Scientology pressed woman to sell shop, court told

[JimDBB]

Church pressed woman to sell shop, court told

Irish Times
Publication date: 2002-12-06

A woman who is suing the Church of Scientology has told the High Court she had
been encouraged to sell her business to pay for courses which would advance her
within the organisation and which would cost about (pounds) 9,200 sterling.
Ms Mary Johnston (40), who has a sports equipment shop in Foxrock, Dublin, said
that in November 1993 members of a mission from the organisation came to give a
course. She met two of them and was told that she was obviously extremely
intelligent and should train to go "up the bridge" on the processing side of
the Church of Scientology.

She was told there would be a cost involved, and it was suggested to her that
she could borrow from her family or her boyfriend if she did not have the
money.

When it was suggested that she should sell her sports shop to pay for the
courses, she was shocked because she had spent the previous 12 months trying to
prevent it from going under.

She was told she was completely wasted as a retailer and should involve herself
with the most ethical group on the planet. They put pressure on her. The cost
of the courses was (pounds) 9,200 sterling.

"By the time they had finished with me after five hours had elapsed, I had
agreed I was going to sell my business. I was elated," she said. She tried to
borrow from her boyfriend at the time, who turned down her request.

As a result of her involvement with the church, she became withdrawn from her
family and friends. She tried to recruit people into scientology but was
unsuccessful in most cases. She had many rows with her boyfriend in which she
"screamed, shouted, ranted and raved". Her short-term memory started to be
affected.

Ms Johnston is suing the Church of Scientology Mission of Dublin Ltd and three
of its members, Mr John Keane, Mr Tom Cunningham and Mr Gerard Ryan, for
alleged conspiracy, misrepresentation and breach of constitutional rights.

Earlier, Ms Johnston said she was told she could not read an article in the
Evening Herald which was critical of scientology. She had heard the article had
made reference to a person who had left Scientology in California. The article
also made reference to Tom Cruise and Nicole Kidman having been visitors to
that place.

She asked Mr Keane at the Dublin mission if he had a copy of it. He said she
could not read it. He said she would need "class-12 auditing" to "repair" her
because of what was contained in the article. Class-12 auditing would require
"an arm and a leg", added Ms Johnston. She did not see the article.

On another occasion at the end of 1993, she said, she was taken to a downstairs
room in the organisation's Dublin premises. There was an ashtray on a chair in
front of her and she was told by a man to command it as loudly as she could to
get it to stand up. She ended up screaming at the ashtray to stand.

She had to lift it up, acknowledging that it had stood up and say "Thank you"
to it. She then screamed at the ashtray to "get down". Then she put it down and
said "Thank you." She found what happened extremely confusing. She did not know
why she was screaming at an inanimate object.

Ms Johnston said that just before Christmas 1993, a friend died from a massive
heart attack, but she did not go to the funeral because sympathy was "low tone"
in the Church of Scientology. At the higher end of the scale it was 40 for the
higher tone while sympathy was down at 0.5 per cent. She said she resigned from
the organisation in May 1994.

The hearing before Mr Justice Peart continues today.

http://yellowbrix.com/pages/newsreal/Story.nsp?story_id=34947554

[Phil Scott]

If she wins on this basis, it will set a precident that will spawn many more
lawsuits.... I am surprised she didnt mention fraud since the cult promises one
thing, has codes of honor it purports to uphold, then behaves in an oposite
fashion.. thats fraud. breach of contract (a verbal implied contract is just as
enforceable as a written contract in many cases)...and is actionable in court.

www.lermanet.com www.FACTnet.org www.xenu.net www.SlatkinFraud.com

Well all of the recruiters are not so clueless apparently...many know full well
of the fraud.

Tony Hitchman, huge name in scientology was helping to run one of the biggest
rip offs from the start as we discovered two days ago.... you see...so there we
had a cult recruiter with a clue. Most are clueless though.

CRIME right from the start.

On the stock fraud mess, we had Garry Fishman inside the cult from very early
on, the 1970's.. all kinds of multi million dollar stock fraud. You can search
those key words on google and get references... or see www.lermanet.com or
www.altreligionscientology.org or www.FACTnet.org or search google with
your own set of terms.

Hitchman the big time cult of scientology recruiter and promoter, helped
slatkin from the start.... and before that Michael Bayback and Richard Friedland
mentored Reedie boy in his life of crime...that started in the late 70's with
frauds on the Vancouver Stock Exchange...

