Declaration of David Miscavige

Wollersheim Litigation

Samuel D. Rosen, pro hac vice PAUL, HASTINGS, JANOFSKY & WALKER LLP 399 Park Avenue, 31st Floor New York, New York 10022-4697 Telephone: (212) 318-6000

Alan K. Steinbrecher, SBN 79201 PAUL, HASTINGS, JANOFSKY & WALKER LLP 555 South Flower Street, 23rd Floor Los Angeles, California 90071-2371 Telephone: (213) 683-6000









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Case No. C 332 027 Judge Charles W. McCoy, Jr.


DATE: October 15, 1999 TIME: 8:30 a.m. DEPT: 24

I, DAVID MISCAVIGE, declare and say:

1. I am over 18 years of age and a resident of the State of California. I have personal knowledge of the matters set forth in this declaration and, if called upon as a witness I could and would competently testify thereto.

2. I am, and since 1987 have been, the Chairman of the Board of Directors of Religious Technology Center ("RTC"), a section 501(c)(3) tax-exempt, non-profit Religious corporation, whose sole purpose is to maintain the orthodoxy of the Scientology religion. RTC is not part of the ecclesiastical hierarchy of Scientology, or is it involved in the day to day affairs of churches and missions of Scientology.

3. RTC was formed in 1982 to ensure that the Scientology religion was kept pure and true to its source. A primary reason for RTC's creation was to have a church organization that performed these functions separate from the provision of ecclesiastical guidance to churches and missions of Scientology around the world. Not only is RTC not involved in the governance of the international hierarchy of Scientology churches, but its existence and the performance of its functions depend on the fact that it is not part of that hierarchy.

4. RTC's authority stems from the ownership of the religious trademarks of Dianetics and Scientology. In brief, RTC protects and maintains these marks in three ways: A) ensuring that when something is represented as Dianetics or Scientology, that it actually is; B) seeing that any organization representing itself as Dianetics or Scientology (and using those names), while actually being something entirely different, is prevented from doing so; and C) seeing that anyone ministering Scientology, but calling it something else (a name other than Dianetics or Scientology) is prevented from doing so. Where necessary, RTC litigates to protect the proper use of the Scientology marks, and has prevailed in every instance.

5. RTC is exclusively concerned with the orthodoxy of the Scientology religion so that it forever remains faithful to the teachings of L. Ron Hubbard, the Founder of the religion and the one Source of its Scripture. Prior to the formation of RTC no other Scientology church performed this function.

6. As Chairman of the Board, the most senior position in RTC, I am uniquely interested in the standard application of the Scripture of Scientology as detailed in Hubbard Communications Office Policy Letters (HCO PLs) and Hubbard Communications Office Bulletins (HCOBs) and the spoken words of Mr. Hubbard


on the subjects of Dianetics; and Scientology as recorded on audio tape, video, film and in written transcriptions of these materials. I inspect and correct departures from the standard application of the Scripture of the religion. I also ensure that any attempted perversion of the technology of Dianetics and Scientology is rapidly dealt with, to keep the religion pure so that all people may benefit from the application of Mr. Hubbard's breakthroughs in the fields of the mind, the spirit and life.

7. A great deal has been made of my role and authority in the Scientology religion because of my position as RTC's Chairman of the Board. Let me emphasize that I am not "Chairman of Scientology." It is RTC, as a whole, that is responsible for the orthodoxy of the Scientology faith. It then follows that as Chairman of RTC, its most senior executive, I am entrusted with the ecclesiastical position that has the highest scriptural authority within the religion. My authority derives exclusively from that position and extends no further than RTC's mission. In summary, my job is to ensure RTC carries out its function of assuring the orthodox and proper use of the Scientology religious "technology." My duties are completely unrelated to, and I do not participate in, the ecclesiastic governance of the many churches of Scientology around the world. That function is performed by Church of Scientology International.

8. As Chairman of RTC, I am not the "successor" to L. Ron Hubbard. Plaintiff attempts to mislead the Court regarding Mr. Hubbard's and my role in the religion. My role is described above. Mr. Hubbard was the Founder of the religion and the sole Source of its Scripture. In that capacity, he will never have a "successor." I do not offer this distinction merely as a "corporate matter," so as to defend against plaintiffs allegations. Rather, this distinction is religious in nature and goes to the heart of Scientology beliefs. A primary and fundamental doctrine


of our faith is that the teachings be kept pure and that the only source of those teachings is Mr. Hubbard. Indeed, my role encompasses the responsibility of seeing the religion does not lose its original teachings and that no one ever assumes Mr. Hubbard's role as the source of its religious teachings. When plaintiff and his witnesses say I am "just like L. Ron Hubbard," that is the highest compliment one could receive in the Scientology religion, if their intention were to communicate that I am keeping the religion true to his teachings. Of course, their statements are accompanied by an inaccurate and negative description of Mr. Hubbard's character and role in the religion. But even if that were not the case, I would still reject their compliment as I simply am not and never will be what Mr. Hubbard was to the religion. By way of analogy, consider an apostate Roman Catholic claiming, in the context of litigation, that the Pope is "just like Jesus Christ, and assumed his role after Christ's death." Needless to say, this would be offensive to any Roman Catholic, as a matter of religious belief. The Pope may be the keeper of the Roman Catholic faith, but it would be heresy to say he was, in any manner, Christ himself. While neither I nor Mr. Hubbard, ever claimed Mr. Hubbard to be (or be like) Jesus Christ, the analogy is apt. L. Ron Hubbard is the Source of the teachings of the Scientology religion.

9. Church of Scientology International ("CSI") is the Mother Church of the Scientology religion and has been since its inception. CSI is responsible for the activities commensurate with such a role, including the ecclesiastical guidance of subordinate churches, dissemination and propagation of the faith and the defense of its activities, including external and legal affairs. Indicative of these distinct roles, RTC has approximately 60 staff, dedicated exclusively to the orthodoxy of Scientology theology. CSI, on the other hand, has well over a thousand staff members who deal with international dissemination efforts and provide ecclesiastical guidance and support to Scientology churches around the world.


These are the activities of international and middle management of the religion, which has an entirely different purpose and sphere of activity than RTC. Neither RTC nor I have any corporate authority over any Scientology church, including CSI.

10. The distinct nature of RTC's relationship to the Scientology hierarchical structure is even evident in its name. Churches of Scientology ministering to parishioners of the Scientology faith, are all called "Church of Scientology (followed by their name)." For example, "Church of Scientology of New York," "Church of Scientology of Miami," "Church of Scientology International." Each one is dedicated either to directly administering to congregants of the religion or to providing ecclesiastic guidance to churches serving congregants of the religion. There are two Scientology churches that are unique in this regard, in that they are not charged with ministering to congregants or guiding those that do. One is Religious Technology Center; the other is Church of Spiritual Technology ("CST"). Their names are unique in recognizing their separation from the hierarchy of Scientology churches. As stated above, RTC is strictly concerned with protecting the orthodoxy of Scripture and gains its legal authority to do this through the trademarks of Dianetics and Scientology. CST owns the copyrights of the religious Scriptures and through that legal authority, is exclusively engaged in archival preservation of the Scripture for the many future generations to come.

11. just as I do not manage the affairs of CSI, RTC's affairs are not managed by CST or any other entity. Corporate boundaries and responsibilities are distinct and firm. While CST does not manage the affairs of RTC, there can be no question that, as the owner of the copyrights to all the Scientology Scripture, bequeathed to CST by Mr. Hubbard at his death, CST and not RTC "owns" Mr. Hubbard's religious legacy. Plaintiff levels his accusations at RTC because of his motivation to target


me, regardless of corporate realities. The fact is, apart from the role Mr. Hubbard had in the religion of Scientology when he was alive, he also held distinct legal rights including copyrights for his religious writings that form its Scripture. Plaintiff's mischaracterization of both the succession of Mr. Hubbard's religious role, and the transfer of his legal rights, is contradicted by both the tenets of Scientology and where Mr. Hubbard's intellectual property rights currently reside. No individual anywhere in the Scientology religion personally owns Mr. Hubbard's rights or has succeeded to Mr. Hubbard's position as Founder. Hence, it is disingenuous to allege either play a role in corporate or ecclesiastic "unity."

12. I have been a member of the Scientology religion since 1971. In 1976, at the age of 16, I joined the Sea Organization ("Sea Org"). The Sea Org is a descriptive name for individuals who have pledged themselves to eternal service of the Scientology faith. Sea Org members express their commitment by signing contracts dedicating themselves to the religion for the next billion years, in accordance with Scientologists' belief that man is an immortal spiritual being. The Sea Organization is a religious fraternal order, like the Catholic priesthood, with its own rituals and traditions that exemplify and foster members' shared and deeply-held commitment to the religion. It confers no corporate or ecclesiastic authority. Sea Org members are staff in many churches of Scientology across the globe. Any authority they have in the church entity that employs them derives from their position in that church structure and not their honorary status in the Sea Organization. The Sea Organization is so named as it began aboard a ship at sea. Hence, even though now on land, members of the Sea Org carry forth a nautical tradition, sometimes wearing nautical uniforms and holding honorary ranks. I currently hold the honorary rank of Captain. Many other individuals also hold the rank of Captain in RTC, CSI and other churches of Scientology. Many of those who hold the rank did so before I myself was a Captain. Just as I do not "outrank" them, they do not


outrank" me. Moreover, most of the staff in RTC, of which I am Chairman, hold lesser ranks than Captain. Yet no Captain in CSI can, or would, issue orders to RTC staff or direct them in any way. That is because RTC is a separate church corporation and operates internally based on its own lines of authority. Similarly, one Sea Org member with the honorary rank of Captain is, in fact, a ship captain. The Motor Vessel Freewinds is home to Church of Scientology Flag Ship Service Org ("FSSO") and serves as a religious retreat for Scientologists. I could not, and would not, even attempt to issue orders to that Captain on the way in which he should navigate the Freewinds, or anything else for that matter. Nor could he, or has he ever attempted to, direct the activities of RTC or its staff from his honorary Sea Org rank of Captain. Any allegation that the "power structure" of Scientology stems from membership or rank in the Sea Organization is ludicrous. It is an invented story that ignores the realities of corporate separateness in an attempt to forward a legal strategy to extract monies from Scientology churches that have never had anything to do with Wollersheim. My authority stems from my corporate position, and I neither need nor use my rank in the Sea Org in the performance of my duties.

13. All of the foregoing facts were submitted to, and thoroughly reviewed by, the Internal Revenue Service ("IRS") prior to the 1993 recognition of the separate tax-exempt status of RTC. These facts were confirmed by the IRS, not just as of 1993, but retroactive to the date of incorporation of RTC in 1982, as recognized by the IRS in its recognition letter, a true and correct copy of which I attach as Exhibit A. The corporate independence and integrity of RTC was reaffirmed by the IRS while this case was on appeal last year. I attach a true and correct copy of that reaffirmation as Exhibit B.



14. I have read the plaintiffs Motion to Amend Judgment to Include Real Party Defendants and Judgment Debtors and the supporting declarations that accompany it. Wollersheim and his"witnesses" are dishonestly attempting to make me the centerpiece of this litigation through mischaracterization of my role in the Scientology religion despite the fact that I had no participation in the underlying litigation. I have never been a party to this action, and I have never met nor spoken with the plaintiff, Larry Wollersheim. However, seeing how mischaracterization of my duties and unsupported testimony could mislead Judge Shook into issuing his earlier order, since reversed by the Court of Appeal, I realize it is important I present the true facts. I am aware that other declarants and lawyers for RTC are providing substantive responses to Wollersheim's claims, supported by documentary evidence, which disprove all of his allegations and those of his declarants. However, because Judge Shook's ruling was based in large part on false and misleading testimony concerning me, I am making this declaration to correct the record. The cloud of these scurrilous allegations impinges on my ability to carry out my ecclesiastical responsibilities to millions of Scientology adherents around the world. The now-reversed ruling of this Court's predecessor inflicted so much damage that I was compelled to seek leave, to file a brief amicus curiae on appeal to demonstrate that the chill on the practice of my religion was of constitutional dimension. A true and correct copy of that brief is annexed to this declaration as Exhibit C.

