 1985). As the District Court made no finding of illegality, we assume for present purposes that the transcripts were legally obtained.
Transcript of tape recording made 29 September 1980 at a meeting of Scientology legal personnel, MCCS Mission personnel and attorney's of Scn, LRH and Gold or New Era Pictures the film crew co.).
When I have been able to identify the speaker I have noted his or her initials beside the statement. When I have not been able to identify the speaker there are no initials.
The following people attended the meeting:
CP: Charles Parselle, then DGL WW.
AW: Alan Wertheimer, attorney for LRH who worked closely with Laurel Sullivan and the MCCS mission, attempting to have LRH retain control without liability or responsibility.
LS: Laurel Sullivan, LRH Personnel PR, and I/C of the Legal mission, MCCS, which was attempting to shield LRH.
LB: Lisa Britowich, Laurel's junior on MCCS. Now kicked out,off staff. Was in the GO at the time.
JM:James Murphy, LRH's tax attorney. He worked in the same firm as Alan Wertheimer, - Rosenfeld, Meyer & Sussman in Beverly Hills. I believe Rosenfeld, Meyer & Sussman have been dropped by the organization. Wertheimer I know for sure has been dropped, Murphy I'm not sure of.
DS: Dick Sullivan, Laurel's husband,and junior on the MCCS mission.
MC: Melanie Cook, attorney at Rosenfeld, Meyer & Sussman, who did a lot of work on trademarks, etc.
Ron Fujikawa, worked on the film deals. Part of MCCS's actions was to work out the legal arrangements for LRH to get paid for the films, and I believe retain copyrights for them, plus work out distribution lines with Pubs DK, and other related matters. Fujikawa is an attorney in Century City.
I was given this tape by Barbara DeCelle, secretary on the MCCS mission, in late 1981. Barbara had transcribed the various tapes and gave me the cassettes for my use.
Some of the statements, particularly regarding RRF, eg. see p. 8 and 9, are very interesting.
GA
[End Quote]
The transcript:
[Quote]
I have gathered a fair amount of information on this and I have been quoted by people who actually do documentary work of $22,750.00 for a script for a half hour educational film.
It's low.
The numbers are low.
In part because documentaries and educational films are methods for writers, directors and other talent to break into the business and therefore (inaudible). So, I guess one of the problems then is that anything you pick that is even reasonably on the high side is subject to challenge because they will definitely be able to go and find other people to work for < inaudible >.
CP: Right. So it could be as low as three.
It could be as low as three. There are other services that are involved here in addition just to writing the script.
AW: And L. Ron Hubbard is not an unknown quantity. He's not somebody trying to break into the business.
Admittedly.
CP: That's right. Just the economics of making a half hour or an hour of educational film is such that they can't afford to pay someone a great deal of money. Certainly not the amounts that were originally contemplated or have actually been paid in this particular arrangement.
CP: Right. That's right. Thereof one has to look at the fact that he trained an entire crew for the Church. All those people are now available to continue film-making for the Church if the Church wishes. Plus the scores. All on their account. As far as we were concerned, he trained them up. They are Church employees, they're Scientologists and they are probably going to go on making films for Church purposes. But even so, if we look in - I mean, I just did my little calculation and it came out to just 1/2 a million. That's 33 times 15,000 and if you add on bits for film scores and bits for the work for training and something for the fact that he's not a newcomer trying to break into the field as far as we are concerned.
LS: He also is the only person in the world who could ever write these ... the way they were written.
-1-
LB: Yeah.
LS: There's that.
CP: That's right. It's the score. I mean, it would have been really impossible for CSC (Church of Scientology of California) to have gone to another author for those films because they are entirely technical films. He's the only chap who could have done it. But...
LB: He's also I think a ... there's more significance on the fact that he was the author and what would the Catholic Church pay the Pope, for instance to do that; or if Jesus Christ was alive today, what would they pay for a lecture? You know.
LS: We're talking about a non-unknown quantity ... in the field.
LB: Yeah. There's a significance that's attached that makes his words extremely valuable - priceless - to the Church that is different than you are talking about you are just going to pay somebody to direct an educational film. Well, you're going to pay Professor Joe Schmoe in a University to be the lecturer for that film or if you are going to hire, you know, a <inaudible> person to do it. There's going to be a difference...
AW: You have two problems and you raise an interesting point in what Jesus Christ would charge or what he would get paid. But ah, the two things that are going on is that LRH does not want to be accountable for all of the acts of the Church of Scientology since some of those could be slightly out of bounds and he doesn't want to be in a position where he is held accountable, on one hand. On the other hand, the Church is attempting to maintain a certain tax exempt status and they are worried that the status of the Church can be characterized as nothing other than an alter ego for L. Ron Hubbard whereby certain profit-making things are done in the name of the Church. So, with those two things going on, what we're trying to do is have some sort of structure whereby as much of those two things will continue as long as possible. And I am not trying to say that what he has done is not worth 2.1 million dollars <inaudible>... but you are talking about a jury of 12 people who may have to decide whether L. Ron Hubbard is sufficiently interwoven in the affairs of the Church to be held accountable for some astrocity that should happen in the future.
LB: I understand. I just want to make sure that in a deal -if we're going to have to deal with LRH - that it's due; I think Charles <inaudible> are attaching a significance to
-2-
that. Well as long as we are going to attach a significance to his contribution to the film-making, it should be, you know, <inaudible>. male - Well, at some point you draw the line, I don't know if it's worth 5 million dollars and I don't know if it's...
LS: Well, lets just look at his idea of it. His idea was that he didn't want it... (someone entered the room)... The other point was that LRH did not want any significance put on any services that he provided the Church unless it was absolutely necessary... and this was his instruction. He didn't want to be paid for anything other than the goods that he actually delivered. Now, over the last few months, Mary Sue has changed that because we have to justify the 2.1. She has said we will count that now as an advice from a different period of time and now we look at it again and that's why we are now considering assigning significances to his abilities to edit film, shoot film, create sets, music, etc. So, we don't want to go overboard on assigning significances to service.
...
<ge...@gerryarmstrong.org> wrote: >I have received an MCCS meeting tape transcript recently and a query >as to whether it is the partial tape transcript referred to in the >reported U.S. Supreme Court case U.S. v. Zolin, 491 U.S. 554 (1989). >http://www.gerryarmstrong.org/50grand/legal/us-v-zolin-us-sup-1989-06...
>In seeking possession of the MCCS tapes, which had been held by the >Clerk of the Los Angeles Superior Court following the 1984 trial in >the Scientology v. Armstrong case, the IRS had submitted a partial >transcript to the U.S. District Court to demonstrate a crime-fraud >exception to the attorney-client privilege. The MCCS meeting that was >recorded involved of course a number of attorneys for Hubbard and >Scientology, as well as Sea Org and GO staff members working on MCCS. >Scientology founder L. Ron Hubbard ordered MCCS, and current cult head >David Miscavige operated the mission.
>I have never seen what transcript the IRS used, and I did not give the >IRS any transcript at any time. I wrote the note that precedes the >transcript in 1982 and my ex-wife Jocelyn transcribed the tape. If the >IRS used it, the Service did not get it from me, and I do not recall >to whom I may have given it besides my attorneys, but I obviously gave >it to someone because it has now come back to me.
To correct the record, I didn't obviously give the transcript to anyone. For all I know, someone stole it from me, or stole it from my attorneys.
>Because of the ongoing investigation of Scientology cult fraud, I am >posting this now, and I am grateful to whoever sent it to me. If >anyone knows if this is the partial transcript that was central to the >U.S. v. Zolin cases I would like know. The published opinions and a >number of other documents relating to MCCS are webbed on my site at: >http://www.gerryarmstrong.org/50grand/legal/other-scientology-litigat...
>The U.S. Supreme Court stated in its ruling:
>[Quote]
>The IRS denied that the transcripts were made using tapes obtained >from the Superior Court or from any other illicit source. Agent >Petersell declared: "The partial transcripts were not prepared by the >United States from the tapes in the custody of the Superior Court for >Los Angeles County, California, nor from copies of the tape now in the >custody of the Clerk of this Court. The transcripts were obtained from >a confidential source by another Special Agent prior to the issuance >of this summons. The source was not a party to Church of Scientology >v. Armstrong, No. 410153, nor an attorney for any party in that >proceeding." See Declaration of Agent Petersell in No. CV85-0440-HLH >(Tx) (March 21, 1985). As the District Court made no finding of >illegality, we assume for present purposes that the transcripts were >legally obtained.
>Transcript of tape recording made 29 September 1980 at a meeting of >Scientology legal personnel, MCCS Mission personnel and attorney's of >Scn, LRH and Gold or New Era Pictures the film crew co.).
>When I have been able to identify the speaker I have noted his or her >initials beside the statement. When I have not been able to identify >the speaker there are no initials.
>The following people attended the meeting:
>CP: Charles Parselle, then DGL WW.
>AW: Alan Wertheimer, attorney for LRH who worked closely with Laurel >Sullivan and the MCCS mission, attempting to have LRH retain control >without liability or responsibility.
>LS: Laurel Sullivan, LRH Personnel PR, and I/C of the Legal mission, >MCCS, which was attempting to shield LRH.
>LB: Lisa Britowich, Laurel's junior on MCCS. Now kicked out,off >staff. Was in the GO at the time.
>JM:James Murphy, LRH's tax attorney. He worked in the same firm as >Alan Wertheimer, - Rosenfeld, Meyer & Sussman in Beverly Hills. I >believe Rosenfeld, Meyer & Sussman have been dropped by the >organization. Wertheimer I know for sure has been dropped, Murphy I'm >not sure of.
>DS: Dick Sullivan, Laurel's husband,and junior on the MCCS mission.
>MC: Melanie Cook, attorney at Rosenfeld, Meyer & Sussman, who did a >lot of work on trademarks, etc.
>Ron Fujikawa, worked on the film deals. Part of MCCS's actions was to >work out the legal arrangements for LRH to get paid for the films, and >I believe retain copyrights for them, plus work out distribution lines >with Pubs DK, and other related matters. Fujikawa is an attorney in >Century City.
