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Lawsuit Alleges Church of Scientology in Utah Involved in Ponzi Scheme

CoSSLCIn Salt Lake City, a retired schoolteacher and her son are suing a group of people they accuse of running a Ponzi scheme involving — and designed to benefit — the Church of Scientology in Utah.

Carol Bee and Brian Bagley are suing a group of investors in a state court action, but also have filed a complaint in the bankruptcy of Barry and Kimberly Hunter, two Scientologists who became insolvent when the financial services company they were trying to get off the ground, Portfolio Manager International, failed in 2011.

The Hunters have responded in detailed court filings denying that PMI was a Ponzi scheme, and they say that Bee and Bagley were harmed not by PMI but by a man named Christopher Hales, who is currently serving 7.5 years in federal prison for bank fraud. The Hunters say that they actually tried to help Bee and Bagley once they realized Hales was acting strangely about the investments that Bee and Bagley had given him.

But since the Hunters made those responses, Bee and Bagley have now filed a beefed-up amended complaint asserting that Barry Hunter and his other partners formed PMI in 2005 as a fraudulent scheme that would in part raise money for a Scientology foundation.

“PMI was never operated as a legitimate business,” says David Scofield, attorney for Bee and Bagley.

Scofield’s court filings include lengthy descriptions of Scientology as an explanation for how its unique ethics make it a cauldron for fraud.

On April 15, Kimberly Hunter filed a passionate letter written to the bankruptcy judge, pleading that the complaint filed by Bee and Bagley was just a shakedown attempt…

Although I have spent my career in photography production, I have spent a lifetime in the volunteer service of others. I was volunteer Ski Patrol for the Olympics at Soldier Hollow…I went to Banda Aceh, Indonesia for the tsunami relief there (twice)…Does that sound like the same “conspirator” listed in this wildly frivolous lawsuit?

…We did not take one penny from this woman, Carol Bee or her son Brian Bagley. I never even met her. I have lost everything in this bankruptcy. I have lost my home to the bank. If we had hidden assets, don’t you think we would have used them to save the home that our children grew up in? The home that I remodeled every square inch of myself?

…for the bankruptcy to be blocked by this insanely frivolous lawsuit naming me and my husband as conspirators, when I know for sure they never received one cent from her…This suit is what is evil, not us. We are as much a victim to Chris Hales as she is. Mr. Scofield is throwing mud on the wall trying to get something to stick. Trying to get someone to cry uncle and write a check.

Barry Hunter explained in his own letter to the bankruptcy court that he and his PMI partner Michael Wright, another Scientologist, actually tried to help Bee and Bagley when they realized that Hales was a scammer…

In December of 2009 after Mike Wright and I met with Carol and had proof that Carol had been defrauded by Chris Hales we acted immediately and decisively. Mike and I immediately sent a cease and desist letter to Chris Hales and Markus Williams. I also wrote a letter to Michael Hines, the Director of Enforcement for the State of Utah Dept. of Securities informing him of Chris Hales and their wrongdoings. I made every attempt to assist Carol Bee and Brian Bagley that was possible and a few days after our meeting Carol Bee and Brian discontinued taking or returning our phone calls. Later in 2010 after Chris Hales had been arrested we invited the FBI into our offices to assist them in any way we could. We were told by the FBI that they found no evidence involving criminal misconduct on the part of PMI or Oneiros. None of Carol Bee’s Funds were ever transferred to PMI. I was completely shocked some nine months later to be named as co-conspirators with Chris Hales and Markus Williams, the very individuals we blew the whistle on.

In a September, 2010 motion asking a federal court in Utah to keep Hales in custody while awaiting trial, US Attorney Carlie Christensen also described the harm done to Bee and Bagley as something done at the hands of Hales, not PMI…

An August ’08-January ’10 investment fraud scheme whereby Hales and cohorts Richardson and Markus Williams scammed victims Carol Bee and Brian Bagley out of $244K that was purportedly to be invested in specialized computer servers (at $50K each) with a company not under their control called PMI that could purportedly predict stock market fluctuations, with the remaining funds to be invested in the market using the server programs. None of the funds were invested with PMI, and the investors have received nothing in return for their investment, and no accounting of the invested funds.

But in the amended complaint filed on April 26, Scofield points out that the Hunters filed for bankruptcy nearly two years after Bee and Bagley had initially sued them in the state court action. Scofield says that even the attorney for the Hunters in that lawsuit was unaware that they had sought bankruptcy protection.

Scofield’s amended complaint includes a lengthy description of Scientology and its basic ideas: He aims to show that its underpinning concepts are all about bringing in money in ever-greater quantities through the use of levels of involvement…

Even upon achieving a state of “Clear,” followers are warned that grave spiritual dangers are eminent [sic] unless they continue on to the higher and more expensive levels…[Scientology founder L. Ron] Hubbard’s goal for the church was to “Make money. Make more money. Make others produce so as to make money…However you get them in or why, just do it.” Hubbard’s proclamation has been taken most literally, resulting in the Church’s effort to gain influence and affluence by resorting to financial scams which act as a front for recruitment and/or income for the Church.

Scofield then points out that the church operates hundreds of front organizations which often downplay or hide their connections to the church, and that Scientology retaliates against critics in its “Fair Game” policy. (He also, in a footnote, references the Ponzi scheme of Scientologist Reed Slatkin, one of the largest such schemes in history, which took in hundreds of millions from investors — many of them fellow church members — before it was shut down in 2001. Slatkin was sentenced to 14 years in prison in 2003.)

The complaint asserts that the scheme’s principals were not only attracting people to their business operation, but also trying to bring Utah Mormons into Scientology. Both Barry Hunter and Chris Hales, the complaint says, were Mormons who had been brought into Scientology. Hales, however, was unable to finish his experience in Scientology’s sauna-and-vitamins regimen, the “Purification Rundown,” and quit two days before the finish.

It was important to have Scientologists in the scheme, Scofield argues, because church rules prevent Scientologists from suing each other…

Defendants Michael Wright and Barry Don Hunter, relying on Defendant Wright’s position as President of the Church of Scientology of Salt Lake, solicited Defendants Burton, D’Arezzo, Farr, Kingdon, Petersen, Stowe and Szaniszlo (“Scientologist Defendants”), each being a member and subscriber to the tenets of Scientology, to invest in PMI by making loans to the company.

Scofield writes that he intends to show at trial that these investors were attracted to the project because they believed PMI would not only make them money but it would also raise funds for the church, and that PMI would accomplish this as a “fraudulent high yield investment program” — a Ponzi scheme.

Christopher Hales

Christopher Hales

The hook for unsuspecting investors — such as Bee and Bagley — Scofield claims, was that PMI would be sold as a set of servers running advanced software that could predict fluctuations in foreign currencies. Money was raised even though PMI had never actually bought or sold a thing — it had shown high yields only in practice runs operating on hypothetical trades.

One of the groups that became interested in PMI was named Bentley Holdings, which was run by Christopher Hales, Markus Williams, and a man named Eric Richardson, who was mayor of Cedar Hills, Utah. Like Hales, Richardson is now doing time in federal prison for bank fraud. Hales, Williams, and Richardson convinced Bee and Bagley to get involved with PMI. They brought the two investors to meet Hunter and Wright, the complaint says…

On or about January 12, 2009, Bee and Bagley met with Wright, Hunter, Hales and Williams at the PMI office. Wright gave a 45 minute presentation with several color bar graphs illustrating returns on investment. Wright represented that PMI, through paper trading test runs, had made up to 72 percent in a 3 month period. Wright represented that the potential was there for investors to make an excellent profit with relatively no risk involved.