Reedie boy was heavy into recruiting for the cult as well.

. so you see. Its not just one bad apple... its barrels of them, seeded into
the top levels of Scientology, clear to the top levels of cult managment and
Authors Family Trust B.... found in some SEC filings along with the rest of the
scum including Adnan Khasshoggi the worlds largest black market (read illegal
market) dealer in poison gas, biologicals and banned weapons to anyone with
money, including terrorists. The bazookas and rocket launchers at the cults
Gold Base in Hemet Calif were undoubtedly obtained though that source.

All cloooz for the non dense, a few hundred innocents that got sucked into the
mess are now having all of thier assets seized to pay damages,.... everything
they worked a life time to earn.

Soon even many of the cults recruiters will be sued as complicit in this mess
since they continued to recruit after substantial evidence had emerged (in the
form of felon convictions) that their cult was grossly ruinous, and had damaged
many lives... (the marvelous cheeze bait hubbard worked up, not
withstanding).

One does have in life a responsibilty to get a clue, regardless any dogma that
says 'dont look at what our critics say'.

Phil Scott

http://slatkinfraud.com/docs/reed_declare_hitchman_2002_08_23.htm

FILED AUG 23, 2002

JOHN P. REITMAN (Bar No 80579)
ANDREW S. ROTTER (Bar No 86725)
GUMPORT, REITMAN & MONTGOMERY
550 South Hope Street Suite 825
Los Angeles, California 90071-2627
Telephone: (213) 452-4900
Facsimile: (213) 623 3302

Attorneys for R. Todd Neilson,
Chapter 11 Trustee

RICHARD L. WYNNE (Bar No. 120349)
R. ALEXANDER PILMER (Bar No. 166196)
TIMOTHY B. JAFEK (Bar No. 214066)
Kirkland & Elias
777 S. Figueroa Street
Los Angeles, California 90017
Telephone: (213) 680- 8400
Facsimile: (213) 680 8500

Special Litigation Counsel for R Todd Neilson,
Chapter 11 Trustee

UNITED STATES BANKRUPTCY COURT

CENTRAL DISTRICT OF CALIFORNIA

NORTHERN DIVISION

In re ) CASE NO.ND 01-11549-RR/
REED E. SLATKIN ) AD 02-01111
)
Debtor ) CHAPTER 11
)
______________________________ )
)
R. TODD NEILSON, Trustee of the ) DECLARATION OF REED E.
Chapter 11 bankruptcy Estate of ) SLATKIN IN SUPPORT OF
Reed E. Slatkin, ) THE TRUSTEE'S EX PARTE
) APPLICATION FOR A
) RIGHT TO ATTACH ORDER
Plaintiff, ) AND ORDER FOR
) ISSUANCE OF WRIT
) ATTACHMENT
)
ANTHONY and MARGARET )
HITCHMAN, individuals; and Does ) Date: [To be set by Court on
1-50 ) emergency basis]
)
Defendants ) Time:
) Place: 1415 State Street
) Courtroom 201
) Santa Barbara, CA 93101
) [Judge Riblet]

DECL. OF R. SLATKIN IN SCPP OF TRUSTEE'S EX PART APPLICATION FOR A
RTAO

Exhibit I

I, Reed E. Slatkin, hereby declare:

1. I make this declaration in support of the Trustee's ex parte
application for a right to attach order. I have personal knowledge of
the facts set forth in this declaration and, if called as a witness, I
could and would competently testify thereto.

Mr. Hitchman's Early Involvement with Slatkin's Ponzi Scheme

2. I have known Anthony Hitchman since the mid- 1970's. I met him in
the Los Angeles area when we were both involved in the Church of
Scientology ("Church").

3. In about 1984, I began soliciting money from others ostensibly to
invest for them. I intended to run this "investment" scheme so that
fellow members of the Church could have funds available to purchase
services from the Church. I planned to take money from people, invest
it, and have money available for the withdrawal for Scientologists who
needed money for Church services.

4. When I knew that many investments would not cover the withdrawals
which were requested, I began to cover the withdrawal requests with
funds from new "investors."

5. From the very beginning, I depended on Mr. Hitchman to ensure the
viability of my scheme. He, along with a few others, was to bring
other, "investors" to me, thus providing a flow of new money which
could be used to pay withdrawal requests made by other "investors."