15. I state the following clearly and unequivocally:

A) I have never met, spoken, or corresponded with Larry Wollersheim. I did not participate in any of the events which were the subject of his complaint in this action. His complaint raises allegations about events which began when I was 8 years old, and I was in my teens when


Wollersheim left the Scientology religion;

B) I did not direct, control or supervise Church of Scientology of California's ("CSC") trial strategy, trial, post-trial strategy, or post-trial proceedings in this case;

C) I did not attend a single day of the trial;

D) I did not order the destruction of Wollersheim's "religious counseling folders" or any other documents related to this litigation. Counsel has advised me that Wollersheim's counseling folders were turned over to the Court and remain there;

E) At the time of the Wollersheim trial, I was employed by Author Services, Inc. ("ASI"). Wollersheim claims RTC is responsible for his judgment against CSC by alleging RTC is CSC's alter ego, because I am RTC's Chairman and act as the "dictator" of all Scientology. While Wollersheim's characterization of my authority is false, the fact is I was not employed by RTC until March of 1987, almost a year after the Wollersheim trial. Prior to that date, at no time did I take any actions to direct, supervise, manage or administrate the affairs of RTC. During the time of the Wollersheim trial, while I worked at ASI, neither Wollersheim nor any of his declarants (Aznaran, Prince, Young) worked with me or were in a position to observe me conduct my daily activities;

F) Since joining RTC, and holding the position of its Chairman, I have not directed or controlled the Wollersheim litigation and nor has any staff of RTC until, of course, Wollersheim tried to make RTC a party. Wollersheim. and his declarants who allege otherwise have no personal knowledge to say otherwise. Since becoming Chairman of RTC, neither Wollersheim, nor any of his declarants worked with me or were in a position to observe me conduct my day-to-day activities;


G) RTC is a separate, individually recognized tax-exempt church that shares no personnel, no corporate or ecclesiastical function, and no bank accounts with any other church of Scientology. It occupies its own offices and maintains its own segregated corporate records. It acts, and always has acted, exclusively in its own name, and not by or through CSC or any other entity. It has never exercised control of CSC, did not receive any assets from CSC, and performs no function CSC ever performed; H) I do not disregard the corporate lines of authority, responsibility or control of any church of Scientology. Contrary to the allegations of Wollersheim's declarants, lines of corporate authority in RTC, and its relationship to other churches of Scientology, are firm and I see to it they remain that way; I) The same allegations being made by Wollersheim, and his declarants, in an attempt to hold RTC responsible for his judgment against CSC, have previously been made by other civil litigants in their attempt to obtain windfall judgments from individual churches of Scientology, with which they had no relationship. Because of these allegations, the IRS review of RTC and all other churches of . Scientology, had as a primary focus of investigation the corporate and financial integrity of those churches. After the most exhaustive review of any non-profit organization in history, the IRS found such allegations to be without basis, not only with respect to Mr. Hubbard's relationship with the churches of Scientology when he was alive, but with respect to the relationship and integrity of all Scientology churches since that time. The result of their investigation was the recognition of the tax-exempt status of RTC (and many other Scientology churches) as an independent and separate corporation.


16. The above paragraph responds to the substance of all allegations offered by Wollersheim and his declarants. Beyond that, Wollersheim's and his declarants' "evidence" is littered with other voluminous, scandalous and sensational allegations; about me having nothing to do with this case. In doing so, they have only offered more fiction in an attempt to give greater credence to the misstatements they have provided concerning my "relationship" to Wollersheim, a person with whom I have had no relationship. That is, they recite events that never took place, but if they had occurred or were true, would seem to confirm the allegations relevant to this case. I am left in a position of "my word against their word," which is precisely the effect I feel they have tried to create. It is only for this reason I feel it important for the Court to understand not only the truth concerning these false accusations, but to understand Wollersheim and his declarants' efforts are orchestrated pursuant to a well-used litigation strategy that has been employed against L. Ron Hubbard, various churches of Scientology, and me, for years - namely, the gathering of apostates in search of money who are then used as a traveling road show to present packaged, yet false testimony, concerning Scientologists, churches of Scientology and me. The primary motivation behind this strategy is personal enrichment. But to avoid being tainted by that obvious, yet discreditable reason, it is necessary for them to level voluminous, yet. unfounded charges, at the individuals and entities from whom they are attempting to extract money.


17. Most notable in the declarations filed concerning RTC, CSI and me, is a complete lack of any documentary evidence to support the most serious charges. Here, as has been done many times in the past, several individuals are employed to swear out declarations appearing to "independently" corroborate each other. And just as I have experienced in the past, these "corroborating" witnesses uniformly fail to inform the Court of their common and mutual interests. They are neither independent nor objective. Each and every one is connected to each other in their "anti-Scientology" business, with the purpose of extracting large sums of money from Scientology churches. This is a fact beyond dispute. Indeed, if asked, I do not believe even they would deny it, since there is too much evidence supporting their true motivation. But just as certainly, they avoid candor in reciting these circumstances. Instead, it is easier to make no mention of it because then they can say they did not really lie, since, "We didn't say we didn't have a personal stake in this litigation." Not one of the proffered"witnesses" has not already tried to extract large sums of money from Scientology churches and RTC.

18. This tactic is part of a common, and well-known strategy of"anti Scientology" litigation. In earlier years, with litigation against Scientology churches, Mr. Hubbard, and me, the same tactic was employed. Indeed, Wollersheim uses some of the very same witnesses as his predecessors in this tactic, notably Gerry Armstrong. Then, as now, there existed a stable of apostate Scientologists who acted as "expert witnesses" regarding Scientology. Then, as now, these same witnesses testified in every anti-Scientology case, each providing "corroborating evidence" for one another. Ultimately, the cases were settled on a "global" basis, meaning many cases were settled for a single monetary payment, its precise allocation to be decided by the attorney for the plaintiffs, since they were all represented by the same attorney. While confidential in nature, plaintiffs ultimately disclosed the sum and exact amounts paid to each individual, and that list showed that those "witnesses" received a "cut" of the settlement, even though they were not parties in any of the suits.

19. In raising the allegations they have, Wollersheim, and his declarants; have also failed to inform the Court their allegations are not new, but rather the exact same ones leveled by other apostates in earlier years. Allegations concerning "unity


of control," "violation of corporate boundaries," and " control through the Sea Organization" have been made repeatedly over the years by those attempting to extract money through litigation. I, and many others, have already had to defend against these very charges, at great effort and expense, and every one of them has already been disproved, but not before causing Scientology churches and myself a great deal of harm. It seems not to matter to Wollersheim and his declarants that these allegations have been proven false. Instead, they seem to feel that by repeating something "alleged" in an earlier time, their claims will more easily be believed since, "others have said it, and we are now reconfirming it." What is actually happening, and why their statements seem to corroborate one another, is they are reviewing those earlier (proven false), allegations and then writing declarations "consistent" with those allegations. This tactic has been admitted to by a former litigant, Vicki Aznaran, whose former testimony given before her admission of this tactic, is being presented now by Wollersheim.

20. Most offensive to me are the allegations that I or any church has taken any steps to harass the plaintiff or his witnesses. It is I and others in the Scientology religion who have been, and currently are being harassed in the most despicable manner possible. I am aware that as a member of a new and minority religion, what I am experiencing is nothing new in history. Indeed, any prominent member of society is subject to attack and scrutiny. As such, I do not respond to every allegation or threat leveled at me. If I did, it is highly likely I would spend my entire life responding to charges such as those in this case.

21. It is for this reason I did not respond to Wollersheim's charges against me during the earlier proceedings in this Court. I held the view that the objective facts were sufficient to disprove the false claims, especially since I had already defended against those same claims in earlier years, and was vindicated. However,


after seeing how a Court could be misled based on rhetoric by plaintiff's counsel interpreting my failure to respond as an "admission of guilt," I cannot stand quiet any longer. Even though the Appellate Court reversed the earlier decision, its impact was still felt by me. Indeed, based on Judge Shook's findings, which were based exclusively on plaintiffs "evidence," I was subjected to a lawsuit concerning a matter to which I was not even remotely connected. After this Court's predecessor's ruling, Gerald Armstrong (one of Wollersheim's declarants) filed a lawsuit in Nevada, concerning something a Scientologist in Texas allegedly said about him. I was named as a defendant in that action based solely on Judge Shook's finding that I control all aspects of Scientology. This illustrates the real purpose of plaintiffs instant motion - to create a finding that can be used to harass me anywhere in the world, concerning anything allegedly done by any Scientologist, at any time, under any circumstances. In this way, they hope to substantially burden my ability to carry out my functions as Chairman of RTC.

22. The aforementioned case was ultimately dismissed and Armstrong was found not credible. Only later did I find out, through the sworn deposition of Armstrong in another case, that he had been paid $100,000 through FACTNet Inc., a computerized data base created by Wollersheim to support anti-Scientology litigants, and Robert Minton (director of or a member of the Board of Directors of FACTNet) to bring that case against me. I am also informed that it is Minton and FACTNet who have paid all of the witnesses on behalf of Wollersheim here, as well s his attorneys, and that Minton has a stake in the litigation himself. From my perspective, anti-Scientologists' harassment of me merely because of who I am, is ad enough. But it is particularly burdensome when they make false statements about me in a legal proceeding for compensation. In effect they are attempting to buy a judicial finding with a barrage of purchased false testimony, not only in an attempt to gain personal profit, but to gain an advantage to further harass me


through erroneous legal findings based on their false testimony.

23. The personal attacks on me, as well as many other irrelevant and malicious falsehoods that have been brought in this case, have largely been introduced through declarations of Mr. Prince, Ms. Young and Ms. Aznaran. All of them left Scientology years ago, and have no personal knowledge of the current activities of me, RTC, or any other part of Scientology. Neither Jesse Prince, Stacy Young nor Vicki Aznaran ever worked with me or even near me during the entire time I have been employed by RTC. They are all, however, generally aware of the fact that, through the years, attempts to malign me personally and create a false picture of the religion with sensational allegations have been the stock-in-trade of litigants opposing Scientology churches and the former Scientologists upon whom counsel rely to swear to matters they do not know and to make false allegations for which they have no basis.

24. There is no question that I am prominent in the religion of Scientology. Wollersheim and his declarants boldly assert this stems from my relationship with Mr. Hubbard. After all, nobody would question Mr. Hubbard's role in the religion as its Founder. Having established that, they merely assert I took that same position. However, even if true (and it is not), they fail to explain how I could have come to that position. I am struck by how the plaintiff's allegations can make the normal seem abnormal. I am a dedicated Scientologist, true to the teachings of Mr. Hubbard, and I am now responsible for the orthodoxy of the faith. Mr. Hubbard has passed on from this life and it is not unusual that somebody would be responsible for the orthodoxy of the religion he founded. Yet plaintiff and his witnesses give sensationalized testimony to make this sound corrupt or somehow improper. They do so by attempting to translate the role of a founder of a religion into a "Managing Agent," and then to allege I am the new " Managing Agent."


They ignore the fact that Scientology is a thriving religion with spiritual goals. Comparisons to secular business are offensive, yet only in that context can plaintiff and his witnesses hurl their accusations with any perceived credibility. Imagine the Dalai Lama being referred to as the "Managing Agent" of Buddhism. It is more than offensive - it's a mischaracterization, and one invented in the context of civil litigants attempting to achieve windfall judgments. Indeed, this mischaracterization began as a legal strategy, and it continues to be employed to this day. I will detail precisely how it came to be.

