1992
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1992

1992

First groups formed in Philippines, Honduras, Brazil and Ivory Coast. (CofS

C of S is convicted of criminal conduct in Canada. Stealing documents from government files. (Criminal Time Track: Issue III, (13))

1992, early -1994

In early 1992, three additional (non-forged) newgroup messages for the group were posted from the Lockheed Corporation, New York University, and the University of Maine in an attempt to increase the propagation of the newsgroup throughout the Usenet. At first, the newsgroup was mainly a forum used by members of the "Free Zone" (a group founded by ex-Scientologists to promote L. Ron Hubbard's ideas independent of the COS). As time went on, however, critics of both Scientology's doctrines and techniques ("tech") as well as the organization itself came to dominate the discussion on a.r.s, and the Free Zoners formed a separate newsgroup-alt.clearing.technology

Although there were the usual Usenet "flame wars" on a.r.s. between Scientologists, Free Zoners, and critics, there was apparently no coordinated action taken by the COS against its electronic critics until 1994. (Skeptic: Scn vs Internet)

1992, January

January - City officials begin inspecting Hacienda Gardens (a Clearwater apartment complex the church purchased to serve as staff berthing) after receiving reports that too many people are living there. Inpsectors find 34 of around 200 apartments to be overcrowded. 

13 members of Church of Scientology in France are charged with fraud and practicing medicine illegally in Paris. (In 1990, the Lyons branch of the CoS was similarly charged and their bank accounts frozen).

Howard Mintz sues the church in Clearwater for failing to refund $68,764. (Brief History of Scientology in Clearwater)

1992, 15.1.

Associated Press: CofS France - Raid

PARIS (AP) -- Thirty Church of Scientology followers have been taken into custody in a probe into allegations of fraud leveled by former members, police said. Church leaders accused the authorities of persecution.

Boxes of documents were seized in searches of the church's French headquarters and at a cultural center, the sources said on condition of anonymity. The contents of the documents were not divulged. Under French law, suspects must be charged within 48 hours or be freed.

1992, 19.1.

John E. Burke, the assistant commissioner for exempt organizations, agrees to Scientology's demand that its the bulk of its financial details should be kept secret. Ref: New York Times, 9 March 1997 (Timeline of Scientology versus the IRS)

1992, 27.1.

Another former RTC member writes an affidavit that says Miscavige conceives, plans and orders the actions of the church against those whom he considers to be against his personal control over Scientology. He has such church members expelled by false denunciations and then uses GO tactics, such as "Fair Game" against them. This included the formation of vigilante groups to physically attack these people. (Criminal Time Track: Issue III, (24))

1992, 28.1.

Associated Press: TORONTO -- The Church of Scientology said Tuesday that a judge had ordered the return to the group of more than 2 million documents seized nine years ago in a legal battle.

1992, 11.2.

San Francisco Examiner, ap - Neighbors suspicious of Scientology's Steel Vault

PETROLIA, Humboldt County - Assurances that a huge, concrete-clad steel vault was constructed to store the writings of Church of Scientology founder L. Ron Hubbard hasn't calmed speculation among neighbors.

The pipe-shaped vault buried on 3,600 acres of grazing land is as wide and high as the cabin of a Boeing 747, but more than 140 feet longer than one of the jumbo jets, the Santa Rosa Press Democrat reported.

Nearly completed, the vault was designed to last 1,000 years and withstand any act short of a direct hit by a nuclear bomb. People who have seen it say all that's visible is one exposed end and a ventilation tower poking above the ground like the periscope on a submarine.

At first there was talk that the Scientologists would cryogenically preserve corpses of church members, perhaps even the corpse of Hubbard himself, until they are re-entered by eternal souls - what Scientologists call "thetans." But the people responsible for the vault have said such talk is ridiculous and, anyway, Hubbard's body was cremated following his death in 1986 at age 74.

