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1998

Heber (Jentzsch), President of CSI, is arrested in France on criminal charges of infiltrating government agencies and stealing documents and tax fraud. (Criminal Time Track: Issue III, (54))

1998, 1.1.

I.R.S Eyes Probe After Disclosure of Confidential Scientology Pact

New York Times
January 1, 1998

By DOUGLAS FRANTZ

The Internal Revenue Service indicated Wednesday that it would open an investigation into the disclosure of the confidential closing agreement that granted tax-exempt status to the Church of Scientology.

Details of the agreement had been kept secret under taxpayer privacy law since it was reached between the tax agency and the church in 1993. But on Tuesday The Wall Street Journal published an article describing the agreement and posted the document on its Internet Web site. The New York Times obtained a copy of the agreement the same day.

Under the agreement, the church paid $12.5 million to the tax agency, created an internal monitoring committee to insure compliance with tax laws and agreed to drop more than 2,000 lawsuits against the tax agency and present and former officials of the agency. 
In exchange, the Internal Revenue Service granted tax-exempt status to the church and provided it with a sweeping tax amnesty. The agreement canceled payroll taxes, penalties and tax liens the agency had said were owed by Scientology-related entities and dropped several audits of church organizations. It also reversed an earlier revenue policy and made payments by Scientologists to the church tax deductible.

In a statement Wednesday, the revenue agency said that closing agreements were confidential taxpayer information and that their unauthorized disclosure violated the revenue code. The agency did not formally announce an investigation, but the statement said disclosure of confidential tax information was investigated by its Office of the Chief Inspector. 

Frank Keith, a spokesman for the revenue service, said the agency would not confirm that the document was genuine. Keith also declined to say whether an inquiry had been started.

But he said the agency would regard the release of confidential taxpayer information as a serious matter and would seek an investigation. The unauthorized disclosure could be a felony, he said. 

A former senior official at the agency, who spoke on condition of anonymity, said that the disclosure would certainly be investigated and that the press statement was a means of signaling the inquiry. (Copyright 1998 The New York Times Company

1998, 1.2.

SP Times front page article quotes Scientology as stating they want "Clearwater known as the first Scientology city in the world." (Brief overview of Scientology's interaction with Clearwater Florida)

1998, March 

Chris Cloutier leaves staff. He was applying KSW on the re-writing of LRH tech and policy. He says he read a directive that grants Ron’s Technical Research and Compilations (RTRC) permission to revise and distribute further technical information as needed. This directive states they have LRH’s permission to do this. The directive is dated after Ron’s death. 

He says OT TRO has been changed. That BTB’s cancelled by LRH have been reactivated and have his name as if he wrote them. The EP of the study drill of confronting a paper has been deleted.

He was declared suppressive by IJC and expelled. (Criminal Time Track: Issue III, (21))

Note: Another travesty of justice. As usual, Ethics expels people who are on-source and apply KSW and protects the suppressive squirrels who are altering the tech. 

1998, April 

In the RTC vs FACTNet case, the church says FACTNet violated 1900 of their copyrights. 

All 1900 issues in the FACTNet case were copyrighted between 83 and 87 and they were not copyrighted earlier. In some instances they do have earlier registrations but the majority of them do not. You can’t find anything from the 50’s, 60’s and 70’s that says this stuff was ever copyrighted or even a notice of registration. Every part of it is in the public domain. 

So DM knew he was committing fraud when he got court orders to raid Erlich because they really did not own the copyrights. 

Scientology offers FACTNet $12 million to settle the case. They are worried that FACTNet will prove they fraudulently obtained the copyrights from Hubbard’s estate. They so want to get out of it that they move to dismiss THEIR OWN trade secret claims in the FACTNet case. They want to ensure no one can prove they don’t own these copyrights and trademarks, and don’t have legal standing to bring the cases. 

Therefore they offer FACTNet 12 million to settle but FACTNet refused their offer. (Criminal Time Track: Issue III, (19))

Note: FACTNet did settle later because they lacked the capital to pursue the case to the end.

1998, May 

US District Court in San Jose, California assessed $75,000 damages against Keith Henson for copyright infringement for posting a Scientology document on the internet. (Criminal Time Track: Issue III, (55))

1998, July 

Jesse Prince, former RTC exec, decides to end his silence about what he knows because he saw others being courageous enough to speak out about their experiences. Therefore he starts letting the public know what he knows about the criminal activities of top level management. (Criminal Time Track: Issue III, (77))

By July, Scientology now owns 30 Clearwater properties. (Brief overview of Scientology's interaction with Clearwater Florida)

1998, Sept.

