Church of Scientology – IRS Closing Agreement. Final Draft Leaked by the New York Times on Dec. 30, 1997

Retrieved from: http://www.xenu.net/archive/IRS/

10 comments

  1. From the Final Closing Agreement:

    “6. Norman F. Starkey, as Trustee of Author’s Family Trust B, shall, no later than December 31, 1993, effectuate the transfer of substantially all of the corpus and income in Author’s Family Trust B, including all the shares of Author Services, Inc. (“ASI”) as permitted under the will of L. Ron Hubbard to the Church of Spiritual Technology (“CST”) without consideration. Mr. Starkey, as trustee, may retain sufficient cash and securities to cover any remaining actual or contingent liabilities of the Trust until those liabilities have been resolved or satisfied. The members of the CTCC shall use their best efforts to assure that such transfer is accomplished.”

    1. Unless I am not understanding this, it seems to me the Church of Spiritual Technology (a 501(c)(3) tax exempt organization like the rest of scientology corps) is then in the position of wholly owning a for-profit organization (ASI).

      Does that in itself have any consequences as regards the tax exempt status?

      1. jgg2012, great catch on the IRS publication and someone else is working on Narconon for later publication.

        For Profit Subsidiaries of Tax Exempt Organizations:

    2. Makes me wonder all sorts of things I have no understanding of, but I was ASI staff at the time of this actual event, Oct 1993, I lived ASI staff then as the ASI Computer Room Guy (chuckbeatty77@aol.com Chuck Beatty).

      Starkey was the Trustee, and he was also ED ASI at the time. He was both the LRH Trustee, over LRH’s Trustee Accounts, separate from his “hat” as ED ASI, the for profit corporation.

      As the Trustee in this quote above, he was transferring LRH’s Trust Account monies to the CST.

      I would have thought he might have had (in the ‘wog’ world’s corporate eyes) a conflict of interest being both himself ED ASI, and as LRH’s Trustee, he’s giving up LRH’s Trust Account holdings in ASI stock over to CST.

      Ah, too much BS corporate stuff for me to tangle with mentally, I just don’t get the loopholes this allowed Miscavige to tell Starkey what to do that most benefited what they both would think is the benefit overall for Scientology, as really the top powerful thinkers of these top level financial shifting of money in the top accounts, with Starkey over the LRH Trust accounts (LRH’s actual stash of wealth), and Miscavige as the ex COB ASI (and at that moment in history I can hereby attest for history, that I, Chuck Beatty, as the at that moment Computer Guy who ran the in house computer system for ASI) even though Miscavige was at that moment official COB RTC, I know that Miscavige had the COB ASI log on, I know, I checked it daily to ensure it was working for him to USE!!

      Miscavige was thus, in my firsthand recollection, as the ASI Computer Guy, Miscavige held the COB ASI logon. Miscavige held the COB RTC logon which was housed in the Int Base INCOMM computer room server. (The COB ASI logon and computer files were in the ASI computer room server.)

      Starkey held the ED ASI Logon and he held also the Trustee Logon. Two separate hats.

      I presume that in fact, somehow behind the scenes, that Miscavige then held, and potentially from 1993 to today still holds the COB ASI “hat” even potentially legally. Two hats, as he also holds the COB RTC hat.

      This tiny issue of power, deciding the top level decisions as the top level powerful deciding mind in the Scientology movement, Terri Gamboa and Pat Broeker are the two people who firsthand ought to be called to testify, in any future court cases, in this discussion really honestly with full on the ground facts, about Starkey and Miscavige’s top deciding roles.

      Miscavige top top, unquestionably. Starkey was as LRH Trustee next most top, but always kind of the doofy harebrained top charade playing front PR minded representative of LRH, in physical demeanor more appropriately adult that was the young David Miscavige in the early 1980s, even though Miscavige unquestionably was THE top deciding dominating figure executive over even Starkey even then, even with Starkey having been the Apollo real ship “right armed” Captain of the Apollo under Hubbard and on his own.

      What an interesting historical mess, that’s still beyond me in so many ways for the corporate illegalities that went on behind the scenes, but I saw a lot of paper trail details and will be glad to email with anyone intested, I blab freely!

      Chuck Beatty
      chuckbeatty77@aol.com
      ex ASI Computer Room Guy 1992-1995 so saw a lot of stuff then.

    1. Agreed!

      Thankyou Jeff Augustine for even devoting this massive amount of time you have over the years to wrap your wits around this crazy Scientology mess!

      It’s completely an unthanked job of keeping up with a crazy cult as prolifically obtuse as Scientology has attempted to be of itself!

      Thankyou so mucy, even from one of the ex ASI staffers who I freely admit couldn’t keep up with the “awesome” responsibility levels of the idiots in the chain of command above me!

      I lived for a few months or so, in that wing of the 5th floor of the complex where ASI and Miscavige himself still had his couple rooms (he has his staff girls make him strawberry pancakes that wafted through the air to my and my then wife’s dorm, our dorm was directly next to Starkey’s dorm, and Starkey’s dorm was directly across the hall from Miscavige’s dorm, sheesh, that’s how close, but how far I was from the great David Miscavige, one time my then wife chatted with “DM” in the hallway friendly enough, on down time Miscavige was even in 1992 and 1993 at downtime moments a regular person once in a while) there on the 5th floor complex, but that changed I think by late 1990s, today ASI berths and Miscavige has also rooms in that building next to ASI just up the street, next house/couple buildings up the street on Sycamore there in Hollywood where ASI is on Hollywood Blvd and the ASI/Miscavige berthing buildings are the next house up the street on Sycamore.

      Ah, the details of top life in the Scientology cult operation!

      thanks so much Jeff!

      chuckbeatty77@aol.com

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