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- SPECIAL REPORT, Page 50COVER STORYThe Thriving Cult of Greed and Power
-
-
- Ruined lives. Lost fortunes. Federal crimes. Scientology poses
- as a religion but is really a ruthless global scam -- and aiming
- for the mainstream.
-
- By RICHARD BEHAR
-
-
- By all appearances, Noah Lottick of Kingston, Pa., had
- been a normal, happy 24-year-old who was looking for his place
- in the world. On the day last June when his parents drove to
- New York City to claim his body, they were nearly catatonic
- with grief. The young Russian-studies scholar had jumped from
- a 10th-floor window of the Milford Plaza Hotel and bounced off
- the hood of a stretch limousine. When the police arrived, his
- fingers were still clutching $171 in cash, virtually the only
- money he hadn't yet turned over to the Church of Scientology,
- the self-help "philosophy" group he had discovered just seven
- months earlier.
-
- His death inspired his father Edward, a physician, to
- start his own investigation of the church. "We thought
- Scientology was something like Dale Carnegie," Lottick says. "I
- now believe it's a school for psychopaths. Their so-called
- therapies are manipulations. They take the best and brightest
- people and destroy them." The Lotticks want to sue the church
- for contributing to their son's death, but the prospect has them
- frightened. For nearly 40 years, the big business of Scientology
- has shielded itself exquisitely behind the First Amendment as
- well as a battery of high-priced criminal lawyers and shady
- private detectives.
-
- The Church of Scientology, started by science-fiction
- writer L. Ron Hubbard to "clear" people of unhappiness, portrays
- itself as a religion. In reality the church is a hugely
- profitable global racket that survives by intimidating members
- and critics in a Mafia-like manner. At times during the past
- decade, prosecutions against Scientology seemed to be curbing
- its menace. Eleven top Scientologists, including Hubbard's wife,
- were sent to prison in the early 1980s for infiltrating,
- burglarizing and wiretapping more than 100 private and
- government agencies in attempts to block their investigations.
- In recent years hundreds of longtime Scientology adherents --
- many charging that they were mentally or physically abused --
- have quit the church and criticized it at their own risk. Some
- have sued the church and won; others have settled for amounts
- in excess of $500,000. In various cases judges have labeled the
- church "schizophrenic and paranoid" and "corrupt, sinister and
- dangerous."
-
- Yet the outrage and litigation have failed to squelch
- Scientology. The group, which boasts 700 centers in 65
- countries, threatens to become more insidious and pervasive than
- ever. Scientology is trying to go mainstream, a strategy that
- has sparked a renewed law-enforcement campaign against the
- church. Many of the group's followers have been accused of
- committing financial scams, while the church is busy attracting
- the unwary through a wide array of front groups in such
- businesses as publishing, consulting, health care and even
- remedial education.
-
- In Hollywood, Scientology has assembled a star-studded
- roster of followers by aggressively recruiting and regally
- pampering them at the church's "Celebrity Centers," a chain of
- clubhouses that offer expensive counseling and career guidance.
- Adherents include screen idols Tom Cruise and John Travolta,
- actresses Kirstie Alley, Mimi Rogers and Anne Archer, Palm
- Springs mayor and performer Sonny Bono, jazzman Chick Corea and
- even Nancy Cartwright, the voice of cartoon star Bart Simpson.
- Rank-and-file members, however, are dealt a less glamorous
- Scientology.
-
- According to the Cult Awareness Network, whose 23 chapters
- monitor more than 200 "mind control" cults, no group prompts
- more telephone pleas for help than does Scientology. Says
- Cynthia Kis ser, the network's Chicago-based executive director:
- "Scientology is quite likely the most ruthless, the most
- classically terroristic, the most litigious and the most
- lucrative cult the country has ever seen. No cult extracts more
- money from its members." Agrees Vicki Aznaran, who was one of
- Sci entology's six key leaders until she bolted from the church
- in 1987: "This is a criminal organization, day in and day out.
- It makes Jim and Tammy ((Bakker)) look like kindergarten."