Scofield writes in the complaint that Bee and Bagley were told that PMI was just waiting for some approvals from the Securities and Exchange Commission before it could begin trading for real. Investors were told that only a limited number of server positions could be bought, and those who were too late would be shut out. With promises of high yields, Bee and Bagley turned over about $130,000 to Hales and Bentley Holdings, which they were assured would be put into PMI. They were also convinced to help Hales purchase an RV, and to invest some money in an oil business. Later, at a meeting with Hunter, they realized that PMI had received only a small portion of their investments. At that point, Hunter told them that he would help them report Hales to law enforcement.

In the complaint, Scofield is clearly skeptical about Hunter’s claims about helping them snare Hales. He reasserts several times in the complaint that from the beginning, PMI was meant to fleece investors on behalf of Scientologists and Scientology.

To bolster that point, Scofield reveals that since an earlier complaint, he has obtained numerous intriguing e-mails between the principals of PMI, and some of them are shot through with Scientology jargon.

Hunter in one e-mail says that he will “continue to push the comm lines out on this end so we can get the funds we need.” And a letter from several principals, including Hunter, says “the majority of the profits will be earmarked to profit sharing plans with the bulk of the capital being used to fund a philanthropic foundation…the system will ultimately be used to fund the foundation.” Under examination, Scofield says, Hunter indicated that this “foundation” would be a Scientology entity.

On January 9, 2009, Hunter sounded excited in an e-mail about the prospect of bringing in two “fat cat” clients: “We have two fat cat clients who could easily bring in over $500 Million each so we’re not really wanting more small clients. The 50K fee is actually a partially refundable Earnest Money Agreement. They have been fairly easy to come by with clients who have large amounts of liquid cash.”

On March 9, 2009, Hunter and Wright received an e-mail from Michael Baybak, a longtime Scientologist and investor who was noted for his unusual trades in TIME magazine’s landmark 1991 special issue on Scientology (“The Thriving Cult of Greed and Power”) by writer Richard Behar. (Baybak is not a party to the lawsuit. In 2009 he was awarded the status “Patron Excalibur” by Scientology leader David Miscavige for donating an estimated $15 million to the church.)

Bayback thanked the PMI principals “for forwarding your write-up on the strategic vision you folks have for your group’s grand goals as well as the interdependent structure of the four entities you have in mind to carry forth successful accomplishment of your (emerging favorite word here) audacious and, dare I say, exteriorizing mission. I can certainly buy into the grand vision and the enlightened purposes of your intended activity, and I do rather like your conception of the structural elements, including the ‘hub and spoke’ concept of the various funds that would [be] structured to operate under, if I get this rightly, PMI operations. Seems to me that you are really maximizing the structure to milk the global market’s cow maximally — and for the greater good.”

Other e-mails indicated that Baybak made a $2 million investment in PMI, but we want to stress again that he is not a party to the lawsuit.

A note from Wright to one of the other principals: “I personally want you to know that it’s not just about your helping provide the financing which is of course a great help. But I feel the greater value comes in having a group of thetans with some horsepower on board pushing together with us as a single determined entity. Money can’t make a postulate…I know, you all know our church needs our help and I do not know about but I personally see no other group of individuals other than ourselves that have an actual workable plan underway.”

And perhaps the strangest message, from Hunter, about a Mormon friend: “My good friend Kevin Calderwood is coming to see the system next Tuesday. He has a personal net worth of over $100 Million and is based in Salt Lake City. He is also a Stake President in Washington D.C., a very theta guy and could be an excellent ally for ridding the LDS church of Psychiatry and Psychology.”

Scientology traditionally considers psychiatry to be an abomination that it seeks to destroy. It’s not clear, however, how PMI would have been able to help rid the Mormon church of psychiatry.

According to the complaint, Bee and Bagley are asking at least $1.3 million in damages, and in bankruptcy court damages are trebled.

The defendants have, in their responses to the bankruptcy court, either asserted that they had no knowledge of what Bee and Bagley allege, or, as in the case of the Hunters, submitted passionate defenses, which we’ve excerpted above. But we’ll let you see those defenses yourself and put them here in their entirety, along with the amended complaint. The Hunters say they made an honest attempt to get a financial business off the ground, and were unfortunate that a convicted scammer like Hales got involved. Bee and Bagley allege that Hunter and his partners were out to scam investors from the start, and that their involvement in the Church of Scientology gave them the ethical compass to do so. The amended complaint includes as defendants Scientology’s Salt Lake City mission, its Utah church, and the Church of Scientology International.

Scofield tells us that there has been no local news coverage of this lawsuit in Utah. We tried calling the Hunters at their current business, Hunter-Champlin, Inc., but the number listed online has been disconnected. Their court responses, however, speak rather voluminously for them. Here’s Kimberly Hunter’s evocative letter to the court…

 

Kimberly Hunter Response

 
 
Her husband Barry Hunter’s response to the bankruptcy court has much more detail about the background of PMI…

 

Barry Hunter Response

 
 
And here is the lengthy and complex amended complaint filed April 26 on behalf of Carol Bee and Brian Bagley by their attorney, David Scofield…

 

Bee Bagley Amended Complaint

 
It’s a very complex case, and one that we’ll keep an eye on as it progresses. Scofield tells us the case is going into a discovery phase, and he expects to depose many people, which could yield more fascinating material.

“Carol Bee was a secondary school teacher her whole life until her retirement in the state of Tennessee,” he tells us. “She was divorced before moving to Utah, and the money she lost here comprises most of her life savings.” Her son, Brian Bagley, is in his 40s, and Scofield says Bagley had to file bankruptcy after he helped Chris Hales purchase an RV, and payments were not made on it as were promised. Neither of them, Scofield points out, has money for attorneys. But Scofield made it clear that he believes Bee and Bagley are up against scammers who still haven’t explained themselves.

“I’m willing to go to the mat against these people,” he says.

 
——————–

An Underground Bunker Head’s Up

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Posted by Tony Ortega on May 6, 2013 at 07:00

E-mail your tips and story ideas to tonyo94@gmail.com or follow us on Twitter. We post behind-the-scenes updates at our Facebook author page. Here at the Bunker we try to have a post up every morning at 7 AM Eastern (Noon GMT), and on some days we post an afternoon story at around 2 PM. After every new story we send out an alert to our e-mail list and our FB page.

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  • Observer

    More incredibly ethical behavior from more of The Most Ethical People On the Planet.

    “Our church needs our help”. Miscavige is doing a pretty good job of running it into the ground on its own, but I certainly appreciate your efforts. Every bit of fuel on the fire helps. And I especially enjoyed Kimberly Hunter’s aggrieved, martyrish whining. Where’s all that theta power? Why are you so at effect?

    That said, I don’t understand why, post-Madoff, people are still suckers for the promise of high returns. I’d want to see a whole lot more than a PowerPoint presentation before investing anything. At least it seems Bee and Bagley have made a good choice in David Scofield. It sounds like he’s got Scientology’s number and is willing to take them on.

    Bee and Bagley … kind of sounds like an English pub.

    • richelieu jr

      Yeah Kimberly! What did you do to ‘pull this in’?

    • Truthiwant

      I used to live near a pub called ‘The Hope and Anchor’. The locals called it ‘The Grope and Wanker’.

  • jensting

    It does sound like a complex case, indeed. However, getting the local office of the criminal organisation known as the “church” of $cientology involved as a fenedant should enable more facts to be known.

    It’s a recurring theme that many victims of the scam(s) perpetrated by the Co$ are preselected as having too much trust given too uncritically. “Gottabrain” on WWP has written very recently about this.

    • ThetaBara

      Good point. I think this is common with all sorts of predatory behavior – checking out potential marks and moving on until they find an easy victim. Otherwise it is too easy to get in trouble.

  • sharon brown

    And the blows just keep coming, Love it ! MAYhem is truly turning into a month of Country wide enturbulation for Tiny Fists and CO$. It’s like a bad game of Whac-a-mole for $cientology, except for every mole they beat over the head, 10 more pop up! And it’s spreading! How many states have joined the entheta realm now? Georgia, Oklahoma, Florida now Utah. Thanks Tony for making my day the way you do! Can’t wait to see what other goodies you have for us!

