If so, then you know that the already-bad PR on Scientology has worsened, and that the Church’s continued response is one of categorical denial, labeling its critics as liars and apostates.

Same strategy. Same result. More defections. More corroboration of the original charges:

●Human rights abuses at Int Base: beatings, degradation, even torture;

●International Exec Strata personnel imprisoned in “the Hole;”

●Families torn apart through the policy of disconnection;

●A declared mother prevented from viewing her son’s dead body or attending a memorial service; and so on.

There is a solution. Penn State got it right. Why can’t we?

Basic Problem – LRH Checks & Balances Eliminated

LRH intended one-man rule to end upon his death, to be replaced by multiple checks and balances. Power was distributed among seven (7) boards of directors and trustees in three (3) California nonprofit religious corporations, CST, RTC and CSI. See LRH Intent.

These corporate checks and balances have been eliminated.

See Existing Scene. Miscavige, from his position as Chairman of the Board (COB) RTC runs everything. Not just RTC, which LRH intended to be overseen by a board of trustees appointed for life, but CST and CSI as well. Everything.

The result is absolute power in one person. David Miscavige has no oversight or accountability.

Thus, some Scientologists have boldly taken it upon themselves to provide accountability through public channels. They do not consider themselves to be liars and apostates; they feel they are doing what is necessary to handle the situation.

Attacking them hasn’t worked. Nor will it ever. There is only one solution.

Solution: Independent Internal Investigations

What is needed are independent, internal investigations. David Miscavige needs to step aside for the good of Scientology and allow this to occur. In a prior article, we referred to this action as the Corporate America Protocol for handling situations like this.

For a live example on how to do this right, refer to the Penn State University child sex scandal. One of America’s most storied football programs was engulfed in a maelstrom of negative publicity, a grand jury and criminal charges of top officials.

The University trustees hired former FBI director Louis Freeh and his risk management firm to conduct a thorough internal investigation and make the results public. Freeh didn’t hold back. He named names, and gave details. And he recommended fixes to ensure the situation never happens again. Some of the administrators he called out, including the University’s hallowed football coach, the late Joe Paterno, are now reviled by the general public, their reputations ruined.

But the University has now separated itself from the scandal, taken responsibility for the lack of oversight, and been given a chance to live on. It will resurrect its image if it implements the Freeh recommendations, as they have stated publicly they will do. Already they have averted a lifetime ban of the football program.

The problem we Scientologists face is that there are no independent trustees and directors of Scientology. LRH established them. The IRS granted tax exempt status based on them. But Miscavige eliminated them.

For the good of Scientology – and possibly its survival, the independent powers of the boards of trustees and directors of the controlling corporations of Scientology need to be implemented as LRH intended. Once their independence and powers are established, they need to commission an outside reputable audit or law firm to thoroughly investigate the allegations, publicly issue findings and recommendations, and then implement the changes necessary to bring closure to the allegations.

For full lists of the matters that need to be investigated, see our Audit Demand Letters.

For the Greater Good, Miscavige Must Step Down Pending Internal Investigations.

That Miscavige won’t do this speaks volumes about: 1) his character; 2) his loyalty to LRH and the aims of Scientology; and 3) his guilt or innocence to the charges being leveled against him by former high-ranking Sea Org members and International Executives.

Additionally, the policy of disconnection must end once and for all. The policy is abhorrent to a society we seek to reach into. Combined with the practices of security checking and fair game against criticism of any kind (even constructive), they create a coercive environment that the general public will not tolerate. LRH discovered this in 1968 and canceled them for that reason. See RJ ‘68 and this article.

We often receive feedback from members who extol the greatness of David Miscavige. He got us tax exempt status, etc., etc.

And Joe Paterno took Penn State University from a small backwoods college and made it into a national football powerhouse. His defensive coordinator, Jerry Sandusky, built a defense that produced so many great NFL linebackers that Penn State became known as “Linebacker U.”

Sandusky is now behind bars. Joe Paterno’s legacy as a hall of fame football coach is now overshadowed by his “integral part of the act to conceal” sexual abuse of disadvantaged boys. His statue outside Beaver Stadium has been taken down.

When the trustees of Penn State finally “grew a pair” and stood up to Paterno by firing him last winter, his loyal supporters rioted on campus – before even knowing the facts. Their loyalty for one man blinded their judgment of what was in the best interests of the institution.

We Each Have a Responsibility to Keep Scientology Working

The point is that we should not – and, for the sake of the survival of Scientology, we must not – ignore charges of abuse, corruption, and possible criminal acts by Miscavige just because of what some consider to be his prior accomplishments – nor out of fear of personal consequences.

We must act in the best interests of Scientology. Clearly, Church leadership isn’t.

Scientology’s fate, its reputation, its expansion or demise is OUR responsibility, not Miscavige’s alone. Take responsibility. Get informed. Look. Dare to speak to your friends. Do something.

“In actual fact, I rather hold the person who is inactive
because he is afraid of punishment, in contempt.”

This is the famous opening line from the first pamphlet of a series entitled The American Crisis published from 1776 to 1783 during the American Revolution by Thomas Paine. Today, Scientology is in crisis.

An ever-growing chorus from long time former Sea Org members and upper level executives allege that David Miscavige has eliminated checks and balances called for by its Founder, L. Ron Hubbard, and has beaten international executives and subjected them to inhumane treatment. Media and governmental bodies are rightfully taking up the stories.

An independent internal investigation, which we have called for repeatedly, would immediately resolve these very serious and damaging charges. Rather than confront the accusations, however, the Miscavige administration continues to attack and label the whistleblowers “liars,” “defrocked apostates,” “suppressive persons,” and other derogatory terms, thereby holding the allegations in suspension and further dividing the Scientology community in addition to harming our message to the world and distancing us from the general public.

Obviously the administration is not handling the situation. Far from it, these actions tend to prove that Miscavige is guilty of the abuses he is charged with and that he operates unchecked.

Descent Into Madness

The Debbie Cook debacle was a self-inflicted wound to Scientology and the church by the Miscavige administration, entirely avoidable.

For those who missed the news, Debbie Cook sent an email to fellow Scientologists on New Year’s Day, pointing out LRH policy violations and the elimination of checks and balances at the top of Scientology international management by David Miscavige. To read the email, Click Here.

Debbie, of course, was the Captain and face of the Flag Service Organization (FSO) for 17 years, a Sea Org member at Flag for 29. She was widely known, loved and respected in the Scientology community. She left the Sea Org for medical reasons in 2007 and became a public Scientologist in good standing with the Church.

After she sent out her email, the Miscavige administration lashed out, suing her in a Texas court. In the name of the Flag Service Org (FSO), Miscavige claimed Debbie violated a confidentiality contract she had signed upon her departure and sought $300,000 in damages. He also sought an injunction that she not speak out again. She was forced to take the stand and testify why she felt her email did not violate her contract.

And, boy, did she have something to say.

Debbie’s email had merely cited LRH policy that she felt was being violated by the Miscavige administration and requested Scientologists to Keep Scientology Working by not going along with policy violations; e.g., use of org resources to solicit donations, which LRH forbade.

In court, she testified that she had signed the confidentiality agreement under duress only to escape the cruel and inhumane treatment, including imprisonment, she had been subjected to by Miscavige after promotion to Int Base.

In describing why she signed the confidentiality agreement under duress and would have signed anything just to be permitted to leave in good standing, Debbie testified to the following:

●Two men jumped through her office window while she was on the phone with Miscavige to forcibly carry her to “the Hole,” a double-wide trailer with bars on its windows and guards at the only door, in which she was imprisoned for seven weeks with more than 100 other executives, sleeping on the ant-infested floor in sleeping bags and eating soupy “slop” made of reheated staff leftovers;

●She described a 12-hour ordeal at the California base where she was made to stand in a trash can while fellow executives poured water over her, screamed at her and said she was a lesbian;

●She witnessed Miscavige punch Marc Yeager, from CO CMO Int, in the face, knocking him down;

●She told of one executive being beaten by a Miscavige assistant for objecting to violence in “the Hole” and was then made to clean a bathroom floor with his tongue for 30-minutes;

●At Miscavige’s orders, his secretary slapped Debbie hard enough to knock her down; and

●Miscavige also ordered his communicator to break Debbie’s finger. The aide bent her finger but didn’t break it.

Her testimony went viral on the Internet. For an example, Click Here.

Miscavige Appointed Debbie Cook His Executioner

The confidentiality contract being sued on had a provision calling for arbitration before a panel of three Scientologists. The church could have sought $300,000 in damages through arbitration and then turned the award into a court judgment. Arbitration hearings are private. Therefore, Debbie’s testimony would not have been public, and would not have gone viral on the Internet.

So, why did the Church waive its First Amendment privileges (by itself going into court) and force Debbie to take the stand in a public forum and defend herself?

To an experienced lawyer, it makes zero sense.

Obviously, Miscavige wanted an injunction. Injunctions can only be obtained in a court of law, not in an arbitration or small claims proceeding.

Church lawyers obtained a temporary restraining order (“TRO”) and filed a motion for a preliminary injunction upon filing the lawsuit against Debbie. The lawsuit seeks damages plus a permanent injunction.

For information on what an injunction is and its three stages, TRO, preliminary and permanent, see Click Here.

Given Debbie’s allegations, however, it was impossible to obtain any injunction beyond a TRO. All she had to do to defeat the motion was testify that she signed it under duress.

The Church has plenty of experienced lawyers on its payroll and found an established law firm in Texas to represent its interests.

Apparently, the Miscavige administration did not fully brief the lawyers; they rushed them into action with orders to obtain a TRO and preliminary injunction and did not warn them what Debbie could say when called to the witness stand. Apparently an order came down, “Just shut her up. Now!”

FSO lawyers pulled the plug to further damaging testimony by Debbie and other former high-ranking Sea Org members by dismissing the motion for preliminary injunction.

Skilled, fully briefed lawyers would have advised Miscavige to dismiss the entire lawsuit.

Miscavige Demands To Be Comm Ev’ed In A Public Forum

Instead, FSO filed a motion for summary judgment, i.e., a request that the court enter judgment without a trial.

A summary judgment can only be granted when it is proven that no material issue of fact exists in the case. For more information, Click Here.

This motion for summary judgment is dead on arrival.

Debbie has already presented sufficient evidence to create a material issue of fact. To get around her testimony that she signed the confidentiality agreement under duress, Church lawyers offer a clever argument. Clever if one isn’t fully informed, that is.

FSO presents evidence and argues that Debbie may have been under duress when she signed the contract, but that was in 2007. The duress supposedly ended some time after she walked away and she failed to take steps to indicate she was not in agreement with the terms of the contract she had signed.

Church lawyers then invoked a principle in contract law called “ratification,” claiming she ratified the terms of the agreement by her silence.

This argument is easily overcome by evidence that Debbie did not gain perspective on her ordeal and the duress she was under until recently. Besides, she can reasonably interpret the agreement not to have been a waiver of her ecclesiastical duty to Keep Scientology Working.

Many former Sea Org members are available to testify that they, too, experienced the same abuses and degradation testified about by Debbie and that it took them years to “decompress” and make sense of it all. Why did I put up with the abuses in the first place? What about my eternity if I speak out? What about my connections to family and friends? Am I really screwed up, deserving of such inhumanities?

For a summary of potential witnesses and their evidence, Click Here.

There will be no summary judgment; there will be a trial.

In both the opposition to the motion for summary judgment and the trial, Scientologists will finally be able to present their cases against Miscavige and his abuses to a trier of fact.

It is sort of a fitting irony, given the fact that Miscavige has allegedly banished Executive Director International to “the hole,” thereby eliminating the convening authority for worldwide Scientology ecclesiastical matters, the person with the authority to convene a Committee of Evidence against Miscavige.

Miscavige’s elimination of internal checks and balances has blocked private, internal reforms and has forced Scientologists who attempt to bypass Miscavige in order to Keep Scientology Working to try him in a public forum instead.

Kudos to Debbie Cook

In Scientology’s crisis, these are indeed the times that try men’s souls. The sunshine Scientologist and status seeker will, in this crisis, shrink from the service of LRH; but he that stands by him now, deserves the love and thanks of all Scientologists.

We at SaveScientology.com thank Debbie for not shrinking from the service of L. Ron Hubbard and Scientology. For standing by it now, she has our love and thanks and deserves the same from all Scientologists.

“Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph.”— Thomas Paine

A Constructive Solution To End The Madness

There is a simple solution to the overall situation: Miscavige should step aside and allow independent, internal investigations of the kind we have detailed in our Action Series. CST special directors should encourage him to do so and begin to absolve themselves of liability.

LRH Intent to end one-man rule upon his death with multiple checks and balances among the seven boards of directors and trustees in three separate religious corporations should be implemented immediately.

Administrative checks and balances should also be fully restored, which include the international executive strata, an independent Church of Scientology International, an effective Executive Director International, and the Watchdog Committee.