Beyond the denials, Scientology literature says "thetans" are believed to inhabit the bodies of new born babies, not of dead bodies.

Humboldt County officials said they are fully satisfied the vault will be used exactly as the owners have told them it will be used.

1992, 16.3.

LA Daily News - Crypt for Hubbard's Works - Wildermuth, John

Scientologists build crypt for Hubbard's works A huge underground vault, 25 feet wide and longer than a football field, has been sunk outside this tiny ranching community as an impregnable 1,000- year preserve for the writings of L. Ron Hubbard, founder of the Church of Scientology.

The secretive $7 million project, which received final approval from county building inspectors earlier this month, took more than 1-1/2 years to complete.

Nearby are a remodeled bunkhouse and a luxurious custom-built home that will house the caretakers for the subterranean archives and the 3,600- acre ranch that surrounds it.

The ranch, bunkhouse and adjoining garage together are valued at more than $4 million, according to Humboldt County assessors' records.

''It's an interesting project,'' said Todd Sobolik, the county's chief building inspector. ''The underground archive is really something.'' Apart from construction workers, Sobolik and other local officials are about the only people in Humboldt County who have seen the vault. The Church of Spiritual Technology, the Scientology offshoot that owns the land, has tried to keep a low profile while construction moved along.

''I've tried to tell (church leaders) that they should be more open and let the press in to look at the archives,'' said county Supervisor Stan Dixon, who represents the Petrolia area. ''But they're not interested.'' There is no easy way to get to Petrolia, which was named in anticipation of a 19th century oil boom that never came. From Ferndale, a few miles west of Highway 101, it is 20 miles over two-lane Mattole Road, which winds over the coastal hills and drops down to within ocean-spray distance of the Pacific before heading back inland.

The Church of Spiritual Technology began buying land near Petrolia in 1980, but most of its property is well off the main highway and can be reached only byprivate roads blocked by locked gates and ''No Trespassing'' signs. Countyrecords show that the vault was built by a New Mexico company that specializesin underground construction. Beginning in September 1990, construction crewsripped the top off a knoll and dug a trench nearly 40 feet deep to house the vault.

The vault itself is a steel cylinder 375 feet long cloaked in layers of concrete and designed to withstand anything from a natural disaster to a nuclear attack. The archive's interior is split into two floors, providing 12,669 square feet.

Much of that space will be filled with racks of sealed titanium time capsules that will hold the books and tapes to be preserved. When construction was completed, the vault was covered with 14 feet of dirt, which was reseeded and landscaped to look like just another part of grassy cattle range. The only evidence of the underground archive is a ventilation tower that pokes above ground and the ground-level entrance at the west end of the vault, where steel bulkhead doors 18 inches thick seal the facility from the outside.

The size of the project and the general air of secrecy that surrounded it has led to all sorts of rumors during the past two years, said Elizabeth McHarry, editor of the weekly Ferndale Enterprise.

''At first people were saying that they were going to put frozen bodies in the vault, but that talk has pretty much died down,'' she said.

The county Planning Department received its share of complaints. One intradepartmental note asks a planner to talk with a woman who ''suspects the facility will be used for 1) cryogenics; 2) arms smuggling; 3) drug smuggling; or 4) all of the above.''

But even some of Scientology's harshest critics believe the Petrolia vault and two others like it in remote areas near the San Bernardino Mountains in Southern California and Las Vegas, N.M., probably are exactly what they purport to be.

''The vaults may well be designed to preserve L. Ron Hubbard's writings,'' said Cynthia Kisser of the Cult Awareness Network in Chicago, a group that is locked in a number of legal battles with the Church of Scientology. ''That's what's important to (Scientologists).''

1992, April

April -- Scientology is again cited for overcrowding at Hacienda Gardens. (Brief History of Scientology in Clearwater)

1992, May 

The Children’s Communication Course released.

