International Association of Scientologists

Scientology: Save the Planet with Monthly Installment Payments!


The Scientology Cult has long peddled the falsehood that it is the “fastest growing religion in the world.” However, the International Association of Scientologists (IAS) ad shown above is clear evidence that large single donations are drying up. Hence the IAS is now begging for Scientologists to make smaller regular monthly payments. In yet another Scientology absurdity, we are told that the planet is on the brink of extinction due to the specter of Psychiatry, nuclear weapons, British bankers, Marcabs, etc. However, rest assured that your small monthly donations to the IAS can stave off the Apocalypse.

In a further sign of Scientology desperation, we find the bloated and scammy Scientology slush fund known as the IAS has set its default monthly donation to a meager $100 USD:

Back when Scientology was on its high horse, any Scientologist offering a paltry $100 donation would have been hauled into Ethics for not sacrificing their big assets to Scientology. After all, as L. Ron Hubbard had written nothing is more important than Scientology:

“Advanced Courses [in Scientology] are the most valuable service on the planet. Life insurance, houses, cars, stocks, bonds, college savings, all are transitory and impermanent… There is nothing to compare with Advanced Courses. They are infinitely valuable and transcend time itself.” – L. Ron Hubbard, Flag Mission Order 375

The IAS asking for small monthly donations suggests that middle class Scientologists have been stripped of their “life insurance, houses, cars, stocks, bonds, college savings” in previous Scientology reg cycles. The IAS is now reduced to bargaining.

If one keeps up on religious blogs relating to church finance and tax law — and I do — an increasing number churches over the past five years have been turning to fixed monthly payment programs that draft the parishioner’s bank account, PayPal account, or charge their credit card. This arrangement allows churches to have a stable monthly cash flow while avoiding the sharp seasonal fluctuations in income due to the winter holidays and summer vacations. Thus, the IAS asking for monthly donations seems to be an attempt to stabilize cash flow by encouraging Scientologists to donate smaller monthly amounts as opposed to giving bankrupting and credit-destroying massive single donations.

Nevertheless, as the IAS is believed to have cash reserves of $1.5 billion, asking for $100 per month can be seen as David Miscavige digging under the cushions on the couches of Scientologists for loose change. The IAS is truly obscene as it sits on massive cash reserves and still squeezes Scientologists like a dishrag. The IAS does not need $100 a month from anyone. If anything, the IAS needs to become financially transparent and tell Scientologists how much money it has and how much money it gives out in the form of grants, payments for real estate, etc.

There is another data point in the form above to note. The form says “Join the thousands of Scientologists who have signed up to make automatic monthly contributions to the IAS.” Again, we were led to believe that Scientology has millions of members. However, the IAS informs us that only thousands of Scientologists are donating monthly. And notice the language: Not “hundreds of thousands” or “tens of thousands” but rather only “thousands of Scientologists.”

Other facts to be gleaned from the IAS website:

1. There are new membership fees:

2. IAS uses Scientologist as commissioned salespeople. As such, they can earn 5% or 10% commissions of what they rake in from other Scientologists. What other “religion” has commission salespeople?

3. The IAS has what it calls “Honor Balls” and sells tickets to these garish events. The keynote speaker at the IAS balls is, you guessed it, David Miscavige. COB has had a lock on this gig since the 1980’s. What we want to know if he gets 10% commission as an IAS registrar. He would be entitled to 10% as a Professional IAS Field Disemminator per the rules shown above.  We believe this is where David Miscavige has raked in his personal fortune.

4. Per the contract Scientologists must sign when donating to the IAS, all donations to the IAS are nonrefundable:


5. The IAS Honor Balls are one of the few places one can see David Miscavige in his fullblown lunatic attacks on Psychiatry and his orgies of self-love:

Cult Paradox: Why Scientology Is Collapsing As a Function of Its Burgeoning Real Estate Empire

The Church of Scientology is so heavily entrenched in Downtown Clearwater that it has become harmful to the community. Scientology does not pay taxes on its huge portfolio of tax-exempt properties in Clearwater and yet demands police and fire services, uses the roads, freeways, and other public infrastructure. Worse, Scientology has driven businesses, redevelopment, and tourism dollars out of Downtown Clearwater, thus further depressing the economy and tax base of Clearwater. In 2017, Scientology even announced its brazen plans for what amounted to a hostile corporate takeover of Downtown Clearwater. The details are quite alarming as can be seen in an excellent and highly detailed article by Tracy McManus of The Tampa Bay Times.