-
- To explore Scientology's reach, TIME conducted more than
- 150 interviews and reviewed hundreds of court records and
- internal Scientology documents. Church officials refused to be
- interviewed. The investigation paints a picture of a depraved
- yet thriving enterprise. Most cults fail to outlast their
- founder, but Scientology has prospered since Hubbard's death in
- 1986. In a court filing, one of the cult's many entities -- the
- Church of Spiritual Technology -- listed $503 million in income
- just for 1987. High-level defectors say the parent organization
- has squirreled away an estimated $400 million in bank accounts
- in Liechtenstein, Switzerland and Cyprus. Scientology probably
- has about 50,000 active members, far fewer than the 8 million
- the group claims. But in one sense, that inflated figure rings
- true: millions of people have been affected in one way or
- another by Hubbard's bizarre creation.
-
- Scientology is now run by David Miscavige, 31, a high
- school dropout and second-generation church member. Defectors
- describe him as cunning, ruthless and so paranoid about
- perceived enemies that he kept plastic wrap over his glass of
- water. His obsession is to attain credibility for Scien tology
- in the 1990s. Among other tactics, the group:
-
- -- Retains public relations powerhouse Hill and Knowlton
- to help shed the church's fringe-group image.
-
- -- Joined such household names as Sony and Pepsi as a main
- sponsor of Ted Turner's Goodwill Games.
-
- -- Buys massive quantities of its own books from retail
- stores to propel the titles onto best-seller lists.
-
- -- Runs full-page ads in such publications as Newsweek and
- Business Week that call Scien tology a "philosophy," along with
- a plethora of TV ads touting the group's books.
-
- -- Recruits wealthy and respectable professionals through
- a web of consulting groups that typically hide their ties to
- Scientology.
-
- The founder of this enterprise was part storyteller, part
- flimflam man. Born in Nebraska in 1911, Hubbard served in the
- Navy during World War II and soon afterward complained to the
- Veterans Administration about his "suicidal inclinations" and
- his "seriously affected" mind. Nevertheless, Hubbard was a
- moderately successful writer of pulp science fiction. Years
- later, church brochures described him falsely as an "extensively
- decorated" World War II hero who was crippled and blinded in
- action, twice pronounced dead and miraculously cured through
- Scientol ogy. Hubbard's "doctorate" from "Sequoia University"
- was a fake mail-order degree. In a 1984 case in which the church
- sued a Hubbard biographical researcher, a California judge
- concluded that its founder was "a pathological liar."
-
- Hubbard wrote one of Scientology's sacred texts,
- Dianetics: The Modern Science of Mental Health, in 1950. In it
- he introduced a crude psychotherapeutic technique he called
- ``auditing." He also created a simplified lie detector (called
- an "E-meter") that was designed to measure electrical changes
- in the skin while subjects discussed intimate details of their
- past. Hubbard argued that unhappiness sprang from mental
- aberrations (or "engrams") caused by early traumas. Counseling
- sessions with the E-meter, he claimed, could knock out the
- engrams, cure blindness and even improve a person's intelligence
- and appearance.
-
- Hubbard kept adding steps, each more costly, for his
- followers to climb. In the 1960s the guru decreed that humans
- are made of clusters of spirits (or "thetans") who were banished
- to earth some 75 million years ago by a cruel galactic ruler
- named Xenu. Naturally, those thetans had to be audited.
-
- An Internal Revenue Service ruling in 1967 stripped
- Scientology's mother church of its tax-exempt status. A federal
- court ruled in 1971 that Hubbard's medical claims were bogus and
- that E-meter auditing could no longer be called a scientific
- treatment. Hubbard responded by going fully religious, seeking
- First Amendment protection for Scientology's strange rites. His
- counselors started sporting clerical collars. Chapels were
- built, franchises became "missions," fees became "fixed
- donations," and Hubbard's comic-book cosmology became "sacred
- scriptures."
-
- During the early 1970s, the IRS conducted its own auditing
- sessions and proved that Hubbard was skimming millions of
- dollars from the church, laundering the money through dummy
- corporations in Panama and stashing it in Swiss bank accounts.
- Moreover, church members stole IRS documents, filed false tax
- returns and harassed the agency's employees. By late 1985, with
- high-level defectors accusing Hubbard of having stolen as much
- as $200 million from the church, the IRS was seeking an
- indictment of Hubbard for tax fraud. Scien tology members
- "worked day and night" shredding documents the IRS sought,
- according to defector Aznaran, who took part in the scheme.