The release of twenty-three Technical Specialist Courses that train auditors to be able to handle a wide variety of conditions. (CofS)

1992, June 

How to Use Dianetics Video - A Visual Guidebook to the Human Mind released. (CofS)

1992, 29.6.

The US Claims Court upholds the IRS' longstanding denial of a tax exemption for Scientology's Church of Spiritual Technology. The ruling strongly supports the agency's concerns over the commercial nature of Scientology and other matters. It states that the corporate structure of Scientology was "something of a deceptus visus. Real control is exercised less formally, but more tangibly, through an unincorporated association, the Sea Organization..."

Scientology claims that the ruling has ignored the facts and is filled with "gratuitous comments". Ref: New York Times, 9 March 1997 (Timeline of Scientology versus the IRS)

The United States Claims Court upholds the decision of the IRS Commissioner to deny tax exempt status to the Church of Spiritual Technology. The court finds that CST was founded for the primary purpose of gaining tax exempt status to serve the financial goals of other, non-exempt entities, and that CST’s archiving activities are secondary to its obtaining a tax exemption and would not of themselves qualify CST as a tax exempt organization under I.R.C. @ 501 (c)(3).

The court notes that CST, CSI and RTC all applied for tax exemption at the same time. The IRS requested information about the circumstances surrounding the founding of these three organizations. The IRS specifically asked CST who initiated and oversaw the reorganization of the Scientology hierarchy.

The IRS also enumerated the connections it saw among the three applicants and the existing Scientology hierarchy and asked for comment.

Specifically, the IRS asked for an explanation of the option agreements CST held under LRH ’s gift. CST refused to answer these questions, saying the agreements speak for themselves.

CST represented to the IRS Commissioner in 1985 that it understood its rights to include the following: "In the event it is determined that Religious Technology Center is not exempt, this corporation will exercise its options and acquire the marks and materials…" In its 1987 Supplemental Submission, CST attempted to back away from this interpretation but still conceded if the IRS recognizes CST’s exemption, CST would have the power to acquire RTC’s rights in the marks and Advanced Technology if RTC’s exemption were denied. When its exemption is recognized, CST will receive Mr. Hubbard’ s estate and become owner of the limited powers of appointment over the marks and the Advanced Technology that Mr. Hubbard retained. As owner of these interests, CST will have the legal right to designate the section 501(c)(3) transferee of RTC’s rights in the marks and the Advanced Technology in the event RTC cannot obtain exemption. As a section 501 (c)(3) organization, CST itself would qualify to receive these rights.

The religious trademarks and rights to the Advanced Technology constitute most of the income-producing property owned by any of the Scientology organizations. The remainder of LRH’s income-producing property is already designated for CST. Upon its qualification for tax exempt status, CST could, therefore, obtain, by operation of LRH’s will, all of the rights LRH reserved when he made his gift to RTC, as well as the copyrights to Scientology Scriptures, which presumably constitute the very heart of Scientology.

The copyrights to LRH’s science fiction works will also devolve to CST under the will. This intellectual property alone was valued at $25,000,000 by the Trustee appointed by the court to administer LRH’s estate. 

In these circumstances it is at best disingenuous for CST to maintain that it is "independent" of Scientology’s ecclesiastical hierarchy. LRH certainly succeeded in creating an entity that is not nominally subject to the ecclesiastical control of other Scientology organizations. Rather, the potential control runs in the opposite direction. CST stands poised to assume a position at the apex of a pyramid of both ecclesiastical authority and financial control over Scientology.

Finally, the converse of CST’s control in the area of orthodoxy is that until it obtains tax-exempt status, CST will be as it has been, entirely dependent on payments from other Scientology organizations. Indeed, CST’s Articles of Incorporation specifically state that it does not solicit any funds itself, nor does it have any plans to do so. CST states that it alone controls its financial matters. Possibly this is true with respect to how money is spent once held by CST. It is not true, however, with respect to obtaining the money that it spends. All of this has come from other Scientology organizations. The fact that CST does not raise its own funds is itself unusual for a would-be IRC 501(c)(3) organization, and limits its ability to be independent.