6. Mr. Hitchman was aware of my Ponzi scheme from the beginning and
helped me plan and execute it. In about 1985, we discussed my scheme.
We discussed that I would need to cover withdrawals of old
"investors" with the deposits of new "investors."

7. We discussed the fact that I falsified records. I told "investors"
that funds were invested in certain securities when that was not true.
I told Mr. Hitchman that the statements I sent to my "investors" were
false.

8. We also discussed how Mr. Hitchman would bring new "investors" to
me. We agreed that he would promote me to others as an effective
investor. WE also agreed that if Mr. Hitchman had his own money with
me, it would make it easier for him to convince other people to
"invest with me. That way, he could assure people that he also had
money "at risk" with me.

9. In Exchange for Mr. Hitchman's assistance to establish and ensure
the continued viability of my Ponzi scheme, I agreed to pay him on a
regular basis. In 1986, I paid Mr. Hitchman about $6000 a month. By
1988, I was paying Mr. Hitchman about $10,000 a month. My payments to
him quickly exceeded the money he "deposited" into my scheme. By no
later than mid-1988, I had paid out to him more than he has
"deposited." By 1993, I paid Mr. Hitchman about $15,000 a month. By
1999, I paid Mr. Hitchman about $20,000 a month.

10. Attached as Exhibit 1 are accurate copies of requests by Mr.
Hitchman to me for monthly payments during 1999, 2000, and 2001. Most
of the requests are for amounts over and above the normal monthly
payments. Each of the documents was received from Mr. Hitchman or his
wife, Margaret (aka Peggy). I recognize their handwriting because I
have received many handwritten and/or signed documents from them over
a period of more than twenty years. I received the requests by fax
from the fax number Mr. Hitchman uses to send faxes.

11. Mr. Hitchman reported to me on a regular basis as to what he was
doing to try to get new "investors" into my scheme and also what he
was doing to get old "investors" to contribute new money.

12. Mr. Hitchman acted as an ambassador for me in connection with
those people he helped convince to give money to me. For example, he
helped deal with people who had concerns about investing with me. Mr.
Hitchman also spoke with persons who were upset with me because of
delays in receiving a withdrawal or if a person needed some extra
money for the Church. On several occasions, I asked Mr. Hitchman to
talk to people out of attempting to withdraw money. Mr. Hitchman
reported back to me that he successfully achieved that goal.

-Mr. Hitchman's Assistance in Dealing with Falsified Brokerage
Statements in 1987-

13. Mr. Hitchman also helped me with problems created when I was
caught falsifying investment records in 1987. In order to join with
an investment firm, Statistical Sciences, Inc. ("SSI"), I created
false brokerage records to document a "successful" history of trading
securities. The principals of SSI discovered that I had falsified the
records and we had a falling out. I consulted MR. Hitchman about how
to handle the issue and I told him that I had falsified the brokerage
records.

14. Mr. Hitchman helped me deal with the fallout of falsifying the
brokerage records in two ways. First, he communicated with Richard
Levine, who joined SSI together with me. Mr. Hitchman calmed Mr.
Levine down for me. Second, Mr. Hitchman used his high status in the
Church to mollify Church officials and convince them not to
investigate me despite reports to them that I falsified the brokerage
records.

-Mr. Hitchman's Knowledge of Falsification of Financial Records-

15. Over the years of my investing scheme, I constantly falsified
records I sent to my "investors." I discussed this with Mr. Hitchman
indirectly dozens of times and directly between five and ten times.
For example, Mr. Hitchman asked me "how are we doing this month" or
"how are we doing this quarter." Then he asked if I was making up the
numbers I was sending out to "investors." I told him I was.

16. Following such conversations, Mr. Hitchman often asked for an
extra $20,000 or $30,000 to his monthly payoff.

17. I also gave MR. Hitchman a check for a new car.

-Mr. Hitchman's Request for False Financial Records-

18. Mr. Hitchman regularly requested that I provide for him false
financial records. He told me that he was taking false deductions for
the purpose of his tax returns. He requested that I provide false
financial records to back up those deductions and I did so.

19. Attached as Exhibit 2 are accurate copies of "interest expense"
statements I made at the request of Mr. Hitchman. These false
financial statements supposedly reflect interest on a margin account
MR. Hitchman supposedly had with me. In fact, Mr. Hitchman never had
any such margin account with me. Instead, Mr. Hitchman and I created
the idea of a margin account as a methodology for generating false
interest expenses that MR. Hitchman could claim as a deduction on his
tax returns. Mr. Hitchman told me that he would use, and did use, the
false financial statements for his tax returns.

