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

22. For some of us that worked on the corporate reorganization, this evolution was supposed to be a new legal beginning where things could be legally clear, Hubbard's and organized scientology’s interests separated and legally defensible and organized scientology itself having a legal structure that no one could topple. And it would be a "new era" in that management would go in to actually mirror the corporate structure. By that I mean, it was thought that things like the following would really happen:

(i) CSI, through the likes of CMO Int and the ED Int's office would manage scientology organizations, missions and the like;

(ii) a body would exist that is truly not management called "RTC" and it would simply focus on the "pureness" of the technology covered by the trademarks;

(iii) money could go to Hubbard, not by cover up and lies, but actually via legally defensible channels, such as marketbased royalties, that could be shown to the likes of the IRS;

(iv) ASI would truly be an organization that does what it says it does, which is make money on Hubbard’s fiction works, etc. It would be separate from the “church” and not in any way be involved in the management of the “church”.

23. These four steps are what the public was told happened by Miscavige and organized scientology. But this is not what really happened. Examples:

(i) In 1982 alone, with the GO now out of the way, Miscavige sees that over $40 million is funneled to Hubbard from his position in ASI. There is no longer any kind of "check and balance" to any degree within organized scientology. The GO is gone and Miscavige can do whatever he wants. The $40 million is gotten in part using funds obtained through huge abuses on churches, missions, individuals, etc. Here is a quote from a small section of an affidavit filed by Hana Whitfield in the Church of Scientology International vs. Steven Fishman and Uwe Geertz case in 1994 that addresses this matter:

"44f. What is also not seen in Exhibits 23, 24 and 25, is that the Mission Holder Conference was held in order to perpetrate an enormous financial fraud and scam on CSI and individual Mission Holders, and was done with the full knowledge and participation of Miscavige, others present as well as Hubbard as follows:

(1) Through massive intimidation and coercion ("Fair Game"), the wealthy and independent Mission Holders were forced to pay huge sums of money through CSI to ASI;

(2) ASI funneled the money through a Liberian shell corporation, Religious Research Foundation, and through Canada, into Hubbard's private bank accounts in Luxembourg and Lichtenstein;

(3) During only part of 1982, over forty million dollars from the nonprofit CSI was funneled through the for profit ASI into Hubbard's personal bank accounts, attached hereto as Exhibit 26, according to trial testimony of Homer Schomer in JULIE CHRISTOFFERSON TITCHBOURNE vs. CHURCH OF SCIENTOLOGY, et al., pages 3609, 3611, 36143620, 36293630".

(ii). The corporate integrity that was made to appear real in all that structure mentioned earlier, was completely untrue, despite repeated statements to the contrary by Miscavige in courts in the 90s, under penalty of perjury. While he was in ASI legally, he ran CSI and RTC with an iron fist and through his control of CMO Int, RTC and Special Unit ran the church completely. Because of Miscavige the corporate integrity was now, after the millions of dollars spent on the "corporate sort out" WORSE than when the GO basically ran it. Miscavige had total dictatorial control. ; and

(iii) Starting in late 1981 with the advent of the new corporate structure and Miscavige securing complete control over the organizations, there have been wholesale abuses of scientology staff, public and critics through many means. In 1982 alone, under Miscavige, more people were horribly abused, gang bang sec checked, declared, fair gamed and the like than in any years prior to that time.

The biggest violator of all this has been Miscavige, yet he is the one who has been the “church” spokesperson in courts legally to stress things like how complete the corporate integrity is in organized scientology, how they have reformed from the old GO days and the like. Nothing can be further from the truth.

24. Once the new corporate structure was implemented, Miscavige started demanding money to Hubbard weekly. In courts Miscavige later positioned himself for that time period as having been in ASI representing Hubbard with no control whatsoever over the church corporations such as CSI and RTC. If you follow what Miscavige said in courts you would think that the next two years after the corporate sort out he was somehow "negotiating" with us in CSI on matters that might have to do with funds to Hubbard or anything else. Miscavige says that those in ASI, as they represented Hubbard, were doing some "coordination" with us in CSI with regard suits that might also include Hubbard.

Nothing could be further from the truth. As regards the suits, Miscavige and Norman Starkey fully took over running the CSI area dealing with the suits. This was a CSI department headed by Marty Rathbun who was then "Special Unit Litigation Execution".

ASI gave all the orders on how to handle the suits and what CSI or any other “church” corporations would file or otherwise do with the suits.
25. As far as the money to Hubbard goes, Miscavige also lied in courts when he said the above. The facts are throughout 1982 and into 1983 Miscavige was ordering us in CSI to "legally justify" money to Hubbard regularly. Instead of negotiating on behalf of Hubbard from his position in ASI, Miscavige was ordering the funds be paid regularly and often. Lyman Spurlock in ASI and I in CSI desperately tried weekly to come up with legal significances that were justifiable to cover the monies that Miscavige ordered be sent to Hubbard. We tried to query the orders but Miscavige responded that they had to be "made legal" and that the funds were going whether we made them legal or not and threatened non compliance with strangulation and worse.