>I was given this tape by Barbara DeCelle, secretary on the MCCS >mission, in late 1981. Barbara had transcribed the various tapes and >gave me the cassettes for my use.
>Some of the statements, particularly regarding RRF, eg. see p. 8 and >9, are very interesting.
>GA
>[End Quote]
>The transcript:
>[Quote]
>I have gathered a fair amount of information on this and I have been >quoted by people who actually do documentary work of $22,750.00 for a >script for a half hour educational film.
>It's low.
>The numbers are low.
>In part because documentaries and educational films are methods for >writers, directors and other talent to break into the business and >therefore (inaudible). So, I guess one of the problems then is that >anything you pick that is even reasonably on the high side is subject >to challenge because they will definitely be able to go and find other >people to work for < inaudible >.
>CP: Right. So it could be as low as three.
>It could be as low as three. There are other services that are >involved here in addition just to writing the script.
>AW: And L. Ron Hubbard is not an unknown quantity. He's not somebody >trying to break into the business.
>Admittedly.
>CP: That's right. >Just the economics of making a half hour or an hour of educational >film is such that they can't afford to pay someone a great deal of >money. Certainly not the amounts that were originally contemplated or >have actually been paid in this particular arrangement.
>CP: Right. That's right. Thereof one has to look at the fact that he >trained an entire crew for the Church. All those people are now >available to continue film-making for the Church if the Church wishes. >Plus the scores. All on their account. As far as we were concerned, he >trained them up. They are Church employees, they're Scientologists and >they are probably going to go on making films for Church purposes. But >even so, if we look in - I mean, I just did my little calculation and >it came out to just 1/2 a million. That's 33 times 15,000 and if you >add on bits for film scores and bits for the work for training and >something for the fact that he's not a newcomer trying to break into >the field as far as we are concerned.
>LS: He also is the only person in the world who could ever write these >... the way they were written.
>-1-
>LB: Yeah.
>LS: There's that.
>CP: That's right. It's the score. I mean, it would have been really >impossible for CSC (Church of Scientology of California) to have gone >to another author for those films because they are entirely technical >films. He's the only chap who could have done it. But...
>LB: He's also I think a ... there's more significance on the fact that >he was the author and what would the Catholic Church pay the Pope, for >instance to do that; or if Jesus Christ was alive today, what would >they pay for a lecture? You know.
>LS: We're talking about a non-unknown quantity ... in the field.
>LB: Yeah. There's a significance that's attached that makes his words >extremely valuable - priceless - to the Church that is different than >you are talking about you are just going to pay somebody to direct an >educational film. Well, you're going to pay Professor Joe Schmoe in a >University to be the lecturer for that film or if you are going to >hire, you know, a <inaudible> person to do it. There's going to be a >difference...
>AW: You have two problems and you raise an interesting point in what >Jesus Christ would charge or what he would get paid. But ah, the two >things that are going on is that LRH does not want to be accountable >for all of the acts of the Church of Scientology since some of those >could be slightly out of bounds and he doesn't want to be in a >position where he is held accountable, on one hand. On the other hand, >the Church is attempting to maintain a certain tax exempt status and >they are worried that the status of the Church can be characterized as >nothing other than an alter ego for L. Ron Hubbard whereby certain >profit-making things are done in the name of the Church. So, with >those two things going on, what we're trying to do is have some sort >of structure whereby as much of those two things will continue as long >as possible. And I am not trying to say that what he has done is not >worth 2.1 million dollars <inaudible>... but you are talking about a >jury of 12 people who may have to decide whether L. Ron Hubbard is >sufficiently interwoven in the affairs of the Church to be held >accountable for some astrocity that should happen in the future.
>LB: I understand. I just want to make sure that in a deal -if we're >going to have to deal with LRH - that it's due; I think Charles ><inaudible> are attaching a significance to
>-2-
>that. Well as long as we are going to attach a significance to his >contribution to the film-making, it should be, you know, <inaudible>. >male - Well, at some point you draw the line, I don't know if it's >worth 5 million dollars and I don't know if it's...
>LS: Well, lets just look at his idea of it. His idea was that he >didn't want it... (someone entered the room)... The other point was >that LRH did not want any significance put on any services that he >provided the Church unless it was absolutely necessary... and this was >his instruction. He didn't want to be paid for anything other
I am reading this thinking........"I cannot believe they actually tape recorded that meeting. " I am still reading it. I hope someone answers your question.
> I am reading this thinking........"I cannot believe they actually > tape recorded that meeting. " > I am still reading it. > I hope someone answers your question.
Now you know why we did not record meetings when doing the corporate sortout after MCCS! lol
Gerry's post here is a very important one.
Here we have various church staff from the Church of Scientology of California on that MCCS mission (run by DM), the DG Legal WW and various attorneys trying to work out some legal signifance for $2.1 million that was funneled to Hubbard from a paper corporation (RRF) so as to protect Hubbard legally and try not to show that revenues from the church were in fact inureing to Hubbard's benefit and thus risk tax exempt status for the church.
As you can see just from this transcript: 1) the money was already given to Hubbard; 2) it was given by a phony corporation (RRF) that was banking all the monies paid by public from outside of the USA for flag services; 3) they now needed to legally justify the money already sent to Hubbard; 4) they were worried that this might show Hubbard was controlling the church (which he was); 5) they were also worried about the IRS auditing the church and were trying to back track and say flag would be part of CSC (Church of Scientology of California); and 6) they were worried of losing a chance at tax exempt status if they could not come up with the signifance to legally justify the amount of money to Hubbard as reasonable.
This transcript very accurately shows the kind of discussions that went on all the time as part of the corporate sortout after MCCS as well. If you can imagine this and maybe 50 or more other considerations as big or even bigger than this, you can get some idea of the magnitude of things covered on that corporate sortout. Sometimes we had meetings with 15 or more attorneys and CPA types to go over different "problem areas". There would be some of the top attorneys in the world addressing such issues as the above (tax exempt status, gutting CSC of assets, dealing with the fact that Hubbard was controlling things and matters involving other potential real problems with the IRS and damages claimants). So much was woven into that "corporate sortout" that had to do with corporate, taxes, intellectual property rights, contracts, trusts, controls, etc.
Basically there were real problems because Hubbard really was the one controlling organized scientology and there was a great deal of money funneled to him for his private benefit for which there was no really defensible legal signifance. Additionally, a large part of the church's "eggs" were in fact in the CSC corporate basket (flag, AOLA, ASHO, LA Org, San Francisco Org, USGO and really all of top management, including CMO). On top of all that, there was no real corporate integrity throughout organized scientology, the GO had undated resignations of all corporate officers and board members of all church corporations throughout the world and, frankly, most local staffs who were legally in such positions didn't even know it .Couple this with the facts that the IRS was breathing down CSC's corporate neck and there were many damages cases looming and you have a legal mess.
I state the above to point just how real those issues were in the transcript Gerry just posted.
Now, without going into details, here's the real kicker:
The "corporate sortout" was done in late 81 through 82, with various other pieces following. Millions was spent to cover all legal issues and get it right and "defensible". The net result included the following:
1) CSI comes out as the new "mother church" and all churches of scientology signing agreements acknowledging same. What is supposed to be "top management" is put in CSI. This ends up including CMO Int/WDC, the ED Int's Office and OSA;
2) The orgs that were once the big revenue-producing arms of CSC (flag, AOLA, ASHO, LA Org and San Francisco org) become separate corporations. They, like other orgs, are managed by CSI;
3) SMI exists and licenses missions and SMI is managed out of CSI;
4) WISE exists and gets involved with "putting ethics" in various businesses run by scientologists and WISE is managed out of CSI;
5) RTC is created as a "non management body" to see to the proper usage of all the trademarks and service marks. It hold various rights to the usage of the trade/service marks and, through it, all orgs (including CSI) are licensed to use them;
6) CST gets created to eventually receive most of Hubbard's fortune, the rights to his copyrights, etc and will work on the "preservation" of the tech. Very important is that CST, for $100, can take all rights to the trademarks and service marks from RTC should they ever be at risk in RTC. If needed, CST could then license the churches itself or create and license another body like RTC;
7) ASI (Author Services) is setup to manage Hubbard fiction works and otherwise his copyrighted works as a for profit corporation. It is to take all that out of the church corporately. It is to have nothing to do with the management of the church. Later, Author Services is to become owned by CST;
8) The Publications organizations (Bridge in the USA and New Era in Denmark) then deal mostly with the manufacture and distribution of Hubbard's works related to dianetics and scientology. They have royalty contracts with Hubbard. Later, both organizations are owned by a non profit "trust";
9) many trusts are established, more come later, to receive monies from various churches. They are set up as non profit. (For example, a films trust is set up to receive a portion of each church's revenues weekly "in exchange for" the churches being allowed to show the films to their staffs and public);
10) old "problem" entities are eventually gotten rid of (RRF, OTC, CSC, etc.). For example, the last of the monies in OTC that did not end up inuring to Hubbard's benefit were transferred to a "non profit" trust, CSC is let to die a financial death as all its assets were stripped out of it;
11) IAS gets setup to get millions directly from any scientology public that hope to be able to do services again in churches;
12) additional little fancy legal steps are taken later to further spread out the money into various trusts and a company is setup in the UK that is staffed by Sea Org members to help "manage" the reserves of individual churches.
Whew! lol My point is that what was once basically CSC with all the legal problems mentioned above is now most of those things above. What were both CSC's and hidden funds before are now neatly spread out around the world in various trusts and such. What was legally confusing before (the legal status and control of the publications orgs, non US public monies to flag, the licensing of trademarks, the legal "distinctions" between Hubbard's and the church's interests, etc.) are now more clarified and "defensible".
So this sounds kind of neat huh? Quite a sophisticated legal setup compared to the old CSC days!!
