Gerry Armstrong--"I Declare"

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I DECLARE

A Literary Work Created and Written
by
GERALD ARMSTRONG

I DECLARE
Copyright © 1994 Gerald Armstrong
All Rights Reserved

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I DECLARE

Declaration of Gerald Armstrong

I, Gerald Armstrong, declare:

1. I am a defendant in the case of Church of Scientology International v. Gerald Armstrong,

Michael Walton and The Gerald Armstrong Corporation, Marin Superior Court case no. 157680,

filed July 23, 1993, hereinafter "Armstrong IV." I am making this declaration for all purposes,

including the disposing of the Armstrong IV complaint, which, for literary purposes, is appended

hereto as Exhibit [A].

2. I am a defendant in the case of Church of Scientology International v. Gerald Armstrong

and The Gerald Armstrong Corporation, Los Angeles Superior Court case no. BC 084642,

hereinafter "Armstrong III," filed July 8, 1993. I am a defendant and cross-complainant in the

case of Church of Scientology International v. Gerald Armstrong and The Gerald Armstrong

Corporation, Los Angeles Superior Court, filed February 4, 1992, in Marin Superior Court as

case no. 152229, and transferred March 20, 1992 to Los Angeles Superior Court and given

case no. BC 052395, hereinafter "Armstrong II." I am the defendant and cross-complainant in

the case of Church of Scientology of California and Mary Sue Hubbard v. Gerald Armstrong,

Los Angeles Superior Court case no. C 420153, hereinafter " Armstrong I," filed August 2, 1982.

3. I am a writer, artist and philosopher. I am the founder of and present majority shareholder

in The Gerald Armstrong Corporation, hereinafter "TGAC," also named as a defendant in

Armstrong II, III and IV. I am the sole office support of attorney Ford Greene in San Anselmo,

California. Mr. Greene represents me in Armstrong IV, and, along with attorney Paul Morantz

of Pacific Palisades, California, in I, II and III.

4. I was involved inside the Scientology organization, hereinafter the "organization," from

1969 through 1981 and held many staff positions in the Sea Org, Scientology's elite

quasiparamilitary core. I gained a knowledge of organization policies and operations, worked

closely for period with its founder and leader L. Ron Hubbard, and during my last two years

inside did the research for a biography to be written about the man. I have detailed my

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organization experiences in many declarations and have testified in organization litigation in

depositions and at trials approximately 55 days in some 20 lawsuits from 1982 through 1993.

5. On June 20, 1984, following a lengthy bench trial in Armstrong I, LA Superior Court

Judge Paul G. Breckenridge, Jr. issued a memorandum of intended decision, a copy of which is

appended hereto as Exhibit [B]. Finding in my favor, he wrote, inter alia:

"In addition to violating and abusing its own members civil rights, the organization over

the years with its "Fair Game" doctrine has harassed and abused those persons not in

the [organization] whom it perceives as enemies. The organization clearly is

schizophrenic and paranoid, and this bizarre combination seems to be a reflection of its

founder LRH. The evidence portrays a man who has been virtually a pathological liar

when it comes to his history, background and achievements. The writings and

documents in evidence additionally reflect his egoism, greed, avarice, lust for power,

and vindictiveness and aggressiveness against persons perceived by him to be

disloyal or hostile." (Ex. B, at p. 8, l. 18)

On July 20, 1984 Judge Breckenridge ordered that his intended decision be deemed his statement

of decision, and on August 10, 1984 entered it as judgment. The organization appealed.

6. On July 29, 1991 the California Court of Appeal, Second District, Division 3 issued its

opinion, a copy of which is appended hereto as Exhibit [C], affirming the Breckenridge decision.

The Court of Appeal stated, inter alia, that the organization's " suppressive person declares" had

"subjected Armstrong to the 'Fair Game Doctrine' of the [organization] which permits a

suppressive person to be 'tricked, sued or lied to or destroyed...[or] deprived of property or

injured by any means by any Scientologist....'" (Ex. C, Church of Scientology v. Armstrong,

283 Cal. Rptr. 917, at p. 920)

7. The Armstrong I cross-complaint, which, on the organization's motion had been bifurcated

from the underlying case before the 1984 trial, settled in December, 1986. Armstrong II and III

are breach of contract actions for damages and enforcement of the conditions of the central

document in the settlement entitled "Mutual Release of All Claims and Settlement Agreement,"

hereinafter the "settlement agreement," which the organization has attached as an exhibit to its

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Armstrong IV complaint, and which is appended hereto as Exhibit [D].

8. I am an expert in the identification of the organization's fraudulent nature, practices and

statements, and "fair game," the organization's fundamental philosophy and practice of

opportunistic hatred, and I have testified as an expert in these areas. Because of what I know

and my willingness to communicate freely to anyone who wants to hear, I am fair game's target.

I have been subjected to the organization's cynical and dangerous legal and extralegal operations

from 1982 to the present. I have documented dozens of instances of fair game in action toward

me in my earlier declarations and oral testimony. See, for example, paragraphs 6 through 9 and

19 and 20 of my declaration of March 16, 1992, a copy of which is appended hereto as Exhibit [E],

filed in Armstrong II in Marin County in opposition to Scientology's motion for a preliminary

injunction. The Armstrong IV lawsuit is another instance of fair game. It is based on the

perjurious statements of organization lawyer Andrew H. Wilson, it is meritless and malicious.

9. The central charges of the Armstrong IV complaint are that:

(a) beginning in February, 1990, and continuing until the present I wilfully and

repeatedly violated the settlement agreement;

(b) fearing that the organization would seek to collect the damages, which it claims to be

due pursuant to the settlement agreement's liquidated damages clause, I conspired with

Michael Walton to fraudulently convey to him in August 1990 my interest in the real

property situated at 707 Fawn Drive in Sleepy Hollow, Marin County, California, for the

purpose of rendering myself "judgment-proof;"

(c) in 1988 I transferred my material assets to TGAC at the time I embarked on a

campaign to harass the organization with the intention of preventing the organization

from collecting money from me pursuant to the liquidated damages clause, and that

TGAC exists solely to make me judgment-proof;

(d) in August, 1990 I transferred to Michael Walton cash and stock in TGAC with the

intent to defraud the organization in the collection of its damages; and

(e) the organization should get $4,800,000.00 for all this fraud.

10. I will deal first with certain specific averments in the complaint; then with certain material

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facts which the organization and its lawyer, Mr. Wilson, were aware of before filing the verified

complaint, but which have been disregarded in favor of fakery; and finally I will provide additional

material facts and documentation to fill in any gaps in the historical events and their context which

underlie the complaint and support the inevasible conclusion that it is frivolous, malicious and

should be dismissed.

11. Mr. Wilson states:

"Armstrong, a former Church member who sought, by both litigation and covert means,
to disrupt the activities of his former faith, displayed through the years an intense and

abiding hatred for the Church, and an eagerness to annoy and harass his former co-

religionists by spreading enmity and hatred among members and former members."

(p. 2, l.4)

The organization, as it has been and is operated, is not a church. It is neither a house of worship

of God, nor a sanctuary for His children. Moreover, in Hubbard's claims of scientific verifiability

for his prohibitive psychotherapy he insisted specifically that Scientology's efficacy did not,

unlike religion, depend on faith. My Scientology involvement since I left from inside in 1981

has been with the organization's power structure; that is, the few who control all personnel,

communication and finance units and decisions, the organization's litigation machine, intelligence

and propaganda bureaus, its private investigators, and all of those segments' dirty tricks. My

message has been that the power structure's policies and actions to harass and destroy labeled

enemies, its doctrine of opportunistic hatred, and its spreading of enmity are not religious, not

effective, and have only brought the organization and Hubbard inevitable ignominy. My message

is that the only religious act in the world is forgiveness, that Hubbard lied when he defined

forgiveness as "condemnation," that he miscalculated madly when he attempted to program

himself with the idea that all men were his slaves, and then acted as if they were, and that the

organization could just as easily be engaged in the emancipation of its members as their

enslavement. I do not urge enmity among its members and former members even toward the

policies and practices of defrauding and brutalizing the innocent, but do urge understanding

and forgiveness. That I disrupt the power structure's activities - its rewriting of history, daily

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fraud, mockery of religion, use of the law to harass, assault on our justice system, abuse of the

good, bullying of the weak, and intimidation of those who should be the weak's defenders -

I admit. These antisocial activities will continue to be disrupted until the organization realizes

that such activities simply don't work, and out of self-interest forsakes the litigation business,

discontinues the war on the innocent, and either becomes religion or drops that immodest

mantle. But the disruption flows only from the organization's own antisocial actions, which

rebound on their manufacturer if any target stands up, doesn't duck and is willing to take a few

hits. I have no intelligence bureau, propaganda apparatus, private investigators, litigation

machine and no hundreds of millions to finance them. I have no fair game policy, and no

underlings to implement it if I did have one. I have no lawyers willing to lie for a little lucre and

no operatives to steal documents, frame judges, compromise jurors, trick, sue or destroy

invented and then targeted "enemies." Scientology's power structure is a big, black pot

desperately seeking kettles to tarnish.

12. Mr. Wilson states:

"[the organization] sought, with the Agreement, to end all of Armstrong's covert

activities against it, along with the litigation itself." (p. 2, l. 9)

I had no covert activities against the organization. It is the organization with its army of agents,

private investigators and lawyer cutouts which carries on its periculous, albeit ridiculous, covert

war. Hubbard patterned his espionage apparatus on the system developed by Hitler's spy master,

Reinhard Gehlen, and the power structure has continued Hubbard's dark and secret methods to

this day. The organization did not seek to end the litigation with me, and has not sought to end

its use of litigation to achieve its global antisocial goals. It sought to silence me with threats and

eliminate my ability to defend myself by contracting away from me my own attorneys, Michael

Flynn of Boston, Massachusetts and Contos & Bunch of Woodland Hills, California, who had

represented me throughout the Armstrong I litigation, so that it could keep its litigation machine

running, continue to obstruct justice, use the law to harass, deny redress to its victims, and

steamroll its opposition. Hubbard and his organization had ruthlessly and unremittingly attacked

Mr. Flynn, my good friend and the prime mover for seven years in a national effort to bring

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Scientology to justice, suing him some fifteen times, filing false bar complaints against him,

infiltrating his office, stealing documents, framing him with the forgery of a $2,000,000 check,

libeling him internationally, and, according to Mr. Flynn, attempting his assassination. The

organization threatened his law practice, family and life, hurt his marriage, and finally forced him,

in his desperation to end the threats, to sign a contract with the organization to not help me

should the organization attack me after the contract's signing. Even its own settlement

agreement (Ex. D) belies the organization's claim that it sought to end the Armstrong I litigation.

Paragraph 4B allows the organization, following the December, 1986 settlement, to maintain the

appeal from the Breckenridge decision, while requiring me to obstruct justice by not opposing

any future appeals. Coupled with the likewise illegal contracts requiring my attorneys to not

represent me in any such future appeals or in any action by the organization to enforce the

settlement agreement, the agreement's intended effect was to remove any opposition to the

organization's litigation juggernaut. My attorneys' signing of the non- representation contracts

is understandable and wholly excusable when the threat of the organization's attacks on them is

understood.

13. Mr. Wilson states:

"the Agreement contained carefully negotiated and agreed-upon confidentiality

provisions and provisions prohibiting Armstrong from fomenting litigation against [the

organization] by third parties." (Ex. A. p. 2, l. 12)

This is the big black pot feigning blindness by its layers of autogenous soot. The organization

is very likely the most litigious entity this world has ever known. I have consistently done

whatever I could to unfoment its litigation; in fact I have adjured it to get out of the litigation

business completely, and to seek solutions to its problems through peaceful means and open

and honest communication. So far it refuses to communicate with its targets, hides behind

corrupt lawyers, and rejects openness and honesty in favor of luciferian litigiosity. Fomenting

litigation is one of the organization's principal weapons in its war against its victims, its

critics, the justice system and the world. The declaration of U.S. District Court Judge James M.

