Home arrow Management arrow DECLARATION OF LAWRENCE H. BRENNAN  
Saturday, 22 December 2012

17. In summation, religious cloaking was constantly pushed within organized scientology by Hubbard by its legal and PR departments and later by Miscavige to gain undeserved legal and PR advantages, to make more money, to use as a cover when abusing staff, public and even non scientologists, to hide behind when attacked by others and to use to discredit and attack others. Normal staff and public scientologists know little to nothing about the lies behind the religious cloaking. They were constantly deceived by Hubbard and then Miscavige as well as was the broad public. Most scientologists have no idea that the only real reason organized scientology promotes itself as a religion are the above points.


18. In two legal declarations Miscavige made in the 1990s under penalty of perjury (listed above) he made many statements that were either outright lies or that were misleading. These will be covered in complete detail in a separate declaration to be written shortly just on the subject of perjuries by Miscavige. For the purposes of this next section of this declaration, it should be noted that in those declarations Miscavige’s lies of substantial legal significance include the following subject areas:

(i) that Miscavige was not involved in the corporate reorganization of 19811983;

(ii) that Hubbard was not involved in that reorganization;

(iii) that Miscavige did not run organized scientology when he was in Author Services Inc (“ASI”) between 1982 and 1986;

(iv) that Hubbard did not order extensively into organized scientology in the period 19811983;

(v) that Hubbard did not oversee and order into the Guardians Office;

(vi) that the reorganization of organized scientology was not to hide assets from potential litigants or governments nor to protect those secretly running organized scientology.

19. In this and later declarations what will be shown is that the above and many other statements from Miscavige are false and were used to cover up the control of and making money from organized scientology. Here is but one example of many showing perjury by Miscavige. This is from a declaration that David Miscavige made on 15 October 1999 in the case of Wollersheim vs. the Church of Scientology of California. It is part 57 of that declaration:

"57. Upon the dismantling of the GO, church executives within the ecclesiastical hierarchy assumed responsibility for the legal affairs which the GO had mishandled. This era was marked by great concerns about the religion's future in the aftermath of the GO, and it was against this backdrop that newly assigned personnel began to examine the legal affairs that had been the exclusive province of the GO for 15 years. Not being experienced in such matters, they retained legal counsel to review the structure of the entire religion. I know the concern was not "gutting CSC" to " avoid Wollersheim," or anybody else for that matter. The history that Wollersheim ignores concerned events of far greater importance than his case. In fact, at the time, I had never even heard of the man.

I was not involved in that restructuring, but I am aware of the events that led up to it. I shortly thereafter resigned from church staff for 5 years, as described later in this declaration".

While I quoted the whole section above, the main part I am referring to is the next to the last sentence:

"I was not involved in that restructuring, but I am aware of the events that led up to it".

As we can see in Miscavige's own words, he was NOT involved in the corporate restructuring.

Now look at the following link from one of their own web pages about Miscavige:


The sentences on that page I refer you to are:

"Mr. David Miscavige has worked tirelessly to protect the religion. He authored the early 1980's reorganization of Church corporate and management structures which have given the religion years of sustained growth and stable leadership".

Additionally, as covered below, Miscavige was the very person I had to take that corporate planning to for approval in late 1981. He was the final approval point. Both of the above statements from or about Miscavige are false. He was involved in the reorganization and he did not “author” it.
Other pieces of just that section 57 quoted above are also blatantly false which will be covered by the separate declaration just listing Miscavige’s perjuries as well as yet another separate declaration to go into many more details concerning lies and frauds behind the corporate reorganization.

20. Key reasons behind the corporate reorganization of organized scientology that started in 1981 included that there were real problems because Hubbard really was the one controlling organized scientology and there was a great deal of money funneled to him for his private benefit for which there was no really defensible legal significance.

