IAS

Billionaire Bob Duggan, the Paradise Papers, and the Scientology Money Club

The Scientology Money Project did an article recently on the US Bankruptcy Court’s denial of Matt and Kathy Feshbach’s attempt to discharge $3.8 million in back taxes via bankruptcy. This led me to do further research on Matt Feshbach’s Bahamian stem cell medical company called Okyanos Heart Institute. The result an article on Matt Feshbach and Okyanos at the Scientology Money Project. In the course of my research I found Feshbach and his business partner and fellow Scientology OT Manuel Vianna listed in the Paradise Papers:

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Curious as I am about Scientology and its sources of money, I checked into Okyanos and discovered its $14.2 million dollars in capitalization largely came from a Scientologist named Ali Shawkat, a man whose father is Mudhar Shawkat, a former member of the Iraqi parliament. The ICIJ Offshore Leaks Database page on Mudhar Shawkat states that Appleby Global — an offshore law firm that some have compared to the notorious Panamanian firm of Mossack Fonseca — set up the “Passion Group S.A.” for the Shawkat family. “S.A.” is a business term meaning “Society Anonymous.” A person who owns shares in an S.A. corporation can have those shares held by an offshore law firm. An S.A. grants a certain degree of anonymity.

There were concerns at Appleby about the Shawkat money and its Passion Group S.A., this according to an internal Appleby e-mail leaked by the Paradise Papers:

According to 2008 confidential emails, the lawyer representing Shawkat and his son, Ali, asked Appleby to hold in escrow about $140 million, the proceeds of the sale of the Shawkats’ shares in a joint venture with a Kuwaiti telecommunications company. The law firm refused that request but accepted them as clients later in 2008.

Appleby set up the Passion Group Trust for the benefit of Mudhar Shawkat’s family members and registered three affiliated companies in the British Virgin Islands in 2008 and 2011, according to the files. Shawkat was identified in the Appleby documents as an “additional settlor” (a person who creates and funds a trust) of the Passion Group Trust and as a shareholder of Passion Investment Ltd., the trust’s investment arm.

However, upon the incorporation of a not-for-profit entity, which was also a beneficiary of the trust, concerns about the Iraqi family’s reported association with Chalabi [Ahmed Chalabi, 1944-2015. A controversial Iraqi politician.] emerged at the law firm. “It is suspicious,” an Appleby employee wrote in an email, “that they are setting up a charitable company offshore [Passion for Change S.A.] for funds coming out of Iraq – there does not seem any benefit other than lack of accountability in doing so.”

A Paradise Papers page on Mudhar Shawkat shows the relationships for the Shawkat family and its Passion group; there are ties to Amman, Jordan and the British Virgin Islands:

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In a development that could portend trouble for the Shawkat’s and all other Appleby clients, Appleby confirmed in October 2017 that it had been the victim of a massive computer hack. Some in financial circles are saying the hacked information from Appleby Global will amount to a Panama Papers II. In November 2017 Appleby released a less than reassuring statement to its clients:

We wish to apologise to our clients and to our colleagues for the difficulties which have arisen from this incident. We remain committed to working with each and every client to talk to them about what has happened so that they can understand its impact on them and in order to support them with their own reporting requirements.

I note in passing that when your offshore legal firm tells you that it will help you understand the impact of it being hacked and will support you with your “reporting requirements” this is not a good thing, particularly if one has not self-reported.

Ali Shawkat and his wife Noor donated $5 million to the IAS. This was covered in a 2014 article by Tony Ortega at the Underground Bunker.