Dr. David Minkoff settles out of court with Lisa McPherson's estate. (Brief overview of Scientology's interaction with Clearwater Florida)

1998, Sept. - 1999

Virginia McClaughry is back at Flag for another six months check. In the middle of her six-month sec check, she realised the magnitude of the overt that she had committed by backing down on the application of HCOB C/S Series 73RB. It was out KSW and out integrity for her to do so. The auditor then ran the overt to full EP, including FPRD. Virginia had a major win on this of regaining her integrity.

After the session she assigned herself a condition of Liability. She wrote up her Liability formula, stating the amends was that she was going to ensure the application of HCOB C/S Series 73RB to all SOLO NOTS auditors and get the out tech corrected. She routed it to her pc folder.

She then refused to continue the six months sec-check as it was a violation of LRH HCOB C/S Series 73RB to have ever started it in the first place. She had not fit the criteria listed in the HCOB as being in need of a sec check, therefore there was no need to interrupt her progress on the level. And also as evidenced by her SOLO NOTS C/S statement on her arrival that she was moving along well on the level.

She then wrote a comm to the HGC C/S that per HCOB C/S Series 73RB, she should just do her cram, get her materials and go home. And, that she would not return until she was stalled or moving slowly or in need of a cram. She said if this HCOB was not going to applied that she was not going back on the level because it was out tech.

Note: Virginia tried to get this sorted out involving all possible C/S and Command Channels with the result that she was expelled in 1999. From her debrief one can see that none of the involved Execs is really interested in LRH as source.  (Virginia McClaughry: "My Story")

1998, 25.10.

Series of Articles in St. Petersburg Times about David Miscavige, Scientology, Gold, etc.

Title: The Man behind Scientology

"David Miscavige, the seldom-seen leader of the church, comes forth in his first newspaper interview to talk of a more peaceful time for Scientology." 

"After years spent well outside the public’s radar screen, Miscavige says he plans to step forward now and take a central role in trying to end differences with those who still oppose Scientology, the self-improvement “technology” devised by the late L. Ron Hubbard in the early 1950s. In his first-ever newspaper interview, Miscavige told the Times that Clearwater is the scene of “possibly the last long-running conflict” for Scientology. He said he wants to take “big steps” to end hostilities there." (SPTimes: The Man behind Scientology)

1998, 4.11.

The significance of the failure of LRH to place notice of copyright on documents he published before 1978 cannot be understated. 

In the FACTnet case Judge Kane writes a Memorandum Opinion and Order. Once a work enters the public domain, it remains there irrevocably. The 1909 Copyright Act required, inter alia, that the copyright owner of a published document affix proper notice to each publicly distributed copy of the work.

Non compliance with the notice requirement could inject the work into the public domain. 

Indeed the Copyright Act of 1909 contained a very strict notice requirement. A work published without a valid copyright notice was automatically injected into the public domain. 17 U.S.C. SS10, 19 et. Seq. (1909 Act) ; New Era Publications International, APS v. Carol Pub. Group, 904 F.2d 152, 161 (2d Cir.), cert. Denied, 111 S. Ct. 297 (1990).

Here there is now evidence that documents purportedly having copyright notice affixed upon first publication, did not. Further, there is evidence that a number of people knew this, knew the significance of it, and nevertheless set about to hoodwink the Copyright Office and the rest of the world. (Criminal Time Track: Issue III)

1998, 13.11.

Scientology is indicted in Lisa McPherson's case for practicing medicine without a license and abuse of a disabled person. (Brief overview of Scientology's interaction with Clearwater Florida)

1998, December 

Bob Minton is a critic of Scientology’s current criminal top management. Therefore he is subjected to attacks from them. Bob has a friend named Jeff Schmidt who is also subjected to attacks as a way to get at Minton. While Jeff is away on a trip, someone broke into his office and copied every file he had there. This is another piece of evidence that shows that the old Guardian's Office actions of doing B & Es (breaking and entering – an illegal method of gathering information), is still in use today. (Criminal Time Track: Issue III, (52))

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