For some people, this evolution was supposed to be a new legal beginning where things could be legally clear, Hubbard's and the church's interests separated and legally defensible and the church itself having a legal structure that no one could topple. And it would be a "new era" in that management would go in to actually mirror the corporate structure. By that I mean, things like the following would really happen:
1) CSI, through the likes of CMO Int and the ED Int's office would manage scientology orgs, missions and the like;
2) a body would exist that is truly not management called "RTC" and it would simply focus on the "pureness" of the technology covered by the trademarks;
3) money could go to Hubbard, not by cover up and lies, but actually via legally defensible channels, such as market-based royalties, that could be shown to the likes of the IRS;
4) ASI would truly be an organization that does what it says it does, which is make money on his fiction works, etc. It would be separate from the church and not in any way be involved in the management of the church.
So, did this happen? Were lessons like those covered in the transcript finally learned and would this now be a corporate structure that reflects the actual operating reality of the church? Could the church now legally take responsibility for its past tax and other financial frauds, pay what it must to the IRS, etc. and start a new, honest life? Now that the GO is disbanded, is it truly a new era without dirty tricks, illegal actions and the like? Was this the beginning of real and honest "church" expansion, in effect a new era for growth?
Not even close!
1.Remember the $2.1 million sent to Hubbard they were trying to deal with as covered in that transcript? Quite a huge problem right? Guess what? In 1982 alone, with the GO now out of the way, DM sees that over $40 million is funneled to Hubbard from his position in ASI. Not $2,1 million, $40+++ million! There is no longer any kind of "check and balance" to any degree within organized scientology. The GO is gone and DM can do whatever he wants. The $40 million is gotten in part using funds obtained through huge abuses on churches, missions, individuals, etc.
Here is a quote from a small section of an affidavit filed in the Fishman case in 1994 that may be of some interest on this matter: "44f. What is also not seen in Exhibits 23, 24 and 25, is that the Mission Holder Conference was held in order to perpetrate an enormous financial
...
SME wrote: > On Mar 11, 11:37 pm, "Out_Of_The_Dark" <xscilentolog...@yahoo.com> > wrote: >> On Mar 11, 9:13 pm, Gerry Armstrong <g...@gerryarmstrong.org> wrote:
>> I am reading this thinking........"I cannot believe they actually >> tape recorded that meeting. " >> I am still reading it. >> I hope someone answers your question.
> Now you know why we did not record meetings when doing the corporate > sortout after MCCS! lol
> Gerry's post here is a very important one.
> Here we have various church staff from the Church of Scientology of > California on that MCCS mission (run by DM), the DG Legal WW and > various attorneys trying to work out some legal signifance for $2.1 > million that was funneled to Hubbard from a paper corporation (RRF) so > as to protect Hubbard legally and try not to show that revenues from > the church were in fact inureing to Hubbard's benefit and thus risk > tax exempt status for the church.
> As you can see just from this transcript: 1) the money was already > given to Hubbard; 2) it was given by a phony corporation (RRF) that > was banking all the monies paid by public from outside of the USA for > flag services; 3) they now needed to legally justify the money already > sent to Hubbard; 4) they were worried that this might show Hubbard was > controlling the church (which he was); 5) they were also worried about > the IRS auditing the church and were trying to back track and say flag > would be part of CSC (Church of Scientology of California); and 6) > they were worried of losing a chance at tax exempt status if they > could not come up with the signifance to legally justify the amount of > money to Hubbard as reasonable.
> This transcript very accurately shows the kind of discussions that > went on all the time as part of the corporate sortout after MCCS as > well. If you can imagine this and maybe 50 or more other > considerations as big or even bigger than this, you can get some idea > of the magnitude of things covered on that corporate sortout. > Sometimes we had meetings with 15 or more attorneys and CPA types to > go over different "problem areas". There would be some of the top > attorneys in the world addressing such issues as the above (tax exempt > status, gutting CSC of assets, dealing with the fact that Hubbard was > controlling things and matters involving other potential real problems > with the IRS and damages claimants). So much was woven into that > "corporate sortout" that had to do with corporate, taxes, intellectual > property rights, contracts, trusts, controls, etc.
> Basically there were real problems because Hubbard really was the one > controlling organized scientology and there was a great deal of money > funneled to him for his private benefit for which there was no really > defensible legal signifance. Additionally, a large part of the > church's "eggs" were in fact in the CSC corporate basket (flag, AOLA, > ASHO, LA Org, San Francisco Org, USGO and really all of top > management, including CMO). On top of all that, there was no real > corporate integrity throughout organized scientology, the GO had > undated resignations of all corporate officers and board members of > all church corporations throughout the world and, frankly, most local > staffs who were legally in such positions didn't even know it .Couple > this with the facts that the IRS was breathing down CSC's corporate > neck and there were many damages cases looming and you have a legal > mess.
> I state the above to point just how real those issues were in the > transcript Gerry just posted.
> Now, without going into details, here's the real kicker:
> The "corporate sortout" was done in late 81 through 82, with various > other pieces following. Millions was spent to cover all legal issues > and get it right and "defensible". The net result included the > following:
> 1) CSI comes out as the new "mother church" and all churches of > scientology signing agreements acknowledging same. What is supposed to > be "top management" is put in CSI. This ends up including CMO Int/WDC, > the ED Int's Office and OSA;
> 2) The orgs that were once the big revenue-producing arms of CSC > (flag, AOLA, ASHO, LA Org and San Francisco org) become separate > corporations. They, like other orgs, are managed by CSI;
> 3) SMI exists and licenses missions and SMI is managed out of CSI;
> 4) WISE exists and gets involved with "putting ethics" in various > businesses run by scientologists and WISE is managed out of CSI;
> 5) RTC is created as a "non management body" to see to the proper > usage of all the trademarks and service marks. It hold various rights > to the usage of the trade/service marks and, through it, all orgs > (including CSI) are licensed to use them;
> 6) CST gets created to eventually receive most of Hubbard's fortune, > the rights to his copyrights, etc and will work on the "preservation" > of the tech. Very important is that CST, for $100, can take all rights > to the trademarks and service marks from RTC should they ever be at > risk in RTC. If needed, CST could then license the churches itself or > create and license another body like RTC;
> 7) ASI (Author Services) is setup to manage Hubbard fiction works and > otherwise his copyrighted works as a for profit corporation. It is to > take all that out of the church corporately. It is to have nothing to > do with the management of the church. Later, Author Services is to > become owned by CST;
> 8) The Publications organizations (Bridge in the USA and New Era in > Denmark) then deal mostly with the manufacture and distribution of > Hubbard's works related to dianetics and scientology. They have > royalty contracts with Hubbard. Later, both organizations are owned by > a non profit "trust";
> 9) many trusts are established, more come later, to receive monies > from various churches. They are set up as non profit. (For example, a > films trust is set up to receive a portion of each church's revenues > weekly "in exchange for" the churches being allowed to show the films > to their staffs and public);
> 10) old "problem" entities are eventually gotten rid of (RRF, OTC, > CSC, etc.). For example, the last of the monies in OTC that did not > end up inuring to Hubbard's benefit were transferred to a "non profit" > trust, CSC is let to die a financial death as all its assets were > stripped out of it;
> 11) IAS gets setup to get millions directly from any scientology > public that hope to be able to do services again in churches;
> 12) additional little fancy legal steps are taken later to further > spread out the money into various trusts and a company is setup in the > UK that is staffed by Sea Org members to help "manage" the reserves of > individual churches.
> Whew! lol My point is that what was once basically CSC with all the > legal problems mentioned above is now most of those things above. What > were both CSC's and hidden funds before are now neatly spread out > around the world in various trusts and such. What was legally > confusing before (the legal status and control of the publications > orgs, non US public monies to flag, the licensing of trademarks, the > legal "distinctions" between Hubbard's and the church's interests, > etc.) are now more clarified and "defensible".
> So this sounds kind of neat huh? Quite a sophisticated legal setup > compared to the old CSC days!!
> For some people, this evolution was supposed to be a new legal > beginning where things could be legally clear, Hubbard's and the > church's interests separated and legally defensible and the church > itself having a legal structure that no one could topple. And it would > be a "new era" in that management would go in to actually mirror the > corporate structure. By that I mean, things like the following would > really happen:
> 1) CSI, through the likes of CMO Int and the ED Int's office would > manage scientology orgs, missions and the like;
> 2) a body would exist that is truly not management called "RTC" and it > would simply focus on the "pureness" of the technology covered by the > trademarks;
> 3) money could go to Hubbard, not by cover up and lies, but actually > via legally defensible channels, such as market-based royalties, that > could be shown to the likes of the IRS;
> 4) ASI would truly be an organization that does what it says it does, > which is make money on his fiction works, etc. It would be separate > from the church and not in any way be involved in the management of > the church.
> So, did this happen? Were lessons like those covered in the transcript > finally learned and would this now be a corporate structure that > reflects the actual operating reality of the church? Could the church > now legally take responsibility for its past tax and other financial > frauds, pay what it must to the IRS, etc. and start a new, honest > life? Now that the GO is disbanded, is it truly a new era without > dirty tricks, illegal actions and the like? Was this the beginning of > real and honest "church" expansion, in effect a new era for growth?
> Not even close!
> 1.Remember the $2.1 million sent to Hubbard they were trying to deal > with as covered in that transcript? Quite a huge problem right? Guess > what? In 1982 alone, with the GO now out of the way, DM sees that over > $40 million is funneled to Hubbard from his position in ASI. Not $2,1 > million, $40+++ million! There is no longer any kind of "check and > balance" to any degree within organized scientology. The GO is gone > and DM can do whatever he wants. The $40 million is gotten in part > using
On Mar 12, 12:33 pm, "SME" <larrybren12...@aol.com> wrote:
Excellent summary! Now can you clue me on what happened to matters that no one got prosecuted and what significance and time line of Meade Emory getting posted to CST has to all this. And how did DM get so much control when LRH seemed to be running everything throuh his laweyers and accountants as I was always under the impression was the case? Others seem to disagree in the past with this picture of Emory? Do you think DM had enough or equal dirt on the IRS by the time the IRS had this dirt on Hubbard and CSC, that with Hubbard dead, some deals could be made financially and contractually to keep the church from meing fined and taxed into non existence?