Compounding matters, John P. Capitalist recently noted that many public Scientologists are moving out of Clearwater, Florida to escape the never-ending onslaught of Scientology regges. In  Scientology “registrars” are called “regges” and are actually salespeople. All across Scientology, the regges demand donations on a daily basis. It is very bad in Clearwater and Los Angeles where the largest concentrations of Scientologists live. John P. wrote of the public Scientologists in Clearwater:

…I’ve heard from several sources that a number of longtime members have moved out [of Clearwater] in order to avoid visits from desperate “regges” in the middle of the night ringing the doorbell and demanding cash. They’re claiming to be moving for innocuous reasons like “to be closer to the grandkids,” but apparently they’re just tired of the stress and want to deal with the cult from a distance. It’s not clear how many people are making the move, but even a few sure makes it sound like the rank-and-file (all those dentists, chiropractors and small business owners) are reaching a saturation point.

It is quite true that Scientology regges do show up unannounced at any hour of the day or night at the homes and businesses of public Scientologists to demand money. I personally know dozens of former Scientologists to whom this happened. In many cases, when the public Scientologists refused to answer their front door, the rampaging regges went into backyards and beat on the patio doors in an attempt to flush their quarry from hiding. Deplorable conduct but it is nevertheless true.

As Scientology regges are usually Sea Org members, public Scientologists who treat them rudely or object to their intrusive tactics can get in very serious trouble with the Church for doing so. These salespeople are deemed to be helping “Clear the Planet” and so their unwanted intrusions are considered justified by Church management. For this reason, public Scientologists have taken to refusing to answer their doors and have stopped answering their phones as a means to avoid the greedy Scientology fundraisers. These hapless public Scientologists choose to hide as they know the regges have complete immunity to engage in predatory and intrusive tactics that include invading the privacy and sanctity of one’s own home.

John P.’s observation of the flight of public Scientologists from Clearwater led me to create this simplified graph and the accompanying commentary:

J. Swift’s Scientology Real Estate Axiom #1: The more real estate the Cult of Scientology owns in a given area, the more public Scientologists will flee the area, refuse to accept regging phone calls, attend regging briefings, or accept unannounced and intrusive home regging visits. This “Public Scientologist Money Flight” occurs as a function of an ever-increasing number of Scientology fundraising personnel occupying buildings that contain competing Orgs, Scientology front groups, and Scientology fundraising programs.

In practice, each new piece of Scientology real estate becomes a standalone business operating unit within the Scientology corporate structure. These standalone operating units are called “Orgs” or “Social Betterment Groups” and each has its own weekly fundraising quotas.  Scientology also has fundraising programs for both current and planned programs. These fundraising activities also have weekly financial quotas. All of these separate business operating units result in intense competition within Scientology for a shrinking pool of donations.

TAX EXEMPT STATUS + ENDLESS FUNDRAISING = SCIENTOLOGY REAL ESTATE EMPIRE

As a condition of receiving tax exemption, US tax law requires religious tax exempt organizations to spend money in the public benefit. For example, if Catholic churches  provide free services to the homeless this is seen as helping to reduce the tax burden on the US Government. Hence, tax exemption is viewed as a form of exchange. L. Ron Hubbard, however, taught that giving anyone anything for free was wrong. Hubbard said charity was “rewarding a downstat” as it rewarded people for doing nothing. Hubbard’s 1950’s view of poverty was that poor people were lazy; did not want to work; were worthless; and only wanted free welfare checks and handouts.