    • elar aitch

      Don’t forget California

      • And Texas (where all my exes live) has been entheta for years.

      • I’m sort of tempted to go hang out at the Supreme Court, just for the sheer fun of it.

        There’s a phrase I never thought I’d utter.

  • mirele

    With the Great Recession, there’ve been a lot of these high-yield investment Ponzis spring up to take advantage of people. They saw their money swirling ’round the drain in the stock market, so they pulled it out and put it in a Ponzi scheme and lost it entirely. It’s not just Bernie Madoff’s scam, which promised 12 percent per annum. Nope, Zeek Investments was promising appreciations of one percent A DAY and Profitable Sunrise had an Easter payout that would have paid an investor two percent and more a day compounded interest on their investment. The government is still working through the fallout of Zeek Investments while the money in Profitable Sunrise, which was wired to Eastern Europe, is gone, gone, gone.

    It’s also worth reminding people that one of the largest Ponzi schemes to collapse before Madoff here in the States was that of Reed Slatkin. A lot of Scientologists had parked their money with him, and he proceeded to lose it in the stock market. Scott Pilutik can speak more to this, but it’s not the first time Scientologists have been fleeced by a trusted member in the name of more money.

    • stanrogers

      Let’s see… at 1% per day, if you had the patience to let your money sit a while, an investment of $100 would pay out just shy of seven and a half billion dollars over five years. How could anyone possibly see a bit of over-promise in an arrangement like that? (If two percent were possible, the same $100 would yield about 450 quadrillion bucks over five years. If anyone ever promises that you can have ALL of the world’s wealth for the price of a good steak dinner, and it doesn’t sound just a little bit fishy to you, it’s probably time to get your greedometer recalibrated.)

      • ThetaBara

        Math is hard. Monkey no read. Monkey no run numbers. Monkey get scammed. This why Monkey need education!

        • stanrogers

          Surely word clearing and clay models will get you there…

  • There’s nothing like waking up to a cup of hot coffie and great news

  • 0tessa

    This is too complicated for my non-financial brain. But what I do see is that $cientology Inc uses every possible means to get MONEY, within or without the law. They must be desperate.

    • Michael Barger

      I also find this complex and will have to read several times. However, I welcome possibly adverse news about Scientology in Utah.

      Utah Attorney General Mark Shurtleff snuck $500K in state and federal funding for Narconon-related programs through the legislature, and people in Utah need to become more aware of Scientology’s threats to the citizens of the state.

    • elar aitch

      I’m waiting for the clay demo

      • BuryTheNuts2

        I could easily clay demo this case.

        I will just throw the clay at the wall……and, well…you know.

        • Observer

          I would roll it into a fecal shape.

          • 0tessa

            That will be some shitty demo … and they say that money does not stink (pecunia non olet).

  • Michael Barger

    “Look for a breaking news story this evening regarding another legal situation we’re keeping an eye on.”

    I am staying glued to my computer for this.

  • Shannon

    Tony has never told me how in the hell he gets any sleep even though I keep asking, I demand answers! I need his dealer or his zen mind tricks!

    When in rains it pours eh? It seems like the house of cards is really coming down on so many fronts. Makes me have faith in humanity righting itself 🙂

  • Truthiwant

    A quote from the article

    …with several color bar graphs illustrating returns on investment… had made up to 72 percent in a 3
    month period.

    Hmmm, not too bad but still not as good as David Miscavige’s graphs at the IAS event.

    Here’s a graph that maybe Mr. Miscavige would like to use at the next Birthday event…

  • I hope The Church of Scientology, David Miscavige, and everyone involved in this are brought to justice. The mass of information presented is a bit overwhelming to me and I hope that someone who understands this better than I can summarize and make the information more understandable.

  • sugarplumfairy

    =)

    Bet the cardones, the feshbachs, the fialkoffs and plenty of other top o’ the food chain scientologists are paying attention to this one..

  • Dao Jones

    I think we’ve probably been spoiled, because my foremost thought whilst reading this was: “Can’t we just have Scott Pilutik explain this to us?”

    • t1kk

      Thanks for thinking of me. I’m reading through and contemplating whether or not I need a spreadsheet to wrap my head around what’s going on here. Spreadsheet or not it’ll take a little bit for me to sort out what’s going on, given that there’s also an underlying state court action. But I’ll definitely make an attempt at sorting it out and I’m sure Tony will relay such when I do.

      • monkeyknickers

        Thank god. I need a translator. I just posted a distress call even. So, you go . . . . think or whatever it is that smart people do, and those among who CAN’T think will send you cyber-cookies or something.

      • Thanks. Indeed this one looks a lot more tangled than even the usual Scion case.

      • TheHoleDoesNotExist

        tks, tikk. is this basically a case of Intent (to defraud)?

    • BuryTheNuts2

      You are right! We are spoiled.
      And I like it.

    • LOL! I have to admit one of the first things I looked for after reading it was Scott’s take on it, either as an
      addendum from Tony or in the comments.

    • Jenny Tetlow

      Send up the Tikk signal

  • Vistaril

    Ooooh . . . yummy. I noticed with the Narconon scam the authorities really couldn’t be bothered bestirring themselves over the deaths of “patients”, but mention insurance fraud and they’re in like Flynn, with guns. An indictment on the current state of society, I guess, but worthy of observing and making use of. In today’s story we have a tale not of the human emotions tortured by Scientology’s PTS/SP Doctrine and its disconnection, but a real live hard out organised fraud. There must be other people who have been ripped off by this bunch. If they would only stand up and be counted it might prompt the authorities to start doing their job. If they follow the money, they will see that Scientology itself is an on-going organised international conspiracy to defraud – and has been since 1950 when L Ron Hubbard said he cured his war injuries using Dianetics. Coupled with the peeling back of the religious cloaking in yesterday’s update in the Laura DeCrescenzo case, its just a matter of lining up the dots.

    C’mon USA!!11!! France has done it. Russia has done it. Germany has done it. Belguim is in the process of doing it. Its not like it hasn’t happened before – remember Reed Slatkin? – and its not like your own courts haven’t seen through the Scientology scam before . . .

    “An individual processed with the aid of the E-meter was said to reach the intended goal of “clear” and was led to believe there was reliable scientific proof that once cleared many, indeed most illnesses would automatically be cured. Auditing was guaranteed to be successful. All this was and is false — in short, a fraud. ” <— July 30, 1971 Federal District Judge Gesell / 333 F. Supp. 357; 1971 U.S. Dist

    • sugarplumfairy

      And they’re still making the same ridiculous claims.. yesterday’s Sunday funnies included all those “undreamed of, sky-high OT ability” promises..

      makes me sad to think there’s still people out there gullible enough to believe co$ crap..

    • TheHoleDoesNotExist

      [IMG]http://i44.tinypic.com/4rfiqb.jpg[/IMG]

  • BosonStark

    Mormon-Scientologists are probably under a lot of pressure, with the 10% income tithe to LDS, and Scientology wanting the other 90% in donations, advance payments for services, payments to dozens of money-sucking front groups and investment scams.

    Hey, the Scientologists have a planet to clear, before it’s too late.

  • TheHoleDoesNotExist

    The Usual Scientology Suspects:
    I assume tonight’s news will be about Laura DeCrescenzo’s lawsuit. First glance it might appear to not be related to today’s lawsuit, oh but not so fast. When I saw the list of names in the letter of “amici curiae”, I immediately thought of the Al Capone case and the whole issue about bringing in “witnesses”, or the usual suspects. All of these “friends” are veteran scientologists known not as Ministers of scientology but 1) Multimillion Donors 2) FSM’s, Major Salesman Operators for scientology, and 3) financial history of at best questionable practices and in particular, investment schemes, whether stock markets, real estate, MLM, etc, all with scientology as a beneficiary and the main reason why the scientology organization is set up so members cannot sue each other or report fellow members to the authorities. And btw, for those wondering yesterday if “Parodi” was real, you will find him included in the List.