I was glad to see Marty's name pop up it the transcripts because I'd never seen that before but know he was involved. I know Larry Heller did work for LRH & CSC in the 70's and he and Marty were friends, too. I used to work for Marty back before he retired to help LRH & corp sortout full time.
I see you are from NH, Marty's stomping grounds. Any idea how he is doing? Is he still alive?
> On Mar 12, 12:33 pm, "SME" <larrybren12...@aol.com> wrote:
> Excellent summary! Now can you clue me on what happened to matters > that no one got prosecuted and what significance and time line of > Meade Emory getting posted to CST has to all this. And how did DM get > so much control when LRH seemed to be running everything throuh his > laweyers and accountants as I was always under the impression was the > case? Others seem to disagree in the past with this picture of > Emory? Do you think DM had enough or equal dirt on the IRS by the > time the IRS had this dirt on Hubbard and CSC, that with Hubbard dead, > some deals could be made financially and contractually to keep the > church from meing fined and taxed into non existence?
> I was glad to see Marty's name pop up it the transcripts because I'd > never seen that before but know he was involved. I know Larry Heller > did work for LRH & CSC in the 70's and he and Marty were friends, too. > I used to work for Marty back before he retired to help LRH & corp > sortout full time.
> I see you are from NH, Marty's stomping grounds. Any idea how he is > doing? Is he still alive?
On Mar 12, 11:56 pm, "Out_Of_The_Dark" <xscilentolog...@yahoo.com> wrote:
> On Mar 12, 12:33 pm, "SME" <larrybren12...@aol.com> wrote:
> Excellent summary! Now can you clue me on what happened to matters > that no one got prosecuted and what significance and time line of > Meade Emory getting posted to CST has to all this.
Hiya Mary. As far as prosecutions goes, I'd be glad to chat about that on private channels. Let's just say that they have managed to settle cases before the truth got out or otherwise "handled" the opposition. And to this day, most attorneys will not touch a scientology case in part due to the huge costs associated with same (the church knows well how to make legal very, very costly to the opposition) or the harassment they have to deal with after in effect becoming "fair game" by fighting the church. As far as their "handling" some governmental bodies like the IRS goes, well I understand that is under investigation.
As for Meade and CST, there is much false information all over the web about this. I worked extensively with Meade as part of the corporate sortout. As well, Meade and some other attorneys and I were the first to meet with the top IRS reps after the corporate sortout, in their national offices in Washington D.C. Present for the IRS were some of their top people who were handling scientology cases such as Charlie Rump, Jean Gessay and Joe Tedesco (spelling on all of them = ?). It was a first step to try to start the process of "making peace" and I'm not so sure much came of it really. But Meade was helping in opening the door to at least talking due to his past positions within the IRS.
In my opinion Meade was a very good person and an excellent attorney. He was a partner in a Seattle law firm we used. Leon Misterix also was in that firm and, in my opinion, also was a very good man and excellent attorney. Lyman Spurlock worked with them on CST and RTC matters and I worked with them extensively as well. They were both key attorneys on the corporate sortout. But they were not hardly the only attorneys used, nor were they used to the extent some others were used.
The rumors of them somehow "taking over the church" are completely unfounded. I've seen the theories of how "the IRS" took over the church on behalf of the CIA so as to control the "advanced technology" for CIA remote viewing purposes. lol That is completely untrue. When I was Special Unit IC there was almost a meeting with the CIA but nothing came of it and it had nothing to do with the corporate sortout. RTC was even going to give me an "implant check" after I attended the meeting with the CIA, had we done it. (not kidding) How crazy would THAT have been! LOL Yes there is some "history" on this subject mentioned on the web but I can assure you that none of it had to do with the corporate sortout and controls of the church.
Some people forward the above theory and support it by pointing out how Meade and two other attorneys were "Special Directors" of CST.
Like so many things in scientology's corporate structure, that is misleading. Here is part of a post I made months ago on XSO that covers this subject:
"Here is a section of CST's bylaws that forwards this conspiracy to some who allege that this makes the special directors in control: "The Special Directors shall carry out their duties by approving or vetoing every resolution, vote, or act of the General Directors which in any way directly or indirectly affects the duties of the Special Directors set forth above. In addition, Special Directors may by unanimous vote direct the General Directors to consider any matter which comes within the scope of their duties, as outlined above".
Please note though two things about this paragraph:
1) those attorney special directors can approve or veto those actions that affect "the duties of the Special Directors"; and
2) they can direct the real directors to "consider" things.
So what are the duties of these "Special Directors" that they have this apparent power regarding? Well, I am glad you asked lol Per the bylaws they are:
"d. Particular Functions of the Special Directors. The Special Directors, acting by a majority of their authorized number are empowered to ensure the following: i. That the corporation attains tax exempt status, as soon as practical, and that such status is maintained throughout the existence of the corporation. ii. That no part of the corporation inure to the benefit of any private individual, firm or corporation. iii. That the assets of the corporation are not subject to waste and/ or extravagance but are instead increased in value. iv. That proper Scientology management is correctly applied to the end that the purposes of the corporation are accomplished".
This is mostly legal/tax stuff really when you boil it down. Furthermore, see the following bylaw section that shows these Special Directors can be handled by the regular, Scientologist, directors/ trustees:
"Any act of the Special Directors may be overridden by the unanimous vote of the General Directors and Trustees at a meeting specially called by any General Director in accordance Section 4 [sic] of this Article VII".
Also, there are strict requirements of being in good standing, done with OT VII or on it and being a classed auditor to be a regular director. Only someone in the licensed scientology church structure has a hope of qualifying for the real powers here.
There is more I can say on this to explain it further but trust me these guys DO NOT control scientology through the trademarks or otherwise".
Anyway, Mary that's the info relevant to that point about the attorneys and CST.
There are so many hidden little things written into the church's corporate docs to ensure that the "ecclesiastical authority" (meaning the top Sea Org management as run by DM) really controls it all. For example "proper Scientology management" must be applied in CST. Who determines what is "proper scientology management"? I guess that would go back to RTC huh? Another example is how the real directors and trustees who could legally control CST must be in good standing with the mother church. Well guess who is the "mother church"? It's CSI. Guess who has the real powers over CSI on things that matter? RTC. Guess who controls RTC? DM. lol This is actually overly simple. This whole corporate structure is nothing more than an alter ego of LRH (and now DM) of total, central control by DM while trying to hide the control and protect it from attack. There are more "veils" in that corporate setup than the highest Tibetan monastery has steps!
> And how did DM get > so much control when LRH seemed to be running everything throuh his > laweyers and accountants as I was always under the impression was the > case? Others seem to disagree in the past with this picture of > Emory?
See my earlier ars post about the real powers in scientology. It goes into the All Clear Unit run by DM and it's evolution into "special project" and "special unit" and then into ASI, RTC and CSI, etc. That pretty much covers that subject.
> Do you think DM had enough or equal dirt on the IRS by the > time the IRS had this dirt on Hubbard and CSC, that with Hubbard dead, > some deals could be made financially and contractually to keep the > church from meing fined and taxed into non existence?
As this goes into something under investigation and concerning which I do not have first hand information, there's not much I can say here. At this point it's up for speculation how they got that huge IRS settlement just after losing major cases to the IRS on the same matters. There have been postings about DM saying Hubbard would have to die in order to handle the IRS but I did not hear any such comments he may have made personally and cannot attest to the context.
They did pay the IRS $12,500,000 as part of that "settlement". I believe that DM thought/thinks that with LRH dead and "the past" of RRF, OTC, etc, "paid for" it is all over with the IRS. I believe he is wrong about that.
Also under investigation are all the submissions they made to the IRS as part of that whole process.
> I was glad to see Marty's name pop up it the transcripts because I'd > never seen that before but know he was involved. I know Larry Heller > did work for LRH & CSC in the 70's and he and Marty were friends, too. > I used to work for Marty back before he retired to help LRH & corp > sortout full time.
> I see you are from NH, Marty's stomping grounds. Any idea how he is > doing? Is he still alive?
Marty has more knowledge on the pre 1981 tax and legal history of all church entities than all people currently on staff in the church have. He was huge on IRS matters for years. There are only two people left on staff that have much real corporate/tax knowledge. Lyman Spurlock is one but his real knowledge starts in 1980. He understands more about "the corporate sortout" than DM or anyone in OSA. He was very conflicted right after the corporate sortout due to all of DM's demands of total control and of millions to Hubbard regularly (thus completely negating just about every bit of corporate integrity we tried to put in there with the corporate sortout). I always considered Lyman a good guy and I have no idea how it is that he has stuck it out with them, despite all the lies and abuses. I don't know Mary, he must really believe in scientology because he's got to know that the evidence he can produce can make a huge difference in righting wrongs. The other person I would prefer not to name here as I am hoping he/she can supply evidence of the truth as part of ongoing investigations.
Marty was not let be part of the corporate sortout that started in 81. So he was not involved in it. Yes he did live in NH when he worked in RealWorld and personally I consider him one of the nicest people I have ever known. I have zero connections with him now. I know he's a practicing scientologist and respect him too much to try
...
>> I am reading this thinking........"I cannot believe they actually >> tape recorded that meeting. " >> I am still reading it. >> I hope someone answers your question.
>Now you know why we did not record meetings when doing the corporate >sortout after MCCS! lol
>Gerry's post here is a very important one.
>Here we have various church staff from the Church of Scientology of >California on that MCCS mission (run by DM), the DG Legal WW and >various attorneys trying to work out some legal signifance for $2.1 >million that was funneled to Hubbard from a paper corporation (RRF) so >as to protect Hubbard legally and try not to show that revenues from >the church were in fact inureing to Hubbard's benefit and thus risk >tax exempt status for the church.
In December 1981, as part of the restructuring, SO staff were required to sign new "contracts," entitled "Declaration of Religious Commitment and Application for Active Participation on Church Staff." I was ordered to sign one for CSI, but I didn't and instead blew the cult.