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Ali and Noor Shawkat receiving their IAS trophy for donating $5,000,000

Things were intriguing at this point so I called upon my erstwhile colleague Dr. Jeff Wasel. As Jeff and I learned from the Okyanos website, Ali Shawkat’s Passion Group invested money in Feshbach’s stem cell company:

FREEPORT, The Bahamas, March 18, 2014 – Okyanos Cell Therapy, whose mission it is to bring a new standard of care and a better quality of life to patients with coronary artery disease (CAD) using adult stem cell therapy, announced today it has raised $8.9 million in its Series B offering. Passion Group founder Ali Shawkat led the round and is a visionary entrepreneur-investor with success in a diverse set of industries including cellular services, telecom, media and healthcare.

Shawkat’s investment in Feshbach’s Okyanos is borne out by the Panama Papers’ mention that the Shawkat family invested in two medical companies:

In the following months, in 2009, the leaked files show that the Shawkats transferred more than $30 million to the family trust and one of its affiliated companies, some of which was converted into shares. Board meeting minutes of Passion Investment Ltd. chaired by Shawkat’s son show that from 2013 to 2016, the company has invested in two medical companies and in an Iraqi dealership for Peugeot cars.

On a side note to this story, Freewinds Captain Mike Napier’s son Sean Napier appears on the Okyanos website as the Director of IT & Operations:

Former US Ambassador to the Bahamas John Rood was brought in by Matt Feshbach to serve as a Director at Okyanos Holdings Co LLC. Because the Bahamian government had to pass a law allowing Okyanos to operate, Former Ambassador Rood’s contacts were undoubtedly invaluable. On a related note, John Rood is the Chairman of the Vestcor Companies Inc. This firm invests in multifamily dwellings. Scientology OT8 Grant Cardone’s firm Cardone Acquisitions follows the same business model as Rood’s Vestcor Companies Inc. This raises the question: Was Cardone introduced to John Rood via Matt Feshbach? If so, was Cardone inspired to get into investing in apartment buildings by seeing Rood’s success?

I found three UCC filings on Okyanos Operating Company Ltd. A “UCC filing” is an instrument that allows a lender to secure its interest on equipment for which they loaned money to a debtor to purchase. UCC’s are routinely used where a company borrows money to purchase expensive office equipment, phone systems, computer systems, medical equipment, etc. In the event of a default on the loan, the UCC protects the lender as it prevents the debtor from selling the equipment. The UCC also allows the lender to take physical possession of the equipment if the firm goes bankrupt. The UCC gives the lender first priority over other creditors in a bankruptcy.

The three UCC’s filed on Okyanos were filed by Prince’s Gate LLC of Santa Monica. A quick check shows Prince’s Gate LLC to be an entity owned by EarthLink founder and Scientologist Sky Dayton:

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According to news reports, Black Beret Life Sciences of Houston acquired Okyanos in a leveraged buyout in July 2017. This begs the question: Why would BBLS need to use an LBO to acquire an insolvent company? BBLS has cash. Indeed, in January 2017 Affigen announced a $17 million Series A led by Black Beret Life Sciences.

Genuine First Aid International Ltd

In the map below of the Shawkat offshore money we see a company with the innocuous name of Genuine First Aid International Ltd. A search of the Paradise Papers shows that Robert “Billionaire Bob” Duggan and Ali Shawkat to be shareholders and directors of Genuine First Aid International Ltd.:


Another Panama Papers diagram shows the relationship of Robert “Bob” Duggan with the Shawkat’s; Amman, Jordan; Beirut, Lebanon; and the British Virgin Islands via Duggan’s ties to Genuine First Aid International Ltd:

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What is Genuine First Aid International Ltd.? It is a company registered in the British Virgin Islands and based in Fujian, China. The company’s Chairman is a Danish Scientology OT8 named Michael Holstein. His Scientology Completions page is extensive:

Michael Holstein’s LinkedIn page leads to dietary supplements, vitamins, diabetes supplements, etc:

Michael.Holstein

Another Panama Papers diagram shows Ali Shawkat to be a director of Genuine First Aid International Ltd:

Yet another Panama Papers diagram shows Robert Duggan to be a shareholder of a company called Spang CM Ltd:

A more micro Panama Papers diagram shows a tighter Duggan relationship to Spang and Genuine First Aid International Ltd:

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While Spang CM Ltd. is registered in the Cayman Islands (tax identification number: 139726), the company is a Chinese manufacturing firm:

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The Scientology Money Club Investigation, as Dr. Wasel and I are calling it, will take a look into the intertwining  world of wealthy Scientologists and their money. We are not alleging anything untoward whatsoever. Rather, we are examining linkages amongst Scientology whales who donate big money to the IAS. That these relationships have been found in the Panama and Paradise papers is part of what Dr. Wasel and I will discuss in an upcoming podcast.

Dr. Wasel’s comments on offshore corporations:

So why go offshore? Well first, “offshore” has many connotations, and can denote both legal and illegal financial behavior. There are legitimate reasons for high net worth individuals to maintain offshore companies, trusts, and other “vehicles”, mainly to lessen one’s tax obligation or to ensure privacy in sensitive, though legal financial matters.

Other reasons include political instability or corruption in their home country, or the registration of expensive assets such as planes and boats, as well as financing the associated insurance costs. Lawful tax avoidance involves organizing one’s financial affairs to legally minimize the amount of tax to be paid, versus tax evasion, which involves hiding one’s assets altogether, from the responsible reporting authorities.

Large corporations such as Apple, Google, and others use favorable tax regimes in Ireland as an example of tax mitigation/avoidance, as do individuals in the Caribbean, Liechtenstein, Switzerland, and other “tax havens”.  These “Offshore Financial Centers” (OFCs) exist primarily to provide anonymity and tax regimes favorable to the investor and not the regulator; where the illegality occurs, is when an individual or entity fails to declare an interest in an OFC to their respective nation’s tax authority or financial regulator. The use of OFCs is significant; while verifiable data is difficult to collect, it’s estimated that some 20 percent of all private wealth is located in OFC’s, as is an estimated 75 percent of the captive insurance market.

The nexus of the OFC phenomenon is geography. In other words, “sunny places for shady people” to some extent, though the post-9/11 regulatory environment has drastically altered this perception. Indeed, The Cayman Islands, Bermuda, and other former “light touch” OFC locales, now often exceed US and EU anti-money laundering and tax reporting requirements.

That said, many significant loopholes exist in the structure of OFC’s, loopholes that, in a variety of ways, are structurally resistant to regulation, and still offer the less-than scrupulous individual or entity plenty of ways to create private banks, phantom or “shell companies” and fake trusts, and to hide money and other assets. One such option within this structure is the use of “bearer shares”, a term often reflected in the associated charts in this story. Implicit in the many OFCs available to the “sophisticated” investor, is the International Business Company, (IBC), which is a corporate vehicle that can be owned anonymously, and does not do business in the country where it’s domiciled (has physical residence), and usually located in an extremely “light touch” regulatory and tax locale. An IBC can be created online in less than an hour, involves minimal regulatory and ownership filings, and has limited liability. It’s unrestricted in the type of business it can entertain, and an IBC can consist of multiple sub-entities, complicating any future audit trail.

The main ownership stake in an IBC is a bearer share, which simply means that if you physically own the shares, you own the company, yet nowhere is it recorded that you physically hold them. In essence, the IBC is a truly “portable company”, allowing one to schlep a veritable business empire in one’s briefcase.

Adding to the attractiveness of portability, is a lack of accountability, in that most IBC’s allow for “nominee” directors; that is, hired-hand “directors”, who are usually employees of the registering agent, say a corporate registration house in Curacao. Thus there is no “official” record of who owns the bearer shares, and therefore, the company’s beneficiaries, nor is there any direct owner – a responsible fiduciary –  that can be held responsible for the company’s actions. While a more thorough discussion of all the permutations of this murky financial world is beyond the remit of this article, suffice to say, it’s the concepts of “plausible deniability” and anonymity, as well as the ability to hide one’s financial affairs,  that is the greatest lure to go offshore.
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Here is the Appleby Global document on the creation of the Shawkat’s Passion Group Trust. Hover over the document with your mouse to invoke the control panel at the bottom of the PDF:

Shawkat-2011-Passion-Group-Summary

Why Did the Church of Scientology Give $65,000 to a Hospital in England?

