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(818) 905-5971 5 A~O~EYS FOR: Plaintiffs 8 SUPERIOR COURT FOR THE STATE OF ~IFO~ 9 CO~ OF LOS ~GELES ] ] ~F~D ST~SFIE~, V~ERIE ST~SFIE~, ) ]2 BTRING~ ~ITFIE~, R~Y ~ITFIKLD, ) ~SE ~.: " and F[EDOM FOR ~L IN ~LIGION ) C~SS ACTION ]3 (F.A.I.R.), a California Non-Profit ) Organization, individually and on ) ]4 behalf of all o~ers s~ilarly ) 1. F~UD situated, ) 2. BBCH OF A ~5 Plaintiffs, ) FIDUC~Y ~- vs ) TIONSHIP OR ]~ NO~ STA[~, A~inistrator of ~e ) DUTY Estate of L. RON H~B~; The Estate ) 3. IN~CT~ ]7 of L. RON H~B~; CHURCH OF SPIRITU~ ) LIEF ~D CON- TE~OL~Y, a California Non-Profit ) STRUCTI~ TRUST ~8 Organization; CHURCH OF SCIENTOLOGY OF )' ~IFO~, a California Non-Profit ) ]9 Corporation; CHURCH OF SCIE~OLGY ) ~V~CED OR~IZATION OF LOS ~GELES, ) 20 a California Non-Profit Coloration; ) ~URCH OF SCI~TOL~Y ~IRI~ SAINT ) ~] ~I~ ORG~I~TION, a California Non- ) Profit Coloration; CHURCH OF SCI~- ) ~ TOL~Y OF S~ F~CISCO, a California Non-Profit Organizationr C~R~ OF ) ~ SCI~TOL~Y F~G SERVICES OR~IZATION, ) a Florida Non-Profit Co~ration; ~RY ) 24 SUE H~~ ~ AUTHOR SERVICES, INC., a ) Califomia for profit Coloration; ) ~ RELIGIOUS TEC~OL~Y CENTER, a Calif- ) omia Non-Profit Religious Corpora- ) ~8 tio~"OAVID MIS~VIGE.~ ~ BROEKER; ) PAT BROEKER; SHE~ L~SKE; VICKI ) ' 27 AZNA~; HEBER J~TZSCH; IN HOD~; ) OFFICE OF SPEC~ ~FAI~; BRIDGE PUB- ) 28 LI~TIONS] INC.; PUBLI~TIONS ORG~I- ) -1- ] ZATION, INC.; CHURCH OF SCIENTOLOGY ) CELEBR/TY CENTER INTERNATIONAL, INC.; ) 2 CHURCH OF SCIENTOLOGY OF LOS ANGELES, ) INC.; JOHN PETERSON; LYMAN SPUREOCK; ) 3 TERRI GAMBOA; MARC YAGER; RAY MITHOFF,' and DOES I THROUGH 100, INCLUSIVE; ) 4 Defendants. ) 5 6 1 7 Plaintiffs named in the caption of this Complaint are 8 all residents of Los Angeles County, State of California. 9 2 ~0 Defendants are individuals and corporate entities either ~] duly organized or existing under the laws of California with ~2 principal place of business in the City of Los Angeles, County ~3 of Los Angeles, California, or foreign corporations and indivi- ]4 duals doing business in the City of Los Angeles, County of Los ]5 Angeles, California. 3 Plaintiffs do not know the true names and capacities of ~8 defendants sued herein as DOES I to 100, inclusive, and there~9 fore sues them by such fictitious names. Plaintiffs will amend 20 this Complaint to allege their true names and capacities when 2] ascertained. Plaintiffs are informed and believe that each of 22 the fictitiously named defendants is responsible in some manner 23 for the occurrences herein alleged, and that plaintiffs' damages 24 as herein alleged were proximately caused by such occurrences. ~5 Further, plaintiffs are informed and believe that said defendants 26 and each of them are agents and employees of each other and at 27 all relevant times mentioned herein were acting within the. course 28 and scope of that employment with the consent, permission and ~ authority of each other. 4 2 INTRODUCTION 3 Plaintiffs are suing individually on his or her own 4 behalf and, collectively, on behalf of all persons similarly 5 situated. The class which plaintiffs represent is composed of 6 present or former members of the Church of Scientology. These 7 members constitute a large class of individuals in like circums- 8 tances and like claims against the defendants. At this time, 9 approximately 400 individuals have associated with the herein ~0 named plaintiffs for the purpose of bringing this class action. ]~ Plaintiffs estimate that there are several thousand other indi- a2 viduals who are similarly situated as they are and with similar ~3 claims against these same defendants. Together, they represent ~4 a substantial number of the membership of the Church of Sciento- ~5 logy. The persons in the class are numerous, consisting of ~6 several thousand individuals, that the Joinder of all such 37 persons is impracticable and that the disposition of plaintiffs' 18 claims in a single class action is a benefit to the parties and ~9 to the court. 20 5 2] There is a well-defined community of interest in the ~9 questions of law and fact involved in this cause affecting the 23 parties to be represented in that: a. fraudulent representations have been made by Z defendants concerning their tax-exempt status and 26 charitable nature, concerning the manner by which 27 moneys were obtained and received by L. Ron Bubbard 28 and defendants named herein, concerning the confi- -3- ~ dentiality of defendants' auditing files, and ") concerning L. Ron Bubbard~s background, achieve- 3 ments and charactert 4 .b. There has been a breach of fiduciary duty to all 5 the members of the class~ 6 c. Plaintiffs seek equitable relief and request that 7 a constructive trust be imposed on all pertinent 8 assets of defendants. 9 All of the above allegations are more specifically ~0 stated further in the following paragraphs of this complaint. ~l Proof of a common or single pattern of facts will establish the '~2 right of each member of the class to recover on their claims. ~3 Plaintiffs' demands are typical of those of the class and plain14 tiffs are expected to be able to fairly and adequately represent ~5 the interests of the class. Plaintiffs have brought this action for members of the 18 class for the purpose of vindicating numerous smaller claims ~9 which would otherwise remain unsatisfied and unredressed, and 20 reasonably to avoid multiplicity of suits, inconsistent indivi21 dual Judgments, and to effect Judicial economy. There is no 22 plain, speedy or adequate remedy other than by maintenance of 23 this class action considering the relatively small amounts of 24 damage incurred by each plaintiff herein where pursuing other 25 remedies would be economically unfeasible. Consequently, there 26 would be a failure of Justice but for the maintenance of the 27 present class action. 28// '4-- 1 2 The class members have two types of claims: 3 a. for money damages 4~ b. for declaratory and inJunctive relief. 5 Although the named m~_mbers of the class each have money 6 damages in excess of $10,000.00, all members of the class have 7 an interest in a common fund held by the defendants. All 8 members of the class have similar claims for declaratory and 9 inJunctive relief. 10 e 11 Within the general class there are two sub-classes with 12 distinctly different claims for money damages: 13 a. individual class members whose money damages 14 are based on specific monetary amounts paid 15 to the defendants; 16 b. individual class members whose money damages 17 are based upon specific monetary amounts for 18 compensation due them from labor provided to 19 the defendants. 20 9 21 All members of the class can be specifically ascertained 22= and identified as former or present members of the Church of 23 Scientology. Since the class is estimated to include several 24 thousand members residing throughout the United States and 25 several other countries, Joinder of them all is impractical. 