20. Mr. Hitchman also told me that he did not report all of his income
on his income tax returns. The last time he told me that was the last
time I worked with him on his taxes, which was 1999 or 2000.

-Mr. Hitchman's Actions During the SEC Investigations-

21. I also told Mr. Hitchman about the Security and Exchange
Commission ("SEC") investigations of me in 1997 and 1999.

22. When I received notice in 1997 of the SEC investigation, I
immediately went to Mr. Hitchman and told him of concerns that the SEC
might find out that I was falsifying records. Mr.
Hitchman worked with me to respond to that investigation to make sure
nothing come of the investigation.

23. When I received notice of the SEC investigation in 1 1999, I also
immediately informed MR. Hitchman. I told him that I was concerned
that the SEC would discover that I was running a Ponzi scheme. Mr.
Hitchman was very alarmed. He said that it sounded bad and that we had
to handle the situation. He also implied that he might get caught up
in the SEC investigation.

24. I discussed with Mr. Hitchman the progress of the SEC
investigation form October 1999 until May 2001, when I filed
bankruptcy.

25. In the late spring or summer of 2000, I discussed with Mr.
Hitchman the false account statements from "NAA Financial" ("NAA")
that I presented to the SEC and the attorney who represented me to the
SEC as supposed proof of overseas assets. NAA was supposedly a Swiss
financial institution that held hundreds of millions of dollars of
assets I held for my "investors." But I made up the NAA story and
supported it with false account statements, persons posing as NAA
officials, etc.

26. I discussed the fabricated NAA statements with Mr. Hitchman. I
told him the NAA story was false and that I did not have any money in
Europe. When I told Mr. Hitchman about the NAA story, he laughed and
said, "Are you kidding me? They're not going to buy that.."

27. Mr. Hitchman asked me for an update every week or every two weeks
through the latter part of 2000 on how the SEC investigation was
progressing. In answer to his inquiries, I showed him the false
account statements from UBS, which was supposedly receiving my NAA
assets, and fabricated correspondence from UBS, NAA and RIT, another
fictional European financial institution that supposedly held my
assets. When I showed him these false documents, he laughed and said
"This is amazing."

28. During the time the SEC was investigating me from 1999 to 2001, I
often had conversations with Mr. Hitchman about my payments to him.
Countless times he said to me "You're going to take care of me. You're
making sure money's set aside for me."

29. In March and April 2001, Mr. Hitchman even demanded that I sign a
letter stating that I held 200,000 Earthlink shares at a cost basis of
50.33 a share in trust for Mr. Hitchman, his wife, Peggy, and his
children. He also asked me to confirm their ownership and sell the
shares "since I would not want my shares to be incorrectly included in
your assets should you declare bankruptcy." (Ex. 4 at 2803-2015959) I
have attached as Exhibit 3 accurate copies of the faxes Mr. Hitchman
sent me regarding the Earthlink stock. I recognize Mr. Hitchman's
handwriting because of the many times that I have seen his handwriting
over the course of our relationship of over twenty years. Furthermore,
the faxes were sent from the fax machine he used at the time.

30. I never had any agreement with Mr. Hitchman that I was holding
Earthlink stock for him. I did sign page 2803-2015928 of Exhibit 3. I
did this under duress when I was locked in a room in Mr. Hitchman's
house on March 31, 2001. Mr. Hitchman, along with Jack Dirmann,
another high-ranking member of the Church, physically restrained me
and demanded that I sign the page. They threatened that they would not
let me leave until I had signed that piece of paper. Mr. Hitchman told
Mr. Dirmann in my presence that I had been engaged in a fraud, and
both Mr. Hitchman and Mr. Dirmann were demanding that I give them
money.

31. By April 23, 2001, when Mr. Hitchman sent me the letter about
the 200,000 Earthlink shares (Ex. 4 at 2803-2015919), I had told him
that I would probably file for bankruptcy.

-Indictment and Plea Agreement-

32. In 2002, I was indicted for activities in furtherance of my Ponzi
scheme. On March 26., 2002, I signed a plea agreement in which I
agreed to plead guilty to 15 felony counts. I admitted to having
operated a Ponzi scheme since 1986. A copy of that plea agreement is
attached as Exhibit 4.

