Graham E. Berry

GRAHAM E. BERRY

ATTORNEY & COUNSELOR AT LAW

3384 McLAUGHLIN AVENUE

LOS ANGELES, CA 90066

Telephone and Facsimile: (310) 745-3771

Email: grahamberry@ca.rr.com

 

January 5, 2009

 

 

By Fax, Email and Hand Delivery.   

 

The Chairman and Board of Supervisors

Riverside County Board of Supervisors

County Administrative Center

4080 Lemon Street-Fifth Floor

Riverside, CA 92501

 

Re:  Proposed Ordinances 884 and 888: Targeted Residential Picketing

Board meeting January 6, 2009, Agenda Items 3.28 and 3.29 (Supervisor Stone)

 

Honorable Chairman and Gentlemen:

 

            The real purpose of the two proposed ordinances is to prevent staff employed by the Church of Scientology Sea Organization from seeing or hearing the messages of persons engaged in peaceful First Amendment protected activity outside the Church of Scientology International Headquarters and Golden Era Productions facilities at 19625 Highway 79, Gilman Hot Springs, CA 92583. Scientology senior management call the property “Gold Base” and I shall too. In that regard, I urge you do an Internet Google search of “Gold Base.” The Church’s only need for urgency is an anticipated public picket of Gold Base on January 24, 2009, and the orders of Scientology’s totalitarian, self- appointed leader, David Miscavige, that the picket be stopped irrespective of what that costs.

 

For over a decade, a steady stream of public pickets along the side of Highway 79 outside Gold Base have contributed to many Church of Scientology staff members finding a way out of what many ex-members describe as a forced labor and detention camp where some staff members have been confined for many years on what Scientology calls the “Rehabilitation Project Force” or the RPF, and the even more draconian RPF’s RPF. For example, it has been reported that over the past decade the number of Gold Base staff has declined from about 1,200 to about 400.  Consequently, for nearly a decade Scientology’s leader has tried to deter these public protests with contrived arrests, contrived criminal charges and perjured civil claims. The flavor of some of this sordid history can be read through a Google search of the terms: Hemet Henson corruption. Indeed, an appeal of the travesty of justice in one of the Henson cases is now pending before the Fourth California District Court of Appeals. A more recent case involving Scientology entrapment, police complicity, hog tying by Scientology security goons, assault, battery, false arrest and false imprisonment is now commencing its journey through the Riverside criminal and civil courts.

 

Gold Base is not an ecclesiastical or fraternal dormitory as Scientology has argued elsewhere. It is a management, manufacturing and penal facility. There is also some related accommodation called “berthing.” Gold Base includes the offices and residences of Scientology’s senior international management staff, the RPF and RPF’s RPF which many former Gold Base staffers have compared to Soviet Gulags and Nazi concentration camps (where, ironically, work would also set the inmates free). It is credibly claimed by former Gold Base staffers that the compound includes “the hall” or “the hole” where about forty senior scientology executives, receiving punishment and/or security treatment are confined almost 24/7 and required to work punishing hours followed by a few hours sleep on the floor under their desks. Others have described being imprisoned in pig pens (labeled “pig berthing”) and some former leaders have had to run around a pole in the hot desert sun for 12 hours a day month after month. There have been suspicious deaths and there has been sworn testimony and other reports of female scientology staffers being ordered or forced to have abortions which the Planned Parenthood organization ultimately pays for. Names, contact information, witnesses and supporting documents (including affidavits and transcripts) can be provided.

 

Gold Base also includes the very profitable manufacturing E-Meters (a form of lie detector), film production and the publishing facility for Scientology media as well as the Golden Era film studios which are also understood to be rented to non-Scientology entities from time to time. The Scientology E-Meters, which cost less than fifty dollars to manufacture, are sold to Scientologists at prices that range from a few thousand dollars to nearly thirty thousand dollars.

 

Gold Base is, in reality, a slave labor camp as illustrated by the separately submitted copy of a new complaint initiating a California Labor Code claim against Gold Base. Scientology staffers at Gold Base sign billion year employment contracts and work 100 hour plus weeks for about 39 cents per hour. In addition, as you can read in the enclosed news article called “Selling Scientology,” many of these so-called life-long volunteers at Gold Base have been physically assaulted by Captain David Miscavige, the leader of the para-military church and “best friend” of Scientologist Tom Cruise who himself lobbies political and governmental officials on behalf of the Scientology enterprise. As you will also read among the enclosures with this letter, Gold Base includes fortified facilities complete with an armed sniper overlooking the City of Hemet.