By Dr. Jeff Wasel

The BBC News published an article this week about a wholly uncharacteristic act of Scientology generosity. Written by John Sweeney, the article discussed Scientology UK’s £50,000 donation to The East Grinstead National Health Service Trust, specifically to the Queen Victoria Hospital. This donation is about $65,650 USD at current rates.

There article described the debate about the propriety of a National Health Service (NHS) Trust accepting a donation from the controversial Church of Scientology:

Mr Lamb said his “particular concern” was about the impact of the [Scientology] church’s “activities on people’s mental health”.

“Their secrecy and their refusal to be challenged or questioned is deeply disturbing.

“I hope that the Secretary of State and Simon Stevens as chief executive of NHS England make clear straight away that it is not appropriate to accept donations.

“It’s a sign of the intense pressure that the NHS is under that this trust decided to reverse its policy of not accepting donations.”

Scientology’s generous donation piqued my curiosity. National Health Service (NHS) Trusts are the primary health care management scheme used to regionalize all facets of healthcare delivery in the United Kingdom. It is thought that the regionalization of delivery allows for a more uniform quality of care and consistent outcomes while providing for better economies of scale in the cost, delivery, and maintenance of patient care in a particular locale.

NHS Trusts are the frontline of healthcare management and delivery in the UK; their importance cannot be understated. Working with General Practitioners, or what are called family doctors or “GP’s” in the US, NHS Trusts allocate treatment, purchase localized healthcare services, and manage palliative care including all forms of therapy, diagnostics, substance abuse treatment, in-home care, pre and post-natal care, and ambulance services to name but a few. Within this context, Scientology’s donation becomes even more of interest and raises significant questions. For example, certain Trusts specialize in specific types of care and therapies. In this particular case, Queen Victoria Hospital is renowned for its reconstructive surgery and burn care. Why did Scientology chose a hospital with these particular specialties?

With Scientology’s doctrine of exchange in mind, wherein your are required to receive “like for like” as it were, what’s the quid pro quo here? This donation had to have been authorized by David Miscavige, which then raises questions of a strategic and ongoing operational nature. Then we have the specifics of the treatment competencies of the Queen Victoria Hospital to consider, as well as how these competencies may or may not conform to Scientology’s modus operandi on the whole.

The immediate quid pro quo suggests the classic Scientology PR gambit called safepointing in which Scientology’s PR is enhanced by virtue of what, on the surface at least, appears to be a generous charitable donation to an NHS Trust hospital.

However, the UK National Health Service Trust also oversees the delivery of counseling, psychiatric services and psychotropic drugs; indeed drugs of all sorts that L. Ron Hubbard deemed antithetical to the very nature and purpose of Scientology. This begs the question: How could Scientology, which is dedicated to the complete annihilation of psychiatry and the prescribing of psychiatric medications, give $65,000 USD to a medical trust that actively delivers psychiatric services and medications to its patients?

Given this incongruity, an argument can be made that Scientology’s donation is a cynical means of buying Scientology access to the NHS Trust’s mid to high-level administrators — and they are legion in top-heavy bureaucracy of the NHS. This would be no different than Scientology in Los Angeles donating heavily to the LAPD in order to safepoint the Church. Indeed, Scientology’s long and suspect relationship with LAPD has caused many to ask if this is why the Los Angeles District Attorney’s Office has “slow rolled” the sexual assault investigation into actor and Scientologist Danny Masterson.

