February 1, 2002

The White House
1600 Pennsylvania Avenue
Washington, DC 20500

Hon. Colin L. Powell
Secretary of State
U.S. Department of State
2201 C Street, NW
Washington, DC 20520

Hon. Paul O’Neill
Secretary of the Treasury
1500 Pennsylvania Avenue, NW
Washington, DC 20220

Hon. Charles O. Rossotti
Commissioner of Internal Revenue
Internal Revenue Service
1111 Constitution Avenue
Washington, DC 20224

Hon. Mitchell E. Daniels
Director
Office of Management and the Budget
725 17^th Street, N.W.
Washington, DC 20503

Hon. Robert S. Mueller, III
Director Federal Bureau of Investigation
935 Pennsylvania Avenue, NW
Washington, DC 20535-0001

James ("Jim") Towey
Director
Office of Faith-Based Community Initiatives
The White House
1600 Pennsylvania Avenue
Washington, DC 20500

Hon. David M. Walker
Comptroller General of the United States
United States General Accounting Office
441 G Street, NW
Washington, DC 20548

GAO FraudNET
United States General Accounting Office
441 G Street, NW
Washington, DC 20548

Honorable Gentleman:

I respectfully submit the following information to your respective offices for immediate action:

(1) Criminal Complaint;

(2) Fraud Complaint;

(3) Request For Investigation;

(4) Request For Grand Jury Proceedings and Criminal Prosecution;

(5) Request for investigation of apparent public corruption: involving, inter alia: Church of Scientology International and the 150 other Churches and corporations of Scientology benefiting from the 1993 and 1999 tax closing agreements; Fred T. Goldberg, Esq., of Washington, DC., Margaret Milner Richardson, Esq., of Washington, DC; David Miscavige of Hemet and Los Angeles, California; Mark ("Marty") Rathbun of Los Angeles and Hemet, California and Clearwater, Florida; Michael Rinder of Los Angeles and Hemet, California and Clearwater, Florida; Gerald Feffer, Esq., of Washington, DC; Kendrick L. Moxon, Esq., of Los Angeles, California and Clearwater, Florida.

 

 

On January 21, 2002, I wrote to the United States Attorney General, Hon. John Ashcroft, and requested the U.S. Department of Justice to commence an immediate criminal investigation into allegations and evidence involving the Church of Scientology’s seven years of alleged R.I.C.O. activity against me and numerous other persons who are also victims of Scientology sponsored terrorism, psycho-terrorism, fraud and crime. Many of the Church’s criminal and terroristic activities are conducted with tax-exempt monies and with the implicit blessing of the Treasury and the Internal Revenue Service. My January 21, 2002, complaint also requested a grand jury investigation of related public corruption involving, among others, certain of the Church of Scientology’s leaders, lawyers, former LAPD Sergeant Eugene Ingram, the Los Angeles District Attorney’s Office, the Los Angeles City Attorney’s Office and the State Bar of California. On January 30, 2002 I again wrote to the Attorney General and advised him of the January 29, 2002, Ninth Circuit Court of Appeals decision discussed below. I have received no response from the Department of Justice.

My detailed 134 page criminal complaint describes the activities of a number of Scientology leaders and Church of Scientology retained lawyers including former Los Angeles Police Commission President Gerald Chaleff and former Los Angeles County Criminal Courts Bar Association President Donald Wager. In addition, the criminal complaint describes egregious conflicts of interest involving Los Angeles Superior Court judge Alexander Williams, III, who is no stranger to public controversy involving his lack of appropriate judicial temperament.

My January 21, 2002, complaint also alleges that the Church of Scientology, certain of its lawyers and private investigators, blackmailed the IRS Commissioner during the George H. Bush and Clinton Administrations to grant the Church of Scientology a one billion dollar tax-relief package and tax-exempt status.

The complaint also details the Church of Scientology’s "secret" written policies in support of terrorism, crime and the totalitarian take-over of all governments as well as the elimination of all other religions.

Of particular interest is the evidence regarding the use of tax-exempt monies in Church of Scientology ordered forced abortions and concentration-like internment camps on United States soil.

In addition, I noted that an Internet petition has gathered nearly one thousand verifiable signatures demanding an immediate Department of Justice investigation into the alleged and demonstrable criminal activities, human rights violations, civil rights violations and financial frauds being committed by the Scientology enterprise and its agents. http://www.petotopnonline.com/mod_perl/signed.cgi?cofs1

The matters described on pages 15-86 of my January 21, 2002, letter to Hon. John Ashcroft clearly establish the fraudulent and material misrepresentations that the Church of Scientology, Moxon (Scientology's in-house lawyer) and Feffer (a partner at Williams & Connolly) made to the IRS in connection with not only its pre-1993 behavior, but also with its post-1993 intentions. Specifically, the October 1993 letter from Jeanne S. Gessay, Chief, Exempt Organizations Rulings Branch 2 (Refer to E: EO: R: 2) to Church of Scientology International (Employer Identification Number 59-2153303) states:

"Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined that you are exempt from federal income tax under section 501 (a) of the Internal Revenue Code as an organization described in section 501 (c) (3)."