25. Scurrilous personal attacks against me launched by plaintiff and his witnesses are part of a long history that began only after I was perceived as someone who was trusted by Mr. Hubbard and had the respect of Scientologists. Those who attack the religion had long operated on a strategy of harassing Mr. Hubbard as a litigation tactic. When they could not reach him, they targeted his closest associates. This became endemic after Mr. Hubbard passed away in early 1986, and from that time forward, I have become the face in the bull's-eye for anti Scientologists. The sort of scurrilous personal attacks launched by Wollersheim's counsel is the latest in a pattern in litigation over the years. Plaintiff and his witnesses have attempted to drag me into literally every piece of litigation against, or brought by, any Scientology church or parishioner.

26. The declarants in this case are part of a very small number of individuals who attempted to take advantage of the religion at times in its history when it was in upheaval. First, in the early 1980's when the Founder of the religion had gone into seclusion, staff of the autonomous, and now disbanded Guardian's Office ("GO"), discredited Scientology's reputation internationally. When some of their acts became public, attorneys and litigants hoped to capitalize on the fallout and launched a wave of civil suits. Second, in the mid-1980's, after the Founder had


passed away, there was an effort to alter the Scripture of the religion. It was in this context that the actions of Vicki Aznaran, Jesse Prince, Gerald Armstrong and Stacy Young were played out. Now, funded by Wollersheim, they seek their retribution. Why they have chosen to lie, and why they focus their lies on me personally, begins with the dismantling of the GO.


27. As stated earlier, I joined the Sea Organization in 1976, at the age of 16. I was obviously a devout Scientologist and, contrary to what one might think, I was a first generation Scientologist. That is, my involvement in the religion was not solely because it was my parents' chosen religion. Rather, I was a major reason for their becoming involved in Scientology in the first place. As a child, I was ill much of the time, including chronic asthma. While I was treated by many medical specialists, the symptoms never ceased. It was because of this that I first came in contact with the Scientology religion, and through its counseling - called auditing - I was able to locate the spiritual factors affecting my body. I no longer suffer from those maladies. Although the term is often overused, it is not here - I experienced a miracle and as a result decided to devote my life to the religion. By the time I was 13, I was a highly trained auditor. By the age of 15, I was Clear. I attended public high school, where I was sickened by the declining moral situation in the schools illustrated by rampant drug use and I came to the realization that my future lay not in the secular world, but in my religion. Thus, in 1976 when I turned 16, and of age to leave school, with my parents' consent, I left home to pursue my calling as a church staff member. My family (all Scientologists) remained in Philadelphia.

28. For the next several years, I was employed by Church of Scientology of California. I worked in various capacities, initially in Florida, at the Flag Land Base,


the religion's Mecca. By 1977, I was one of a few dozen staff working in the same location as L. Ron Hubbard, in La Quinta, California. At that time, Mr. Hubbard was establishing facilities to make religious training films, that visually depicted the practice of the religion. Among his many other accomplishments, Mr. Hubbard was also a professional photographer and in the following months, trained me in photography and I became the cameraman for those films.

29. Later in 1979, I became one of Mr. Hubbard's messengers, along with a dozen others, with duties much like that of an executive assistant. Both as a cameraman and a messenger, I had the opportunity to work closely with Mr. Hubbard several hours a day. This was a period of great advancement in the religion of Scientology. Mr. Hubbard, however, found that his time was so occupied with film production and similar tasks, that he was unable to pursue his role as the Founder and "Source" of the religion. In the beginning of 1980, Mr. Hubbard went into self-imposed seclusion to continue his Scientology researches, free from the distraction of day-to-day affairs.

30. With Mr. Hubbard in seclusion, I went to work for the church organization whose function was to ensure that the ecclesiastical governance of the religion was in complete alignment with the tenets of the religion. Throughout 1981, I was responsible for directing missionaires to aid churches around the world in the performance of their religious functions. I was subordinate to several individuals in the church organization where I worked.

31. As a result of my duties in assisting churches to serve their parishioners, the activities of the GO came to my attention. The GO acted independently and was found to be responsible in many cases for destabilizing churches. They had been taking ministerial staff from churches and transferring them into the GO. Unlike


many church staff members, who worked full-time in Scientology churches, living and eating in communal berthing and dining facilities, most GO staff worked a 9-5 schedule. Many of these GO staff moonlighted in personal businesses they had established. It was discovered they were recruiting staff of various Scientology churches to leave church staff to work in their private businesses.

32. As mentioned, at that time I was involved solely in missionary matters and had no responsibility for, or knowledge of, legal affairs, public relations or finance. The evidence of GO malfeasance in such affairs, however, came to my attention and the attention of others working with me, including the existence of lawsuits involving the GO and the Founder.


33. During the late 1970's to 1980, while producing religious training films, as well as 1980 to his passing in 1986, while in seclusion continuing his research and writing, Mr. Hubbard lived away from his wife, Mary Sue. This point is important. While Mr. Hubbard was the Founder of the religion, he did not hold any corporate position. His role was the inspiration and Source of the religion's teachings. Mrs. Hubbard was the head of the Guardian's Office. As the Founder's wife she was, of course, held in high regard in the religion. The GO was, in fact, answerable to no one except those in the GO, and Mrs. Hubbard held the highest position in the GO.

34. A description of the history, power and authority of the GO is helpful in understanding the concerns raised by this office. The GO was established in March of 1966 because legal and other external-facing matters were consuming the time and resources of churches of Scientology. In particular, those responsible for the ministry of the religion in Scientology churches were being distracted from their primary functions of ministering to the spiritual needs of their expanding religious communities and expanding their organizations. During the 1970's and early 1980's, the GO operated as an entirely separate organization that dealt with the legal affairs of all churches. The GO operated in complete secrecy and conducted its affairs independently of other church personnel.

35. My involvement in what ultimately resulted in disbanding the GO arose from my position at the time. We forwarded a request for information regarding legal affairs to the GO. We were informed by GO executives that our request for information was not appreciated, and that the GO was autonomous and had no intention of responding to the request. Thus began an investigation of GO activities, which would soon result in upheaval. While I was subordinate to several persons in the church organization where I worked, there was no mechanism to look into the GO, so the duties fell to me to supervise missionaires to undertake the investigation into the many matters of concern now coming to our attention.

36. In March 1981, in an unprecedented move, we sent people to the GO headquarters in England to conduct an investigation. Access to the GO had always been blocked to non-GO staff, but the GO in England assumed we had authorization since no one until that time, outside of GO staff, had the audacity to attempt to examine GO affairs.

37. What that investigation uncovered confirmed our worst suspicions. What the GO was doing sent a shock wave through the rest of the church staff, including myself. For example, GO staff had carried out illegal programs, such as the infiltration of government offices for which 11 members of the GO were ultimately prosecuted and convicted. There were also examples in which GO staff had used unscrupulous means to deal with people they perceived as enemies of the religion - means that were completely against Scientology tenets and policy, not to mention the law. Such treatment was also the GO's response to church staff members who inquired into their activities or were perceived by the GO to be interfering with GO affairs. The GO had grossly mismanaged the legal affairs with which it had been entrusted and displayed a disdain for the basic policies of Mr. Hubbard by which a Scientology organization is supposed to be guided. Whatever else the GO was, it was not Scientology, and it was not adhering to Scientology policy. Moreover, the GO had withheld from the rest of the church the darkest of its secrets - the criminal acts committed by GO staff against the United States government and others. We only learned of these crimes when we read copies of GO documents attached as exhibits to court papers filed by litigation adversaries. These documents had been removed by the GO from its own files to continue to hide such criminality from other Scientologists. While the FBI had seized these documents in a 1977 raid, the GO had obtained an order sealing these materials from the public which, of course, included non-GO staff. During a short period, the Court had lifted its sealing order and litigation adversaries obtained copies. That is why we were only able to start discovering these acts once we located, in GO files, copies of pleadings of civil litigants attaching the evidence. Indeed, they were kept a secret from all staff and parishioners of Scientology churches.

38. When further investigation proved the documents to be authentic, it was clear to us that we had no choice but to dismantle the GO and persuade everyone who had violated religious policy or the law to resign. These activities ultimately led to a complete disbanding of the GO.

39. Those of us involved in the investigation of the GO briefed several other longtime Scientologists; on staff, who were not part of the GO, on the GO's criminal and other unethical conduct. Together, we planned a series of missions to go into


the GO and reform it. In July, 1981, a matter of weeks after we had uncovered what was going on, and with no advance warning to the GO, a coordinated series of missions were sent out concurrently to begin that process.

40. To reform the GO, we relied on our mutual beliefs and dedication to the Scientology religion and its moral and ethical codes to try to persuade the GO members that the policies of the religion did not condone their conduct and, that for the sake of the religion, they must resign. Before proceeding any further, the agreement of the head of the GO had to be obtained. That task fell to me. I personally met with and persuaded Mary Sue Hubbard to resign from her position as the senior executive in the GO. I did not, nor could I, fire her, and I certainly did not rely on my rank in the Sea Organization as a measure of power or authority. At the time I held one of the lower ranks in the Sea Organization; Mrs. Hubbard was a Captain. At first, Mrs. Hubbard was not willing to resign. Eventually she did so. However, the GO did not simply capitulate.

41. Within a day of her resignation and as a result of protests by GO staff, the resignation was revoked, accompanied by a condemnation of the efforts to investigate and reform the GO. Scores of GO staff responded, locking the missionaires out of their premises. Ultimately, after some days, I was able to meet again with Mrs. Hubbard and again persuaded her to resign for the good of the religion. That ended the last vestige of GO resistance.

42. During the investigation of the GO, we discovered that senior GO personnel were attempting to expand their authority through an alliance with Laurel Sullivan, who headed what she called the "MCCS project." Specifically, Sullivan ad been seeking advice from the legal department of the GO and was making plans to establish new trusts and for-profit entities to place even greater control of


churches of Scientology into the hands of the Guardian's Office to extend the Gas power and dominance of the religion into the future. This came at a time when several of these GO staff were defendants in criminal proceedings and some were even expected to go to jail in the near future. Sullivan's "MCCS" plan would have left them in their positions, and in directorships of all church corporations, while serving their sentences and established them in positions of authority in the church structure upon their release.

43. As part of the GO clean-out, Sullivan was briefed on the GO activities already uncovered. She responded that the GO was completely justified in committing the criminal acts exposed by the government and did not agree that the GO staff responsible for these acts should be removed. She insisted the Guardian's Office maintain total control of churches of Scientology, regardless of what they had done. As a result, Sullivan became the subject of internal ecclesiastical justice proceedings and her "MCCS project" was disbanded along with the GO. Many allegations have been made concerning the "MCCS project" and its role in the corporate restructuring of churches of Scientology worldwide. Because of my knowledge of the GO upheaval, and of Sullivan's involvement, I personally know that no plans of the "MCCS project" were ever implemented. In fact, documents that were later released revealed that Sullivan, who left the religion shortly thereafter and became an apostate in a splinter church of Scientology and an adverse witness against Scientology churches and me, long ago admitted to law enforcement officials that the corporate restructuring actually impLemented was entirely different from that envisioned in her "MCCS project."

44. As is true when any Scientologist has committed gross violations of the religion's policy, the internal, ecclesiastical justice system of Scientology is employed. That was precisely what occurred with respect to GO staff whom the


investigation revealed to have breached policy. Following adjudication in that system, they were removed from their staff positions. Those who committed crimes were prosecuted and convicted in the criminal courts.

45. Dismantling the GO had far-reaching ramifications for the religion. While Scientology churches ministering to the training of Scientology ministers had always come under the authority of the religion's ecclesiastical management, the lower level churches providing introductory Scientology services - called Missions - had always been in the purview of the GO. Indeed, it was Mission tithes that provided the GO with its funding. When the GO itself became corrupt, it abdicated any responsibility for the Missions. The investigation into the GO revealed that certain "Mission Holders" (those in-charge of a Mission), were not operating in accordance with Scientology policy. Whether the GO looked the other way as long as the tithes kept coming, or merely failed to notice, never became clear. What was clear was that any personal profit from donations to Missions did not comport with the ethical codes of the religion, let alone the law.