Queen Victoria Hospital could be viewed as a gateway into the overall NHS technology procurement system, providing Scientology operatives further access to the administrators who manage and operate the entire healthcare portfolio of the NHS on a UK national basis. Using this access would allow Scientology to pitch it’s WISE & ABLE businesses and services to the national UK healthcare system.

Specifically, the East Grinstead NHS Trust certainly does not enjoy the cash reserves that, for instance, the Guys and St Thomas NHS Trusts in London do. Additional service offerings provided by Scientology’s secular groups such could be construed as useful and therefore of potential interest to the East Grinstead NHS Trust.

Then there’s the tax ramifications of the donation for Scientology as well, given that Scientology does not enjoy charitable status in the UK. If Scientology’s income is as depressed in St. Hill as it is elsewhere in the church, the donation to Queen Victoria Hospital would prove significant in mitigating St. Hill’s 2017 HMRC tax obligations. These are the simplest explanations for the church’s otherwise inexplicable and sudden generosity. Yet there may be more afoot.

Leah Remini’s A&E show Scientology and the Aftermath has reached a significant new audience across many demographics. In doing so, Leah’s show has made millions of people fully aware of the Scientology’s history of egregious conduct in the United States.

If Scientology is to survive, then, it must seek new markets outside of the US and revitalize its non-US Orgs that are currently on life-support. With the opening of the new Dublin and Birmingham Scientology Orgs, it’s clear the church still considers the UK & Ireland viable sources of new members.

However, is the Church of Scientology truly seeking new members, or does this large cash donation indicate that an alternative initiative is underway? This would be an initiative aimed at alliance-building for the many business interests of Scientology’s high net-worth members who now provide a disproportionate amount of donations, and thus much-needed operating income for the Church.

Among critics, journalists, and other interested parties that scrutinize the Church of Scientology, a variety of “end-state” scenarios are beginning to emerge, one of which has the Church primarily existing for the benefit of its high net worth individuals colloquially referred to as “the whales.”

If one considers Scientology’s $1.5 billion cash fund known as the International Association of Scientologists (IAS) as a sort of internal hedge fund for both Scientology management and the whales, such a possibility may indeed prove to be the case.

So how does Scientology’s donation to an NHS trust fit into this emerging scenario?

A recent article on the Scientology Money Project, highlighted what appears to be a curious series of transactions in which Scientologist Matt Feshbach’s stem cell medical venture in the Bahamas was sold and resold in a very short period of time to three sequential entities without explanation. As originally conceived, Feshbach’s company Okyanos was focused upon the use of adult stem cells extracted from adipose tissue to repair cardiovascular decay.

Queen Victoria Hospital specializes in burn treatments and reconstructive surgery, a significant component of which involves the use of a variety of cell regeneration technologies, using stem cells and other organic matter, that could potentially be obtained using techniques similar to those touted by Fesbach’s Okyanos venture.

While this may be coincidental, I would argue this may be the first example of a new Miscavige strategy, whereby St. Hill, or other large orgs, are used as a localized business development vehicle for various whale enterprises, or even the church’s own for-profit companies.

In this scenario, the donation to Queen Victoria Hospital can be reconceptualized as an initial tranche of cash that represents a seed investment. In this example, the Scientology cash opens a door into the many procurement vehicles within the NHS Trust system.

The proximity of Queen Victoria Hospital to Scientology’s St. Hill base allows for an appropriate Miscavige-level of micro-management for the duration of this exercise in covert investment under the guise of a donation.

It would stand to reason we may see similar efforts in Taiwan, Russia, and other Scientology beachheads, that also harbor untapped entrepreneurial opportunities. It’s important to remember, that both Dublin and Birmingham are located in areas already receptive to emerging technology and subsidized investment, and possess a highly educated, technology savvy workforce.

At a macro level, such a strategy is in keeping with Scientology’s demonstrated tactic of infiltration on multiple fronts, in this case, using WISE or ABLE-centric businesses as the means of dissemination, rather than the usual, increasingly counter-productive, org-centric, one-on-one recruitment model. Rather than this labor-intensive and often times, less-than successful effort, cash donations provide a deliberate, highly targeted, highly visible means of obtaining a desired outcome.