In sum, there is a strong link, in fact an identity of purpose, between CST and other Scientology organizations. CST was created to serve LRH as a personal estate-planning device and to support the work of Scientology. 

CST has assiduously developed a record which demonstrates that most, if not all, of its prior activities are directed at preserving Scripture. CST confuses activity with purpose. The law does not. As the Tax Court has held, "the operational test focuses on the purpose and not on the nature of the  activity." The Commissioner and the court, are permitted to consider not just an organizations activities, but also to inquire into its purposes. The fact that an organization’s activities have religious overtones and do not produce profits is no assurance those activities will be tax exempt. 

The assets of the pour-over trust devolve on CST – namely the right to the books, tapes, films and E-meters, along with the accumulated income therefrom. These are licensed to for-profit entities for distribution, such as BPI. This arrangement simply does not resonate with the image of a tax exempt organization.

The court was asked to find that holding the options and receiving LRH’s estate are merely incidental to its primary archiving purpose. Instead, the court finds that the impetus behind CST was not archiving, charity, or even religious education, but rather was tax planning. Nothing about CST is consistent with its adopted posture as a simple document repository.

First, there is plain linkage between CST and the dissolution of CSC, as well as the difficulties Scientology as a whole was having in 1982 with the IRS. Before the creation of CST, CSC served Scientology as a tax exempt entity. When it became apparent that CSC was likely to lose this status, LRH and the Scientology management restructured both the financial and the ecclesiastical organization of Scientology. CST was created in 1982, during the CSC litigation. It was founded by four non-Scientologist lawyers and Lyman Spurlock, President of CST and former personal employee of LRH, in the wake of CSC’s dissolution.

The court is struck by the centripetal force that will be generated should CST obtain tax exempt status, and should it choose to exercise its option to take over assets from RTC. Armed with the trademarks and publishing rights, and with tax exempt status, CST will be poised in the center of all of Scientology’s financial resources, in position to exert a strong gravitational force on Scientology’s income-producing assets.

CST states that it would never seek to control these assets, or use them in any way inconsistent with the stated religious purposes of Scientology. CST has provided only conclusory statements of its own officers as evidence of CST’s intentions. Moreover, CST has stated on at least one occasion that "it will exercise its options and acquire the marks and materials."

If CST succeeds in its quest for tax exempt status, it will control the trademark and publishing rights to all of LRH’s works. Those rights constitute most of Scientology’s income-producing property. The trademarks and publishing rights are the source of the Advanced Technology from which all income production ultimately flows. Books and tapes must be orthodox. 

Provision of auditing services is impossible without authorized books, tapes and E-Meters. These materials produce money in sufficient quantities to allow CSI to hold millions of surplus dollars in its central reserve account. The potential for abuse of the options and copyrights therefore is considerable. CST would not be obligated to donate the money to other non-profit groups, or even to contribute it to Scientology’s own central reserves. In fact, once CST has built its archiving facilities, its expenses should decline dramatically, but it will still control millions of dollars worth of income-producing assets.

There is a dissonance between the stated, limited purposes of CST on the one hand, with the far reaching implications of the potential financial control over Scientology built into LRH’s tax planning. If the true motivation behind CST were to build an archive, it would have been a simple matter to incorporate an organization and arrange for financing through the central reserves or some other straightforward financing scheme. 

What other possible purpose could there have been for funneling LRH’s estate to an organization with such a nominally limited and innocuous function unless it was the hope that Scientology had achieved the holy grail – an organization with unassailable tax-exempt credentials, yet in control of the income from the myriad sources within Scientology?

This concern is exacerbated by the fact that CST will receive nothing from LRH’s estate if it is not deemed tax exempt. Thus, it appears that despite the stated importance of its archives to the Scientology religion, they were apparently not worth supporting unless they generated a tax exemption. 