Each of us can follow’s Debbie’s courageous example and do something to bring this about. Dare to confront and investigate the situation in Scientology. Dare to communicate to your fellow Scientologists. Dare to stand up to policy violations. Dare to spread the word.

Naturally , we risk being falsely declared by standing up. “In a time of universal deceit, telling the truth is a revolutionary act.” — George Orwell.

The word “Camelot” is sometimes used to refer admiringly to a bygone era of potential and promise for the future.

Camelot is a castle and court associated with the legendary King Arthur. Although the subject of many tales for hundreds of years, including blockbuster plays and a film in modern times, its location and authenticity have never been established.

In the stage and film versions, the reign of King Arthur and his Knights of the Round Table were brought down by Mordred who sought the throne for himself. Unaware of Mordred’s intentions, King Arthur put Mordred in charge of the knights’ training program.

Has a similar fate befallen Scientology?

Many Scientologists remember their orgs or mission course rooms and auditing centers filled with students and preclears in the 1970s and 1980s. Now, most of them are empty. To the extent there are students, they are mainly studying “Basics” books and lectures, not training to be auditors.

To borrow lines from Camelot the musical’s theme song, as sung in the final scene, was the period prior to LRH’s death Scientology’s “fleeting wisp of glory?” Our “one brief shining moment?”

The answer is, yes. Unless we demand of our leaders management based on statistics as given by LRH, and judge them, and the expansion/decline of Scientology, based solely on those statistics, brushing aside all PR, opinion and explanations.

LRH Statistics

LRH stressed two major products:

“Orgs have only 2 major final valuable products. One is well-trained auditors. The other is satisfied pcs.”

“Tech and Admin policy exist only to assist making these two products IN VOLUME.”

LRH ED 131 INT, Re: Life Repair Block, 8 Dec 1970 (OEC Vol. 4, p. 145)

“The product of an org is well-taught students and thoroughly audited pcs. When the product vanishes, so does the org.”

TECHNICAL DEGRADES, HCO PL 17 Jun 1970RB, Issue I (OEC Vol. 0, p. 14)

“So the basic gross outness re stats is not to have real stats and not to compute, publish, use and PUSH THEM UP.”

“The only thing that could go wrong [in expanding Scientology] is not establishing, collecting, computing, posting and using the stats to establish a nearer and nearer approach to the ideal scene, not just for us but for the planet.”

STATISTICAL MANAGEMENT, HCO PL 16 Aug 1970 (OEC Vol. 7, p. 518)

For a thorough list of LRH quotations on the subject of statistics and management by statistics, along with editor’s notes (in red), click the button below:

Miscavige Administration Statistics

The current administration no longer stresses or even publishes these statistics, so the actual progress or decline of Scientology, as defined by LRH, is being hidden.

Moreover, it is clear that David Miscavige has altered the statistics used to measure Scientology’s expansion.

“Even the manner in which we gauge our expansion has utterly changed. In previous years it focused on our internal statistics. Today our expansion is measured by broad-scale impact out there, helping cities, states, and entire nations.”

David Miscavige, IAS 21st Anniversary celebration, 2005 (reprinted in Impact issue #112, p. 52)

“Our expansion is no longer gauged by what takes place inside our churches. Rather, our expansion is now such that it is gauged across every ethnic, religious, and national concern on Earth.”

David Miscavige, LRH Birthday Celebration; Mar 2006 (reprinted in Scientology News, issue #33, p. 48)

This has led to such statistics as: (1) # of citizens aware of Human Rights; (2) # of shopping malls playing our Human Rights PSAs (Public Service Announcements); (3) # of people helped.

The emphasis of the Miscavige Administration has shifted from LRH’s emphasis on making auditors and the delivery of Scientolgy services to purchasing grand buildings and accumulating wealth, both of which are the result of independent donations, not the income from the delivery of Scientology’s services.

LRH Re: Miscavige Administration Actions

“The only reason orgs exist is TO SELL AND DELIVER MATERIALS AND SERVICE TO THE PUBLIC AND GET IN PUBLIC TO SELL AND DELIVER TO. THE OBJECT IS TOTALLY FREED BEINGS!

“The first and all subsequent organizations of the Church were founded to this purpose only.”

THE REASON FOR ORGS, HCO PL 31 Jan 1983 (OEC Vol. 0, p. 91)

Miscavige Administration’s Drive For Donations

The greatest difference in Scientology when LRH was actively on the lines and during the Miscavige Administration is the current drive for material wealth through the constant hammering of Scientologists for donations at every turn. Buildings, IAS, books for libraries, you name it.

Even auditors and staff devote time to “regging” donations!

No one can deny the results: a great number of grand buildings, a $1.5 billion (with a “B”) IAS fund and phenomenal book sales. But the orgs are empty (mostly), the books go to libraries that mainly sell them to recyclers for pennies on the dollar, and IAS donations accumulate and are not spent to achieve our main products: trained auditors and well audited preclears.

(Imagine what a half billion dollars could do spent on, say, a scholarship program for training auditors.)

Here’s What LRH Says About The Miscavige Practice

“If the Org slumps…, don’t engage in ‘fund raising’ or ’selling postcards’ or borrowing money.

“Just make more income with Scientology.

“It’s a sign of very poor management to seek extraordinary solutions for finance outside Scientology. It has always failed.

“For Orgs as for pcs ‘Solve it With Scientology.’

“Every time I myself have sought to solve finance or personnel in other ways than Scientology I have lost out. So I can tell you from experience that Org solvency lies in more Scientology, not patented combs or fund raising Barbecues.”

ORG PROGRAMMING, HCO PL 24 Feb 1964, Issue II (Managment Series, Vol. 7, p.930)

“There can be a tendency for management and staffs to believe an org is all right because it has a rising gross income graph. This is not true. The gross divisional statistics must be observed before the gross income can mean very much.”

STATISTICAL JUDGMENT, HCO PL 9 Feb 1970 (Management Series, Vol. 7, p. 516)

“Gross Divisional Statistics:

“Div 7:Gross income of org (Editor: from the purchase of org services.)

“Div 1:Total org letters in – total org letters out

“Div 2:Number of new enrollments of students and pcs for the week, and gross booksales

“Div 3:Credit collections vs. bills paid

“Div 4:Number of students and pcs completed in a week

“Div 5:Cash collected by reason of the division for the week

“Div 6:Number of field staff member commissions paid/number of new addresses added to CF, both for the week”

STATISTICS FOR DIVISIONS, HCO PL 30 Sep 1965 (Management Series Vol. 7, p. 898)

“Statistics must reflect the actual desired PRODUCT. If they do not, they are not valid. If they do, they give an idea of an ideal scene.”

LEARNING TO USE DATA ANALYSIS, HCO PL 19 Mar 1972, Issue II (Management Series Vol. 1, p. 105)

“If an activity lacks an ideal scene and a correct statistic for it, it has no stable datum with which to rebuff opinion and outpoints. To that extent the group goes a bit mad.”

HOW TO FIND AND ESTABLISH AN IDEAL SCENE, HCO PL 5 Jul 1970 (Management Series, Vol 1, p. 50)

Evidence Of A 20+ Year Decline

“The proof is in the pudding,” as the saying goes.

So, how’s the Miscavige venture working out?

To partly answer the question, just LOOK. Go into your local org and mission. How many people are on course training to be an auditor? How many people are receiving auditing, and advancing happily up the grade chart?

You can also listen to what some former high-ranking executives, people who saw the stats, have said. We have compiled a list of their relevant comments and statements. Click the button to view them.

We offer the statements for what they are, not as the actual statistics. The point is that multiple people who spent many years as trusted executives state that the stats of Scientology: trained auditors, well done auditing hours, active and new members, have been in a continual decline over a 20+ year period. That is reason enough to INVESTIGATE. Compare the evidence with your own, personal observations and you should notice that the two are are consistent.

What Would LRH Do?

What would LRH do, or expect us to do?

Do Nothing? No way!

“Nothing is the greatest overt act you can commit. If you don’t believe it, run into it sometime on your case. The times you did nothing: those were the overt acts. Well we needn’t be guilty of it in this particular lifetime, because you’ve got just as big a share in this as I have, as anybody has. And with your knowingness goes a certain increased responsibility. That’s a terrible thing, isn’t it? You say, ‘Well, I want to know more about this.’ The second you know more about it, you’re more responsible for it. Do you realize that?”

Zones of Control and Responsibility of Governments, 3 Jan 1960 (State of Man Congress)

Would LRH revolt against the current administration?

You bet he would.

“So don’t even consider someone with a steadily down statistic as part of the team. Investigate, yes. Try, yes. But if it stays down, don’t fool about. The person is drawing pay and position and privilege for not doing his job and that’s too much reward even there.

“Don’t get reasonable about down statistics. They are down because they are down. If someone were on the post, they would be up. Act on that basis.”

REWARDS AND PENALTIES, HOW TO HANDLE PERSONNEL AND ETHICS MATTERS, HCO PL 6 Mar 1966, Issue I (Management Series, Vol. 7, p. 500)

“A group has the right to exile anyone it discovers to be guilty of tampering with any communication line.”

“A management which will pervert or suppress a reality, no matter how ‘reasonable’ the act seems, is acting in the direction of the destruction of a group. It is not what management thinks the group or the goal maker should know, it is what is true. A primary function of management is the discovery and publication, in the briefest form which will admit the whole force of this data, the reality of all existing circumstances, situations and personnel. A management which will hide data, even in the hope of sparing someone’s feelings, is operating toward a decline of the group.”

“A true group must have a management which deals in affinity, reality and communication, and any group is totally within its rights, when a full and reasonable examination discloses management in fault of perverting or cutting ARC, of slaughtering, exiling or suspending that management.”

Emphases added; AN ESSAY ON MANAGEMENT, HCO PL 9 Jan 1951 (Management Series, Vol. 7, p. 567)

We don’t propose to slaughter anyone, but we do seek to have the CST Special Directors retain an outside accounting firm to conduct a “performance audit” wholly independent of David Miscavige to determine the LRH statistics of Scientology over the past 25 years and publish them.

For those interested in the legal basis for this request, see Legal Stuff.

By LRH statistics, we mean the Gross Divisional Statistics (GDS) identified above with an emphasis on the delivery stats of well done auditing hours and trained auditors.

We urge Scientologists to help by doing three things:

1) Read the Demand for Performance Audit letter to CST Special Directors.

2) Send a letter of support to a law firm retained by us, stating your support for the Performance Audit.

3) Spread the word. Inform other Scientologists you know of the situation by disseminating one-page flyers to them by: A) email, B) regular mail, or by C) simply stuffing the flyers on their windshields or in their mail boxes. The flyers are intended to alert other Scientologists to the situation we are addressing. See “Instructions” below to download the flyer.

Instructions

1. Download Letter of Support. Add your name or a code name (i.e., an alias or user name) and date it, then mail it to the law firm on the letter. You do not have to provide an address on the envelope if you use a code name.

If you use a code name use something unique made up of letters and numbers, e.g. Jdoe12RC, and make a unique mark in the signature line. The code name and signature mark you use should be consistent in each letter you send. (There are more action steps to come.)

2. Create evidence. Make a copy of the letter after you fill it out, and keep it on file. This step is especially important for those using a code name. We might need to match the letters to an identity at a later date if and when we need evidence of the amount of support we have – and when people feel more comfortable doing so.

3. Download the Flyer, which is a two-page, color PDF document. This is the same flyer that was linked in Action Series 1. Email it to your Scientology friends, using an alias email account if you prefer anonymity. You can also mail it to them, or simply stuff it in their residential mail boxes or place it on the windshields of their cars. (Don’t trespass or break any laws in doing this.)

The flyer looks best in color and printed as a two-sided, one-page document. If you don’t have the capability to easily do this, we recommend you download the flyer to a flash drive and take it to a nearby Kinkos-type shop. Print it as a black & white, two-page flyer, if you must. Or print this article and distribute it. The idea is to spread the word and involve others.

4. Keep stats:# of support letters out
# of flyers to Scientologists

5. Stay tuned for Action Series 6.

The theme of this article is Camelot, and we made a reference to the final scene of the musical, Camelot.

Below is a video of that scene.

While you enjoy it, please consider the analogy we have drawn:

●King Arthur and his vision for a new world to LRH and his vision for a new world;

●King Arthur outside his castle, preparing to re-take it, to LRH outside his Church, his intent for the governance of Scientology abandoned, his statistics and Admin Scale altered; and

●Tom of Warwick to those Scientologists courageous and responsible enough to forsake status and fear of consequences and insist that LRH’s command intention be forwarded.

Let us be some of the “drops in the great blue motion of the sunlit sea” that sparkle!

As children, most of us remember seeing and having the bejesus scared out of us by the movie, The Wizard of Oz. Poor cute little ole Dorothy, lost in a strange world of good and evil, who accidentally became the target of the purely evil, wicked Witch of the West.