26 The questions of fact and issues of law raised by the Complaint 27 are cc~-,~on to all class members. The claims of the plaintiffs 28 named herein are typical of the claims of the entire class. -5- 2 Defendants, at all relevant times, are corporations 3 and members and officials of corporations actively involved 4 and directly.participated in acitivities of the Church of 5 Scientology and L. Ron Hubbard. Plaintiffs seek recovery of 6 a common fund of money and other assets in order to satisfy 7 their claims. The co~on fund and such other assets are now 8 in the possession, custody and control of the defendants. 9 Plaintiffs also seek possession, custody and control of certain ~0 files, ,confessional'O~ .confidenti&l"' ffles" belonging to ~~ members of the class. These 'files' contain confidential infor]2 marion about the plaintiffs and other members of the class ~3 which, along with'the various amounts of money, were obtained 14 by defendants through deceit and fraudulent means. 15 11 ~6 PARTIES - PLAINTIFFS ~7 Plaintiff, Mary Maren, was a member of the Church of ~8 Scientology from 1962 to 1983. She currently resides in Los ~9 Angeles, California. Said plaintiff paid in excess of $10,000.00 20 to the Church of Scientology based on the fraudulent represen9~ tations set forth in this complaint. She worked as an employee 22 of the Church of Scientology for approximately ten (10) years 23~ by reason of the same fraudulent representations. 12 Plaintiff Frankl'in' Freedman 'was'a ~embe~ O'f .the Church of 28 Scientoloqy from 1965 to 1982. He currently resides in Los 27 Angeles, California. Said plaintiff paid in excess of $10,000.00 28 to the defendant Church of Scientology on the basis of the same -6- ~ fraudulent representations set forth in this Complaint; and he 2 worked as an employee of the Church of Scientology for' 3 approximately thirteen (13) years, based on the same fraudulent 4 representations. 5 13 6 Plaintiff, Manfred Stansfield, was a member of the 7 Church of Scientology its beginning to 1983. He currently 8 resides in Los Angeles, California. Plaintiff, Manfred 9 Stanfield paid in excess of $10,000.00 to the Church of 10 Scientology based on the fraudulent representations set forth 1] in this Complaint; and he worked as an employee of the Church 12 of Scientology for approximately one (1) year based on the 13 same fraudulent representations. 14 14 ~5 Plaintiff, Valerie Stansfield, was a member of the ~6! Church of Scientology from 1961 to 1983. She currently resides 17 in Los Angeles, California. Plaintiff, Valetie Stansfield ~8 paid in excess of $10,000.00 to the Church of Scientology 39 based on the fraudulent representations set forth in this 20 Complaint; and she worked as an employee of the Church of 2] Scientology for approximately ten (10) years, based on the 22 same fruadulent representations. 23~ 15 24 Plaintiff, Jerry Whitfield was a member of the Church 25 of Scientology from 1974 to 1984. He currently resides in 98 Los Angeles, California. Plaintiff, Jerl-yWhitfield paid in 27 excess of $10,000.00 to the Church of Scientology based on 28 the fraudulent representations set forth in this Complaint; -7- 1 and he worked as an employee of the Church of Scientology for 2 approximately three and one-half (3«} years, based on the same - 3 fraudulent representations. 4 16 5 Plaintiff, Hand EltringhamWhitfield was a member of 6 the Church of Scientology from 1965 to 1984. She currently 7 resides in Los Angeles, California. Plaintiff, Hana Eltringham 8 Whitfield paid in excess of $5.,000.0~: to the Church of 9 Scientology based on the fraudulent representations set forth 10 in this Complaint; and she worked as an employee of the Church 11 of Scientology for approximately sixteen (16) years, based on 12 the same fraudulent representations. 13 17 14 Freedom for All in Religion (F.A.I.R.) is a California 15 non-profit organization consisting of at least 400 former and 16 current members of the Church of Scientology- F.A.I.R. is 17 devoted to insuring that all of its members be permitted to 18 follow their religious, spiritual or philosophical beliefs 19 without interference from any government 'or private individuals. 20 F.A.I.R. also seeks to assist those who have been victimized, 21 financially, physically or psychologically by the Church of 22 Scientology. Many F.A.I.R. members have been defrauded by 23 the defendants described infra. 24 PARTIES-DEFENDANT 25 18 2{~ Defendant, Norman Starkey, is the Administrator of the 27 Estate of L. Ron Hubbard, who died on January 24, 1986 at 28 San Luis Obispo, California. Starkey was appointed -8- I Administrator of Hubbard's estate on February 5, 1986 by the 2 San Luis Obispo Probate Court. Plaintiff is informed and 3 believes and based thereon alleges that defendant Starkey, as 4 Administrator of the Hubbard estates, is in wrongful possession, 5 custody and control of millions of dollars together with other', 6 assets. Starkey has his offices at 6515 Sunset Boulevard, 7 Suite 208, Los Angeles, California 90028. 8 19 9 Defendant, Authors Services, Inc., (ASI) is a California 10 for-profit corporation, which was the <er-ego of L. Ron ]] Hubbard. It has offices at 6515 Sunset Boulevard, Suite 208, ~2 Los Angeles, California 90028. Plaintiff is informed and ~3 believes and based thereon alleges that since approximately ~4 January 1982, ASI has embezzledr.~convertec, and fraudulently 15 transferred at least 30 to 100 million dollars of money and 18 assets belonging.to the plaintiff class and that it has ~7 engaged in this illegal conduct under the direction of L. Ron 18 Hubbard, David Miscavige, Pat Broeker, Anne Broeker, Lyman 19 Spurlock, Norman Starkey, Sherman Lenske, John Peterson, and 20 other defendants. 21 20 22 Plaintiff is informed and believes and based thereon 23 alleges that Church of Spiritual Technology is a California 24 non-profit corporation organized by the defendants Miscavige, ~5 Spurlock, Starkey, Pat Broeker, Anne Broeker, Lenske and 26 Paterson for the purpose of transferring, alienating, 27 embezzling, and convening assets belonging to the plaintiff 28 class to the defendants. -9- ] 21 '2 Religious Tec~.nology Center, Inc. is a California non- 3 profit organization with offices at Los Angeles, California. 4 Plaintiff is informed and believes and based thereon alleges 5 that it was organized by the same defendants named in 6 paragraph 19 for the same purposes as stated therein. 7 22 8 Church of Scientology International (CSI) is a 9 California non-profit organization with offices at Los Angeles, ]0 California. Plaintiff is informed and'believes and based ]] thereon alleges that it was organized by the same defendants ]2 named in paragraph 19 for the same purposes as stated therein ]3 and it is currently the official Hother Church of Scientology. 