HONESTY PAYS ... .. up to $10,000
What gave the SPOTLIGHT the idea that Scientology would be a credible, effective ally in the fight against the IRS?
Prior to the IHR coup, according to Carto, Scientology received advertising and recruitment benefits from the interviews with Scientologists published by "The Spotlight." What "The Spotlight" got in return, it appears from the numerous letters of Scientologists who cancelled their subscriptions after articles critical of Scientology appeared, was a certain increase in circulation. Upon a more thorough examination, though, the interaction included a potentially broader sharing of resources.
For instance, about a year and a half after FBI agents raided Scientology offices, Scientology public affairs representative Susan Taylor sent the SPOTLIGHT a handwritten note of the same date as an attached press release, a front group booklet that offers $10,000 for evidence that led to successful (emphasis added) prosecution of government corruption, an article on government corruption by a nationally known columnist, Scientology's submission to the grand jury on Dr. Peter Bourne, Congressman Paul Findley's letter of August 25, 1978 concerning Scientology's unprecedented prosecution of a government official, and Congressman Findley's press release on the topic.
Less than a year later, Carto's Institute for Historical Review held its first international revisionist conference at which a reward was offered for exculpatory, as opposed to Scientology's incriminating, information. From pp. 27-28 of Best Witness:
... the IHR and its associates struggled for an effective method to make their revisionist research known to the general public which had been conditioned to accept the standard definition of "The Holocaust." It was, in fact, the IHR's first major public relations effort -- critics called it a "gimmick" -- that ultimately brought Holocaust revisionism to perhaps more people than even the IHR ever thought possible. It was during the IHR's first international revisionist conference, conducted in 1979, that the IHR first offered its controversial $50,000 reward offer for proof that Jews had been gassed at Auschwitz.
Although the sequence of cash rewards may be entirely coincidental, any publisher would be favorably impressed by Scientologist Susan Taylor's professional and expansive presentation of data.
In a later example of possible resource-sharing, Founding Church of Scientology public affair representative Greg Layton sent "The SPOTLIGHT" a letter, dated 11 February, 1980, which included an affidavit to help the SPOTLIGHT understand "why the Church has been attacked continuously for the past 30 years." That affidavit of 1 February 1980 stated that Scientology was a victim of a "dirty tricks" campaign by the CIA. It was signed by L. Fletcher Prouty. As it turned out, Mr. Prouty (along with personalities such as Lt. Col. James (Bo) Gritz, the most-widely-decorated American veteran of the Vietnam War) was later scheduled to appear as a character witness for Willis Carto in 1991 (p. 149, Best Witness).
In any case, the array of information contained in the Dossier Disease booklet is quite impressive, and the examples cited in it could be of much use, even today, in explaining how Scientology obtained tax-exempt status. (See corresponding press release.) Other interesting topics are touched upon in this Scientology publication, too, such as the daily access of Scientologists to DOD and TOP SECRET material. For the booklet's purposes, however, this topic is put in the context of a job ban on Scientologists. The SPOTLIGHT and its staff did not blandly accept the information presented them by various Scientology front groups (which they recognized as such), but did their own research, with impressive results. For instance, here is some documentation on Scientology's view of the FBI's raids with regard to freedom of speech, which of course would be of interest to any publishing agency, as would a court decision concerning Scientology's legal triumph over the National Security Agency. At the time, before the Guardian Office illegal break-ins had been discovered, nobody knew how Scientology could have known that the NSA kept files on that organization. This was not quite the sort of thing one would expect from a secretive UFO cult that manhandled hippies off the streets to become church members in the 1960s.
The IHR also kept an open mind about information passed to it by Church of Scientology representatives. In the case of Interpol, for instance, it was noted that other communities also viewed the activities of Scientologist Robert Vaughn Young of the ACLE with interest. The "Church of Scientology" sought out and found complaints other people had with Interpol, and combined those with their own, to give the appearance of justice aligned with the mainstream.
Naturally, after Scientology received its tax exemption, Carto and the SPOTLIGHT saw the Church of Scientology in a new light.
Handwritten note in top center:
Fred Blahut
Thought you may like this one.
Greg Layton
FOUNDER L. Ron Hubbard
BOARD OF DIRECTORS Rev. William M. Bromfield
President
Rev. Joel Morris Vice-President
Jane Layton
Secretary-Treasurer
FOR IMMEDIATE RELEASE FOR INFORMATION: Gregory Layton (202) 797-9796
IS IT BIGGER THAN A BREADBOX ?
IRS Maintains 102 linear feet of files on CHURCH OF SCIENTOLOGY A reliable source within the Internal Revenue Service has stated recently that the Service's files nationwide contain 102 linear feet of files on the Church of Scientology. Church spokesman noted that this:
* is longer than a nine car long gas line in Southern California.
* would reach one fifth of the'way up the Washington Monument. would reach over half way up the Capitol Dome.
* would cost over $1,000 to supply filing cabinets to store it all. Church spokesman claim, "so far, the IRS has won the prize for the most paper work of any of the government agencies we have deli with."
The Founding Church of Scientology® is a non-profit organization registered in the District of Columhia
IRS FILES 2.
The church noted that what the IRS files lack in quality they appear to have
made up in quanity. Church officials found in 1975 that some of the false and
damaging material in IRS files had found its way into a Labor Department
memorandum that was used to keep Church ministers from entering the United
States. The Labor Department, when confronted with the facts, apologized for and
destroyed the document known as the "Foley memorandum."
In
addition to the Church of Scientology, the IRS kept files on other religious
groups such as the National Council of Churches and the Camden Christian Center
during the days of the "Nixon enimies list".
The Church of
Scientology has filed numerous Freedom of Information Act (FOIA) suits and
retrieved over 15 feet of the files kept on it by such diverse agencies as the
Atomic Energy Commission and even the Department of Agriculture. "That's
only the length o£ one limousine waiting for gas", Greg
Layton,spokesman for the church stated. The church is currently seeking all
remaining files maintained on it as part of the discovery proceedings in a suit
it has pending against 8 government agencies, including the Treasury Department
which houses the IRS.
"If all of these agencies kept files on us as
voluminously as the IRS, the files would reach almost to the top of the Empire
State Biulding, and would be as long as any bridge spanning the Potomac."
IRS FILES 3.
"One has to wonder where they put it all, This is an
average of 5 feet of files per Church of Scientology. The Service has stated
that they treat the Church of Scientology the same as any other church in the
United States. If that's true, then they maintain 1,323,325 feet of files on the
264,651 churches in the United States. That's 251 miles worth of files, enough
to reach from Washington, D.C. to New York City", Layton said.
The
Church of Scientology has engaged various government agencies since its
inception in 1954 over the excessive maintainance of unverified and often
damaging material in government files. The church recently published a book
entitled DOSSIER DISEASE in which it shares its
experiences in dealing with what it calls "this federal epidemic".
-30-
FOUNDER L. Ron Hubbard
BOARD OF DIRECTORS Rev. William M. Bromfield
President, Rev. Joel Morris Vice-President, Jane Layton Secretary-Treasurer
11 February 1980
Mr. Fred Blahut
Liberty Lobby
300 Independence Avenue, S.E.
Washington,
D.C. 20003
Dear Fred:
I haven't seen your paper in the last few weeks, but I can
imagine you must have a lot of material to choose from.