    There’s been speculation why Michael Baybeck suddenly “disappeared by late 2012 in the Donors List, such as IAS, and why his wife, Liz, suddenly seemed to be an Unwife. And it sure would explain while Michael was curiously Not included as “amici”. Today’s news explains it for me. What Most impresses me is how quite this has been kept which leads me to wonder just how worried Miscavige’s lawyers are now. Here’s snippets of information on just a few of these Pillars of scientology, certainly not all of their past business shenanigans, and any lawyers can find much more if they care to look. First, the names in Laura’s suit:

    George duggan, Andrew Johnston, Norman Taylor, Patrick Clouden, Steven Patrick Parodi, Izadore and Maryann Cahitt, Kay Daly, Elizabeth Baybeck, Norm and Terri Novitsky, Craig Jensen, Richard Ettricks, Cynthia Hall

    Elizabeth Baybeck
    https://whyweprotest.net/community/threads/michael-baybak-how-much-trouble-is-he-really-in.107421/
    http://www.leagle.com/xmlResult.aspx?xmldoc=1994120868iptcm1140_1959.xml&docbase=CSLWAR2-1986-2006
    http://www.slatkinfraud.com/articles/stockwatch_3_28_02.htm?now=42480&tref=1

    Norm and Terri Novitsky
    http://www.tampabay.com/news/whos-who-in-nationwide-title-clearing/1148525
    http://4closurefraud.org/2012/03/02/nationwide-title-clearing-ntc-to-attend-mbas-national-fraud-issues-conference-2012/ (see comments)

    Craig Jensen
    http://ocmb.xenu.net/ocmb/viewtopic.php?f=9&t=41348&start=1905

    Richard Ettricks,
    http://194.63.248.138/ocmb/viewtopic.php?t=3984&p=21574

    http://ocmb.xenu.net/ocmb/viewtopic.php?t=69963
    Celebs of scientology, who’s who list
    https://whyweprotest.net/community/threads/ot-viii-project-where-are-they-now.103693/

    • Vistaril

      Nice work. Thank you.

      • TheHoleDoesNotExist

        Oh wait….there’s more, just down a different rabbit hole. The scientology Hunter family are all deeply enmeshed as employees (lol, ok, volunteer) of scientology whether at the mission, org, or Applied Scholastics or Delphi school or Utah Meth Cop Narconon/Purif. On one member’s FB page, Madison Lucas-Hunter, you see the connections plus friends with the Wright’s, Farr, Naylors, and
        https://www.facebook.com/madison.lucashunter/friends

        oh look at this friend: Paul Poulin, works with David Morse Assoc. An OSA/former Guardian’s Office spy (ok, volunteer). I linked recently all the former GO personnel that could be found in any of David Morse & Assoc companies. Paul is also on the chummy L.A. OT Committee members list which

        oh my, looks like another who’s who list of former GO Usual Suspects: Duke Snider, Heldt, etc. (Not G.O., but noticed Parodi and Ettricks there too). Not sure of date on this list.
        Paul’s position at Morse? In charge of Investigations.

        http://ocmb.xenu.net/ocmb/viewtopic.php?t=25618
        List of personnel of L.A.scientology OT Committee

        There used to be a “6 Degrees” thing of scientology fraudsters. It appears the shrinkage is so severe that it is now down to “2 Degrees”.

        • DeElizabethan

          Yea THDNE!

          • TheHoleDoesNotExist

            Did you see that list of “OT” Committee/Ambassador members list of LaLa land, De? I just about fell off the bed…good thing I have my side table set up. Isn’t that half of the old GO squad? Do you have a list of the Clearwater OTC? I wonder if the “other half” is embedded here in Cleargate? As I understand how things work today, the OTC members are all run by RTC and David Miscavige directly. Miscavige running the Old Guard? He Hated those guys and the feeling was mutual. What in the world is up ?
            I smell a plot afoot. Or maybe I just need to let in some fresh air. I can not describe how bizarre this scene is and unlikely. And very scary. For Miscavige this time!

            • DeElizabethan

              Do you have that list available or tell me where to find again? Seems I saw it but didn’t have any on it I knew. The other half must be here. Don’t have a list for CW but do have some names I could put together.
              Ben S is old/new GO and he loves Davy boy. Some may be plotting but I don’t see near future anything happening.

            • TheHoleDoesNotExist

              Use this link and scroll down until you see the list. This is for L.A. I assume you mean Ben Shaw, right? Him, he’s gotta be on his death bed. Mary, anyone at All seen her since spotted RPF fashion last year? I’m just thinking if DM runs for the hills, there are some nasty characters with their itchy fingers on the pulse.
              http://ocmb.xenu.net/ocmb/viewtopic.php?t=25618

            • DeElizabethan

              Ben is still going strong it seems and active here and was just seen last month. I saw him and Mary late last year dressed in normal clothes, not see her this year yet.
              Thanks for the link will check it out. I wish DM would run for the hills but I doubt it, he’s all ego.

        • grundoon

          This list from 1998 is past due for an update: The Scientology Cult’s GO/OSA 11, Where Are They Now?

          • TheHoleDoesNotExist

            Yes, another good handy list, but needs an update. Tks

        • grundoon

          Jon Atack scoured the Stipulation of Evidence in in USA v MSH et al, US District Court for the District of Columbia, criminal case no. 78-401, and found these names referenced as either unindicted co-conspirators or involved in some way:

          Joseph Alesi; Don Alverzo; Peeter Alvet; Brian Andrus; Michael Baum; Jim Douglas; Nancy Douglas (“Pitts”); Jim Fiducia; Janet Finn; Martin Greenberg; Richard Kimmel; Paul Klopper (peripheral involvement); Gary Lawrence; Joe Lisa; John Luke; Lynn McNeill; Arthur “Artie” Maren; John Matoon; Carla Moxon; Rick Moxon; Jimmy Mulligan; George Pilat; Lexie Ramirez; Bruce Raymond (aka Randy Windment); Chuck Reese; Tom Reitze (Snow White I/C); Mary Rezzonico; Michael Taylor; Peggy Tyson; Bruce Ullman; Hugh Wilhere; Lt Warren Young (San Diego police) (205).

          http://www.american-buddha.com/cult.generalrepscientologyjonatack.htm footnote JCA-155. I was looking for an authoritative reference with a full list of the unindicted co-conspirators… anybody link to a better source?

  • Sherbet

    This lawsuit seems a little sparse on proof on both sides, but what do I know? It does sound very complicated. Still, any day somebody uses the words “scientology” and “fraud” in the same lawsuit is a good day.

  • grundoon

    It seems believable that the two guys who are in jail for financial shenanigans are the ones who ripped off everyone else including the bankrupt Scientologists. If the Scientologists had profited, they would have gone on to pour their gains down various Chruch ratholes, but it seems that was only an unrealized hope. The case seems to have little to do with Scientology, except for the reminder that a sucker seldom gets taken just once.

    • Davka

      On first read, I wonder whether a case can be made – connections seem tenuous (although I suppose that’s what discovery is for). Great reading for us, but the case would be a lot stronger if PMI had actually gotten any money – whether they were a legitimate business or not, doesn’t seem to have bearing on the criminality of Hales, who actually took the money and ran with it.

  • EnthralledObserver

    Ooh… more coming… I’ll be waiting. This is shaping up to be a great week for “Observers”. 😉

    • Observer

      Indeed! 🙂

  • I have heard here several times that it is always worse then you think. I wonder how many $cientology minded people are out there making their living and supplementing the church income in similar ways.