Aside from what this donation may imply, specifically, a novel means for David Miscavige to court opportunities for his cartel of whales, it also represents yet another significant deviance from long-held doctrinal and practical operational tenants, resembling the unprecedented attempt to silence Leah Remini’s Emmy award-winning Aftermath show via an Internet-sourced petition.

Furthermore, in deliberately ignoring these and other core tenets, such as lambasting all things psychiatric, or asserting that the mainstream mental health establishment is intrinsically devoted to destroying Scientology, the Church of Scientology may indeed be demonstrating a deliberate acquiescence to a new reality: The need to evolve in a post-“Aftermath” age or die.

Significantly, we may be witnessing the first indication of a newly emerging, two-tier church operational model, with the IAS and it’s whales as the church’s preferred public face; and the other, a faceless one, wherein the remaining staff and Sea Org toil on in further obscurity, slowly withering on the vine, becoming nothing more than custodians for an empire of dormant real estate. This new development may well be the first harbinger of Scientology’s end game, so stay tuned.

Church of Scientology Hustling Donations in the Aftermath of Hurricane Harvey


As we reported in our previous post, The Church of Scientology has been caught red-handed in a social media fraud in which it used stock photos to pose as Scientologists. These fake Scientologists were then used to launch social media attacks on Leah Remini, Mike Rinder, A&E, A&E’s sponsors, and the courageous people who appear on Leah’s show Scientology and the Aftermath. This is a scandal and a disgrace for Scientology.

There is yet another Church of Scientology scam to cover today. For over a decade Scientology leader David Miscavige has claimed that the Scientology Volunteer Ministers formed the “largest independent relief force on Earth.” This has always been a lie and will always be a lie. However, Scientology still makes this claim:

The Scientology Volunteer Ministers program (VMs) was established by Scientology founder, L. Ron Hubbard, in 1976. Some 100,000 VMs in 120 nations helped more than 1.6 million people in the last year alone, making the Scientology Volunteer Ministers the largest independent relief organization on Earth.

Mike Rinder challenged this claim in an excellent post on Scientology’s Volunteer Ministers at his blog. Mike added this photo of the Scientology’s empty “Hurricane Harvey Relief Forces Headquarters” here in Los Angeles to support his criticisms. We see only two very bored members of the “largest independent relief force on Earth” seated on folding chairs nonchalantly texting:

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I would add this: At the present time the IAS claims there are 130 Scientology Volunteer Ministers in the areas decimated by Hurricane Harvey. This is what the IAS posted on its website as of today August 31, 2017:

How does the “largest independent relief organization on Earth” only manage to get 130 people to the scene of a widespread catastrophe? Particularly when the IAS — Scientology’s slush fund with an estimated cash pile in excess of $1.5 billion — has made an emergency grant:

As brought to my attention by Collette James on Twitter, Scientology’s Volunteer Ministers posted a misleading tweet. This tweet used a photo of the Louisiana Rescue Group that was shot at by looters. The tweet and photo could mislead the public into thinking that Scientology’s Volunteer Ministers were somehow involved in this particular operation:

So to recap:

1. The Scientology Volunteer Ministers are not, and never were, the “largest independent relief organization on Earth.” And yet Scientology continues to lie about it and raise money based upon this false claim.

2. Scientology’s IAS has hoarded an estimated ~$1.5 billion in cash and does not need donations. Just a fraction of the the interest generated by the IAS cash hoard would pay for all 130 Volunteer Ministers that are allegedly  on the ground in the areas affected by Hurricane Harvey.

3. Scientology has been caught lying on social media in its attacks on Leah Remini’s show. Therefore, how do we know that Scientology is not lying about the number of Volunteer Ministers in the hurricane-stricken areas? That is the problem with Scientology’s habitual lying: Nothing it says can be taken at face value.