Only one person could save her: the all-powerful Wizard of Oz.

It must be true – and worth the dangerous trek to see him. Everyone in the fantasy land of Oz agreed. The Wizard could – and would – save her!

Except, as it turned out…

The Wizard’s power was all an illusion.

Behind the curtain was a little man, caught red-handed manipulating the mirage.

Alone and exposed, he was meek and quivering, a mere shell of the powerful persona he had created and sold to the entire populace.

As Scientologists let’s not disappoint LRH and make the same mistake made by the residents of Oz and fall for PR and propaganda, or accept “the way things are.”

“Organizations do not bleed, they do not breathe; they do behave oddly enough like a single organism… But when the individuals in it cease to behave as individuals, cease to have their own thoughts, cease to be capable of their own initiative, cease to be able to take their own action, then the whole organization boils down to just one man, and he’s the only one who could make a decision … the only one who could act… [but an organization] is composed of individuals who observe and who look … The only thing I am trying to teach you is to look.”[1]

RTC was not intended to be the all-powerful entity it has evolved into, with a singular, “Chairman of the Board,” pope-like ruler over the entirety of Scientology.

The authority of David Miscavige is all an illusion. LRH intended one-man rule to end upon his death, to be replaced by multiple cross checks and balances in three separate corporations ruled by seven boards of trustees and directors.

Corporate Law Basics

RTC is organized pursuant to California Nonprofit Religious Corporation Law, and thereby is subject to that law, which is set forth California Corporation Code, beginning at section 9110.

The law mandates:

1.The filing of Articles of Incorporation setting forth the name and general purpose of the corporation. Section 9120. To view RTC’s articles, click here.

2.Bylaws must be adopted to regulate and manage the affairs of the corporation. Section 9140. To view RTC bylaws, click here.

3.The corporation must abide by: a) its Articles; b) its Bylaws; and c) Corporate law. Section 9140.

4.Each corporation must have and be managed by a board of directors. Section 9150.

5.The board of directors may delegate but is ultimately responsible for all affairs and activities of the corporation. Section 9150.

6.A board of directors shall have a chair (head of the board). Section 9123.

7.Each director shall have one vote and a majority vote is required on each act of the board. Directors may not vote by proxy (i.e., give up their vote to another). Section 9211.

LRH Approved Bylaws of RTC

The RTC bylaws created and approved by LRH call for two boards: (1) a board of trustees and (2) a board of directors.

(As you will see below, the trustees hold power over the directors, including power over the chairman of the board.)

1. Board of Trustees of RTC

The initial trustees, who were selected or approved by LRH, were appointed for life.

Section 1. Purpose. The sole purpose of the Board of Trustees shall be to elect Directors of the corporation. In furtherance of this purpose the Trustees may remove a Director who fails to meet the qualification of a Director or who conducts himself in a manner which is contrary to the provisions of Articles I through IV of these Bylaws and the survival of Scientology.[2]

The trustees are supposed to meet annually.

b. Agenda at Annual Meeting. At the annual meeting of Trustees, consideration shall be given only to the following matters:
i. Election or removal of Directors.[3]

2. General Directors of RTC

The RTC board of general directors is charged with overseeing the activities and affairs of RTC. There are 3 general directors, one of which is the chairman of the board.[4]

General directors:

●Serve for one-year terms;

●Are elected by majority vote of the trustees;

●May not be elected from among the trustees.

And note well:

“The Trustees shall elect one of the
directors as chairman of the board.”[4]

This means that the RTC trustees, who were approved by LRH and appointed for life, are senior to the chairman of the board of RTC (COB RTC).

Obviously, the RTC Trustees can only exercise this LRH-given power if they are truly independent of, and not subject to removal or dominance by, the chairman of the board.

LRH Intent: Independence of RTC Trustees

Based on the foregoing, it is clear that LRH’s vision for the governance of RTC depends completely upon the independence of its boards, particularly its board of trustees.

As we set forth on this website, our investigation found substantial evidence that the boards of trustees and general directors of CST, as well as the boards of trustees of CSI and RTC, are “sham boards,” completely dominated by David Miscavige. See, Existing Scene.

Here is a brief review of that page:

●There are no board meetings, someone from the legal department of Office of Special Affairs International (OSA Int) from time-to-time presents documents for directors and trustees to sign;

●Miscavige holds signed, undated resignations from each board member;

●Miscavige appoints and removes members at his will; (A board member only knows if he/she had been removed when OSA Int no longer brings them documents to sign); and

●Miscavige – not CSI, as LRH directed – administers justice over RTC trustees.

None of the members we interviewed had even read the corporate bylaws or state law and IRS requirements for tax-exempt status, let alone understood them. They had never been trained for their positions.

Trustees, who were selected by LRH, did not even know their positions were for life.

OSA Int, by the way, is in Department 20, Division 7, of CSI. According to the claims of former high-ranking RTC and OSA executives, Miscavige micro-manages OSA Int. So, we have in effect, if true, Miscavige controlling the RTC boards of trustees. In other words, the boards are “sham” boards, mere “rubber stamps” of David Miscavige.

And thus, if true, the safeguard established in RTC trustees by LRH has been nullified.

The power to remove and elect general directors – including the chairman of the board – has been usurped by Miscavige in betrayal of LRH’s last wishes for the governance of Scientology.

The CST special directors – and other lawyers who owe fiduciary duties to Scientology corporations – facilitated this massive betrayal of LRH. They can help to restore LRH Intent or be held accountable.

Please help to remind them of their legal duties. Let them know that you know. Let them know that you care and intend to backup LRH.

Action Step 4

We urge Scientologists to help by doing three things:

1)Read the Demand for Compliance Audit letter to CST Special Directors.

2)Send a letter of support to a law firm retained by us, stating your support for the Compliance Audit.

Action Step 1Action Step 2Action Step 3

3)Spread the word. Inform other Scientologists you know of the situation by disseminating one-page flyers to them by: A) email, B) regular mail, or by C) simply stuffing the flyers on their windshields or in their mail boxes. The flyers are intended to alert other Scientologists to the situation we are addressing. See “Instructions” below to download the flyer.

Instructions

1. Download Letter of Support. Add your name or a code name (i.e., an alias or user name) and date it, then mail it to the law firm on the letter. You do not have to provide an address on the envelope if you use a code name.

If you use a code name use something unique made up of letters and numbers, e.g. Jdoe12RC, and make a unique mark in the signature line. The code name and signature mark you use should be consistent in each letter you send. (There are more action steps to come.)

2. Create evidence. Make a copy of the letter after you fill it out, and keep it on file. This step is especially important for those using a code name. We might need to match the letters to an identity at a later date if and when we need evidence of the amount of support we have – and when people feel more comfortable doing so.

3. Download the Flyer, which is a two-page, color PDF document. This is the same flyer that was linked in Action Series 1. Email it to your Scientology friends, using an alias email account if you prefer anonymity. You can also mail it to them, or simply stuff it in their residential mail boxes or place it on the windshields of their cars. (Don’t trespass or break any laws in doing this.)

The flyer looks best in color and printed as a two-sided, one-page document. If you don’t have the capability to easily do this, we recommend you download the flyer to a flash drive and take it to a nearby Kinkos-type shop. Print it as a black & white, two-page flyer, if you must. Or print this article and distribute it. The idea is to spread the word and involve others.

4. Keep stats:# of support letters out
# of flyers to Scientologists

5. Stay tuned for Action Series 5.

____________________

[1] Emphasis added; LRH, 15 July 1957, Scientology and Effective Knowledge – PRO TRs Course Lecture

[2] Emphasis added; Article VI, Section 1, RTC Revised Bylaws

[3] Emphasis added; Article VI, Section 8(b), RTC Revised Bylaws

[4] Emphasis added; Article VII, Section 2(a), RTC Revised Bylaws

Niccolo Machiavelli is most famous for writing the classic 16th Century book, The Prince. In it, Machiavelli criticized the conventional wisdom of his time: that rulers, to succeed, must acquire their power legitimately and rule with virtue.

Machiavelli argued instead that nothing matters but the acquisition and maintenance of power however acquired and maintained. Forget legitimacy. Forget morality. They matter not.[1]

Here are a few of the rules of power he advanced:

“A wise ruler ought never to keep faith when by doing so it would be against his interests.”

“One who deceives will always find those who allow themselves to be deceived.”

“A prince never lacks legitimate reasons to break his promise.”

So influential was his work, his name became part of our language. Machiavellian means: “Cunning, scheming, and unscrupulous, esp. in politics or in advancing one’s career.”[2]

A trained Scientologist will recognize that Machiavelli has tapped into the baser instincts of Man, those found in the “reactive mind” (i.e., the part of the mind that acts on a stimulus-response basis beyond a person’s awareness, not reason).

LRH must have had this in mind when he split the power and authority over Scientology into 3 separate corporate entities so that the Church would last “millions of years.”[3]

In less than 25 years after LRH’s death, however, evidence abounds that David Miscavige, from his self-created position of Chairman of the Board of RTC, is running all of Scientology, including ecclesiastical matters, a function LRH reserved exclusively for Church of Scientology International (CSI), the “Mother Church.”

LRH Intended RTC To Monitor CSI, Not To Supervise or Bypass

Once CSI (Church of Scientology International) gains its independence, as postulated in Action Series 2, the “Mother Church” then needs to recapture its ecclesiastical authority from RTC (Religious Technology Center) and wear the hats given to it by LRH.

To do this, the trustees, general directors, officers and executive strata of CSI – once reinstalled and functioning independently – need to study (not just read) the licenses that set forth the duties and responsibilities between CSI and RTC as intended by LRH.

A license means permission to use.[4] LRH gave RTC the rights to Scientology trademarks and Advanced Technology on condition that RTC license CSI to use them on specific terms.

LRH never intended RTC to be the all-powerful entity it has evolved into, with a singular, “Chairman of the Board,” pope-like ruler over the entirety of Scientology. In fact, LRH went to great lengths to ensure that one-man rule would end upon his departure and that no one person or entity ever amassed too much authority.

Wrong Example: RTC denies a parishioner’s eligibility to do Upper Levels and orders further security checks and/or contributions.

Correct Example: RTC notifies CSI of perceived laxness in granting eligibility, citing examples and LRH references, and requests correction.

The licenses dictate written LRH intent.

And they reveal checks and balances between the two entities, an arm’s length transaction, with RTC given the duty of monitoring CSI’s use of the trademarks and Advanced Technology (not managing their use), and with CSI being the top authority over all ecclesiastical matters (not junior or even co-equal to RTC).

LRH Intent: One-Man Rule to End in Favor of Checks & Balances

As we have set forth on this website and in our articles, LRH intended one-man rule to end upon his death, to be replaced by an elaborate system of multiple checks and balances that include:

●3 governing corporations (Church of Spiritual Technology (CST), RTC & CSI);

●7 boards of trustees, general directors and, unique for CST, special directors;

●Within CSI, the “Mother Church,” an executive strata comprising the Commodore’s Messenger Organization and the Watchdog Committee;

●Distribution of rights owned by LRH:

a) Copyrights of books and lectures (“Scientology scriptures”) to CST;

b) Scientology trademarks and Advanced Technology to RTC on condition that

c) RTC license CSI to use the trademarks and licenses; with

d) An option in CST to purchase the rights from RTC for $100 each.

See LRH Intent for a schematic diagram of the governing corporate structure for Scientology.

RTC – CSI Licenses

LRH gave to RTC his rights to the Scientology trademarks and Advanced Technology. These are two different types of “intellectual property” (i.e., creations of the mind which the law recognizes can be exclusively owned).[5]

One is a “trademark,” which is a distinctive sign or indicator[6], and includes the names Dianetics and Scientology, and the Scientology Cross, for example, depicted here ==>

For a full list of the trademarks given RTC, and then licensed to CSI for its use, refer to the appendix in the RTC – CSI License of Marks.

The Advanced Technology of Scientology include all the confidential material, such as the Upper Levels. These are “trade secrets,” a special type of intellectual property that can be owned and protected as long as reasonable efforts are made to maintain confidentiality.[7] The most famous example of a trade secret is the formula for Coca-Cola. For a full list of confidential materials given RTC, and then licensed to CSI for its use, refer to the appendix in the RTC – CSI License of Advanced Technology.

Note that the licenses are formal contracts between RTC and CSI, signed and witnessed by officers in each of the two corporations.

LRH Intended RTC – CSI To Be Arm’s Length Parties

The contracts set forth the duties and responsibilities of the two entities, and reveal LRH’s intent that RTC and CSI be co-equal parties, dealing at arm’s length, with CSI the agreed-upon top authority over ecclesiastical matters.

For ease in understanding, we have reformatted the license agreements and then highlighted various passages and, in places, added editorial comment.

Reformatted Marks LicenseReformatted Adv.Tech License

Here are the key features:

● RTC can monitor, but not interfere or manage – or bypass – ecclesiastical matters.

