The Scientology Money Project

Scientology Grifting: Taking Millions in PPP Loans & Taking Government Welfare Money

David Miscavige, King of the Scientology Grifters in 2003.

Scientology Founder L. Ron Hubbard on taking something for nothing:

“First consider a group which takes in money but does not deliver anything in exchange. This is called rip-off. It is the ‘exchange’ condition of robbers, tax men, governments and other criminal elements.” – L. Ron Hubbard, HCO PL 10 Sep 82 – Exchange, Org Income and Staff Pay.

Although the Church of Scientology has both a Church reserve fund and an IAS reserve fund thought to be in excess of $1.5 billion set aside for hard times, about 40 Scientology organizations nevertheless took PPP loans in excess of $4 million dollars.

We consider this both fraud and grifting inasmuch as the Church and the IAS raised money from Scientologists on the pretext that it was for reserve funds. However, if Scientology can take government money and keep its own money, then it will. This is part of Scientology’s inherent greed and dishonesty.

Scientology told the IRS in its 1992 application for religious tax exemption that its Reserve Fund was designed to self-fund the Church for at least two years in the event of a crisis:

In 1992, Scientology had $340 in cash reserves and has significantly more cash in its reserves today. So why did Scientology need to take 40 PPP loans for $4 million when it told the IRS it can self-fund? Scientology lied to the IRS. Scientology had no intention whatsoever to use its reserves if US Government money is available.

Scientology taking government money is nothing new. Scientology has engaged in numerous schemes to get government money. These efforts includes selling Hubbard Study Tech to public school districts; selling the Purification Rundown to local government drug treatment programs; and selling Criminon programs to prisons.

Back in the 1970’s, L. Ron Hubbard wrote a policy that allowed staff to take government welfare money if it allowed them to work on Scientology staff and avoid “moonlighting.”

Moonlighting is a term used by Hubbard and Scientology which refers to the practice of working on Scientology staff during the day and taking a second job at night because your Scientology job pays nothing. Hubbard hated moonlighting. He wanted 16 hours of labor form his followers. If this meant they had to take welfare, then they were expected to take the money.

This is Scientology grifting. It is a theft of government money intended for the poor. Hubbard justified this grifting because he felt Scientologists were entitled to steal government money in order to have the government subsidize Scientology. Hubbard’s policy on the matter:

The Scientology 1992 submission to the IRS which states that it has a reserve fund. The reference is found on page 174, paragraph 2:

2 replies »

  1. For the best in criminality, venality, theta terrorism, Flubbardian Fraud, human trafficking, galactic gaslighting, shitty propaganda, and miscellaneous acts of utter stupidity and cruelty, look no further than the MOST ETHICAL GROUP ON THE PLANET!

  2. The seeds for this parasitism were sown in the 1940s when Hubbard malingered, took the VA for all he could, all the while whining and moaning how they needed to give him more. (which is to say nothing of the execrable “exchange” he provided the Navy with in return for his officer’s salary).

    He was convicted of a property crime in San Luis Obispo county–“exchanging” a phony check for merchandise. Despite court judgments, he left the support of his wife and children to others even though he was hoarding money by the suitcase at that point.

    When he “exchanged” defective “services” for good cash, he wouldn’t make it right. He would simply offer “services” he claimed were better for more cash, and then do it again as many times as possible. Or offer additional “services” that would provide what the preceding ones didn’t.

    “Services” spawned further “services”: Now that you paid for this “service” you’ll also need to pay for “security checks” to maintain those prior “services.” His victims were paying for problems that his “services” had created in the first place–a lot like paying money for protection from the Mob to the Mob.

    It’s a typically Orwellian use of language when something is termed “exchange” that clearly flows in one direction only!

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