Please sign my petition at Change.org demanding that the IRS open an investigation into Scientology’s tax exemption.

4. I have seen photos of fewer than twenty VM’s in areas affected by Hurricane Harvey. There may be more faces to count; I just haven’t seen the photos. The IAS main page shows two photos in which only two VM’s are seen. The bald-headed VM appears in both photos; we see his back toward us in the photo (left) and his face in the other photo (right):

5. Because Scientology’s IAS has zero financial transparency we don’t know the size of the IAS “emergency grant.” It could be a very small and insignificant grant. I say this because, as a rule, Scientology Volunteer Ministers are expected to pay their own expenses to travel to and from the scene of a disaster. The IAS should publicly disclose on the record how much Scientology is actually spending to help. Absent disclosure, all IAS claims are meaningless. The IAS could have donated a token sum of $1,000 for all we know.

6. Scientology Volunteer Ministers largely function to get PR photos and videos so that Scientology can raise more money as they are doing now with Hurricane Harvey. Scientology is infamous for its disaster capitalism and has used everything from 911 to Whitney Houston’s death to raise money. Scientology VM’s literally walked over the backs of the dead at the Virginia Tech massacre to pitch a tent and get in front of cameras. See Radar’s story: First Photos: Scientologists Invade Virginia Tech Campus.

7. Here is a Scientology camera crew filming a staged VM event in Haiti:

8. While the Scientologists working on the ground are to be saluted for helping, they also know that their work is being done for “Church PR.” They will also be promoting Scientology at the scene of the disaster while giving Scientology touch assists.

9. Noticeably absent from Hurricane Harvey relief efforts is Scientology leader David Miscavige. Although Miscavige boasts about the VM’s he has never, to the best of my knowledge, actually volunteered at any disaster. This is odd considering that no less an eminence than former President Jimmy Carter routinely rolls up his sleeves and helps to build homes for Habitat for Humanity.

February 2017: Notes and Observations on Scientology

February 2017: Here are some notes and observations on how I watch and look at Scientology:

1. So many things constellate around The Underground Bunker that this place is mandatory daily reading. Tony Ortega understands context, story, and significance in a way that utterly eludes Scientology, David Miscavige, Freedom Rag, and the no-show-no-stats SMP.

2. Mike Rinder’s blog is the Tiffany’s of documenting Scientology’s ongoing failures, deceits, and decline. Mike provides an outstanding daily journal of real-time Scientology decline. Mike’s valuable insights into Scientology as an organization are possible due to his decades of managing the Office of Special Affairs on a daily basis. Mike understands Scientology and David Miscavige at a profound level. That Mike’s jovial and robust sense of humor is mated to his ferocious intellect makes reading his analysis of the situation that much more enjoyable.

3. Disconnection and Fair Game are non-negotiable and must go. To the degree that Scientology practices and enforces Disconnection and Fair Game, Scientology’s self-destruction will persist. No one out here in the real world will stand for Scientology’s breaking up of families and its programs of character assassination.

4. Leah Remini: Scientology and the Aftermath was a devastating expose of the Church of Scientology and its brutality. If it is not already in the works, season two will spontaneously appear as an act of Creation Ex Nihilo; the metaphysics of television dictate that this must happen.

4. Twitter and Facebook are extremely important to watch. The sum of message traffic on these platforms provides invaluable existential information about Scientology and Culture. Social media shows Scientology’s inherent inability to interact with Culture. This ineptitude is traceable to L. Ron Hubbard who called for Scientology to use blatantly phony and dishonest PR in the place of apologetics or other forms of meaningful interaction with Culture.