It is beyond any reasonable doubt that the "information" that the Church of Scientology supplied to the IRS included many major material misrepresentations, and that many of the Church’s "operations", direct and indirect, were not as stated in the Church of Scientology Application For Exemption. Consequently, the tax-exempt status fraudulently procured by the approximately 150 different Church of Scientology corporations must be revoked and appropriate back taxes, penalties, interest and fines imposed upon the various Church corporations (particularly the Church of Spiritual Technology, Religious Technology Center and the Church of Scientology International). Based on the Church’s own admitted 1993 tax exposure exceeding one billion dollars, the aggregate amount now due the U.S. Treasury could exceed three billion dollars.

In addition, those Church leaders, trustees, directors, officers, employees, agents, attorneys and private investigators associated with this unparalleled criminality and fraud must be prosecuted and punished to full extent provided by applicable law.

II. THE JANUARY 29, 2002, NINTH CIRCUIT DECISION IN SKLAR v. IRS

On January 30, 2002, the Los Angeles Times published a report of a January 29, 2002, Ninth Circuit Court of Appeals decision regarding the Church of Scientology’s 1993 receipt of full tax-exempt status from the I.R.S. I addressed the apparent illegal circumstances and preferential impact of the 1993 and 1999, Scientology tax exemption matter in my January 21, 2002, letter to the U.S. Attorney General at pages 9, 10, 12, 21, 24, 35, 49, 80, 83, 88-90, 95, 102, 110, 112-117, 130 and 133. For ease of reference, my January 21, 2002, letter to the Attorney General can be located on the Internet at:

http://www.lermanet2.com/reference/GrahamBerry/criminalcomplaint.htm

http://holysmoke.org/cos/docs/gb-ashcroft-complaint.htm

http://www.freedomofmind.com/groups/scientology/scientology.asp

In light of the contents of those pages in particular, the January 29, 2002, Ninth Circuit’s decision in Sklar v. Internal Revenue Service should be of great interest to the Department of the Treasury, the Department of Justice, the General Accounting Office, the current Administration generally, the Congress and the media.

http://www.ca9.uscourts.gov/ca9/newopinions.nsf/27B565D1754D4E5E88256B50005F20CE/$file/0070753.pdf?openelement

A very exhaustive analysis, timeline and list of related reference materials has just been assembled by knowledgeable researcher and commentator Jeff Jacobson. The materials are now available by accessing the following URL and then the further URLs located on the new web page:
http://www.lisamcpherson.org/cos/irschosen.htm

The Ninth Circuit in Sklar has now held that the IRS-Church of Scientology Closing Agreement, "… facially discriminates among religions … as this tax deduction is available only to members of the Church of Scientology." (emphasis added) The separate concurring decision of Judge Silverman commented that the issue was the lawful deductibility of religious contributions and, "…not whether members of the Church of Scientology have become the IRS’s chosen people. … If the IRS does, in fact, give preferential treatment to members of the Church of Scientology -- allowing them a special right to claim deductions that are contrary to law and rightly disallowed to everybody else -- then the proper course of action is a lawsuit to put a stop to that policy. The remedy is not to require the IRS to let others claim the same improper deduction, too." (footnotes omitted) Interestingly, the IRS-Scientology Closing Agreement expressly provides that the post-Hernandez unlawful Scientology deductions for "auditing" (i.e., deductions given for "counseling" for specific fixed donations) will only be available to Church of Scientology taxpayers.

Specifically, horrifyingly, and patently illegally the IRS contractually bound itself to discriminate in favor of Scientology. In the Scientology IRS Settlement Agreement you will find,

"ix. …the following actions will be considered to be a material breach by the Service…

b. the issuance of a Regulation, Revenue Ruling or other pronouncement of general applicability providing that fixed donations to a religious organization other than a Church of Scientology are fully deductible." emphasis added

http://www.lisamcpherson.org/cos/irs.htm

IV. Obligations and Undertakings During The Transition Period.

A. Establishment of the Church Tax Compliance Committee

3. Responsibilities of CTCC.

d. Guaranty.

ix. … b.

Clearly this is not what was intended by the founding fathers. Obviously, it is an egregious violation of the First Amendment of the Constitution of the United States. Most certainly it was not the intent of the framers to enjoin Congress from, "…making (no) law respecting the establishment of religion…" (Article One of the U.S. Constitution) while at the same time empowering the Department of the Treasury to do so.

Among other things, these improper deductions were part of the reason for the seven-year long Church of Scientology R.I.C.O. enterprise against me which, among other things, I have requested the U.S. Department of Justice to investigate and prosecute. See generally, my January 21, 2002, letter to Hon. John Ashcroft, pages 1 and 130. Not only was this particular Church of Scientology R.I.C.O. enterprise commenced to silence me on these tax matters, but subsequent tax-exempt monies have also funded it. Those tax-exempt monies were the product of fraud upon the IRS and are now used to continue that fraud upon both the IRS and the courts. See generally, my January 21, 2002, letter to Hon. John Ashcroft, pages 10-11,18-20, 22, 24-86. The Church of Scientology R.I.C.O., terrorist and "psycho-terror" enterprise against me largely confines me to the relative security of my residence, my future utterly devoid of prospects. I look to your office to take the appropriate action for the reasons, in part, that are set forth on pages 75 - 86 of my January 21, 2002, letter to Mr. Ashcroft.