I think you would
especially find the enclosed affidavit very informative as it is written by an
intelligence expert, L. Fletcher Prouty, after reviewing a great deal of
information (including FOIA documents) concerning the Church. Mr. Prouty, as you
might know already, is also the author of the book, The Secret Team.
I know
that at one time, you were considering writing a story for the Spotlight about
the issues the Church of Scientology has been dealing with and I thought this
might be a valuable reference piece in explaining why the Church has been
attacked continuously for the past 30 years.
Of course, if you have any
questions or would want to get in touch with Mr. Prouty, please let me know.
Sincerely,
/sig/
Greg Layton
Public Affairs Representative
Enclosure
The Founding Church of Scientology® is a non-profit organization
registered
in the District of Columbia
AFFIDAVIT OF L. FLETCHER PROUTY
1. My name is L.
Fletcher Prouty. I live at [xxx], Alexandria, Virginia 22304.
2. I have
first-hand, personal knowledge of the activities of the Central Intelligence
Agency ("CIA") from my work and experience in the United States Air
Force ("USAF"), the office of the Joint Chiefs of Staff, and the
Department of Defense.
3. In 1955, as a Lt. Colonel in the USAF, I was
assigned to USAF's Directorate of Plans and there was directed to create an
office for the military support of the CIA's clandestine operations.
4. In
1960, I was promoted to Colonel, awarded the Legion of Merit and became a senior
USAF representative in the Office of Special Operations ("OSO") in the
Office of the Secretary of Defense at the Pentagon. OSO was responsible for the
Department of Defense's contacts with the CIA, Department of State and White
House on intelligence matters and was at the time the senior office responsible
for the activities of NSA. OSO was a part of the immediate office of the
Secretary of Defense. In 1961, I was assigned to head the Office of Special
Plans under the Joint Chiefs', of Staff, and continued to perform the same
functions with all military services. I retired from the USAF in 1963 after nine
years of this special work.
5. My duties and responsibilities in the
positions described in paragraphs 3 and 4 required that I maintain continuous,
dayto-day contact with the highest echelon of CIA officials, and that I be
constantly aware of the CIA's operations, from the mundane and routine to the
most significant and sensitive. In the performance of my official duties, I
traveled all over the world, and thereby acquired an intimate familiarity with
the CIA's foreign operations and installations. I am also fully familiar ;with
the tactics and methods of reporting within the intelligence community and other
such agencies of the U.S. Government.
6. I have reviewed a great number of
documents and other materials relating to the various attacks on the Church of
Scientology and the Dianetics movement since 1950. My conclusion is that there
has been a definite campaign of harassment against this organization for nearly
30 years and that this campaign has been directed from a central core and has
utilized the capabilities ,,of the intelligence community to carry out the
attacks. The primary means for creating opposition to the Scientology movement
has been through the dissemination of false and derogatory information around
the world so as to create a climate in which adverse action would be taken
against the church and its members. 7. There are several examples which I will
address in this affidavit.
8. A wide reading of the multitude of
memorandums circulated throughout a number of government departments such as the
State Department, FBI, CIA and HEW reveals the fact that the lower echelons of
such organizations such as police departments, the FDA and the like,
continuously circulate patently untrue, implausible, contrived and very cheaply
structured material. Examples of such reports are statements in these memos that
Scientologists use drugs so (when in fact their religion opposes this), that
they dispense LSD at church meetings, that church members "shoot but not
kill" parents of members, that practitioners of the religion use hypnosis
and carbon dioxide gas in their counselling, that members are Communists,
homosexuals and a host o£ wholly unsupported allega tions with no basis in
fact whatsoever.
9. It is my opinion that these reports are the work of
subordinates who had been pressed into such an activity either by a superior or
some outside authority and who had the feeling that he or she had to make such a
report no matter how untrue or implausible it might be.
10. Furthermore,
these reports from random sources over a period of nearly 30 years have become
bundled up in dossiers, filed in the FBI, CIA, the Defense Department and other
agencies and have been circulated from one end of the world to the other, as
evidenced by the documents and the routings on them.
11. As a result, one
finds that not only are these government organizations loaded with these
falsehoods but they become the subject matter which is provided to writers to be
used in defama tory and derogatory articles in the media. It is my opinion that
this is what gives these articles in such completely diverse areas as Australia,
South Africa, Rhodesia, Morocco, Greece, Denmark and England the appearance of
sameness which clearly suggests that at the core of this entire effort there is
a central, driving force grinding out this product.
12. There is a definite
pattern to the campaign as evidenced by the areas in which the false information
and files were sent. These are most often areas not only where Scientology is
active but also where the CIA is known to have strong stations. This is
especially true in Australia, South Africa and England.
13. The
dissemination of such information seems to have as its end the production of
indigenous agitators who are fed the derogatory information and then become a
rallying point for the rest of the campaign in that Particular area. This tactic
can be very effective.
It is of interest to note that in widely separated
areas, some of the people most influenced by these agitators against the church
are connected to the police, newspapers, medical associations, writers and other
media. There is a pattern in that this information always goes to selected key
people. That is the scheme. The people who receive this prepared information are
generally key people in public office or in the media. Conspicuously absent are
examples of this occurring with what we might term "ordinary people."
The entire campaign appears to have professional, intelligence-type planning.
From a review of the documents, it is evident that this campaign of harassment
was generated from the United States.
14. For example, after reviewing
documents surrounding events in Australia during the early 1960's - Scientology
was actually banned in Australia for a period of time - I believe that U.S.
Intelligence not only used the Australian incident later but it appears they
created it in the first place in order to use it subsequently to incite similar
activities in other countries such as South Africa and England. 15. One of the
leading figures in the inquiry into Scientology in Australia, Phillip Wearne,
indicated that the proceedings against the church was monitored by a CIA agent.
It would have been easy for U.S. Intelligence to use Australia to voice "official"
opposition to Scientology and then to represent this as an "independent"
action of a foreign country to create a world-wide campaign. During that time
period, the strongest overseas post for the CIA had always been Australia and
the FBI and J. Edgar Hoover had a strong; and personal relationship with that
country.
16. It is of note that the similar campaign against the church in
South Africa relied in part on the proceedings in Australia. Another aspect of
the South African situation which I find of interest is the retraction by
Captain DuPlessis who had been with the South African police and who had given
extensive testimony before the inquiry into Scientology in that country.
17. The statements, which he later publicly retracted in a 33 point document
because they were biased, misleading and untrue, are almost identical statements
to those I have seen in newspaper reports and government memos which did not
originate in South Africa and it is quite evident to me that he had been given
these original, untrue statements sometime before he made the allegations to the
South African commission investigating Scientology.
18. This makes it even
more emphatic that these countermeasures against the Scientology movement were
being prepared and distributed throughout the world including South Africa. They
use the same phrases and language as some I have seen in publications and memos
from Australia, England, Denmark, Morocco, Greece and other countries.
19.
With regard to the campaign in England, what is most notable in the records is
the persistence of the then-Minister of Health, Kenneth Robinson, in bringing
actions against the Scientology religion even though, as documents later have
revealed, that his superiors concluded he had no evidence and that higher
authority had refused to let him take certain actions, The fact that he pressed
the case for such an extended period of time ,' suggests, in my opinion, that he
is the type of person in high ;office who becomes a willing tool of this type of
defamation approach as covered earlier in this affidavit with regard to
indigenous agitators.