“It is the intent of [RTC & CSI] that CSI will act as the principal contact and supervising ecclesiastical authority with all of its related organizations of the religion of Scientology on this planet with respect to the use of the Marks under this Agreement.”[8]

● RTC shall notify CSI of license violations uncovered – not bypass. (Example: Failure to follow Tech on calling floating needles – notify CSI, do not bypass or enforce an interpretation on CSI.)

● If CSI does not agree, i.e., a dispute arises, the parties must arbitrate.

Note well:RTC cannot dictate a conclusion to CSI.

● RTC can terminate the marks license only after arbitration and only after the arbiters determine that there is no corrective alternative to termination of the license.

● Both parties acknowledge that CSI is the top authority on ecclesiastical matters.

● Governing standard of license agreement is the Scientology Scriptures — i.e., recorded and written works of LRH — in effect at the time of license (May 1982), and as further scriptures are developed by LRH if adopted by CSI and approved by RTC.

“The governing standards for the nature and quality of all services rendered under and in association with the Marks shall be the Scientology Scriptures, as they exist upon the effective date of this Agreement.”[9]

CSI must be truly independent for LRH’s elaborate system of multiple checks and balances to work. And, as any Scientologist can see, when these facts are inspected and compared to the existing scene, RTC has overreached its authority with respect to CSI.

Let us not fall prey to PR and propaganda, or accept “the way things are.”

It is our KSW (Keep Scientology Working) duty to understand and remedy this situation, to insist that LRH’s intent and the contracts and corporate documents approved by him be implemented.

1) Read the Demand for Compliance Audit letter to CST Special Directors. (This is not the same letter that was linked in prior Action Steps.) The letter serves to put the special directors (who are licensed, compensated California lawyers) on notice of a situation involving their legal duties, and requests them to responsibly handle the situation by conducting an independent audit relative to CSI’s use of the licenses. The situations to be audited are specified in the letter. To view the letter click below:

2) Send a letter of support to a law firm retained by us, stating your support for the Compliance Audit. (This is not the same letter that was linked in prior Action Steps.) We have prepared a sample letter which can be sent anonymously. See “Instructions” below for further details and to download.

Action Step 1Action Step 2

3) Spread the word. Inform other Scientologists you know of the situation by disseminating one-page flyers to them by: A) email, B) regular mail, or by C) simply stuffing the flyers on their windshields or in their mail boxes. The flyers are intended to alert other Scientologists to the situation we are addressing. See “Instructions” below to download the flyer.

Instructions

1. Download Letter of Support. Add your name or a code name (i.e., an alias or user name) and date it, then mail it to the law firm on the letter. You do not have to provide an address on the envelope if you use a code name.

If you use a code name use something unique made up of letters and numbers, e.g. Jdoe12RC, and make a unique mark in the signature line. The code name and signature mark you use should be consistent in each letter you send. (There are more action steps to come.)

2. Create evidence. Make a copy of the letter after you fill it out, and keep it on file. This step is especially important for those using a code name. We might need to match the letters to an identity at a later date if and when we need evidence of the amount of support we have – and when people feel more comfortable doing so.

3. Download the Flyer, which is a two-page, color PDF document. This is the same flyer that was linked in Action Series 1. Email it to your Scientology friends, using an alias email account if you prefer anonymity. You can also mail it to them, or simply stuff it in their residential mail boxes or place it on the windshields of their cars. (Don’t trespass or break any laws in doing this.)

The flyer looks best in color and printed as a two-sided, one-page document. If you don’t have the capability to easily do this, we recommend you download the flyer to a flash drive and take it to a nearby Kinkos-type shop. Print it as a black & white, two-page flyer, if you must. Or print this article and distribute it. The idea is to spread the word and involve others.

4. Keep stats:# of support letters out
# of flyers to Scientologists

5. Stay tuned for Action Series 4.

_______________________

[1] http://plato.stanford.edu/entries/machiavelli/

[2] http://dictionary.reference.com/browse/Machiavellian

[3] Yingling Declaration to IRS Court, Paragraph 13, page 6. (Note: Typo in Article III caption, CBI should be CSI.)

[4] http://en.wikipedia.org/wiki/License

[5] http://dictionary.reference.com/browse/intellectual+property

[6] http://en.wikipedia.org/wiki/Trademark

[7] http://en.wikipedia.org/wiki/Trade_secret

[8] License (Marks), ¶3.a

[9] (Emphasis added) License (Marks), ¶4

LRH intended one-man rule of Scientology to end and a system of checks and balances to be implemented upon his death. Under his plan, the Church of Scientology International (CSI) is the “Mother Church,” responsible overseeing all ecclesiastical matters, including enforcement of the Justice Codes of Scientology, among other ecclesiastical matters.

Per LRH policy, for example, the Executive Director International (ED Int) is the convening authority (i.e., ecclesiastical prosecutor of Scientology Justice Codes) for worldwide matters.[1]

David Miscavige, however, rules Scientology absolutely (contrary to LRH intent).

From his position as head of RTC, he dispenses Scientology justice, and is not subject to it. In essence, Miscavige asserts that he can do no wrong and that any attempt to reform his policies and practices or restrict his powers constitutes a suppressive act.

England's King Charles I

The theory of Divine Right was abandoned in England during the Glorious Revolution of 1688–89. The American and French revolutions of the late eighteenth century further weakened the theory’s appeal, and by the early twentieth century, it had been virtually abandoned.[2]

Miscavige has usurped the ecclesiastical power LRH intended for the Mother Church (CSI). It is up to Scientologists to backup LRH with our own Glorious Revolution, insisting on strict compliance to LRH’s intention for the governance of our Church.

LRH On Revolution

And don’t think LRH wouldn’t want us to revolt against a usurper who unmocked the church structure he designed to last millions of years.[3] Here is an example of LRH’s attitude on revolution by Scientologists:

We own a tremendous amount of property. We own a tremendous amount of material, and so forth. And it keeps growing. But that’s not important. When buildings get important to us, for God’s sake, some of you born revolutionists, will you please blow up central headquarters.[4]

The Mother Church

A few definitions are in order:

1. Ecclesiastical: of or pertaining to the church or the clergy; churchly; clerical; not secular.[5]

2. Secular: of or pertaining to worldly things or to things that are not regarded as religious, spiritual, or sacred.[6]

3. Scientology Scriptures: “the writings and recorded spoken words of L. Ron Hubbard with respect to Scientology and organizations formed for the purposes thereof.”[7]

LRH gave CSI – not RTC – the authority to:

oversee and manage the ecclesiastical affairs of all other churches of Scientology to ensure and maintain the purity and integrity of the religion of Scientology. Further, the Church shall be responsible for the overall propagation of the religion of Scientology throughout the World and for the enforcement of the ecclesiastical tenets of the religion as set forth in the Scriptures.[8]

Note: CSI is a hierarchal church (i.e., top down). The various delivery churches, for example: Los Angeles Org, Hamburg Org, the Flag Services Org, all Advanced Orgs, Saint Hill Orgs and missions are part of and under the CSI hierarchy.

A few examples of ecclesiastical affairs the Mother Church is supposed to oversee and manage and of tenets of the religion it is supposed to enforce:

●Ethics and Justice Codes; for example, ED Int CSI – not COB RTC, is the convening authority for worldwide matters, as mentioned above.

●Training and auditing, Scientology services, including Upper Levels; and

●Eligibility to do Upper Levels. (The International Justice Chief is a CSI position.)

On Ecclesiastical Matters, The Mother Church Rules Over RTC & CST

The authority given to CSI by LRH bears repeating, to:

oversee and manage the ecclesiastical affairs of all other churches of Scientology to ensure and maintain the purity and integrity of the religion of Scientology. Further, the Church shall be responsible for the overall propagation of the religion of Scientology throughout the World and for the enforcement of the ecclesiastical tenets of the religion as set forth in the Scriptures.[8]

The phrase all other churches of Scientology includes both RTC and CST, because each of them is a “church of Scientology.” See, their respective bylaws, Article I, 3rd paragraph, here and here, which read:

From RTC bylaws: “[T]his corporation shall support and maintain RTC as a church of Scientology in compliance with the Scriptures.”

From CST Bylaws: “[T]his corporation shall support and maintain CST as a church of Scientology in compliance with the Scriptures.”

This means that both RTC and CST – and all of their staff, officers, trustees and directors who are Scientologists – are subject to CSI’s enforcement of the ecclesiastical tenets of the religion. Not the other way around, as practiced by COB RTC.

This is one of many checks and balances LRH intended. RTC has oversight of CSI’s use of Scientology trademarks and Advanced Technology. CST has oversight of RTC, as we discussed in our previous article. And CSI has ecclesiastical authority over both RTC and CST and their staff who are Scientologists.

Miscavige Has Usurped CSI’s Ecclesiastical Authority

LRH gave RTC no ecclesiastical or justice authority over CSI. Yet, David Miscavige and his appointees have taken the following positions and done the following acts, which are all ultra vires (i.e., beyond his authority) and thus are contrary to express LRH intent for the governance of Scientology and are false data:

Authority Given RTC By LRH

The only powers bestowed on RTC by LRH are those associated with the rights to the Scientology trademarks and Advanced Technology, a bequest that became effective on LRH’s death. At the same time that LRH gave the trademarks and Advanced Course Technology to RTC, he granted CST an option to purchase those assets from RTC, for a mere $100 each.

Pursuant to LRH’s trust agreement, RTC sub-licensed the trademarks and Advanced Technology to CSI. The grant of the licenses created a licensor and licensee relationship between RTC and CSI – NOT an “owner and owned” relationship, NOT a “Manager and Managed” relationship.

And, the license agreement with CSI does not delegate CSI’s powers over ecclesiastical matters to RTC.

RTC, as licensor, has a right of inspection over CSI’s use of the trademarks and Advanced Technology. Period. RTC does not have a right to bypass CSI and engage in management of ecclesiastical affairs or to enforce the ecclesiastical tenets of the religion, which LRH reserved exclusively for CSI.

As licensor of the rights, RTC can only threaten to or (actually) rescind the license to CSI pursuant to the terms of the license agreement. It has no right to attempt to “run” CSI and any running is a violation of LRH Policy, which specifies how CSI is to be administered, and which makes no mention of RTC.

What’s Good For The Goose Is Good For The Gander

To put all this in perspective, shift your viewpoint from RTC to CST. Since CST has the option to purchase from RTC the rights to the trademarks and Advanced Technology, CST can do to RTC whatever RTC can do to CSI.

So, if COB RTC can summarily remove ED Int CSI from post, order him to sec checks and banish him to the prison-like “Hole” at Int Base, as it has been alleged has done, then “COB CST” could summarily remove “COB RTC,” order him to sec checks and banish him to the Hole.

The point is that neither CST nor RTC have any authority over ecclesiastical matters. Both are subject to the enforcement of the tenets of Scientology by CSI.

Do you see the intent and brilliance of LRH’s system of cross checks and balances? The diagrams on our Home Page and LRH Intent may make more sense to the reader now. Please refer to them again. Then refer to the diagram in the Existing Scene. Do you see the difference?

Are you ready to get some more LRH applied to the governing organizations of Scientology?

Let’s roll.

1) Read the Demand for Compliance Audit letter to CST Special Directors. (This is not the same letter that was linked in Action Series 1.) The letter serves to put the special directors (who are licensed, compensated California lawyers) on notice of a situation involving their legal duties, and requests them to responsibly handle the situation by conducting an independent audit of CSI. The situations to be audited are specified in the letter. To view the letter click below:

2) Send a letter of support to a law firm retained by us, stating your support for the Compliance Audit. (This is not the same letter that was linked in Action Series 1.) We have prepared a sample letter which can be sent anonymously. See “Instructions” below for further details and to download.

3) Spread the word. Inform other Scientologists you know of the situation by disseminating one-page flyers to them by: A) email, B) regular mail, or by C) simply stuffing the flyers on their windshields or in their mail boxes. The flyers are intended to alert other Scientologists to the situation we are addressing. See “Instructions” below to download the flyer.

Instructions

1. Download Letter of Support. Add your name or a code name (i.e., an alias or user name) and date it, then mail it to the law firm on the letter. You do not have to provide an address on the envelope if you use a code name.

If you use a code name use something unique made up of letters and numbers, e.g. Jdoe12RC, and make a unique mark in the signature line. The code name and signature mark you use should be consistent in each letter you send. (There are more action steps to come.)

2. Create evidence. Make a copy of the letter after you fill it out, and keep it on file. This step is especially important for those using a code name. We might need to match the letters to an identity at a later date if and when we need evidence of the amount of support we have – and when people feel more comfortable doing so.