- Hubbard, who had been in hiding for five years, died before the
- criminal case could be prosecuted.
-
- Today the church invents costly new services with all the
- zeal of its founder. Scientology doctrine warns that even
- adherents who are "cleared" of engrams face grave spiritual
- dangers unless they are pushed to higher and more expensive
- levels. According to the church's latest price list, recruits
- -- "raw meat," as Hubbard called them -- take auditing sessions
- that cost as much as $1,000 an hour, or $12,500 for a 12
- 1/2-hour "intensive."
-
- Psychiatrists say these sessions can produce a
- drugged-like, mind-controlled euphoria that keeps customers
- coming back for more. To pay their fees, newcomers can earn
- commissions by recruiting new members, become auditors
- themselves (Miscavige did so at age 12), or join the church
- staff and receive free counseling in exchange for what their
- written contracts describe as a "billion years" of labor. "Make
- sure that lots of bodies move through the shop," implored
- Hubbard in one of his bulletins to officials. "Make money. Make
- more money. Make others produce so as to make money . . .
- However you get them in or why, just do it."
-
- Harriet Baker learned the hard way about Scientology's
- business of selling religion. When Baker, 73, lost her husband
- to cancer, a Scientologist turned up at her Los Angeles home
- peddling a $1,300 auditing package to cure her grief. Some
- $15,000 later, the Scientologists discovered that her house was
- debt free. They arranged a $45,000 mortgage, which they
- pressured her to tap for more auditing until Baker's children
- helped their mother snap out of her daze. Last June, Baker
- demanded a $27,000 refund for unused services, prompting two
- cult members to show up at her door unannounced with an E-meter
- to interrogate her. Baker never got the money and, financially
- strapped, was forced to sell her house in September.
-
- Before Noah Lottick killed himself, he had paid more than
- $5,000 for church counseling. His behavior had also become
- strange. He once remarked to his parents that his Scientology
- mentors could actually read minds. When his father suffered a
- major heart attack, Noah insisted that it was purely
- psychosomatic. Five days before he jumped, Noah burst into his
- parents' home and demanded to know why they were spreading
- "false rumors" about him -- a delusion that finally prompted his
- father to call a psychiatrist.
-
- It was too late. "From Noah's friends at Dianetics" read
- the card that accompanied a bouquet of flowers at Lottick's
- funeral. Yet no Scientology staff members bothered to show up.
- A week earlier, local church officials had given Lottick's
- parents a red-carpet tour of their center. A cult leader told
- Noah's parents that their son had been at the church just hours
- before he disappeared -- but the church denied this story as
- soon as the body was identified. True to form, the cult even
- haggled with the Lotticks over $3,000 their son had paid for
- services he never used, insisting that Noah had intended it as
- a "donation."
-
- The church has invented hundreds of goods and services for
- which members are urged to give "donations." Are you having
- trouble "moving swiftly up the Bridge" -- that is, advancing up
- the stepladder of enlightenment? Then you can have your case
- reviewed for a mere $1,250 "donation." Want to know "why a
- thetan hangs on to the physical universe?" Try 52 of Hubbard's
- tape-recorded speeches from 1952, titled "Ron's Philadelphia
- Doctorate Course Lectures," for $2,525. Next: nine other series
- of the same sort. For the collector, gold-and-leather-bound
- editions of 22 of Hubbard's books (and bookends) on subjects
- ranging from Scientology ethics to radiation can be had for just
- $1,900.
-
- To gain influence and lure richer, more sophisticated
- followers, Scientology has lately resorted to a wide array of
- front groups and financial scams. Among them:
-
-
-
- CONSULTING. Sterling Management Systems, formed in 1983,
- has been ranked in recent years by Inc. magazine as one of
- America's fastest-growing private companies (estimated 1988
- revenues: $20 million). Sterling regularly mails a free
- newsletter to more than 300,000 health-care professionals,
- mostly dentists, promising to increase their incomes
- dramatically. The firm offers seminars and courses that
- typically cost $10,000. But Sterling's true aim is to hook
- customers for Scientology. "The church has a rotten product, so
- they package it as something else," says Peter Georgiades, a
- Pittsburgh attorney who represents Sterling victims. "It's a
- kind of bait and switch." Sterling's founder, dentist Gregory
- Hughes, is now under investigation by California's Board of
- Dental Examiners for incompetence. Nine lawsuits are pending
- against him for malpractice (seven others have been settled),
- mostly for or thodontic work on children.