14 23 15 Church of Scientology of California (CSC) is a California ]6 non-profit corporation and until 1982 was the Mother Church ]7 of the Church of Scientology. Plaintiff is informed and 18 believes and based thereon alleges that in 1982, in order to ]9 fraudulently avoid the claims of creditors and litigants, CSC 20 transferred its assets to other Scientology corporation and 2~ entities for no consideration. The individual plaintiffs and 22. members of the plaintiff class paid millions of dollars to 23i the defendants and provided thousands of hours of labor based 24 on fraudulent representations made by it. 25 24 26 The Church of Scientology Advanced Organization of Los 27 Angeles (AOLA), the Church of Scientology American Saint Hill 28 Organization (ASHO), the Church of Scientology of Los Angeles -10- and the Church of Scientology of San Francisco are all California non-profit corporations. At one point' all of these 3 organizations were part of CSC. Plaintiff is informed and 4 believes and based thereon alleges that subsequently, they 5 were tuned into individual corporations and transferred, with6 out consideration, to avoid creditors' and litigants' claims. 7 Both before and after its split from CSC, members of the 8 plaintiff class gave it substantial money and provided subs- 9 tantial labor based on the fraudulent misrepresentations 10 described herein. 11 12] Church of Scientoiogy Fiag Services Org (FSO} is a 13 Florida non-profit corporation. Plaintiff is informed and 14 believes and based thereon alleges as follows: FSO solicits 15 through fraudulent representations heavily in California and 16 conducts substantial business in California~ at one point,FSO 17 was a division of CSC, subsequently, it was spun off as an IS individual corporation and its assets transferred, without 19 consideration, to avoid creditworthy litigants' claims. Both 20 before and after its split with CSC, members of the plaintiff 21 class gave it substantial money and provided substantial labor ~ to it based on the fraudulent misrepresentations described 23 herein. 24 26 ~5 Plaintiff is informed and believes and based thereon 26~ alleges as follows: David Miscavige, defendant, currently 27= controls and totally dominates all Church of Scientology monies, 281 assets and property throughout the world~ he has no "official" -11- I position in the Church and claims authority to exercise such 2 total control solely on the basis of his allegedly receiving 3 secret 'orders' from Hubbard~ Prior to Hubbard~s death these 4 "orders" were obeyed by other Church Officials and members 5 solely on the belief that Hubbard was directing Miscavige in 6 the control of Church assets; Miscavige is approximately 24 7 years old, and has been in the Church of Scientology since 8 approximately the age of 9, never having graduated from the 9 eighth grade; Miscavige assumed control of assets of the ~0 Church of Scientology as hereinafter s&t forth in June 1981; ]] Be is currently Chairman of the Board of ASI, through which 12 he controls assets of the Church of Scientology. 13 27 ]4 Anne and Pat Broeker, defendants, are husband and wife 15 and hold no official position in the Church of Scientology. 18 They were in hiding with L. Ron Hubbard until Hubbard's death ]7 on January 24, 1986. Pat Broeker communicated Hubbard's orders 18 to Miscavige. Plaintiff is informed and believes that Broeker ]9 and Miscavige together control approximately $150 million 20 dollars without authority to do so. 21 28 22 Plaintiff is informed and believes and based thereon 23 alleges the following: Sherman Lenske, defendant, was the 24 attorney for L. Ron Hubbard; He is now the attorney for David ~5 Miscavige; Norman'Starkey and the named corporate defendants; 28 He purports to represent 'the conflicting interests of the 27 Church of Scientology, and L. Ron Hubbard and he has received 28 millions Of dollars of Church funds in connection with said -12- 1 representation as authorized by Miscavige; Lenske has served 2 as an attorney for either Hubbard or the Church of Scientology 3 from approximately 1977 to the present and#as hereinafter set 4 forth, he was engaged in many unlawful acts, and acts in 5 violation of the Canons of Ethics. 6 29 7 Plaintiff is informed and believes and based thereon 8 alleges as follows: John Peterson, defendant, is an attorney 9 representing David Miscavige and the Church of Scientology; 10 Since at least 1980, Peterson as herei'nafter set forth, has ~ll engaged in many unlawful acts in violation of the Canons of 12 Ethics; He has illegally received millions of dollars of ~3 Church assets. - 15 Plaintiff is informed and believes and based thereon 16 alleges as follows: Lyman Spurlock, defendant, is a 17 subordinate of Miscavige, who is currently in charge of all 18 Church of Scientology finances and assets throughout the world, 19 Spurlock, together with Miscavige and Starkey, wrongfully 20 control Church assets through ASI. 2] 31 ~ Plaintiff is informed and believes and based thereon ~3 alleges as follows: Terri Gamboa, defendant, is a subordinate 24 of Miscavige, an officer of ASI, who receives orders and ~5' directions from Miscavige and through ASI, exercises wrongful 26 control and dominion over assets of the Church of Scientology- 27 32 2E Plaintiff is informed and believes and based thereon -13- I alleges as follows: Mary Sue Hubbard is the wife of L. Ron 2 Hubbard; She has converted millions of dollars of Church of 3 Scientology funds; She has fraudulently taken information 4 from "PC files" to be used for purposes of blackmail and 5 extortion; She has made an agreement with Norman Starkey as 6 Administrator to receive a portion of the estate of L. Ron 7 Hubbard. 8 FACTUAL BACKGROUND 9 33 J0 Plaintiff is informed and believes and based thereon ~ alleges as follows: The Church of Scientology was founded by ~2 L. Ron Hubbard in or about 1952; Between 1952 and January 1986, ~3 the Church of Scientology grew into many different corporations ~4 world wide, all of which were totally dominated and controlled ]5 by L. Ron Hubbard during said period; Hubbard exercised complete ~6 dominion over said Scientology corporations by requiring the 17 officers and directors of each corporation to sign a written 18 resignation in advance of their assuming the position, and ~9 Hubbard held said resignations, removing 'officers and directors 20 of the various corporations at will throughout the period from 21 early 1952 until January 1986; Hubbard has been held to be 22 the "alter ego" of the Church of Scientology in the case of 23 Church of Scientology v. Armstrong, Los Angeles Superior Court 24 No. C420 153. 95 34 28 Plaintiff is informed and believes and based thereon 27 alleges as follows: L. Ron Hubbard also exercised complete 28 II, -14- I dominion and control over all Scientology corporations through 2 an organization called the 'Guardian's Office", which 3 organization was headed by Hubbard's wife, Mary Sue Hubbard, 4 and which organization between 1966 and early 1981, constituted 5 the management organization totally controlling all Church of 6 Scientology funds and property; Between the later part of 7 1979 and mid-1980, the eleven highest officials of the Guardian' 8 Office, including Mary Sue Hubbard, were convicted of a 9 variety of crimes by the United States Government, which 10 resulted in the incarceration of said individuals and a vacuum 11 was..created in the~-.management'and leadership ~f the Church. 