In Sklar, the Ninth Circuit effectively agreed with those who have previously argued that the Clinton Administration could not respond to blackmail, extortion and corruption by unilaterally over-ruling the U.S. Supreme Court decision in Hernandez v. Commissioner, 490 U.S. 680, 104 l. Ed. 2d 766, 106 S. Ct. 2136 (1989). For example, see Alison H. Eaton's Can The IRS Overrule The Supreme Court? http://www.law.emory.edu/ELJ/volumes/sum96/alison.html

In Hernandez the Supreme Court held, in essence, that Scientologists could not deduct payments for their religious practice of "auditing". A practice wherein Scientologists pay prescribed sums of money (fixed donations) and in return receive something in kind just as the Sklar’s received religious education in return for what they alleged were charitable contributions to a tax-exempt religious organization. See generally: http://www.lermanet2.com/cos/pattinson1.htm (paragraphs 262-283).

The Church of Scientology, acting through lawyers such as Williams & Connolly partner Gerald Feffer and Church of Scientology in-house lawyer Kendrick Moxon, responded to the Hernandez decision with the outrageous conduct that I describe in my aforenoted letter.

In addition to the domestic "psycho-terrorism" described in my January 21, 2002, letter to Hon. John Ashcroft, these matters also involve the largest ever known tax fraud in the United States, resulting in a secret blackmailed Clinton Administration tax-relief package to the Scientology enterprise and to its leader, Miscavige, personally. According to Scientology’s head, the so-called "Captain" David Miscavige, the Clinton Administration relieved the Church and its leaders from over one billion dollars in past due taxes, penalties and interest.

http://www-2.cs.cmu.edu/~dst/Secrets/irs-closing.html and http://wpxx02.toxi.uni-wuerzburg.de/~cowen/essays/irs-closing.html

At the same time, the Clinton Administration’s "religious recognition" and "full tax exemption" permitted the Church of Scientology to determine its own future tax compliance, and that of its members, through the IRS sanctioned Scientology Tax Compliance Committee headed by the aforementioned Scientology "ecclesiastical" leader Captain David Miscavige. This can properly be compared to putting Al Capone in charge of Fort Knox! http://www.zeta.org.au/~hendersn/ctcc.html

Church of Scientology "sacred" scripture confirms this:

"Taxes exist only to destroy business. Be impudent. Get rich and to hell with them. Governments are just a reactive bank we have to live with for a while…Still try and use the above system. But if you can’t, pay it and retard other bills accordingly. And thereafter, don’t pay that

outfit’s bills on any other terms than threatened trouble."

[Hubbard Communications Office Policy Latter, 28 January 1965]

Mitch Daniels, current Director of the Office of Management and Budget, has unique Bush Administration experience with the Church of Scientology. It sued him personally and his then employer Eli Lilly. Church of Scientology v. Daniels, 992 F. 2d 1329 (1993), cert. denied, _U.S. _. Eli Lilly’s best selling drug, Prozac, is a major and continuing target of the Church of Scientology, which believes that its "scientifically proven," tax-exempt "technology" and its "religious artifact," the E-Meter, should replace the entire Mental Health profession and pharmaceutical industry. Mr. Daniels’ participated in an aggressive and successful defense and settlement of the case. As Mr. Daniels told USA Today, "Any vulnerable patient saved by psychiatry or therapy of any kind is one less potential victim for them [the Church of Scientology]." which he had also argued was driven by "crass financial motives." (emphasis added) Mr. Daniels is also receiving a copy of this letter and I urge you to discuss its contents with him. Indeed, his Office of Budget and Management (and the entire federal government) could surely use back taxes accrued since 1993; back taxes of approximately one billion dollars (as of 1993) plus fines, penalties, interest as well as eight years of subsequent taxes, fines, penalties and interest.

The U.S. government has not always had its current, permissive attitude toward tax-exempt Scientology domestic "psycho-terrorism," crime and fraud. In fact, under Presidents Nixon, Ford, Carter, Reagan and George H. Bush, the U.S. government

strongly, steadfastly and successfully resisted Scientology’s tax-free status because of the long history of such conduct as is described in my January 21, 2002, letter to Hon. John Ashcroft.

The old IRS, FBI and DoJ were not deterred by Scientology's filing over 2,000 lawsuits against the U.S. government and its individual employees. Indeed, some of the relevant legal cases are searchable on the Department of Justice Internet Web Site. http://www.usdoj.gov/

However in 1991, Moxon, through OSA ("Office Of Special Affairs") staffer Ben Shaw, allegedly paid over one million dollars to a Maryland private investigator who then "investigated" IRS Commissioner Goldberg. This and related information was uncovered by Doug Frantz, National Correspondent for The New York Times, who explained how he developed the leads and story in a speech to The Nieman Foundation For Journalism at Harvard University.

http://www.nieman.harvard.edu/events/conference/watchdog2/4th_panelnonpfof.html-Frantz

The New York Times provided the first comprehensive review of the secret settlement agreement. "Scientology’s Puzzling Journey From Tax Rebel to Tax Exempt." http://wpxx02.toxi.uni-wuerzburg.de/~krasel/CoS/irs/970309a.html A comprehensive timeline, analysis and hyper linked list of extensive other media and critical comment are available http://wpxx02.toxi.uni-wuerzburg.de/~krasel/CoS/irs and http://wpxx02.toxi.uni-wuerzburg.de/~cowen/essays/irs.html . See also, for example: Scientology’s Tax Exemption Should Be Rescinded http://lisatrust.bogie.nl/scientology/essays/jeff-irs.htm and Piercing The Corporate Veil http://wpxx02.toxi.uni-wuerzburg.de/cowen/essays/corporate.html and Second In Command Tells All http://www.factnet.org/Scientology/second_tells_alli.html as well as the Affidavit of Stephen A. Kent sworn January 6, 2000. http://lisatrust.bogie.nl/legal/affidavit-kent-religion.htm