Ideman dated June 17, 1993, a true copy of which is appended hereto as Exhibit [F],

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shows one respected jurist's insight into the organization's abuse of the legal process and its

fomentation of litigation:

"[the organization's] noncompliance [with the Court's orders] has consisted of

evasions, misrepresentations, broken promises and lies, but ultimately with refusal.

As part of this scheme to not comply, the [organization has] undertaken a massive

campaign of filing every conceivable motion (and some inconceivable) [Judge Ideman's

parens in original] to disguise the true issue in these pretrial proceedings. Apparently

viewing litigation as war, [the organization] by this tactic [has] had the effect of

massively increasing the costs to the other parties, and, for a while, to the Court. The

appointment of the Special Master 4 years ago has considerably relieved the burden

to this Court. The scope of [the organization's] efforts have to be seen to be believed

..... Yet it is almost all puffery -- motions without merit or substance."

(Ex. F, p. 2, para 4, 5; filed June 21, 1993 in Religious Technology Center,

Petitioner v. U.S. District Court, Respondent, David Mayo, Real Party in Interest,

No. 93-70281 in the 9th Circuit Court of Appeals)

14. Mr. Wilson states:

"In or about February, 1990, Armstrong began to take a series of actions which directly

violated provisions of the Agreement." (Ex. A., p. 2, l. 20)

In the fall of 1989, at the time I received a series of threats from organization lawyer Lawrence

E. Heller, and after enduring without response almost three years of post- settlement fair game,

I came to the conclusion that by allowing myself to be intimidated by the threats I would be

abetting the organization's obstruction of justice, and that I had an inalienable right, and

arguably even a duty, regardless of whatever the settlement agreement said, to not obstruct

justice. My first action, and my only action, in February, 1990, was to petition the California

Court of Appeal, Second District, Division Three for permission to respond in the appeal,

No. B 025920, from the 1984 Breckenridge decision, which the organization had been able to

maintain during all the intervening years. At the same time I petitioned Division Four of the

Second District for permission to respond in another appeal, No. B 038975, that the organization

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had taken from a 1988 Los Angeles Superior Court order granting the motion of contra-

organization litigant Bent Corydon to unseal the Armstrong I court file, which had been

sealed since the December, 1986 settlement. The organization opposed both petitions, Division

Three granted the petition to respond in the appeal from Breckenridge, and I filed a reply in

Division Four to the opposition in the unsealing appeal, supported by a declaration dated

March 15, 1990, in which I detailed many of the organization's post settlement threats and

attacks and stated my position regarding the unenforceability of several conditions of the

settlement agreement. The March 15, 1990 declaration, along with the exhibits thereto,

except for the Breckenridge decision (Ex. B to this declaration), is appended hereto as

Exhibit [G]. Since my documents were filed openly in the appeals and served on all opposing

counsel, the organization is fully aware of what I did in 1990, and that I had the Court of

Appeal's permission to do it. Mr. Wilson's allegation that I began in February, 1990 to directly

violate the settlement agreement contradicts an earlier allegation the organization and Mr.

Wilson made in the Armstrong II pleadings. In the amended complaint filed June 4, 1992,

a copy of which is appended hereto as Exhibit [H] , the organization states:

"As soon as he finished spending the money he extracted from [the organization]

as the price of his signature, in June, 1991, Armstrong began a systematic campaign

to foment litigation against [the organization] by providing confidential information,

copies of the Agreement, declarations, and "paralegal" assistance to litigants actively

engaged in litigation against his former adversaries." (Ex. H, p. 2, l. 27).

The June, 1991 date would not work well in the organization's Armstrong IV fraudulent

conveyance figment, so the February, 1990 starting date for my " violations" was fabricated.

Similarly the allegation would not work that as soon as I had finished spending the

settlement money I began whatever I did that the organization calls in its various documents

a "systematic campaign." I could have spent the money; I could have fraudulently conveyed

my assets; I couldn't have done both. I did neither. Nor did I begin a campaign, systematic

or not, to foment litigation against any of the organization's entities.

15. Mr. Wilson states:

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"Fearing that [the organization] would seek to collect the liquidated damages owed by

his breaches, Armstrong, .... fraudulently conveyed all of his property, including real

property located in Marin County, cash, and personal property to defendants Michael

Walton, the Gerald Armstrong Corporation, and Does 1-100, receiving no consideration

in return." (Ex. A. p. 2, l. 22)

I have never feared the organization collecting damages of any kind against me, nor even its

seeking to collect damages. I do have an undeniable concern that before it comes to its senses

or saner minds prevail in the organization the power structure will have me assassinated or do

something else diabolical and dangerous, and this has produced in me an awareness of threat

and is a fact of my present psychological condition. These people are quite capable of violent

and criminal acts, they are armed, and their head private investigator, Eugene M. Ingram, a

former LAPD vice sergeant, who is reported to have been busted from the force for pandering

and taking payoffs from drug dealers, in 1984 threatened to put a bullet between my eyes,

and in November, 1993 spread the rumor in broad daylight that I have AIDS. But I have

never feared that the organization can win in court or ever be awarded damages against me.

I do not believe any court in this country will order me to obstruct justice, not defend myself,

nor even not profit monetarily from, much less communicate about, on-going, open-court

lawsuits in which I have been sued for millions of dollars. The organization operates in

pretended blindness to the way rational people view its litigiousness, its abuse of process,

its greed and its suppression of its members' decent natures. My conveyance of 707 Fawn

Drive to Michael Walton, my forgiving of debts owed to me, and my giving away of cash,

personal effects and TGAC stock were not motivated by fear of the organization perhaps

suing me and conceivably, although not beyond improbably, being awarded monetary

damages in any such lawsuit. To the contrary, I believe that should any of the Armstrong II,

III or IV cases go to trial I will be awarded attorney's fees, costs and damages, and that either

the organization will agree to rescind the settlement agreement's unfair and unenforceable

clauses or our courts will rule them illegal. I had believed throughout 1990 and 1991 that it was

entirely likely that the organization would never sue me, even after attorney Heller's threats of

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litigation, since it had to know that it could never win in an uncompromised court, and that

any lawsuit it might bring against me would only bring it further disgrace. I gave away my

assets after a great deal of contemplation, which included acceptance of the fact that

thereafter if I stood up against injustice I would have to stand up to the organization,

and for that matter any organization, individual, army or nation, essentially penniless.

My amended answer to the Armstrong II amended complaint, a copy of which is

appended hereto as Exhibit [I], filed and served on Mr. Wilson October 8, 1992, states:

"Armstrong denies that he ever extracted money from the ORG. Armstrong

denies that in June, 1991 he had finished spending his money. In August 1990

Armstrong had given away all his assets for reasons unrelated to the ORG,

except that he evaluated that because the ORG committed so much harm with

its billions of dollars there was no reason not to give his money away, and

that it was better to combat the ORG's tyranny without money than not to

combat it with wheelbarrow loads of it. Armstrong denies that in June, 1991

he began any campaign, provided any confidential information to anyone,

copies of any agreement, declarations, and paralegal assistance to any

litigants."(Ex. I. p. 3, para. 3, l. 23)

I believe that in exchange for my willingness to renounce what were my worldly assets

in August, 1990, I have received consideration far beyond what I imagined at the time.

I could not and did not attempt to predict in August, 1990 what would happen in the

years that have followed. I proceeded with the faith that our Creator was the Source of

the idea of renunciation and that I could trust Him to guide me and care for all my needs.

The subsequent years have shown me that my willingness flowed from His grace and that

my trust was exceedingly well placed.

16. Mr. Wilson states:

"Armstrong caused his own personal assets to be transferred to [TGAC] without

adequate consideration in order to evade payment of his legal obligations, and

defendant Armstrong has completely controlled, dominated, managed and

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operated [TGAC] since its incorporation for his own personal benefit." (Ex. A. p. 4, l. 15)

"Armstrong transferred his material assets to [TGAC] in 1988, at the time of his

embarkation on the campaign of harassment..., and with the intention of preventing

[the organization] from obtaining monetary relief from Armstrong pursuant to the

liquidated damages clause. Hence [TGAC] exists solely so that Armstrong may be

"judgment proof." (Ex. A., p. 5, l. 3)

Again to make irrefutable facts fit his fraudulent conveyance fiction, Mr. Wilson has,

frankly, fudged. I incorporated TGAC in 1987 and activated it at the beginning of 1988. At

that time I also transferred to the corporation all my drawings and other artwork, writings,

rights thereto, office equipment and supplies, and I provided startup capital. In exchange I

received one hundred percent of TGAC's stock. Mr. Wilson's conclusion that one hundred

percent ownership of the corporation which owned my products, rights to their commercial

exploitation, plus office materiel was not adequate consideration for those products, rights

and materiel, is dissemblingly dense. His allegation that I embarked in 1988 on a campaign

of harassment is duplicitously daft. Yet this is utterly unsurprising standard Scientological

operating procedure. Very simply, the organization requires its members and its lawyers to

lie; and should they ever decide to stop lying, its members and lawyers become fair game.

The only thing I did in 1988 regarding the organization was to remain silent in the face of its

continuing post-settlement threats and attacks. Mr. Wilson's assertion that TGAC exists

solely to make me judgment proof, if it were not being made by an officer of the court under

the paw of the pestiferous power structure of this contumelious cult for its pernicious

purposes of revenge, fair game, black propaganda, attack on my friends, waste of everyone's

time, and my psychological and economic destruction, would just be faintly funniferous

flapdoodle.

17. Mr. Wilson states:

"The consideration paid to Armstrong was fair, reasonable and adequate."

(Ex. A., p. 7, l. 1)

I agree that the consideration was reasonable. The organization

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paid me as recompense for its fraud and abuse over the more than twelve years I devoted

to L. Ron Hubbard and for the five years of fair game harassment after I left. It settled with

me out of court in December, 1986 rather than face the trial of my Armstrong I cross-

complaint, then set for March, 1987. It again defrauded me at the time of the settlement

because it represented, through my attorney Michael Flynn, that it was discontinuing

fair game and getting out of the litigation business. It did not pay me, nor did it even offer

to pay me, to be fair game's willing victim and a tool the rest of my life in its abuse of our

justice system and suppression of our brothers.

18. Mr. Wilson is aware of the truth behind his untruthful statements in the Armstrong IV

complaint, but has chosen, in order to forward his client's malicious intentions, to ignore

that truth. He is aware, as shown in paragraph 14 above, since he is an attorney of record

in the case, that in the Armstrong II complaint the organization has claimed that in June,

1991 I began what it calls "a systematic campaign to foment litigation." Mr. Wilson, as

shown in paragraph 15 above, is also aware that I stated in my answer in Armstrong II that

I had given away my assets in August, 1990, for reasons unrelated to the organization.

These reasons are in truth irrelevant to any of the organization's claims in any of the

Armstrong cases, but incredibly have been made relevant by Mr. Wilson due to his

dishonest insistence, in order to justify his further harassment of me with the filing of

Armstrong IV, that my renunciation was the product of some conspiracy to defraud

the organization that pays him to attack me.

19. In my deposition in Armstrong II taken on July 22, 1992 by Mr. Wilson, pages 266

through 270 from the transcript of which are appended hereto as Exhibit [J], the following

exchanges occurred:

(For clarity I have integrated into the quoted sections the corrections I made in

the deposition transcripts in my reviewn of my testimony pursuant to the California

Code of Civil Procedure)

"Q. (Mr. Wilson) How about this, why don't you just tell me, tell me the business

of the Gerald Armstrong Corporation is.

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A. (Me) The Gerald Armstrong Corporation possesses a number of Gerald
Armstrong's artistic and literary works, possesses rights to a number of his

inventions and rights to certain formulas, and is in the business of bringing

peace and exploiting its assets for commercial and peaceful purposes.