-Authenticity of Financial Documents-

33. I have reviewed the documents attached as Exhibit 4 to the
declaration of Grant Newton in support of the Trustee's motion for an
ex parte application for a right to attach order. All of the documents
in that exhibit are records used in the normal course of my scheme and
are accurate copies.

34. The following documents are accurate copies of checks, or
records of checks, payable to Mr. Hitchman and/or his wife on their
behalf: 1-7, 10,11, 13, 15-24, 26-40, 42-55, 74, 76-130, 132-139, 157,
161, 172, 189-202, 204-214, 216, 230 and 232-248. The checks, or
records of checks, were issued to Mr. Hitchman as part of the Ponzi
scheme, were in my possession as part of the records I kept to
document my financial activities, and were completed and signed by me
or were completed and signed by someone in my office acting at my
direction.

35. Most of the checks were completed and signed by me. The others
were completed and signed at my direction by Phyllis Rogers, my
bookkeeper.

36. The following documents are accurate copies of wire transfer
confirmations from me to Mr. Hitchman: 9, 41, 131, 140-156, 158-160,
162-171, 173-188 and 215. The wire transfer confirmations show
payments made to Mr. Hitchman as part of the Ponzi scheme, were in my
possession as part of the records I kept to document my financial
activities and confirmed wire transfers that I had requested be made
to Mr. Hitchman.

37. The following document is an accurate copy of a wire transfer
confirmation for a wire to Designframe Ltd. made on behalf of Mr.
Hitchman: 231. The wire transfer confirmation shows a payment made on
behalf of Mr. Hitchman as part of the Ponzi scheme, was in my
possession as part of the records I kept to document my financial
activities and confirmed a wire transfer that I had requested be made
on behalf of Mr. Hitchman.

38. The following documents are accurate copies of checks from Mr.
Hitchman payable to me: 8, 25, and 203. The payments were made to me
as part of the Ponzi scheme and were in my possession as part of the
records I kept to document my financial activities.

39, The following documents are accurate copies of account
statements and handwritten ledger entries showing payments made to me
from Mr. Hitchman: 12 and 14, The account statements and handwritten
ledger entries document payments made to me as part of the Ponzi
scheme and were in my possession as part of the records I kept to
document my financial activities.

40. The following documents are accurate copies of a ledger
showing payments made by me to Mr. Hitchman or to others on behalf of
Mr. Hitchman: 56-73 and 75. The ledgers document payments made to me
as part of the Ponzi scheme and were in my possession as part of the
records I kept to document my financial activities.

41, The following document is an accurate copy of a check payable
to me for the Hitchman Family Trust: 249. The check documents a
payment made to me as part of the Ponzi scheme and was in my
possession as part of the records I kept to document my financial
activities.

-Mr. Hitchman's Son in England-

42. Mr Hitchman has a son in England, Paul Hitchman. In early
2000, I sent money to Paul Hitchman in England at the urging of Mr.
Hitchman.

43. Attached as Exhibit 5 are accurate copies of emails and fax
messages I received from Paul Hitchman regarding his company in
England. The documents were received in the regular course of
operating my scheme, were made at or near the time the payment
requests were made, and were in my possession as part of the records I
kept to document my financial activities.

I declare under penalty of perjury under the laws of the United States
of America and the State of California that the foregoing is true and
correct.
Executed this 15th day of August, 2002 at Los Angeles, California.

By [signed] Reed E. Slatkin

Attachment A
Additional relief requested for temporary protective order / right
before order [handwritten]

The defendants shall (1) within two court days of service of this
order produce to plaintiff any documentary evidence in defendants'
possession showing where the proceeds from the sale of 625 Via
Trepadora are located. This shall include the name(s) and location(s)
of the financial institution(s) holding the proceeds from the sale,
the name(s) on the account and account number(s), and the amount in
the account(s) which came from the sale of 625 Via Trepadora. (2)
within two court days of service of this order produce to plaintiff
any documentary evidence in defendants' possession of any property
owned by defendant described in 3b. if defendants do not have in their
possession documents regarding the property described in 3b, then
defendants shall obtain such documents and produce them to plaintiffs
within four court days of the date of this order. (3) deposit their
current passports with the Court within one court day of service of
this order. The court shall retain defendants' passports for the space
of thirty days following the deposit of the passports.

Phil Scott

>
>
>