20. I have reviewed copies of telegrams sent on State
'Department channels from the U.S. to England which contain large amounts of
this inflammatory material which is similar to that seen in so many other
countries. In fact, the Department of State channels were used to transmit a
large volume of collated material whether it was true or not or even
substantiated and even when it came from very questionable sources.
21. Since the source of the same material has been traced to the American
Medical Association, National Institutes of Health and related organizations,
there is little doubt, in my opinion, that the material then found its way from
the U.S. Embassy in London to the British Ministry of Health and there it was
picked up by Mr. Robinson and through him brought to the attention of senior
government officials. I believe that is the channel which was exploited by these
irresponsible activists.
22. As I have covered elsewhere in more detail, I
believe that the church vessel, the Apollo, experienced a major U.S.
intelligence network program of a highly developed form of harass ment which
resulted in creating a hostile environment in foreign countries which previously
had been openly friendly to the Church of Scientology and the ship.
23.
With regard to the actions by the U.S Government inside the United States, the
matter concerning the Food and Drug Administration merits comment. The raid
mounted by the FDA against r the church to seize its E-meters seems to be part
of a contrived campaign to do everything possible to harass and interfere with
the church. This raid was mounted despite warnings from offices senior to the
FDA that they had no evidence and were without proper! authority. Later, the
whole action by the FDA was proven to be baseless.
24. It is clear from the
documents I have read that the Department of Health, Education and Welfare, the
department senior to the FDA, had very serious doubts about the legitimacy of
this proposed FDA harassment and that even a trained medical technician who had
volunteered to infiltrate the church had delayed taking that action pending
clearance, in his words, from the American Medical Association.
25. Since
H.E.W. was very reluctant to become involved, it becomes quite clear that the
motivation for these actions against the church either originated with or had
something to do with the AMA and that the FDA was a willing accessory in this
activity. 26. The model we see here is not unlike so many others, even ment's
FDA. It is actually what could be termed a defamation project. I have seen these
things done before.
27. It is my opinion that these attacks on the
Scientology movement, which have taken place in many parts of the world, are not
unrelated but are part of an extensive campaign which is being perpetuated from
a central core which is using the capabilities of the intelligence community to
carry out the campaign. It is my view that the sole intent of the campaign is to
destroy the movement primarily through the use of a mammoth dossier system.
Intelligence agencies are a willing tool and they are a very proficient tool.
They are ubiquitous and can operate so easily under cover.
28. It is my
opinion that the origins of this campaign have arisen from within the medical,
psychiatric and mental health fields since the Scientology movement, from its
very beginnings, was publicly critical of what it felt were radical and harmful
;techniques such as shock treatment and lobotomy and excessive use of drugs
which they felt the medical and psychiatric professions 'were practicing.
29. It is my opinion that the early exposure by Scientology' founder, Hubbard,
and the Scientology movement, of the many things in the area of psychiatry and
mental health which were being exploited by the Defense Department and the CIA
(and which later became public under revelations of the CIA's MK-Ultra program),
tended to create in those agencies willing support for the professional
opposition which had coalesced earlier.
/sig/
L. FLETCHER PROUTY
Subscribed to and sworn to before me this 1st day of February, 1980.
/sig:
Bruce W. Wood/
Notary Public
My commission expires May 31, 1984
[handwritten note. Scans: page 1,
page 2.]
3 Nov 78
Dear Mr. Blahut,
I'm
sorry I missed you this afternoon.
I understand you met with Brian Anderson
today regarding American Citizens for Honesty in Government.
As additional
data I thought you would like a little more information on our Rewards Campaign
which has been going on around the country for the past several weeks.
I
have attached a press release on the rewards campaign -- our booklet that
explains it in detail & a press release regarding our submission to the
grand jury on Dr. Peter Bourne.
I'm not sure how much of this
[over]
Brian has covered with you but I wanted you to have these materials. I'll give
you a call on Monday to see if you would like any more information.
The
campaign is going very well as people are coming forward with a lot of
information.
My best,
Susan Taylor
Assistant Director for Acttg.
797-9820
[attachments paperclipped]
[handwritten at top: Fred Blauhut]
ADVISORY BOARD Ralph Stavins, Government Accountability Project Walter Bowart Author Daniel Sheehan, Esq. Ilmar Waldner, Ph.D. Mark Jones, USMC, Ret. Jerry Simmons, Ph.D.
NATIONAL OFFICE 2125 "S" Street NW Washington, D.C. 20008 (202) 797-9820(202) 797-9825
FOR RELEASE 3 November, 1978
FOR FURTHER INFORMATION CONTACT: Barclay Bean, [handwritten: Sue Taylor]) 797-9820 797-9825
American Citizens for Honesty in Government (ACHG) today distributed a booklet outlining their offer of up to $10,000 for anyone who comes forward with evidence of government corruption which results in the successful prosecution of corrupt agencies and agency personnel. ACHG is a whistle-blowers organization of citizens and government employees formed last April to root out and expose government crime. The group is sponsored by the Church of Scientology and has over 20 chapters in the U.S.
--more-
Regional Offices in New York, Sacramento, San Diego, Los Angeles, Dallas, Chicago, Miami, St. Louis, Boston, Detroit, and San Francisco Sponsored by the Church of Scientology Scientology is a registered name
ACHG
Rev. Arthur J. Maren, founder and chief spokesman for the group,
stated, "Members of ACHG are sick and tired of government corruption
running rampant and unchecked in America today. The newspapers are full of
stories of government crime -- from theft of government funds to kickbacks to
black bag jobs. Despite this, the Justice Department has only indicted three FBI
officials, Patrick Grey and two assistants, as figureheads in the case. Those
indictments came down only after public opinion demanded nothing less.
ACHG
is going to take all steps necessary to actually bring about a political reform,
defense of individual liberty and the securing of individual privacy which is so
desperately needed at this time."
In order to do this ACHG is offering
to pay rewards and bonuses up to $10,000 for the exposure of corruption which
leads to arrests an d conviction of dishonest ' government officials. A new
booklet "Honesty Pays ... Up to $10,000" outlines exact detailed steps
on how a ''whistleblower can claim a reward for exposing corruption. The group
recently conducted a nation-wide tour in over 100 cities as part of their
campaign to ferret out dishonest and corrupt government officials and help
restore honesty and integrity to local, state, and federal government.
-30-
[pamphlet]
HONESTY PAYS ... [graphics are various sections of Uncle Sam pointing at you. For instance, his hat]
"I intend to seek strong legislation to protect our federal employees from harassment and dismissal if they find out and report waste or dishonesty by their superiors or others. The Fitzgerald Case, where a dedicated civil servant was fired from the Defense Department for reporting cost overruns, must never be repeated."