Part of the same secret tax agreement required the Clinton Administration to actively participate in the Church of Scientology’s dissemination, copyright infringement litigation, "tax-exempt" agenda and lobbying concerning foreign tax authorities, Interpol

and foreign governments, particularly in Europe. U.S. Government trade sanctions were threatened against nations, Sweden for example, which did not comply with the Clinton Administration's demands made on behalf of the Church of Scientology. This billion

dollar federal tax relief package to a R.I.C.O. enterprise and "religious" corporation engaging in domestic "psycho-terrorism" has, among other things, and according to the written Scientology policies and practices collectively referred to as "Fair Game," funded the harassment and "utter destruction" of me, a New York and California attorney, as well as other American citizens and entities too numerous to list herein. This is generally described on pages 9-86 of my aforenoted letter dated January 21, 2002.

Regrettably, it is now apparent that Clinton-era ethics have become the rule of law in the U.S. Federal government. Indeed, on July 18, 1998, The Wall Street Journal examined the Church of Scientology’s use of its celebrity representatives (particularly Tom Cruise and John Travolta) to influence the Clinton Administration, particularly President Clinton himself and his National Security Advisor, Sandy Berger. Sandy Berger even gave "security briefings" to John Travolta who reportedly agreed to tone down the purportedly Clinton-esque movie Primary Colors. During the turbulent 1999 political year, while outrageously thumbing its nose at the numerous exposés of the blackmailed "secret" 1993 Scientology-IRS tax deal, the Clinton IRS quietly renewed the Church’s fully tax-exempt status.

Clearly the lobbying activities of Scientology's celebrities has not abated during the current Bush administration. According to an MSNBC Report by Ashley Pearson published on January 31, 2002,

"Tom Cruise has been working overtime on behalf of the Church of Scientology. On Wednesday, it made headlines overseas that the "Vanilla Sky" actor, a devout Scientologist, had met with Dan Coats, the U.S. ambassador to Germany, to lobby the case for the rights of the church in Germany. A top church official, however, tells The Scoop that Cruise has been privately meeting with top politicians on behalf of the church for the last few years." 

Ms. Pearson goes on to say:

"KURT WEILAND, a director of the church, says that among the U.S. officials who have met with Cruise to discuss the Church of Scientology’s plight are Attorney General John Ashcroft and Sen. Jesse Helms, the Republican from North Carolina who is also senior member of Foreign Relations Committee.

       Weiland says that there were 'private meetings and correspondence' between Cruise and both Helms and Ashcroft 'a few years ago.' When asked if those meetings and letters resulted in anything, Weiland said, 'Yes. Efforts were made by them to let the German government know that . . . . they were missing the mark.' " (emphasis added)

http://www.msnbc.com/news/696737.asp

Unfortunately and tragically, given what we know about Scientology's tactics, I suspect that it is entirely possible that I shall never be contacted by the Attorney General.

The Clinton Administration-Church of Scientology Tax Closing Agreement was supposed to remain secret and confidential for reasons of "national security." However, and in truth, the Church of Scientology poses a clear and present danger to our national security. See generally the internal IRS report on the secret IRS Closing Agreement. Also: http://lisatrust.bogie.nl/NYT-030997.htm and http://lisatrust.bogie.nl/archives/forbes9-4-00.html and http://lisatrust.bogie.nl/Media/sptimes-standup.htm and

http://lisatrust.bogie.nl/LAT-6D.htm and http://www.xenu.net/archive/IRS/index.html and http://www.lermanet2.com/cos/taxanalysts/secretagreement.txt

According to The New York Times, Maryland private investigators Thomas Krywicki and Michael Shomers (and others) were hired and spent 18 months gathering

information on IRS officials who missed meetings, drank excessively, had extra-marital affairs, etc. http://wpxx02.toxi.uni-wuerzburg.de/~krasel/CoS/irs/970309a.html The Church of Scientology "investigation" was followed by a surprise, unannounced visit by Church of Scientology leaders David Miscavige and Mark ("Marty") Rathbun to then Commissioner Goldberg’s office. According to Mr. Goldberg’s secretary, they

just barged in and showed him the results of their "investigation" of him, conducted through Moxon. There is widespread public and media speculation that the Scientology leaders brazenly blackmailed the IRS Commissioner. Some even claim that the Church of Scientology entrapped the Commissioner into an incident of statutory rape.

A new Scientology IRS Form 1023, approximately 100,000 pages long, was filed and dated August 18, 1993. Six weeks later, on October 1, 1993, the IRS granted retroactive IRS section 501(c)(3) tax-exempt status "… based on information supplied, and assuming [Scientology’s] operations will be as stated in [its] application for recognition of exemption." Subsequently, also under President Clinton, the IRS announced a sudden, 180-degree turn in IRS policy toward Scientology. Thus the 20-year Scientology "War Against The IRS" was over. Moxon and Feffer were publicly feted and honored at a 1993, Nuremberg-style Scientology rally in Los Angeles. A videotape copy of this event was enclosed with my first letter to Mr. Ashcroft.