26. Miscavige’s alleged "non involvement" in “church” management when he was in ASI and just "coordinating" and "negotiating" with the “church” included such things as ordering who would run RTC, who would run the key parts of CSI (WDC/CMO Int for example) and then running those people himself and deciding who of them got removed from post. In later 1982/early 1983 this included Miscavige spitting on top “church” WDC/CMO Int executives, punching at least one in the mouth hard, slapping at least one across the face hard and choking at least one top executive hard. Again, this was in the time period Miscavige says in court he was in ASI and not involved in running organized scientology.

27. Throughout his declarations, Miscavige positions Hubbard as some how a wonderful person betrayed by the GO. Hubbard, according to Miscavige, was not involved in GO activities and was off the lines during major corporate sort outs.

The facts are very different. Hubbard was deeply involved in all major GO legal actions involving corporate throughout the history of the GO. Not only that, but many horrible abuses some in the GO carried out were under Hubbard's orders. Not only that, but the "damages cases" and other such cases that the GO was mired into defending where not just from things of their own doing. They were trying to defend against real damages in fact caused, not just by the GO, but rather by the standard application of abusive Hubbard policies found throughout organized scientology. The GO did many bad things and some in there committed crimes and deserved to go to jail. But the insane policies of Hubbard relating to such things as "fair game", "disconnection", the RPF, penalties, hard selling, etc., etc. were in fact behind many legitimate governmental and private civil actions against the "church". Hubbard was creating many of the main legal problems, not the GO.

28. A few examples from just my personal experience of direct Hubbard orders and involvement in major organized scientology corporate matters include:

(i) the establishment if SMI for money making reasons as covered earlier in the religious cloaking section;

(ii) Hubbard being the one behind the mid 70s "Greater Churches of Scientology" plan that GO US was following to set up backup corporations for each "church" corporation in the mid 70s. This was so new corporations were ready to start in the event the IRS seized all assets of church corporations in the US via jeopardy assessment. Hubbard wrote then that the real assets of any organization were its staff and contacts and not the cash, buildings, etc. so he instructed the GO to get ready with backup corporations that could be funded from financial sources outside of the IRS's reach if needed

(iii) Publicly available documents seized in the FBI raids on "the church" showed Deputy Guardian USGO's telexes to Hubbard where Hubbard's approval was being gotten on funds to use to purchase the Fort Harrison Hotel in Clearwater. CSC (Church of Scientology of California) funds could be used and they would secretly go though a phony front corporation called "Southern Land Development and Leasing Corporation" (SLDLC). Hubbard was not only behind this but his approval was needed on anything major that the GO did involving this. I myself was on the first "SLDLC" mission in Savannah, Georgia where I and a "Commodore Staff Aide" were checking out the Savannah Country Club as a possible location for Flag when the ship came ashore. When that was given up as not practical, Florida was chosen and Hubbard himself had to approve it being Clearwater;

(iv) As covered earlier Hubbard was controlling the legal aspects of Flag moving to Clearwater including ordering me about the Consumer Certificate of Exemption and my legal rudiments program for Flag.

(v) Hubbard's were the orders I had to follow to set up the first World Institute of Scientology Enterprises “WISE” corporation in Liechtenstein (which we didn't use as Hubbard did not like the "Limited" in the name as he said that killed the PR for WISE). Hubbard was very much involved in the setting up of WISE; including how to make millions of dollars from it by controlling businesses run by scientologists.

(vi) Contrary to testimony by Miscavige I had Hubbard's own orders on MCCS where he pushed them to come up with legal solutions to mask his control of the organizations of scientology and gave his own instructions on how to brief the attorneys;

(vii) Hubbard's own orders were used for the actual corporate sort out missions that put in such things as CSI, broke up CSC, etc.;

(viii) Hubbard’s orders were the ones followed when the GO held undated resignations for all board members of the legal organizations of organized scientology. That was done during the years of the GO as well as later where Miscavige ordered the use of undated resignations to remove people from whom he was taking power. This included Bill Franks as ED International;

(ix) also contrary to Miscavige’s sworn declarations, Hubbard continued to order top organized scientology executives, including myself, well into 1983 about legal matters, hiding his controls and more.

29. Miscavige did control organized scientology and run it as covered above. Part of the reason that so much about "the 1981/82 takeover" by Miscavige was hard to pin down on exact orders and time lines is that so much was hidden about it all to mask Hubbard's and Miscavige’s real control of it. There was a "secret" body of people directly run by Hubbard. The unit was referred to as an "All Clear Unit" (to make things "all clear" for Hubbard to come out of hiding) and Miscavige was part of that unit.
In 1981 Miscavige took sole control of that unit. By mid 1981 Miscavige had managed to remove MarySue Hubbard and "take over the GO". He also took over running CMO International secretly by being able to order the heads of it.