-- Jimmy Carter October 23, 1976
hon'-est adj, not lying, cheating or stealing; fair and upright;
truthful.
cor-rupt' adj, open to or influenced by bribes;
dishonest.
bribe noun. anything given or offered a person in exchange for his
violation of a moral obligation or public trust.
blow the whistle - to declare illegal or dishonest
What you already know may be worth up to $10,000. The Church of Scientology-sponsored American Citizens for Honesty in Government has set aside $100,000 and is willing to set aside more, to pay rewards and bonuses for the exposure of corruption in government.* Dishonest officials always seem to live well because they are living off of others. Well, this is your chance not only to do your duty as a government employee and
--
* * The purpose of the ACHG is: To bring about a political
reform, defense of individual liberty and securing of individual privacy, with
freedom from corrupt or dishonest officials. --
citizen, but to let honesty pay.
Let's face it. "Blowing the whistle"
on government dishonesty or corruption is not easy especially when you work for
that government. It is easier said than done, and is usually urged by those who
do not stand to lose their jobs or live with such a threat.
How can you
blow the whistle on government corruption, be safe and be rewarded a I I at the
same time? We think we have a way to help. It simply comes down to
confidentiality. See page nine. If the ACHG does not even know your identity,
your confidentiality is guaranteed.
People are basically honest and do not
enjoy seeing corruption in their ranks. They often just wish to to tell someone
who will DO something about it. But that is where the danger comes in and that
is the danger the ACHG is seeking to address.
"You can't fight City
Hall" is a phrase that was thought up by City Hall. It is the dishonest
official who is terrified of your actions. But, for once, honesty will pay.
Q. WHAT SORT OF CORRUPTION SHOULD I REPORT?
A. We leave that to your own
discretion. The ACHG is looking for convictions for violations of the law. If
you know of an irregularity, contact the ACHG.
Q. WHAT WILL THE ACHG DO?
A. The first thing is to review the material sent and see what else needs to be
found. It may require further information from you (see below) or another before
we take the matter to the authorities to demand prosecution. This will be done
working with our own legal counsel.
Q. HOW ARE THE REWARDS GIVEN?
A.
All rewards will be based upon convictions and will be paid to the person who
gives us the documentation. Bonuses are also given, for example, for evidence of
a conspiracy, attempts by officials to prevent a case from coming to the ACHG,
etc. (Full details listed later.)
Q. HOW CAN I KEEP MY NAME OUT OF IT IF I
WANT TO?
Very simple. First, the case should be made out of documents more
than anything else. If you are an eyewitness, it will be hard to keep you out of
it. Second, you get the materials to us in a way that you can later identify
yourself to us for the claiming of the reward. Meanwhile, you can remain an
anonymous public servant. Here is what you do:
9. Write up all the details
of what you know or have seen. Be as factual as you can with dates, places,
names, etc. 2- Support what you write with documentation. What you cannot
document, indicate either: if there are witnesses, who they are and where they
can be found; or where there might be documentation. (For instance, can it be
obtained under the Freedom of Information Act.?)
4. Put the material in an
envelope with half of a local newspaper article torn jaggedly down the middle.
You keep the other half. This will later identify you as the source of the
material. 5. Choose two sets of numbers that have at least 7 digits total that
you can remember, and write them on the half sent to us. For example, you might
choose your birthday and weight. If your birthday is Jan. 1, 1935, and your
weight 150, the number could be 1135150 (or 1-1-35-150.) The point is that it be
7 numbers you can remember. If you happen to tell someone about sending us this
material, do not tell them the numbers.
6. Also, print clearly on the
article an arbitrarily chosen first name. This will be used to identify yourself
on the phone. Put it into the envelope and mail.
7. After allowing ample
time for delivery, call the ACHG office number listed here. Identify yourself by
the new first name chosen. If someone has already taken that name, thus making
your identity difficult, you will be asked to give the first three numbers cited
in step 5 above. 8. If needed, a new name will be agreed upon, for phone
conversations only. (Even nicknames are workable.)
9. It will be determined
if your material has arrived, and you will be told (a) if it has been read and
(b) current status. A day will also be chosen to have you return the call and
make any other arrangements needed.
Q. DO I HAVE TO TAKE SUCH PRECAUTIONS?
CAN'T I JUST TELL YOU WHO I AM?
A. Certainly. We greatly prefer it. But
there are some people who might need such precautions. We will need identity for
the reward, which is why we ask for the article torn down the middle and the
numbers written on our half of it.
Q. WHAT SORT OF DOCUMENTATION AND/OR
EVIDENCE IS NEEDED?
A. Supply whatever will substantiate your observations.
However, we do not advocate the obtaining of any materials that is contrary to
the law, or that you act in any such matter. There have been people such as
Ernie Fitzgerald who have acted from conscience, and that must be the decision
of each individual.
Q. HOW ARE THE REWARDS HANDLED?
A. There is an
ACHG Board of Rewards, which will pass on the matter. The money would be paid to
the person responsible for the information that brought about the conviction, or
to to the charity of their choice.
Q. WHY IS THE ACHG DOING THIS?
A.
For the same reason a government employee wants to blow the whistle.
We are
sick and tired of corruption in the government, and nothing being done about it.
A CIA Director gets a slap on the hand, the Attorney General defies the courts,
a White House aide merely resigns over a drug controversy. It's about time that
governmental officials know that honesty pays-up to $10,000 reward. Maybe it
will be enough to put a little more effort into being honest. At the very least,
corrupt officials will know that someone is on their trail and that there might
be someone who will blow the whistle on them. It is time they started looking
over their shoulders.
Q. WHERE DOES THE MONEY COME FROM TO DO THIS? A.
Contributions to the ACHG by people who believe the conviction of dishonest
agency officials is worth the money. This is our government. It does not belong
to a powerful few who are taking advantage of their position to betray the
public trust, and it is time citizens do something about it. And it is time that
these corrupt officials know that they cannot count on a complacent Justice
system, but will also be facing citizens who will not tolerate it any longer.
Q. IF THE GOVERNMENT IS FAILING TO PROSECUTE, HOW CAN YOU HOPE TO GET NEW
PROSECUTIONS FROM THIS CAMPAIGN? A. Despite some foot-dragging within the
Justice Department, it is still their responsibility to find and prosecute
criminal activity within the Federal government, and we intend to remind them of
that. If there is refusal upon the presentation of evidence, we will do two
things:
(1) find another remedy for that particular case and
(2) press
for an investigation into the area that refuses to act on valid citizen
complaints against corrupt government officials.
Q. ARE REWARDS GIVEN ONLY
FOR HONESTY ON THE FEDERAL LEVEL?
A. No. Rewards and bonuses can be
collected for Federal, State and Local abuses exposed.
Q. WHAT EXACTLY ARE
THE AMOUNTS GIVEN?
A. The amounts of the rewards and the bonuses are listed
in this booklet. The point is: HONESTY PAYS-up to $10,000.
Scale of Rewards and Bonuses
The American Citizens for Honesty in
Government will give rewards and bonuses of up to $10,000 for evidence and/or
documentation leading to the arrest and conviction of governmental officials,
for criminal actions by them while in those positions of trust. The ACHG is
interested in these officials' actions taken from these positions, but not their
private lives.
Violations of Federal or state law for which prosecution can
be effected shall be considered.