12 35 13 Plaintiff is informed and believes and based thereon 14 alleges as follows: On or about March 1980, L. Ron Hubbard 15 left the premises of the Church of Scientology in Hemet, ]6 California, and vanished; At the time Hubbard disappeared, 17 there were pending Grand Juries in New York and elsewhere 18 investigating criminal activities by L. Ron Hubbard, Mary Sue 19 Hubbard and the Guardian's Office; L. Ron Hubbard had 20 previously been convicted of criminal fraud in France; Also 21 in early 1980, various individuals commenced lawsuits against 22 L. Ron Hubbard and the Church of Scientology alleging a 23 variety of torts committed against them. 24 36 25 Plaintiff is informed and believes and based thereon 26 alleges as follows: As a result of the conviction and 27 incarceration of the eleven highest members of the Church of 28 Scientology and the disappearance of L. Ron Hubbard into -15- ~ hiding, between approximately early 1981 and until Hubbard's ' '2 death on January 26, 1986, there has been continuous conflict 3 and dispute over the management and control of monies and 4 property of the Church of Scientology; Plaintiffs allege that 5 the defendants are currently controlling bank accounts, 6 property and exercising dominion and control over various 7 assets without possess'ing the requisite corporate authority 8 to do so, in violation of the charters of the various 9 corporations, and in violation of state and federal law; 10 Defendants acquired and have maintainea control of said assets ~ by fraudulent acts and by criminal acts as hereinafter set ~2 forth. ]3 37 14 Plaintiff is informed and believes and based thereon ]5 alleges as follows: In approximately March 1980, upon the 16 disappearance of L. Ron Hubbard, the assets and property of 17 the Church of Scientology were not under the control of any ~8 Scientology corporation or its officers or directors; ~9 Although each Scientology corporation had a charter, a Board 20 Of Directors and officers, said charter, Board of Directors, 2] and officers had no actual authority or control of any nature 22 or description; In 1966, when Rubbard resigned his position 23 as/Executive Director International" of all Churches of 24 Scientology throughout the world, which was the highest =5 executive management post, he simultaneously created the 28 "Guardian's Office". and designated his wife, Mary Sue Hubbard, 27 as "controller" of all Scientology organizations throughout 28 the world and over the Guardian's Office; Between 1966 and -16- 3 early 1981, L. Ron Hubbard, Mary Sue Hubbard, and the Guardian's 2 Office exercised total control over all Church assets, bank 3 accounts, property, and trademarks. 4 38 5 Plaintiff is informed and believes and based thereon 6 alleges as follows: Beginning in 1980, and continuing to the 7 present, after the indictment and conviction of Mary Sue 8 Hubbard and other high-level Scientology officials, David ú 9 Miscavige, Pat Broeker, Anne Broeker, Norman Starkey, Sherman l0 Lenske, John Peterson and Lyman Spurlock gradually began to 31 assume complete dominion and control over all Scientology 32 assets and property throughout the world, although they ~3 received no corporate authority to do so; In early 1981, ~4 Hubbard, even though he held no official position in any ~5 Scientology corporation, allegedly authorized Miscavige to take 36 control of Church assets; At the same time, Hubbard appointed ~7 William Franks as 'Executive Director International" and 38 ordered Franks to become a signatory on those bank accounts ~9 in Luxembourg containing approximately $150 million dollars; 20 Although Franks held the highest official management position 21 in the Church of Scientology, he received his daily orders 22 from Miscavige upon the representation that Hubbard was issuing 23 daily dispatches contained orders which must be followed in 24 the distribution of assets of the Church of Scientology; 25 Franks himself was required to sign an undated letter of 26 resignation as 'Executive Director International". 27 39 28 Plaintiff is informed and believes and based thereon -17- 1 alleges as follows: Between June 1981 and December 1981, 2 conflict developed between Hiscavig& and Franks over control 3 of Church bank accounts; In November 1981, Miscavige had 4 Franks physically locked up in a room for several weeks while 5 Miscavige assumed control of all corporate bank accounts, and 6 other assets~ Throughout this period, Miscavige was 71 represented by attorneys Sherman Lenske and John Peterson, and 8 Miscavige paid them millions of dollars in attorneys' fees in 9 connection with their assistance in achieving this unauthorized 10 and illegal takeover. 11 40 12 Plaintiff is informed and believes and based thereon 13 alleges as follows: In early 1982, Lenske r on behalf of ]4 Miscavige, Spurlock, Starkey, and several others, incorporated ~5 ASI which became the corporate entity controlling Church of ]6 Scientology bank accounts and assets; In fact, the officers ~7 and directors of ASI, which included Miscavige, Starkey, and ~8 Spurlock, possessed no authority from any Church of Scientology 19 corporation to control its bank accounts and property. 20 41 2l Plaintiff is informed and believes and based thereon ~ alleges as follows: At the same time as the incorporation of 23 ASI, Lenske on behalf of Miscavige, incorporated Religious 24 Technology Center (RTC) and Church of Spiritual Technology (CST); Between January 1982 and June 1982, Lenske represented 26 ASI, RTC, CST, L. Ron Hubbard, and various Scientology 27 corporations in the fraudulent transfer of monies, property 28 and assets from various Scientology corporations to L. Ron -18- ~ Hubbard; Lenske also prepared a will and an'-inter vivos trust 2 on behalf of Hubbard, which was witnessed by Pat Broeker and 3 Anne Broeker~ RTC became the trustee of said Trust~ The 4 assets of various Scientology corporations, which were taken 5 over by ASI in 1982, included bank accounts, personal property, 6 real property and current income of the various corporations; 7 The Charters of these corporations were violated in the take- 8 over by ASIS The Charters of each corporation provided that 9 the corporate affairs were to be regulated and managed by the 10 Boards of Directors and said corpOratiOns, when, in fact, the ~ various Boards of Directors of each Scientology corporation 12 were illegally controlled by ASI, Miscavige, Broeker and ~3 Hubbard. ~4 42 ~5 Plaintiff is informed and believes and based thereon ~6 alleges as follows: On or about October 17, 1982, after ~7 establishing ASI, CST and RTC, and obtaining control over all lS corporate bank accounts throughout the world, Miscavige held 19 a meeting of approximately 400 franchise holders operating 20 Scientology. corporations in San Francisco, California~ At 21 said meeting, M~scavige informed the various franchise holders, ~2 of the fact that he and the RTC had taken over all Scientology 23 organizations~ Miscavige stated as follows: 24 'All the Scientology/Dianetics trademarks ~5 were previously owned by L. Ron Hubbard. L. Ron Hubbard has donated the vast majority of those to a corporation which 28 some of you have probably never heard of, -19- 1 by. the name of Religious Technology 2 Center". 