-
- Many dentists who have unwittingly been drawn into the
- cult are filing or threatening lawsuits as well. Dentist Robert
- Geary of Medina, Ohio, who entered a Sterling seminar in 1988,
- endured "the most extreme high-pressure sales tactics I have
- ever faced." Sterling officials told Geary, 45, that their firm
- was not linked to Scientology, he says. But Geary claims they
- eventually convinced him that he and his wife Dorothy had
- personal problems that required auditing. Over five months, the
- Gearys say, they spent $130,000 for services, plus $50,000 for
- "gold-embossed, investment-grade" books signed by Hubbard. Geary
- contends that Scientologists not only called his bank to
- increase his credit-card limit but also forged his signature on
- a $20,000 loan application. "It was insane," he recalls. "I
- couldn't even get an accounting from them of what I was paying
- for." At one point, the Gearys claim, Scientologists held
- Dorothy hostage for two weeks in a mountain cabin, after which
- she was hospitalized for a nervous breakdown.
-
- Last October, Sterling broke some bad news to another
- dentist, Glover Rowe of Gadsden, Ala., and his wife Dee. Tests
- showed that unless they signed up for auditing, Glover's
- practice would fail, and Dee would someday abuse their child.
- The next month the Rowes flew to Glendale, Calif., where they
- shuttled daily from a local hotel to a Dianetics center. "We
- thought they were brilliant people because they seemed to know
- so much about us," recalls Dee. "Then we realized our hotel room
- must have been bugged." After bolting from the center, $23,000
- poorer, the Rowes say, they were chased repeatedly by
- Scientologists on foot and in cars. Dentists aren't the only
- ones at risk. Scientology also makes pitches to chiropractors,
- podiatrists and veterinarians.
-
-
-
- PUBLIC INFLUENCE. One front, the Way to Happiness
- Foundation, has distributed to children in thousands of the
- nation's public schools more than 3.5 million copies of a
- booklet Hubbard wrote on morality. The church calls the scheme
- "the largest dissemination project in Scientology history."
- Applied Scholastics is the name of still another front, which
- is attempting to install a Hubbard tutorial program in public
- schools, primarily those populated by minorities. The group also
- plans a 1,000-acre campus, where it will train educators to
- teach various Hubbard methods. The disingenuously named Citizens
- Commission on Human Rights is a Scientology group at war with
- psychiatry, its primary competitor. The commission typically
- issues reports aimed at discrediting particular psychiatrists
- and the field in general. The CCHR is also behind an all-out war
- against Eli Lilly, the maker of Prozac, the nation's top-selling
- anti depression drug. Despite scant evidence, the group's
- members -- who call themselves "psychbusters" -- claim that
- Prozac drives people to murder or suicide. Through mass
- mailings, appearances on talk shows and heavy lobbying, CCHR has
- hurt drug sales and helped spark dozens of lawsuits against
- Lilly.
-
- Another Scientology-linked group, the Concerned
- Businessmen's Association of America, holds antidrug contests
- and awards $5,000 grants to schools as a way to recruit students
- and curry favor with education officials. West Virginia Senator
- John D. Rockefeller IV unwittingly commended the CBAA in 1987
- on the Senate floor. Last August author Alex Haley was the
- keynote speaker at its annual awards banquet in Los Angeles.
- Says Haley: "I didn't know much about that group going in. I'm
- a Methodist." Ignorance about Scientology can be embarrassing:
- two months ago, Illinois Governor Jim Edgar, noting that
- Scientology's founder "has solved the aberrations of the human
- mind," proclaimed March 13 "L. Ron Hubbard Day." He rescinded
- the proclamation in late March, once he learned who Hubbard
- really was.
-
-
-
- HEALTH CARE. HealthMed, a chain of clinics run by
- Scientologists, promotes a grueling and excessive system of
- saunas, exercise and vitamins designed by Hubbard to purify the
- body. Experts denounce the regime as quackery and potentially
- harmful, yet HealthMed solicits unions and public agencies for
- contracts. The chain is plugged heavily in a new book, Diet for
- a Poisoned Planet, by journalist David Steinman, who concludes
- that scores of common foods (among them: peanuts, bluefish,
- peaches and cottage cheese) are dangerous.