46. Following the disbanding of the GO, Bill Franks, a senior church official at the time, aligned himself with these few corrupt Mission Holders. In December of 1981, what began as a conference conducted by Mr. Franks to address expansion plans for the religion turned into a "mutiny" by these Mission Holders, angered by directives to cease their financial misfeasance. In an attempt to gain credibility, Mr. Franks announced to the Mission Holders at this convention that it was he who had disbanded the GO. Of course, the clean-out of the GO had been very popular with all Scientologists who recognized what the GO had been doing was contrary to the very aims of the religion. Having gained the "trust" of the few corrupt Mission Holders, Mr. Franks then agreed to their plans to make themselves an outside advisory board to ecclesiastical management, and to seek funds from the


reserves of Scientology churches.

47. Until then I had never spoken publicly of the GO investigation or disbanding. My actions were motivated only by religious conviction. Nevertheless, word had filtered out and, as a result, attendees at this convention challenged Franks and his actions, citing my involvement in the GO disbandment Apparently Franks admitted it was not he who had headed up the dean-out and the Mission Holders asked me to attend their conference to give a briefing on what had really happened with the GO. I did. As for their attempt to grab power and money, I told them what any Scientologist would have said: That they had to maintain personal integrity and be true to the writings of L. Ron Hubbard, stop all in-fighting and stop tying to personally profit from the religion. Ms. Young mischaracterizes my participation as Master of Ceremonies introducing others who gave briefings at a later Mission Holders conference held in San Francisco, in 1982. I was invited to * San Francisco conference due to my earlier role with- Mission Holders in dispersing the Mission Holders' mutiny and because I was known to them as a Scientologist true to the religion and the actual teachings of its Founder.

48. Stacy Young points to the transcript of the San Francisco Mission Holders Conference as "evidence" that I controlled the entire hierarchy by virtue of my honorary Sea Org rank. The transcript itself disproves Ms. Young's assertion. It clearly shows my honorary rank at the time as Commander and also shows two other speakers as Captains, both of whom outranked me. Moreover, contrary to Ms. Young's characterization that the San Francisco Conference suggests that corporate lines of authority were irrelevant, the precise opposite is true.

49. Today, no one involved in the criminal activities of the Guardian' s Office serves on the staff of any church of Scientology. Lists were kept of the names of


individuals found to have been involved in illegal activities, those who condoned the activities and those who were in a position where they should have known and did nothing to stop the illegal activity. Any such individuals who were found at that time to be on staff were dismissed. Since that time, the policy in all Scientology churches prohibits any individual involved in the criminal activities of the GO from ever again serving on the staff of any church of Scientology.

50. Insinuations to the contrary, this was not a "power push." Our concerns were religious and we applied religious tenets to rectify the situation. Of this, there can be no question. Other than the unrepentant few, even the GO staff involved acknowledge this. By way of example, following the GO disband, I remained friends with Mrs. Hubbard who, as a Scientologist, recognized I was acting for the benefit of the religion.

51. When the GO was disbanded, I returned to what I had been doing. I did not "assume" a higher position. I had several direct superiors. As to why I, and not they, initiated the clean-out of the GO, I can only offer this: Everybody knew something had to be done. There was, of course, great concern as to what would happen should we fail. Certainly we would have been expelled from the religion, but just as certainly we all knew that the GO did not represent or act in accordance with the religion of our Founder. To me, there was no choice. I was convinced there would be no religion if we did not take action. In the end, I was willing to do so. Others were not. This may be difficult to understand in anything but a religious context. But to a member of the religion, it is not difficult to grasp. Scientology Scripture was already clear on the need for a high level of ethics. This represented the first time since 1950 that Mr. Hubbard was not "on the scene," and unfortunately, some saw it as their opportunity to gain personal profit while others simply refused to take action to rectify the situation.


52. While I did not promote my involvement in the matter, the dismantling of the GO was an extremely significant event in the history of the religion. As word began to filter out, and as a result of having acted to protect the religion, I gained a great deal of respect from Scientologists - both staff and parishioners -who perceived me as someone who had acted to keep the religion true to the ideals of its Founder. This was the beginning of a series of events that made me the target of every anti-Scientologist.


53. As already described, Mr. Hubbard was in seclusion, researching and writing, and did not hear about the fate of the GO until months later. Indeed, a few church staff were still concerned about what he might think, particularly since his wife had been involved. Those who were concerned, however, were those who took no initiative and stood on the sidelines. Those allied to the GO like Laurel Sullivan and Gerald Armstrong left church staff shortly thereafter, as did the corrupt Mission Holders whose illicit activities were curtailed. It seems they were more interested in maintaining the status quo and their positions than in the actual practice of the religion. Indeed, it was these persons - the ones who did not act and the ones who insisted on preserving GO authority despite the illegal Activities - who are the source of the allegations made about me today, including the claims in this litigation. Many of them joined splinter churches and made attempts to take over the religion, literally, through litigation.

54. Ironically, those suits arose from the now-exposed conduct of the Guardian's Office. Since the GO had been cleaned out, one would have assumed the plaintiffs would be thankful. However, it soon became apparent that money, not vindication, was their goal. Indeed, most had never had any association with the GO. But the sensational nature of the GO crimes was extremely useful in


creating a negative atmosphere for the churches. They would repeatedly cite Go acts and then merely invent something done to them to create a civil claim. As the GO had engaged in illicit acts, they hoped courts would disbelieve the churches concerning their claims. Unfortunately, in many cases, the courts were swayed. Even more ironic was the fact that many of the individuals removed during the GO clean-out still had designs on running the church, and they aligned themselves with these litigants to testify against Mr. Hubbard, Scientology churches and me regarding their "knowledge" of GO acts - the ones they had committed or supported.

55. One of the most frequent and most inflammatory allegations civil litigants have made is to allege that "Fair Game" is being practiced today on the basis of what the GO did in the 1970's, dredging up their illicit activities and falsely ascribing them to those responsible for the GO's eradication. Since 1981, I have heard allegations of "Fair Game" at least a thousand times, but I had never heard the term in my life until I encountered it in civil litigation. To this day, I have never heard the term used inside the church. Nor have I ever heard it from anyone, including civil litigants, who actually had anything like what the GO did actually done to them. Let me be very clear about this. What the GO did was not "Fair Game." What the GO did was illegal. No real Scientologist would ever condone or even consider such conduct. Wollersheim, along with his declarants, has resorted to making such generalized "Fair Game" allegations by falsely ascribing GO-like conduct to the people who are responsible for ridding Scientology of the GO. He has done so not for the purpose of substance, as there is none to such allegations, but rather for the purpose of stigmatizing my religion and me.

56. The allegation that I or anyone else in the church behaves like the GO is abhorrent. When we became aware of the GO's activities we were even more


outraged than law enforcement officials and others outside the church. The authorities indicted eleven people; we conducted internal ecclesiastical justice proceedings that led to the discharge of 800 people. We are not the GO; indeed, the only involvement we ever had with the GO was to obliterate it. It is unconscionable that accusations of ongoing GO-like activities continue to be made, particularly when the accusers include GO sympathizers.

57. Upon the dismantling of the GO, church executives within the ecclesiastical hierarchy assumed responsibility for the legal affairs which the GO had mishandled. This era was marked by great concerns about the religion's future in the aftermath of the GO, and it was against this backdrop that newly assigned personnel began to examine the legal affairs that had been the exclusive province of the GO for 15 years. Not being experienced in such matters, they retained legal counsel to review the structure of the entire religion. I know the concern was not "gutting CSC" to " avoid Wollersheim," or anybody else for that matter. The history that Wollersheim ignores concerned events of far greater importance than his case. In fact, at the time, I had never even heard of the man. I was not involved in that restructuring, but I am aware of the events that led up to it. I shortly thereafter resigned from church staff for 5 years, as described later in this declaration.


58. When Mr. Hubbard finally did hear of the disbanding of the GO, his reaction was twofold. On the one hand there was the satisfaction that ethical Scientologists had shown initiative and acted. In a later recorded message to Scientologists the world over, he said these words: "So forgive me for not managing the Church when it almost fell into hostile hands. "It all came out alright.


Because real Scientologists made sure it did. My faith was justified." On the other hand, Mr. Hubbard also expressed concern. He had no intention or desire to become engaged in active church management He was already 70 years old, and believed it was of paramount importance that he complete his research into Man and the Spirit. The actions of the GO and Mission Holders, and the inaction of some ecclesiastical staff caused him great concern about the future of the religion and how it would accomplish its mission in his absence and when he was no longer alive in body.

59. Mr. Hubbard insisted on handling his own affairs with regard to his relationship with the religion as its Founder. As the source of the religion's Scriptures, Mr. Hubbard held the intellectual property rights of Dianetics and Scientology, through the ownership of both the religious trademarks and the copyrights to the Scripture. To accomplish his goal in seeing to the future of the religion he founded, Mr. Hubbard employed his own attorneys to be the architects of his estate planning.

60. It was under these circumstances two brand new churches came into being. While every religion accomplishes its objectives and carries forth its spiritual mission through ecclesiastical authority, they must also operate within the secular structure of corporations in relating to the outside world. Rather than "mere window dressing," as has been alleged by Wollersheim's declarants, the need for real, precisely defined, distinct and rigid corporate boundaries was of paramount importance to both the religion and to Mr. Hubbard.

A)Having learned of GO corruption, and having learned that several responsible persons in ecclesiastical management had


failed to act, Mr. Hubbard determined that the future of the religion could not depend on a management body alone. Despite clearly articulated Scripture on proper conduct and ethics within Scientology churches, they had failed to apply that Scripture. Mr. Hubbard reasoned 'that by virtue of being involved in day-to-day activity - be it internal affairs, or handling external affairs such as legal, public relations and financial matters - staff would be subjected to the pressures and the give and take of performance expectations and routine flaps that any corporation confronts and might "cut comers" with regard to the purely orthodox concerns of Scientology. Scientology is a unique religion in that a great deal of its practice includes the application of its principles in one-on-one spiritual counseling, called auditing. Indeed, this along with training on the subject to become an auditor, are the central practices of Scientology. This application, in addition to the theological purity of the religion as set forth in books and recorded lectures, is what is meant by the orthodoxy of the religion. To ensure he could maintain the standard and orthodox practice of the religion, Mr. Hubbard had registered all of the Dianetics and Scientology trademarks. While ecclesiastical means would most often suffice to see to orthodoxy, trademarks also provided a legal means to prevent unorthodox use. Over the years, many individuals had attempted to create splinter churches of Scientology, using a perverted version of the subject. Through the legal power of the trademarks, such offshoots could be prevented or at least prevented from misleading people by representing themselves as orthodox Scientology. Mr. Hubbard


had no desire to be personally responsible for enforcement of these trademarks, and so decided to donate them to the religion. But, for the reasons given above, he insisted that any church to which he donated them be entirely independent of any management body involved in the day-to-day affairs of ministering to the religion and its parishioners. Religious Technology Center was created for this reason - to receive the Dianetics and Scientology trademarks and thus be responsible only for orthodoxy.

B) Mr. Hubbard also wanted to ensure his copyrights to the extensive library of Scientology Scripture would be used for the benefit of the religion, and not for the benefit of any one person or persons. Indeed, Mr. Hubbard's wife and children are devout Scientologists and they recognized his role as Founder of their religion. And again, while ecclesiastical means would usually be all that was needed to maintain orthodoxy, Mr. Hubbard had always employed the copyright laws as a means to legally enforce his rights to prevent alteration of his materials by others. Further, Mr. Hubbard had long spoken of archiving the Scriptures of Scientology in the event of catastrophe. However., despite numerous plans and directives over a period of decades to do so, nothing significant had ever been accomplished. Harking back to the concern for the future of the religion, in light of events in the early 1980's, Mr. Hubbard further reasoned that yet another independent church body should receive his copyrights. Even though RTC would be the recipient of his trademarks, and charged only with the orthodox application of


the religion, Mr. Hubbard felt that even those duties could distract them from the ultimate preservation of the religion through archiving its materials in indestructible form. In an abundance of caution, should any church organization be corrupted again, he determined that no church should hold both the copyrights and trademarks. While RTC would be separate from the ecclesiastical hierarchy, it would still be engaged in duties necessary to keep the religion pure, including litigation to enforce the trademarks where needed. Thus, to receive his copyrights, Church of Spiritual Technology ("CST") was formed. CST's function is purely archival in nature. CST preserves the written Scripture on stainless steel plates, the recorded word on nickel plated recordings, and places all of it in titanium containers stored in vaults constructed to withstand nuclear explosions or other cataclysmic events. CST also stands as the ultimate safeguard of the Scientology religion should the entire religion, even RTC, ever deviate from the pure Scientology religious teachings.