Hubbard’s 1950 view of poverty became Scientology doctrine. Given Scientology’s doctrinal refusal to engage in charity, the only things Scientology can actually spend its money on are real estate, self-promotion, and financing its perpetual state of warfare with those people and groups it deems enemies. This spending plan results in the Scientology we see today: A self-aggrandizing, angry, paranoid, and hostile cultic group characterized by its bloated real estate holdings and its insane and lavishly-financed wars against former members, critics, the media, and those governments that oppose Scientology and correctly see it as a for-profit business.

THE PARADOX IN WHICH THE SCIENTOLOGY CULT IS TRAPPED

The endless purchasing of real estate by Scientology is paradoxically and ultimately self-destructive as it acts to exponentially increase fundraising pressures amongst competing Scientology business units while simultaneously driving membership and donations out of the Church. Scientology incessantly boasts that the growth in square footage it owns proves Scientology is growing. However, this is a misdirection. While Scientology’s real estate portfolio is indeed growing, the Cult quietly sweeps the real story of its shocking membership decline under the rug.

Scientology’s Ideal Org program was a debacle which proved that the more real estate Scientology purchases and accumulates, the fewer members it will have. The Ideal Org scam drove untold thousands of people out of Scientology due to incessant fundraising demands. Likewise, the Basics book campaign was a giant $100,000,000+ cynical money grab that saw legions of people leave Scientology.

The pointless accumulation of real estate by Scientology is a function of its tax exemption and L. Ron Hubbard’s policy that endless fundraising must occur. What Hubbard called “new money” must be brought into the Scientology each week. The smallest possible portion of this “new money” is spent paying expenses. Hubbard mandated that the remaining money be locked away in untouchable reserves. Hubbard purposely designed Scientology to generate large cash reserves. This is why Scientology’s main focus is on money. Because the IRS does not allow excessive capital accumulation by tax exempt entities, however, Scientology spends part of its reserves on the items described above.

Scientology also spends the minimum amount of money possible on its Sea Org labor force. Sea Org members live far below the US poverty level of $13,860 in annual income for an individual. Legally speaking, Sea Org members are not employees and are classed as religious volunteers. As such, they receive a meager weekly stipend of $50, usually less, plus room and board. Scientology’s goal is to spend the least possible amount of money on Sea Org members while demanding the maximum amount of production. Sea Org members routinely work 80-100 hours per week. A Sea Org work week is six and one half days in duration.  One half day is given to do laundry and clean one’s berthing area. Scientology’s slave labor program also applies to the child labor Scientology uses in the Sea Org.

FLAG LAND BASE

As an illustration of my premise, Scientology’s Flag Land Base in Clearwater, Florida has numerous Orgs, Scientology front groups, and  fundraising programs that compete with each other daily for an ever-shrinking volume of donations. Here is what a Scientologist can be expected to donate to, or pay for, on a trip to Flag Land Base; this list is not exhaustive:

1. Flag Service Organization — Mandatory donations for auditing services and courses
2. The International Association of Scientologists — Scientology’s multibillion dollar slush fund
3. Lodgings at one of the several Scientology-owned hotels
4. Meals at one of the several Scientology-owned restaurants
5. Citizens Commission on Human Rights — The rabid anti-Psychiatry component of Scientology
6. The Way to Happiness Foundation — A Scientology Front Group
7. Youth for Human Rights — A Scientology Front Group
8. United for Human Rights — A Scientology Front Group
9. Foundation for a Drug Free World — A Scientology Front Group
10. Applied Scholastics — A Scientology Front Group
11. Criminon — A Scientology Front Group
12. Volunteer Ministers — A Scientology Front Group
13. The Basics Book Campaign — Fundraising to put L. Ron Hubbard’s books into libraries
14. The Ideal Org Campaign — Fundraising to buy more real estate called “Ideal Orgs”
15. The Archival Project — Fundraising to store L. Ron Hubbard’s works in nuclear proof vaults
16. Advanced Payments — Scientologists are asked to donate money now future services later
17. The L. Ron Hubbard Hall — a planned auditorium in Clearwater

MONASTERY SCIENTOLOGY

Monastery Scientology is a term I coined in 2008 when I predicted that Scientology will be drained of its middle class parishioners and become a haven for only the wealthiest of Scientologists who can afford to stay in the game. Monastery Scientology is becoming inevitable as only the wealthiest and most status-obsessed Scientologists will remain in the Cult of Scientology.