Protecting the use of Scientology trademarks and copyrights is also apparently not worth doing if it will not be done by a tax-exempt organization.

The court came to the conclusion that archiving is not CST’s "exclusive" or even chief purpose. The court finds that CST is merely the latest incarnation of the on-going effort of Scientology as a whole to shelter income from taxation.

The court finds the IRS Commissioner’s decision to deny CST tax exempt status was not erroneous and dismisses CST’s complaint. (Criminal Time Track: Issue III, (15))

Note: During the IRS investigation it inquired about Sherman Lenske, Stephen Lenske and Lawrence Keller and their role as CST’s "Special Directors."

1992, July 

Jesse Prince is being held at the Int base known as the Old Gilman House. It is used as an isolation house for physically ill SO members. He wants to leave staff.

Jesse Prince and wife escape from Gilman Hot Springs. Under duress, they are brought back until October of this year. (Criminal Time Track: Issue III, (28))

1992, 13.7.

Library of Congress records show that: CSI copyrights their squirrel version of LRH State of Man Congress lectures. (Criminal Time Track: Issue III, (68))

1992, 25 July 

Celebrity Centre International and the Manor Hotel (formerly the famous Château Elysée, a French Normandie-style hotel in Hollywood) restored and officially opened, now servicing celebrities and professionals from around the world. (CofS)

1992, August 

Sea Org members establish the first church offices in Moscow-OTL Russia. (CofS)

1992, September 

First group formed in Albania. (CofS)

1992, 12 September 

Auditor’s Day-Hubbard British Mark V E-Meter back in production and available for the first time since the late 70s. Manufactured by Golden Era Productions, it resembles the British Mark V exactly. While usable in all auditing up to the state of Clear, its re-release was intended to facilitate the need of student auditors co-auditing up the Bridge and to make such as economical as possible. (CofS)

1992, 10.10.

The Associated Press. Scientologists, long a target of deprogrammers, have gone to court to try to turn the tables, claiming they were illegally barred from joining an anti-cult group. In a flurry of lawsuits filed around the nation, dozens of members of the Church of Scientology said they tried to join the Cult Awareness Network but were rejected because of their church affiliation. Many of the lawsuits were filed last week after a federal grand jury indicted three alleged members of the Cult Awareness Network on charges they conspired to abduct and deprogram an heir to the Du Pont chemical fortune. The Chicago- based network, which has drawn fire from Scientologists, the Unification Church and other groups with its anti-cult efforts, denies any link to the case and said Scientologists are trying to destroy their organization.

1992, 17 October 

Presentation of IAS Freedom Medal to Scientologists John Travolta, Debbie Mace and Jerry Boswell at the annual IAS convention aboard the Freewinds.

The all-new What Is Scientology? (this book) is released at the annual IAS convention aboard the Freewinds. (CofS)

1992, 31.10.

Jesse Prince and wife are allowed to leave the Sea Org after being coerced to sign a release containing untrue statements protecting Scientology from legal liability. The way they forced them to sign was her dad and sister were in Scientology and they were told that they would never see them again unless they signed. Jesse did not even read the papers. He just signed them so they could leave and his wife could still be in communication with her relatives. (Criminal Time Track: Issue III, (28, 76))

The Associated Press: Scientologists-Ruling: LOS ANGELES (AP) -- Church of Scientology members must be allowed to attend a convention held by an organization that claims the church is a cult and is accused of kidnapping its members, a judge has ruled.

1992, 16.11.

APn 11/16 1627, Scotus-Scientology: WASHINGTON (AP) -- The Church of Scientology may continue its court battle to force the government to return documents and tape recordings obtained in a tax-fraud investigation of church founder L. Ron Hubbard, the Supreme Court ruled Monday.

In a unanimous decision, the justices set aside a lower court ruling that had said the issue was moot, because the documents and tapes were already in the possession of the Internal Revenue Service.

 

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