The rewards for such information shall be
for documentation and/or evidence leading to arrest and conviction, in the
amounts of: $5,000 for each governmental official; $3,000 if that official is
head of an agency or a member of the office of the head of an agency (such as
deputy, assistant);
$2,000 bonus for conspiracy in the action whereby
others are proven to involved in the criminal activity; $2,000 bonus if it can
be shown that the Justice Department knew of the illegality and did not take the
required actions;
$1,000 bonus if it can be shown that an agency took steps
to (1) monitor its employees to determine who might give evidence to the ACHG,
(2) prevent or deter any employee from giving information to the ACHG, (3)
harass an employee for contacting the ACHG, (4) monitor the ACHG in any fashion
to determine what is known or has been given the ACHG and/or (5) give the ACHG
false or misleading information.
Payments of the awards and bonuses shall
be upon successful prosecution by the proper authorities, and shall be
determined by the Board of Rewards of the ACHG.
Payment shall be made for
each successful prosecution. The ACHG does not recommend or condone any illegal
activity, and any material given the ACHG shall not be in violation of the law.
Such violations risk the forfeiture of the rewards.
Material given the ACHG
becomes the property of the ACHG for its use. The confidentiality of the
informant shall be strictly maintained, and shall not be disclosed by the ACHG
without the written consent of the informant. Informants are not required to
provide the ACHG with their identity to qualify for the reward and bonuses, but
only need to properly identify the material supplied when it is given over to
the ACHG, in a fashion that will allow identification to claim the reward.
Identification of the informant will be required to claim the reward. Any
conflicts as to the recipient of the reward shall be ruled upon by the Board of
Rewards and their decision is final.
Recipients of rewards and bonuses
shall be responsible for any taxable income on it.
Any informant shall, by
providing information to the ACHG, agree to these conditions.
Contact:
American Citizens for Honesty in Government ACHG is sponsored by the Church of
Scientology
[handwritten at top: Fred Blahut]
ADVISORY BOARD Ralph Stavins Government Accountability Project Walter Bowart Author Daniel Sheehan, Esq. Ilmar Waldner, Ph.D. Mark Jones, USMC, Ret. Jerry Simmons, Ph.D.
NATIONAL OFFICE 2125 "S" Street NW Washington, D.C. 20008 (202) 797-9820 (202) 797-9825
PRESS RELEASE FOR RELEASE : THURSDAY OCTOBER 26, 1978
FOR MORE INFORMATION SUE TAYLOR, GREGORY LAYTON
* Robert Wichser, aide to Cong. Paul Findley (R-Ill.)
In an unprecedented move to test the citizens right to seek prosecution of a
government official who violated the law, a citizens group today brought a
submission on a former White House advisor to a federal grand jury in Washinpton
D.C.
The approach of bypassing the prosecutors in a federal grand jury
inorder to inforce the law has never before been carried out, according to a
preliminrary search by the group.
The group, called the American Citizens
for Honesty in Government (ACHG), explained their unique move as "an
attempt to correct the double standard of Justice" by the Justice
Department and charged the department with abusing selective prosecution and
using two sets of laws - one applied to tho citizens and another applied to
those in high government positions.
more
Regional Offices in New York, Sacramento, San Diego, Los Angeles, Dallas, Chicago, Miami, St. Louis, Boston, Detroit, and San Francisco Sponsored by the Church of Scientology Scientology is a registered name
CITIZENS 2.
The case being petitioned to the foreman of the grand jury is that of former
White House Advisor on Drug Abuse, Peter Bourne. The decision was made by ACHG
after U.S. Attorney, Earl Silbert, refused the group''s request to prosecute Dr.
Bourne for the federal crime of using a fictitious name on a prescription given
his assistant for the controlled drug, Quaaludes.
"We believe citizens
not only have the right but the duty to prosecute the bad apples when the
Justice Department refuses to act," Gregory Layton, a spokesman for the
group stated. "There is a dangerous trend to not prosecute FBI agents and
members of the administration, while using the full power of the government
against ordinary citizens." Earlier this month Congressman Paul Findley
(R-Ill.), in a letter to Attorney General Bell, demanded the prosecution of Dr.
Bourne. He was sent a reply by Deputy Attorney General Benjamin R. Civiletti who
said that persons of notoriety should be treated just like an ordinary person.
Findley responded by saying, "when applied to White House assistants,
however, that policy denies the American people their right to expect the
highest performance from those at the top of our government." * Layton
said some officials even within the Justice Department have acknowledged the
double standard of the department He cited a Justice Department task force set
up last year to investigate FBI break-ins. The task force said they were
effectively thwarted in their investigation by Attorney General Hell. The
members were later forced to resign due to Bell's efforts. The head of the task
force, when asked in a congressional hearing as to whether the Justice
Department applies a double standard he stated, "absolutely".
more
CITIZENS 3.
Gregory Layton, spokesman for ACHG pointed out that the ACHG has no personal
animostiy towards Bourne but saw the incident as "another example of
Justice Department hypocrisy."
ACHG, which is sponsored by the Church
of Scientology, has as its stated purpose "to restore honety in government"
and "to bring about a political reform, defense of individual liberty, and
the securing of individual privacy with freedom frpm corrupt and dishonest
officials.
-30-
Departmental Justice - Justice Department August 25, 1978
The Honorable Griffin B. Bell
Attorney General
Department of Justice
Washington, D.C. 20530
Dear Mr. Attorney General:
As the chief law enforcement officer in the nation, I urge you to bring Dr.
Peter Bourne to the bar of justice. According to press accounts, U.S. Attorney
Carl Rauh has stated: "We originally deferred to Virginia authorities to
decide whether to prosecute or not in this case. They've made their decision and
as far as this office is concerned, that's the end of the matter."
As
a matter of simple justice, that cannot end the natter. The facts are clear. Dr.
Bourne violated both federal laws and those of the District of Columbia by
writing a false prescription. There is no possible legal or ethical
justification for Mr. Rauh turning his back on this illegal conduct and refusing
to prosecute. If Mr. Rauh is kept on the job after this mis- ' carriage of
justice, and after David Marston was fi[double-strike]ed, then,; it is clear
that this administration has a double standard of justice.
You will recall
that during his campaign, President Carter set forth his own code of ethics. He
said: "As President I will be responsible for the conduct of the Executive
Branch of government. Errors will be immediately revealed and an explanation
given to the public, along with corrective action to prevent any recurrence of
such actions. There is only one person in this nation who can speak with a clear
voice, who can set a standard of morals, decency and openness. That person is
the President."
Dr. Bourne may have been "an able and dedicated
public servant" as the President described him after he had left the White
House, but those words have an all too familiar ring, recalling former President
Nixon's testament to Haldeman and
The Honorable Griffin B. Bell August 25, 1976 Page 2
Erlichman just a few short years ago. The question now is" whether this
administration will stand by the President's code o ethics, or stand by
President Carter's longtime friend a$Nixon stood loyally by his, ignoring the
fact that the laws have bean violated.
My hope is that you will yet
personally direst the Justice Department to investigate fully the illegal,
conduct of Dr. Bourne and take whatever steps are required--regarding of party
or friendship. After Watergate, the American people deserve no less.
Sincerely yours,
Paul Findley
Representative in Congress
PF:kc
from
Congressman PAUL FINDLEY 20th District,
Illinois . 1133 Rayburn Bldg., Washington, O.C. 20515 . 202--225-5271
For Release Sunday, October 8
PRESIDENT TOLD JUSTICE DEPARTMENT BELIEVES IT IS OKAY FOR HIS FRIENDS TO BREAK THE LAW
Washington (October 8, 1978)--"By refusing to take action against Dr.
