Rocky Mountain News

Scheme loses $1.5 million for investors

by Sue Lindsay

September, 1983

Thirty-seven investors, including some who mortgaged their homes to get money, have lost $1.5 million in a Denver scheme that promised a whopping 60 percent in annual interest.

Among the big losers was L. Ron Hubbard, founder of the Church of Scientology, who lost almost half a million dollars.

Hubbard staff member John Busby put $450,000 of L. Ron Hubbard’s money – drawn from Hubbard’s account in the Bank of Luxembourg – into BRW after Busby saw an ad Martin placed in the Los Angeles Times. He first invested $50,000 last June, then $100,000 in July and $300,000 in September.