Q. Okay. What does it do to exploit its assets for commercial purposes?

Make anything, sell anything?

A. It sells things and it makes things.

Q. What does it make.

A. It makes sculptures, cards, works of art, literary works, campaigns.

Q. What campaigns does it make?

A. It is a contributor and possessor of certain rights within the group known

as the Runners Against Trash and the same within the organization known as

the Organization of United Renunciants.

Q. What is the Organization of United Renunciants?

A. It is an organization dedicated to the preservation of the world through

peaceful means.

Q. What have the people in the organization renounced, if anything?

A. The people in the organization renounce money.

Q. Does that mean they give away their money?

A. They can if they want.

Q. Did you give away the money that the Church paid you in settlement?

A. Well, I'm, that's not a very well worded question, because I gave away all

my assets including my money.

Q. When?

A. When? August 1990.

Q. Who did you give it to?

A. A number of people.

Q. Can you tell me who they are?

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A. No.

Q. Did you give any of it to Michael Walton?

A. Yes.

Q. Why did you give it away?

A. Because I considered that I was guided to do so.

Q. By whom?

A. The Source of all that is.

Q. Who is that?

A. God.

Q. Now when God guided you to give away all your assets, did [H]e guide you to

give them to particular people or did you make that decision?

A. I believe that I was guided each step of the way.

Q. Okay. When you say you gave it away, I take it you didn't receive anything

in return in terms of monetary compensation?

A. Right.

Q. Can you tell me why you decided to give some of it to Michael Walton?

A. Because it was logical.

Q. Why?

A. And because I was so guided.

Q. Can you tell me what about it was logical?

A. I guess initially it's logical because he was a friend of mine in close proximity to

me, and I believed that he had a need at that time." (Ex. J. p. 266, l. 12 - p. 269, l. 3)

20. In my deposition in Armstrong II taken on October 8, 1992 by Scientologist lawyer

Laurie J. Bartilson, Mr. Wilson's co-counsel in II, III and IV, pages 459 through 475 from

the transcript of which are appended hereto as Exhibit [K], the following exchanges occurred:

" Q. (Ms. Bartilson) And if I ask you how much of the proceeds were still remaining

in your pocket at some period later when you gave away all of your assets on the

instruction of God, you won't tell me that either, correct?

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A. (Me) Correct. (Ex. K. p. 460, l. 25 - p. 461, l. 4)

Q. Does the Gerald Armstrong Corporation have any material assets?

A. Yes.

Q. Generally what are those assets, categories of things?

A. It owns original artwork and it has rights, inasmuch as such are assertable, in

certain inventions and formulas. (Ex. K. p. 463, l. 12 - l. 24)

Q. What is its (TGAC's) function?

A. It cares for, archives, promotes and exploits the works of Gerald Armstrong, and

it is a vehicle for peace." (Ex. K. p. 469, l. 19 - l. 22)

21. In my deposition in Armstrong II taken on March 10,1993 by Ms. Bartilson, pages

555 through 557 from the transcript of which are appended hereto as Exhibit [L], the

following exchange occurred:

" Q. Did you transfer that large body of work to The Gerald Armstrong Corporation

in August of 1990?

A. No. The Gerald Armstrong Corporation already owned those things.

Q. So was it The Gerald Armstrong Corporation transferring it away or the right

to it away?

A. The Gerald Armstrong Corporation owned a number of things. I gave away the

corporation. The corporation possessed a number of assets.

Q. So at the beginning -- at the end of the transaction the corporation still owned

the assets, but different people owned The Gerald Armstrong Corporation?

A. Correct.

Q. You are still a part-owner President of The Gerald Armstrong Corporation, are

you not?

A. I am now.

Q. But you were not in August of 1990?

A. Correct.

Q. You have since reacquired it?

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A. Correct.
Q. How much of the stock do you presently own in The Gerald Armstrong Corporation?

A. Eighty." (Ex. L, p. 556, l. 14 - p. 557, l. 11)

22. In the deposition of Michael Walton in Armstrong II taken on February 23, 1993

by Mr. Wilson, pages 39 through 42 from the transcript of which are appended hereto

as Exhibit [M], the following exchanges occurred:

" Q. (Mr. Wilson) And he's never transferred any property to you?

A. (Mr. Walton) Yes, he has.

Q. What has he transferred to you?

A. He transferred his interest in Fawn Drive to me.

Q. And what consideration did you pay him for that?

A. None.

Q. It was a gift?

A. Yes.

Q. And when did that occur?

A. I think it was around the time of the Desert Storm. I don't -- I really don't -- I'm

not quite sure. I can tell you it was -- it was approximately a year before the --

No, I can't tell you that either. I'm really not sure.

Q. Do you know why he transferred it to you?

A. I know what he told me.

Q. What did he tell you?

A. I'm trying to remember it. Let me think about it and see if I can remember under

what circumstances. I don't believe this has any relation to any representation.

[G]erry told me that he'd had a vision from God.

Q. That's it?

A. That's the reason. That's when he divested of all the property that I know of."

(Ex. M. p. 39, l. 9 - p. 40, l. 13)

23. On four days from the fall of 1991 through the spring of 1992 organization

-17-

Scientologist attorney Kendrick Moxon, of Bowles and Moxon, attorneys of record in

Armstrong I, II, III and IV took my deposition in Religious Technology Center, Church

of Scientology International and Church of Scientology of California v. Joseph A. Yanny,

Los Angeles Superior Court case no. BC 033035, known in the Scientology litigation arena

as Yanny II. This case involved the organization's claim that Mr. Yanny, formerly one of its

lawyers, was representing me in litigation against the organization. The claim was spurious,

invented as a way to attack Mr. Yanny and me, and the case was dismissed by the Court

before trial. The organization appealed and on January 11, 1994 the California Court of

Appeal, Second Appellate District, Division Three affirmed the judgment of dismissal

(B068261). During my deposition of March 17, 1992, pages 449 through 462 from the

transcript of which are appended hereto as Exhibit [N], the following exchanges occurred:

" Q. (Mr. Moxon) Did Yanny ever give you any money? Has he ever given you

any money?

....

A. (Me) Mr. Yanny has bought some meals for me, Mr. Yanny has paid for parking.

He has not given me any money other than that.

THE REFEREE (Honorable Thomas T. Johnson): And you stayed in his house?

A. Right

Q. Didn't he pay for you to come down to Los Angeles?

A. What that became was Mr. Yanny's purchase of stock in [T]he Gerald Armstrong

Corporation.

Q. Who owns the Gerald Armstrong Corporation?

....

A. The Gerald Armstrong Corporation is owned by stockholders, and I decline to

divulge who all the stockholders are.

....

THE REFEREE: The testimony is that there is a corporation. I take it there have been

questions in the past about the purpose of the corporation. There is testimony that

-18-

there are shareholders. More than one shareholder I take it?

A. Yes, your Honor.

THE REFEREE: And that Mr. Yanny is a shareholder. Is Mr. Yanny a majority

shareholder?

A. No.

THE REFEREE: Without saying who the shareholders are, how many shareholders

are there?

A. I believe 12.

THE REFEREE: Are you a shareholder?

A. No, I'm not.

THE REFEREE: I'll sustain the objections to any further questions on this

shareholdings. Is the corporation registered with the state of California?

A. Yes, your Honor.

THE REFEREE: How old is the corporation?

A. 1987.

THE REFEREE: Let's go on to something else.

....

Q. How much money did Yanny give you for stock in the Gerald Armstrong

Corporation?

....

A. $1,000.

Q. When did he give it to you?

A. My recollection is July and August or September, 1991.

....

Q. How many shares did that give Mr. Yanny?

A. One.

Q. One share?

A. One.

-19-

Q. Do the shares have any specific value?

A. $1,000.

Q. Did anybody else give you $1,000 to buy a share?

A. Yes.

....

THE REFEREE: What's the purpose of the inquiry?

MR. MOXON: The purpose is that I believe, and I would like to explore, whether or

not money has been acquired by Mr. Armstrong through some improper means

through a sham corporation that was established for the purpose of paying him off

for his work in relation to the situation we're involved in, and potentially for his

testimony.

....

THE REFEREE: Let me suggest another question. You can certainly ask him whether

a share of stock was issued for the payments.

Q. Was a share of stock issued to Mr. Yanny?

A. It has his name on it. It has not been delivered to him yet.

Q. Why not?

I have not finished the artwork.

Q. Are you drawing the share?

A. No, the share is a printed share. Each share which I issue has artwork on it. And

I have not had the opportunity and I have not ... been in a place to perform that artwork.

....

Q. How many shares of stock does this corporation possess?

A. One hundred.

Q. What does Yanny get in exchange for his share of stock.

A. One percent ownership in the corporation.

....

THE REFEREE: What the purpose of the corporation? Somebody went to the state

-20-

and got permission to have a corporation. What's the purpose of the corporation?

A. The corporation provides philosophic services. The corporation owns all

my literary and artistic works. It is my expectation that the corporation will become

profitable and [ ] those people who have had the courage or wisdom to invest in

the corporation, as a result of the profitability of the corporation, wealthy."

24. The idea of giving away my house, TGAC stock and other assets, and forgiving all

debts owed me, came to me in August, 1990. This idea, which I consider Divinely inspired,

came, I believe, in answer to my prayer during that period requesting guidance concerning

humanity's condition, and specifically the then developing Middle East crisis following

Iraq's August 2, 1990 invasion of Kuwait. I was moved by media reports of the invasion,

the global tension, and the daily events of Desert Shield, and I sought to know what,

if anything, God wanted me to do. The idea of renunciation of worldly wealth, although

coming at that time as a surprise, and unclear as to the details for its accomplishment,

was not altogether illogical because I had long recognized that money, greed and power

motivated much of the madness that made human beings war against each other.

25. Renunciation first entered my consciousness when I was quite young, probably

less than ten years old, during a period I attended Sunday School or Sunday services at

the Anglican Church in Chilliwack, British Columbia, Canada where I was born and raised.

An essential message of the Christian Gospel, which I learned during that period of my life,

is the storing up of treasure, not in the world where it can be stolen, lost or destroyed, but

in Heaven where it is kept safe eternally. My earliest recollection of a specific teaching on

the subject, and one which has stayed with me throughout my life, is the story of the rich

young man, reported in Matthew, Mark and Luke. The King James Bible, Chapter 19 of the

Gospel According to St. Matthew, a copy of which is appended hereto as Exhibit [O], contains

the following passage:

"And, behold, one came and said unto [Jesus], Good Master, what good thing shall

I do, that I may have eternal life?

And he said unto him, Why callest thou me good? There is none good but one,

-21-

that is, God: but if thou wilt enter into life, keep the commandments.

    He saith unto him, Which? Jesus said, Thou shalt do no murder, Thou shalt

not commit adultery, Thou shalt not steal, Thou shalt not bear false witness,

    Honour thy father and thy mother: and, Thou shalt love thy neighbour as

thyself.

    The young man saith unto him, All these things have I kept from my youth

up: what lack I yet?

    Jesus said unto him, If thou wilt be perfect, go and sell that thou hast, and give

to the poor, and thou shalt have treasure in heaven: and come and follow me.

    But when the young man heard that saying, he went away sorrowful: for he

had great possessions.

    Then said Jesus unto his disciples, Verily I say unto you, That a rich man

shall hardly enter into the kingdom of heaven.

    And again I say unto you, It is easier for a camel to go through the eye of a needle,

than for a rich man to enter into the kingdom of God.

    When his disciples heard it they were exceedingly amazed, saying, Who then can

be saved?

    But Jesus beheld them, and said, unto them, With men this is impossible; but with

God all things are possible.

    Then answered Peter and said unto him, Behold, we have forsaken all, and

followed thee; what shall we have therefore?