Peter Bourne for a drug violation, the Administration is signalling the American
people that it is okay to break the law, especially if you are a close friend of
President Carter," Congressman Paul Findley (R-Ill) stated today as he
released the text of a letter to the President mailed Friday.
In the
letter, Findley alerted the President to a Justice Department policy expressed
by Deputy Attorney General Benjamin R. Civiletti that excuses top government
officials who break the laws so long as their conduct is no worse than that of
an "ordinary person."
"I had earlier written Attorney
General Griffin B, Bell," explained "and urged legal action against
Dr. Bourne. a former assistant to President Carter.
"ln a written
response to my letter, Mr. Civiletti said that persons of notoriety should be
treated just like an ordinary person in deciding whether to prosecute. When
applied to White House assistants, however, that policy denies the American
people their right to expect the highest ethical performance from those at the
top of our government. "Those in high office are in full public view. Their
actions set an example that either reinforces or diminishes public respect for
law, "The public exposure that goes with high office must necessarily
require special demands for ethical behavior. Holding high office certainly
brings personal advantage. Dr. Bourne, for instance, was quoted by the
Washington Post as saying at a recent Washington party, 'Right now I'm just
trying to figure out how to exploit my new-found celebrity [status] to the
greatest advantage.'" "The President should see that such a flippant
attitude is not rewarded."
[clipped into margin of bad photocopy:
Boston
Herald American -- Monday September 11, 1978
WASHINGTON By appointinghis long-time political guru, Atlanta lawyer Charles
Kirbo, to an informal overseer's role in the probe into the huge graft scandal
at theGeneral Services Adminstration, President Carter thought he might pick up
a few brownie points for showing a "personal" interest in fighting
crime.
Instead, he demonstrated how little he, or any of the Cater Geor-gia
Crowd, learned from Watergate.
Only five years ago, a White House
politician named John Dean was assigned to "represent" presi-, tial
interests in what later be came, known as a cover-up; such White House meddling
at Justice led Elliot Richardson, when he was appointedd attorney general, to
re. fuse to divulge to anyone at the White House details of the Spiro Agnew
probe for fear of compromising the investigation.
Of course, the black hats
of yesteryear now wear white hats, but the principle remains the same: when
evidence of crim in government appears, the investigation and prosecutive of
that crime is first and foremost the responsibility of the attorney general and
his Department of Justice. White House interference - whether called "direction,"
"interest," or "corrdination" - is improper on its face,
whether its purpose is to cover up or claim the credit.
But Carter likes
the czar system: Jim Schlesinger is his energy czar. Robert Strauss is his
inflation czar, and Charles Kirbo was to be his part-time clean-government czar.
Fortunately, Attorney General Griffin Bell - a former Kirbo law partner - saw
the Carter move for what it was not only an insult to his department and a
reflection on his integrity, but a fundamnetal mis- reading of the criminal
justice procedure. No president can send any private citizen, no matter how
trusted, into a grand jury room, or make him privy to the progress of targets of
such a probe.
That's why a Justice Department press agent put out a
statement sharply contradicting the White House; the Carter spokesmen backed
off, explaining that Kirbo would be merely an informal advisor to the GSA,
helping to "coordinate" the investigation and to keep Carter informed.
What iii this "coordination" busi- • 1`} ness? The extent of
cooperation +u be-tween GSA internal investigators . and Justice officials
requires no du-'+ cision at all: it GSA gumshoes who not cooperate
wholeheartedly, with 1.1w enforcement official', they should tie prosecuted for
obstruct-ing justice. Than they'll coordinate Kirbo ought to get all the way in
taking over as attorneygeneral, or get out. The notion of A lawyer whose clients
do millions of dollars in business with the GSA - being a middle man between
the GSA chief, the president, and the copes, reeks .; of conflict of interests.
This "Czar Kirbo" episode vivid.,.". iv illustrates the depths to
which the reputa}on for compe tence of the Justice Department has sunk, even
in White House eyes, and for reason:
.. 1. As the AG glove-trots, his 1
Number l--" "Baltimore Ben" Civ- . t iletti -- policians his
staff. tic has brought in Charles Ruff, the Democrat whose protracted
investigations • Into It maritime-industry smear President Ford during t e
'76 cam paign helped elect Carter; his other . lap aide ill Paul Michel, who
must be Tip O'Neill's favorite prosecutor, rewarded for botching the Korean
investigation.
2. As if under instructions to postpone a Lance indictment
until after el ection day. Justice's "Nam- arato Trio" -- after nine
long months -with' an Atlanta grand jury - has only just now subpoened the
records of the National bank, of Georgia's heavy loans to the Carter peanut
business, the Carter cam- paign and the Kufshoon advertising agency. (And not,
all the right records at that.)
[BEGIN HANDWRITTEN UNDERLINE]
3. When the highest federal drug official broke a federal law by fraudulently
prescribing a dangerous substance, Jusitce declined to investigate on the
grounds that Dr. Bourne's lawbreaking was covered by "competent local
jurisdiction" across the Potomac River in Virgina.
[END
HANDWRITTEN UNDERLINE]
No wonder Justice has become a snakepit. Deputy
Civiletti jockeys for the top job, as President Carter wonders about switching
Joe Califano's cabinet chair, which horrifies the Georgia Mafia who would rather
see domestic adviser Stu Eizenstadt as Attorney General. Bring on Kirbo: an
outright political crony. In that job is the grand tradition.
In The United States District Court
For the
District of Columbia
United States of America
v.
Peter Bourne
Ellen Metsky
Criminal No. ______
The Grand Jury Charges:
Count 1
From on or about July 7, 1978, and continuing thereafter LIP to and including
July 11, 1978, in Washington, D.C., Peter Bourne, a licensed physician, and
Ellen Metsky, defend ants knowingly and intentionally did combine, conspire,
confederate and agree together, with each other and with other persons known and
unknown to the Grand Jury, to commit offenses against the laws of the United
States, to wit:
A) Knowingly and intentionally to obtain directly without a
valid prescription a controlled substance known as quaalude which is a
derivative of methaqualone, a Schedule II controlled substance, in violation of
Title 21, U.S. Code, 6 844.
C3) The defendant Bourne knew or should have
known that it is unlawful to obtain quaalude without a valid prescription and in
order to facilitate the acquisition of said amount of quaalude said defendant
Bourne did prepare a fraudulent and deceptive prescription for the defendant
Metsky under the fictitious name of 'Sarah Brown` in violation of Title
OVERT ACTS
1 ) On or before July 7, 1978, the defendant Metsky asked the
defendant Bourne to write a prescription for her using the fictitious name of
Sarah Brown for an amount of quaalude. 2) On or about July 7, 1978, the
defendant Peter Bourne wrote a prescription to the fictitious name of Sarah
Brown for _____amount of quaalude knowing that said prescription was for the
defendant Ellen Metsky's use.
3) Between July 7 and July 11, 1978, the
defendant Metsky presented the fraudulent prescription to a pharmacist in the
District of Columbia. The defendant Metsky had received said prescription July
7, 1978, from the defendant Bourne. 4) On July 11, 1978, Toby M. Long, a friend
and associate of the defendant Metsky, presented the fraudulent prescrip- tion
dated July 7, 1978, to Kathleen Watt, a pharmacist, at people's Drug Store in
Woodbridge, Va., in an attempt to procure the receipt of said amount of quaalude
for the defendant Metsky.