-
- Former Surgeon General C. Everett Koop labeled the book
- "trash," and the Food and Drug Administration issued a paper in
- October that claims Steinman distorts his facts. "HealthMed is
- a gateway to Scientology, and Steinman's book is a sorting
- mechanism," says physician William Jarvis, who is head of the
- National Council Against Health Fraud. Steinman, who describes
- Hubbard favorably as a "researcher," denies any ties to the
- church and contends, "HealthMed has no affiliation that I know
- of with Scientology."
-
-
-
- DRUG TREATMENT. Hubbard's purification treatments are the
- mainstay of Narconon, a Scientology-run chain of 33 alcohol and
- drug rehabilitation centers -- some in prisons under the name
- "Criminon" -- in 12 countries. Narconon, a classic vehicle for
- drawing addicts into the cult, now plans to open what it calls
- the world's largest treatment center, a 1,400-bed facility on
- an Indian reservation near Newkirk, Okla. (pop. 2,400). At a
- 1989 ceremony in Newkirk, the Association for Better Living and
- Education presented Narconon a check for $200,000 and a study
- praising its work. The association turned out to be part of
- Scientology itself. Today the town is battling to keep out the
- cult, which has fought back through such tactics as sending
- private detectives to snoop on the mayor and the local newspaper
- publisher.
-
-
-
- FINANCIAL SCAMS. Three Florida Scientologists, including
- Ronald Bernstein, a big contributor to the church's
- international "war chest," pleaded guilty in March to using
- their rare-coin dealership as a money laundry. Other notorious
- activities by Scientologists include making the shady Vancouver
- stock exchange even shadier (see box) and plotting to plant
- operatives in the World Bank, International Monetary Fund and
- Export-Import Bank of the U.S. The alleged purpose of this
- scheme: to gain inside information on which countries are going
- to be denied credit so that Scientology-linked traders can make
- illicit profits by taking "short" positions in those countries'
- currencies.
-
- In the stock market the practice of "shorting" involves
- borrowing shares of publicly traded companies in the hope that
- the price will go down before the stocks must be bought on the
- market and returned to the lender. The Feshbach brothers of Palo
- Alto, Calif. -- Kurt, Joseph and Matthew -- have become the
- leading short sellers in the U.S., with more than $500 million
- under management. The Feshbachs command a staff of about 60
- employees and claim to have earned better returns than the Dow
- Jones industrial average for most of the 1980s. And, they say,
- they owe it all to the teachings of Scientology, whose "war
- chest" has received more than $1 million from the family.
-
- The Feshbachs also embrace the church's tactics; the
- brothers are the terrors of the stock exchanges. In
- congressional hearings in 1989, the heads of several companies
- claimed that Feshbach operatives have spread false information
- to government agencies and posed in various guises -- such as
- a Securities and Exchange Commission official -- in an effort
- to discredit their companies and drive the stocks down. Michael
- Russell, who ran a chain of business journals, testified that
- a Feshbach employee called his bankers and interfered with his
- loans. Sometimes the Feshbachs send private detectives to dig
- up dirt on firms, which is then shared with business reporters,
- brokers and fund managers.
-
- The Feshbachs, who wear jackets bearing the slogan "stock
- busters," insist they run a clean shop. But as part of a current
- probe into possible insider stock trading, federal officials are
- reportedly investigating whether the Feshbachs received
- confidential information from FDA employees. The brothers seem
- aligned with Scientology's war on psychiatry and medicine: many
- of their targets are health and biotechnology firms. "Legitimate
- short selling performs a public service by deflating hyped
- stocks," says Robert Flaherty, the editor of Equities magazine
- and a harsh critic of the brothers. "But the Feshbachs have
- damaged scores of good start-ups."
-
- Occasionally a Scientologist's business antics land him in
- jail. Last August a former devotee named Steven Fishman began
- serving a five-year prison term in Florida. His crime: stealing
- blank stock-confirmation slips from his employer, a major
- brokerage house, to use as proof that he owned stock entitling
- him to join dozens of successful class-action lawsuits. Fishman
- made roughly $1 million this way from 1983 to 1988 and spent as
- much as 30% of the loot on Scientology books and tapes.