  • scnethics

    It’s easy for a scientologist to believe someone can create a computer program that accurately predicts the future of a market – that’s nothing compared to what Hubbard accomplished. Years ago, there was a 35 million dollar scam where people were sold a plastic ball filled with blue water that was supposed to clean your laundry by emitting a type of energy not recognized by mainstream science. The scientologists who created it funneled huge amounts of money to the church, which did nothing to stop their operation until all the money dried up. Afterwards, they were promptly declared Suppressive Persons. Apparently, their scam did quite well in Utah.

  • Yet another case of a scientology related company ripping people off and then failing miserably. In the end the only group or person that benefited was David Miscavige and his latest pet fundraising project.

    If their business skills were so awesome in Scilonville, then how do their companies keep failing? If they are so OT then how do they end up getting sued every week?

    This has happened countless numbers of times, yet most Scilons still never manage to walk away. This is because Hubbard built in all of the possible excuses he could, PTS, SP’s attacking when expansion occurs, Greatest Good mumbo jumbo, and every other countless reason NOT to question the nefarious activities of what is currently the largest ponzi scheme in operation. Some call it Scientology.

    When you give your money to someone and they give you nothing back – that is usually called theft. In Scilonville they call that the “greatest good for the greatest number of dynamics”. Too bad none of those dynamics have shit all to do with the person giving up the money. You usually have to leave scilonville before you figure this part out.

    Reed Slatkin learned from the best. So did Rex Fowler. So did David Miscavige.

    Hubbard was the overweight diet guru.

    The moral expert that was an unindicted coconspirator in the largest infiltration in the the US government in its history – TO THIS DAY.

    The expert diplomat exiled from multiple countries.

    Hubbard was the prolific expert writer who was so good ALL of his books had to be rewritten multiple times over the next 50 years.

    The relationship expert married multiple times and estranged from his children.

    The self declared chief enemy of psychiatric drugs that used them up until his death.

    Scientology was the life’s work of an expert con man.

    Hubbard died hiding alone in seclusion pumped full of drugs having people hunt down pesky invisible body thetans in some nearby horse corrals. We can only hope David Miscavige does not get off so easy.

    • Vistaril

      Yet another case of a scientology related company ripping people off and
      then failing miserably. In the end the only group or person that
      benefited was David Miscavige and his latest pet fundraising project . . .

      Fer sure, as Don, David Miscavige would have got his slice of the pie. But there are more than just his grubby hands in the take when it comes to the peripheral rip-offs that go on in any Scientology community. Its not just the innocent, spiritually inquisitive altruistic young person who gets sucked in. Circling the young people, and their parents, and their employers, and their friends, are the others . . . the sharks who, being dodgy themselves, immediately recognise Scientology for what it is: a scam and a ready pool of mind fucked punters ripe for the plucking. Scientology and, ultimately, David Miscavige get their cut,, but don’t think for minute there aren’t others also benefitting. The lawyers are doing pretty well and, who knows, maybe they actually run the show these days because, knowing what they must know, without them, David Miscavige gets to wash Bubba’s underpants for 20 years.

      IMNSHO : )

    • John P.

      Don’t forget the medical doctor who was such an expert in maintaining and enhancing health that he proudly wore a sebaceous cyst the size of a golf ball on his forehead for years and who let his teeth rot out of his head.

      • monkeyknickers

        You can see why he was such a big hit with the ladies.

      • PreferToBeAnon2

        Now that comment made coffee come out of my nose!

      • Jgg2012

        I though he was a nuclear physicist?

        • grundoon

          and a dessert topping

          • Jgg2012

            In his previous lives, he was a dessert topping, a clam, a Roman emperor, a man who blew up a planet, the inventor of music and a US President.

            • DodoTheLaser

              Also: Buddha, Machiavelli/Duke of Medici, Robespierre, Cecil Rhodes and some famous Civil War general, I believe.

              http://www.solitarytrees.net/racism/pastlife.htm

            • Jgg2012

              And most importantly, he invented the dictionary.

            • DodoTheLaser

              Oh, yeah, forgot that one.

            • Phil Thepiperi

              and Mettaya…..oh, and Lucifer…..aaahh anyone with name recognition and power!

            • Midwest Mom

              You forgot inter-galactic Peeping-Tom, Mentor to Planetary Opinion Leaders, and Motorcycle Stuntman.

        • Should have dropped an atomic bomb on that volcano on his forehead.

    • ThetaBara

      Why do so many of them still need to wear glasses?

      • Vistaril

        Shhh . . . don’t tell anyone, there’s no such thing as Engrams, its all bullshit. Never mind getting 20/20 eyesight, you end up paying thousands of dollars and don’t even get to keep the ashtray.

      • DeElizabethan

        Yes, and he degraded and ridiculed members who wore glasses in most of his lectures. Then gave some odd ball way to help them, some were dangerous. None of it works! I knew one who would walk around almost blind, just not to be seen wearing them.

        • Observer

          So Mankind’s Greatest Friend ridiculed people who wore glasses, and then went on to sprout a ghastly sebaceous cyst as his teeth rotted in his mouth. I’ll give Hubbard this: he was consistent in his hypocrisy.

        • grundoon

          Same as it ever was. Alphia Hart, a Dianetics enthusiast from the early days in Wichita, wrote in The Aberree newsletter of May 1954:

          In L. Ron Hubbard’s first book, “DIANETICS, the Modern Science of Mental Health”, a “clear” was described as a person “without psychoses, neuroses, compulsions, and repressions”, and “high above the current norm” in intelligence. A steady improvement in perceptics also could be expected.

          Almost immediately, the word itself began to manifest the entire gamut of human aberration. It became both a beacon of desire and the “sour grapes” of unattainability. For the latter, the word took on magnitudes that would have given a “clear” the attributes of the highest of the gods.

          The “clear” (Mr. Hubbard said) –even though he wore glasses an inch thick — might expect to start showing marked improvement in his eyesight, often changing glasses four or five times during therapy. The exaggerationists, glossing over the gradient of expected improvement, immediately assigned to the “clear” superlative vision. To wear glasses was to place one low on the Tone Scale (a hypothetical chart predicting what might be expected of an individual under any given circumstance.) Many, fearing that their visual deficiency would be self-invalidating, tortured and squinted and strained in stubborn misery, “knowing” that in time even small print would be no harder to read than was that big sign across the street with the dancing, foggy letters. Sometimes, in the privacy of their rooms, they’d sneak out their “cheaters”, but though they could read better, the “overt act” against Dianetics was a new “lock” on their guilt chain.

          • DodoTheLaser

            Ha! Nice find, Grundoon!
            So was The Aberree like the first Indie/Ex paper?

      • dbloch7986

        Overts and withholds are the reason that Hubbard said people wear glasses. He said that people who have accumulated too many crimes have trouble seeing because they cannot confront life anymore because they feel so evil. So, like everything else in Scientology, you need to confess your sins of butt sex, oral sex and masturbation so that you can see again. Because confessing your crimes (especially sexual ones) is how you make everything better!

        • Observer

          What kind of horrible O/W would cause you to develop a giant, hideous cyst on your forehead, I wonder?

          • dbloch7986

            Obviously some kind of sex. If i were to guess I would guess nose sex.

            • Observer

              Ew.

          • ThetaBara

            A bukkake bottoming fetish, perhaps?

        • ThetaBara

          He had a BS answer for everything!
          But, still, if someone is CLEAR, then shouldn’t they not need vision correction?

        • EnthralledObserver

          Hubtard did take that ‘old saying’ that wanking yourself too often will make you go blind a little too seriously, didn’t he? lol

      • When I left my eyesight IMPROVED!!!

        • DodoTheLaser

          And I don’t get colds as much as I used too. It’s nice to be “SP”. Go figure.

        • ThetaBara

          I think that may have actually happened right before.
          😉

        • ThetaBara

          I think that may have actually happened right before.
          😉

    • TheHoleDoesNotExist

      You left out another darn good reason, Mark: Blackmail/Extortion Fodder

  • dwayners13

    This is what I don’t understand, why do OT’s need a complex computer program & huge servers to predict fluctuations in the stock market. From all that I have read about “the powers” of an OT, it should be rather easy for them to anticipate any changes in the market. In fact, if Hubbard’s tech can actually do what he claimed it could, OT’s should be able to cause fluctuations in the market. If a group of scientologists wanted a specific stock to increase in value, all they need to do is gain cause over it & “bingo, bango, boom” it’s handled.

