Scientology Critical Information Directory

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Fraud

«The real stable datum in handling tax people is NEVER VOLUNTEER ANY INFORMATION [...] The thing to do is to assign a significance to the figures before the government can [...] I normally think of a better significance than the government can. I always put enough errors on a return to satisfy their bloodsucking appetite and STILL come out zero. The game of accounting is just a game of assigning significance to figures. The man with the most imagination wins.» — L. Ron Hubbard, Organization Executive Course, Vol. 3, p. 63

Chris Owen (1998): "The Corruption of Scientology"

One of the most controversial aspects of that controversial organisation, the Church of Scientology, is its financial dealings. The Church's corporate structure is fiendishly complicated, involving scores of entities in dozens of countries, which are supposedly "each totally and legally independent from one another, connected only by ecclesiastical bonds" 1 . The complexity of the structure failed to deter the US Internal Revenue Service from investigating Scientology's financial dealings following the Church's exemption from taxes in 1957. The exemption was revoked in 1967, leading to a 26-year legal battle which was resolved in somewhat peculiar circumstances in 1993, with exemption restored to Scientology and its associated entities. What had the IRS discovered and why did they mount against Scientology what insiders claim to have been the biggest investigation in its history? The answer was simple: Scientology had operated corruptly and fraudulently for years under the cover of a respectable tax-exempt religious institution. 2

The story of Scientology's corruption by its leaders is an extraordinary and unedifying one, but the story really begins many years before Scientology's foundation in 1952. It begins, as does all else in Scientology, with that extraordinary and perplexing man, L. Ron Hubbard. [...]

Caroline Letkeman: "Fraudulent Claims"

Hubbard was really a very skilled hypnotist, stage magician, malingerer, and confidence trickster whose organization known as the Church of Scientology used his directives to lure people in and feed his lust for money and power. Hubbard is dead and now the Ecclesiopath is David Miscavige. The operation is called Keeping Scientology Working.

Scientology lures people in with many lies, including fraudulent claims about Hubbard, listed below. [...]

Clearwater Sun (1982): "Witnesses Tell of Break-ins, Conspiracy" by Steven Girardi

In his last mission with the church, he said, he and his wife smuggled $200,000 in Krugerrands into the country from South America.

Mayer said he went into hiding for three years after leaving the sect, until he was found by the the Internal Revenue Service. The IRS used Mayer as a witness and consultant in the 1978 U.S. Tax Court trial concerning sect financial practices between 1968 and 1971, he said.

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