    And Jesus said unto them, Verily I say unto you, That ye which have followed me,

in the regeneration when the Son of man shall sit in the throne of his glory, ye

also shall sit upon twelve thrones, judging the twelve tribes of Israel.

    And every one that hath forsaken houses, or brethren, or sisters, or father, or

mother, or wife, or children, or lands, for my name's sake shall receive an

hundredfold, and shall inherit everlasting life.

    But many that are first shall be last; and the last shall be first."

-22-

Ex. O, Matthew, 19, 16 - 30.

It was not until some time in 1983, more than a year after leaving the organization that I

began to understand the wisdom of these words, and only in August, 1990 that I was led

to follow them.

26. During my years inside the Scientology organization I was subjected to L. Ron

Hubbard's very different philosophy and practices concerning treasure, value and his brand

of ethics. In the few times he mentions God in his writings, Hubbard attempted to mock Him,

and he ridiculed the thought of Heaven. In his "upper level" secret directives Hubbard

wrote that Christ is an implant, a Scientology term meaning a fixed idea electronically installed

by force and pain to control and suppress its human victim. In exchange for money paid for

his pricey psychotherapy Hubbard promised the worldly treasures of increased IQ, better

communication skills, power, physical health, and the ability to make even more money.

Unable to deliver on these secular promises, however, Hubbard and his organization, in

response to the thousands of people who have been defrauded and requested refunds

pursuant to his "money-back guarantees," have employed an army of lawyers to con our

courts with the idea that these representations are "religious" and the ill-gotten and often

extorted payments "donations." Hubbard stated as his organization's financial "Governing

Policy," MAKE MONEY....MAKE MONEY. MAKE MORE MONEY. MAKE OTHER PEOPLE

PRODUCE SO AS TO MAKE MONEY. The United States Tax Court thought this policy so

noteworthy it quoted it in its official reports in Church of Scientology of California v.

Commissioner of Internal Revenue, 83 TC 381 (1984) at 422. Hubbard and his organization

justified their uncharitable policies and nature with a concept he called "rewarding

downstats," which meant that the unable, infirm and poor should not be helped because

helping such persons only rewarded them for being unable, infirm or poor. A related

Hubbardian "truth" which permeated the organization was that people "pull in" the bad

things which happen to them; that is, they bring upon themselves, or deserve, their

difficulties or tragedies. This concept is used not only to excuse Hubbard and his

organization's disregard for human suffering in all its forms, but to extol the suffering

-23-

they have heaped on their "enemies." The attack on, for example, writer Paulette Cooper

to ruin the woman (the organization's intelligence bureau under Hubbard's direction, in a

scheme called "Operation Freakout," which had as its stated purpose to either get her

imprisoned or driven insane, obtained through trickery her fingerprints on sheets of paper

which were then used to send "anonymous" bomb threats to political figures) was right,

"pro-survival" and ethical, because Ms. Cooper pulled it in. While this idea supports the

Scientological group psyche in its organization, and in the entity it presents as plaintiff

and defendant in our courts, its policy, philosophy and psychology do not allow the

application of the same idea to L. Ron Hubbard or to the power structure that replaced

him after his death in January, 1986. It is forbidden inside the organization even to think

a critical thought about Hubbard or Scientology, and grounds to be declared "fair game"

to expound either the idea that perhaps he may have done something to pull in some of

the names he's been called; e.g., bigamist, bully, charlatan, cheat, liar, megalomaniac,

swindler, wife beater; or that just maybe some of the persons the organization attacks do

not deserve it. This double and twisted standard that Hubbard implanted in the

Scientological mind keeps the organization's employees and customers ignorant of wisdom

and blind to the madness of their actions, words and appearance. But reasonable and

rational non-Scientologists are not blind to these things, as shown herein in the

Breckenridge decision (Ex. B) and the Ideman declaration (Ex. F). Hubbard was shrewd

enough to understand that even to the brainwashed a persona of "egoism, greed [and]

avarice" (Ex. B, p.9, l.2) would trigger rejection; thus in public and in the legal arena he

applauded his generosity and flatly denied the suggestion of inurement, In a public

relations piece that went to every Scientologist in the world, and to any non-Scientologist

who wanted one and many who didn't, he wrote that for all his work in saving mankind

he was paid less than an average organization staff member. I was an average staff

member during this assertion's international dissemination and I was paid between $4.30

and $17.20 per week. Hubbard paid himself untold millions. He had complete control of the

organization and all organization bank accounts, and concocted amazing schemes for

-24-

international money laundering; all while having his organization's personnel swear in

civil litigation, criminal cases and official investigations that he had resigned as Scientology's

director in 1966 and from that date had played no part in the organization's management.

In keeping with his secret affirmations that "all men are my slaves," and "I have the right

to use men's minds as I please," by which he programmed himself in the early days of his

"development" of Dianetics and Scientology, he kept his workers impoverished while he

ripped off millions illegally from the "charitable" corporations in which they labored. The

new power structure has embarked on a glossy PR campaign in which it laments that all

Scientology services aren't free and that it needs to charge what it does to "help create a

safe and pleasant environment for everyone." A more accurate statement of the

organization's fiscal philosophy is the article in the May 6, 1991 Time magazine, on the cover

of which over an erupting octopodous monstrosity is blazoned "Scientology - Cult of

Greed." I know personally a great number of people who have been victimized, abused,

ripped off and discarded for no other reason than to satisfy the power structure's

avariciousness. It is my knowledge of this cult of greed and the threat its leaders think I am

to their shaky house of fraud that has brought them and their attorneys to attack me so

relentlessly. I acknowledge that it is possible to view the giving away of my possessions

in 1990 as a reaction to the years of inculcation with Hubbardian greed and

meanspiritedness; but I do not see it that way. Hubbard and his organization were never

able to destroy in me my God-given nature. Even inside the organization, in circumstances

which made charity, compassion and understanding dangerous activities, Hubbard and his

enforcers were never able to achieve total suppression. They were not successful with me,

and I believe it will be ultimately shown that they will not have been successful with anyone;

nor is suppression of anyone by any regime, state or entity entirely successful. It is our

God-given nature that brought every person into Scientology and the Sea Org, and willing

to live, work, fight for a cause, and endure terrible abuse, without thought of profit, bank

accounts, investments or retiring. In his abuse of that divine nature Hubbard proclaimed

it a "high crime" to even discuss retiring with one's fellow Scientologist workers. My analysis

-25-

is that the use of our highest nature by an individual or organization for purposes not in our

best interest; that is to say, suppression, is not merely not religion, it is irreligion; and as

irreligion it should be stood up to and seen for what it is. My position in the litigation is that,

by justice, law, this country's constitution, and God's Will, I am free to communicate that

analysis in all the ways it can be said and by any means and media there are to say it.

27. I have considered myself a professional artist and writer since 1984. In the fall of

that year organization operatives broke into the trunk of my car and stole a book manuscript

with original art I then valued at $50,000.00. I demanded my things returned to me but the

organization denied possessing them. I have recently been advised by former organization

executive Vicki Aznaran that during a time when she was involved organizationally with

its present leader David Miscavige in operations against "enemies," he acknowledged the

organization's theft of my manuscript and scoffed at my work's literature. Also in the fall

of 1984 the "Armstrong Operation," in which the organization had used one of its covert

agents, Los Angeles spy story writer Dan Sherman, to get close to me to set me up in a

number of situations, culminated in my being videotaped in conversations with two other

organization agents, David Kluge and Mike Rinder. At the end of 1984 I split up with my

wife Jocelyn, who had escaped with me from the organization in December, 1981, and in

early 1985 I travelled to Portland, Oregon for the trial of Julie Christofferson v. Scientology,

Multnomah County, Oregon Circuit Court, Case No. A7704-05814. During my cross-

examination at the trial in April, 1985, the Armstrong Operation videotapes and the fact

that Sherman, Kluge and Rinder, who had been presenting themselves as my friends,

afraid for their lives, and seeking my help to reform the organization's criminal nature, were

actually covert operatives intent on destroying me, were " introduced" by organization

lawyer, Earle Cooley. In September, 1985 I moved to Boston and worked at the Flynn, Joyce

& Sheridan law firm until the December, 1986 settlement. The organization continued to

run operations against me during this period, I continued to write and draw, allowed God

to work on my mind and heart, and in 1986 founded a church.

28. In January, 1987 I moved to Oakland, California, and then purchased a home in the

-26-

Berkeley-Oakland hills where I lived until 1989 when I purchased a new home in the same hills.

During this period I wrote and drew and followed what I prayed was guidance. I set up and

worked out of an office, on the urging of Michael Walton incorporated TGAC, started running

and helped whomever I could. Although I knew the organization still viewed me as an enemy

and had attacked me in various ways after the settlement I did not become substantially

reinvolved with it in the legal arena until the fall of 1989 and spent virtually no time until then

on organization-related matters. I became an accredited Teacher of God during this period,

and also was given my first glimpse of the resolution of the economic problems facing the

world. This glimpse, which I wrote into an essay entitled "A Crash Course in Speculation, "

a copy of which is appended hereto as Exhibit [P], was a step toward my renunciation, which

itself is, I believe, an incident of planetary salvation. My reinvolvement with Scientology is

described in my declaration of March 15, 1990 (Ex. G hereto), my declaration of December 25,

1990, a copy of which is appended hereto as Exhibit [Q], and in the boxes of documents filed

in the four Armstrong cases. I filed the December 25, 1990 declaration as an appendix to a

response brief in the appeal (B 038975) of the order unsealing the Armstrong I court file for

Bent Corydon.

29. I first met attorney Michael Walton in about April 1982, shortly after we both began

working at the law firm of Feldsott, Lee and Van Gemert in Newport Beach, California. We

became friends and stayed friends when I left southern California, moved to Portland, Boston

and the Berkeley-Oakland hills. We spent many hours together through those years and

talked for many hours about many things, including my art, writings, inventions and

philosophic ideas, and we considered doing various projects together involving these

products or ideas. Mr. Walton was familiar with my Scientology history and litigation, the

organization had taken his deposition in Armstrong I, claiming it was needed because he

was for some matters my administrative senior in the Feldsott firm, and he attended several

days of my trial in 1984. He has represented me in literary and legal matters and I have

consulted with him on a number of occasions since that time. Before becoming a lawyer

he taught English in university, he is a writer, and for a period of time before the December,

-27-

1986 settlement, considered writing a book himself about Hubbard.

30. One of the things I did with the money I was given in settlement of Armstrong I was to

form a partnership with Fairfax architects Rushton-Chartak and San Anselmo builders Grizzly

Hill Construction to purchase a rare piece of property at 707 Fawn Drive in the unincorporated

land of Marin County and build thereon a spec house, hereinafter "Fawn." I provided the

initial capital, the work was done and the house completed toward the end of 1989. At the

same time an unusual phenomenon in the California half-million-or-so dollar house market

occurred; it dried up and crashed. For me all of a sudden it made economic sense to buy

Fawn myself. When that idea arose, the idea of hooking up with Mr. Walton and doing some

of our often-discussed projects together also arose, and fairly naturally, because he had been

thinking about leaving the south and Fawn was a reasonably big house which could sensibly

contain his law office, my business, our respective companions and his one-year old son.

We arrived at an arrangement which worked for both of us, I sold my East Bay house, and

the five of us moved into Fawn in May, 1990. I made the down payment for the Fawn purchase

and put enough cash into a joint checking account to cover a year's mortgage and utilities

payments. Although to a Scientologist, the organization's lawyers or other similarly hard-

nosed business persons it can certainly be argued that I put more than my share of capital

into Mr. Walton's and my venture, in which it would also be mainly my creations or ideas

which would be commercially developed, and that there is therefore something wrong,

suspicious or even fraudulent in so doing, to me these actions rather reflect rightness and

probity. I was dedicated to my work being God's and to doing some creative projects with

Mr. Walton, I had generally had a something different from ungenerous nature, and I knew,

as expressed in my 1989 essay "A Crash Course in Speculation, " that money has no value.