    • Douglas D. Douglas

      WHat a suppressive thing to point out.

      I like it.

  • TheHoleDoesNotExist

    “Over my two decades at Flag (the highest center in Scientology, located in Clearwater, Florida), I was called to obtain the written (and therefore entirely actionable) confessions of the perpetrators (and more sadly, provide counseling to address the upset and despondency from its victims) for dozens upon dozens of scams, swindles, pyramid or ponzi schemes and other empty promises and fraudulent loans.”

    “For years I wrote reports on the perpetrators of such scams, appalled that they would be granted immunity
    by a Church I came to see every day as more corrupt. Nothing came out of it, except for my being listed as a “trouble maker” and eventually marked for “orderly disposal”. Some of the victims of those schemes became dangerously despondent and found themselves destitute. In extreme cases, suicides or murderous rages were the final result.”

    Here’s the full statement by a veteran scientology counselor who personally witnessed decades of fraud and scientology’s benefit.

    http://pierreethier.wordpress.com/articles/the-merit-of-high-return-investments/

    And Hy Levy tried to do the right thing before he passed, even as a true believer still, about the scams and coercion and money pushers in scientology. He was a veteran Flag reg (salesmen).

    http://www.tampabay.com/news/scientology/former-scientology-insiders-describe-a-world-of-closers-prospects-crushing/1201166

    • Vistaril

      Yep . . . its right there, written down so it must be true, its good ole KSW Standard L Ron Hubbard Scientology scripture . . .

      “MAKE MONEY. MAKE MORE MONEY. MAKE OTHER PEOPLE PRODUCE SO AS TO MAKE MORE MONEY.” <—- – L. Ron Hubbard, Hubbard Communications Office Policy Letter, 9 March 1972, MS OEC 384

      (Caps in original)

  • Scientia

    When the “greatest good” is anything that assists a greedy, money-hungry, stat-obsessed, cash-for-status “church”, you’ll surprise yourself at the lengths you’ll go “to help” and be part of the team. It is a breeding ground for the desperate. It’s okay to lie, cheat and steal when you “operate above the overt motivator sequence”. Your actions support the only group that can undo the effects of the R6 implants and bring peace and sanity to the entire cosmos. It is a deadly serious activity. If a few dumb wogs get hurt in the process, so be it.

  • 1subgenius

    I like when a lawyer puts the juicy stuff right in the pleadings, like a fart in an elevator.

  • loulai

    If it sounds too good to be true- it is.

  • BuryTheNuts2

    Hmmm, this one appears tenuous at best.
    But anytime Scientology is mentioned in legal documents…..it usually makes me happy.
    Davey’s legal bills must be suckus!

    And anyone who would invest in this crap in the first place…with those kind of returns? Well, um….yeah….I think you all know where I am going with this.

    • DeElizabethan

      I’d bet that Davey will only help whatever he has to for his org. He will let the others die in the dust and hopefully they will poke their heads out and look around and turn!

  • aquaclara

    Bee and Bagley’s attorney, David Scofield, has done an excellent job in digging into the complexities of the Church of Scamatology. The filing is a surprisingly interesting read, packed with many factoids of interest. It puts on record even some of the church’s own overstated claims (“9,000 churches, missions and affiliated groups in 165 nations…”.), and even notes a partial listing of Church front groups sometimes concealed from public view as belonging to the Church, ranging from the serious (Moxon and Bartelson, which was news to me. I thought they were hired shills), to the sadly questionable (Stop Torture of Mental Patients, or STOMP), to the funny (Celebrity Center Kids On Stage For A Better World).
    The words Ponzi, Securities Laws, RICO come out loud and clear. There is no way Davey can miss this. We now know what he’s doing with his time spent on “ecclesiastical management activities.” This must be what they mean by reading more legal briefs and shouting at more lawyers, while scurrying around between Ideal Morgue openings and upholding the traditions of LRon’s favorite holidays.
    Wright, listed in here as being at the top of the hierarchy in this intentional set-up of scam companies, was or is the President of the Utah COS. Besides wondering whether he still holds this job, the next obvious question is whether there were any church leaders in Utah who were uninvolved or unaware of this Ponzi scheme. It’s looking like it could be the fastest clearing of a state COB has experienced yet. Davey, you might want to go word clear “clearing” again…..
    May is producing even more wonderfulness for the Church of Lawsuitology.

    • Douglas D. Douglas

      “Church of Lawsuitology.” I like that. Would “lawsuitology” mean “knowing when one is being sued?”

      • aquaclara

        It’s getting a little hard to miss those legal arrows when they are all flying at once…love seeing COS show up in that defendant line.

      • Knowingness of beingness suedness

    • Truthiwant

      I think you have really got it. The investments of Scientology go way beyond ecclesiastical ends.
      It reminds me of Wall Street in the late 1930’s and early 1940’s when they were pushing the German economy. Only when America entered the war did this change.

    • grundoon

      Somewhere, iirc, I read that, after the Snow White trial, the Guardian’s Office of Scientology paid unindicted co-conspirator Kendrick Moxon’s way through law school. The Scientology leadership wanted a fully trained and hatted, trusted Sea Org operative to serve as in-house counsel.

  • Espiando

    John, where are you? We need you on this one to untangle this crap.

    That being requested, Utah has long been a mammoth breeding ground for scams. The reason is simple: Mormons are some of the most trusting people on Earth, especially when it comes to other Mormons. They really do believe that most people are basically honest and will not try to rip them off. Numerous books have been written about scams that were born and bred in Utah.

    The Scis are the same way when it comes to trust issues, but they limit it to only other Scis, “the most ethical people on the planet”. Reed Slatkin was a mammoth shock to them. How could a Scientologist prey on other Scientologists? Of course, they don’t realize that “let us prey” is the motto of the entire cult.

    Can’t wait for the reveal later. Please, let it be the Oklahoma po-po and regulators at the gates of Arrowhead.

    • Anybody who believes that a prophet from upstate New York named Joe Smith saw an angel, who handed him a new volume of the Bible on golden plates, which he could translate with his crystal ball by talking through his hat, has “SUCKER” stamped all over his forehead.

      • dagobarbz

        Hey, Joe Smith’s descendents, John and Jane Smith, made that South Park episode, ‘Trapped in the Closet.’ Just sayin…

  • Ze Moo

    This ‘investment’ has fraud written all over it. Around 2004-06 several companies deployed software that could make stock market money on ultra-fast connections to wall street. In order to make the scheme work, the computers had to be as close to wall street as possible, bandwidth and location made the scheme work. The program would buy stocks that went up a few cents and sell them thousands of times per second. The profit per transaction was small, but done millions of times per day, it made (and still makes) money.

    While stocks can fluctuate in price in predicable patterns, foreign currency values doesn’t move around like that. They move in response to things like large buys of oil or wheat or payouts from the national treasury for large projects like dams or airports.

    When you’re asked to cosign a load for an RV for the company you’re investing with, your ‘spider sense’ should be screaming ‘danger will robinson’.

    This should be an interesting week. I look forward to Oklahoma’s governor signing the drug rehab oversight bill and there are several things going on at NarCONon Georgia. The ‘wack a mole’ of justice is wonderful thing to see.

    • John P.

      Yes, this investment is fraudulent from the get-go. From where I sit at Global Capitalism HQ, the notion that somebody could buy $50,000 worth of servers and do quant trading is laughable. That wouldn’t even buy you the servers that run the monitoring console for the giant server farm that does the actual work.