According to "Captain" Miscavige, his surprise visit to the IRS, and the subsequent IRS actions, saved Scientology from having to pay the IRS over one billion dollars. Captain Miscavige made particular note that even the Church of Scientology front group The Citizens For An Alternative Tax System, a political lobbying group intent upon abolishing the U.S. tax system, "…got full tax exemption." See generally: http://www.geocities.com/CapitolHill/9564/wsjclams.html (The Wall Street Journal: "The Scientology Problem") and http://www.wpxx02.toxi.uni-wuerzburg.de/cowen/essays/wj301297.htmlgeocities.com/CapitolHill/9564/wsjclams.html (The Wall Street Journal: "Scientologists and IRS settled for $12.5 million.") and http://www.factnet.org/Scientology/abuseprobe.html ("Will IRS abuse investigations probe the IRS Scientology fiasco?").

New York Times reporter Doug Frantz found that there was no one in Congress with the courage to investigate the IRS granting of tax exemption. "I had some contact with a staff member on Senate Finance, a guy who worked for Bill Roth, and he was

really hot to go, and had one conversation with Roth and the thing was over. Nobody gave a damn." emphasis added

http://www.nieman.harvard.edu/events/conference/watchdog2/4th_panelnonpfof.html-Frantz.

There is another version of this event. According to Bryan Haney (who has financially supported some private research of these matters), he had spoken with a Bill Nixon, Senator Roth’s Chief of Staff, who had said to the Senator that hearings had to be held. Allegedly, Senator Roth refused because, "The Church of Scientology has blackmail material on me [the Senator]." Mr. Haney could confirm this matter. However, and partly as a result of Scientology’s investment fraud through a WISE company ("World Institute of Scientology Enterprises" - an entity which was supposed to have ceased its operation under the settlement agreement), Scientology entered into a "gag" settlement with Mr. Haney who now spends much of his time out of this country.

As a result of the settlement agreement, payments for Scientology’s "scientifically proven" processing ("auditing") as well as for "training" in Scientology courses, often costing in excess of one million dollars, are now fully tax deductible, contrary to the historical position taken by the IRS and upheld by the courts for over twenty years. Hernandez v. Commissioner, 490 U.S. 680 (1988).

There was a Department of the Treasury Inspector General report (TIGTA 9-9801-0002) on these matters, but F.O.I.A. requests for it have been denied along with requests for,

"…additional investigative documentation both public and private which covers allegations both confirmed and suspected of blackmail, extortion, and other traditional racketeering activities instigated by the Church of Scientology which may have motivated the Closing Agreement".

FOIA ROI 8-901-0002, mentioned in IRS Press Release 31 Dec 1997, IR 97-50

In a November 27, 2001, response to Frederick L. Rice, the Inspector General for Tax Administration stated:

" A review of the TIGTA indices revealed that one (1) file is responsive to your to your request for a copy of TIGTA report "8-9801-0002 … TIGTA Report of Investigation (ROI) # 8 -9801 - 0002 consists of one hundred and twenty-three (123) pages. Sixty-two (62) of those pages constitute information which originated with the IRS; we are therefore referring those pages to the IRS for a release determination and direct reply to you."

Although the multi-volume IRS Form 1023 is publicly available, it is said that there is an entire room of IRS-Church of Scientology tax-exemption documents, which are not publicly available. The Church of Scientology has repeatedly claimed that its new form 1023 application was subjected to the most rigorous review and inspection ever conducted by the IRS. However, the IRS review and inspection was not nearly as rigorous and comprehensive as it should and could have been. The Declaration of Andre Tabayoyon, a former Scientology Sea Organization staffer explains:

"148. In December of 1992, Miscavige directed that we hide a large number of sea containers of financial records relating to the Church and himself. The sea containers were to be hidden from the Internal Revenue Service ("IRS") IRS investigators were scheduled to visit the Hemet base to inspect the records of various Scientology organizations in connection with the IRS's investigation of the various Church of Scientology entities that had applied for Section 501(c)(3) tax exempt status. (A sea container is a large transferable metal storage container, measuring approximately 40' x 8' x 8'6". These containers can be transported on flat bed trucks, flat bed railroad cars and container ships.)

149. The procedures for concealing the information contained in the sea container were set out in a written TRS handling program. It outlined the steps to be taken to secure the Hemet base and make sure that the IRS examiners did not see any information that Miscavige did not want the examiners to see.

150. There were a total of 20 sea containers involved in this concealment. We consolidated them down to 12 sea containers. I was also ordered to grade the land on which these containers had sat so that there was no proof of them ever having been there.

151. One of these sea containers of documents was mistakenly removed from the base unbeknownst to either me or Miscavige. At the time unused sea containers were being shipped from Gold base to their owners. Inexplicably, one of the sea containers containing concealed tax information was picked up and taken from the Gold base by the owner's employees who believed that the sea container was empty. When Miscavige learned that there had been a mistake in connection with the hiding of this sea container of financial documents, he was outraged. He flew into a tirade. He blamed me for the error and accused me of trying to destroy him. It ended up on a ship at San Pedro and was off- loaded before the ship's departure."

http://www.lermanet2.com/cos/andre.html

The Scientology’s "scientifically proven" claims have never been peer-reviewed by any independent agency. However, now the Scientology enterprise includes tax-relief as part of its glossy, incessant marketing. For example:

"Donations for most Scientology auditing and training services qualify for charitable deductions on your personal income tax returns…in some cases Uncle Sam will back you up-with up to 50c on each dollar-to go up The Bridge to full OT. Now that’s an offer you can’t refuse. Believe it or not, it’s true."