-
- Scientology denies any tie to the Fishman scam, a claim
- strongly disputed by both Fishman and his longtime psychiatrist,
- Uwe Geertz, a prominent Florida hypnotist. Both men claim that
- when arrested, Fishman was ordered by the church to kill Geertz
- and then do an "EOC," or end of cycle, which is church jargon
- for suicide.
-
-
-
- BOOK PUBLISHING. Scientology mischiefmaking has even moved
- to the book industry. Since 1985 at least a dozen Hubbard
- books, printed by a church company, have made best-seller lists.
- They range from a 5,000-page sci-fi decology (Black Genesis,
- The Enemy Within, An Alien Affair) to the 40-year-old
- Dianetics. In 1988 the trade publication Publishers Weekly
- awarded the dead author a plaque commemorating the appearance
- of Dianetics on its best-seller list for 100 consecutive weeks.
-
- Critics pan most of Hubbard's books as unreadable, while
- defectors claim that church insiders are sometimes the real
- authors. Even so, Scientology has sent out armies of its
- followers to buy the group's books at such major chains as B.
- Dalton's and Waldenbooks to sustain the illusion of a
- best-selling author. A former Dalton's manager says that some
- books arrived in his store with the chain's price stickers
- already on them, suggesting that copies are being recycled.
- Scientology claims that sales of Hubbard books now top 90
- million worldwide. The scheme, set up to gain converts and
- credibility, is coupled with a radio and TV advertising campaign
- virtually unparalleled in the book industry.
-
- Scientology devotes vast resources to squelching its
- critics. Since 1986 Hubbard and his church have been the subject
- of four unfriendly books, all released by small yet courageous
- publishers. In each case, the writers have been badgered and
- heavily sued. One of Hubbard's policies was that all perceived
- enemies are "fair game" and subject to being "tricked, sued or
- lied to or destroyed." Those who criticize the church --
- journalists, doctors, lawyers and even judges -- often find
- themselves engulfed in litigation, stalked by private eyes,
- framed for fictional crimes, beaten up or threatened with death.
- Psychologist Margaret Singer, 69, an outspoken Scientology
- critic and professor at the University of California, Berkeley,
- now travels regularly under an assumed name to avoid harassment.
-
- After the Los Angeles Times published a negative series on
- the church last summer, Scientologists spent an estimated $1
- million to plaster the reporters' names on hundreds of
- billboards and bus placards across the city. Above their names
- were quotations taken out of context to portray the church in
- a positive light.
-
- The church's most fearsome advocates are its lawyers.
- Hubbard warned his followers in writing to "beware of attorneys
- who tell you not to sue . . . the purpose of the suit is to
- harass and discourage rather than to win." Result: Scientology
- has brought hundreds of suits against its perceived enemies and
- today pays an estimated $20 million annually to more than 100
- lawyers.
-
- One legal goal of Scientology is to bankrupt the
- opposition or bury it under paper. The church has 71 active
- lawsuits against the IRS alone. One of them, Miscavige vs. IRS,
- has required the U.S. to produce an index of 52,000 pages of
- documents. Boston attorney Michael Flynn, who helped Scientology
- victims from 1979 to 1987, personally endured 14 frivolous
- lawsuits, all of them dismissed. Another lawyer, Joseph Yanny,
- believes the church "has so subverted justice and the judicial
- system that it should be barred from seeking equity in any
- court." He should know: Yanny represented the cult until 1987,
- when, he says, he was asked to help church officials steal
- medical records to blackmail an opposing attorney (who was
- allegedly beaten up instead). Since Yanny quit representing the
- church, he has been the target of death threats, burglaries,
- lawsuits and other harassment.
-
- Scientology's critics contend that the U.S. needs to crack
- down on the church in a major, organized way. "I want to know,
- Where is our government?" demands Toby Plevin, a Los Angeles
- attorney who handles victims. "It shouldn't be left to private
- litigators, because God knows most of us are afraid to get
- involved." But law-enforcement agents are also wary. "Every
- investigator is very cautious, walking on eggshells when it
- comes to the church," says a Florida police detective who has
- tracked the cult since 1988. "It will take a federal effort with
- lots of money and manpower."