61. The GO had already demonstrated the danger of corrupt officials. While powers of persuasion and internal ecclesiastical justice procedures had corrected the GO problem, this "safeguard" was considered insufficient should a similar problem recur in the future. Mr. Hubbard reasoned that involvement in day-to-day affairs was the only way any individual could ever be seduced into unethical activity. Hence, Mr. Hubbard suggested that these new church corporations should have Trustees. As Trustees, they would have no authority in the conduct of corporate affairs, with neither the ability to give orders or directions, nor perform any corporate activities whatsoever. Their only authority would be to appoint or


remove directors. Since they would not be involved in corporate affairs if it was expected they would not become involved in any potential corporate malfeasance or dereliction of corporate duties and bylaws. Since there would be several Trustees if no individual Trustee could subvert the corporate structure or Board of Directors by moving themselves into a position as a Director. As a result, there would be layers of safeguards ensuring corporate integrity, while also providing a mechanism to ensure no church could ever again be corrupted without a mechanism for rectifying the problem.

62. Unlike me, Wollersheim's declarants do not speak from personal knowledge. Neither Stacy Young or Jesse Prince were involved in any of these matters. I never met either of them until well after these events. The restructuring of other churches of Scientology beyond RTC and CST was not part of Mr. Hubbard's estate plan, although it evolved out of the same circumstances detailed above and a desire to ensure the future of the religion, not just following the death of its Founder,, but for all time.

63. RTC, the church I now head, not only did not come out of CSC, but in fact was a brand new organization, established precisely because the role it is charged with performing did not exist in the religion and the religion almost collapsed because no church performed that function.

64. Perhaps the most telling indication that the allegations made by Wollersheim are false, is the recognition of the tax-exempt status of all Scientology churches in the United States by the IRS. The IRS concerns arose from precisely the same allegations Wollersheim makes here. That is not surprising because the same individuals made the same allegations to the IRS. It was because of these false allegations, made year after year, in 1991 the churches were subjected to two years


of extensive inquiry and examination of their corporate affairs by the IRS, including inspection of church premises, corporate books and financial records. The churches did so to put an end to these false allegations once and for all. Upon actual inspection and review, the IRS considered and rejected virtually all of the same allegations that are now being made in this case.


65. During the entire time period covered by the Wollersheim trial and a year beyond, I was not employed by RTC, or any of the churches of Scientology.

66. During the period through 1980 and 1981, while in seclusion, Mr. Hubbard was engaged in researches and writings. As part of his activities during that period, and for the first time since 1950, Mr. Hubbard also returned to the field of fiction writing, with the novel Battleffeld Earth. 1980 had marked his golden anniversary as a professional writer and, away from the distractions of daily church activity, it was the first time since 1950 and the publication of Dianetics that he found himself with spare time on his hands. In the time between his more serious researches, he wrote a novel. He describes the circumstances in the introduction to that book which I have appended to this declaration. [Ex. D.] Following completion of that novel, he began another and ultimately wrote 10 more in the following 2 years.

67. A primary concern of Mr. Hubbard's was that his personal affairs be handled independently of any church activities. Mr. Hubbard further recognized that church staff could not assist with the publication and distribution of his fiction works, as contrasted to his religious works. Additionally, concerns had been raised by the IRS regarding Mr. Hubbard's relationship to Scientology churches. Mr. Hubbard not only wished to have his personal affairs managed, but also to end any


concerns about his relationship to Scientology churches. Accordingly, his personal attorneys advised and were the architects of a for-profit corporation that addressed these needs. Thus, in late 1981, ASI was formed to manage the personal, business and literary affairs of L. Ron Hubbard, including his financial and legal matters.

68. As I was a trusted friend and associate of Mr. Hubbard, I was offered the opportunity to be part of this new endeavor. I considered it the highest honor to work directly for Mr. Hubbard, and beginning in 1982, devoted my full time and attention to Mr. Hubbard's personal affairs as Chief Executive Officer and Chairman of the Board of ASI. My time through 1987 was completely devoted to his affairs. Among other duties, I supervised the publication and distribution of Battlefield Earth, which went on to become an international bestseller. This was followed by his next work of fiction, the Mission Earth series, a series comprised of 10 volumes, each of which ultimately achieved international bestseller status. ASI was also responsible for managing Mr. Hubbard's finances and accounting. Our duties also included the handling of his legal affairs.

69. Part of ASI's responsibility for Mr. Hubbard's legal affairs included civil litigation naming Mr. Hubbard as a defendant. During this time period, a number of apostate Scientologists, represented by a handful of lawyers, brought suit against various churches of Scientology, naming L. Ron Hubbard as a co defendant. At Mr. Hubbard's direction, ASI retained and paid lawyers to represent his interests, separate and distinct from any church representation. While it would not have been improper for churches of Scientology to defend their Founder in actions concerning the practice of the religion, Mr. Hubbard insisted his affairs be handled separately from Scientology churches. Furthermore, it was during this time period, and as a result of litigation strategies employed by the plaintiffs in these actions to target Mr. Hubbard, that the allegations raised today, by


Wollersheim, originated. As I was a trusted associate of Mr. Hubbard, I became a primary target of these civil litigants, most of whom I had never heard of.

70. The first episode resulted in an FBI investigation and a bogus lawsuit, for which I was innocent and exonerated. It came as a result of a litigation strategy to capitalize on Mr. Hubbard's seclusion and desire for privacy in the latter years of his life. Shortly after I became Chief Executive Officer of ASI, a call came in to ASI from a New England-based bank. The caller was attempting to verify whether a check purportedly signed by Mr. Hubbard should be cleared. It was written to an individual with an unfamiliar name. As ASI prepared all of Mr. Hubbard's checks for signature, and as we knew we had drafted no such check, I told the bank it should not be cashed and that it was undoubtedly a forgery. Most disturbing was the size of the check and that it almost matched the precise balance of Mr. Hubbard's funds in that particular account. The matter of this forged check, however, assumed even greater proportions when a so-called "probate" action was commenced against the "estate" of L. Ron Hubbard. The attorney who brought this action to "protect" Mr. Hubbard's estate was the very same attorney (Michael Flynn of Boston) who was suing Mr. Hubbard in several dozen civil lawsuits. The "missing person" probate action was brought on behalf of Ron DeWolf, L. Ron Hubbard's estranged son (estranged for over 25 years at the time), who had long since been disinherited. The claim in this action alleged Mr. Hubbard's estate was being looted by me, and that DeWoff should be appointed to "protect" it. In addition to incredible allegations about non-existent financial rip-offs by me of "gemstones" and cash, attorney Flynn asserted part of my "rip-off" of Mr. Hubbard's estate were intellectual properties Mr. Hubbard had donated to the religion. Here was the very attorney whose clients were making scandalous claims about Mr. Hubbard, in the most outrageous and prejudicial manner in their lawsuits, suddenly bringing a probate action to "protect" his estate. The probate


action also accused me of holding Mr. Hubbard captive to control his estate. This entire matter received widespread media coverage in major newspapers including the New York Times, and on national TV magazine shows, including 20/20. These events caused me great personal distress. It was inconceivable to me how avowed enemies of Mr. Hubbard could level such sensational charges against me and others, who were his actual friends and associates.

71. To buttress the false claims that Mr. Hubbard's estate was being looted, DeWolf and his lawyer made reference to the forged check mentioned above. I had no idea how they were aware there had been an attempt to pass a forged check on Mr. Hubbard's account. Upon examining the facts we were able to develop, we learned that the bank had informed the FBI about the forged check, and that the first and only person the FBI contacted for information was Flynn, who told the FBI that L one of Mr. Hubbard's closest and trusted friends, was the most likely candidate to have committed the forgery. As a result, I became the target of an FBI investigation. Ultimately, the investigation ended and DeWolfs probate action was dismissed, but only when Mr. Hubbard filed a handwritten declaration, using special ink that could be dated, and impressed with his thumb print, establishing that his assets were under his personal control. Ultimately, Mr. Hubbard had to come to my defense, stating in part. "I wish to take this opportunity to communicate my unequivocal confidence in David Miscavige, who is a longtime devoted Scientologist, a trusted associate and a good friend to me. Any activities which he may have engaged in at any time concerning my personal or business affairs have been done with my knowledge and authorization and for my benefit. The charges that he is organizing theft of my assets are completely false and not worthy of further comment than that."


72. Upon the dismissal of the probate action, DeWolf s attorney announced that his "real" purpose in bringing the probate action had been to force Mr. Hubbard out of seclusion so he could be served in the civil damages cases he had filed. The idea was simple. Aware that Mr. Hubbard wanted to maintain his privacy and seclusion, the lawyer would notice Mr. Hubbard's deposition as both an individual and as a "managing agent" of Scientology churches. Default or settlement then would follow a managing agent finding and non-appearance. This is the genesis of the "managing agent" allegation Wollersheim offers today, and which was never anything more than a litigation tactic. It was to be employed against Mr. Hubbard and Scientology churches until Mr. Hubbard's death, and because of my association with Mr. Hubbard, being responsible for his legal affairs through Author Services, Inc., the allegation now included me.

73. During this same time, several apostates began establishing splinter groups to offer altered versions of Scientology. Wishing to justify their actions, they actually claimed to be doing what Mr. Hubbard wanted. In substance, while engaging in activities that were anathema to the religion, they positioned themselves as the truthful Scientology, "loyal to its Founder."

74. Hearing of these splinter groups, and their false allegations of his support, Mr. Hubbard announced in a tape recorded message to Scientologists, his views concerning them. As part of that message, he publicly announced his donation of the trademarks to RTC. He described efforts by individuals over the years to engage in a power push for their own profit and told Scientologists to only support churches in good standing with RTC.

75. With their false status exposed in the eyes of Scientologists, their actual motives soon became apparent. Rather than reconciling with the religion, they


continued their splinter activities, joining up with civil litigants in their attacks on Mr. Hubbard and churches of Scientology. Their object was to gain control of the churches for their personal power and enrichment, and I mean that quite literally.

76. The resultant attempts to harass me in litigation extended to not just creating false allegations, but false documents as well. In 1984, a former church staff member then employed by one of those splinter groups, created a document entitled SMASH SQUIRRELS PJT. This forged document, allegedly written by me, purported to show that the taped message by Mr. Hubbard denouncing their movement was actually created by me through use of a digital sampling device. Putting aside that lie, no digital sampling device was, or is to this day, capable of accomplishing such a task. Moreover, the digital device referred to, and by which I allegedly accomplished this impersonation of Mr. Hubbard's voice, was an early generation musical. instrument, capable of replicating a short sample of natural sounds for use in playing music. Notwithstanding the absurdity of the allegation, the ramifications of this forgery had a severe impact on me. It implied I intended some form of harassment of apostate Scientologists (colloquially called "SQUIRRELS" in Scientology). The document was widely circulated to Scientologists and to the government in an attempt to discredit me. It also was circulated by civil litigants, and continuously used against me in litigation. I had to fight this issue for years, until the document was examined in 1993 in a Freedom of Information Act case, Miscavige v. IRS, No. CV 88-7341 TJH (C.D. Cal.) by Special Master Jack Tenner, who found that it was, in fact, a forgery. That conclusion was affirmed in an order issued by Judge Terry J. Hatter of the United States District Court for the Central District of California. [Ex. E, order of Judge Hatter.]