The contract contained this "condition," which was very significant to me and hastened my exit:
[Quote]
I recognize and understand that neither Ron nor Mary Sue Hubbard receive any compensation or remuneration from training or processing by the Church, that that neither Ron nor Mary Sue Hubbard are officers or directors of the Church and that neither of them are in any manner responsible for actions of the Church.
[End Quote]
It was also significant in the trial in Scientology v. Armstrong in 1984, and significant, I believe, to Judge Breckenridge who stated in his judgment:
[Quote]
The organization clearly is schizophrenic and paranoid, and this bizarre combination seems to be a reflection of its founder LRH. The evidence portrays a man who has been virtually a pathological liar when it comes to his history, background, and achievements. The writings and documents in evidence additionally reflect his egoism, greed, avarice, lust for power, and vindictiveness and aggressiveness against persons perceived by him to be disloyal or hostile.
Were you involved in the creation of these staff contracts? And if so, what can you recall about the project?
I'm assembling some material relating to the fraud of "What your fees buy," and this condition in the staff contracts is part of the picture. Clearly, Hubbard for years had taken huge sums in compensation or remuneration from the organization, and I believe that all staff or former staff who believed what he stated in "What your fees buy" and believed what was stated in their staff contracts have a real fraud claim now that the admissions of inurement in the MCCS meeting transcript and your knowledge of the other millions paid to Hubbard are becoming public.
>As you can see just from this transcript: 1) the money was already >given to Hubbard; 2) it was given by a phony corporation (RRF) that >was banking all the monies paid by public from outside of the USA for >flag services; 3) they now needed to legally justify the money already >sent to Hubbard; 4) they were worried that this might show Hubbard was >controlling the church (which he was); 5) they were also worried about >the IRS auditing the church and were trying to back track and say flag >would be part of CSC (Church of Scientology of California); and 6) >they were worried of losing a chance at tax exempt status if they >could not come up with the signifance to legally justify the amount of >money to Hubbard as reasonable.
>This transcript very accurately shows the kind of discussions that >went on all the time as part of the corporate sortout after MCCS as >well. If you can imagine this and maybe 50 or more other >considerations as big or even bigger than this, you can get some idea >of the magnitude of things covered on that corporate sortout. >Sometimes we had meetings with 15 or more attorneys and CPA types to >go over different "problem areas". There would be some of the top >attorneys in the world addressing such issues as the above (tax exempt >status, gutting CSC of assets, dealing with the fact that Hubbard was >controlling things and matters involving other potential real problems >with the IRS and damages claimants). So much was woven into that >"corporate sortout" that had to do with corporate, taxes, intellectual >property rights, contracts, trusts, controls, etc.
>Basically there were real problems because Hubbard really was the one >controlling organized scientology and there was a great deal of money >funneled to him for his private benefit for which there was no really >defensible legal signifance. Additionally, a large part of the >church's "eggs" were in fact in the CSC corporate basket (flag, AOLA, >ASHO, LA Org, San Francisco Org, USGO and really all of top >management, including CMO). On top of all that, there was no real >corporate integrity throughout organized scientology, the GO had >undated resignations of all corporate officers and board members of >all church corporations throughout the world and, frankly, most local >staffs who were legally in such positions didn't even know it .Couple >this with the facts that the IRS was breathing down CSC's corporate >neck and there were many damages cases looming and you have a legal >mess.
>I state the above to point just how real those issues were in the >transcript Gerry just posted.
>Now, without going into details, here's the real kicker:
>The "corporate sortout" was done in late 81 through 82, with various >other pieces following. Millions was spent to cover all legal issues >and get it right and "defensible". The net result included the >following:
>1) CSI comes out as the new "mother church" and all churches of >scientology signing agreements acknowledging same. What is supposed to >be "top management" is put in CSI. This ends up including CMO Int/WDC, >the ED Int's Office and OSA;
>2) The orgs that were once the big revenue-producing arms of CSC >(flag, AOLA, ASHO, LA Org and San Francisco org) become separate >corporations. They, like other orgs, are managed by CSI;
>3) SMI exists and licenses missions and SMI is managed out of CSI;
>4) WISE exists and gets involved with "putting ethics" in various >businesses run by scientologists and WISE is managed out of CSI;
>5) RTC is created as a "non management body" to see to the proper >usage of all the trademarks and service marks. It hold various rights >to the usage of the trade/service marks and, through it, all orgs >(including CSI) are licensed to use them;
>6) CST gets created to eventually receive most of Hubbard's fortune, >the rights to his copyrights, etc and will work on the "preservation" >of the tech. Very important is that CST, for $100, can take all rights >to the trademarks and service marks from RTC should they ever be at >risk in RTC. If needed, CST could then license the churches itself or >create and license another body like RTC;
>7) ASI (Author Services) is setup to manage Hubbard fiction works and >otherwise his copyrighted works as a for profit corporation. It is to >take all that out of the church corporately. It is to have nothing to >do with the management of the church. Later, Author Services is to >become owned by CST;
>8) The Publications organizations (Bridge in the USA and New Era in >Denmark) then deal mostly with the manufacture and distribution of >Hubbard's works related to dianetics and scientology. They have >royalty contracts with Hubbard. Later, both organizations are owned by >a non profit "trust";
>9) many trusts are established, more come later, to receive monies >from various churches. They are set up as non profit. (For example, a >films trust is set up to receive a portion of each church's revenues >weekly "in exchange for" the churches being allowed to show the films >to their staffs and public);
>10) old "problem" entities are eventually gotten rid of (RRF, OTC, >CSC, etc.). For example, the last of the monies in OTC that did not >end up inuring to Hubbard's benefit were transferred to a "non profit" >trust, CSC is let to die a financial death as all its assets were >stripped out of it;
>11) IAS gets setup to get millions directly from any scientology >public that hope to be able to do services again in churches;
>12) additional little fancy legal steps are taken later to further >spread out the money into various trusts and a company is setup in the >UK that is staffed by Sea Org members to help "manage" the reserves of >individual churches.
>Whew! lol My point is that what was once basically CSC with all the >legal problems mentioned above is now most of those things above. What >were both CSC's and hidden funds before are now neatly spread out >around the world in various trusts and such. What was legally >confusing before (the legal status and control of the publications >orgs, non US public monies to flag, the licensing of trademarks, the >legal "distinctions" between Hubbard's and the church's interests, >etc.) are now more clarified and "defensible".
Thanks to you both, Gerry and SME for the information, answers and efforts to get the truth out. Your posts on this thread really helped put things in a perspective that aligned with the information I already knew and facts that I have read before. Keep us informed when you can. :)
>It was also significant in the trial in Scientology v. Armstrong in >1984, and significant, I believe, to Judge Breckenridge who stated in >his judgment:
>[Quote]
>The organization clearly is schizophrenic and paranoid, and this >bizarre combination seems to be a reflection of its founder LRH. The >evidence portrays a man who has been virtually a pathological liar >when it comes to his history, background, and achievements. The >writings and documents in evidence additionally reflect his egoism, >greed, avarice, lust for power, and vindictiveness and aggressiveness >against persons perceived by him to be disloyal or hostile.
> In December 1981, as part of the restructuring, SO staff were required > to sign new "contracts," entitled "Declaration of Religious Commitment > and Application for Active Participation on Church Staff." I was > ordered to sign one for CSI, but I didn't and instead blew the cult.
> The contract contained this "condition," which was very significant to > me and hastened my exit:
> [Quote]
> I recognize and understand that neither Ron nor Mary Sue Hubbard > receive any compensation or remuneration from training or processing > by the Church, that that neither Ron nor Mary Sue Hubbard are officers > or directors of the Church and that neither of them are in any manner > responsible for actions of the Church.
> [End Quote]
> It was also significant in the trial in Scientology v. Armstrong in > 1984, and significant, I believe, to Judge Breckenridge who stated in > his judgment:
> [Quote]
> The organization clearly is schizophrenic and paranoid, and this > bizarre combination seems to be a reflection of its founder LRH. The > evidence portrays a man who has been virtually a pathological liar > when it comes to his history, background, and achievements. The > writings and documents in evidence additionally reflect his egoism, > greed, avarice, lust for power, and vindictiveness and aggressiveness > against persons perceived by him to be disloyal or hostile.
> Were you involved in the creation of these staff contracts? And if so, > what can you recall about the project?
The new staff contracts were part of the corporate sortout that we did. The dating in early Dec 81 was to coincide with the date that we picked for CSI to start as the new mother church. It was a tiny piece of a bigger puzzle to put in the new structure.
As of that date we took all who were in CSC and determined which staff would go to which of the new corporations (CSI, FSO, LAO, ASHO, AOLA, etc.) and who would stay in CSC.
You were obviously chosen to be a CSI staff member so got that CSI contract.
All I can say about the lies about LRH not getting any such compensation was that those of us who really designed the corporate structure with the attorneys and accountants for DM and LRH thought that was to be the case from that point on. It turned out to be far from the truth. DM grilled me on points of control and LRH's ability to run things in approving the corporate plans but by the end of my meeting him, I really thought things would in fact change for the better and corporate integrity would truly go in. Looking back on that meeting now, I should have seen what was coming.
I, with another, had done an evaluation in Aug 81 showing how the ecclesiastical and corporate structures were so unaligned and sent it up through DM to Hubbard for approval. We were hoping to "educate" on the need for changes with that eval. I was then picked for corporate sortout. For what it is worth, there truly was an intention on the part of a number of us to get it right this time but, unfortunately DM had other plans.
Once the structure was implemented, DM started demanding money to Hubbard weekly. In courts DM later positioned himself for that time period as having been in ASI representing Hubbard with no control whatsoever over the church corporations such as CSI and RTC. If you follow what DM said in courts you would think that the next two years after the corporate sortout he was somehow "negotiating" with us in CSI on matters that might have to do with funds to Hubbard or anything else. Also he says that those in ASI, as they represented Hubbard, were doing some "coordination" with us in CSI with regard suits that might also include Hubbard.