A violation of Title 21, United States Code,
Section 846.
Law Offices
Kenneth Michael Robinson
The
Judician Square
306 6th Street, N.W.
Washington, D.C. 20001
October 26, 1978
Foreman
Federal Grand Jury
C/S United States
District Courthouse Third & Constitution Avenues, N.W. Washington, D.C.
20001
Dear Mr. Foreman:
The American Citizens for Honesty in Government has
retained me in their efforts to bring about equality before the law concerning
the alleged federal violations of Dr. Peter G. Bourne, former Chief advisor to
President Carter on drug abuse, which to date have gone unprosecuted by the
Department of Justice and the U. S. Attorney's Office in D.C.
On October 2,
1978 the attached letter was sent to Assistant U.S. Attorney Brian Shaughnessy.
As you can see the letter requests that the U.S. Attorney's Office present the
information available in the Bourne matter to the Grand Jury. Attached to the
letter was a draft indictment I did as an example of what a Grand Jury might
turn out were it presented with the facts in this case. There may be some errors
on small facts in it but of course I lack the resources that the Grand Jury has
available.
It might be of interest to you that this lack of prosecutorial
action has not escaped congressional scrutiny. Congressman Paul Findley (R-111)
has also written the Department of Justice. His letter is attached hereto along
with the response from Deputy Attorney General Benjamin Civiletti which
indicates the Departments lack of initiative and responsibility in this matter.
Foreman
October 26, 1978
Page Two
Also enclosed is Mr. Silbert's recent response to my October 2, 1978 letter and
my response to him urging him to forward all material to you.
In conclusion
I might say that there is a rather large movement underfoot nowadays that
questions whether a Grand Jury is really all that grand since most often the
prosecutors and not the grand jurors use the discretion on whether cases should
be presented to you. As a former Assistant U.S. Attorney, 1969-1973, 1 know how
faithfully grand jurors perform their function.
and can only say that this
case is one that perhaps you should review. Best regards,
KENNETH MICHAEL ROBINSON
KMR/rys Enc:
1 S The Sentinel-Record, Wednesday, December 22,1993
By The Associated Press WASHINGTON - The Church of Scientology holds assets of
nearly $400 million, including a cruise ship used as a "seagoing religious
retreat," according to a detailed portrait of the group's financial network
provided to the Internal Revenue Service. The papers, which fill nine file
boxes, were submitted by the church as part of its 39-year effort to gain
tax-exempt status. The documents became public after the IRS granted an
exemption to mre than 20 Scientology organisations on Oct. 1.
The papers
offer an unprecedented public view of the huge organization, which includes two
publishing houses, a 2,845-acre California ranch used as a school for the
children of church staffers and more than 45 buildings on 500 acres in Riverside
County, Calif.
Other assets include reinforced vaults designed to preserve
the church's teachings in case of earthquake or nuclear attack, the documents
said.
The assets reported in the various documents filed with the IRS
totaled $398 million.
The Los Angeles-based church does sheets but "t
e cam fined total if kept, would be somewhere in the range you list,"
Scientology spokeswoman Leisa Goodman said in a written response to questions.
The church was founded in 1954 by science fiction writer L. Ron Hubbard whose
best-selling Dianetics: The Modern Science of Mental Health," advocated the
use of an "electropsychometer" - a lie detector-like device to purge
negative images from people's ninds.
The IRS recognized one branch, the
Church of Scientology of Calfornia, as a tax-exempt religious org anization in
1957. But it revoked that status in 1967, questioning, for example, the way the
church charged for classes that ire part of the religious practice.
None of
the IRS letters in the files explained the legal reasonng behind granting tax
exemption this year. Some noted, however, that the IRS found no evilence of "inurement
" or private enrichment, which is barred under he tax law governing
religions and charitable organizations.
IRS spokesman Frank Keith said the
agency concluded the church "is operated exclusively for religious and
charitable purposes. o y, was listed as being paid $2,684 in 1991 and $34,779 it
1992. Several Scientologists, however earned six-figure commissions for raising
donations to church entities, including the International Association of
Scientologists, according to the filings.
One, identified in the documents
as Barry Klein, was aid $217,694 in 1989 and $201,34 in 1990, the records show.
Another named in the documents- as Ken Pirak made $407 052 in 1991 and a third
identified as Steve Grant earned $339,978 that year, the records said.
Goodman called those figures "somewhat inaccurate" because "the
amount paid to them represents commissions for themselves and all staff employed
by them." She said the commissions could be divided among as many as five
or 10 staff members.
The 440-foot cruise ship Freewinds is operated by
Scientology's Flag Ship Service Organization as "a safe, distractionfree
environment for the ministry of the highest and most confidential Scientology
auditing level," FSSO said in its application for tax exemption.
velope by ubbard in which adherents are connected to an electropsychometer,
which "measures the mental state and change of state in individuals,"
according to Scientology literature.
Documents valued the ship at $12.5
million for insurance purposes, and said it can accommodate 300 passengers and a
crew of 129. The filing described the Freewinds as having "very limited
recreational facilities - onl one small pool, used four or five ours
sporadically throughout the day; one volleyball court, used one hour a day, if
that; one basketball hoop, which might be used a half-hour each day, and no
shuffleboard or tennis courts. ... Gambling is not permitted and alcohol is not
served to either passengers or crew."
`Several glossy, four-color
travel brochures in the filings promise "a level of service second to none."
They show pictures of people lounging at the ship's pool and attending evening
events in formal wear. Several church organizations are operated by members of
the "Sea Or g," or Scientology religious order. These members "must
pledge the next billion years of their existence to the Scientology religion,"
according to the docuchild care, medical and dental care and stipends of $30 to
$50 a week
- plus unspecified bonuses f good performance, the documer said.
The church has frequently garnered public attention. Several of its officials
were cc victed of obstructing justice in federal investigation of church
activities in the late 1970s. In the mid-1980x, it paid an estimated $5 million
to settle 20 lawsuits 1 former church members who alleged they had been harasse
blackmailed and emotional abused.
In his later writings, Hubba said that
seeds of aberrant b havior were planted in human 75 million years ago because an
evil tyrant named Xem Church leaders have said the m dia distorted the writings.
Hubbard died in 1986.
Scientology sect ins exemption [handwritten: WTimes 12/22/93] ASSOCIATED PRESS
The Church of Scientology holds assets of nearly $400 million, including a
cruise ship used as a "seagoing religious retreat," according to a
detailed portrait of the group's financial network provided to the Internal
Revenue Service.
The papers, which fill nine file boxes, were submitted by
the church as part of its 39-year effort to gain tax-exempt status. The
documents became public after the IRS granted an exemption to more than 20
Scientology organizations on Oct. 1.
The papers offer an unprecedented
public view of the huge organization, which includes two publishing houses, a
2,845-acre California ranch used as a school for the children of church staffers
and more than 45 buildings on 500 acres in Riverside County, Calif.
Other
assets include reinforced vaults designed to preserve the church's teachings in
case of earthquake or nuclear attack, the documents said.