3 Miscavige further stated that every franchise holder 4 would be required to sign a new agreement with RTC and that 5 if they did not do so, they would be "fined or thrown into 6 Jail". Individuals who objected to the RTC and ASI take-over 7 of the assets were literally locked into rooms and interrogated 8 with a crude lie detector and either forced to sign the new 9 agreements or removed from their positions. 10 43 ' 11 Plaintiff is informed and believes and based thereon 12 alleges as follows: Between March 1982 and November 1982, I,~ Hubbard, Broeker, Miscavige, Spurlock, and others through ASI, 14 illegally transferred over 30 million dollars of funds 15 belonging to the Church of Scientology to bank accounts of ASI 16 and Hubbard in Lidchtenstein and Luxembourg~ These funds were 17 transferred based on overtly false or exaggerated billings by 18 ASI to the Church of Scientology; The defendants named in 19 this Complaint are currently under investigation for conspiring 20 to defraud the United States Government in connection with the 2] allegations in this paragraph. 22 44 23 Plaintiff is informed and believes and based thereon 24 alleges as follows: Between November 1982 and the present, 25 the Church of Scientology has paid millions of dollars in ú 26 attorneys' fees to Sherman Lenske and John Peterson without 27 the requisite authority of the officers and directors of the 28 Church of Scientology corporationst These attorneys' fees -20- 1 have been used as a money-laundering scheme to pay private 2 investigators and other costs in connection with a scheme to 3 harass and destroy all opposition to the defendants as set 4 forth belo~ These acts are also currently the target of a 5 Department of Justice Grand Jury investigation. 6 45 7 Plaintiff is informed and believes and based thereon 8 alleges as follows: Between January 1982 and the present, 9 Miscavige and ASI have illegally expended the following sums 10 for unlawful purposes: II a. In April 1982, Miscavige ordered the payment 12 of $250/000.00 to "set up" and frame United ~3 States District Judge Ben Krentzman in a ~4 scheme to compromise him with drugs and ~5 prostitutes' ]8 b. In April-June 1982, Miscavige and ASI ordered 17 the payment of thousands of dollars to ~8 Attorney Dan Warren in Daytona, Florida to ~9 "pay off" State Circuit Judge james Durden 20 who was then sitting as Justice on a 2] Scientology case. 22' c. In March 1983, Miscavige, Lenske, Paterson 23 and ASI ordered the payment of in excess 24 of one million dollars to "set up' and 25 frame Attorney Michael Flynn of Boston, 26 Massachusetts, in an alleged attempt to 27 forge a two.-million dollar check of 28 Ron Hubbard. To date, millions of dollars have been paid to John Peterson and Eugene Ingram,'a private investigator, to perpetrate the above 'described illegal scheme. 46 Plaintiff is informed and believes and based thereon alleges as follows~ Between 1972 and 1982, defendants conspired together to defraud the Church of Scientolog~ of in excess of 100 million dollars~ This conspiracy was accomplished by the following overt acts.. a. L. Ron Hubbard and Mary Sue Hubbard created a Liberian Corporation called Religious Research Foundation (RRF) with numbered bank accounts in Liechtenstein. These bank accounts and RRF were dominated and controlled by L. Ron ~ubbard~ b. Between 1972 and 1982 in excess of 100 million dollars belonging to the Church of Scientology was illegally and secretly diverted into the RRF bank accounts by L. Ron Rubbard for his personal use and under his control~ c. RRF provided no goods or services and had no legitimate corporate existence other than being a depository of funds illegally obtained and fraudulently'controlled by Hubbard~ d. Between 1980 and 1984 false and fraudulent back-dated invoices were created to transfer RRF funds directly into L. Ron Hubbard's I ba~k. accounts, Plaintiffs do not know the '2 amount of money diverted totally to Hubbard's 3 bank accounts but believe it to be in. excess 4 of 30 million dollars; 5 e. The aforesaid funds illegally diverted are 6 now in the estate of L. Ron Hubbard in the 7 possession, custody and control of Norman 8 S tarkey. 9 FIRST CAUSE OF ACTION 10 COUNT z - ]] FRAUD (MISREPRESENTATION OF TAX EXEMPT STATUS AND CHARITABLE ] 2 NATURE ) 13 47 14 Throughout the period that the individual plaintiffs 15 and plaintiff class members were members of the Church of [ Scientology, defendants and their agents and employees 17 continuously ~,ade and provided the plaintiffs with written 18 representations that the Church of Scientology was a tax- 19 exempt, non-profit charitable organization. 20 48 21 This representation was false because: 22 a. The defendants had made a business-'out"of 23 selling religion I 24 b. A substantial part of the income inured to the 25 benefit of L. Ron Hubbard an~ his family. For 26 example, from at least 1980 until January 1986, 27 the individual defendants conspired to divert 28 ten of millions of dollars from the Church of -23- 1 Scientology to L. Ron Hubbard. (These 2 transactions are the subject of a 3 grand jury"investiga~ion in Los Angeles). 4 c. The defendant violated public policy by 5 conspiring to defraud the United States 6 government and by using their tax-exempt 7 income to finance overtly criminal acts 8 described above. 9 d. In 1967, for failing to comply with the 10 rules and regulations of the Internal 1] Revenue Service tax-exempt corporations, ]2 the IRS removed the Church of Scientology 13 of California, the mother Church, from the 14i roster of tax-exempt organizations. The 15 decision to strip the Church of Scientology 16 Of California of its tax-exemption was 17 upheld by the U.S. Tax Court in 1984. 18 49 19 Defendants, their agents and employees, made the 20 representations described above with'.the intent that the 21 plaintiffs act and rely upon the representations made. The 22 defendants knew or should have known the representations were 23 false. 24 So 25 Plaintiffs relied upon the representations described 28 above and said representations were material influences in 27 inducing plaintiffs 'to pay money to the defendants and 28 provide numerous hours of labor for the defendants for little -24- 1 or no compensation. If plaintiffs had known that the Church 2 of Scientology was not a tax-exempt organization, that the 3 money they gave to Scientology was being directed to L. Ron 4 Hubbard, or that the defendants were involved in overt criminal 5 acts, they would not have paid said money or provided said 6 labor. 