DECLARATION OF MICHAEL J. FLYNN
I, MICHAEL J. FLYNN, swear under the pains and
penalties of perjury that the following is true and correct.
1) I am the attorney for Gerald Armstrong. In
April-June 1984, I appeared for Mr. Armstrong as trial counsel
in the case of Church of Scientology and Mary Sue Hubbard v.
Gerald Armstrong, Los Angeles Superior Court.
2) During the Armstrong trial, extensive evidence
was introduced, both documentary and testimonial, relating to
the fraudulent and criminal conduct of L. Ron Hubbard in
connection with his relationship with the Church of
Scientology. This conduct began in the 1950's and continued
at least up until November 1982 as established by the evidence
in the trial.
3) There was also extensive evidence in the
Armstrong trial relating to L. Ron Hubbard's background, which
for the most part, had been completely falsified by the Church
and by L. Ron Hubbard with respect to Hubbard's professional,
educational, health, miltary career and marital background
qualifications and credentials. Literally thousands of
documents in the form of hundreds of exhibits supported an
overwhelming testimonial record that Hubbard was in fact, a
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"pathological liar" as eventually ruled by the Trial Court,
and that he had in fact, manipulated and absconded with Church
funds.
4) During the trial, specific issues arose relating
to the "MCCS Mission" which was a Scientology/Hubbard program
to conceal Hubbard's control of Scientology, shield him from
liability, shield him from the fact that millions of dollars
of Church funds had been funnelled to him, and to perpetuate
this fraud in the future without Hubbard incurring liability
for it. Although the Court actually sealed the "MCCS"tapes
containing such evidence, there was evidence relating to
Hubbard's control of Church funds in the trial itself and in
an affidavit of Gerald Armstrong that had previously been
filed in the case of Burden v. Church of Scientology. This
affidavit specifically relates to the MCCS Mission. The
affidavit is not under seal and has never been under seal.
This affidavit specifically quotes from the MCCS tapes which
are under seal. In one of the tapes as set forth in the
Armstrong affidavit, the highest legal official of the Church
of Scientology is quoted as saying that Hubbard's taking 2.1
million dollars of Church funds "was a classic case of
inurement, if not fraud." The tapes also reveal, as set forth
in the Armstrong affidavit, that throughout the history of the
Church, while it was holding itself out as an entirely
legitimate, separate and distinct religious corporate entity,
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not under the control of L. Ron Hubbard, this in fact was a
fraud, the Church corporations were "shams" and Hubbard had
control of everything.
5) As a result of the foregoing evidence and an
abundance of additional extremely detailed evidence, for the
most part supported by documents including cancelled checks,
Swiss bank account numbers, correspondence and miscellaneous
other documents, it became obvious that Hubbard had in fact,
engaged in criminal and fraudulent conduct with respect to his
control of the Church of Scientology. Much of this evidence
and the conclusions about Hubbard's conduct were reported
extensively in the media in the New York Times, the Los
Angeles Times, the St. Petersburg Times, the Clearwater Sun
and additional publications. It is my assumption that as a
result of this extensive media coverage, at some time after
the Armstrong trial, and after the Court had issued its
findings of fact, the Criminal Investigation Division of the
IRS began an investigation. After the Armstrong trial, I was
contacted by several investigators from the Criminal
Investigation Division of the Los Angeles office of the
Internal Revenue Service.
6) I was first contacted by Mr. Al Lipkin, Mr.
Daniel Rocha, and Mr. Al Restuccia of the C.I.D. These
gentlemen informed me that they were conducting an
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investigation in connection with the Church of Scientology and
L. Ron Hubbard and they sought my cooperation. I told them
that I would give them my full cooperation and provide copies
of any documents, affidavits, exhibits, etc. which were not
under seal and which related to the Church of Scientology and
L. Ron Hubbard. I also told them that my clients, which
included numerous former high level Scientologists, including
Gerald Armstrong, William Franks, Laurel Sullivan, Howard
Schomer, and others would give their full cooperation in
connection with the investigation of the C.I.D. Mr. Lipkin
and either Mr. Restuccia or Mr. Rocha came to my office and
spent several days examining documents relative to this
subject. They thereafter contacted many of my clients.
7) At no time did Mr. Restuccia, Mr. Lipkin, Mr.
Rocha or any other member of the C.I.D., or for that matter
any other state or federal agency ever provide any information
to me as to the course of their investigation, the evidence
that they had collected, their conclusions, or anything else.
In fact, Mr. Restuccia, Mr. Rocha and Mr. Lipkin conducted
themselves with the utmost professional courtesy and
discretion, and never disclosed any information to me of any
nature or description during the course of their
investigation.
8) Subsequently, pursuant to its written policies,
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including the "Fair Game Doctrine," "Attack the Attacker" and
its "Black Propaganda" policies, the Church of Scientology
engaged in a world-wide smear campaign, through press
conferences, news releases, and publication of its Freedom
magazine claiming that myself and several of my clients
including Gerald Armstrong were in a massive conspiracy with
the IRS, the FBI, the United States Government, the Canadian
Government, the United States Attorney's Office, and sundry
others to destroy freedom of religion in America. These
claims are absurd on their face. Among the more specific and
ridiculous allegations of Hubbard and Scientology are that
C.I.D. agents offered or promised various benefits to myself
and my clients in exchange for manufacturing evidence and in
effect framing L. Ron Hubbard and his Church. Suffice it to
say that these allegations are completely unfounded, totally
false and have no basis in fact or reality. Indeed, the
allegations themselves reflect the paranoid condition of both
Hubbard and the Church which was noted by the trial judge in
the Armstrong. The judge specifically ruled that the Church
and Hubbard were "paranoid and schizophrenic," were actually
utilizing the "Fair Game Doctrine" right up to the time of the
trial to "destroy" Hubbard's perceived enemies, and that it
had engaged in forms of blackmail and extortion.
9) Upon information and belief, the present campaign
of the Church of Scientology alleging the conspiracy between
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myself and various governmental agencies, is simply an effort
to divert the ever-increasing compendium of legal decisions
which have reached the same conclusions as the court in the
Armstrong case with regard to the background and activities of
Hubbard and his Church. In order to avoid civil and criminal
sanctions for their past conduct, Hubbard is now engaging in
his classic Black propaganda campaign to attack and discredit
those who are engaged in litigation against him. In fact,
there is no truth in the absurd claims of him and his agents.
Signed under the pains and penalties of perjury this
24th day of September, 1985 under the laws of California,
Massachusetts, and Florida.
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