3. Download the Flyer, which is a two-page, color PDF document. This is the same flyer that was linked in Action Series 1. Email it to your Scientology friends, using an alias email account if you prefer anonymity. You can also mail it to them, or simply stuff it in their residential mail boxes or place it on the windshields of their cars. (Don’t trespass or break any laws in doing this.)

The flyer looks best in color and printed as a two-sided, one-page document. If you don’t have the capability to easily do this, we recommend you download the flyer to a flash drive and take it to a nearby Kinkos-type shop. Print it as a black & white, two-page flyer, if you must. Or print this article and distribute it. The idea is to spread the word and involve others.

4. Keep stats:# of support letters out
# of flyers to Scientologists

5. Stay tuned for Action Series 3.
_________________________

[1] HCO PL 7 September 1963, Committees of Evidence, Scientology Jurisprudence, Administration Of)

[2] http://en.wikipedia.org/wiki/Glorious_Revolution

[3] Yingling Declaration to IRS Court, Paragraph 13, page 6. (Note: Typo in Article III caption, CBI should be CSI.)

[4] LRH lecture, The Genus of Scientology, Anatomy of the Human Mind Congress, 31 Dec 1960

[5] http://dictionary.reference.com/browse/ecclesiastical

[6] http://dictionary.reference.com/browse/secular

[7] CSI Bylaws, Article II, Definitions, subsection d

[8] (Emphasis added) CSI Bylaws, Article III, Purposes, section 2

Later, when the opportunity arises, Maximus enters into a conspiracy with Roman Senator Gracchus and offers to lead a five thousand man army into Rome in a coup against Commodus.

The following exchange then takes place between the two:

Gracchus: And after your glorious coup, what then? You take your five thousand and… leave?
Maximus: Yes, I will leave. The soldiers will stay here for your protection, under the guidance of the Senate.
Gracchus: So, after Rome’s all yours, you just give it back to the people. Tell me why.
Maximus: Because that was the last wish of a dying man.

So, too, did LRH have a last wish to end one-man rule. He created an elaborate corporate structure with power distributed among seven boards of trustees and directors in three religious corporations.

Alas, so, too, was his will subverted by a man with a lust for absolute power.

This is step one of an action plan for Scientologists to carry out the dying wish of LRH to end one-man rule of Scientology and implement his plan of checks and balances.

Three Major Myths Re: Church Leadership

A little false data stripping may be required for some readers. False data stripping means the removal of false data, and is based on a discovery by LRH that it “can be nearly impossible to hat (i.e., train) anyone who is sitting on false data on the subject you’re trying to hat him on.”[1]

There are three major myths (false data) in Scientology on the subject of church leadership.

Myth One: RTC is the Senior-Most Echelon in Scientology

Scientologists have been conditioned to believe that Religious Technology Center (RTC) is the senior-most echelon in Scientology. Most Scientologists have not even heard of Church of Spiritual Technology (CST). Those who have heard of it probably regard CST on the order of, “Oh yeah, they’re the ones who put all the Technology on platinum plates and stored them underground in different places around the world.”

The truth of the matter is that LRH bequeathed[2] to CST an option to purchase from RTC its sole raisons d’etre (reasons for existence): the trademarks and Advanced Technology of Scientology. With a mere stroke of a pen, and $200, CST can virtually eliminate RTC. Thus, LRH gave to CST the right of inspection into, and oversight of, RTC. Not the other way around.

You don’t need to take our word for it, click here and here to see the documents.

Myth Two: LRH Intended David Miscavige to Rule Scientology

The second major myth is that LRH passed the torch of one-man rule to Miscavige. The truth is that LRH intended one-man rule to end upon his death. He distributed power among seven boards of trustees and directors and three religious corporations with multiple cross checks and balances among them. LRH Intent.

General Director: A person who oversees the affairs of a corporation, elects and removes officers of the corporation in accordance with state law and the bylaws of the corporation.

Trustee: A legal term for a holder of property on behalf of a beneficiary. In this case, the beneficiaries are Scientologists. LRH selected the trustees, appointed them for life, and empowered them to elect and remove general directors of their respective corporations.

Within this corporate structure, LRH established CSI – not RTC – as the “Mother Church” to:

oversee and manage the ecclesistical affairs of all other churches of Scientology to ensure and maintain the purity and integrity of the religion of Scientology. Further, the Church shall be responsible for the overall propagation of the religion of Scientology throughout the World and for the enforcement of the ecclesiastical tenets of the religion as set forth in the Scriptures.[3]

Miscavige was merely one of seven of the original trustees of RTC. The RTC Articles of Incorporation were amended in LRH’s lifetime, and RTC governance fell to a board of trustees and a board of general directors. (RTC Bylaws)

Myth Three: Chairman of the Board of RTC is the Top Position in Scientology

The third myth is that Chairman of the Board RTC is the top position in Scientology. To begin with, LRH did not single out any one member of either RTC board to be a “chairman” or to have more authority than the other board members.[4]

Secondly, a chairman is not an executive position, it is merely an individual member of a board who oversees board meetings.

Besides, RTC has two boards: a board of trustees and a board of general directors. One might ask: On which board does Miscavige sit? Of which board is he a chairman?

CST Independence

CST and its boards of trustees and directors necessarily must be independent and not subservient to RTC or any of its boards or staff members for 3 reasons:

1. State law requires boards of nonprofit religious corporations to be independent;

2. IRS regulations require tax-exempt organizations to be run by independent boards, and exemption was granted Scientology organizations based on the LRH-approved corporate structure and bylaws presented the IRS, all of which are viewable on this website; and

3. LRH intended the corporate structure and bylaws adopted during his lifetime be implemented, and organized his estate plan (i.e., dying wishes) around them.

For example, if Miscavige (or any future ruler) has the authority to summarily remove – or banish to the Rehabilitation Project Force (RPF) – any of the board members of CST, then any attempt by CST trustees and directors to investigate RTC, or to question whether CST should purchase the rights of RTC, could be thwarted.

If CST is subservient to RTC, or if CST boards are controlled by RTC, then LRH’s intent has been subverted, his trust betrayed.

Existing Scene

As we set forth on this website, our investigation found substantial evidence that the boards of trustees and general directors of CST, as well as the boards of trustees of CSI and RTC, are “sham boards,” completely dominated by David Miscavige. (Existing Scene)

Here is a brief review:

●There are no board meetings, someone from the legal department of Office of Special Affairs International (OSA Int) from time-to-time presents documents for them to sign;
●Miscavige holds signed, undated resignations from each board member;
●Miscavige appoints and removes members at his will; (A board member only knows if he/she had been removed when OSA Int no longer brings them documents to sign); and
●Miscavige – not CSI, as LRH directed – administers justice over CST board members.

None of the members we interviewed had even read the corporate bylaws or state law and IRS requirements for tax-exempt status, let alone understood them. They had not been trained for their positions.

Trustees, who were appointed by LRH, did not even know that the positions were for life.

OSA Int, by the way, is in Department 20, Division 7, of CSI. According to the claims of former high-ranking RTC and OSA executives, Miscavige micro-manages OSA Int. So, we have in effect, if true, Miscavige controlling the CST boards of trustees and general directors. In other words, the boards are “sham” boards, mere “rubber stamps” of David Miscavige.

And thus, if true, the safeguard established in CST by LRH has been nullified. The power to investigate RTC, rein it in, or eliminate it has been usurped by David Miscavige.

A Prudent, Constructive Solution

What we propose is simply an independent investigation, a “compliance audit” by an external firm to ensure the boards are operating in accordance with state law, IRS tax-exempt regulations and LRH intent, as expressed in his estate plan and in corporate documents approved by him.

No harm can come from this, even if our facts and conclusions are wrong. If we are right, then tremendous benefit will come from it, possibly saving Scientology, now or in some distant future.

Legal Stuff

For those who want more of the legal nuts and bolts behind the basic premise of the action plan, click here.

To cut through the legal stuff: CST special directors are asleep on watch, whether by dereliction, incompetence or by design. At this point, it matters not which.

We need to wake them up.

The Plan of Action

The plan is to pressure CST special directors to do their jobs, starting with the independence of the CST boards of trustees and directors (including the independence of the board of special directors, if applicable).

This is step one in a series of steps. Hence, the title of this article Action Series 1.

We urge Scientologists to help by doing three things:

1) Read the Demand for Compliance Audit letter to CST Special Directors. The letter serves to put the special directors (who are licensed, compensated California lawyers) on notice of a situation involving their legal duties, and requests them to responsibly handle the situation by conducting an independent audit. The matters to be audited are specified in the letter. To view the letter click below:

2) Send a letter of support to a law firm retained by us, stating your support for our demand for a Compliance Audit. We have prepared a sample letter which can be sent anonymously. See “Instructions” below for further details.

3) Spread the word. Inform other Scientologists you know of the situation by disseminating flyers to them by: A) email, B) regular mail, or by C) simply stuffing the flyers on their windshields or in their mail boxes. The flyers are intended to alert other Scientologists to the situation we are addressing. See “Instructions” below for further details.

Instructions

Letter of Support. Add your name or a code name (i.e., an alias or user name) and date it, then mail it to the law firm on the letter. You do not have to use your address on the envelope if you are using a code name.

If you use a code name, use something unique made up of letters and numbers, e.g. Jdoe12RC, and make a unique mark in the signature line. The code name and signature mark you use should be consistent in each letter you send. (There are more action steps to come.)

Create evidence. Make a copy of the letter after you fill it out, and keep it on file. This step is especially important for those using a code name. We might need to match the letters to an identity at a later date if and when we need evidence of the amount of support we have – and when people feel more comfortable doing so.

Flyer. The flyer is a two-page, color pdf document. Email it to your Scientology friends, using an alias email account if you prefer anonymity. You can also mail it to them, or simply stuff it in their residential mail boxes or place it on the windshields of their cars. (Don’t trespass or break any laws in doing this.)

The flyer looks best in color and printed as a two-sided, one-page document. If you don’t have the capability to easily do this, we recommend you download the flyer to a flash drive and take it to a nearby Kinkos-type shop. Print it as a black & white, two-page flyer, if you must. Or print this article and distribute it. The idea is to spread the word and involve others.

Keep stats:# of support letters out
# of flyers to Scientologists

Stay turned for future Action Steps.

Gradients

We are operating on gradients.

This Action Program is a higher gradient than our prior gradient, which was going public with calls for an internal, independent investigation. There are higher gradients if this one fails to achieve results. We need not discuss them now. We only wish to point out that we have attorneys on retainer who specialize in this area of the law and that this Action Program is designed to either achieve the intended result or to set up the next gradient.

Thus, it is important for us to act as outlined above: notify, create evidence of notification, inform your fellow Scientologists, and keep stats. Numbers count!
____________________

[1] HCO PL 7 Aug 79, False Data Stripping (also issued as an HCO B with the same date and title)

[2] http://www.merriam-webster.com/dictionary/bequeath

[3] CSI Bylaws, Article III, section 2.

[4] RTC Bylaws

[5] For example, click here

“Make no mistake, it’s not revenge he’s after. It’s a reckoning.”

- Doc Holliday line in the movie, Tombstone.

In 1968, LRH cancelled the policies of Disconnection, Security Checking, and Fair Game. To hear LRH himself announce the cancellation in Ron’s Journal ‘68, play the audio excerpt, click here. To read the text of LRH’s statement, click here. See also, “Reform Code” in the Admin Dictionary, which references RJ 68.[2]

LRH took these measures in response to the results of massive public surveys he ordered be conducted for the purpose of determining why some of the general public didn’t like Scientology, as evidenced by legal actions taken against Scientology by England, Australia and a threatened investigation into Scientology by New Zealand.

The public, LRH discovered, didn’t like our use of these policies.

So he cancelled them and wrote a letter to New Zealand explaining his actions. The plans for an investigation were dropped.

It is probably no coincidence that, after the cancellation of these policies, Scientology experienced a boom in membership. Many people who got into Scientology in the late 1960s and early 1970s have many fond, fun memories of that era.

History Repeats Itself

David Miscavige revived the LRH-cancelled policies, on steroids one might fairly say.

Stories of abuses at our international headquarters in Hemet, California (the “Int Base”) began leaking out in recent years. The abuses have been alleged by former high-ranking Sea Org Officers, such as Mark “Marty” Rathbun (Inspector General for Ethics, RTC), Mike Rinder (Commanding Officer, Office of Special Affairs) Amy Scobee (longtime Watch Dog Committee member) and many others. The allegations include:

●Beatings; degradations of Int staff;
●Imprisonment (in the so-called “hole” at Int Base & locking up those who wished to leave);
●Fences topped by razor-wire (pointed inward – meaning, keeping people in the Int Base);
●“Overboardings” (throwing disfavored staff into a lake at the Int Base, admitted and defended by Miscavige spokesperson Tommy Davis);
●Breaking of Sea Org marriages, either by ordered divorces or separations through postings in different parts of the world or country for long periods of time;
●Coerced abortions;
●Enforced disconnections (even among family and between spouses);
●“Blow Drills” (where those who managed to have escaped the Int Base are reportedly tracked down and brought back to the Base);
●And on and on.