Nothing could be further from the truth. As regards the suits, he and Norman Starkey fully took over running the CSI area dealing with the suits. This was a CSI department heading by Marty Rathbun who was then "Special Unit Litigation Execution". ASI gave all the orders on how to handle the suits and what CSI or any other church corporations would file or otherwise do with the suits.
As far as the money to Hubbard goes, DM also lied in courts when he said the above. The facts are throughout 82 and into 83 DM was ordering us to "legally justify" money to Hubbard regularly. Instead of negotiating on behalf of Hubbard from his position in ASI, DM was ordering the funds be paid regularly and often. Lyman Spurlock in ASI and I in CSI desperately tried weekly to come up with legal significances that were justifiable to cover the monies that DM ordered be sent to Hubbard. We tried to query the orders but DM responded that they had to be "made legal" and that the funds were going whether we made them legal or not and threatened non compliance with strangulation and worse. Many details of this will be disclosed shortly.
There were times that Lyman was over with me in the Special Unit conference room totally exasperated as we laid on the floor exhausted listening on the conference phone to this week's ASI demands for money to Hubbard and how we had to come up with legal justifications. Lyman and I both knew that DM was just killing all the legal defenses that we had just spent millions working out to put in a real, defensible corporate structure and to keep Hubbard and Church interests separated. We tried every trick in the book to legally justify things and tried to get DM to stop with the insane money demands to Hubbard but he would just not listen.
I figured that through 1982 several million dollars for Hubbard was taken by DM and perhaps there was some chance we could defend much of it legally and still consider the church corporations tax exempt. Imagine my shock when years later I find in 1982 alone, DM took over $40 million of it. Jeeze he just took much of it and did not even TRY to go through us anymore. He just took it! And he was in ASI when he took it.
So the truth is Gerry that DM's actions as above made a total mockery of that part of the staff "contract". It ended up being a fraud..
DM even spit on, beat and /or otherwise abused his own ASI people (see Homer Shomer docs for an example) if he considered they were not getting Hubbard enough money or losing money that could be Hubbard's. Every time we put in a corporate structure, DM would violate it. He ran a reign of terror from ASI. His alleged "non involvement" in church management when he was in ASI and just "coordinating" and "negotiating" with the church included such things as ordering who would run RTC, who would run the key parts of CSI (WDC/CMO Int for example) and then running those people himself and deciding who of them got busted. This included things like him going to Int and spitting on top church WDC/CMO Int executives, punching in the mouth hard, slapping across the face hard and choking hard. And, again, this was in the time period he says in court he was in ASI and not involved in running the church.
And all this information is just the very tip of the iceberg.
All our corporate work went for naught and the man that destroyed it all, DM, was the one to testify later about how separate the corporations were and how he did not in fact run corporations other than the one he was in.
Most people would be shocked to find out how much they have gotten away with in theirs lies in many forums outside of the courts. I have been being interviewed by a number of people recently and another is flying in to spend two days with me shortly just to understand some things that happened. None of them have any real grasp of what happened in 81/82 nor about the corporate scene there, even though some have written about them and are doing articles, shows or books now. One told me that he/she was told by a very top person in OSA (who I am not naming now) that the following "proved" scientology was "religious":
1) "scientology" is incorporated as a "religious corporation"; and 2) the Mormon church is incorporated as a "religious corporation"; and 3) both "scientology" and the Mormons have been persecuted; and 4) the Mormons are religious; and therefore 5) "scientology" is religious.
Aside from the fact that "scientology" is not incorporated, nor is there a category for "religious corporations", OMG where does one even start with that one!? lol I had a ball debunking that with him/her. So when even something as ridiculously simple as this is confusing to some writers, just imagine what confusions their big, complex corporate structure is doing to back off other writers from looking at it. Even many people with a more than average legal background often buy into their lies as they just cannot understand it.
> I'm assembling some material relating to the fraud of "What your fees > buy," and this condition in the staff contracts is part of the > picture. Clearly, Hubbard for years had taken huge sums in > compensation or remuneration from the organization, and I believe that > all staff or former staff who believed what he stated in "What your > fees buy" and believed what was stated in their staff contracts have a > real fraud claim now that the admissions of inurement in the MCCS > meeting transcript and your knowledge of the other millions paid to > Hubbard are becoming public.
Well, Gerry, consider the above my long winded way of agreeing with you that, thanks to DM, that part of the staff contract and the issue covering "What your fees buy" was a total fraud. It was before "the corporate sortout" in 1981 and, despite millions spent to remedy it, DM made it even worse after 1981.
>> On Mar 13, 4:42 pm, Gerry Armstrong <g...@gerryarmstrong.org> wrote:
>> > In December 1981, as part of the restructuring, SO staff were required >> > to sign new "contracts," entitled "Declaration of Religious Commitment >> > and Application for Active Participation on Church Staff." I was >> > ordered to sign one for CSI, but I didn't and instead blew the cult.
>> > The contract contained this "condition," which was very significant to >> > me and hastened my exit:
>> > [Quote]
>> > I recognize and understand that neither Ron nor Mary Sue Hubbard >> > receive any compensation or remuneration from training or processing >> > by the Church, that that neither Ron nor Mary Sue Hubbard are officers >> > or directors of the Church and that neither of them are in any manner >> > responsible for actions of the Church.
>> > [End Quote]
>> > It was also significant in the trial in Scientology v. Armstrong in >> > 1984, and significant, I believe, to Judge Breckenridge who stated in >> > his judgment:
>> > [Quote]
>> > The organization clearly is schizophrenic and paranoid, and this >> > bizarre combination seems to be a reflection of its founder LRH. The >> > evidence portrays a man who has been virtually a pathological liar >> > when it comes to his history, background, and achievements. The >> > writings and documents in evidence additionally reflect his egoism, >> > greed, avarice, lust for power, and vindictiveness and aggressiveness >> > against persons perceived by him to be disloyal or hostile.
>> > Were you involved in the creation of these staff contracts? And if so, >> > what can you recall about the project?
>> The new staff contracts were part of the corporate sortout that we >> did. The dating in early Dec 81 was to coincide with the date that we >> picked for CSI to start as the new mother church. It was a tiny piece >> of a bigger puzzle to put in the new structure.
>> As of that date we took all who were in CSC and determined which staff >> would go to which of the new corporations (CSI, FSO, LAO, ASHO, AOLA, >> etc.) and who would stay in CSC.
>> You were obviously chosen to be a CSI staff member so got that CSI >> contract.
>> All I can say about the lies about LRH not getting any such >> compensation was that those of us who really designed the corporate >> structure with the attorneys and accountants for DM and LRH thought >> that was to be the case from that point on. It turned out to be far >> from the truth. DM grilled me on points of control and LRH's ability >> to run things in approving the corporate plans but by the end of my >> meeting him, I really thought things would in fact change for the >> better and corporate integrity would truly go in. Looking back on that >> meeting now, I should have seen what was coming.
>> I, with another, had done an evaluation in Aug 81 showing how the >> ecclesiastical and corporate structures were so unaligned and sent it >> up through DM to Hubbard for approval. We were hoping to "educate" on >> the need for changes with that eval. I was then picked for corporate >> sortout. For what it is worth, there truly was an intention on the >> part of a number of us to get it right this time but, unfortunately DM >> had other plans.
>> Once the structure was implemented, DM started demanding money to >> Hubbard weekly. In courts DM later positioned himself for that time >> period as having been in ASI representing Hubbard with no control >> whatsoever over the church corporations such as CSI and RTC. If you >> follow what DM said in courts you would think that the next two years >> after the corporate sortout he was somehow "negotiating" with us in >> CSI on matters that might have to do with funds to Hubbard or anything >> else. Also he says that those in ASI, as they represented Hubbard, >> were doing some "coordination" with us in CSI with regard suits that >> might also include Hubbard.
>> Nothing could be further from the truth. As regards the suits, he and >> Norman Starkey fully took over running the CSI area dealing with the >> suits. This was a CSI department heading by Marty Rathbun who was then >> "Special Unit Litigation Execution". ASI gave all the orders on how to >> handle the suits and what CSI or any other church corporations would >> file or otherwise do with the suits.
>> As far as the money to Hubbard goes, DM also lied in courts when he >> said the above. The facts are throughout 82 and into 83 DM was >> ordering us to "legally justify" money to Hubbard regularly. Instead >> of negotiating on behalf of Hubbard from his position in ASI, DM was >> ordering the funds be paid regularly and often. Lyman Spurlock in ASI >> and I in CSI desperately tried weekly to come up with legal >> significances that were justifiable to cover the monies that DM >> ordered be sent to Hubbard. We tried to query the orders but DM >> responded that they had to be "made legal" and that the funds were >> going whether we made them legal or not and threatened non compliance >> with strangulation and worse. Many details of this will be disclosed >> shortly.
>> There were times that Lyman was over with me in the Special Unit >> conference room totally exasperated as we laid on the floor exhausted >> listening on the conference phone to this week's ASI demands for money >> to Hubbard and how we had to come up with legal justifications. Lyman >> and I both knew that DM was just killing all the legal defenses that >> we had just spent millions working out to put in a real, defensible >> corporate structure and to keep Hubbard and Church interests >> separated. We tried every trick in the book to legally justify things >> and tried to get DM to stop with the insane money demands to Hubbard >> but he would just not listen.
>> I figured that through 1982 several million dollars for Hubbard was >> taken by DM and perhaps there was some chance we could defend much of >> it legally and still consider the church corporations tax exempt. >> Imagine my shock when years later I find in 1982 alone, DM took over >> $40 million of it. Jeeze he just took much of it and did not even TRY >> to go through us anymore. He just took it! And he was in ASI when he >> took it.
>> So the truth is Gerry that DM's actions as above made a total mockery >> of that part of the staff "contract". It ended up being a fraud..