Church of Scientology marketing brochure received November 9, 2001 (U.S. Post Non-Profit Org Permit No.32280)

"Donations for most auditing and training services qualify for charitable contribution donations on your personal United States income tax returns. Donate before December 31 and you could SIGNIFICANTLY reduce the amount you need to pay in taxes for this year. This enables you to donate for more services and thus make it up The Bridge® grade chart FASTER! So make your income tax work for YOU in the best way possible, by using it to secure your tax-deductible SCIENTOLOGY© services now…Going up THE BRIDGE® is such a good idea, the US government will allow you to deduct your [fixed price] donations."

As is apparent from the 1994 declaration of Andre Tabayoyon above, http://www.exposingscientology.cjb.net/ (Reposted Classics #16, Declaration of Andre Tabayoyon), court-ordered discovery (of Church related financial and tax fraud) in the Church of Scientology v. Fishman -Geertz case threatened to unravel and expose Scientology’s one billion dollar tax fraud upon the U.S. Federal Government. I was the lead attorney for the successful defense of the Fishman-Geertz defamation case. Apparently, the Church’s "Fair Game" Policies and Practices had to be employed to "utterly destroy" and neutralize the threat that I posed to the billion-dollar charade being played by Scientology and the compromised U.S. Federal Government. "Fair Game" is a once secret written Scientology Policy that was publicly exposed when the FBI simultaneously raided various Church of Scientology facilities in 1977. "Utterly destroying" a Church critic is required and how to do this is described in the Church of

Scientology's "Fair Game" Policies and Practices. "Fair Game" is intended to terrorize critics and victims of the Church of Scientology into silence; to deter and disable any opposition or vocal criticism. Its purpose is to haunt, terrorize and shudder into silence, those with knowledge of the Church’s wrongs. As the documents seized by the FBI in 1977 demonstrate, internal evidence of criminal activity by the Church and its members must be stored in the Church’s "Red Data Boxes" likely insuring its ready availability should it be needed for future "Fair Game" activities against would-be former adherents.

See http://www.raids.org/ and http://www.lermanet2.com/cos/pattinson1.htm paras. 144-207 and http:www.lermanet2.com/cos/dedicated.htm and http://xenu.net/archive/disk/fairgame.htm and http://xenu.net/archive/disk/fairgame-e.html

The secret IRS-Scientology billion dollar tax relief package was clearly procured by both extrinsic and intrinsic fraud. The extrinsic fraud was the serious criminal conduct, litigation terrorism and abuse of process. The internal fraud is set forth on the various pages of the Church’s Form 1023 application of 1993. The Scientology responses to IRS questions 3a, 3b and 10 exemplify this. Those responses obfuscate, misrepresent, omit, divert and gloss over the truth. Scientology’s responses to the IRS questions 3a and 3b deal with the "hierarchical management structure" and "Command Channels" of the Church as opposed to its "ecclesiastical structure". The pivotal and fundamental management tyranny and role of the Sea Organization is totally misrepresented even though it is the basic means of exerting power through the hundreds of separate Scientology corporations without regard to corporate formalities and boundaries. The dominant role of "production," money and statistics can be clearly observed. The Scientology responses to the IRS’s Question 10 are equally outrageous to any non-Scientologist with even a mere cursory knowledge of these hundreds of different lawsuits being described under penalty of perjury. Indeed, this should have been quickly evident to even a mere cursory IRS review of the Form 1023 itself, thus raising the specter of Clinton Administration misuse of the IRS, and the flouting of applicable law and litigation history. All of the evidence of Scientology litigation abuse, and abuses revealed through litigation, is swept under the carpet by Scientology counter-attacks upon CAN (the "Cult Awareness Network"), numerous IRS officials, lawyers such as Toby Plevin and Michael Flynn, and stolen documents. However, Scientology does not explain why the IRS should not rely upon incriminating documents allegedly "stolen" from Scientology, the evidence of "apostates" or former Scientologists who often held senior executive positions and served Hubbard personally, various jury decisions against it and certain criminal convictions. Indeed, the true facts concerning many of Scientology’s responses to the IRS’s questions are diametrically opposed to the massive misrepresentations made to the U.S. government by the Church of Scientology and its lawyers.

Soon after the signing of the Closing Agreement for the secret IRS-Scientology tax deal, very senior Scientology officials (direct subordinates to Church of Scientology leader "Captain" Miscavige) visited a number of former Scientology senior officials who had sworn expert witness testimony that was filed in Fishman-Geertz. Three of these former Scientology officials have testified that they were unsuccessfully subjected to great pressure, intimidation and bribes of over $200,000 each to recant their testimony and to sign false declarations alleging that I had suborned and created perjury for filing in Fishman-Geertz. The testimony established Scientology fraud upon the IRS

because it contradicted material responses and misrepresentations by the Scientology

enterprise to the IRS. Those material [mis]representations were part of the official basis for the IRS’s one billion dollar tax-relief (waiver) package to the Church of Scientology and several of its senior leaders including Miscavige.The three former high-level Scientologists who had held senior management positions in the cult refused to join this blatant criminal conspiracy, obstruction of justice and tax fraud being perpetrated by Scientology and its lawyers.