30. This "All Clear Unit" by later 1981 was broken down into two "groups" both 100% controlled by Hubbard and, through his contacts with Hubbard, Miscavige: "Special Project" and "Special Unit". Special Project went on to become ASI and Miscavige positioned himself as legally running just ASI .Throughout the time Miscavige was "in ASI" he ran scientology operations through several contacts in CMO Int/WDC, RTC and Special Unit.

31. There are many examples that show how the entire corporate evolution of 1981 on was a cover up of what is really a centrally run and controlled international organization hidden behind many corporate veils. Although the paperwork would make it appear otherwise, Miscavige’s statement in one of his declarations that “Corporate boundaries and responsibilities are distinct and firm” is completely false. Just a few examples of this, just from the period of mid 1981 up until early 1984 include:

(i) I personally witnessed and/or was the recipient of direct orders from Miscavige to both the most senior members of RTC and CSI. These were repeated and ongoing. This included the period when he was in ASI;

(ii) There were no actual board meetings or board level decisions made by board members of either RTC or CSI in that time period. Major decisions were made by Miscavige or were based on orders from Hubbard himself as relayed by Miscavige;

(iii) This included at the very least the removal of senior corporate executives of CSI (Bill Franks and Gordon Cook) by order of Miscavige, in part using undated resignations that he insisted we keep for all those who held corporate authority in any major Scientology related companies. This was just one of many practices of the old Guardian’s Office that Miscavige kept in place;

(iv) Miscavige gave each major CSI and RTC executive (WDC level in CSI and Inspector General of RTC) weekly orders from Hubbard and insisted that we comply to same weekly. Each week we would write a report to Hubbard about our sectors of “church” management and in a few days would get his reply with his orders. I personally wrote weekly reports to Hubbard and got and complied to his orders while I was WDC X. Miscavige knew of these as he secretly ran the reports and orders back and forth to Pat Broeker pretty much weekly;

(v) During the time that Miscavige was “Chairman of the Board” of ASI, not only did I see him ordering CSI and RTC executives but I have personally witnessed him at the California desert headquarters punch, choke and slap hard on the face three senior CSI staff members, including the then WDC SMI for what Miscavige considered non compliance to his or Hubbard’s orders;

(vi) When I was in Special Unit (CSI) “in charge” of “church” corporate, Miscavige weekly ordered huge sums of money be transferred to Hubbard and demanded that we weekly come up with legal justifications for same. Once I was sent to Sante Fe, New Mexico where attorney Elwood Rickless from London was on vacation as we had to work out a legal justification for more money to Hubbard that very week. Miscavige, from ASI, threatened to strangle me if we did not work it out. This is just one example but weekly I had to get together with Lyman Spurlock from ASI and we both would be frustrated at how we were going to have to keep coming up with legal justifications to meet Miscavige’s demands for money to Hubbard that week. We were ordered by Miscavige that the money was to be sent and he would have us busted if it were not. And, again, I was a WDC member in CSI at the time;

(vii) When I was in CSI, I was ordered by Miscavige through Lyman Spurlock at ASI to go to the New Era Publications Organization in Denmark and get them to sign the new publishing agreement with Hubbard that, amongst other things included the royalties he was to be paid. I did this and can attest that the corporate integrity was so bad that they did not even get the read the contract much less negotiate it. ASI did not negotiate on behalf of Hubbard with the royalty paying publications organizations. Rather ASI, as run by Miscavige, was the conduit to relay Hubbard’s orders and demands to those organizations. And, those organizations were in turn controlled by the Sea Organization which in turn was controlled by Miscavige;

(viii) When we incorporated CSI and then decided on the official date it would “start” as the “Mother Church”, a date I myself picked to coincide with a convenient weekly stat reporting time, we had staff students from other areas who were at Flag for training fly to all “Churches of Scientology” and get them to sign the contract recognizing CSI as the new Mother Church. The local churches had no say in it whatsoever. Many of them did not even know who their board members were as they never met nor managed anything as a board. Instead they took their orders from whoever was in command of the Sea Organization. I did the legal paperwork at what we called the “Los Angeles Command Center” and sent them to the Command Center in Clearwater. That was run by Mike Rinder and a few others. They then implemented whatever we sent them, including getting the students off of course and sending them to the local “churches” so that all signatures could be gotten that week. The entire thing was orchestrated by us in the Sea Org, under Miscavige’s direction and there was ABSOLUTELY no local corporate control, negotiation or the like occurring;