7 COUNT II 8 FRAUD (RECEIPT OF MONEY BY HUBBARD) 9 51 10 Throughout the period that the individual plaintiffs and 1] plaintiff class members were members of the Church of 12 Scientology, defendants, their agents and employees continuously 13 made written representations that L. Ron Hubbard did not 14 receive any of the money plaintiffs paid to the Church of 15 Scientology, that L. Ron Hubbard was never paid for his 16 Scientology research, that L. Ron Hubbard forgave a 13« 17 million dollar debt the Churches of Scientology. owed him, that 18 L. Ron Hubbard never received any royalties from the Church of 19 Scientology, that he donated his royalties for a best-seller 20 to the Church of Scientology and never received any royalties 21 from it, and that he drew less pay from the Church of 22 Scientology that an org-staff member (about $30.00 a week). ~3 These representations were included in publications entitled 94 "What Your Fees Buy" and other publications and were m~de 25 available to all members of the plaintiff class. 26 52 27 Contrary to the written representations described above, 28 L.Ron Hubbard received millions of dollars which had been -25- 1 improperly diverted from the Church of Scientology, never 2 forgave any debts allegedly owed to him by the Churches of 3 Scientology, billed and received from the Church of Scientology 4 millions of dollars for alleged research, received millions of 5 dollars of the Church of Scientology for royalties on his 6 bOok and trademark, and at times made as much as a million 7 dollars a week from the Churches of Scientology. In fact, 8 L. Ron Hubbard received tens of millions of dollars of Church 9 of Scientology funds, including the diversion of funds to and 10 from Religious Research Foundation, ana the payments of millions 1] of dollars from Church of Scientology bank accounts to L. Ron 12 Hubbard bank accounts. 13 COUNT 14 FRAUD (MISREPRESENTATION OF CONFIDENTIALITY OF AUDITING FTLES) 15 53 ]6 Between 1952 and the present, defendants, their agents 17 and employees made written r~presentations to each member of 18 the plaintiff class and each individual plaintiff that all 19 information conveyed by a member of Scientology to the Church 20 of Scientology during a Scientology process known as auditing 2] was to be strictly confidential and was never to be revealed 22 to anyone except the member's suditor or case supervisor. 23 Under no circumstances, all plaintiffs were informed in 24 writing would information disclosed in auditing ever be used 25 against the person providing the information. The information 28 obtained was taken down in files or folders (hereinafter 27 referred to as suditing or "PC" files) called ."preclear", 28 "processing", "auditing","confessional", or "ethics" files. -26- 1 54 2 From at least 1969 until the present, defendants have 3 had a secret written policy to extract the confidential 4 information from 'PC' files and use it for purposes of black- 5 mail and extortion, in violation of the above representations. 6 55 7 This policy was written by defendant Mary Sue ~ubbard 8 and has been extensively implemented by defendants. 9 COUNT IV 10 FRAUD (MISREPRESENTATIONS OF HUBBARD'S'BACKGROUND, ACHIEVEHENTS ~1 AND CHARACTER) 12 S6 13 Throughout the period that the individual and class 14 plaintiffs herein were members of the Church of Scientology 15 numerous written representations about L. Ron Hubbard were 16 made to the plaintiffs. These written representations were 17 included i~ numerous books and publications written by or 18 concerning L. Ron ffubbard which defendants required plaintiffs 19 to read: These representations included: 20 a. L. Ron Hubbard was a nuclear physicist who 21 had conducted over thirty years of scientific 22 research into the nature and causes of disease, 23 the nature of the mind, and the nature of 24 human organizations. 25 b. '~ubbard had served for four years in combat 26 in the United States Navy during World War 27 II, that he was one of the most highly 28 decorated officers during the war, that he -27- ] was severely wounded in combat, that he was 2 twice pronounced medically dead and that he 3 cured himself with Dianetics. 4 c. Hubbard had travelled for years in the Far 5 East and Asia, studying with great Eastern 6 religious leaders and that he was able, in 7 part, to formulate Scientology because' of 8 his knowledge of the East. 9 d. L. Ron Hubbard's health was perfect as a 10 result of personal applications of the ]l principles'of Dianetics and Scientology. 12 e. L. Ron Hubbard was a person of unquestionable 13 integrity, motivated solely by benevolent ]4 purposes, with no interest in exploiting 15 Scientology to make money for himself. 16 57 ]7~ The above representations are'false. In fact, plaintiff 18 is informed and believes and based thereon alleges as follows: ]9 a. Hubbard received a failing grade in the only 20 physics course that he took at George 2] Washington University and was dismissed 22 for poor academic performance after 23 attending for one and one-half semesters~ 24 b. The only degree Hubbard ever received was 25 from a mail-order college which he created 26 or owned in the early. 1950's~ 27 c. Hubbard did not serve in combat during 28 World War II and was relieved of duty on -28- 1 at least three occasions while serving 2 in the United States Navy; 3 d. During the end of his military service, 4 Hubbard was a psychiatric in-patient at 5 Oak Knoll Military Hospital; 6 e. Hubbard was never pronounced dead and 7 never received any war wounds; 8 f. Hubbard has, from at least 1945 to the 9 January 1986, suffered from chronic ~0 duodenal ulcers, arthritis, bursiris, ~ skeletal weakness, diabetes, pulmonary ~2 embolisms and a host of other diseases ~3 and ailments; ~4 g. Hubbard married his second wife, Sara ~5 Northrop, while still married to his ~6 first wife, Margaret Louise Grubb; ~7 Hubbard practiced ritual abortions on ~8 both his first and. second wives and ~9 attempted to murder his second 'wife; 20 h. Hubbard was arrested and convicted of 2~ petty theft in 1947; 22 i. Those Dianetics and Scientology corporations 23 formed by Hubbard were not formed for 24 benevolent purposes but were conceived for 9.5 the stated' intention ~o solely make money 28 through deceit and misrepresentation~ 27 J. Hubbard knew and stated that Dianetics and 28 Scientology were formed as a religious front -29- 1 to enable Hubbard to~klke huge sums of 2 money. 