>> DM even spit on, beat and /or otherwise abused his own ASI people (see >> Homer Shomer docs for an example) if he considered they were not >> getting Hubbard enough money or losing money that could be Hubbard's. >> Every time we put in a corporate structure, DM would violate it. He >> ran a reign of terror from ASI. His alleged "non involvement" in >> church management when he was in ASI and just "coordinating" and >> "negotiating" with the church included such things as ordering who >> would run RTC, who would run the key parts of CSI (WDC/CMO Int for >> example) and then running those people himself and deciding who of >> them got busted. This included things like him going to Int and >> spitting on top church WDC/CMO Int executives, punching in the mouth >> hard, slapping across the face hard and choking hard. And, again, >> this was in the time period he says in court he was in ASI and not >> involved in running the church.
>> And all this information is just the very tip of the iceberg.
>> All our corporate work went for naught and the man that destroyed it >> all, DM, was the one to testify later about how separate the >> corporations were and how he did not in fact run corporations other >> than the one he was in.
>> Most people would be shocked to find out how much they have gotten >> away with in theirs lies in many forums outside of the courts. I have >> been being interviewed by a number of people recently and another is >> flying in to spend two days with me shortly just to understand some >> things that happened. None of them have any real grasp of what >> happened in 81/82 nor about the corporate scene there, even though >> some have written about them and are doing articles, shows or books >> now. One told me that he/she was told by a very top person in OSA (who >> I am not naming now) that the following "proved" scientology was >> "religious":
>> 1) "scientology" is incorporated as a "religious corporation"; and >> 2) the Mormon church is incorporated as a "religious corporation"; >> and >> 3) both "scientology" and the Mormons have been persecuted; and >> 4) the Mormons are religious; and therefore >> 5) "scientology" is religious.
>> Aside from the fact that "scientology" is not incorporated, nor is >> there a category for "religious corporations", OMG where does one even >> start with that one!? lol I had a ball debunking that with him/her. >> So when even something as ridiculously simple as this is confusing to >> some writers, just imagine what confusions their big, complex >> corporate structure is doing to back off other writers from looking at >> it. Even many people with a more than average legal background often >> buy into their lies as they just cannot understand it.
>> > I'm assembling some material relating to the fraud of "What your fees >> > buy," and this condition in the staff contracts is part of the >> > picture. Clearly, Hubbard for years had taken huge sums in
On Mar 14, 2:27 pm, "SME" <larrybren12...@aol.com> wrote:
> On Mar 13, 4:42 pm, Gerry Armstrong <g...@gerryarmstrong.org> wrote:
Gerry, your postings are no proof. I know that you are not honest.
---- Number one suspect of being Wikipiggy smearer, defamer, and harasser "Orsini" is Canadian Kady O'Malley. She defamed not only Mark (Marty) Rathbun and I - but according to this website, O'Malley is specialized of harassing Scientologists: http://www.religiousfreedomwatch.com/anti-religious-extremists/kady-o...
These fanatical people are protected by a Wikipedia administrator from England, with name Christopher Owens. Chris Owens is biased towards Scientology and Scientologists and uses his bias to protect defamers and harassers on Wikipedia and assist them in defaming Scientology and Scientologists. He never bans any fanatical and harassing anti- Scientologist from Wikipedia but Scientologists are banned for nothing else but being Scientologists. Even non-Scientologists are banned from Wikipedia, if they don't hate Scientology or Scientologists.
> On Mar 12, 12:33 pm, "SME" <larrybren12...@aol.com> wrote:
> Excellent summary! Now can you clue me on what happened to matters > that no one got prosecuted and what significance and time line of > Meade Emory getting posted to CST has to all this. And how did DM get > so much control when LRH seemed to be running everything throuh his > laweyers and accountants as I was always under the impression was the > case? Others seem to disagree in the past with this picture of > Emory? Do you think DM had enough or equal dirt on the IRS by the > time the IRS had this dirt on Hubbard and CSC, that with Hubbard dead, > some deals could be made financially and contractually to keep the > church from meing fined and taxed into non existence?
> I was glad to see Marty's name pop up it the transcripts because I'd > never seen that before but know he was involved. I know Larry Heller > did work for LRH & CSC in the 70's and he and Marty were friends, too. > I used to work for Marty back before he retired to help LRH & corp > sortout full time.
> I see you are from NH, Marty's stomping grounds. Any idea how he is > doing? Is he still alive?
> Thanks so much for the summary.
> Mary Out_Of_The Dark
Your name is not Mary, you are not even a woman, gay perhaps - but no woman. You don't know Marty, and what kind of new rumor do you spin by claiming that Marty worked in NH (New Hampshire?)
Get a life!
---- Number one suspect of being Wikipiggy smearer, defamer, and harasser "Orsini" is Canadian Kady O'Malley. She defamed not only Mark (Marty) Rathbun and I - but according to this website, O'Malley is specialized of harassing Scientologists: http://www.religiousfreedomwatch.com/anti-religious-extremists/kady-o...
These fanatical people are protected by a Wikipedia administrator from England, with name Christopher Owens. Chris Owens is biased towards Scientology and Scientologists and uses his bias to protect defamers and harassers on Wikipedia and assist them in defaming Scientology and Scientologists. He never bans any fanatical and harassing anti- Scientologist from Wikipedia but Scientologists are banned for nothing else but being Scientologists. Even non-Scientologists are banned from Wikipedia, if they don't hate Scientology or Scientologists.
"Barbara Schwarz" <barbara.schw...@gmail.com> wrote in message
news:1173938480.446943.75030@p15g2000hsd.googlegroups.com... | On Mar 14, 2:27 pm, "SME" <larrybren12...@aol.com> wrote: | > On Mar 13, 4:42 pm, Gerry Armstrong <g...@gerryarmstrong.org> wrote: | | Gerry, your postings are no proof. I know that you are not honest.
Barbara:
I guess I should have known that even *WEEKS* since I last glimpsed at your gospel like writings I still find you HERE on A.R.S. "tearing critics to shreds".
I am not going to put you down but *I* did read that Mary Sue Hubbard was very upset when she learned that Gerald Armstrong had *forgotten* to return the project he was working on for the Hubbard's to their offices after he left the Sea Org. I imagine L. Ron Hubbard was very upset as well, hence David Miscavige becomes very upset HENCE Gerald Armstrong is delcared an SP. Well, what else is new?
> > > So, millions to hubbard, he's dead. Did that money come back in, in the > > > trusts?
> > > a
> > You mean *visibly*?
> > Doubtful.
> > That'd be like washing clean socks :)
> > Zinj
> Well kinda my point. Follow the money. Pull the string. Dont be stuck in > 1982.
> Hubbards dead.
> Just what is the larger picture here?
> We know the cia didnt take over the church......
> Fresh clean money.....???
> a
Well, 'follow the money', while a laudable aim is somewhat akin to 'just jump in the black hole; it's that simple!' for Joe Private Citizen.
The public at large does not have subpoena, arrest or prosecutorial powers such as 'search warrants'; nor the ability to order wire-taps, raids or cut deals with 'informers' except through their lawful representatives in police and other investigatorial agencies.
Unfortunately, those agencies have tended to be lax in the enforcement of already existing legal machinery with regards to the 'Church' of Scientology, whether out of actual corruption (through the 'Church') or merely fear of extortion (kind of 'meta-extortion' :) or fear of budget-busting-can-of-wormism.
Still; with enough public awareness and pressure they may begin to do their jobs, and, that's the point.
Nothing says 'RICO' like Scientology.
Zinj -- You Can Lead a Clam to Reason; but You Can't Make Him Think
If your point in that posting was humor, well fair enough, I suspose it is funny that I am listed on that site as a scientologist from NH who had one of those boilerplate scientologist's sites. I sure did.
I wonder how many others are listed on there whose links also haven't worked for years and who are no longer scientologists.
In this same line of humor, want to see something else funny? Look in the current version of IMPACT (#115). I am listed there as a patron. I wonder how many others that are no longer involved with scientology practices are also listed as IAS members?
Makes one think the numbers are somewhat inflated huh?
It's kind of cool being able to operate freely and openly on here and elsewhere and just be honest about who you are. That's why I use my email of larrybren12...@aol.com on here.
Are you listed in any such publications? Care to share who you are as well?
It's really quite liberating to be out in the open Alex. You should try it:)
> > > > > So, millions to hubbard, he's dead. Did that money come back in, in the > > > > > trusts?
> > > > > a
> > > > You mean *visibly*?
> > > > Doubtful.
> > > > That'd be like washing clean socks :)
> > > > Zinj
> > > Well kinda my point. Follow the money. Pull the string. Dont be stuck in > > > 1982.
> > > Hubbards dead.
> > > Just what is the larger picture here?
> > > We know the cia didnt take over the church......
> > > Fresh clean money.....???
> > > a
> > Well, 'follow the money', while a laudable aim is somewhat akin > > to 'just jump in the black hole; it's that simple!' for Joe > > Private Citizen.
> > The public at large does not have subpoena, arrest or > > prosecutorial powers such as 'search warrants'; nor the ability > > to order wire-taps, raids or cut deals with 'informers' except > > through their lawful representatives in police and other > > investigatorial agencies.
> > Unfortunately, those agencies have tended to be lax in the > > enforcement of already existing legal machinery with regards to > > the 'Church' of Scientology, whether out of actual corruption > > (through the 'Church') or merely fear of extortion (kind of > > 'meta-extortion' :) or fear of budget-busting-can-of-wormism.
> > Still; with enough public awareness and pressure they may begin > > to do their jobs, and, that's the point.
> If your point in that posting was humor, well fair enough, I suspose > it is funny that I am listed on that site as a scientologist from NH > who had one of those boilerplate scientologist's sites. I sure did.
> I wonder how many others are listed on there whose links also haven't > worked for years and who are no longer scientologists.
> In this same line of humor, want to see something else funny? Look in > the current version of IMPACT (#115). I am listed there as a patron. I > wonder how many others that are no longer involved with scientology > practices are also listed as IAS members?
> Makes one think the numbers are somewhat inflated huh?
> It's kind of cool being able to operate freely and openly on here and > elsewhere and just be honest about who you are. That's why I use my > email of larrybren12...@aol.com on here.