A recent U.S. example of Scientology’s financial frauds and human abuse has just been swept under the carpet by yet another secret settlement agreement in the case of Lopez v. Church of Scientology Mission of Buenaventura, Los Angeles Superior Court Case No. BC 200852. See generally, http://www.newtimesla.com/issues/2000-12-21/feature.html/page1.html and http://parishioner.org/lopez/. In essence, the Lopez case alleges that Scientology knowingly and intentionally defrauded mentally impaired Raul Lopez of over $1.7M during an eleven-year association with the church. In 1985, when he was 19, Raul Lopez had a head-on collision with a big-rig and suffered irreversible brain trauma. The brain trauma caused a nervous tremor as well as an inability to reason and interact with others. The accident resulted in litigation and a $1.7M settlement payment to Mr. Lopez. In 1987, Mr. Lopez stumbled upon the Church of Scientology at a Ventura County, California swap meet. The Church promised him that he would be cured of the tremor and would be his old self again if he purchased $30,000 worth of Scientology’s religious services including "auditing" on the E-meter. In 1971, it was held that:

"There is absolutely no scientific or medical basis in fact for the claimed cures attributed to E-meter auditing. Unfortunately the Government did not move to stop the practice of Scientology and a related "science" known as Dianetics when these activities first appeared… Had it done so, this tedious litigation would not have been necessary. The government did not sue to condemn the E-meter until the early 1960’s, by which time a religious cult known as the Founding Church of Scientology had appeared." U.S. v. An Article or Device "Hubbard Electrometer," 333 F. Supp. 357 (1971).

Over time, Scientology separated Mr. Lopez from his conservator and guardians, persuaded him to keep his financial payments to the Church a secret from them, surrounded him with Church-associated professional advisors, took over every aspect of his life while lying to him and even persuaded him to "invest" $30,000 in the purchase of two Ostrich eggs. The two eggs hatched and later the two birds died. Needless to say, they never did make Mr. Lopez wealthy. In 1997, Mr. Lopez’s guardian sued the Church and its associated professional advisers. Typically, Scientology fielded an expensive army of legal talent that included then Los Angeles Police Commission President Chaleff about whom you have read above in connection with my own matters. Letter to Hon. John Ashcroft, January 21, 2002, pages 25-86. At times, the Church’s expensive legal counsel was serving Mr. Lopez’s lawyers with a new court motion every day. They were hell bent on obstructing any adjudication of Church liability. However, several of the Church-associated professionals were being provided insurance funded defenses and indemnity. Apparently, faced with potential exposure to punitive damages, the various insurance companies tired of the scorched earth, never settle litigation style of Scientology and its lawyers such as Chaleff and New York lawyer Eric Lieberman, about whom you have also read in connection with my own cases above. (Ashcroft letter, pages 25-86) Apparently, late last year, the various insurance companies forced a settlement of the case. This settlement enabled Chaleff to announce on December 11, 2002, that he had joined the Los Angeles City Attorney’s office which, as you have read in the Ashcroft letter, then decided that the Scientology/Moxon/Abelson/Ingram, et. al., criminal conduct against me (in which Chaleff had also participated) should not be prosecuted. See generally, pages 56, 76-78 of my January 21, 2002, letter to Hon. John Ashcroft.

After the IRS responded to Church of Scientology terror, crime and fraud by granting the Church the 1993 tax exemption it sought by fair means or foul, the Church of Spiritual Technology, in essence, quietly assumed ownership and control of the entire Church of Scientology enterprise. CST’s ownership is vested in four very low profile individuals: Sherman D. Lenske, Esq., of Woodland Hills, CA; former IRS Assistant Commissioner Meade Emory, Esq., of Lane, Powell, Spears, Lubersky LLP of Seattle, WA; Leon C. Misterek, Esq., of Kirkland, WA; and Scientology central reserves money man Lyman D. Spurlock. Curiously, CST Special Trustee Meade Emory, Esq., was the Assistant IRS Commissioner at the very same time in the 1970's that Moxon and the Church of Scientology were committing the largest ever known criminal infiltration and massive burglary of the IRS and numerous other U.S. Federal Government Departments. This was part of Scientology’s "Operation Snow White". CST Special Trustee Lyman Spurlock is an accountant and the only known Scientologist among the four who it appears may be the actual owners of the corporations and Churches of Scientology.

Alternatively, and also contrary to applicable law, one person, David Miscavige, is the only person who ultimately controls and owns the entire Churches and corporations of Scientology. Additional support for this conclusion is the documentation indicating that some single person has the sole and absolute power to dismiss all of the trustees and directors, etc., of CST and reappoint new ones. Consequently and contrary to applicable law, this single individual, probably David Miscavige, has total control and ownership of all of the approximately 150 tax-exempt "corporations" and Churches of Scientology. The Scientology organizational hierarchy, and its associated maze of fun-house mirrors, is examined in detail in Church of Spiritual Technology v. United States, 26 Cl.Ct. 713,730-732 (1992), and the various Church of Scientology cases cited therein. It is even more interestingly examined and dissected on the Internet. For example see, http://www.nots.org/cst.htm and http://clever.net/webworks/veritas and

http://wpxx02.toxi.uni-wuerzburg.de/~cowen/essays/corporate.html

Indeed, if you review the Internet on these matters you will observe that many citizens have concluded that the United States government has sold out to (and has been totally corrupted by) the Church of Scientology R.I.C.O. enterprise, hence the blatant arrogance and impunity with which the cult corrupts and obstructs the administration of justice in this country. Not only does the FBI consistently refuse to investigate the Church of Scientology no matter who, where and what the complaint concerns, but also the IRS Exempt Organizations Division has failed to act upon numerous and detailed letters complaining of various aspects contained herein. As stated above, the senior responsible official of the Exempt Organizations Division, Mr. Rotz, handled the sudden IRS reversal and has handled (and seemingly ignored) the subsequent complaints and information of the sorts of activities described herein. The Western Division of the IRS has behaved just as disgracefully.