77. At the beginning of 1984, I became the target of an IRS-CID investigation, which did not conclude until 1986, based on allegations by those apostates and


civil litigants. Chief among the allegations were the forged SQUASH SQUIRRELS PJT and assertions that the "MCCS" Project had fraudulently reorganized the Scientology corporate structure - the precise allegation, long since disproven, being alleged by Wollersheim today.

78. The CID's investigation was ultimately rejected out of hand by the Justice Department. Its religiously motivated bias was abundantly clear when reviewed by objective law enforcement. The CID had alleged I participated in a conspiracy to defraud the IRS beginning in the year 1966. I was 6 years old in 1966. All the allegations made by those apostates were found baseless, including allegations of corporate irregularities stemming from MCCS, allegations of financial irregularities between Scientology churches and Mr. Hubbard, allegations of corporate control, literally, the exact allegations being forwarded today by Wollersheim and his declarants.

79. During this CID investigation, I was represented by my own counsel, Gerald Feffer of Williams & Connolly in Washington, D.C. He has written a declaration confirming the final resolution of this CID investigation.

80. As to why or how these declarants can make the allegations today, I can only offer that they have merely looked up old "testimony" and re-written it, changing but a few words to make it sound "new."

81. The magnitude of this investigation alone illustrates the level of scrutiny I was subjected to. Through the FOIA I was finally able to gain access to my files. The IRS dossier on me comprised an accumulation of over 100,000 pages of documents - the largest in the Service's history, on any individual ever. Those documents encompassed every allegation imaginable - including the allegations


repeated in this case - and the result was my complete exoneration.

82. Throughout this time period, and while serving as the primary witnesses for the CID investigation, civil litigants continued to press forward their litigation naming both Scientology churches and L. Ron Hubbard. Every single one of these cases, without exception, operated on the strategy of naming Mr. Hubbard as the h, managing agent" of all churches of Scientology. The single deposition they asked for was his, with the full knowledge that Mr. Hubbard was in seclusion and would not appear, and thus they could ask for a default judgment. While my interests were those of L. Ron Hubbard personally, it was obvious to see how this tactic was employed to harm church defendants as well. It was not only Mr. Hubbard that would default, but also the church defendants themselves pursuant to their allegation he was their managing agent. Wollersheim was no exception to this strategy, at that time. Again, while litigants enjoyed some initial success through this strategy, it too was ultimately disproved.

83. While Mr. Hubbard did communicate with ASI and Scientology churches periodically between 1981 and 1984, his communications were infrequent and unpredictable. There were months at a time when no communications were received. Only Mr. Hubbard could initiate the communication. His whereabouts and location were unknown. Moreover, from early 1984, until his death, L. Ron Hubbard had no further communication with anybody on church staff in any capacity. No telephone calls, no telexes, no computer communication, no written despatches, nothing. Having already completed and forwarded his fiction manuscripts to ASI and having completed his estate planning, he devoted the rest of his time to his Scientology researches in the final years of his life. He traveled throughout California and Washington in a motor home and settled at a ranch in Creston, California. Nobody in any church knew where he lived or had any idea of


how to contact him. Indeed, the only "communication" to the churches from Mr. Hubbard was a tape recorded message to Scientology parishioners for replay at the New Year's event December 31, 1985. It was approximately 5 minutes in length wherein he gave his New Year's greetings and announced a breakthrough in his Scientology researches.

84. Mr. Hubbard's communications to ASI during this period were very limited, and only concerned personal affairs requiring his attention, such as tax filings. I would estimate the total number of communications from Mr. Hubbard to ASI during this period from 1984 to 1986 to be half a dozen. At no time did ASI have the ability to contact Mr. Hubbard, and I personally was unaware of his location.

85. Because of Mr. Hubbard's absence, ASI's functions became more intensive, with greater responsibilities in conducting his personal affairs. Another ASI staff member - not me - held a power of attorney on behalf of Mr. Hubbard enabling us to conduct almost all his business affairs without need of his direction or personal approval.

86. Although ancient, Wollersheim is again using the same tactic, this time through his witness Jesse Prince. To say L. Ron Hubbard ran the church until his death at which point I assumed command is simply untrue. As evidence that the allegation concerning Mr. Hubbard's control as "managing agent" was judicially rejected, I attach a court ruling by Judge Mariana R. Pfaelzer, District Court Judge, for the Central District of California. [Ex. F.] In that ruling she states: "2. Although there is evidence that L. Ron Hubbard is the Founder of the religion of Scientology and is accorded reverence and respect by Scientologists, Defendants have


failed to sustain the burden of showing that L. Ron Hubbard has been an officer, director or managing agent of any corporate Plaintiff at any time relevant under Rule 30 F.R.C.P., or during the period commencing with the so called Robin Scott theft in Denmark on December 9, 1983 to the present." It also should be noted this order was issued in a case where RTC was the plaintiff and the apostate Scientologist defendants (who had stolen confidential Scripture from a Scientology church in Europe) were attempting to "defend" the case through use of the "managing agent" tactic.

87. While at ASI, and during Mr. Hubbard's life, I dealt with ASI matters. I simply had no time for anything else. Subsequent to Mr. Hubbard's death on January 24, 1986, I assisted the Executor of Mr. Hubbard's estate in preparing the voluminous inventory of all of Mr. Hubbard's works. The list of Mr. Hubbard's copyrighted works alone - comprising close to 20,000 individual works - exceeded 800 pages.

88. To the degree I, or anyone at ASI was involved in litigation, it was in defense of suits brought against Mr. Hubbard. To the extent these suits in any way related to churches of Scientology, that was a byproduct of civil litigants including both churches and Mr. Hubbard as defendants in the same suit. The best illustration of this were claims brought against Mr. Hubbard's estate following his death. As part of our assistance to the Executor in administering Mr. Hubbard's estate, we successfully defeated 14 separate legal challenges to the Estate. I have attached these dismissals as exhibits. [Ex. G.] While their names will not all be familiar, all except one concerned apostate litigation. Even Mr. Flynn, the attorney for most anti-Scientology litigants, is listed.



89. Wollersheim alleges that while at ASI, I directed the litigation of his case. As already sworn to above, I never had a single thing to do with CSCs defense in the litigation of Mr. Wollersheim's case. What he fails to tell the Court, however, is his complaint named Mr. Hubbard as a defendant. On October 31, 1984, his attorney moved to serve Mr. Hubbard. Despite Mr. Hubbard's well known unavailability, his attorney attempted to argue service should be granted. And what basis did he provide to support this claim- The fraudulent "missing persons" probate action brought earlier by Mr. Flynn on behalf of Mr. Hubbard's estranged son. After quoting from Mr. Hubbard's declaration defending me in that case, Wollersheim's attorney stated: "He was obviously aware that the Court indicated that unless he appeared or filed a sworn declaration he would be declared missing."

In other words, Wollersheim's attorney took Mr. Hubbard's precise defense of me against the false charges of looting his "estate" in the "missing person" case and turned it on Mr. Hubbard in an effort to draw him into this case. Within that same filing are statements concerning my relationship with Mr. Hubbard as CEO of ASI: "The head of Author Services, Inc. is the acknowledged agent of L. Ron Hubbard. L. Ron Hubbard stated David Miscavige's actual agency for him in his declaration filed In re: Estate of Hubbard."

[Ex. H.] This is the sort of harassment Wollersheim has been engaged in. Partake in vicious and false accusations that I looted Mr. Hubbard's estate and when Mr. Hubbard is forced to confirm it is not so, now allege an agency relationship because now L. Ron Hubbard is not only not missing, but is managing everything. The contrary positions cannot be reconciled. Indeed, the Court denied Wollersheim's motion, granting a motion to dismiss L. Ron Hubbard as:


"...Hubbard was not served within the three years of issuance of Summons,..." [Ex. I]

90. In light of the Court's ruling dismissing Mr. Hubbard in April of 1985, it is inconceivable to me how Wollersheim. can attempt to drag me into this litigation 14 years after a court already dismissed Mr. Hubbard, when Wollersheim raised the exact allegations of Mr. Hubbard and myself, 14 years ago. While many false allegations have been leveled at me, one thing that cannot be disputed is that I worked for Mr. Hubbard personally in my capacity at ASI. It was ASI for whom I worked during this litigation, not RTC. He is being disingenuous with this Court regarding his previous unsuccessful litigation efforts. Today he raises the same ones, calls them "new" and hopes for a different result. Moreover, it is more than oppressive for the corporation for whom I now work, to be subjected to claims based on my alleged acts in another corporation which had already been rejected before I even joined RTC.

91. A great deal has been made about my attendance at the trial of this matter. I never attended a single day of trial. My only interest in the case was to protect the rights of Mr. Hubbard, who had been dismissed prior to trial. However, ' the original $30 million verdict in the Wollersheim case was an outrage. It was offensive to every Scientologist and considered a very real threat to the religion. Their concerns were well founded as the appellate court recognized in substantially reducing the judgment. The scope of this decision went well beyond its monetary impact. Thousands of Scientologists came to downtown Los Angeles and into the halls of the courthouse to express their concern and to peacefully protest the judgment as what they perceived as an attack on freedom of religion. In this vein, I attended a single day of post judgment argument. Many other prominent, longstanding Scientologists; were also in the courtroom, including


celebrities such as John Travolta.

92. As a final outrage, Wollersheim's attorneys - Charles O'Reilly and Leta Schlosser - allege that I threatened them in the courthouse elevator. The exact circumstances are these: While waiting by the elevator, I was standing with another Scientologist. Mr. O'Reilly and Ms. Schlosser were accompanied by a very large body guard. I do not know his name. When the elevator doors opened, I stood waiting for Ms. Schlosser to enter first, out of common courtesy. O'Reilly's body guard said loudly, "Let the midget go first," in reference to my size (56"). I ignored his comment and rode down the elevator in silence. End of story. This incident was memorable to me given the circumstances of having just heard Mr. O'Reilly speak about my religion in the most offensive manner possible and about what a victim his client was due to church "abuse" and having those claims followed almost at once by the astounding act of rudeness I have just described. Frankly, I cannot believe they brought it up. Despite the personal insult, I consider the incident one that any grown adult does not lose sleep over.

93. The only connection I ever had to litigation involving churches of Scientology, while employed by Author Services, Inc., were those cases where apostate Scientologists sued both churches of Scientology and L. Ron Hubbard. My entire role in any of those matters was in defense of Mr. Hubbard, as an individual, through use of independent legal counsel employed and paid for by Mr. Hubbard. Yet because litigants sued both Mr. Hubbard and churches of Scientology, they now allege I was involved in "church litigation." It is they who put me in a position of having no choice but to become involved through my responsibilities in defending Mr. Hubbard in those suits which they brought.



94. Following Mr. Hubbard's death, I continued my work at ASI. I had no plans relative to any other position and I certainly did not "take over" the religion. I continued in my position at ASI. The various ecclesiastical bodies and their personnel continued to carry out their religious duties and functions as they had prior to Mr. Hubbard's death. This was not surprising to me or, to my knowledge, anybody in the religion because, while accusations were being leveled by civil litigants up until the day of his death that Mr. Hubbard was running the affairs of all Scientology churches and was their managing agent, we knew such assertions were untrue. Had their allegations been true, everything would have come to a standstill and the religion of Scientology would be no more. Things did not come to a standstill, and the Scientology religion is larger than ever.

95. The probate of Mr. Hubbard's Estate was of great importance to me, to all of ASI, and indeed, to the entire religion of Scientology. Fulfilling Mr. Hubbard's final wishes meant seeing that his legacy of the Scientology Scripture passed to Church of Spiritual Technology.


96. Unfortunately, and despite the good intentions of the great majority, and contrary to any desire of my own, it was not long before some individuals did again begin to engage in acts that threatened the survival of the religion and where I was compelled to act.

97. I had served as one of the Trustees of RTC, since its inception. My only duties as Trustee were to appoint or remove directors. We held no other corporate power. In all that time we had removed only two directors because of personal problems they needed to tend to, as opposed to any corporate malfeasance. Since


that time, RTC directors had served continuously. Two of the board members were Vicki Aznaran and Jesse Prince.