-
- So far the agency giving Scientology the most grief is the
- IRS, whose officials have implied that Hubbard's successors may
- be looting the church's coffers. Since 1988, when the U.S.
- Supreme Court upheld the revocation of the cult's tax-exempt
- status, a massive IRS probe of church centers across the country
- has been under way. An IRS agent, Marcus Owens, has estimated
- that thousands of IRS employees have been involved. Another
- agent, in an internal IRS memorandum, spoke hopefully of the
- "ultimate disintegration" of the church. A small but helpful
- beacon shone last June when a federal appeals court ruled that
- two cassette tapes featuring conversations between church
- officials and their lawyers are evidence of a plan to commit
- "future frauds" against the IRS.
-
- The IRS and FBI have been debriefing Scientology defectors
- for the past three years, in part to gain evidence for a major
- racketeering case that appears to have stalled last summer.
- Federal agents complain that the Justice Department is unwilling
- to spend the money needed to endure a drawn-out war with
- Scientology or to fend off the cult's notorious jihads against
- individual agents. "In my opinion the church has one of the most
- effective intelligence operations in the U.S., rivaling even
- that of the FBI," says Ted Gunderson, a former head of the FBI's
- Los Angeles office.
-
- Foreign governments have been moving even more vigorously
- against the organization. In Canada the church and nine of its
- members will be tried in June on charges of stealing government
- documents (many of them retrieved in an enormous police raid of
- the church's Toronto headquarters). Scientology proposed to give
- $1 million to the needy if the case was dropped, but Canada
- spurned the offer. Since 1986 authorities in France, Spain and
- Italy have raided more than 50 Scientology centers. Pending
- charges against more than 100 of its overseas church members
- include fraud, extortion, capital flight, coercion, illegally
- practicing medicine and taking advantage of mentally
- incapacitated people. In Germany last month, leading politicians
- accused the cult of trying to infiltrate a major party as well
- as launching an immense recruitment drive in the east.
-
- Sometimes even the church's biggest zealots can use a
- little protection. Screen star Travolta, 37, has long served as
- an unofficial Scientology spokesman, even though he told a
- magazine in 1983 that he was opposed to the church's management.
- High-level defectors claim that Travolta has long feared that
- if he defected, details of his sexual life would be made public.
- "He felt pretty intimidated about this getting out and told me
- so," recalls William Franks, the church's former chairman of the
- board. "There were no outright threats made, but it was
- implicit. If you leave, they immediately start digging up
- everything." Franks was driven out in 1981 after attempting to
- reform the church.
-
- The church's former head of security, Richard Aznaran,
- recalls Sci entology ringleader Miscavige repeatedly joking to
- staffers about Travolta's allegedly promiscuous homosexual
- behavior. At this point any threat to expose Travolta seems
- superfluous: last May a male porn star collected $100,000 from
- a tabloid for an account of his alleged two-year liaison with
- the celebrity. Travolta refuses to comment, and in December his
- lawyer dismissed questions about the subject as "bizarre." Two
- weeks later, Travolta announced that he was getting married to
- actress Kelly Preston, a fellow Scientologist.
-
- Shortly after Hubbard's death the church retained Trout &
- Ries, a respected, Connecticut-based firm of marketing
- consultants, to help boost its public image. "We were brutally
- honest," says Jack Trout. "We advised them to clean up their
- act, stop with the controversy and even to stop being a church.
- They didn't want to hear that.'' Instead, Scientology hired one
- of the country's largest p.r. outfits, Hill and Knowlton, whose
- executives refuse to discuss the lucrative relationship. "Hill
- and Knowlton must feel that these guys are not totally off the
- wall," says Trout. "Unless it's just for the money."
-
- One of Scientology's main strategies is to keep advancing
- the tired argument that the church is being "persecuted" by
- antireligionists. It is supported in that position by the
- American Civil Liberties Union and the National Council of
- Churches. But in the end, money is what Scientology is all
- about. As long as the organization's opponents and victims are
- successfully squelched, Scientology's managers and lawyers will
- keep pocketing millions of dollars by helping it achieve its
- ends.
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