In that regard, I again remind you that an Internet petition has gathered nearly one thousand verifiable signatures demanding an immediate Department of Justice investigation into the alleged and demonstrable criminal activities, human rights violations, civil rights violations and financial frauds being committed by the Scientology enterprise and its agents.

The Church of Scientology’s reaction to the first disclosures of the secret and preferential IRS tax agreement, and my January 21, 2002, letter to Attorney General Ashcroft have been entirely predictable. On March 13, 1998, Scientology’s "ecclesiastical" leader "Captain" David Miscavige wrote to The Wall Street Journal saying, in pertinent part:

"Next is your characterization of the IRS exemption proceeding, unquestionably due, in no small part, to your participation in an illegal act -- the publishing of the Church/IRS Closing Agreement. While you no doubt claim a reporter’s privilege, leaking that information as well as publishing it, is a felony."

Typically, Scientology's leader was once again engaged in character assassination and not so well veiled threats.

I recognize that the information I have presented in this and my January 21, 2002 letter is incredible. For this reason, Church of Scientology henchmen frequently characterize me as insane. However, it has been written that "by their deeds ye shall know them" and the facts presented by my ‘Information’ speak louder than the verbal denials and attacks of Scientology and it’s apologists. Indeed, I wish to remind you that if, on September 10, 2001, someone had told you about Al Qaeda sleeper cells and the September 11, 2001 attacks upon our homeland, you likely would have thought them to be unstable and unbelievable.

The Church of Scientology’s R.I.C.O., terrorist and "psycho-terror" enterprises against me largely confine me to the relative security of my residence. As a result of their activities I have been left utterly devoid of future prospects. Enough individuals and governmental entities have already indulged in the basic human inclination to engage in denial when events are so staggeringly contrary to what is rightfully expected. Merely saying that a "Church" could not and therefore did not engage in the types of R.I.C.O activities delineated herein and in my letter of January 21, 2002, to Mr. Ashcroft, will not suffice. Genuine courage and true patriotism on the part of those investigating these matters is what is required and it is through the recognition of these characteristics within you gentlemen that has now led me to seek your assistance; I thus look to your offices to take appropriate and immediate action.

In that regard, I advise you of my readiness to turn over the testimonial and documentary evidence supporting the various matters set forth in my letter of January 21, 2002. These materials prove, beyond a reasonable doubt, that the operations or the Church of Scientology and certain of its agents and representatives are not only contrary to the representations the Church made to the IRS, but are also in fundamental violation of the purposes of exempt organization tax status as well as being in violation of the criminal and tax laws that are supposed to govern the Church of Scientology’s conduct in secular society.

The Constitution only protects religious beliefs held in good faith. It does not protect criminal conduct, criminal policies and practices and civil torts, whether religiously motivated or not. See generally, Molko v. Holy Spirit Ass., 46 Cal.3d 1092 (1988).

I eagerly await your prompt communications as well as your forthcoming requests for the documentation and evidence in support of this letter and my January 21, 2002 letter to U. S. Attorney General Hon. John Ashcroft.

Very truly yours,

Graham E. Berry

cc: Hon. John Ashcroft

Senator Joseph H. Biden

Senator Jesse Helms

John Ashcroft. (frank oliver)

3. Letter and criminal complaint, etc. dated January 7, 2001, from Michael Pattinson to Hon. John Ashcroft.

4. Scientology: Thriving Cult of Greed and Power, May 6, 1991.

5. David Miscavige IAS speech, 8 October 1993.

http://www.wpxx02.toxi.uni-wuerzburg.de/~cowen/essays/speech.html

6. David Miscavige Tape Summary New Year Event - 1993/1994.

7. Videotape: David Miscavige New Year Event 1993.

8. Scientology is a criminal organization, Internet, January 13, 2002.

9. Is Scientology Breaking the Law? Internet.

http://www.scientology-lies.com/rvy1.html

10. Why Are These People Dead Scientology?

http://www.b-org.demon.nl/scn/tour/11-deaths-at-flag.html

http://www.bart.nl/~bogie/tv/ard01.html

11. Don Wright/Palm Beach Post.http://www.lermanet2.com/cos/index.html

12. Knowledge Report to Church of Scientology Ethics Officer Chuck Anderson from Denise Licciardi, the Marketing Manager at Digital Lightwave. This company pays license fees to the Church of Scientology through the World Institute of Scientology Enterprises. As a result of her Knowledge Report, Church of Scientology International or Religious Technology Center could raid the company ("fire in a mission") impose fines, impose changes or even close the company down for alleged misuse of the licensed Hubbard Administrative Technology (which is also within the Hubbard Religious Technology).

13. Anatomy of Scientology, A Psycho - political terrorist organization.

http://www.lermanet2.com/cos/fraud.htm

14. Alison H. Eaton, Can The IRS Overrule The Supreme Court?

http://www.law.emory.edu/ELJ/volumes/sum96/alison.html

15. [week in review] A.r.s Week In Review - 12/16/2001 NB. "Affidavit of Kennan G. Dandar, Esq., Reply Memorandum of Robert S. Minton and Germany.