98. Their duties, of course, were to see to the purity of the religion. Yet in the winter of 1986, a situation regarding an individual working with Aznaran and Prince to alter Scripture came to my attention because that person was an employee of the Estate, and was helping care for the ranch property in Creston, California where Mr. Hubbard lived until his death. They not only were in telephonic communication but, in the case of Aznaran, had even traveled to this ranch location, hundreds of miles from her RTC offices. I was not immediately aware of this, since I was located in Los Angeles and was also hundreds of miles away from the location. Inquiring into the matter, I soon learned this individual was pretending to have "special data" concerning Scientology and had begun a project to change the "Scientology Grade Chart." This chart lists the various steps of ascent to total spiritual freedom, with the exact steps of religious training and auditing to achieve these higher levels of awareness. [See What Is Scientology?, Ch. 6 p. 179, Ex. J.] This chart is central to the practice of the religion. As such, it is sacrosanct. Moreover, I also discovered this individual had plans to direct RTC and other churches.

99. This, of course, was entirely contrary to the authority vested in RTC. Alteration of Scripture is what RTC is charged with preventing. Yet Aznaran and .Prince were not only abrogating those responsibilities, but assisting in this severe violation.

100. As the individual instigating these violations was employed by the Estate, my first action was to see him with ASI attorneys, to put an end to the phone calls, meetings and any other inappropriate lines of communication offering direction to


church members. I also informed him that if he wished to be involved in church management affairs he would have to leave the employ of the Estate and join staff at the Church of Scientology International.

101. Ironically, this individual then tried to use his honorary rank in the Sea Org to claim some higher authority. Contrary to Prince's allegations about Sea Org control, I told him I cared nothing about his rank (which was higher than mine), and his activities would not be condoned.

102. The manner in which this person attempted to gain a position of "Source" was by claiming to know things Mr. Hubbard wished to be done, that Mr. Hubbard had never articulated or written down. This sort of claim has always been frowned upon in the Scientology religion. Indeed, during Mr. Hubbard's life, many persons who had met him would claim to have some "inside" line as regards to Mr. Hubbard's thoughts or intentions. Therefore, Mr. Hubbard wrote a Policy Letter called "Hidden Data Line," outlawing this practice in the Scientology religion, even during his life. Mr. Hubbard always communicated anything he wished to say to Scientologists, or about any important matter, in writing. Hence came the slogan as regards Scientology's doctrine, "If it is not in writing, it is not true." Only a small handful of people listened to this individual's explanation for his supposed authority - that handful included Vicki Aznaran and Jesse Prince. It also included Stacy Young and her then husband, Vaughn.

103. Following this, I was later to discover the individual who wanted to control the religion arranged a surreptitious meeting with Vicki Aznaran to plot how he could covertly direct affairs of various churches, write new Scripture, copyright it in his name, and altogether avoid corporate lines of authority within the ecclesiastical hierarchy. He went so far as to arrange a surreptitious meeting


with an attorney who represented RTC to see how this could be done. The attorney refused to abide by his wishes and insisted what he was suggesting was entirely improper and not in accordance with Mr. Hubbard's Estate plan or the corporate affairs of the church. I later found out that Aznaran and this individual had again met surreptitiously and they decided they would go forward with their plan. They even went so far as discussing how they could copyright religious writings into this individual's name and thus provide him with income.

104. The following week I saw Prince in Florida, where I was to speak at a New Year's event. I had been expecting Aznaran and asked Prince where she was and why was he there instead. After a little probing, Mr. Prince informed me that Aznaran was again with this individual working on "new" Scientology writings. It appeared to me Prince was truly concerned about the matter, at one point breaking down in tears while explaining he didn't know what to do. I tried to be as compassionate as possible and advised him that as an RTC executive he had a responsibility and the authority, to maintain the purity of the religion.

105. I ultimately was to discover the individual attempting to set himself up as the new "source" had even initiated plans to give lectures, to be recorded and made part of Scientology Scripture, as well as filmed lectures to modify church orthodoxy. To a Scientologist, this is utter heresy as only L. Ron Hubbard's own words as he wrote or said them can ever be the Scripture of the religion. This was also the very threat to the religion Mr. Hubbard had predicted when formulating his estate planning - the religion losing its purity through subversion and alteration of the teachings of the Founder. RTC was essential to Mr. Hubbard's plans to prevent this from occurring, yet one of its Directors (Aznaran) was actively participating in this violation, while another (Prince) was condoning it.


106. Because these violations were of such a serious nature, I and other RTC Trustees had no choice but to take action and remove Vicki Aznaran and Jesse Prince from their corporate positions.

107. Aznaran herself has testified to the reason for her removal - allowing false "scriptures" to be presented as the authentic writings of Mr. Hubbard when she knew they were not.

108. In the midst of the removal of Aznaran and Prince, and the further discoveries detailed above, I was asked by the staff of RTC to become RTC's Chairman. It was not a position I sought or desired. Unlike those who evidently equated religious commitment with power - as evidenced by them leaving the religion of Scientology when their actions led to their removal - I was very happy at ASI and was looking forward to helping in the handling of Mr. Hubbard's estate and seeing to the publication of his many yet-to-be released books. It soon became clear to me, however, that regardless of my personal desires and wishes, this was a responsibility I could not abandon. Following the death of the religion's Founder, there was no greater concern to all Scientologists than the purity of the religion. Thus, I permanently resigned from ASI and upon the vote of the Trustees of RTC, assumed the position of Chairman.

109. The prominence I have in the religion today comes from the actions I have undertaken since becoming Chairman of the Board of RTC. Wollersheim, and his witnesses have tried to superimpose my authority and reputation today on events a decade and a half ago. By way of example, through my duties in RTC, Scientologists the world over have been provided Mr. Hubbard's teachings in their purest form, including a project that removed all alterations to those teachings, even down to small typographical errors; the release of over a thousand never


before reproduced lectures by Mr. Hubbard; and the implementation of programs to ensure only orthodox practice of the religion which heralded what is called a golden age" by Scientologists the world over.

110. When vicious assaults have been leveled, they are all too often being pointed my way. Scientologists have seen me defend the faith from my position, be it on Nightline, or spearheading, on RTC's behalf, efforts to resolve matters with the IRS once and for all. This was of no small importance to every Scientologist who themselves had been subjected to abuse because of their Scientology affiliation and measures instituted by that agency premised on false reports by apostates. While tax-exempt recognition was afforded to all U.S. churches, parishioners' donations were also recognized as charitable and tax deductible for the first time in a quarter of a century.

111. It is for these reasons I am prominent in the religion, and anything good for a Scientologist is anathema to an anti-Scientologist, which is why I am targeted as I am today.


112. Wollersheim's allegations of my control of all churches regardless of corporate lines due to my position in either RTC or my honorary rank in the Sea Org are misleading and false: When others have attempted to violate corporate boundaries, I have acted to stop it.

113. But Prince's allegations are contradictory on their own. He claims to have been second in command of all Scientology based on being second in command in RTC. By that same analysis, RTC's maintenance man would be 60th in all of Scientology (RTC having approximately 60 staff). If Prince claims Sea Org rank


takes precedent, he cannot reconcile the fact that several staff of CSI outranked him while he was in RTC. He does not even allege they could give him orders, because they could not.

114. Prince's allegations about RTC's all encompassing role in corporate matters outside of RTC are false as I have described here. Even RTC post titles reflect the accuracy of what I've presented. Prince was at, one point, a Deputy Inspector General. The term Inspector General is reflective of RTC's role. just as the Inspector General of the Treasury Department isn't in charge of the Treasury Department (the Secretary of the Treasury is), the Inspector General is not the ecclesiastic management of Scientology. The Inspector General in the aforementioned role acts as an independent body to inspect conduct. The function of an RTC Inspector General is to inspect the orthodoxy of the religion, as an independent body, distinct from ecclesiastical management. That is precisely the role at which Prince had failed.

115. Further, I do not know why Prince would allege he signed an "undated letter of resignation." No resignation was required for his removal. Considering the emotion Mr. Prince expressed when he spoke to me at the 1986 New Year's event, I had the view he had become involved in matters over his head. I expressed that to him when I informed him of his removal. An official removal by the Trustees is a rare thing and I realized it could have a large impact on his future career as a church staff member. I had no desire for that to occur and was more concerned for his well-being. That is why I gave him the opportunity instead to tender his resignation. I recall him being grateful. Throughout the rest of his tenure on church staff, he never did rise to a high position. That was through no doing of mine, but his own inability to make his own way. After his removal, I never offered him anything but friendship. He, in turn, expressed his friendship to


me and support for what I was doing. It is important to note that he makes claims now, twelve years after his removal, that are directly contrary to what actually happened.

116. Jesse Prince claims that a primary purpose of the corporate restructuring of Scientology churches was to respond to the Wollersheim case. He further alleges the restructuring was a product of the "MCCS project," which he initially characterizes as a "sham," and then later describes as a "smoke screen designed to put up a phony corporate front." In later years, Prince was removed in disgrace precisely because the corporate structure of RTC is not a sham. His allegations are not only false, but I know from being there that he knows they are false.

117. Similarly, Stacy Young makes allegations regarding the Scientology corporate structure. Like Prince, her statements are false. She claims some authority by referring to a time period she worked for me between June and September 1982. The brevity of her tenure reflects the level of competence I felt she displayed. Despite that, I have never gone out of my way to publicly or privately demean her due to her failings. However, the fact remains that I have never, since September of 1982, worked with Ms. Young and it is beyond presumptuous for her to even suggest she knows about my activities or functions since that time. Again, the declaration she signed is not only false, but I know she knows it to be false.

118. Finally, the very transcript Wollersheim's declarants refer to was reviewed by the IRS as part of the proceedings, for which I participated on behalf of RTC. Based on that review, along with the actual inspection of all financial records, the IRS rejected the mischaracterization of these events Wollersheim offers, confirmed there had been no improper transfers and recognized both the integrity of the new structure, and the tax-exempt status of all missions who conducted their activities


in accordance with the directives of the San Francisco conference.

119. Testimony from Ms. Aznaran has also been offered by Wollersheim. concerning events of this time period. As she has since repudiated that testimony and, indeed, described the methods by which anti-Scientologists concoct their testimony, no further comment is necessary.

120. To reiterate, what I have stated here regarding RTC's corporate role as well as the circumstances of my appointment were also reviewed by the IRS. Indeed, when I approached the IRS in 1991, they focused on Aznaran's allegations. During that time period, the steady barrage of such falsehoods poisoned the IRS with respect to the church generally and me personally. IRS Internal Security Agent Keith Alan Kuhn filed a declaration in several cases in which I was not even a party, again utilizing the previously mentioned forged document SA4ASH SQUIRRELS PIT, falsely accusing me of threatening another IRS agent with whom I had never spoken in my life. That declaration was ultimately stricken as unsupported and scurrilous, and the IRS was ordered by United States District Judge William D. Keller to pay sanctions for having filed it at all. [Ex. K, Order and transcript, Church of Scientology of California v. IRS, No. CV 90-5638 WDK (C.D. Cal.)].

121. Despite this history, Wollersheim and his declarants continue the same litigation pattern, alleging harassment where there is none, while engaging in intense harassment of me, as I will now detail.



122. What is most striking to me about Wollersheim's motion and supporting declarations is the stridency of their allegations. Most disturbing are the allegations of "harassment" in an attempt to position me, RTC, CSI and, indeed, all of Scientology, as bullies. In light of these scandalous accusations, I feel it important for the Court to be apprised of the harassment in which Mr. Wollersheim, and his declarants have been engaged. Unlike their allegations, what I offer the Court is supported by documentary evidence.