Renunciation has, of course, greatly reduced my numismatic largess.

31. Within a month or so of the move into Fawn, Mr. Walton's friend Jody and their son

Dylan moved out, we got our offices functioning and spent a lot of time getting the house

and yard functioning. I ran, and with my helpmeet Lorien Phippeny developed into

demonstrated workability a program to have the world's runners clean the planet of its street

-28-

litter. I joined a running club and bought a mountain bike. Before the move to Marin County

Mr. Walton had already agreed to represent me in the organization's appeal (B 025920) from

the Breckenridge decision, permission to respond in which I had already obtained from the

Court of Appeal in February, 1990, and we filed a Respondent's Brief on July 9, 1990.

32. Also in February, 1990 I received an invitation from the IRS to discuss my 1987 tax return.

The discussion did occur, the IRS issued an Information Document Request, and I responded

on April 24 with a book which I have given the working title Auditing Gerald Armstrong.

A copy of the manuscript along with its supporting documents, except for those which

are already exhibits to this declaration, is appended hereto as Exhibit [R]. This complete book

was produced by me on March 10, 1993 in attorney Wilson's office pursuant to the

organization's request for production in Armstrong II. He and the organization were therefore

aware of the following facts from the Auditing GA manuscript before they filed the Armstrong

IV complaint:

    A. That I had written "A Crash Course in Speculation;"

    B. That in July, 1987 I had offered to the captors then holding several hostages

in Lebanon my house, and for that matter my life, without monetary consideration,

and for reasons unrelated to the organization;

    C. That in the summer, 1989 edition of Common Ground I had offered my

philotherapeutic sessions at no cost;

    D. That Nancy Rodes had declared under penalty of perjury on November 28,

1989 that she knew me to be a religious figure and had been my hagiographer

since 1984; and,

    E. That TGAC has never existed solely so that I may be "judgment roof."

33. Even though I was aware of Jesus's admonition to his disciples to not be troubled by

wars and rumors of wars (Mark 13, 7; Luke 21,9), I was undeniably affected by the media

images of Desert Shield as it built into Desert Storm and the international diplomatic drama

that accompanied the military operations. I had already been moved, I felt, to enter the political

and sociological landscapes, as I believe is shown by the letter to the captors, "Crash Course"

-29-

and their recipients lists. I had also considered and argued in these other political matters -

the hostages, the economy - that something could be done about them, and that what I thought

could be done was, at least on paper, a better idea. It was not out of the ordinary or out of

character, therefore, for me to consider that I could do something about Desert Shield, Desert

Storm or the whole blessed Middle East. It was at that time that the idea came to me to give

away my worldly possessions and to give myself to the cause of peace. After some thought,

I transferred my interest in Fawn to Mr. Walton, divided my one hundred percent ownership

of TGAC equally between my friends Nancy Rodes, Michael Douglas, Lorien and Mr. Walton,

and forgave all debts owed to me. I knew by this time that our Source is also the source of

everything, including money, and that He would provide for me all that I would need to carry

out His work. I also was fully aware that I was engaged with the organization on the legal

battlefield, and although I was confident of the outcome, I had no idea what would happen on

the road toward that day. I recognized that the organization's ruling clique was motivated by

the same forces of money, greed and power that made men war against each other and that

my renunciation was spiritually directed at bringing peace for the organization no less than

the rest of the world. And, as I stated above, I accepted the fact that should my legal battle

with the organization continue I would more likely than conceivably litigate indeed in forma

pauperis. I communicated my decisions to everyone directly affected by them, took care

of the paperwork needed to make the decisions legally effective, and tied up various loose

ends. It became clear to me that the renunciation had left me unattached and free to travel

wherever I was called should I be. I gave my car to Lorien, but she returned it, and we took

a trip together during September through the western states and British Columbia to develop

a sociological concept that had come to me. When we returned to California Lorien moved

to Santa Cruz and I, not then being called to go elsewhere, stayed at Fawn where I worked on

some house and grounds projects, continued to maintain TGAC's office, and kept picking up

trash. I also came up with what I thought was a good plan for resolving the Middle East crisis

and I communicated this plan to various media and certain leaders or envoys I thought were

in positions to do something about it. In my letter to Saddam Hussein of November 1, 1990 I

-30-

offered, as I had with the Lebanese captors in 1987, to exchange myself for the hostages then

being held in Iraq; but I did not sweeten the deal with my interest in a house, as I had done

in the earlier offer, because I had already conveyed it to Mr. Walton. Copies of this letter,

my November 7, 1990 letter and list of addressees to which they went, my December 10, 1990

and January 10, 1991 letters are appended hereto as Exhibit [S].

34. On December 28, 1990 I filed a response brief and appendix (Ex. Q hereto) in the B 038975

appeal (see paras. 14 and 28 above). On December 31, Mr. Walton married Solina Behbehani,

and she and her teenage son Sephy moved into Fawn. Oral argument in the two appeals,

B 025920 and B 038975, was heard on February 20, 1991. At some point during the months

following my renunciation it became clear to me that I would go in the world wherever my

help was asked for, and, as much as was sensibly safe, courteous and wise, provide my help

without monetary remuneration. Initially only Mr. Walton asked for my help so I had no

reason to leave Fawn. Then Nancy Rodes asked me to help her complete and clean a house

she had built in the Oakland hills, which I did through the spring of 1991. This worked well

because she was broke and I worked for free. I returned to Fawn for a couple of weeks to

complete a painting project I'd started earlier, then traveled to British Columbia for my

parents' fiftieth wedding anniversary. While in B.C. I received a call from Malcolm Nothling

in Johannesburg, South Africa who asked for my help in a lawsuit he had brought against

the organization which was then set for trial in August. He said he had not been able to find

else in the world willing to testify about the organization's policies and practices.

Having already put the organization on notice in February, 1990 that I considered the

restrictions of the settlement agreement unenforceable, and after listening to Mr. Nothling's

story, and because he asked, I agreed to help him. I told him, however, that I wanted first to

see if his situation could be resolved peacefully without the hatred and waste which seem

to be the hallmarks of the organization's legal confrontations. A copy of my effort, a letter

to attorney Eric Lieberman, who represented the organization in the Armstrong I appeal and

in many of its appellate matters, is appended hereto as Exhibit [T]. Mr. Lieberman sent me a

letter rejecting my peace proposal, I flew to Johannesburg and helped Mr. Nothling, but did

-31-

not testify because the organization was able to obtain a postponement of the trial.

35. Soon after my arrival back from Canada and just before leaving for Johannesburg I got a

call from attorney Joseph Yanny, who'd become a good friend over the previous year or more,

and who had come into the case of Richard and Vicki Aznaran v. Scientology, US District

Court for the Central District of California case no. CV-88-1786-JMI, after the Aznarans were

tricked by the organization into firing their lawyer of more than two years, Ford Greene.

The organization had immediately filed a mountain of summary judgment and other motions.

Mr. Yanny said he needed my help. I traveled to Los Angeles in the few days I had before

I was scheduled to fly to South Africa, on July 16 wrote a declaration, a copy of which is

appended hereto as Exhibit [U], concerning the effect of the 1986 "global settlement" on

litigants against the organization and in the legal community, and generally helped out

in the moral support department. Mr. Yanny is a member of my church and we have talked

many times over the past few years on matters of the soul.

36. As I was leaving for South Africa I learned from Mr. Yanny that the organization had

sued him for allegedly inducing me to breach the settlement agreement. In response to that

charge, between planes in New York I wrote a declaration dated July 19, 1991, a copy of

which is appended hereto as Exhibit [V], in which I stated my philosophy regarding my calling

to help.

"But more than a desire to protect myself or right the organization's unjust acts

towards me, however, I helped Mr. Yanny for the simple reason that he asked. I will

do the same for anyone....It is not only the right of all men to respond to requests

for help, it is our essence. If I was induced, therefore, to help Mr. Yanny, or

anyone else, it was our Creator Who induced me."

The organization's lawsuit against Mr. Yanny actually claimed that he was representing me

in Scientology-related litigation, which was, the organization also claimed, since he had for

a period of time represented it in various matters, a breach of his continuing duty to it.

Although I had consulted Mr. Yanny regarding some of my literary and artistic products

and ideas, he had never represented me in any litigation and I had never consulted him

-32-

about my organization legal battle. The organization's allegation that he represented me

had no basis in fact and the complaint was dismissed.

37. While I was in South Africa the California Court of Appeal on July 29, 1991 affirmed the

Breckenridge decision, and I learned that Judge Ideman in the US District Court had

reinstated Ford Greene as counsel for the Aznarans. When I arrived back in the US I

returned to Fawn and a day or so later dropped by Mr. Greene's office, which, as Heaven

would have it, is maybe two and a half miles away in uptown San Anselmo. It became instantly

clear that Mr. Greene, in a very tangible way, as much as anyone else in the world, really did

need my help. He faced the Everest of motions, which the organization had filed when the

Aznarans were lawyerless, with no time, no staff, no sleep, little organization, hopelessly in

debt, hounded by creditors, his own car held by a creditor garage. Again I achieved near

perfect economic symbiosis: he had no money and I worked for free. To render it a truly

irrefusable deal, I had wheels. I knew my way around a law office, had something of a history

of document assembly, could run a photocopier, stapler and hole punch, answer a phone,

and had an adequate command of the Canadian language. I was blessed with an

understanding of the cultic manufacturers of the paper mountains that threatened to crush

Mr. Greene, his office, and the Aznarans along with them. And I recognized that Mr.

Greene, in spite of whatever had brought him to the point of desperation where he truly

needed my kind of help, had a really good mind and heart, a unique talent, was, as I had

begun to see we are, guided, and with great luck and hard work might survive. So I've been

working with him, as his sole office support, since August 15, 1991. We have both survived,

worked hard, taken a few hits, and Mr. Greene can now afford to pay me something and does.

When things were really lean some other good friends have loaned me money, TGAC sold

a couple of shares to still others, and always money has arrived, as God would have it, in

His unmistakably mysterious ways. Mr. Greene has successfully defended me in the four

cases the organization maintains against me and has helped me as I have helped him.

38. Immediately upon my return from South Africa I received a copy of a lawsuit the

organization had filed August 12, 1991 against seventeen named United States agents,

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Church of Scientology International v. Xanthos, et al., US District Court for the Central

District of California, No. CV-91-4301 SVW(Tx). Included in the complaint, a copy of which

is appended hereto as Exhibit [W], was the allegation that:

"The infiltration of the Church was planned as an undercover operation

by the LA CID (Criminal Investigation Division of the IRS) along with

former Church member Gerald Armstrong, who planned to seed church

files with forged documents which the IRS could seize in a raid. The CID

actually planned to assist Armstrong in taking over the Church of

Scientology hierarchy which would then turn over all Church documents

to the IRS for their investigation." (Ex. W. P. 14, l. 3)

Although I had seen this organization attack line in many forms and venues since 1985, this

1991 charge signaled to me that the organization was not about to peacefully end its legal

and psychological war in which I was one of its most hated enemies. In recognition of

that fact as well as logistical reasons I moved out of Fawn and into Mr. Greene's law office

at the same time as I started working with him. Mr. Walton and I had already picked up

organization surveillance at Fawn, his stepson Sephy was very troubled by the threat he

perceived, everyone in the house felt threatened to some degree by the organization, and I

did not want to bring any danger to this family, who were my dear friends and completely

uninvolved with my Scientology conflict.

39. When I began working with Mr. Greene I almost immediately picked up surveillance,

and very shortly thereafter the organization began to attack with declarations and motions

filed in the Aznaran case, accusing me of violating various court orders, illegal activities and

acting as Mr. Yanny's covert agent in Mr. Greene's office. In response to this paper

onslaught, on September 3, 1991 I wrote a declaration, a copy of which is appended hereto

as Exhibit [X], which was filed by Mr. Greene in Aznaran.