4 The defendants knew or should have known the 5 representations in COUNTS II, III, and IV were false, but 6 permitted them to be made to the plaintiffs. Defendants, 7 their agents and employees, made said representations with the 8 intent that the plaintiffs act and rely upon the representations 9 made. 10 59 11 Plaintiffs relied upon the representations described 12 above and said representations were material influences in 13 inducing plaintiffs to pay more money to the defendants and 14 provide numerous hours of labor for the defendants for little 15 or no compensation. Had plaintiffs known the truth, plaintiffs 16 would have never given money or donated labor to the defendants. 17 Further, the defendants acted with malice toward plaintiffs, 18 with the intent to oppress plaintiffs and with conscious 19 disregard for plaintiffs rights and hence plaintiffs are 20 entitled to punitive damages. 21 6o 22 In relying upon defendants' fraudulent misrepresentations, 23 plaintiff Franklin F~eedman waS' damaged ih' the amoUnt'of moneys 24 paid, and for labor provided, all of which will be ascertained 25 according to proof. 26 .61 9-7 In relying upon defendants fraudulent misrepresentations, 28 plaintiff Mary Marsh was damaged in the amount of moneys paid, -30- I and for labor provided, all o6 which will be ascertained 2 according to proof. 3 62 4 In relying upon defendants'fraudulent misrepresentations, 5 plaintiff Ranfr~d'Sta~s~ield wasldamag~d ~'n.th'~"am~un~ or moneys 6 paid, and for labor provided, all of which will be ascertained 7 according to proof. 8 63 9 In relying upon defendants' fraudulent misrepresentations, ~0 plaintiff Valerie Stansfield was damaged in the amount of ~1 moneys paid, and for labor provided, all of which will be 12 ascertained according to proof. 13 ~4 In relying upon defendants'fraudulent misrepresentations, ~5 plaintiff Hana Eltringham Whitfield was damaged in the 16 amount of moneys paid, and for labor provided, all of which 17 will be ascertained according to proof. 18 e5 19 In relying upon defendants'fraudulent misrepresentations, 20 plaintiff Jerry Whirfield was damaged in the amount of moneys 21 paid, and for labor provided, all of which will be ascertained 22 according to proof. 24 In relying upon defendants' fraudulent representations, 25 plaintiff class members and FAIR members gave defendants 26 millions of dollars and provided thousands of hours of labor, 27 and were damaged in an undetermined amount at this time. 28 /// -31- 1 SECOND CAUSE OF ACTION 2 BREACH OF FIDUCIARY DUTY 3 67 4 'Plaintiffs restate and reallegs all of the allegations 5 contained in Paragraphs 1-66 and incorporate them by reference 6 herein. 7 68 8 When soliciting all of the individual plaintiffs and all 9 members of the plaintiff class to join Scientology, defendants, 10 their agents and employees invited an~ expected plaintiffs to ill place their trust in the defendants and to come to them with 12 their most personal and intimate concerns. Plaintiffs did 1~ indeed place their confidence in the integrity of the defendants 14 and defendants voluntarily accepted such confidence. By 15 encouraging plaintiffs to repose their trust and confidence i16 in their integrity, and by voluntarily accepting such trust 37 and confidence, defendants assumed a fiduciary duty to the 18 plaintiffs. 19 69 20 Plaintiff is informed and believes and based thereon 2] alleges as follows: Defendants breached their fiduciary duties 99 to the plaintiffs by: 23 a. permitting a non-officer of the Scientology Churches, 2~ L. Ron Hubbard, to control and dominate the Church 25 of Scientology~ 28 b. failing to disclose to plaintiffs that a non- 27 officer of the Scientology Churches controlled 28 and dominated the Church of Scientology~ e -32- ~ c. permitting money paid by the plaintiffs 2 and income earned through the plaintiffs~ 3 labor to be used to finance overtly 4 criminal operations such as those 5 identified in paragraphs 32 through 46 6 of this Complaint. 7 d. failing to disclose to plaintiffs that 8 money plaintiffs paid and income earned 9 through plaintiffs~ labor was used to ~0 finance overtly crimina-1 operations such ~ as those described in paragraphs 32 ~2 through 46 of this Complaint. ~3 e. permitting defendants Anne Broeker, Pat ~4 Broeker, David Miscavige, Norman Starkey, ~5 Sherman Lenske, John Peterson and Lyman ~6 Spurlock to assume dominion and control, ~7 under L. Ron Hubbard's direction of the ~8 Churches of Scientology's assets and ~9 property without having corporate 20 authority to do so~ 2] f. permitting the transfer of millions of 22 dollars of Scientology assets to L. Ron 23 Hubbard through defendant ASI without 24 corporate authority; 25 g. failing to disclose the transfer of 26 millions of dollars of Scientology assets 27 to L. Ron Hubbard through defendant ASI; 28 h. permitting the misrepresentations -33- 1 identified in paragraphs 47, 51, 53 and '2 56 of this Complaint to be made to the 3 plaintiffs and the general public~ 4 i. failing to disclose to plaintiffs the 5 truth about the misrepresentations identified 6 in paragraphs 47, 51, 53 and 56 of this 7 Complaint. 8 70 9 Defendants had a fiduciary duty'to'.discl~se~the'facts 20 alleged above and had they done so plaintiffs would not have 1] given millions of dollars to the Churches of Scientology or ]2 provided the thousands of hours of labor to the Churches of ~3 Scientology. Due to defendants' breaches of fiduciary duty, 24 pl. aintiffs' money and labor never was used for the purposes ]5 plaintiffs" intended. The defendants' actions toward plaintiff 16 were done with malice, with the intent to oppress plaintiff 27 and with.conscious and reckless disregard for plaintiffs 18 rights hence plaintiffs are entitled to punitive damages. 20 In relying upon defendants' fraudulent misrepresentations 2] plaintiff Franklin F~eedman was damaged' ih'the amoUnt'of moneys 22 paid, and for labor provided, all of which will be ascertained 23 according to proof. 2~ 72 25 In relying upon defendants fraudulent misrepresentations, 28 plaintiff Mary .Marsh was damaged in the amount of moneys paid, 27 and for labor provided, all of which will be ascertained 28 according to proof. -34- 1 73 2 In relying upon defendants fraudulent misrepresentations, 3 plaintiff Manfred St~sfield 'was damaged ~h the ~moun~ of moneys 4 paid, and for labor provided, all of which will be ascertained 5 according to proof. 6 74 7 In relying upon defendants fraudulent misrepresentations, 8 plaintiff Valetie Stansfield was damaged in the amount of 9 moneys paid, and for labor provided, all of which will be 10 ascertained according to proof. - 11 75 12 In relyinq upon defendants fraudulent misrepresentations, 13 plaintiff Hana Eltringham Whirfield was damaged in the amount ~4 of moneys paid, and for labor provided. All of which will be 15 ascertained according to proof. 16 76 17 In relying upon defendants fraudulent misrepresentations, 18 plaintiff Jerry Whitfield was damaged in the amount of moneys ~9 paid, and for labor provided, all of which will be ascertained 20 according to proof. 