(ix) Another example of the interaction between the Los Angeles and Florida corporate sort out “Command Centers” worked was it was us that worked out who in Florida would remain part of CSC, who would be part of CSI and who would be part of the new FSO corporation. Rinder and those on his team in Florida would tell us what staff were doing what jobs and we in the LA Command Center would tell them what corporation to put each area under. It was 100% up to us, the Sea Org Missionaires as to who went where corporately and how we controlled it all;

(x) Even prior to that, I believe in early 1981, while I was still in GOWW, I had to fly to California to meet with “Special Project” (that became ASI) and was told we had to work out how to get more money to Hubbard. There was an initial company called “B13”, a name gotten from a local DK address involving attorney Jakob Arrevard (spelling?) which could have been used to secretly funnel money to Hubbard. When I got there I met Ron Pook, was told Miscavige was in charge and they were considering whether or not to try to keep “Scientology” non profit and qualifying for tax exemption as it was getting too difficult to funnel money to Hubbard and keep the “church” exempt. It was decided that Hubbard said the Church had to be tax exempt so things would just have to be done covertly and kept hidden.


32. Religious cloaking was intentionally used to help organized scientology make money and to avoid compliance with a myriad of laws that would otherwise apply if it was not so considered. The use of scholars to say scientology was a religion or organized scientology was a religious organization was carefully planned and executed to forward the cover of the religious cloaking.

33. The entire corporate reorganization of 1981 on was to hide assets from litigants/governments and to protect those secretly running organized scientology from legal liability.

34. Much has been done under Miscavige to hide the truth including the vetting or destruction of files that showed Hubbard and he was in control. This was similar to the mass vetting and removal of files throughout the GO after the FBI raids in the late 1970s to hide the fact that Hubbard was really running the GO. Miscavige constantly ordered coverups of the truth even extending to the killing of a biography on L Ron Hubbard written by Omar Garrison which Miscavige wanted destroyed as it contained embarrassing truths about Hubbard. On orders of Miscavige I and Vaughn Young and three of Hubbard’s attorneys negotiated the rights to this book with Omar Garrison and his attorney. I then brought the book over to Author Services and gave it to Norman Starkey for Miscavige so that it could be killed and never get out. It was entitled: “L. Ron Hubbard, His Life, His Loves and His Letters.

35. Countless abuses have been carried out by Miscavige and the people he controls in OSA after he was able to hide behind those corporate veils and religious cloaking. This includes:

(i) the examples of Miscavige spitting on and beating top organized scientology executives in late 82. There are a number of people who have now gone public telling of Miscavige’s beatings and other abuses of others since I first posted this over a year ago.

This includes Jeff Hawkins, Bruce Hines, Mark Headley, John Peeler and others. These will show a pattern of brutality and control over decades by Miscavige over organized scientology which in turn will show his statements that he did not run organized scientology under penalty of perjury to be false.

(ii) In at least 1982 and 1983 Miscavige also ran a new unit of organized scientology called the Internal Finance Police. Miscavige gave orders for them to carry out many abuses of others to "find and handle" alleged "financial crimes" against Hubbard and scientology. They were the ones at that famous San Francisco mission holders conference (spoken about in the book "A Piece of Blue Sky") who helped Miscavige declare, sec check and/or extort money out of the mission holders. They had a mission to actually get people jailed for "financial crimes" against scientology so that heads could be put on pikes to scare others into toeing the line. It did not even matter if the person was innocent, they just wanted "examples". And a "financial crime" was anything at all that Hubbard/Miscavige considered took money away from organizations of scientology and thus to Hubbard/management as well. Their methods of threats, physical abuse, screaming, "gang bang sec checks" and the like were used against anyone and everyone who Miscavige considered were financially "ripping off scientology organizations or Hubbard". They were often "the enforcers" of so many of the abuses then. The Int Finance Network was really the more visible and darker side of that whole plan to take over everything in scientology by Miscavige. They were for the most part "the face" of what people saw as enforcing "financial policy". But they were controlled and secretly run by Miscavige and his crew. There is video available from one of the main financial police working under Miscavige how Miscavige abused others and how the finance police extorted and committed other crimes against others. His name is Don Larsen. As Special Unit IC I had to many times stop the International Finance Police from wrongfully charging someone in their effort to get heads on a pike for Miscavige.

(iii) others are now speaking out and I believe will be giving evidence of even greater barbarity at the tops of organized scientology as controlled by Miscavige.

36. The true danger lurking behind those corporate veils and hidden behind religious cloaking is organized scientology’s intention to control the legal systems and educational systems of the world, to rid the world of its enemies and it apply its brutal ethics policies to everyone. That is what is in store for the world should the policies of organized scientology be applied throughout the world. It has long been the intention of organized scientology to do the above as it uses its front groups like Narconon, Applied Scholastics, the Way to Happiness Foundation etc. to get inroads into society for organized scientology.

I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.

Executed this [6th] day of May 2008, at Merrimack County, New Hampshire

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