5. Scientology’s hate websites are very important to watch. These incriminating sites constitute damning and irrefutable forensic evidence which shows that Scientology’s programs of Fair Game have an unlimited budget of tax-free dollars. These websites also offer a penetrating insight into the psyche of Miscavige and OSA in a way that betrays both of them. Like a Cold War era Sovietologist would note, a good analyst must study the propaganda operations and party line rhetoric of the other side. IMO, our side needs more analysts who are willing to monitor, document, analyze, and write about Scientology’s websites.

6. Scientology’s cash position, cash surplus, and real estate acquisitions are almost completely meaningless as significant metrics. Any organization with a cash surplus can buy and amass a real estate portfolio. In most cases, Scientology’s real estate acquisitions of decrepit old buildings in need of millions of dollars in renovations are designed to stall and buy time for David Miscavige. From my perspective, Miscavige is obviously using these empty buildings to buy time and create some semblance of hope for the future of Scientology. However, no one is fooled. Example: The San Fernando Valley Ideal Org is a complete waste of time and money. There is no excuse for Miscavige to leave that eyesore unfinished given the IAS cash pile. The PR damage done to Scientology by leaving buildings empty for years or decades, particularly when there is plenty of money available to open these buildings within 12-18 months, is inexcusable. Conversely, Scientology will cherry pick top properties. This was the case with SMP here in Hollywood or Larry Hagman’s place in Ojai. But then the Cult will not actually do anything with these premier properties except use them for PR.

7. David Miscavige needs to reverse the massive and long-term statcrash in Scientology and does not know how to do it because he refuses to understand the nature and essence of the problems facing Scientology. Understanding the real problems would require critical self-reflection on his part wherein he would conclude that he must resign and step aside. He has zero capabilities in this regard and believes himself to be indispensable to Scientology. Compounding this is the long term structural damage to Scientology wrought by Miscavige’s execution of Hubbard’s bad policies and Miscavige’s own failed programs in the period 2001 to the present day is irreversible. Miscavige massively overreached with his frenzied money grab in the Basics, selling IAS statuses, and the failed Ideal Org strategy. GAT I and GAT II were, and are, failures in ways Miscavige does not understand.

8. Scientology’s contradictory policies of greed-driven inhumanity place it at war with itself and all the parts of its own existence. To use an analogy, Scientology is like a raging alcoholic with serious self-created problems who denies they are an alcoholic and blames others for their problems. Everyone else can see the problems except Scientology. The Church of Scientology is an embarrassment to itself and does not see it.

9. The real numbers a good leaker could give are these:
A. Attendance at events: publics and SO.
B. The number of SO members over the past ten years.
C. The total number of IAS members in good standing with the Church.
D. Total membership losses of publics and SO over the past ten years.
E. Number of SO senior execs paid off to sign nondisclosure agreements in the past ten years.

10. One of the real things to watch is the covert consolidation of Scientology Orgs. Miscavige can call it whatever he wants, but consolidation is contraction and Scientology is contracting inwards upon itself with great force. The acquisition of real estate is a red herring. Purchasing buildings is meaningless in the face of Scientology’s uncontrollable and accelerating membership losses. The way out is through the nearest door.

11. The petard upon which Scientology is hanging itself is Disconnection and Fair Game.

Scientlology Money Project Chart # 11

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Chart copyright 2015 Jeffrey Augustine. Please attribute when reposting.


The structure of Scientology Inc. is rife with self-serving conflicts of interest by David Miscavige and his enablers both in OSA and private practice.

Scientologists must confront this fact: Their “Church” has gone criminal and is in an out exchange condition. This is a rip off per Mr. Hubbard:

“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.

Scientologists are encouraged to do their own Doubt Formula to find out what is true for them. The data found here on the Scientology Money Project is from publicly-available IRS records, court records, and other public documents. I found virtually everything on this blog by using Google. Knowledge is power.

2016 will bring increasing challenges to Scientology Inc. as ever-increasing exposure is brought to bear on this criminal organization masquerading as a religion. Particular scrutiny will be on Kingpin David Miscavige and his enablers.