> Are you listed in any such publications? Care to share who you are as > well?
> It's really quite liberating to be out in the open Alex. You should > try it:)
> Take care, > SME
Nice to meet you Larry :)
Zinj (Joe Lynn) -- You Can Lead a Clam to Reason; but You Can't Make Him Think
> > I am reading this thinking........"I cannot believe they actually > > tape recorded that meeting. " > > I am still reading it. > > I hope someone answers your question.
> Now you know why we did not record meetings when doing the corporate > sortout after MCCS! lol
> Gerry's post here is a very important one.
> Here we have various church staff from the Church of Scientology of > California on that MCCS mission (run by DM), the DG Legal WW and > various attorneys trying to work out some legal signifance for $2.1 > million that was funneled to Hubbard from a paper corporation (RRF) so > as to protect Hubbard legally and try not to show that revenues from > the church were in fact inureing to Hubbard's benefit and thus risk > tax exempt status for the church.
> As you can see just from this transcript: 1) the money was already > given to Hubbard; 2) it was given by a phony corporation (RRF) that > was banking all the monies paid by public from outside of the USA for > flag services; 3) they now needed to legally justify the money already > sent to Hubbard; 4) they were worried that this might show Hubbard was > controlling the church (which he was); 5) they were also worried about > the IRS auditing the church and were trying to back track and say flag > would be part of CSC (Church of Scientology of California); and 6) > they were worried of losing a chance at tax exempt status if they > could not come up with the signifance to legally justify the amount of > money to Hubbard as reasonable.
> This transcript very accurately shows the kind of discussions that > went on all the time as part of the corporate sortout after MCCS as > well. If you can imagine this and maybe 50 or more other > considerations as big or even bigger than this, you can get some idea > of the magnitude of things covered on that corporate sortout. > Sometimes we had meetings with 15 or more attorneys and CPA types to > go over different "problem areas". There would be some of the top > attorneys in the world addressing such issues as the above (tax exempt > status, gutting CSC of assets, dealing with the fact that Hubbard was > controlling things and matters involving other potential real problems > with the IRS and damages claimants). So much was woven into that > "corporate sortout" that had to do with corporate, taxes, intellectual > property rights, contracts, trusts, controls, etc.
> Basically there were real problems because Hubbard really was the one > controlling organized scientology and there was a great deal of money > funneled to him for his private benefit for which there was no really > defensible legal signifance. Additionally, a large part of the > church's "eggs" were in fact in the CSC corporate basket (flag, AOLA, > ASHO, LA Org, San Francisco Org, USGO and really all of top > management, including CMO). On top of all that, there was no real > corporate integrity throughout organized scientology, the GO had > undated resignations of all corporate officers and board members of > all church corporations throughout the world and, frankly, most local > staffs who were legally in such positions didn't even know it .Couple > this with the facts that the IRS was breathing down CSC's corporate > neck and there were many damages cases looming and you have a legal > mess.
> I state the above to point just how real those issues were in the > transcript Gerry just posted.
> Now, without going into details, here's the real kicker:
> The "corporate sortout" was done in late 81 through 82, with various > other pieces following. Millions was spent to cover all legal issues > and get it right and "defensible". The net result included the > following:
> 1) CSI comes out as the new "mother church" and all churches of > scientology signing agreements acknowledging same. What is supposed to > be "top management" is put in CSI. This ends up including CMO Int/WDC, > the ED Int's Office and OSA;
> 2) The orgs that were once the big revenue-producing arms of CSC > (flag, AOLA, ASHO, LA Org and San Francisco org) become separate > corporations. They, like other orgs, are managed by CSI;
> 3) SMI exists and licenses missions and SMI is managed out of CSI;
> 4) WISE exists and gets involved with "putting ethics" in various > businesses run by scientologists and WISE is managed out of CSI;
> 5) RTC is created as a "non management body" to see to the proper > usage of all the trademarks and service marks. It hold various rights > to the usage of the trade/service marks and, through it, all orgs > (including CSI) are licensed to use them;
> 6) CST gets created to eventually receive most of Hubbard's fortune, > the rights to his copyrights, etc and will work on the "preservation" > of the tech. Very important is that CST, for $100, can take all rights > to the trademarks and service marks from RTC should they ever be at > risk in RTC. If needed, CST could then license the churches itself or > create and license another body like RTC;
> 7) ASI (Author Services) is setup to manage Hubbard fiction works and > otherwise his copyrighted works as a for profit corporation. It is to > take all that out of the church corporately. It is to have nothing to > do with the management of the church. Later, Author Services is to > become owned by CST;
> 8) The Publications organizations (Bridge in the USA and New Era in > Denmark) then deal mostly with the manufacture and distribution of > Hubbard's works related to dianetics and scientology. They have > royalty contracts with Hubbard. Later, both organizations are owned by > a non profit "trust";
> 9) many trusts are established, more come later, to receive monies > from various churches. They are set up as non profit. (For example, a > films trust is set up to receive a portion of each church's revenues > weekly "in exchange for" the churches being allowed to show the films > to their staffs and public);
> 10) old "problem" entities are eventually gotten rid of (RRF, OTC, > CSC, etc.). For example, the last of the monies in OTC that did not > end up inuring to Hubbard's benefit were transferred to a "non profit" > trust, CSC is let to die a financial death as all its assets were > stripped out of it;
> 11) IAS gets setup to get millions directly from any scientology > public that hope to be able to do services again in churches;
> 12) additional little fancy legal steps are taken later to further > spread out the money into various trusts and a company is setup in the > UK that is staffed by Sea Org members to help "manage" the reserves of > individual churches.
> Whew! lol My point is that what was once basically CSC with all the > legal problems mentioned above is now most of those things above. What > were both CSC's and hidden funds before are now neatly spread out > around the world in various trusts and such. What was legally > confusing before (the legal status and control of the publications > orgs, non US public monies to flag, the licensing of trademarks, the > legal "distinctions" between Hubbard's and the church's interests, > etc.) are now more clarified and "defensible".
> So this sounds kind of neat huh? Quite a sophisticated legal setup > compared to the old CSC days!!
> For some people, this evolution was supposed to be a new legal > beginning where things could be legally clear, Hubbard's and the > church's interests separated and legally defensible and the church > itself having a legal structure that no one could topple. And it would > be a "new era" in that management would go in to actually mirror the > corporate structure. By that I mean, things like the following would > really happen:
> 1) CSI, through the likes of CMO Int and the ED Int's office would > manage scientology orgs, missions and the like;
> 2) a body would exist that is truly not management called "RTC" and it > would simply focus on the "pureness" of the technology covered by the > trademarks;
> 3) money could go to Hubbard, not by cover up and lies, but actually > via legally defensible channels, such as market-based royalties, that > could be shown to the likes of the IRS;
> 4) ASI would truly be an organization that does what it says it does, > which is make money on his fiction works, etc. It would be separate > from the church and not in any way be involved in the management of > the church.
> So, did this happen? Were lessons like those covered in the transcript > finally learned and would this now be a corporate structure that > reflects the actual operating reality of the church? Could the church > now legally take responsibility for its past tax and other financial > frauds, pay what it must to the IRS, etc. and start a new, honest > life? Now that the GO is disbanded, is it truly a new era without > dirty tricks, illegal actions and the like? Was this the beginning of > real and honest "church" expansion, in effect a new era for growth?
> Not even close!
> 1.Remember the $2.1 million sent to Hubbard they were trying to deal > with as covered in that transcript? Quite a huge problem right? Guess > what? In 1982 alone, with the GO now out of the way, DM sees that over > $40 million is funneled to Hubbard from his position in ASI. Not $2,1 > million, $40+++ million! There is no longer any kind of "check and > balance" to any degree within organized scientology. The GO is gone > and DM can do
> > It's really quite liberating to be out in the open Alex. You should > > try it:)
> > Take care, > > SME
> Yes, I did find it a bit ironic that you are plotting the downfall of > the pope of scientology, while the entrenched bureaucracy under him > still uses what they have left of you for their own aims.
> So.....did the $40 milliion come back via the trusts.....
> :)
> a
but Alex... I don't understand!
According to your *own* cover-story, you too are 'plotting the downfall' of the 'Pope of Scientology' (was his 'white smoke' from the crematorium?)
Or, at least you are 'working to change' Scientology in some super-subtle way that I don't doubt Davey would consider equally objectionable, unless it were so subtle as to be non-existent...
Zinj -- You Can Lead a Clam to Reason; but You Can't Make Him Think
>> If your point in that posting was humor, well fair enough, I suspose >> it is funny that I am listed on that site as a scientologist from NH >> who had one of those boilerplate scientologist's sites. I sure did.
>> I wonder how many others are listed on there whose links also haven't >> worked for years and who are no longer scientologists.
>> In this same line of humor, want to see something else funny? Look in >> the current version of IMPACT (#115). I am listed there as a patron. I >> wonder how many others that are no longer involved with scientology >> practices are also listed as IAS members?
>> Makes one think the numbers are somewhat inflated huh?
>> It's kind of cool being able to operate freely and openly on here and >> elsewhere and just be honest about who you are. That's why I use my >> email of larrybren12...@aol.com on here.
>> Are you listed in any such publications? Care to share who you are as >> well?
>> It's really quite liberating to be out in the open Alex. You should >> try it:)
>> Take care, >> SME
>Yes, I did find it a bit ironic that you are plotting the downfall of >the pope of scientology, while the entrenched bureaucracy under him >still uses what they have left of you for their own aims.
>So.....did the $40 milliion come back via the trusts.....
Sort of what the Miscavige regime did with Lisa McPherson once she was dead too, hey "Alex?"
Once they killed her they cleaned out her bank account.
Once Hubbard was dead they cleaned out his bank account, right?
In both cases they'd call it the ethical thing to do. It does seem you're claiming that Miscavige taking Hubbard's money after he was dead was the right thing to do.
So DM, really, not only had a power and control motivation to murder the old man but a money motivation too, right?
He certainly acts like a guy with murder as a missed withhold.