21 77 22 In relying upon defendants' fraudulent misrepresentations 23 plaintiff class members and FAIR members gave defendants 24 millions of dollars and provided thousands of hours of labor, 25 and were damaged in an undetermined amount at this ~ime. 26 II 27 // 28 // ~ THIRD CAUSE OF ACTION 2 INJUNCTIVE RELIEF AND CONSTRUCTIVE TRUST 4 Plaintiffs restate and reallegs all allegations 5 contained in paragraphs 1- 77 and incorporate them herein by 6 reference. 7 79 8il Defendant Churches of Scientology possess auditing 9 files for each of the individual plaintiffs and virtually all 10 of the members of the plaintiff class; These files contain 3~ intimate, secret information of the most personal..nature 32 which was given to the defendants under the fraudulent promise 33 that such information would be kept in the strictest confidence. 14 35 As described above, defendants have a secret written ~6 policy that notwithstanding any representations of 17 confidentiality, the defendants can and will use the 38 information contained in auditing files for extortion and 39 harassment purposes, particularly if an individual is 90 considered or suspected of being an enemy of Scientology. By 91 filing suit against the Church of Scientology, pursuant to 22 written Scientology policies, the plaintiffs are considered 23 enemies of Scientology and subject to Scientology's auditing 24 disclosure policy. 25 28 Disclosure of.plaintiff's auditing materials without 27 their consent will constitute an invasion of plaintiff's 28 right to privacy. -36- 1 82 2 Because money damages cannot adequately approximate 3 the damages plaintiff will suffer due to disclosure of~ 4 auditing files and because of the number of individuals 5 involved, suits for money damages would not be Judicially 6 feasible, plaintiffs will be irreparably harmed if such 7 disclosures occur. Plaintiffs require a court order to 8 enjoin defendants from examining plaintiffs' auditing files 9 and removing said files from defendants' custody in order to 10 protect plaintiffs' constitutional rights to privacy. 12 As set forth in above, defendants obtained the 13 information contained in the auditing file through fraud and 14 deceit. Had plaintiffs known the information disclosed in 15 auditing would not remain strictly confidential, such 16 information would have never been given to the defendants. 17 Defendants, moreover, have improperly used the material 18 entrusted to them, by using it against members who they ]9 perceive to be threats. 20 84 21 Defendants have no legitimate need for the plaintiffs' 22 auditing files because plaintiffs are no longer members of 23 the Church of Scientology. 25 In order to correct the fraud perpetrated by the R{] defendants in obtaining the confidential information they 9-7 would not have otherwise obtained, and to prevent further R8 wrongful exploitation of the confidential information to the -37- 1 detriment of these plaintiffs. Plaintiffs seek inJunctive 2 relief requiring the defendants to hold the information 3 contained in the plaintiffs' auditing files in constructive 4 trust for the plaintiffs, and order the defendant to return 5 the auditing files and all other confidential information 6 held by them to the plaintiffs. Plaintiff further seeks an 7 order restraining defendants, their agents and employees 8 frce reproducing or disseminating the information contained 9 in the files. 10 WHEREFORE, plaintiffs pray and each of them pray for 1~ judgment as follows: 12 1. That plaintiff Franklin Freedman be awarded damages ~3 according to proof for money given and labor provided to the 14 defendant. 15 2. That plaintiff Mary Marsh be awarded damages ~6~ according to proof for money given and labor provided to the ~7~ defendant. 1S 3. That plaintiff Manfred Stansfield be awarded damages ~9 according to proof for money given and labor provided to the 20 defendant. 2] 4. That plaintiff Valerie Stansfield be awarded 22 damages according to proof for money given and labor provided 23 to the defendant. 24 5. That plaintiff Hand Eltringham Whitfield be awarded 25 damages according to proof for money given and labor provided 26 to the defendant. 27 6. That plaintiff Jerry Whitfield be awarded damages 28 according to proof for money given and labor provided to the -38- ~ defendant. 2 7. That a Judicial determination be made of all 3 damages suffered by plaintiff class for moneys paid to the 4 defendants and labor provided to the defendants, and that a 5 fund be established for payment of said damages together'-with 6 interest and costs. 7 8. That after a hearing enter a preliminary injunction 8 enJoining defendants from disclosing to anyone within .or 9 without Scientology any of the contents of plaintiffts l0 auditing files or other confidential information and order l~ that all such files and information wherever such may be, be ~2 removed from defendants' custody, and control and returned ~3 to plaintiffs. Further, that the defendants and their agents ~4 and employees be restrained from reproducing or disseminating ~5 in any way the information contained in the files. 18 9. After a trial, enter a permanent injunction ~7 enJoining defendants from discl.osing to anyone within or ~8 without Scientology any of the contents of plaintiffts ~9 auditing files or other confidential information and order 20 that all such files and information, wherever such may be 2~ located'~ shall be removed from defendants' custody and 22 control and returned to plaintiffs. Further, that the defendants and their agents and employees be restrained from 24 reproducing and disseminating in any way the information 25 contained in the files. 26' 10. After a trial, make a Judicial determination that 27 plaintiffs~ auditing files and all other confidential 281 information concerning plaintiffs which is within the custody -39- ~ and control of defendants be held in constructive trust for 2 plaintiffs and all such materials be returned to the plaintiffs. 3 ll. 4 a. Award punitive damages to the plaintiffs in 5 the amount of $1,000,000,000.00 (One Billion Dollars) 6 b. Attorney fees; 7 c. Costs of suit; 8 d. Such other and further relief as this Court 9 deems just. l0 14 ~5 I8 DATED: ~" 19 20 ~wkENcE L~v~ Att7ney for Plainrifle' 21 ., .,. . 24 / orney for Plaintiffs -40- ================================================================= If this is a copyrighted work, you are acknowledging by receipt of this document from FACTNet that on the basis of reasonable investigation, you have not been to obtain a copy elsewhere at a fair price, and that you are and will abide by the following copyright warning. WARNING CONCERNING COPYRIGHT RESTRICTIONS: The copyright law of the United States (Title 17, United States Code) governs the making of photo copies or other reproductions of copyrighted material. Under certain conditions specified by law, libraries and archives are authorized to furnish a photocopy or other reproduction. One of these specified conditions is that the photocopy or reproduction is not to be "used for any purpose other than private study, scholarship, or research." 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