40. On October 3, 1991 the organization filed a motion in Armstrong I to enforce the settlement

agreement, I opposed, and on December 23 at a hearing where I was represented by attorney

Toby Plevin, Los Angeles Superior Court Judge Bruce R. Geernaert denied the motion. Judge

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Geernaert was familiar with the case, having inherited it after Judge Breckenridge's retirement

and having unsealed the file on Bent Corydon's motion. On February 4, 1992 the organization

filed Armstrong II in Marin County and on March 20 it was transferred to Los Angeles Superior

Court. The organization brought a motion to enjoin me from violating the settlement and on

May 28, 1992 Judge Ronald M. Sohigian entered a partial injunction, a copy of which is

appended hereto as Exhibit [Y], prohibiting me from assisting litigant claimants against the

organization, but refusing to prohibit me from doing anything else the organization might

consider settlement agreement violations. I filed an appeal from the Sohigian injunction,

Scientology v. Armstrong, No. B 069450 in the California Court of Appeal, Second

Appellate District, Division Four. At this date the appeal has been fully briefed and is

awaiting the scheduling of oral argument.

41. In October, 1992, stirred by the imminent national election, I came up with a plan for

initiating the peaceful transformation of the nation's, and the world's, economic system

through the Organization of United Renunciants, hereinafter "OUR, " which I had conceived

of and founded some time earlier. I wrote a series of short essays on the plan and the

thought underlying it and sent a pack of these materials to several political and media

persons. A copy of OUR basic pack, including the list of its initial recipients, is appended

hereto as Exhibit [Z]. In one of the essays entitled "OUR Deadline" I write:

"George Bush's deadly deadline to Saddam Hussein gave me the idea of issuing

OUR deadline. The fact that it was OUR deadline resulted in the Organization of

United Renunciants. Organizing renunciants made sense because I had, in August

1990, as a result of understanding the Persian Gulf crisis, and accepting the idea

of renunciation as guidance, given away all my money, real estate, paper holdings

and personal effects and forgiven all debts owed me."

42. On November 11, 1992 the Marin Independent Journal published an article entitled

"Is money the root of problems? Critic of cash, credit urges monetary abolition," a copy of

which is appended hereto as Exhibit [AA], dealing in manifestly good humor with my economic

idea and OUR plan for its implementation. IJ reporter Richard Polito writes:

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    "Fellow renunciants will renounce all cash and credit, stop taking money, forgive

all their debts and stop keeping financial records.

    The critic of credit has already put his money where his doubts are. He gave it

all away. And it was more than pocket change.

    Armstrong won an $800,000 settlement in a harassment suit against the Church of

Scientology six years ago." (Ex. AA)

43. Because the Nothling case was set to go to trial in February, 1993, on December 22, 1992

I again wrote to the organization to see if a communication from me could initiate a peace

process. A copy of my letter, addressed to David Miscavige, the person who in every sense

can order anything within the organization or its corporate, financial or legal affairs anywhere

in the world and enforce compliance with all such orders, is attached hereto as Exhibit [BB]. I

sent copies of the letter to an extensive list of people I thought should be apprised of its

content. Having been accused by the organization so stridently for more than a year of

"fomenting litigation" against it, I made a special point and, I think, an honest effort, in this

letter, and in my other communications, to unfoment its litigation. I include in the letter a

statement of an aspect of my belief, which, I believe, is central to understanding the

organization's conflict with me.

"I believe that everyone will become a person of good will, that everyone already

is, has been and will forever be, that there is progress and perfection, hope and

reason, that to know who we are we must accept the truth of our relationship to

our Creator, that all about us that we made is illusion, that we have reason to be

grateful that is so, that our Creator, God, our Father Loves us in the same Love

by which He created us and holds us always safe and always loved in that Love,

that we, His children, are one and One with Him, that the means by which He is

remembered, and hence our relationship, and hence who we are, and hence

what we know, is forgiveness, that forgiveness is the recognizing of illusion for

what it is, that creation is our nature, and that everything is all there is."

(Ex. BB, p. 10)

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The organization appears in its statements and efforts to view me as competition in what it

claims as its niche, which it calls "applied religious philosophy," in what it apparently perceives

as the salvation market. Appended hereto as Exhibit [CC], for example is a copy of an

organization directive in which I am labelled a "squirrel," a hate word the organization uses

for people it considers its competition. Hence it seeks to destroy my reputation and resorts

to outrageous legal shenanigans to have me judicially silenced. In truth, although some of

what I say or do could be construed as applied religious philosophy, I have never used this

description. I do not compete with Scientology for anything, and certainly not for its paying

customers. I promote the philosophy that salvation is free, and the organization promotes

a philosophy that says that the only workable means of salvation costs a certain, and

generally escalating, quantity of money, or, for its employees, a certain number of years of

labor, and that the organization possesses and owns said only workable means and the only

workable delivery system. My philosophy is owned by everyone, and the living God is its

Source, as He is of everything. Scientology proclaims that its deceased leader L. Ron

Hubbard is salvation's source. I neither sell nor use the organization's philosophy and my

delivery system is different in every way from the organization's. If people want to pay for

salvation and take something not indistinguishable from a significant amount of time

getting saved they can go to Scientology. Those who want immediate salvation without

any sacrifice or cost whatsoever can come to me. The organization does not even accept

as customers anyone who believes that salvation is available right now without sacrifice,

so I am in no way a competitor. The organization banks on the idea that there are people

who want to pay money for salvation, so it promotes to that paying public. I bank on

the idea that we're already saved, so for Heaven's sake don't spend good money on it. Since

I am not looking for anyone who wants to pay for salvation, and do not even consider that

if someone feels he wants to pay for it I have something to sell him, I truly am not in

competition with the organization. There are, admittedly, probably more people who want

salvation to be free than there are who want to pay for it, but that is just the way

Providence has dealt out preferences for freedom versus cost. Also admittedly, in a strictly

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business sense, my philosophy has another undeniable advantage because in this world

everyone can afford the salvation I offer; whereas those who can afford Scientology's road

to salvation, without even taking into account the desire to devote the time the organization

says is required, are considerably fewer in number. But the organization enjoys certain

advantages as well because of its administrative structure and technology; for example,

its policy prohibiting its customers from mixing practices. Once people become

Scientology's customers the organization will not permit any to come to me to be saved

and continue on its salvation program, what it calls the "bridge to total freedom." In fact

the persons I had saved would not even be allowed to continue to hang out with their

Scientologist friends, and those Scientologists would be prohibited from hanging out with

their former friends once I've saved them. Those kinds of prohibition wouldn't work well in

my delivery system, so anyone I save is at liberty to jump ship and take up Scientology's

cross, and still, as far as I and my philosophy are concerned, hang out with me or anyone

else in the world. This does not put a great strain on me, it's true, because in my system, as

stated above, salvation doesn't take time, nor does it have to be repeated. There is, of course,

the matter of the other people the organization also rejects and refuses to save even

if they could afford the program; for example, drug users, the mentally ill, convicted felons,

present criminals, shock victims, critics, people declared suppressive persons, and people

connected to people declared suppressive persons. Thus there may be some crossovers, but

it is silly of the organization to complain because I save those souls it rejects. By its

Suppressive Person Declares in 1982 (see, Ex. C, p. 920), the settlement agreement in 1986

(Ex. D), and its lawsuits to enforce the agreement up to present time, the organization has

sought to prevent me from having access to its means of salvation and delivery system.

The settlement agreement required that I

"never again seek or obtain spiritual counselling or training or any other service

from any Church of Scientology, Scientologist, Dianetics or Scientology auditor,

Scientology minister, Mission of Scientology, Scientology organization or

Scientology affiliated organization." (Ex.D at p. 10)

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If persons are rejected by Scientology because they had a criminal conviction, took LSD,

testified truthfully in organization litigation, are crazy, or were, as I had been, declared a

suppressive person, and such persons still want salvation, they can come to me. I save

everyone and believe there is nothing anyone can do to prevent his being saved. I simply do

it for free, whereas the organization charges its customers to do it to them. Clearly,

Scientology has its public and its market and I have mine. I do not advertise to those who

want to pay for salvation so there is no way I can possibly threaten the organization's

customer pool. In fact I don't advertise even to those who want salvation at no cost, but

simply trust that God will lead to me, without charge, those people I am to save. If

Scientology moved into my field and started saving people without cost of any kind, it

would conceivably have a reason to view me as competition and consequently would have

an excuse to ruin my reputation and have me judicially restrained from practicing my

profession. I think that if the organization really were to move into my technological field,

however, it would see that it's wide open and there are more than plenty of customers who

don't want to pay for salvation, can't, or both, to go around. I tried the organization's

philosophy for a significant number of years, and because I am intellectually sound,

observant, trained in wisdom, and willing to talk and testify about my observations and

can form reasoned opinions thereon, I am, in the litigation world, an expert therein. It

goes without saying that when lots of people are willing to talk about their organizational

observations I will cease to be considered an expert. But even until that day dawns,

although I am an expert in what the organization sells as its means to salvation, I am not

in competition with it. There is no reason for it to feel threatened by my beliefs or my

salvatory methodology, and no reason for it to vilify me or work so assiduously to get

some court to silence me. I follow the system perfected by Jesus Christ which is not

even in competition with nothing or no one.

44. On December 31, 1992 the organization filed an ex parte application in Armstrong II

for an order to have me held in contempt of court. The application and the supporting

declaration of attorney Bartilson, along with the exhibits thereto, except those which are

-39-

already exhibits to this declaration, are appended hereto as Exhibit [DD]. Exhibit G to the

Bartilson declaration is my December 22 letter to David Miscavige (Exhibit [BB] hereto),

and exhibit R is a copy of the November 11 Marin Independent Journal article (Exhibit AA

hereto). Ms. Bartilson also attaches to her declaration a few excerpts from my depositions,

correspondence from Ford Greene regarding three of his clients, Tillie Good, Denise Cantin,

D.O. and Ed Roberts, all of whom had claims against the organization for refunds of money

extorted from them, the transcript of a video interview I did in November, 1992, and two

proofs of service I signed in the Aznaran case. Ms. Bartilson charges that these things

add up to six violations of the Sohigian injunction and that for each of said violations I

should be fined and jailed. In her application, citing to the Independent Journal article,

Ms. Bartilson argues:

"The Court should exercise all of its available powers to impress upon Armstrong

that its orders mean what they say and will be enforced, despite the

intransigence of an enjoined party. Indeed, incarceration is an unusually

viable vehicle for impressing upon Armstrong the import of his obligations,

inasmuch as Armstrong has publicly disavowed money as a meaningful

commodity."(Ex. BB, Memorandum p. 13)

Although in Armstrong II the organization used my renunciation to support its effort to have

me jailed, in Armstrong IV the organization omits any mention of renunciation, claiming

instead that my giving away of my assets were fraudulent conveyances to render me

judgment proof, and that in fact I still owned and controlled those assets, and was

presumably rolling, albeit quietly, in dough. The organization is in error in both of its

scenarios. My conveyances were not fraudulent, and because I may have disavowed

money is no reason I should be incarcerated.

45. Appended hereto as Exhibit [EE] is a copy of my declaration dated February 2, 1993

and the exhibits thereto which I wrote in response to Ms. Bartilson's December 31, 1992

declaration and application for the order to show cause re contempt (Ex. DD hereto).

Exhibit F to my declaration and described therein at page 24 is a page from the organization's

-40-

November 1992 edition of its publication "Membership News," which it uses to attack the Cult

Awareness Network, hereinafter CAN, an organization which educates the public about

destructive cults including Scientology and provides support to families broken apart or hurt

by such destructive cults. Although the article is only a common, Scientologically standard,

fair game, bald-faced, Black PR smear of CAN and me, it again shows the organization's

recognition of my monetary philosophy and renunciation.