 

The existence of residential “berthing,” as the para-military Scientology calls its accommodation, should not render Gold Base a “residential neighborhood” for first amendment purposes but not for manufacturing, production and zoning purposes. Does employee accommodation on off shore oil rigs or at certain work sites render those locations “residential neighborhoods?” It was recently reported that about 10% (or 42) United States congressmen sleep on cots in their congressional offices. Does that mean the U.S. Capitol can now be deemed a “residential neighborhood” for the purpose of First Amendment restrictions? Why should Riverside County Board of Supervisors permit the Church of Scientology to make a similarly spurious argument with regard to Gold Base? Are the Riverside County Supervisors to be intimidated by a small but wealthy cult with less than 50,000 active members world wide and written scriptures on how to lie, engage in the unlawful practice of medicine, and terrorize opponents into “utter destruction?”

 

What happens to all the money from the sale of these E-meters, books, videos, courses, auditing (counseling) hours, etc. that are produced or processed through the Church of Scientology’s Gold Base? This is how it has been recently explained including approximate amounts, percentages, etc., herein for illustrative purposes only. The Church of Scientology uses a complex communication and financial system it calls the “Incomm” system. In 1999, there was a reporting change in the Incomm system and then again in 2007 there was another change in connection with reporting book sale revenue. However, it has been explained that the 166 plus tax exempt religious non-profit corporations and for profit corporations known collectively as the Church of Scientology now use secret Merrill Lynch numbered off-shore bank accounts for these monies. Approximately 50-75% of the money “earned” is deposited into numbered Merrill Lynch accounts in Los Angeles and then transferred offshore to Antigua. Apparently, there are about forty numbered “Pool Accounts” in secret numbered Scientology accounts with Merrill Lynch in Antigua. After its deposit into these accounts, the money is then apparently transferred elsewhere offshore. Almost all of the Scientology money goes through the numbered Merrill Lynch accounts so that there is no ordinary way to trace it. Scientology’s totalitarian leader, Captain David Miscavige, has absolute power over the money. There is also little or no accounting to anyone else within the Church of Scientology International, The Religious Technology Center or Scientology’s apex corporation the shadowy Church of Spiritual Technology. Please Google these various entities. Because the 1993 settlement agreement between the United States Internal Revenue Service (IRS), and the Scientology conglomerate makes the Scientology enterprise responsible for its own tax compliance, David Miscavige and his top deputies do not have to worry about the IRS ever seeing any second set of financial records. Allegedly, the Church of Scientology has largely ignored most of the requirements of the 1993 secret tax agreement that also gives individual Scientologists, the Churches and Corporations of Scientology special tax advantages and exemptions that are not permitted to any other United States taxpayer or church. Google: Sklar v. IRS. It has also been alleged that Merrill Lynch itself is infiltrated by Scientology operatives. Recently former Scientology staffer John Duignan published “The Complex” (available on Amazon.com) in which he explains how the Church of Scientology infiltrates and corrupts local government.  

 

The amount of Church of Scientology money that regularly is moving offshore through the secret numbered Merrill Lynch bank accounts is apparently in the many tens of millions of dollars. It is said there are Pool Accounts in Los Angeles, CA. and Clearwater, FL. Additionally, Bridge Publications Inc., apparently has a numbered account in Merrill Lynch New York and the International Association of Scientologists (IAS) has a numbered account at Merrill Lynch in Los Angeles. There are also secret numbered Merrill Lynch accounts in Europe; for example: Merrill Lynch in London.

 

            In mid April/May 2003, there was another problem in the Church of Scientology “Incomm” finance system. Many longs hours were required to provide a proper paper trail to deal with all the money that was just sitting in the Incomm. “Pool” accounts. There was an “invoice drive” to create six years of invoices for things that were never received. This would be fraudulent invoicing and apparently Scientology attorney Kendrick Moxon was extensively involved. It took a good deal of effort involving a big push to get all of the false invoicing completed by a certain date. Apparently, Mr. Moxon was in his office pushing the Incomm staff to get it done 24/7; to fix “the Flap,” as such problems are called in the Church. The “shore story” [what Scientology calls a false story for PR purposes] was that there was lost data and un-transferred data between the old and new Incomm. systems. It is claimed that about $25 million had to be cleaned up in this allegedly attorney supervised fraud.

 

             Let’s use the example of a $1,000 course payment paid to a Scientology Class IV Church or “Org.” Once a week, the Org pays its revenues into the Church’s electronic “Incomm” finance system where it is transferred to the Treasury Secretary at the Flag Banking Office. Some money is retained at Flag for the provision of services. The rest of the money goes to a “Pool Account” which is a numbered account inside the Scientology Finance System. The payment itself is also assigned a number. Donations, invoiced payments and debits are then paid into different secondary accounts within the numbered Merrill Lynch accounts.  Returning to our $1,000 course payment example, $500 would be deposited “on account” into a Services account and the other $500 for an OT package (usually costing many thousands of dollars) into the “Pool Account.” Of this, 30% would be transferred via Merrill Lynch to the Religious Technology Center (“RTC”) secret numbered account in Los Angeles for the various RTC licensing fees [then up to Church of Spiritual Technology or CST]. The other 70% would also be paid into a Merrill Lynch numbered account, but transferred offshore to another numbered Merrill Lynch account in Antigua.         