123. Further, in viewing these aggressive acts by Wollersheim and his associates, I offer the Court this background. While this declaration has detailed a great deal of civil litigation brought against Mr. Hubbard, various churches of Scientology, and myself, the Court should also understand that it is almost entirely a thing of the past. Following recognition of tax-exempt status by the IRS in October of 1993, almost all litigation involving churches of Scientology in the United States was resolved. Indeed, the only outstanding pieces of litigation, as of this date, are those brought by Mr. Wollersheim or funded by his associates (FACTNet and its Director Bob Minton). Mr. Leipold is also involved in these few remaining cases. It is not "Scientology" that is carrying on a persistent and aggressive campaign, but rather, Wollersheim.

124. The only litigation RTC has brought in recent years concerned infringement of their intellectual property rights on the Internet. Chief among those engaging in this illegal conduct was Mr. Wollersheim, who was responsible for more infringements than all other infringers combined. He not only infringed, but actively encouraged others to do so.


125. In each of these pieces of litigation, and unlike the characterizations Wollersheim offers, RTC has always been willing to settle. Not one piece of litigation has ever been brought by RTC where there was not first an attempt to have the infringer cease and desist. When forced to do so, RTC has litigated and prevailed. However, it has also settled any case where an infringer was willing to settle. I am aware that despite Wollersheim's harsh rhetoric and assaults leveled at the Scientology religion, even the suit against him for several thou sand copyright infringements was settled - with Wollersheim, stipulating to a permanent injunction and a $1 million judgment payable in the event of any further infringement despite the fact that he had caused the expenditure of great sums of money in the litigation.

126. This case is not merely about Larry Wollersheim attempting to collect a judgment he achieved against CSC. The instant action is brought as part of his anti-Scientology crusade. Wollersheim, acting through FACTNet Inc., his corporation which supports anti-Scientology litigants, has engaged in a pattern of virulent attacks directed at me by exploiting a hate-filled, anti-Scientology Internet news group. I give but just a small sampling of some of this harassment:

* The anti-Scientology Internet news group - "Alt Religion Scientology" (ARS), was created with a posting to which my name was forged as the author.

* In 1993, I was accused, in a case in which I was not even a party, of having murdered my mother-in-law. The coroner established that the death was not a homicide. The personal impact of such an outrageous lie was immense for both my wife and me. FACTNet employee, Robert Vaughn Young, made that allegation, which he submitted in a paid declaration.

* This same allegation was repeated by Mr. Wollersheim in a FACTNet newsletter. I did not hold a monopoly on being the target of his attacks.


FACTNet similarly accused several well known CSI officials - a Director, whom it was insinuated killed his baby daughter, and the President of CSI where it was implied he was involved in the death of his first wife. There is no basis for these allegations, yet capitalizing on the grief regarding the death of a newborn or one's wife to cancer seems of no concern to Wollersheim. The leaflet making such allegations was disseminated to Scientologists and I only heard about it when one of them mailed it to me.

* Another notice in his newsletter and FACTNet Bulletin Board had this headline: "Did David Miscavige sell out L. Ron Hubbard for Scientology's new IRS tax-exempt status-" It concluded with, "Might criminal charges be forthcoming against Scientology's executives, attorneys and accountants-" Consistent positions is not one of Mr. Wollersheim's stronger traits. While savaging the Founder of my religion in court filings, he then savages me to Scientologists in a newsletter accusing me of what would be most offensive to any Scientologist - betraying the religion's Founder.

* As mentioned, Wollersheim was a defendant in an action brought for copyright infringement. Only after forcing RTC and other Scientology defendants to litigate for years over an obvious case of massive infringement, did he settle. Unlike his claims, nobody bludgeoned him - allowing him to walk away upon a promise of no future infringement.

* While Wollersheim, spews venom regarding church conduct in litigation, an example of one of the tactics he employed while defending the aforementioned case, harks back to the tactics of the early 1980s. In 1997, as part of his defense of the FACTNet litigation, Wollersheim accused me of having murdered Mr. Hubbard to obtain control of his Estate and the churches of Scientology. He attempted to contact Mr. Hubbard's family, telling them that they had been deceived by me into giving up their legacies since Mr. Hubbard donated his copyrights and wealth to the religion. Those


accusations were brought by Wollersheim in a petition he filed on his own behalf in the San Luis Obispo Superior Court, Case No. PR 20885, which was summarily dismissed. Wollersheim's purported interest in the welfare of Mr. Hubbard's family is ironic in light of his litigation strategy to destroy the religion founded by Mr. Hubbard. This was not only harassment of me, but of Mr. Hubbard's widow and children who remain devout Scientologists. Yet Wollersheim, a well known Scientology hater purports to care about their husband and father's legacy. If Mr. Hubbard had given his entire estate to his family, Wollersheim, and the other anti-Scientologists would have complained that Scientology only existed to benefit Mr. Hubbard and his family - which is the very allegation that triggered the IRS - CID investigation. I do not own the Scientology trademarks, RTC does; I do not own, control or receive any income from copyrights; CST does. I do not own any of the other Hubbard intellectual properties; no one does. They are owned by a church and are used exclusively for religious purposes. Indeed, it is clear to me that Wollersheim's filing of the probate action was a form of retaliation for being sued in the FACTNet case, a case in which he ultimately stipulated had been based on "well-founded" claims.

* I have been the target of many disgusting Internet postings by another of Wollersheim's FACTNet employees, Grady Ward, accusing me in the most degrading terms imaginable, of engaging in all manner of perverted sexual activities with various individuals. I attach just one of these postings as exemplary of many that have appeared. [Ex. L.]

127. While these vile and malicious falsehoods have been spread by Wollersheim and his declarants for years, they have recently gone beyond harassment to threats of physical violence. Wollersheim's financial backer, Robert Minton, has posted my face on the Internet for use as target practice, has threatened


to burn me in effigy in front of church buildings, and, spurred on by Minton, other anti-Scientologists then spoke of "forgetting the effigy and just doing it for real." [Ex. M.] Prince has protested in front of our spiritual Mecca, threatening "Tell David I'm coming with a d--k so big I'm gonna knock his goddamn spine out." [Ex. N.] Wollersheim has repeatedly threatened to have me sent to prison and his attorney announced the formation of a club to have church leaders "buggered [sodomized] before breakfast" every day. [Ex. O.]

128. While these personal attacks are undoubtedly offensive, I have learned to live with them. But my refusal to respond to their taunts has now resulted in harassment of my family. Robert Minton - the man funding this action - recently telephoned my mother for purposes of harassment (he could not possibly think she would want to talk to him) and then made Internet postings listing her name, address and phone number stating that nobody was safe - not my mother, father, brother, sisters or wife. [Ex. P.]

129. I could detail many other similar acts of harassment by Wollersheim, and his associates. But that is not the point. This is America and they have the right to be bigots. But I find it entirely disingenuous that they engage in such behavior and then turn around and accuse me of it, without one supporting fact. That is because I do not do it. It is for this reason they must rely on innuendo and statements such as Prince's that he, "recognize(s) that by giving this declaration, I make myself target for further attack by Scientology." Of course, he cited none, so "further" could only be more of the same - none.

130. I am offended by the allegations that have been made by this group of anti-Scientologists. My prominence has come about because I have acted in an ethical and responsible fashion. I have never sought the limelight or sought to


profit personally from my actions - unlike those who accuse me here. My dedication to my religion is of paramount importance and due to the circumstances I found myself in, I could not avoid the role I have come to play. When individuals at RTC violated the ecclesiastical corporate duties, I handled that.

131. Despite the personal attacks, and all manner of vicious accusations, I have never retaliated. When they forged documents in my name, I did not then sue when they were proven forgeries. They file documents about me harassing critics and using the legal system to "bludgeon" people with. These too were proven false, yet I did not pursue the issue. When Larry Wollersheim and his colleagues passed around lies that I murdered my mother-in-law, I did not sue. I have never used the legal system to bludgeon anyone, even while I have been hammered with a constant barrage of assaults, only because I have stayed true to my religious beliefs and have acted to keep Scientology true to the teachings of Mr. Hubbard. In truth, what these people accuse me of is what they are doing.

132. Unlike their mischaracterizations, the Scientology religion includes a system of Ethics which is described in detail in the book Introduction to Scientology Ethics. Honesty is a central tenet of the Scientology religion. Mr. Hubbard wrote: "Freedom is for honest people. No man who is not himself honest can be free - he is in his own trap."

133. Scientologists; live their lives in accordance with a moral code written by Mr. Hubbard, called The Way to Happiness [Ex. Q.] This code includes precepts such as:

Seek to Live with the Truth "Do not tell harmful lies. Harmful lies are the product of fear, malice and envy. They can drive people to acts of


desperation. They can rum lives. They create a kind of trap into which the teller and the target can both fall. Interpersonal and social chaos can result. Many wars began because of harmful lies.

The way to happiness lies along the road to truth." Respect the Religious Beliefs of Others

"Tolerance is a good cornerstone on which to build human relationships. When one views. the slaughter and suffering caused by religious intolerance throughout all the history of man and into modern times, one can see that intolerance is a very nonsurvival activity.

"Religious tolerance does not mean one cannot express his own beliefs. It does mean that seeking to undermine or attack the religious faith and beliefs of another has always been a short road to trouble.

"The way to happiness can become contentious when one fails to respect the religious beliefs of others." Don't Do Anything Illegal

"When one does something illegal, small or large, one is laid open to an attack by the state. It does not matter whether one is caught or not, when one does an illegal act, one has weakened one's defenses.

"Almost any worthwhile thing one is tying to accomplish often can be done in perfectly legal ways. The Legal route is a dangerous and time-wasting shortcut. Imagined 'advantages' in committing illegal acts usually turn out not to be worth it.

"The way to happiness does not include the fear of being found out"



134. I realize this declaration is long. That was neither by design nor desire. It is merely indicative of the egregious nature of the false allegations leveled at me and what it requires to answer to them. It is my observation that it is easier to destroy than create. In that same vein, plaintiff and his witnesses are not limited by the truth or accuracy of events in putting forth innuendo and rumor.

135. What I have presented are facts with time, place, form and event. Unlike plaintiff and his witnesses, I do know the actual circumstances of events. I was there. They were not. However, the Court should understand this is not the first time I have testified to these facts:

* My presence has been required in other civil cases and although I did not agree with the relevance of my testimony I nevertheless have testified every time I was required to do so.

* Mr. Wollersheim and his counsel make numerous allegations about Scientology churches and their litigation strategy of "bludgeoning" opponents. A long history shows this not to be the case. I myself have participated in many settlements with litigants in cases involving RTC and me, both as plaintiff and defendant, and in almost all instances those matters came to an amicable resolution. In support of this, I have appeared before Judge Leon Savitch and Judge Jack Tenner.

* I participated in the two year examination of RTC (as well as other Scientology churches), by the Internal Revenue Service. The President of CSI participated on behalf of that church. As already provided in great detail, that examination was monumental in nature. It not only resulted in full recognition of tax exemption, but also recognized the integrity of what is the purpose, motives and actual activities of RTC and the religion of Scientology. Most importantly, the IRS review embraced every allegation Wollersheim.


now makes here and these allegations were among the specific focuses of the IRS in concluding that RTC and the other churches were tax exempt. That review and determination dispositively put to rest the controversy Wollersheim seeks to rekindle. Since that time, and for a period of several years, RTC and other Scientology churches were required to present audited financial statements to the IRS as evidence of ongoing corporate and financial integrity. In each and every instance, those financial statements verified that integrity without exception.

136. In light of all of this, of which I believe plaintiff, his declarants, and counsel are aware, there can be no debate about their knowledge of the actual circumstances concerning the Scientology religion and its various individual churches. RTC is a separate entity from CSC and always has been. Any finding to the contrary would be a travesty. It not only would be untrue, it would directly undermine the distinct role RTC must have separate and apart from the ecclesiastical governance of other Scientology churches, and nullify the corporate integrity which the IRS's exhaustive examination conclusively established.

I declare under penalty of perjury under the laws of California that the foregoing is true and correct.

Executed this 24th day of September 1999 at Clearwater, Florida.

David Miscavige


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