"Armstrong has some odd financial ideas. He is the self- proclaimed founder

of the 'Organization of United Renuniciants." In November 1992, the Marin

Independent Journal attempted to explain Armstrong's philosophy of life in

an article 'Is money the root of all problems?'" (Ex. F to Ex. EE hereto)

My February 2 declaration was not filed in Armstrong II because Mr. Greene felt the

organization's effort to have me held in contempt could be defeated without my testimony.

I did file a declaration, a copy of which is appended hereto as Exhibit [FF], executed on

February 11, 1993 by former organization covert operative Garry Scarff. Mr. Scarff had

been involved in operations against Mr. Greene and me with the organization's head

private investigator, Eugene Ingram, indentified in paragraph 15 above.

46. On March 5, 1993 at a hearing on the organization's contempt attempt, a copy of the

transcript of which is appended hereto as Exhibit [GG], Los Angeles Superior Court Judge

Diane Wayne refused to rule because the appeal from the Sohigian injunction was still

pending. She did, however, make a couple of comments about the injunction's

enforceability which, if nothing else, should be taken to heart by the organization.

"THE COURT: It seems to me ridiculous to hold this hearing prior to a

determination whether or not this is a valid order. I mean, I have serious

questions about the validity of the order.... (Ex. GG, p. 2)

I'll tell you, when I first looked at this order, I thought the order was

clear until I then read part of the transcript. Then it became unclear to

me. And I think that is in front of the appellate court, whether or not

this is an order capable of being followed, because Judge Sohigian's

-41-

comments that at least confused me a little bit." (Ex. GG, p. 6)

47. On March 22, 1993 LA Superior Court Judge David A. Horowitz, who presides over

Armstrong II for all purposes except the enforcement of the Sohigian injunction, granted my

motion to stay all proceedings pending a decision in the appeal of the injunction. In his

order, a copy of which is appended hereto as Exhibit [HH], he stated:

"The central issue of this case is the legality and validity of the [1986

settlement] Agreement. The Court of Appeal could certainly reach that

issue in its determination of the validity of the injunction. If it does, that

ruling could be determinative of many of the issues of this case. It makes

no sense to proceed with this matter until the Court of Appeal makes its

ruling." (Ex. HH)

48. On March 18, 1993 I made an agreement with Bob Carlson, the producer of a talk show,

"Lifeline," on a Christian religion radio station, KFAX, in Fremont, California, to be a guest

on the show on April 28. When I arrived at the station on that date, the host Craig Roberts

handed me a fax letter received a few minutes earlier from Ms. Bartilson, a copy of which

is appended heretoas Exhibit [II]. In the letter, which is addressed to me, Ms. Bartilson

threatens more litigation if I did the show.

"Should you appear on this radio show in violation of the Agreement, the Church of
Scientology International will pursue all remedies within the judicial system to obtain

damages from the violation and/or to enjoin any future violations of a similar nature."

Mr. Roberts said that because the letter also threatened the station with litigation should

I go on the show, and because although the station had called its attorney it had not

spoken to him, I would not be on the show. I responded to Ms. Bartilson on May 3 with

a letter, a copy of which is appended hereto as Exhibit [JJ].

49. On June 4 I executed a declaration, a copy of which, along with the exhibits thereto

except for the Breckenridge decision, is appended hereto as Exhibit [KK], in support of a

special motion to strike the complaint in the case of Church of Scientology of California

v. Larry Wollersheim, LA Superior Court No. BC 074815, hereinafter "Wollersheim II."

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In 1986 Lawrence Wollersheim had won a thirty million dollar judgment in the case of

Wollersheim v. Scientology, LASC No. C 332027, hereinafter "Wollersheim I." The

organization had appealed and the Court of Appeal, while castigating Scientology's

fair game doctrine and coercive use of its psychotherapy techniques, reduced the award to

two and a half million (Wollersheim v. Scientology (1989) 212 Cal. App. 3rd 872; 260

Cal. Rptr. 331. The organization had taken the judgment up to the US Supreme Court,

back again to the California Court of Appeal, and on a trip or two to the California Supreme

Court. Then on February 16 1993, shortly after the Wollersheim I trial judge Ronald

Swearinger died, the organization filed Wollersheim II, seeking to have the original judgment

set aside by alleging that Judge Swearinger had been biased against the organization in the

1986 trial. My June 4 declaration focuses on my observations and knowledge of the

organization's litigation practices, which had clear relevance to what it was trying to

do in Wollersheim II.

"Scientology regularly attempts to bludgeon the opposition into submission

with a blizzard of meritless paper, motions, depositions, appeals, writs, Bar

complaints, criminal complaints, perjured testimony, and other improper and

abusive tactics.

I am also aware that Scientology uses an attack strategy against judges who

rule against it, which includes claims of bias and prejudice and frequently

personal attacks. For instance in [Armstrong I], Scientology twice tried

unsuccessfully to disqualify Judge Breckenridge from the case because of

his alleged bias, and levied personal attacks on him, accusing him publicly

of Nazi affiliation. Similarly in Aznaran ... Scientology unsuccessfully

attempted to recuse Judge James Ideman because of alleged bias."

(Ex. II, p. 5)

50. On July 26, 1993, attorney Bartilson filed another application in Armstrong II with

Judge Diane Wayne seeking to have me held in contempt for providing the declaration

to Mr. Wollersheim. The application and Ms. Bartilson's charging declaration are appended

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hereto as Exhibit [LL]. Ms. Bartilson supports the application with the same shoddy

argument she used in her December 31, 1992 application, that when I state in my June 24,

1992 deposition that I have no intention of honoring the settlement agreement I am talking

about the Sohigian injunction. (Ex. LL, Memorandum p. 2; Ex. BB, Memorandum p. 3,

l. 3; Ex. BB, Bartilson Declaration, p. 2, l. 26; See also Ex. CC, p. 1, para. 3) She concludes that:

"Gerald Armstrong should be ordered to show cause why he should not

be held in criminal contempt of this Court for his June 4, 1993 declaration,

with punishment in the form of a fine not to exceed $1,000.00 and/or jail

time not to exceed five days as this Court sees fit."

51. Appended hereto as Exhibit [MM] is a copy of my memorandum filed September 7 in

opposition to Ms. Bartilson's order to show cause re contempt. Mr. Greene argues in the

opposition that:

"It is clearly discernible that, whatever infirmities intrinsic to the injunction there

are, Armstrong is prohibited from "voluntarily assisting" persons with claims

against Scientology. In other words, Armstrong is prohibited from assisting private

litigant plaintiffs in litigation in which Scientology is a party." (Ex. MM, p.4, l. 3.)

"For the purpose of the instant application, the only salient point is that in

Wollersheim II, Scientology sued Wollersheim. Therefore, any assistance

provided by Armstrong to Wollersheim in Wollersheim II is outside the

scope of the Sohigian injunction." (Ex. MM, p. 5, l. 8)

52. Apparently undeterred by Mr. Greene's illumination of the facts, on September 10

Ms. Bartilson filed a response, a copy of which is appended hereto as Exhibit [NN],

defending her effort to have me found in criminal contempt with the assertion that

because Mr. Wollersheim had been a claimant in Wollersheim II was prohibited by the

Sohigian injunction from assisting him in Wollersheim II where he is a defendant. She

bolsters her argument with the amazing pronouncement that the 1993 action, Church of

Scientology of California v. Larry Wollersheim, "is not litigation levelled "against"

Larry Wollersheim."(Ex. NN, p. 3, l. 12).

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53. In support of her response to my opposition, Ms. Bartilson filed a letter dated August

15, 1993, a copy of which is appended hereto as Exhibit [OO], that I wrote to attorney Wilson

in an effort to mitigate damages and initiate a peace process in the Armstrong IV case.

Ms. Bartilson quotes in her response a funny few sentences from the letter, my riposte to

Mr. Wilson's stab, itself not altogether unhilarious, in Armstrong IV that "[b] eginning in

February, 1990, and continuing unabated until the present, Armstrong has breached the

Agreement..." (Ex. A, p.7, para. 22) Ms. Bartilson interprets my humor and letter as

something radically different from the way I see them.

"This contemptuous response to the 1986 settlement agreement (pursuant to

which he happily accepted more than $518,000.00) and this Court's orders are

precisely why Armstrong has been ordered to show cause herein. CSI seeks

this Court's help in demonstrating to Armstrong that he will, indeed, be held

accountable for his wrongful actions, and that they must cease."

(Ex. NN, p. 5, l. 13)

Actually my letter contains no mention of the Sohigian injunction or any other of "this

Court's orders." It does, however, contain another effort to unfoment the organization's

litigations.

"So again, I extend to you and to your client the invitation to meet with me

honestly and openly for the purpose of communication towards the resolution

of our conflicts." (Ex. OO, p. 5)

Mr. Wilson has not answered my letter, and, as it has done with me for almost twelve

years, the organization refuses to communicate, other than through its barbarous attorneys'

judicial barrages or its covert agents' duplicitous prattle.

54. At a hearing on September 14 Judge Wayne, because the Court of Appeal had still

not ruled in my appeal from the Sohigian injunction, again refused to entertain the

organization's application to have me held in criminal contempt, and reset the hearing on

the two orders to show cause for December 6. This hearing has now been continued again

to April 6, 1994.

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55. TGAC, defendant in Armstrong II, III and IV, possesses, cares for and commercially

develops my products and is in the business of peace. Appended hereto as Exhibit [PP] are

pages from Pacific Bell's Marin yellow pages for 1992 and 1993, wherein TGAC is listed in

the category "peace organizations." TGAC also provides philosophic services in a number

of other areas of human endeavor and understanding, such as law, religion, health and

economics. It is a unique company with unique, both banausic and beneficent products. It

has not yet become financially profitable, but I believe that is merely a matter of time, and I

am not unhappy that TGAC's buildup toward profitablity has taken the form, route and time

that it has. It has also become apparent to me that the litigation in my life may very well

require resolution before TGAC is free to tackle the problems and projects for which it was

created. But no matter what conspiracy theories the organization and its lawyers fabricate,

TGAC was not created to have anything to do with it, its litigation or its philosophy. TGAC's

founder, owner, president, manager, senior baker and vice president for questions and

loopholes, just happened to be a person with a long, intense history with the organization,

which has its own long, intense history. No matter what kind of business I had gotten into

I would have brought with me the same history; which is now, six years and three more

Scientology lawsuits later, even longer and no less intense. No matter what kind of business,

or enterprise, profession, career or club I had gotten into the organization would have carried

out the same set of post-settlement fair game sillinesses to keep me involved with its litigation

and its leaders. I happen to have been given certain talents, knowledge and identity by my

Creator. I am a writer, thinker and artist, and thus my words, art and ideas exist, and some

of them TGAC happens to own and possess, and, God willing, will develop commercially.

56. When I activated TGAC at the beginning of 1988 I transferred to the corporation all

my writings, artwork, files and office equipment and supplies that I had previously owned

in my sole proprietorship. At that time I owned all TGAC stock, TGAC owned all my archive

materials, and I had an arrangement with TGAC whereby my products and acquisitions of an

artistic or literary nature passed to the corporation as I produced or acquired them. Because

the organization had continued to attack me following the December, 1986 settlement,

-46-

because I am connected to many people with an interest in the resolution of the organization's

war on justice and innocence in our society, and because I have been placed in a position

to do something to bring about that resolution, a certain quantity of my literary acquisitions

have been organization-related materials. In the fall of 1989, after the series of threats from

organization attorney Heller, I made a determined effort to acquire whatever organization-

related materials I could, sensing that they would be needed in the attacks I also sensed

were coming. In August, 1990, at the time of my renunciation, I split TGAC's stock into four

shares and gave them away with the rest of my assets as described in paragraph 33 above.