 

            The frequent and numerous Scientology “special events” also provide a vehicle for pushing money around offshore in numbered accounts. For example, there may be a M.V. Freewind’s event. Some of the money would be paid to the Org and transferred into the “Pool Account.” Thirty per cent of that might be paid to RTC for its license fees. The rest of the money would be paid to the ship’s account offshore from which another 30% would be paid to RTC for its license fees. Here we see that RTC is, in effect, “double dipping.” Thus from a $10,000 payment, $5,000 would be paid to the Org from which $1, 500 (30%) would be paid to RTC and $5,000 would be paid offshore to the ship from which about $1,500 would also be paid to RTC.

 

            There is also a great deal of money flowing into the World Institute of Scientology Enterprises (“WISE”) every week. WISE comprises most Scientologist owned businesses (such as Executive Software systems) and many non- Scientology businesses using the L. Ron Hubbard management technology. These businesses pay license fees to WISE. Although some of the money stays in the local WISE chapter for operating costs, most of the money goes to WISE Int. (International). From WISE Int., (1) a variable amount (more than 30%; likely 40-50%) goes to RTC; (2) the rest is paid into the WISE Chapter “Pool Account.” It is used for buying church buildings and for forming real estate companies to buy buildings (e.g. Waterfront, Inc., in Hamburg, Germany). Consequently, tax exempt IRS section 501 (c) (3) religious monies are allegedly being paid into offshore numbered Merrill Lynch bank accounts and then invested into various for profit projects and into for profit corporate accounts. It has been alleged to me that many of these companies (false fronts) then declare bankruptcy, the documents disappear and on the WISE account books you merely see “company ceased operations.” In this manner RTC receives (through WISE) a percentage of the gross profit earned Scientologist owned businesses and it also receives fees for Scientology courses and auditing from the mostly scientologist employees (through the Church of Scientology International).    

 

            All Scientologists must also belong to the International Association of Scientologists (“IAS”) which has multiple levels of very expensive memberships. Officially the IAS monies are paid to the U.K. but this is another “Scientology shore [or false] story” for the United States tax authorities. In fact, IAS monies get bundled and are paid into a Merrill Lynch Pool numbered bank account, one of about forty different numbered Merrill Lynch pool accounts maintained by the Church. For example, there is might be an IAS membership drive requiring every Org to raise $20,000-$30,000 [for example, to provide funds for a major court case]. A total of five million dollars is bundled. A certain amount of that bundle is transferred to the Church accounts in the U.K. The Church then waits until the currency exchange rate is as high as possible. However, as between IAS [CoS] and Merrill Lynch there is an agreement that currency exchanges and transfers will be made at a fixed exchange rate. Allegedly, only the lower rate is reported to the U.S. IRS. The IAS has a trading account with Merrill Lynch and Merrill Lynch has one with Travel Ex (on behalf of the Church of Scientology). Subsequently the difference between the higher exchange rate and the lower exchange rate is transferred to the numbered Merrill Lynch accounts in Antigua. The rest of the money [of say $5 million] from the IAS drive [say $2.5 million] goes to the IAS goal drive. So the Scientology public is [fraudulently] told that all the money goes to the U.K. but in reality it is only a small percentage of what is actually raised. Most of the money has been transferred to a secret numbered Merrill Lynch offshore bank account in Antigua (and other favorable havens).

 

            The next step of one of these alleged frauds may well go like this: IAS might launch a new campaign by the Scientology front-group Citizen’s Commission for Human Rights (“CCHR”) a Scientology front group opposed to the mental health profession. It requires publications and videos which will be produced by Gold Base at Gilman Hot Springs, CA. For example, Gold Base might charge the IAS $2 million for the video but the actual cost to the IAS will be only $1 million. So there is the invoiced amount and the amount actually paid. Then, say $1 million is paid by Gold Base to RTC for the use of the LRH copyrights.  The same type of scheme is used for the Hubbard book sales by Bridge Publications (BPI).

 

            Other sources of Scientology income are also amendable to this alleged fraud by the Church. For example, the Scientology “chapel” might be rented out for cash, say $1,500 per month. This cash all goes into the “Pool Account” and then to one of the secret Scientology offshore numbered Merrill Lynch bank accounts in Antigua. Meanwhile, for operating purposes, the Church of Scientology maintains many local bank accounts. For example, with Bank of America and Washington Mutual.

 

Finally, let me give one recent example to those celebrity opinion leaders who say the Church of Scientology is a harmless mainstream church that should be ignored and allowed to go about its business of making money. In my opinion, this one recent example of Scientology conduct illustrates how insidious and despicably deceitful, dangerous and deadly this faux church is, even to its own celebrity members such as Tom Cruise and John Travolta.