Thousands of people with no previous affiliation with Scientology have taken up what they believe to be a righteous cause, routinely picketing our organizations, clamoring for media and governmental action to curb the alleged abuses. Media and governments from various parts of the world have obliged them, with calls for revocation of tax-exempt status, investigations, criminal charges and outright bans of Scientology.

Why We Fight Our Critics

As Scientologists, it is easy to reject the reports of our critics, instinctively unite, and attack back. It may be especially inviting to lock horns when their reports are laced with inflammatory labels pinned on our Church (a “cult,” etc.), on its members (that they are “DM bots” – meaning mindless robots of David Miscavige, etc.), and on Miscavige himself, its leader (that he is an “SP,” “squirrel,” etc.).

But dismissing reports of abuse out of hand because of who is reporting and their manner of reporting collapses the messenger with the message, burying it.

Failure to confront the reports of abuse, investigate them (independently of those staff members who are implicated in the wrongdoing), and address any confirmed abuses is reckless and irresponsible, resulting in ever-increasing damage to the repute of Scientology, LRH, and the technology.

When one looks at what is being reported and protested, we believe one will see a common, underlying message to David Miscavige, which is:

Judging by the actions and words of the whistleblowers and our critics, many of the public have decided that the Miscavige Administration’s policies of disconnection, fair game (annihilation of anyone who dares to criticize, even fairly), and sec checking (more accurately, the misuse of sec checking) must go. And along with them, beatings, abuses, degradations, and dictatorial control.

LRH cancelled the first three policies because he discovered the public intolerance for our use of them, which had resulted in not one but three government actions in 1968 against the Church.

It should come as no surprise to anyone, therefore, that after the reinstitution of the LRH-abolished polices (now applied more rigorously than ever before based on a multiplicity of reports), we find ourselves immersed in an almost daily onslaught of public attacks, which can be verified by a quick Internet search.

At this writing, for example, four recently released books exposing Scientology abuses top Amazon’s “Bestseller Scientology” list, outselling Dianetics. Three are written by former Sea Org members. One, the top seller, is written by a nationally known reporter for Rolling Stone magazine.[3]

Previous articles on this blog have documented other major media stories and calls for government intervention into Scientology, including an FBI investigation into the allegations of abuses at Int Base.

The Miscavige Administration claims that all of the reports are false, that Miscavige is a victim of liars, squirrels, and SPs, and it has engaged in campaigns to discredit the accusers, allegedly using the same techniques decried by them: disconnection and fair game (including the dissemination of personal information confessed by them in session).

The situation persists. The response of the Miscavige Administration isn’t working.

The attacks aren’t dissipating, they are increasing. Eventually, governments will weigh in. That is what LRH saw in 1968, which is why he cancelled the policies to begin with.

We need to get rid of these objectionable policies and practices, once and for all, stop attacking back, and conduct an independent, internal investigation. We are creating war rather than peace. We want a world of peace, not war.

Words and Deeds Define Who We Are

The allegations bullet-pointed above, whether true or not, tend to define us in the eyes of the public. If you want to know what Scientology is in the minds of many in the general public, review the list again. What kind of an organization uses confidential information obtained in a religious confessional against a person who later leaves and speaks out? Beats and degrades staff? Orders its members to disconnect from their spouses and families? Uses razor-wire fences and guards to ensure staff do not leave?

Whatever kind of organization does these things is what Scientology is in the minds of many, because the Internet is filled with allegations of this nature, many of which are in the form of first person testimony made in videos by credible appearing accusers.

The fact that the Miscavige Administration has denied the allegations does not dispel of them in the eyes of the general public because the claims are leveled at David Miscavige and his Administration, the person making the denials. This is like investigating oneself and finding oneself innocent. Thus, the denials aren’t credible; they don’t count.

The allegations need to be investigated by a body wholly independent of David Miscavige. Only then can they be confirmed or disproven. The more independent and credible the investigative body and its members, the more the findings are likely to be accepted by the general public. When the findings and any remedial actions taken are publicly announced – and especially if the allegations don’t recur, only then can the matter be put to rest.

In our articles on this blog, we have repeatedly asked for an independent, internal investigation as part of what we referred to as the Corporate America protocol, which is an accepted, proven way of handling charges of corporate corruption.

Our requests have gone unanswered and unheeded.

Our Duty as Scientologists

As individuals in Scientology, we tend to not look at external criticism. To the extent we do look, we often reject it out of hand. We don’t talk to friends about what we see and hear, even when we are troubled by those things. If a friend ventures onto a questionable subject, he or she does so delicately, with one eye on our “indicators” (reaction), aware that the inquiry might prompt us to write a report that reveals his or her “disaffection,” or aware that the next security check might lead to the same result. And we may be fearful of writing reports or protesting Church policies and practices too strongly or in a manner that might be interpreted as criticism of (“reverse”) management.

True, there is an element of survival to explain our allowance and tolerance of this condition. We had to battle for our religious status and fight external criticism in the course of that battle. We want to keep our religious status. We want a strong group.

We can never be a group, never mind a strong one, however, if we don’t take responsibility for our group as individuals.

Organizations do not bleed, they do not breathe; they do behave oddly enough like a single organism… But when the individuals in it cease to behave as individuals, cease to have their own thoughts, cease to be capable of their own initiative, cease to be able to take their own action, then the whole organization boils down to just one man, and he’s the only one who could make a decision … the only one who could act… [but an organization] is composed of individuals who observe and who look… The only thing I am trying to teach you is to look. (Emphasis added.)[4]

In order to resolve the current situation, and to ensure it never repeats itself, we must start by behaving as individuals, choosing to consider that information we as individuals acting on our own determinism decide what is relevant for us to consider in order to effectively wear our hats as Scientologists. Each of us must decide for ourselves to whom we should connect and with whom we should communicate, and when we should take action.

A Call For Action

We need to make peace with former members and the general public. We need transparency. We need to honestly assess our actions and policies through the use of both an internal, independent investigation and broad surveys of the general and Scientology public.

We can either originate corrective actions and by doing so control our destiny and ensure an accurate evaluation and a just result, or just allow events to play out and risk greater and greater harm to the repute of Scientology, LRH, and the Tech, putting in jeopardy our valued tax-exempt status and exposing the organization to criminal sanctions, even seizure of assets.

Miscavige should follow the long and noble tradition of great leaders who have placed the interests of their organizations above their own personal interests, even when not guilty, and stepped down for the good of the group. He should sanction these corrective measures and voluntarily step aside pending their outcomes.

If not, we have to bypass and remove him. Before it is too late.

This is not a choice. This is our duty.

What should we do? Anything but nothing. Even if you only send a link or a copy of this article to friends, anonymously if you must. Mail a copy to Miscavige. Copy and print off LRH policies against fund raising and send them to your friends, show them to reges. Talk to your friends. Write Miscavige or your local orgs and ask what their delivery stats are. How many auditors in training do they have? How many well-done auditing hours are they producing? Get a history. It’s your Church, you have a right to know. How else can you take responsibility?

Mail a letter to Miscavige asking him to step aside pending a thorough internal investigation of the claims of former top Sea Org executives and the claims made on this website that LRH’s intended cross-checks and balances were never implemented, the seven boards of directors and trustees of the three governing corporations of Scientology mere “rubber stamps” for him. You don’t have to sign your name.

Mail him a copy of The Virtues.

Ask him where Heber is? Where are all the other top Sea Org executives who used to appear in public? Who’s currently on the Watchdog Committee (or ask if it currently exists)?

Demand from Miscavige the true membership statistics? How many auditors are being made? How many cases are being cracked, Clears and OTs made? How many Ideal Orgs do we have, using the standards of LRH: orgs, including number of staff, students on course, PR Area Control, not the size and splendor of the buildings.[5]

Certainly, the number of large, elegant buildings is not an LRH standard.

When buildings get important to us, for God’s sake, some of you born revolutionists, will you please blow up central headquarters.[6]

(Print off the above policy (see citation in endnote) and stuff it in your friends’ mailboxes – electronic and snail. Or, if your neck is not too precious, and your spine is intact, hand a copy to the next person who tries to reg you for building donations.)

End the culture of repression here and now. Support this website. Do Something.

You can help. We will have constructive actions for each of you to do. The suggested actions can be done anonymously if your circumstances dictate.

(The mere fact that we offer this caveat, and that you understand why, proves our earlier point that we live in a culture of repression in Scientology.)

Check back to this website often for specific things you can do to make a difference.

A New Era Of Management

We postulate a new era of management with Scientology organizations overseen administratively by a reconstituted Watchdog Committee and corporately by LRH’s intended cross-checks and balances through seven (truly) independent boards of trustees and directors.

We further postulate:

●A general amnesty.
●Cancellation – FOREVER – of disconnection, sec checking, and fair game (by any name) policies and practices.
●Acceptance of those people who want to return and take part in reforming the Church; let everyone contribute who wants to.
●A special project to clean up the field.
●Families brought back together.
●Care for aging and ailing Sea Org members who have been neglected.
●Management based on LRH-recommended values set forth in The Virtues, which are listed at the end of The Way to Happiness booklet.

Note: These golden standards are the polar opposite of the publicly-despised policies of disconnection, sec checking, and fair game.

Implementation of LRH’s intended management and corporate structure, along with a new era of management style postulated above, we believe, will help restore to Scientology a group of incredible camaraderie, working together to achieve the aims of Scientology:

A civilization without insanity, without criminals and without war, where the able can prosper and honest beings can have rights, and where man is free to rise to greater heights

Post Script: How can we create a civilization without war if we cannot create an organization without war?
________________________

[1] Online definition

[2] Modern Management Technology Defined, First Ed., p. 440.

[3] Amazon Booksellers

[4] L. Ron Hubbard, 15 July 1957, Scientology and Effective Knowledge – PRO TRs Course Lecture

[5] See, LRH ED 339R and HCOPL 12 March 1975, Data Series 40, THE IDEAL ORG

[6] L. Ron Hubbard, 31 December 1960 lecture, The Genus of Dianetics and Scientology; see also, L. Ron Hubbard, HCO PL 24 February 1964, Issue II, Urgent, Org Programming (OEC Vol. 7, p. 930) (Don’t engage in fund raising, “Solve it with Scientology.”)

Miscavige then reportedly created an empire for himself, a lavish lifestyle fit for a king, and bestowed on his purported best friend, Tom Cruise, gifts in the form of thousands of hours of Sea Org labor. (See, e.g., Excess Benefits Worksheet)

It is no wonder that various media outlets have publicly called for a revocation of the Church’s tax exempt status, including such prominent media as ABC News Nightline, on October 23, 2009 and The New York Times, Sunday edition (the article appearing on page one, above the fold), on March 7, 2010.

The reports of Miscavige’s financial and management irregularities strike at the core qualifications for tax-exempt status. The affairs and activities of nonprofit religious corporations must be governed by a board of independent directors. And private benefit by individuals from the assets and income of a charitable organization is unlawful and grounds for revocation of tax-exempt status.

Inure and inurement are arcane legal terms that refer to receipt of an improper benefit from a charitable organization. The goal of the inurement prohibition is to prevent “insiders” from siphoning off income or assets – from profiting off a nonprofit organization, in other words.

The rule is absolute. An organization in violation of it does not qualify for tax-exemption, or will cease to qualify, no matter how small the inurement, in theory even one dollar.

Intermediate Sanctions

Because revocation amounts to a “death penalty” for exempt organizations and punishes the organization and everyone affiliated with it, not just the individuals responsible for the improper benefits, inurement was rarely invoked. This effectively meant that most inurement was not penalized, which led to more violations. To combat this enforcement deficiency, in 1996 Congress enacted penalties for “excess benefit transactions.”[2]

These rules gave the IRS the power to penalize actual wrongdoers with lesser penalties than revocation, sparing the organization and its innocent members and affiliates in those cases where the inurement was not so bad as to justify revocation. Hence the term “intermediate sanctions.”

Excess Benefit Transactions & Disqualified Persons

Under the new rules, “disqualified persons” cannot receive “excess benefits” from a tax-exempt organization.

A “disqualified person” is a person who is in a position to exercise substantial influence over the affairs of the organization (whether such influence is formal or informal). The definition includes the organization’s directors as well as certain officers and key employees, and anyone else who, depending on the facts and circumstances, exercises substantial influence over its activities. Beginning in August 2006 the term also includes donors.[3]

An “excess benefit transaction” is a transaction in which an economic benefit is provided by a tax-exempt organization to or for the benefit of any disqualified person, if the value of the economic benefit provided by the exempt organization exceeds the value of consideration (including performance of services) received for providing the benefit. Reasonable compensation to disqualified employees, for example, is not considered an excess benefit.[4]

Automatic Excess Benefit Transactions

If a benefit is received by a disqualified person AND if the benefit was not reported to the IRS by either the organization or the recipient of the benefit, the benefit received is deemed an “Automatic Excess Benefit.”