At present, the Cult is in a Palace of Versailles phase in which wealthy Scientologists vie for David Miscavige’s attention and favor as signified by a competition for larger and gaudier IAS statuses and trophies. These statuses and trophies require wealthy Scientologists to increase ever-larger amounts of cash to Scientology.

The prime example of failure in this pointless Palace of Versailles status race was Scientologist Richie Acunto. After donating ten million dollars to Scientology, his Survival Insurance company went bankrupt. And to his ignominy — and that of Scientology —  Richie’s ten million dollar IAS trophy languished in a storage locker. When Richie failed to pay rent on the storage locker, its contents were sold at auction. Richie’s $10,000,000 trophy was sold on eBay to the highest bidder. The Church of Scientology was likely the highest bidder as the Acunto trophy has never been seen since it was sold on eBay. Again, another inconvenient matter swept under the rug. Richie Acunto has been long forgotten by Scientology.

This Palace of Versailles phase is characterized by a never-ending series of useless galas awash in flimsily contrived stories of imagined Scientology global triumphs, wildly inflated and nonsensical statistics, and garish trophies and awards. One of Scientology’s more patently absurd claims is that the mere distribution of its insipid Way to Happiness booklet reduced crime in Colombia by 50 percent.

In the terse no-nonsense language of American corporate life these events can be correctly described as circle jerks.

Truth Revealed: The Church of Scientology Finally Explains How It Has Millions of Members

The Church of Scientology International (CSI) is the “Mother Church” of Scientology. As the official Mother Church, CSI makes this bold statement on one of its official websites:

The truth is that there are millions of individuals who participate in Scientology services and apply it to their lives.

In the very next sentence, CSI identifies the source for its claim that millions of individuals participate in Scientology:

This is according to the individual Churches that maintain the names of their parishioners and a record of their progress up the Scientology Bridge.

While all parishioners’ records are securely maintained at their local Church, the names and addresses of members of all Churches and Missions are provided to Church of Scientology International (CSI), which maintains the mailing list for Church magazines disseminated to all Scientologists. Our numbers come from this international list.

Parishioners’ records are not securely maintained and can be, in fact, culled by OSA to find dirt on Scientologists. Parishioners’ records can also be culled to help regges find “buttons” to raise more money. Laura Dieckman’s legal case has shown us that over 100 people have access to pc folders. And yet CSI claims that Parishioners’ records are securely maintained. Given that this statement is false, we must also treat with scrutiny CSI’s claim “that there are millions of individuals who participate in Scientology services and apply it to their lives.”

There are five glaringly obvious problems with CSI’s claim that millions of people are participating in Scientology:

1. Who are the people at the local Scientology churches sending the names of their members to CSI? The answer is that local staff members are sending the lists of names to CSI. This is a problem because CSI has a policy in which it declares that it does not stand behind any statements or claims made by staff members:

CSI’s claim that “there are millions of individuals who participate in Scientology services and apply it to their lives” is made by Scientology staff members and therefore CSI, per its own policy, takes no responsibility for this claim or any claims made by staff members. Absent verification by an independent third party audit, the staff members reporting millions of members must be assumed to be engaged in false reporting. I say this because there is no empirical evidence whatsoever that Scientology has millions of members — and we certainly can’t believe Scientology’s staff members given the fact that CSI itself refuses to stand behind statements made by its own staff members.

2. CSI designated the IAS as the official membership organization of Scientology. Therefore, only the IAS can make a true and accurate statement of membership numbers. However, the IAS is not a part of the Church of Scientology:

Applications to join the IAS are sent to the IAS. The Church of Scientology International told the IRS that it doesn’t even get a copy of IAS applications:

4. The Church of Scientology International told the IRS that the Church does not have access to IAS records:

The information requested regarding IAS receipts and expenditure is voluminous and not readily available to CSI or any other Scientology-related organization.