 

In 1987, the Church of Scientology bought the 5,000 ton cruise ship the M.V. Freewinds. At the time, the Church of Scientology knew that the ship was riddled with blue asbestos. It said this all over the plans and they were told that by the engineer in charge of converting the ship to Scientology use. David Miscavige and the Church of Scientology intentionally and negligently ignored the warnings. Why? Because the ship would be used by upper level Scientologists who are immune to all disease or injury, and because Scientology E-meter auditing will cure all injuries or illnesses anyway, including, by way of example, autism and cancer, and since Hubbard never wrote that asbestos can cause cancer, it cannot be true that blue asbestos might cause cancer. In 1991, there was another reminder that the M.V. Freewinds was a killer ship exposing its passengers and crew to deadly cancer causing blue asbestos. The affidavit of Lawrence Woodcraft, the man who advised Miscavige of the cancer causing blue asbestos was posted on the Internet. Six months ago, the Scientology killer ship, M.V. Freewinds, was arrested in Curacao, because of asbestos contamination. Experts say the ship cannot be fully stripped of the deadly substance. Scientology is stripping away what asbestos it can, with its slave labor who believe that Scientology will protect them from asbestosis.

 

Today, Scientology staff is callously still being exposed to deadly cancer causing agents. Asbestos is being dangerously dumped in off-shore landfills. This is a public health and safety outrage involving thousands of people knowingly and intentionally being exposed to asbestos and the potential of Asbestiosis. Tom Cruise, John Travolta and all of the other Scientology celebrities have been intentionally, knowingly and negligently exposed to cancer causing blue asbestos, which is the very worst sort of asbestos. Scientology has ignored the problem. Scientology denies it. Scientology is now selling cruises and Scientology courses on the Freewinds in spite of the asbestos contamination. This is a public health and safety threat, and a huge looming public health cost. The Riverside County Supervisors should not be supporting the Church of Scientology in its attempts to prevent its staff members at Gold Base from receiving information and regular monitoring for asbestosis. Suppressing freedom of speech to prevent Scientology staffers from learning, among other things, of their potential exposure to deadly blue asbestos is despicable.

 

I urge each of you vote against the proposed ordinances in any form that might arguably be applied to limit the proximity of public protests along the edge of Highway 79 outside the Church of Scientology’s Gold Base at Gilman Hot Springs near Hemet.

 

In addition, I urge each of you to introduce and/or support a full, transparent and public investigation, with public submissions and public hearings, into any actual unlawful activities, unlawful conduct or human rights/civil rights/labor rights violations that have occurred in, and in connection with, the Scientology facilities known as Gold Base. Remember Jonestown, Waco and Heavensgate. Your oaths of office require nothing less.

 

                                                            Respectfully,

                                                                   

                                                            Graham E. Berry

 

Map of Scientology’s International Headquarters:

http://www.portlandmercury.com/extras/pdf/feature/base-map.pdf from: Selling Scientology, A Former Scientologist Marketing Guru Turns against the Church by Matt Davis http://www.portlandmercury.com/news/selling_scientology/Content?oid=862344

 

www.grahamberry.com

 

Enclosures: Per separate list.

 

Ccs: And as per separate list.

                                                           

Supervisor Roy Wilson, Chairman

Riverside County Board of Supervisors
4080 Lemon St., 5th Floor
Riverside, CA 92502

district4@rcbos.org

Fax: (951) 955-2194

Tel: (951) 955-1040

 

Supervisor Bob Buster

Riverside County Board of Supervisors
4080 Lemon St., 5th Floor
Riverside, CA 92502
 
district1@rcbos.org
Fax: 951-955-1019

Phone: 951-955-1010

Supervisor Marion Ashley

Riverside County Board of Supervisors
4080 Lemon St., 5th Floor
Riverside, CA 92502

district5@rcbos.org
(951) 955-1050

 

Supervisor John Tavaglione

Riverside County Board of Supervisors
4080 Lemon Street, 5th Floor
Riverside, California 92501

 

district2@rcbos.org

(951) 955-1020

 

Supervisor Jeff Stone

Riverside County Board of Supervisors
4080 Lemon St., 5th Floor
Riverside, CA 92501

 

district3@rcbos.org
Faxes: (951) 955-2194, (951) 301-8571, (951) 791-3465

 

(951) 955-1030

 

Press Enterprise: Riverside News Fax (951) 368-9023; Hemet News Fax (9510) 763-3450

Los Angeles Times:  michael.owen@latimes.com     tenny.tatusian@latimes.com

Tags: , 501 c 3, BERRY, fraud, Gold Base, I.R.S., Miscavige, Moxon, RATHBUN, Religion, Riverside County, Scientology, STONE, SUPERVISOR, TAX, TAX FREE

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