      I should point out that rapid-fire trading with all the stuff that has been done to get hosting near exchange computer systems is not a scam; in fact, it’s been encouraged by the exchanges themselves, which will offer “liquidity rebates” (discounts on exchange fees) to stimulate trading. Low latency empowers quant trading by giving you better execution if you’re located near an exchange computer; you have an improved chance of getting your order filled before the price reverses direction a few milliseconds later and you lose a fraction of a cent on your trade. Note that I am not at all a fan of rapid-fire trading; the potential for unintended market volatility and for eating through brokerage firm capital requirements is quite dangerous. The “flash crash” we had a couple years ago due to algorithms run amuck is just the beginning.

      FX markets are actually larger and more liquid in daily trading volume than stock exchanges, with tens of trillions of dollars of notional (underlying) value moving through the FX market daily. The volume of the various UKP/USD/EUR/JPY/CAD/CHF crosses are immense and are easily modeled. I wouldn’t go anywhere near trying to model the Egyptian Pound/Peruvian “Nuevo Sol” cross, however. So there are tons of quant oriented hedge funds that try to play arbitrage games with the currency markets, though talking to a couple of acquaintances in that game, the markets are liquid with enough price and information transparency that they’re very hard to get a sustainable advantage in. Commodity markets, particularly in emerging economies, are much easier to game and are hard to build a quantitative model that works, because they’re often quite susceptible to manipulation, either by liquidity traps or by insider information freely exchanged between the government and selected individuals (i.e., the president’s cousins and the family of some of the key generals in the army).

      And, yes, co-signing on a luxury toy for one of your investment partners is a danger sign — it suggests that they can’t get enough other people to sign up for the fraud that they need to buy money for the prizes they want to loot from the proceeds is surely a warning that you are in trouble. It stuns me that anybody would fail to see that for what it is.

      Scams committed by people who claim to have a mathematical basis to predict the future of the market have been around since at least the 1920’s and 1930’s, when “chartists” using hand-drawn graphs of stocks prices claimed to know what the market would do tomorrow. And these schemes always target the ill-informed. There have always been legitimate mathematical techniques to model market behavior and attempt to extrapolate it in the future; some have worked fairly well and quickly become “standard equipment” in every trader’s arsenal, so they lose their effectiveness. But I guarantee you that if the Hunters had actually come up with anything valuable, they could have sold it to a quant hedge fund on Wall Street for a lot of money, far more than they could have earned from the paltry sums they raised from the victims in this fraud.

      • Missionary Kid

        To slow down this excessive flow, based on timing, would it be better to have a very small tax on trades?

        • John P.

          I am in favor of a financial transactions tax; it would put the rapid-fire guys out of business and would eliminate many unintentional types of volatility from the markets. Of course, there will always be risk for many sorts of trades, but most risk that can be anticipated can be measured. Nobody has any idea what will trigger the next “flash crash” but it will happen and when it does, the results are likely to be terrifying.

          Alas, it’s difficult for me to state my support for a financial services tax; I guard my privacy here as much to avoid heat from my employers for expressing opinions they don’t like as I do to avoid some juvenile pranks from OSA. Openly supporting a financial transaction tax or a steep rise in the corporate income tax rate offset by credits for hiring larger numbers of lower-class and middle-class workers and for giving raises to the ones you already have (which would stimulate consumer spending and grow the economy far faster but would come at a one-time short-term hit to the markets) would be a career-limiting move on my part.

          • Missionary Kid

            Thanks. My degree was in Econ., and I agree.
            The problem you face is determining when something like that may occur.

            The problem with Wall Street is that there’s not too much incentive for looking for long term profits IMO. Warren Buffett has built his whole business model on it, but everyone else seems to want to play gunslinger and wants the profits now.

      • Truthiwant

        John, please write a book. I think many people could benefit from your wisdom.

  • May_West

    43. Says there are levels to OT XII.
    145. Talks about identities “TZA” and others not found elsewhere in the doc. ????

  • California

    Curioser and curioser…… I am looking forward to the next e-mail about the other legal matter that Tony is referencing…..

    • BuryTheNuts2

      Me too!

    • I’m in constant refresh mode.

  • “On January 9, 2009, Hunter sounded excited in an e-mail about the prospect of bringing in two “fat cat” clients: “We have two fat cat clients who could easily bring in over $500 Million each so we’re not really wanting more small clients.”

    hmmmm, anybody have any idea who these people where?

    • John P.

      This sounds like two low-grade scammers deluding themselves. They probably looked at the net worth they thought these two guys had and assumed they had a shot at getting it all. In looking at known Scientology whales, it might be Baybak and Duggan, and maybe Sky Dayton (who seems to have a low profile lately). I don’t know Baybak at all, and I know Duggan by reputation and Dayton from shaking hands with him at events a couple of times. But I can be fairly certain that Duggan and Dayton wouldn’t throw $500 million at any venture investment, even if they were absolutely certain that it would be the next Google, Apple, Facebook or (insert legendary Silicon Valley or biotech startup success story here).

      The only problem is that anybody with that kind of money knows any legitimate venture-backed startup can’t take in significant cash and use it effectively. Venture capitalists invest a million here, two million there. Startups start small and when they have proven they can use the money effectively, they get a little bit more at a time. This is as true of out-of-the-park home runs like Google or Facebook as it is of smaller companies. For one thing, efficiently using investors’ funds means management has to give up a lot less of their ownership of the company, since smaller rounds are less risky for the investors.

  • monkeyknickers

    I honestly don’t get this. Someone ‘splain? (Use small words)

    • Douglas D. Douglas

      I will try.

      Retired schoolteacher and son (Bee and Bagley) were persuaded by nice couple (the Hunters) to invest in a fabulous, can’t-miss company called PMI.

      The company failed, the investment was lost, and Bee and Bagley have come to the realization that the whole thing was a scam being run by Scientologists to extract money for the CoS.

      The Hunters blame it all on Christopher Hales, a PMI executive who is already conveniently serving a prison term for fraud. The Hunters claim that they actually tried to HELP Bee and Bagley. The Hunters claim that they themselves are VICTIMS of Hales.

      As good Scientologists, the Hunters have taken someone else’s money, failed spectacularly, and are now busy blaming others.

      Bee and Bagley, meanwhile, just want their money back, so they are suing.

      Lawsuit has created a number of interesting and lengthy documents being shared here today.

      Hope this helps.

      • Thank you! …thinking on a monday is hard and does not happen for me until tuesday

      • monkeyknickers

        Yes, thanks! But didn’t it say the Hunters had never met B & B, or spoke to them even?

        Who are exactly are all those middlemen?

        • aquaclara

          Mrs. says that she had not. However, hubby Hunter was involved in the presentation to B&B. The middlemen are business partners and associates in various ways. This is where it gets complicated. And they are Scilons.

          • TheHoleDoesNotExist

            And they are Scilons! When it comes to scientology fraud, it is Always complicated. Here’s a few tips:

            1) Pay close attention to the Adverbs. Artful lying always includes detailed adverbs. Ambiguous verbs are favored as well. Sometimes if you spot an unusual pronoun usage, check it against the Time tense of the sentence and you will find it doesn’t match up.

            2) Use a spreadsheet to keep a list of Addresses used, but don’t list by Name, whether name of Individual, Officers, Owners, or Business. and don’t separate Business vs. Residential. Scientologists use either cheap Post Office box addresses or more often their homes as business addresses. They swap titles of Pres, VP, Secy, Treasurer, etc simultaneously with their collective home addresses. To complicate further, they set up shadow businesses in name only, and usually juggling no less than 3 business names at one time. When it comes time for annual refiling, all these pieces get shuffled, sort of like musical chairs. You definitely need charts for keeping track.
            3) Any of the sites that include employment and/or education history. I can spot a scientology on one of these in 10 seconds flat. Look for businesses not named, large gaps in timeline, odd position titles and/or education not matching positions. Also, references are another clue, although usually simply absent.