If a benefit received by a disqualified person IS reported as income on his or her tax returns (i.e., the fair market value (FMV) of the benefit received is reported as income) BUT IF the organization did not duly authorize the benefit, ahead of time, it is an Automatic Excess Benefit. And the recipient CANNOT authorize his own benefit, even if it is a fair benefit.

In the compensation of a senior executive, if the benefits are approved by a rubber stamp board of directors (i.e., not an active, independent board), they are not “duly” authorized and the benefits are Automatic Excess Benefits.

Example: Assume that a fair salary for spiritual leader Jones is $100,000 a year. Jones is paid a salary of $30,000. Jones receives, in addition, expensive personal benefits, like a personal valet, scuba diving trips (reportedly enjoyed by Miscavige), etc. Say the FMV of these personal benefits total $50,000. The personal benefits plus the $30,000 salary total $80,000, which is below Jones’ FMV of $100,000. BUT, if the $50,000 of personal benefits were not duly and properly authorized (completely independently from Jones) OR if they were not reported as income, the personal benefits would be deemed Automatic Excess Benefits.

Penalties – Intermediate Sanctions

Penalties for excess benefit transactions with a disqualified person can be severe. In all cases, the excess benefit must be corrected and the organization made whole. This usually requires full payment for the benefit received plus interest. In addition to correction, an excise tax[5] in the amount of 25% is assessed the recipient of the benefit.

If the full correction does not occur within the taxable period (i.e., the date between the occurrence of the excess benefit and the notice of deficiency) an additional 200% penalty is added.

Control people who are in a position to authorize the benefit, and who thus allowed it, are subject to a 10% penalty, up to a maximum $20,000 per transaction.

These are penalties personal to the wrongdoers. Fat cat donors can’t cover the penalties. Nor can the organization reimburse the wrongdoers. That, too, would be an excess benefit.

For examples calculating intermediate sanctions, see below: Allegations of Excess Benefits.

Income Tax Evasion

Additionally, there are criminal liabilites. Income tax evasion is a felony punishable by up to five years in prison and by a fine up to $100,000. Excess benefits are a form of income. If the recipient of an excess benefit fails to report the fair market value of the benefit as income, he or she may be liable for arrest and prosecution.

Statute of Limitations

The “statute of limitations” is the time period during which a person can be prosecuted for a civil or criminal wrong. After the statute of limitations time period has passed, a violator is “off the hook.” The statute of limitations for a criminal violation is seven years; the statute for a civil violation is three years.

The difference between criminal and civil is the penalty being sought by the IRS. The statute for criminal violations begins to run when the tax evasion occurred (i.e., when the return that didn’t report the benefit was filed). But the statute for civil violations does not begin to run until the tax return is amended and the failure to report the benefit is corrected, meaning that the statute of limitations can be unlimited.

Clink on the links to access:WorksheetMemorandum

In summary, the allegations fall into two major categories: excess benefits to David Miscavige and excess benefits to Tom Cruise. Clearly, Miscavige is a disqualified person. Given the well-documented close personal relationship between the two, coupled with his donor status, Tom will likely be considered a person with substantial influence in Scientology. (For more on this, please refer to section 2 of the Memorandum.)

Please note: (1) Our lists of alleged excess benefit transactions are not complete due to time constraints. We conducted enough research to identify potential risks to the Church. (2) The allegations are just that, allegations. Still, all revocations and intermediate sanctions – and criminal convictions, for that matter – start with allegations. So, the allegations should be treated seriously. They should be investigated and confirmed, or proven false, by an independent tribunal, one over which interested parties have no influence, something we are calling for the Church to convene. (3) Our investigation reveals that the Church is not winning the PR/credibility battle with the whistleblowers; its credibility is largely shot. We feel safe in predicting, therefore, that a trier of fact, such as a tax court or a jury, will probably side with the whistleblowers. (4) And thus, the risk to the Church should be regarded as both real and grave.

Items from the lists, such as Miscavige’s personal valet, trainer, personal chef, designer clothes and shoes, scuba diving trips, multiple luxury automobiles, etc. are all benefits that need to be reported. Items such as elaborate dinners, exclusive travel and accommodations may also be deemed excess benefit transactions.

The test is two-fold: was the item (1) necessary for the business of the organization and (2) reasonable in amount. Using this test, one can see that many of the reported benefits received by Tom Cruise and David Miscavige constitute excess benefit transactions and, with respect to Miscavige, also inurement.

Examples: Calculating Intermediate Sanctions

Example 1:Excess Benefit Transactions – Tom Cruise

In the February 28, 2011 edition of Star magazine, former high-ranking Sea Org member John Brousseau is quoted as estimating his personal labor for the customization of a Ford SUV for Tom Cruise at 2,000 man-hours. Mark Rathbun, former Miscavige right hand man turned whistleblower, stated that more than 9,000 hours of Sea Org labor went into building a luxury bus for Tom named the Silver Screen.

If the fair market value of the labor is calculated to be $50 per hour, which is not unreasonable judging the fine craftsmanship of the work depicted in the photographs, the excess benefits to Tom – for the Ford SUV and Silver Screen bus alone – is 11,000 hours x $50 per hour = $450,000. Therefore, potential penalties are:

Tom Cruise:

Excise tax (25%)$112,500
Cost of correction450,000 + interest
Penalty (200%)900,000 (if not timely corrected)
Potential Total$1,462,500

David Miscavige:As Operational Manager (10% up to $20,000 for each benefit)

Ford SUV benefit10% of 2,000 hours x $50/hour = $10,000
Silver Screen benefit10% of 9,000 x $50 = $45,000 = 20,000 (maximum)
Total$30,000

Example 2:Excess Benefit Transactions – David Miscavige

Miscavige reportedly has seven vehicles and two custom made motorcycles. Assuming that three of the more reasonably priced vehicles are considered necessary and reasonable, the other four, plus the motorcycles (clearly personal and recreational), constitute excess benefits.

Range Rover$80,000
Bullet proof GMC Van150,000
BMW M6110,000
Acura (mostly parked)45,000
Handcrafted Motorcycles50,000
Total$435,000

David Miscavige:

Excise tax (25%)$108,750
Cost of correction435,000 + interest
Penalty (200%)870,000 (if not timely corrected)
Potential Total$1,413,750

Notes: (1) Miscavige may not have title to the vehicles, in which case the excess benefit will be valued on a rental basis, which potentially could reach the same amounts, or more. (2) The IRS could choose to proceed with a criminal charge for tax evasion; (3) The IRS could also seek revocation of tax-exempt status; (4) The IRS could require removal of Miscavige from any executive position in Scientology as a condition for continued tax-exempt status.

Intermediate Sanctions + Revocation

Under current rules, the IRS may impose the intermediate sanctions in lieu of or in addition to revocation of tax-exempt status. In 2008, the IRS published standards that it will use to determine whether to also revoke tax-exempt status of an organization that has engaged in a transaction occurring after March 28, 2008 that constitutes both inurement to an insider and an excess benefit transaction.

Factors the IRS consider include:

●The size and scope of the organization’s regular and ongoing activities that further exempt purposes before and after one or more excess benefit transactions occurred;
●The size and scope of one or more excess benefit transactions relative to the size and scope of the organization’s regular and ongoing exempt functions;
●Whether the organization has been involved in repeated excess benefit transactions;
●Whether the organization has implemented safeguards that are reasonably calculated to prevent future violations; and
●Whether the excess benefit transaction has been corrected or the organization has made a good faith effort to seek correction from the disqualified person or persons who benefited from the excess benefit transaction.

The new regulations also state that the factors listed above will weigh more heavily in favor of continuing to recognize exemption where the organization discovers the excess benefit transaction or transactions and acts before the IRS discovers the excess benefit transaction or transactions.

Furthermore, the IRS places a premium on good governance, active, independent boards, and safeguards, particularly in regard to compensation of executives in control of the organization.[6]

A director (or trustee) is required to perform his or her duties “in good faith, in a manner the director believes to be in the best interests of the corporation, and with such care, including reasonable inquiry, as is appropriate under the circumstances.”[8] Transactions with the corporation in which a director has a material financial interest constitute “self-dealing,” and are unlawful.[9]

Failure to have knowledgeable, active, and engaged boards governing the organization jeopardizes tax-exempt status. IRS guidelines check for the existence of independent board members who are not dominated by employees of the organization or who are not, by their very nature, independent, in order to identify the potential for insider transactions that could result in misuse of corporate assets.[10]

Sham corporations potentially render all benefits taken by persons in control Automatic Excess Benefits. And, as highlighted above in the bullet pointed list, the lack of corporate safeguards is a factor the IRS considers in determining whether to revoke tax-exempt status. The lack of active, independent boards, therefore, increases the risk for a revocation action

Increasing the risk further, documents submitted to the IRS by the Miscavige administration during the application for the Church’s tax-exempt status in the early 1990s painted a false picture of its corporate governance. The papers submitted to the IRS showed fully functioning corporate boards, with active, independent members attending board meetings, resolutions by trustees electing and removing general directors, and so on and so forth, exactly in accordance with LRH’s intention and the governing corporate documents of CST, RTC, and CSI.

As depicted in the Existing Scene, however, Miscavige dominates and controls the boards and the affairs of Scientology, across all organizations and management.

Each and every former trustee and general director personally interviewed by us independently provided the same story: There were no board meetings. Even though it was their express duty to elect and remove general directors, the trustees never were allowed to do this. In fact, the trustees didn’t even know who sat as directors during their tenures. No trustee or director was trained in or permitted to independently do their trustee/director functions as required by law.

Reportedly, no lawyer ever explained to the trustees and directors their duties, or inquired whether they were acting independently and in accordance with the law. From time to time, staff from the legal department in Office of Special Affairs International came by their normal post desks and presented documents for them to sign. No examination, inquiry, deliberation or discussions with other trustees and directors ever occurred. They were merely told to sign documents placed in front of them. Their only function was to act as David Miscavige’s rubber stamp.

If all true, the record supplied the IRS on which tax-exemption was granted was a fraud, and is, itself, justification for revocation.

So intent on obtaining tax-exempt status was LRH that he made sure each set of corporate bylaws made it a “special duty” of directors of the corporations “to assure: i. That no part of the net earnings of the corporation inure to the benefit of any person.” See, e.g., CST Bylaws, Article VII, section 1(e); CSI Bylaws, Article VII, section 1(c); and RTC Bylaws, Article VII, section 1, section (c).

More than that, LRH went to the extraordinary length to create in CST a “Special Board” of directors comprised solely of lawyers (Stephen Lenske, Sherman Lenske, and Lawrence Heller, of Lenske, Lenske & Heller, a law firm in Woodland Hills, CA). They were mandated to ensure the following:

i. That the corporation attains tax exempt status, as soon as practical, and that such status is maintained throughout the existence of the corporation.
ii. That no part of the corporation inure to the benefit of any private individual, firm or corporation.
iii. That the assets of the corporation are not subject to waste and/or extravagance but are instead increased in value.
iv. That proper Scientology management is correctly applied to the end that the purposes of the corporation are accomplished.

(CST Bylaws, Article VIII, section 1(d))

Unlike the trustees and general directors, the special directors were compensated, which exposes them to civil liability if they fail in their tasks or cause harm to the organization and its members through breaches or dereliction of their fiduciary duties – duties owed, not to Miscavige, but to CST and Scientology organizations generally.

Why didn’t the lawyers make sure that the trustees and general directors understood their roles and were functioning independently? Why didn’t they at least, in fulfillment of their fiduciary duties of care, inquiry, and loyalty[11], brief the trustees and general directors of CST on their legal obligations and LRH’s wishes?

“[A] director may not close his eyes to what is going on about him in the conduct of the corporate business and, if he is put on notice by the presence of suspicious circumstances, he may be required to make such ‘reasonable inquiry’ as an ordinarily prudent person in his position would make under similar circumstances.”[12]

Directors (and trustees) are obligated to champion the best interests of the organization’s constituents (in this case the religious purposes of Scientology).[13]

Church tax attorney Monique Yingling has similar potential liability. Why didn’t she inquire into the actual practices of the boards prior to the submission of corporate papers to the IRS during the application for exemption process?

Whose interests do these lawyers really represent? If the answer is David Miscavige’s, why is this not a breach of their fiduciary duties to the Church? Has there also been self-dealing and excess benefit transactions involving the lawyers who are supposed to be acting solely for the interests of their clients, the various Scientology churches?

All of this needs to be internally investigated by an independent tribunal.

The guiding principle, we believe, should be to save Scientology, the religion, first, and its institutions (corporations), second, not individuals who have placed them all at risk. (See, LRH Intent.)