The assets
reported in the various documents filed with the IRS totaled $398 million.
The Los Angeles-based church does not keep combined balance sheets, but "the
combined total, if kept, would be somewhere in the range you list,"
Scientology spokeswoman Leisa Goodman said in a written response to questions.
The church was founded in 1954 by science fiction writer L. Ron Hubbard, whose
best-selling "Dianetics: The Modern Science of Mental Health,"
advocated the use of an "electropsychometer" - a liedetector-like
device to purge negative images from people's minds. The IRS recognized one
branch, the Church of Scientology of California, as a tax-exempt religious
organization in 1957. But it revoked that status in 1967, questioning, for
example, the way the church charged for classes that are part of the religious
practice. None of the IRS letters in the files explained the legal reasoning
behind granting a tax exemption this year. Some noted, however, that the IRS
found no evidence of "inurement," or private enrichment, which is
barred under the tax law governing religions and charitable organizations.
IRS spokesman Frank Keith said the agency concluded the church "is operated
exclusively for religious and charitable purposes." The 440-foot cruise
ship Freewinds is operated by Scientology's Flag Ship Service Organization as "a
safe, distraction-free environment for the ministry of the highest and most
confidential Scientology auditing level," FSSO said in its application for
tax exemption.
"Auditing" is a technique developed by Mr. Hubbard
in which adherents are connected to an electropsychometer, which "measures
the mental state and change of state in individuals," according to
Scientology literature.
Documents valued the ship at $12.5 million for
insurance purposes, and said it can accommodate 300 passengers and a crew of
129. The filing described the Freewinds as having "very limited
recreational facilities."
Several church organizations are operated by
members of the "Sea Org," or Scientology religious order. These
members "must pledge the next billion years of their existence to the
Scientology religion," according to the documents. They receive room,
board, child care, medical and dental care and stipends of $30 to $50 a week -
plus unspecified bonuses for good performance, the documents said. One entity,
the Church of Spiritual Technology, reported spending nearly $13 million in 1992
to preserve Mr. Hubbard's writings and lectures. Mr. Hubbard died in 1986.
It has designed gas-filled, titanium time capsules to hold Mr. Hubbard's
teachings, and plans to place 10,500 of the capsules in three vaults, two built
to resist earthquakes or nuclear attack, according to the documents.
SD Union
Sunday, December 26, 1993
By KIM I. MILLS Associated Press
WASHINGTON - The Church of Scientology
holds assets of nearly $400 million, including a cruise ship used as a "seagoing
religious retreat," according to a detailed portrait of the group's
financial network provided to the Internal Revenue Service.
The church
submitted the papers, which fill nine file boxes, as part of its 39-year effort
to gain tax-exempt status. The documents became public after the IRS granted an
exemption to more than 20 Scientology organizations Oct. 1.
The papers
offer an unprecedented public view of the huge organization, which includes two
publishing houses, a 2,845-acre California ranch used as a school for the
children of church staffers, and more than 45 buildings on 500 acres in
Riverside County.
Other assets include reinforced vaults designed to
preserve the church's teachings in case of earthquake or nuclear attack, the
documents said.
The assets reported in the documents total $398 million.
The Los Angeles-based church does not keep combined balance sheets, but "the
combined total, if kept, would be somewhere in the range you list,"
Scientology spokeswoman Leisa Goodman said in a written response to questions.
The 440-foot cruise ship Freewinds is operated by Scientology's Flag Ship
Service Organization (FSSO) as "a safe, distraction-free environment for
the ministry of the highest and most confidential Scientology auditing level,"
FSSO said in its application for tax exemption.
"Auditing" is a
technique developed by Hubbard in which adherents are connected to an
electropsychometer, which "measures the mental state and change of state in
individuals," according to Scientology literature.
Documents valued
the ship at $12.5 million for insurance purposes, and said it can accommodate
300 passengers and a crew of 129. The filing described the Freewinds as having "very
limited recreational facilities - only one small pool, used four or five hours
sporadically throughout the day; one volleyball court, used one hour a day, if
that; one basketball hoop, which might be used a half-hour each day, and no
shuffleboard or tennis courts. . .. Gambling is not permitted and alcohol is not
served to either passengers or crew."
Several glossy four-color travel
brochures in the filings promise "a level of service second to none."
They show pictures of people lounging at the ship's pool and attending evening
events in formal wear. T ne cnurcn was founded in 1954 by science fiction writer
L. Ron Hubbard, whose best-selling "Dianetics: The Modern Science of Mental
Health" advocates the use of an "electropsychometer" - a lie
detector-like device to purge negative images from people's minds.
The IRS
recognized one branch, the Church of Scientology of California, as a tax-exempt
religious organization in 1957. But it revoked that status in 1967, questioning,
for example, the way the church charged for classes that are part of the
religious practice.
None of the IRS letters in the files explained the
legal reasoning behind granting tax exemption this year. Some said, however,
that the IRS found no evidence of "inurement," or private enrichment,
which is barred under the tax law governing religions and charitable
organizations.
IRS spokesman Frank Keith said the agency concluded the
church "is operated exclusively for religious and charitable purposes."
According to the documents, most church officials receive modest salaries. David
Miscavige, director of the Religious Technology Center and holder of the highest
ecclesiastical position in Scientology, was listed as being paid $62,684 in 1991
and $34,779 in 1992. Several Scientologists, however, earned six-figure
commissions for raising donations to church entities, including the
International Association of Scientologists, according to the filings. One,
identified in the documents as Barry Klein, was paid $217,694 in 1989 and
$201,314 in 1990, the records show. Another named in the documents as Ken Pirak
made $407,052 in 1991, and a third identified as Steve Grant was paid $339,978
that year, the records said. Goodman called those figures "somewhat
inaccurate" because "the amount paid to them represents commissions
for themselves and all staff employed by them." She said the commissions
could be Several church organizations are operated by members of the "Sea
Org," or Scientology religious order. These members "must pledge the
next billion years of their existence to the Scientology religion,"
according to the documents. They receive room, board, child care, medical and
dental care and, stipends of $30 to $50 a week - plus unspecified bonuses for
good performance, the documents said. The church has frequently gar-nered public
attention.
Several of its officials were convicted of obstructing justice
in a federal investigation of church activities in the late 1970s. In the
mid-1980s, it paid an estimated $5 million to settle 20 lawsuits by former
church members who alleged they had been harassed, blackmailed and emotionally
abused,
In his later writings, Hubbard said the seeds of aberrant behavior
were planted in humans 75 million years ago because of an evil tyrant named
Xemu. Church leaders have said the media distorted the writings. Hubbard died in
1986.
One entity, the Church of Spiritual Technology, reported spending
nearly $13 million in 1992 to preserve his writings and lectures. It has
designed gas-filled titanium time capsules to hold Hubbard's teachings, and
plans to place 10,500 of the capsules in three vaults, two built to resist
earthquakes or nuclear attack, according to the documents.
Hubbard's
writings will be preserved on 1.8 million stainless steel plates and his
lectures on 187;000 nickel records that could be played back with a stylus as
crude as a thorn in the event of some future cataclysm, the documents said.
This division also plans to place large indestructible obelisks around the world
covered with pictographs explaining Scientology "so that even a wandering
savage will be able to understand and apply [...]