5. How can CSI possibly know how many Scientologists there are if it doesn’t know how  many people have applied to the IAS for membership? The answer is that CSI has to rely on statements made by staff members. However, as we said, CSI doesn’t stand behind statements made by staff members.This is all more Scientology nonsense. And yet there it is on Scientology’s website:

Billionaire Bob Duggan, the Panama 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. Please see my article on Matt Feshbach and Okyanos.

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:

BD.Passion.Group

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:

IAS.HH.LA

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.

Scientology Media Productions: Panhandling on the Streets of Hollywood!

757

Imagine telling the entire world you are purchasing an ultra-luxury state-of-the-art $100,000,000 private 757 business jet. As the interior of your jet is designed and built with the most opulent of appointments, you boast to the entire world and show off the spacious interior:

24bb09d700000578-0-image-a-5_1421352928450

The big day arrives as your magnificent $100,000,000 private jet is rolled out of the hangar to great applause and fanfare. However, there is only one problem: You have no money for jet fuel, pilots and crew, ramp fees, landing fees, maintenance, or any other operating costs. In other words, you are so broke that you can’t actually fly your new plane unless people donate money to you for operating expenses. And so your shiny new jet remains parked on the tarmac like a giant useless paperweight.

This, apparently, is exactly what has happened with the recently opened Scientology Media Productions (SMP) facility in Hollywood. As reported by Mike Rinder, the Church of Scientology is now claiming that it needs to raise money in order to fund productions at its $100,000,000 studio. SMP is all set to fly but, alas, has no gas money. Hence, the “Panhandling on the Streets of Hollywood” begging letter from SMP posted by Mike Rinder:

screenshot-1072

Of course, this is all nonsense and is simply more Scientology greed at work. Scientology has plenty of money to fund SMP operating expenses. The IAS could write a big fat check from its billion dollar plus cash reserves and be done with it. After all, the IAS slush fund exists, it is claimed, to advance the aims and purposes of the Scientology religion, right? Seriously, though, Scientology will never fund anything when it can take in “new money” from credulous status-happy Scientologists and hang onto its “old money.”

As Mike Rinder has pointed out many times, the Church of Scientology already has a giant state of the art television, film, and music production facility at its Gold Base in San Jacinto, California that does not operate at anywhere near capacity. It’s not like Scientology actually needs a second underutilized production facility.


Variation on a Scam: The SMP fundraising scam reminds me of the old Super Power building scam. David Miscavige gave endless excuses for years as to why he couldn’t open the Super Power Building. One of Miscavige’s lamest excuses came in 2010 when he said he needed  “1,000 more” Scientologists to join the Sea Org before he could open  the Super Power building — and this is really no different than Miscavige saying Scientology Media Productions needs operating funds before it can produce content:

Super.Power.1000

David Miscavige’s next excuse was that he needed the “Final 300” Sea Org members before he could open Super Power:

SP.300

Having failed to get all of the “Final 300” Sea Org members, David Miscavige was down to needing 110 new Sea Org members:

SP.110

There are always excuses in Scientology for why the planet cannot cleared, buildings cannot be opened, or content cannot be produced in a new $100,000,000 studio. The usual excuses are that more more money has to be raised; more Sea Org members are needed; there has to 10,000 on Solo NOTs; all Orgs must be St. Hill size; all Orgs must be Ideal, etc. It really doesn’t matter so long as an excuse is provided.

I don’t know if Flag ever recruited the 1,000 Sea Org members. What I do know is that the Super Power building remained the most profitable empty building in the world from 1998 until it opened on November 17, 2013. As Ashley Collman of the Daily Mail wrote at the time:

The group broke ground on the Mediterranean Revival-style  building in 1998, but stopped work after finishing the shell.

For three years, the group ceased construction on the project until the city started imposing $250-a-day fines for code violations.

Scientology defectors have explained that the building’s slow construction is due to church leader’s who have allegedly used the project as a fundraising cash cow.

An analysis by the Tampa Bay Times discovered that the church had raised $145million for the building, much higher than the $100million it was estimated to cost.

Who knows? David Miscavige and Scientology may need to postpone production at Scientology Media Productions indefinitely until more money is raised, more Sea Org members are recruited, or until the Commodore returns from Target 2.