This can likely only occur with the implementation of LRH’s intentions, contained in his last will, for the governance of Scientology after he died. LRH specified that after his death, one-man rule would cease. There was to be a dramatic change in operating basis: Scientology would be overseen by three corporations governed by seven boards containing multiple checks and balances.

The implementation of checks and balances must occur in order to come into compliance with documentation supplied the IRS during the 1990s application for exemption process and to meet IRS standards for continuing exemption. In light of the widely reported allegations of private benefits and inurement, this is absolutely essential, as we believe any independent, competent tax attorney will agree.

To not take these remedial actions is dangerously reckless.

Miscavige, the CST special directors, and Monique Yingling should spearhead the institution of remedial actions (but obviously not participate in the investigations due to their implications in the wrongdoing). Miscavige should step down pending the completion of the investigations in order to remove any question as to his possible influence on the process. If he is found innocent, he can be reinstalled.

Whether or not the IRS seeks revocation may depend on what David Miscavige and the various Church attorneys do now. Now is the time for them to act strictly for the interests of Scientology, the Church and its parishioners, brushing aside all self-interest. If not, they will likely become the subject of justice actions.

The IRS hopefully will refrain from from seeking revocation if these reform actions are immediately initiated, having gotten the message: we handled the situation ourselves; we got our own ethics in; no external justice action is needed. Both LRH policy and IRS regulations concur on this point – a party’s own actions in correcting itself are key data in assessing whether a justice action is necessary and proper.

If the IRS feels it must proceed, we request it seek intermediate sanctions against any culpable parties. Revocation would punish the tremendous number of innocent, dedicated (to charitable purposes) staff and public Scientologists.

Miscavige’s reported act of giving Tom a $200,000 birthday party, for example, paid for out of Church funds and resources (likely an excess benefit transaction), therefore, may not have been a friendly act.

Given the number of law firms retained by the Miscavige administration, given Miscavige’s own statements about his intimate involvement in the Church’s tax case in the 1990s, coupled with the fact that Monique Yingling, a chief Church lawyer, is a tax attorney, it is difficult to believe that Miscavige does not know the risks he has seemingly created for the Church and its top supporters, such as Tom Cruise.

_________________________

[1] e.g., http://www.tampabay.com/specials/2009/reports/project/rathbun.shtml

[2] Internal Revenue Code, Section 4958.

[3] ¶333.2, http://www.federaltaxissues.com/0300_private/0300_private_toc.php

[4] ¶333.4, http://www.federaltaxissues.com/0300_private/0300_private_toc.php

[5] An excise tax is a tax on the use or consumption of certain products or activities, such as gasoline or wagering, as opposed to taxes on property or income.

[6] For more on this subject, see: http://www.adlercolvin.com/pdf/public_charities/A%20%20%20C%20Web%20Resource.%20%20%27Excess%20Benefit%20Transactions%27%20%2800191414%29.PDF

[7] California Corporations Code, Sec. 9210

[8] California Corporations Code, Sec. 9241

[9] California Corporations Code, Sec. 9243

[10] Sections 3 & 4, http://www.irs.gov/pub/irs-tege/governance_practices.pdf

[11] California Corporations Code, Sec. 9241(a).

[12] C.E.B., Advising Cal. Nonprofit Corps (2d ed) §1.04, quoting Report of the Assembly Select Committee on Revision to the Corporations Code 50 (1975)

[13] C.E.B., Advising Cal. Nonprofit Corps (2d ed) § 8.105

This latest wave was set in motion by a 28-page feature article in one of America’s most reputable magazines, The New Yorker.[1] In the article, a report that the FBI is investigating charges of human trafficking at the International Base of Scientology in Hemet, CA spun off into its own viral wave on the Internet.[2] Charges that Miscavige ordered the use of substantial Sea Org labor to cater to Tom Cruise’s personal, material affairs (such as the creation of a ultra luxury limousine) unleashed yet a third wave.[3]

When Church spokesman Tommy Davis attempted to minimize the private benefit to Cruise from the work of nonprofit, tax-exempt employees, the whistleblowers immediately published photographs and an eyewitness account rebutting the denials.[4]

And so the beat goes on.

These are the real world consequences to the continuation of an attempt to shift responsibility. The Miscavige administration needs to stop blaming the whistleblowers and get in front of the story, or risk government intervention from either the FBI or the IRS. Seizure of assets and revocation of tax exempt status are two of the legal sledge hammers these agencies wield. Not to mention the PR of the Church of Scientology, and of its members, suffers every time the Miscavige administration fails to admit any wrong and attempts to blame others.

Corporate Corruption Graveyard

The whistleblower became the bane of corrupt corporations, which at first attacked them unmercifully, branding them as disgruntled employees and liars, and unleashed upon them private investigators to uncover every personal flaw of the whistleblower, which the corporations then flaunted as proof of their low characters and why their allegations should be ignored.

That worked, to a certain extent… until the whistleblower weathered the storm and got in front of a jury. And then it backfired horrifically. The financial and PR consequences of the corporations’ attempts to cover up their wrong doing, by attacking their whistleblowers, was catastrophic. Many large defense contractors went out of business in the late 1980s and 1990s. And more recently, a wave of corporate scandals resulted in extensive litigation and the demise of once-powerful corporate brands. Among the more prominent of this wave were Enron, Arthur Andersen, Tyco International, Adelphia, Worldcom, Global Crossing, Martha Stewart Living Omnimedia, and HealthSouth.

This latest wave of scandals prompted Congress to pass the Sarbanes-Oxley Act, which toughened the penalties for abuses against whistleblowers and for destruction of documents, which apply to all corporations, even nonprofit religious corporations, among other features which apply only to publicly-held, private corporations.[7]

Corporate America eventually learned to discard the “deny everything, attack the whistleblower” strategy, and developed a protocol for whistleblower claims of corruption, which is basically this:

● Don’t attack the whistleblowers;

● Immediately launch an internal investigation headed by reputable professionals and persons who are neither implicated in the wrongdoing or subordinate to those who are;

● Announce the results of the investigation;

● Publicly discipline those responsible for wrongdoing; and

● Put in place and publicly announce internal mechanisms to prevent the recurrence of unethical behavior.

Not surprisingly, this protocol parallels the Danger Formula developed by LRH.

Conducting an independent, internal investigation of matters under scrutiny by the government is a key component of any response strategy, and can even head off investigations or satisfy a court that harsh penalties, such as seizure of assets or revocation of tax-exempt status, are not warranted.

Imagine for a moment how different the current situation would have gone if, rather than attacking Marty Rathbun after the publishing of The Truth Rundown [8], the boards of CST had announced an internal investigation into the charges headed by highly reputable professionals completely independent of David Miscavige.

Ultimately, creating an ethical culture comes down to company leadership and its ability to convey, through their actions and examples, the right way to do things. Second comes “controls” —a system of checks and balances that safeguards the integrity, not only of financial and operating data, but of employee behavior at all levels. All intra and extra-company dealings have to be guided by ethically-driven protocols. Third, ethical abuses must have tangible “consequences.” People must be held “accountable” for their behavior.

These elements were also recognized by LRH, who created a system of checks and balances to go into effect and safeguard Scientology after his death. See: LRH Intent. He also set up an ethics and justice system to guide executives and staff and hold each and everyone accountable for their behavior. The system includes a Watchdog Committee (no longer functioning), and International Execcutive Strata (gone), and a convening authority for worldwide matters, ED International (banished to “the Hole” at Int Base, according to multiple eyewitness reports from people who were in a position to know). See: Existing Scene.

Miscavige is accountable to no one within the organization. LRH’s system of checks and balances was never implemented. CST has been relegated to a lower-level echelon, its general directors and trustees appointed by Miscavige, its officers also selected and run by Miscavige.

At the top of Scientology’s governing structure, there is no first line of defense.

According to a leading law firm that specializes in corporate corruption, the seven signs of ethical collapse are (paraphrased):

• Pressure to maintain production statistics

• Fear to speak up

• Young, impressionable staff & a bigger than life CEO

• A weak board

• Cultures of conflicts of interest & mutual benefit

• Innovation like no other – an arrogant law of success

• Goodness in some areas atones for evil in others. [9]

Scientologists will immediately recognize the pressure for statistics, and the bigger than life CEO surrounded by young staff. They may also see in Miscavige the arrogant law of success (tax exempt status obtained, best friend Tom Cruise, grand buildings, a billion dollar IAS fund, and LRH materials released in high quality CDs and books). Certainly, goodness abounds in some areas. People are still being introduced to LRH technology and gaining states of spiritual awareness not previously dreamed of.

Those who have bravely (why should bravery be required?) put on their Keeping Scientology Working (KSW) hats and informed themselves, through this website and others, will also recognize in allegations leveled by sources who were in a position to know, that fear and silence exist at the highest levels; not just weak boards but non-existent ones, mere rubber stamps for Miscavige’s will; and a culture of conflicts of interest & mutual benefit – although quite limited in scope to Miscavige, his lawyers (including the Special Directors of CST), and Tom Cruise.

(By the way, a statement attributed to David Miscavige by Batangas Today [10], attempts to justify the use of Sea Org labor to benefit Tom Cruise because Tom has given so much to Scientology. If true, Miscavige doesn’t get it. It is because Tom has given so much that he is, under IRS regulations, a “disqualified person” who is not entitled to receive private benefit. Special rules exist that are designed to prevent disqualified persons from receiving private benefits from tax-exempt organizations, which are supposed to operate solely for public benefit.[11] We will elaborate on this in an upcoming article covering the risk of revocation of tax-exempt status.)

“What is the R [Reality] of another or others? This involves SURVEYS.” [12]

The alleged physical and mental abuses of its members by a Church – or by any organization – violates public Reality. Whether the beatings occurred by the leader or his top lieutenants is really beside the point since it happened under the leader’s watch.

Under similar situations, many corporations would immediately replace the top executive regardless of who did the beatings. To continue to operate as if nothing was done wrong by the administration and its top staff continues to invite more attacks and causes greater loss of credibility, until at last there will be complete public abandonment, governmental intervention, and a large, splintered field.

In our opinion, a survey of the general public will reveal that its “Reality” is that Mr. Miscavige is responsible for the beatings; that he rules by intimidation and domination, which we know are traits, not of a good leader, but of a person at tone 1.5 (anger) on the tone scale. If this is the case, then to further blame and castigate the whistleblowers, calling them liars and apostates (a false label in most cases), will only serve to worsen our PR image and credibility, driving away all but the most ardent and invested supporters, and ultimately will force governmental intervention.

One should “NEVER USE LIES IN PR,” according to LRH policy. “All the lies will dead end some day.” (Emphasis in original; PR Series 2).

Only a meaningful internal, independent investigation can enable the Church to get in front of the story and begin to rehabilitate its image and restore its credibility.

This can likely only occur with the implementation of LRH’s intention for the change in governance of Scientology after his departure – a change from one-man rule to a three corporation system, with seven boards. This system expresses the checks and balances envisioned by LRH. The checks and balances would be effected by fully hatted, independent board members who are not subject to domination, interference, threat or duress by any person. We would thereby have fully functioning boards, as LRH mandated, and all executives would be subject to and held accountable by LRH ethics and justice policies, with no one being above policy or correction.
_____________________________

[1] http://www.newyorker.com/reporting/2011/02/14/110214fa_fact_wright

[2] See, e.g.: http://gawker.com/#!5753356/the-fbi-is-investigating-scientology-for-human-trafficking;
http://www.dailymail.co.uk/news/article-1354449/Scientologists-outraged-defectors-claims-human-trafficking-enslavement.html;
http://www.telegraph.co.uk/news/newstopics/religion/8309698/Church-of-Scientology-investigated-by-FBI.html

[3] See, e.g.: http://gawker.com/#!5757217;
http://www.huffingtonpost.com/2011/02/08/tom-cruise-scientology-under-fbi-investigation_n_820250.html

[4] http://markrathbun.files.wordpress.com/2011/02/bikeshangarexcursion.pdf

[5] http://www.dallasnews.com/business/columnists/will-deener/20100321-Whistle-blowers-find-more-corporate-fraud-7567.ece

[6] 31 U.S.C. Section 3730

[7] http://apps.americanbar.org/legalservices/probono/nonprofits_sarbanes_oxley.html

[8] http://www.tampabay.com/specials/2009/reports/project/

[9] http://firmseek.dreamhosters.com/fowler/LaffertyNARA2009.pdf, page 44

[10] http://www.batangastoday.com/tom-cruise-and-church-of-scientology-in-fbi-probe-as-paul-haggis-reveals-%E2%80%9Csecrets%E2%80%9D/9781/

[11] For a layman’s explanation, see:
http://nonprofitmanagement.suite101.com/article.cfm/excess_benefit_transactions
For a legal definition, see ¶ 332.2 at:
http://federaltaxissues.com/0300_private/0330_private_excess.php

[12] PR Series 5, PR DEFINITION.

[13] PR Series 2, THE MISSING INGREDIENT.