I had the hope and belief, which I still retain, that TGAC would be a commercial success,

and that the four owners, all close friends of mine, would benefit monetarily and have a

lot of fun with the corporation. I continued as TGAC's president, continued to produce,

and TGAC continued to care for its growing archive. From the organization's actions and

statements in the Yanny II litigation, wherein it had taken my deposition on several days

in late 1991 and early 1992, and its actions and statements in the Armstrong II litigation,

where it had served a subpoena duces tecum on the corporation, it became clear that the

organization was going to try to get its itching mitts on TGAC's archive, invade its privacy

and attack it as a way of attacking me. On June 22, 1992, at a special meeting of TGAC's

directors, it was therefore decided, in order to remove any reason for the organization to

attack the corporation, to transfer to me, Gerald Armstrong individual, everything in TGAC's

archive which related to the organization or my litigation, and this transfer was effectuated

the same day. I still sensed that the organization was not going to be dissuaded from its

kamikaze course, and I still wanted to protect TGAC's owners, whose only crimes were

being my friends and accepting my gift of stock certificates. I knew as well by this time

that the organization's leaders are paranoid, schizophrenic, proudly describe themselves as

"ruthless," and would destroy any innocent person if it served their purpose in attacking me.

On June 23, therefore, I met with each of the four who each decided at that time to give back

to me his or her shares. In that way these people would not become targets in the

organization's mad litigation war, and I would have the freedom, as TGAC's major stockholder

-47-

and president, to fight the war on behalf of the corporation as I was called. Two of the four,

Michael Douglas and Nancy Rodes, had signed settlement agreements similar to mine with

the organization in December, 1986, so were particularly vulnerable and worried in the

organization's attempt to make TGAC its litigation enemy. In August, 1990 each of the four

had received one share. In early, 1991 by agreement between the shareholders, the four shares

were split into one hundred, and each shareholder had given 5 shares to the corporation to

sell to finance its operations. Thus on June, 23, 1992, I received back eighty percent

ownership of TGAC (see also para. 21, supra, and Ex. L, p. 556, 557). This proved to be a

divinely timed move because on June 24 I was served with the organization's amendment

to the Armstrong II complaint, naming TGAC as a defendant. Because of my financial

condition and the stress of the organization litigation, which has rendered me over the past

three years completely incapable of dealing with certain clerical tasks, which even ordinary

people who are not fair game's targets can easily perform, TGAC owes the IRS and the

Franchise Tax Board a couple of years' returns, but that is only a temporary situation, which

I expect to resolve in the next few weeks. Yet even TGAC's failures to file seem to be

divinely timed because it surely disproves Mr. Wilson's Armstrong IV attack line that "

[T]GAC exists solely so that Armstrong may be "judgment proof" (Ex. A. p. 5, l. 7). Only

a madman would, when assaulted by this organization's litigation machine and needing to

be judgment proof, let his judgment-proofing corporation approach suspension. I am neither

mad nor in need of any protection from any judgment the organization imagines in its wild

dreams it might obtain. I own eighty percent of TGAC, and TGAC owns a body of

literature and art with considerable present value and potential. It owns the rights to a

number of my projects and products, including whatever can be owned of the formula for

the Unified Field, which I was given not long after August, 1990. TGAC has a history and

a lot of good will. TGAC did not invite the organization's attacks, and even urges the

organization to dismiss all the litigation it has fomented against TGAC. Nevertheless,

TGAC will undoubtedly garner more good will, good PR and societal acceptance as a

result of the organization's attacks, because society often judges one's worth by one's

-48-

enemies. Although no one should have to have enemies, the organization's power structure,

being so villainous, is, in the minds of the vast decent human majority, the best kind of enemy

to have. TGAC's present value is in the neighborhood of fifteen trillion dollars, so the

organization's claim of four point eight million is monetarily insignificant. Nevertheless,

and but for other reasons I will fight this battle.

57. The organization filed the Armstrong IV complaint July 23, 1993 and the case was

assigned to Marin Superior Court Judge Gary W. Thomas. It served a lis pendens on me on

August 8 and then recorded it encumbering the Fawn property, which, as evidence of God's

Great Humor, the Waltons were that very moment refinancing. On August 9 the

organization mailed me a request for production of documents, a copy of which is appended

hereto as Exhibit [QQ], asking for a hell of a lot of things, including everything I've written

from the beginning of time, and not unemphatically for the treatment for a screen play

entitled "One Hell of a Story," which I'd written and registered in the spring of 1993, and

for the authorship of which the organization was claiming liquidated damages in the

Armstrong III lawsuit in Los Angeles. On September 16 the organization mailed out another

request for production of documents by me, and similar requests to Mr. Walton and

TGAC, seeking inter alia, every financial record we possessed back a year before the

December, 1986 settlement. After some extensions to figure out what under Heaven we were

going to do about the crazy-scary Armstrong IV lawsuit, on September 30 Mr. Walton filed

a demurrer and motion to strike the complaint, and on October 4 I filed a motion to

commence coordination proceedings, followed on October 28 by an amended motion, asking,

because IV depends on the outcome of the LA cases and shares with them common questions

of fact and law, to have Armstrong IV transferred from Marin to LA Superior Court and

coordinated with II and III. On October 21 Solina Walton filed a motion to expunge the lis

pendens, and on October 29 Judge Thomas signed an order of expungement and awarded

Mrs. Walton $3500.00 in attorney's fees. On November 5 the organization filed its opposition

to the motion to commence coordination proceedings, I filed a reply on November 9, and on

November 10 in a pre-hearing minute order, a copy of which is appended hereto as Exhibit [RR],

-49-

Judge Thomas denied the motion, ruling, as again Humor would have it, that "[t]here are no

common questions of fact or law between this action and the Los Angeles County actions."

On November 12 the organization filed an opposition to Mr. Walton's demurrer and motion

to strike and on November 17 he filed a reply supported by a declaration, a copy of which,

along with the exhibits thereto, is appended hereto as Exhibit [SS]. In his declaration, Mr.

Walton describes our relationship over the years and the relevant events in our Fawn

period together. Exhibit D to his declaration is a letter I write to him on August 14, 1990 in

which I stated my intention to give away my worldly possessions and forgive debts owed

me and laid out my immediate plans. Exhibit E is a letter I wrote to him on August 23, 1990

while I waited in Marin Traffic Court for my failure-to-obey case at which the charging

chippy didn't show. In the letter I list various physical items then at Fawn and state my

intention for their disposition. On November 18 in a pre-hearing minute order, a copy of

which is appended hereto as Exhibit [TT], Judge Thomas overruled the demuurrer, and denied

the motion to strike, stating that:

"this action does not seek or require a determination that Armstrong breached the

settlement agreement. Thus, this action is not simply an attempt to avoid the (stay)

orders in the Los Angeles County actions."

On November 30 the organization filed motions to compel the production of the documents

requested from Mr. Walton, TGAC and me. A hearing on those motions is now set for January

21, 1994. On November 30 I filed my verified answer, a copy of which is appended hereto as

Exhibit [UU], the verified answer of TGAC, a copy of which is appended hereto as Exhibit [VV],

and a verified cross-complaint for abuse of process, a copy of which is appended hereto as

Exhibit [WW].

58. The only remaining documents relevant to the Armstrong IV lawsuit, other than letters to

the other people in my life whose debts to me I forgave in 1990, which I will not include so as to

not put them at risk, is my prayer and answer thereto dated August 13, 1990, a copy of which

is appended hereto as Exhibit [XX].

///

-50-

I declare under the penalty of perjury under the laws of the State of California that the foregoing

is true and correct.

Executed at San Anselmo, California, on January 13, 1994

[signed]
GERALD ARMSTRONG

Copyright © 1994, 2000 Gerry Armstrong

-51-

Exhibit [A]
Armstrong IV complaint

Exhibit [B]
Breckenridge Decision | .pdf

Exhibit [C]
Cal. Rptr. 917 | .pdf

Exhibit [D]
Mutual Release and Settlement Agreement | .pdf

Exhibit [E]
Armstrong Declaration 03-16-1992

Exhibit [F]
declaration of U.S. District Court Judge James M. Ideman dated June 17, 1993

Exhibit [G]
March 15, 1990 declaration, along with the exhibits thereto

Exhibit [H]
Armstrong II amended complaint filed 06-04-1992

Exhibit [I]
Armstrong's amended answer to Armstrong II amended complaint (filed 10-08-1992)

Exhibit [J]
Armstrong deposition in Armstrong II Pages 266 through 270. 07-22- 1992

Exhibit [K]
Armstrong deposition in Armstrong II Pages 459 through 475. 10-08- 1992

Exhibit [L]
Armstrong deposition in Armstrong II Pages 555 through 557. 03- 10-1993

Exhibit [M]
Michael Walton deposition in Armstrong II Pages 39 through 42. 02- 23-1993

Exhibit [N]
Armstrong deposition in Yanny Pages 449 through 462. 03-17-1992

Exhibit [O]
Gospel According to St. Matthew, Chapter 19

Exhibit [P]
"A Crash Course in Speculation"

Exhibit [Q]
Armstrong Declaration 12-25-1990

Exhibit [R]
Auditing Gerald Armstrong with supporting documents

Exhibit [S]
Letter to Saddam Hussein 11-1-1990
Letter 11-07-1990
List of recipient addressess
Letter 12-10-1990
Letter 01-10-1991

Exhibit [T]
Letter to Eric Lieberman

Exhibit [U]
Armstrong Declaration 07-16-1991

Exhibit [V]
Armstrong Declaration 07-19-1991

Exhibit [W]
Complaint Church of Scientology International v. Xanthos, et al.

Exhibit [X]
Armstrong Declaration 09-03-1991

Exhibit [Y]
Partial Injunction 05-28-1992

Exhibit [Z]
OUR basic pack, including list of initial recipients

Exhibit [AA]
"Is money the root of problems?" Marin Independent Journal 11-11-1992

Exhibit [BB]
Armstrong Letter to David Miscavige 12-22-1992

Exhibit [CC]
Scientology publication, "Squirels"

Exhibit [DD]
Ex parte application for OSC re Contempt 12-31-1992; Bartilson declaration; exhibits. 12-21-1992

Exhibit [EE]
Armstrong Declaration 02-02-1993

Exhibit [FF]
Scarff Declaration 02-11-1993

Exhibit [GG]
Hearing transcript 03-05-1993

Exhibit [HH]
Horowitz Order 03-22-1993

Exhibit [II]
Bartilson fax letter to Armstrong, sent to KFAX 04-28-1993

Exhibit [JJ]
Armstrong response to Bartilson 05-03-1993

Exhibit [KK]
Armstrong Declaration 06-04-1993

Exhibit [LL]
Application for OSC re Contempt; Bartilson Declaration 07-26-1993

Exhibit [MM]
Armstrong Memorandum in Opposition for OSC re Contempt 09-07-1993

Exhibit [NN]
Bartilson response 09-10-1993

Exhibit [OO]
Bartilson Exhibit: Armstrong Letter to Wilson 08-15-1993

Exhibit [PP]
Pacific Bell's Marin yellow pages for 1992 and 1993

Exhibit [QQ]
Request for Production of Documents 08-09-1993

Exhibit [RR]
Judge Thomas minute order 11-10-1993

Exhibit [SS]
Walton Reply to Scientology's Opposition to Walton's Demurrer and Motion to Strike 11-17-1993

Exhibit [TT]
Judge Thomas minute order 11-18-1993 (overruled demurrer; denied motion to strike)

Exhibit [UU]
Armstrong Verified Answer 11-30-1993

Exhibit [VV]
TGAC Verified Answer 11-30-1993

Exhibit [WW]
Verified Cross-Complaint 11-30-1993

Exhibit [XX]
Prayer and Answer 08-13-1990

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