To whimsically add to our excursion through one of Scientology’s Scams of the Past, former Sea Org member Aaron Saxton made a very humorous and prescient comment on ESMB during the 2010 “1,000 Sea Org are needed for Super Power!” campaign:

It just occured to me that this statement by DM [that 1,000 Sea Org members are needed for Super Power] will be sending the jitters through the SO, especially within Los Angeles.

They know they will not have a hope in hell of getting this many recruits.

So what they will do is start doing “utilization” surveys on SO members around the world. They will give CMO quotas in each continent to find people “under utilized” and send them to Flag.

Following this they will empty out their RPF’s to get crew to the FSO to get the numbers up.

A similar incident happened in 1995 when DM went nutty at the FSO and we ended up sending over 150 missionaires to FLB.

None of them bar a very select few, ever made it back. They all ended up getting posted down there.

I can see DM doing a similar thing.

It is apparent that DM is going to keep command teams in the continental liaison offices to run things directly as I think DM can see the end of IMO/HGB middle management on the horizon.

Why run things on a via when he thinks he is so great at running it directly?

1000 recruits…LOL, I would pay a dollar to see that!

Hey, should I send in my billion year contract? Perhaps they will re-hire me? I soooo want to be part of the biggest failure in Scn history. Please please please!


In related news, Scientology fundraising in now under way for the L. Ron Hubbard Hall and park in Clearwater, Florida. As gushing Scientology coverage of the recent LRH birthday celebration enthused:

There was also the momentous announcement of the future L. Ron Hubbard Hall in Clearwater, a magnificent auditorium designed to seat thousands with convention and banquet conversion capability, complemented by a beautifully-appointed L. Ron Hubbard Park.

Scientology likes to brag about its accomplishments. I have to give Scientology credit for this: It has amassed the world’s largest irrelevant and non-performing real estate portfolio ever and continues to do. We have the IRS to thank for giving this deviant and real-estate-obsessed group its wholly unmerited tax exemption.

Taking a hard look at Scientology’s slush fund, the unlicensed and unregulated IAS

David_Miscavige

In our last article, we showed that the word “Scientologist” is a collective membership mark used by members of the affiliated churches and missions of Scientology:

Scist1

This statement is found in the fine print of Impact, the official magazine of the International Association of Scientologists. Curiously enough, and as documented last week, the IAS itself is not a part of the ecclesiastical hierarchy of Scientology churches and missions:
IAS3

Given the autonomy of the IAS from the Church of Scientology, we are left to ask by what right or privilege is the IAS able to use the word “Scientologist.” The Scientology weasel answer is contained in the correspondence between the Church and the IRS in 1992:
Scis2
Let’s look at the Scientological sleight of hand here:

— The IAS is the official membership organization of the Church of Scientology.

— The purpose of the IAS is quite lofty and soaring:
IasPurposeDespite the IAS’ overarching purpose and centrality to the Scientology religion itself, the Church’s trademark counsel has advised all of us that the IAS engages in only “mere references” to Scientology’s trademarks and service marks.

One of those trademarks, by the way, is the word “scientologist” itself, which is owned by the RTC.

From the US Patent and Trademark Office:
Scientologist
So, Scientology is so anal, it trademarks the very use of the word “Scientologist,” and yet it somehow leaves unlicensed its massive slush fund, IAS. What gives?

An unlicensed IAS would seem to be a breach of David Miscavige’s duty to protect the ecclesiastical purity of the Scientology trademarks. Indeed, as we read in the Command Channels of Scientology, RTC is a policing function:

RTC

Why does David Miscavige apparently abrogate his primary duty to safeguard the “proper use of the trademarks” when it comes to the IAS? This most curious omission is “hats, not wearing” in the language of Scientology. “Hats, not wearing” means that one is not performing their assigned duties or not carrying out their assigned responsibilities. This is a very serious crime in the Church. L. Ron Hubbard warned against “hats, not wearing” in this policy letter:
Hats
Likewise, the IAS is not licensed by the Church of Spiritual Technology (CST). Instead, the IAS merely offers grateful acknowledgement to the Church of Spiritual Technology dba L. Ron Hubbard Library. This acknowledgement is also contained in the fine print of Impact Magazine:
ImpactCopyThe unlicensed IAS stands in stark contrast to the RTC-licensed Church of Scientology international (CSI) and all of its sub-licensees who must at all times operate under the strict licensure of RTC. And to be clear, all Scientology operations are done under licensure, i.e. they require a license from RTC, or from CST via RTC. In this sense, RTC could be viewed as the operating arm of CST. Thus, the “hats, not wearing” policy letter is relevant as it shows David Miscavige is not doing his duty by allowing the IAS to exist as an unlicensed Scientology entity.

One of the main lessons I have learned through many years of Scientology watching is this: Scientology never does anything legally without a reason, and, this reason is almost always hidden or not obvious. Therefore, even though it violates Miscavige’s duties and the stated functions of RTC, there is a reason David Miscavige and his attorneys did not want to license the IAS.

My thinking here is that IAS-IASA-US IAS Members Trust is a cabal that embodies a gigantic pool of unrestricted cash donations exceeding one billion dollars. Miscavige himself said of the IAS in 2014 “this is the year we went stratospheric.” I personally took this as Miscavige cryptically boasting that the IAS had crossed over some enormous target for cash holdings. It is fashionable these days for corporations to have large cash holdings and so the IAS would be no different.

Thus, in m my view, the IAS must be so completely autonomous legally that it cannot be sued as a licensee of RTC or CST. In the dismissed legal case Rathbun v. Miscavige et. al., Miscavige’s lawyers worked feverishly to prevent Rathbun from piercing the CSI and RTC corporate veils by proving that Miscavige is actually the managing agent of the Church. As presently constructed, Miscavige can secretly control the IAS money while being legally untouchable in any lawsuit.

As we mentioned previously, the invisible hand of the Sea Org is at work: As Captain David Miscavige controls the Sea Org, he therefore controls the IAS, the IASA, and the big fat piggy bank known as the US IAS Members Trust.

Therefore, the IAS must have the freedom to use RTC trademarks and CST copyrights on an unrestricted and unlicensed basis under the rubric of “mere references” in order for Miscavige to remain at arm’s length legally.

Still, one of my long-held suspicions is that David Miscavige has a personal services contract with the IAS and is paid for making speeches at IAS events. Perhaps Miscavige even receives 10% commission on his fundraising activities for the IAS? I say this because Scientology’s doctrine of exchange would demand the IAS compensate Miscavige for his appearances and not expect “something for nothing” as, per LRH, “something for nothing” is criminal:

“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.

(In the Church Scientology the one exception to the criminal condition of out exchange, of wanting “something for nothing” is  the phony Claims Verification Board (CVB). The CVB is a scam; it is a criminal entity that is fully allowed by RTC and CSI to deny repayments of “monies on account” and thus effectively steal “Advanced Payment” money for services that were never delivered and will never be delivered. See my article: Scientology: Refunds and Repayments of Monies on Account.)

All of this Church of Scientology conduct reflects badly upon the IRS. Why the IRS allowed such contradictions from the Church of Scientology is beyond the intellectual grasp of your humble correspondent. Had I been the IRS Commissioner, I would have thrown these chattering Scientology jackdaws and their lawyers out of my office. Nevertheless, as the Proprietor of the Underground Bunker maintains, the Church caved in the IRS. This would explain why the IRS chose to ignore contradictions that should otherwise throw up red flags.

For the IRS to have allowed the IAS, an autonomous fundraising organization (and one that pays fundraising commissions no less), to exist within the Church of Scientology seems very questionable.

But then, it was the IRS that didn’t flinch at the plans of the Church of Spiritual Technology to spend tens of millions of dollars to build twelve Scientology obelisks engraved with The Way to Happiness on each of them:
Obelisk
What a shame they were never built. Instead, Miscavige built his monument out of hard, unlicensed cash.

(This article was originally published on the Underground Bunker and is reprinted here for archival purposes,)