Additionally, a large part of the organized scientology’s "eggs" were in fact in the Church of Scientology of California’s “CSC” corporate basket (Flag, Advanced Organization of Los Angeles, American Saint Hill Organization, Los Angeles Organization, San Francisco Organization, United States Guardians Office and really all of top management, including CMO). On top of all that, there was no real corporate integrity throughout organized scientology, the GO had undated resignations of all corporate officers and board members of all church corporations throughout the world and most local staffs who were legally in such positions didn't even know it. Couple this with the facts that the IRS was breathing down CSC's corporate neck and there were many damages cases looming and you have a legal mess.
The real problems had little to do with corporate organization. The real and potential legal problems facing organized scientology then and throughout their history had to do with the constant lies, fraud and abusive policies followed by organized scientology. Instead of dealing with abusive or even illegal policies by Hubbard, which was not considered an option, corporate evolutions and religious cloaking were used to cover up such things.

21. The "corporate sort out" was done in late 1981 and 1982, with various other pieces following that. Millions was spent to cover all legal issues and get it “right” and "defensible". The net result included the following:

(i) Church of Scientology International (CSI) comes out as the new "mother church" and all churches of scientology sign agreements acknowledging same. What is supposed to be "top management" is put in CSI. This ends up including CMO Int/WDC, the Executive Director Int's (“ED Int) Office and OSA;

(ii) The organizations that were once the big revenue producing arms of CSC (Flag, AOLA, ASHO, LA Org and San Francisco Org) become separate corporations. They, like other “church” organizations, are managed by CSI;

(iii) SMI exists and licenses missions and SMI is managed out of CSI;

(iv) WISE exists and gets involved in various businesses run by scientologists and WISE is managed out of CSI;

(v) RTC is created as what is supposed to be a "non management body" to see to the proper usage of all the trademarks and service marks. It hold various rights to the usage of the trade/service marks and, through it, all orgs (including CSI) are licensed to use them;

(vi) Church of Spiritual Technology (“CST”) gets created to eventually receive most of Hubbard's fortune, the rights to his copyrights, etc and will work on the "preservation" of the tech. Very important is that CST, for $100, can take all rights to the trademarks and service marks from RTC should they ever be at risk in RTC. If needed, CST could then license the churches itself or create and license another body like RTC;

(vii) ASI (Author Services Inc.) is setup allegedly to manage Hubbard fiction works and otherwise his copyrighted works as a for profit corporation. It is to take all that out of the “church” corporately. It is supposed to have nothing to do with the management of the “church”;

(viii) The Publications organizations (Bridge Publications in the USA and New Era Publications in Denmark) then deal mostly with the manufacture and distribution of Hubbard's works related to dianetics and scientology. They have royalty contracts with Hubbard. Later, both organizations are owned by a non profit "trust";

(ix) many trusts are established, more come later, to receive monies from various organizations of scientology. They are set up as non profit. (For example, a films trust is set up to receive a portion of each “church's” revenues weekly "in exchange for" the "churches” being allowed to show the films to their staffs and public);

(x) old "problem" entities are eventually gotten rid of Religious Research Foundation (“RRF”), Operation Transport Corp (OTC”), CSC, etc.. For example, the last of the monies in OTC that did not end up inuring to Hubbard's benefit were transferred to a "non profit" trust, CSC is let to die a financial death as all its assets were stripped out of it;

(xi) International Association of Scientologists (“IAS”) later gets setup to get millions directly from any scientology public that hope to be able to do services again in churches;

(xii) additional little fancy legal steps are taken later to further spread out the money into various trusts and a company is setup in the UK that is staffed by Sea Org members to help "manage" the reserves of individual churches. What was once basically CSC with all the legal problems mentioned above is now many of those things above. What were both CSC's and hidden funds before in entities like RRF and OTC are now neatly spread out around the world in various trusts and such. What was legally confusing before (the legal status and control of the publications orgs, non US public monies to Flag, the licensing of trademarks, the legal "distinctions" between Hubbard's and the “church's” interests, etc.) are now considered more clarified and "defensible".

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