            • aquaclara

              You’re a treasure trove of good info today, THDNE! Your radar is working quite well, vastly better than mine.
              I’ve only noted a couple of things: websites or flyers with a large number of too- good- to- be- true testimonials, since Scilons have had so much experience in doing overly fluffed-up and fake write-ups. A small set of business types keeps showing up over and over again, then with that scent of scam somewhere nearby.

      • aquaclara

        Lovely summation, sir. And may i further add that there is a hierarchy of loosely-defined companies and an interconnected set of owners attached to this. Fraud not pertaining to Bee and Bagley has already been found at the bottom rung of the string of companies, which is why Chris Hale is in prison. Oh, and the business colleagues run Scientology in Utah, or at least Salt Lake City. A handful also appear to side in California.
        There is also a reference or claim in the suit about money flowing upstream to the church.

  • Missionary Kid

    Off topic, but fun. Go to http://www.r2d2translator.com/ and type in Scientology. It makes as much sense there as it does in real life.

  • Douglas D. Douglas

    As much as I want to feel some compassion for the Hunters (the Scientology couple who have lost their home and possessions in the failure of PMI), I cannot help but be reminded of the old saying: You lie down with dogs, you get up with fleas.

    I imagine that the Hunters were, indeed, just as taken in by Christopher Hales as Bee and Bagley. Difference, of course, is that they had to know that the ultimate purpose of the whole scheme was to GET MORE MONEY for CoS, not create fabulous returns for a retired school teacher and her son. Lousy wogs deserve what they get, right?

    Ah, but what a different tune it is when the conflagration reverses itself and its your own house that goes up in flames. Suddenly, the Hunters are shocked, SHOCKED to find that there is gambling going on. And in typical CoS fashion it is ALL SOMEBODY ELSE’S FAULT. Dang SPs. Dang Third Parties. Dang Overts. Dang them. Dang them all.

    • Missionary Kid

      In Co$,

      Rrule 1 is, it’s never COB’s fault.

      Rule 2 is, it’s never Co$’s fault.
      Rule 3 is, it’s always wogworld’s fault.
      Rule 4 is, it’s always your fault because you played by wogworld’s rules.

      • I hear the “wayne’s world” theme, except its “WOG WORLD, WOG WORLD”

        • Missionary Kid

          That goes into my “Smartass Comments” file. Thanks.

    • Douglas D. Douglas

      New info confirms instinct here. The Hunters are leeches. Creepy leeches who will likely end up under the bus. So sad. So very, very sad. My avatar will weep for them… some day.

      • Observer

        Who *is* your avatar?

        • Douglas D. Douglas

          If you have to ask…

          • Observer

            Sigh … If I may quote my avatar and namesake, Observer, “I’m not *that* omniscient!”

            • Douglas D. Douglas

              Shortly after I stopped lurking and started posting, someone “outed” my avatar, and asked if it was “really” me. Alas, no.

              VMH, lii.

            • DodoTheLaser

              Haha! It was me “outing” your avy on that fun live bloggin’ night.

              You replied you just really, really like the hair. LOL

            • Douglas D. Douglas

              You’re the one! Yes indeed. Good eye.

              And the hair… great, no?

            • DodoTheLaser

              The hair is very fine, indeed!

            • Observer

              I’m still in the dark. Maybe I’ve read enough Hubbard that my IQ has dropped. 🙁

            • Douglas D. Douglas

              Ask the Dodo…

            • DodoTheLaser

              It’s a pic of some scio dude from the old Volunteer Minister’s Handbook, Observer.

              Ever seen one of those? The pics were taken by LRH and…

              Well, you have to see it to believe it.

              [IMG]http://i39.tinypic.com/332m8w7.jpg[/IMG]

              [IMG]http://i44.tinypic.com/4rqhih.jpg[/IMG]

            • Observer

              Thanks! No, I hadn’t seen those pics–hilariously cheesy! I particularly like the overly dramatic black eye on the unconscious kid in front of the “Mini Mart”. I bet he’s picking up some engrams, all right.

  • PreferToBeAnon2

    A little bit of tech help needed here… Disqus used to have a little notice when comments are added and then you can click right to them. That seems to have disappeared. For me to keep up now I have to scroll thru everything. The time stamp of when a comment is posted doesn’t help as usually that is wrong. Has anyone found a better way other an email notification?

    • Disqus for me usually does but sometimes does not give me the new-message bars at top and/or bottom.

    • Observer

      I have an eternal new comment notification. Seriously, it’s been there since December. It will occasionally disappear for a few minutes, but never longer. I know I have been replied to only if it shows 2 or more new notifications. And then there are days where they don’t show up for hours.

  • The “insuresuite” scam in Glendale California tried to keep the money they conned off me.
    Supposedly these scientologists had a great on-line insurance brokerage that was going to IPO ‘any day now’ and were selling friends and family stock shares. I think it was that I found out that they were selling many more of these F&F shares than they had reported in their filings, and I demanded my money back. They said no. I had had it with this scam crap. I said I’d sue. They, (tony durso) said you can’t, we are all scientologists. I said fuck that, if you don’t give me my money back I will sue you for fraud anyway.

    They cut a cashier’s check, with interest within hours.

    This kind of fraud is rampant and is just scattered mimicry of the larger fraud of Scientology.

    • TheHoleDoesNotExist

      We were all scammed at one time or another, Michael.

      How else can scientologists get their hands on over $450,000 to finance their bridge? Even when it cost less, $250,000 range, how many people can get a legit loan for that amount, and for scientology woo? Answer: 1%. And who are the 1% of The Scientology Woo Club? The same whales who have been around long enough to Know there is no such thing an an OT and whose names we now see popping up in lawsuit after lawsuit (the ones who haven’t got caught yet).

      The whales are the Pimps of scientology addicts. They are the Loan Sharks in the scientology bait pool. They are the White Collars of the Criminal Suits. They are the Pied Pipers of the Scientology Scam.

      In short, they are the Ideal Scientologist and they have the trophies to prove it.
      If it’s not fraud, it’s not scientology.

      • What is interesting is that the ‘regges’ know all about these scams. They hear from the perps and the victims and sometimes are both perps and victims.

        It used to be “if it’s not fun, it’s not scientology”

        The truth is better stated as you said it:

        “If it’s not fraud, it’s not scientology”

        I was ripped off too many times. I saw it happen with my friends. I saw it happen casually when someone got in to trouble with a debt and ran behind the “neh neh, you can’t sue a fellow scientologist” defense. I just got fed up. It helped boot me out.

        • TheHoleDoesNotExist

          I truly am sorry for your experiences. Of course the regges know. I was scammed too, but just once and just for a little. I got by with only a few folders, a very few thousand bucks, and yet made it to OT 5 (then quickly took Stage Left to the Exit). I wasn’t brighter than anyone else. I just wasn’t a very good liar. Scientology Scam Incorporated has really grown over the decades though. The average member would Not be indebted to anyone for hundreds of thousands. But then again, the average members seem long gone.

      • Still_On_Your_Side

        The biggest scam perpetrated by the cult is against its members. If it were a legitimate church (or, more accurately, if it were a legitimate business), it would pay its staff a living wage, and not demand the sacrifice of children, families, education, careers, and so on. Yes, it seems to be a scam to demand $250k to $500k for the bridge, but how much money have members actually paid? The failure of the cult to pay SO members and staff (aside from the ten cents an hour that has been documented), has meant that these individuals are losing hundreds of thousands of dollars over decades. It also means that these members, in all probability, have no health or dental insurance and any health problem will go unattended until it blows up to a catastrophic health crisis that either bankrupts the individual, kills him/her, or, if they are lucky, is paid for by welfare. In addition, these members will have little or no social security or other retirement benefits, thus forcing them to depend on welfare if they ever retire. How successful is a church that spends billions on buildings, and forces its staff to seek welfare? Intimidation has prevented members from filing complaints with state or federal labor departments. In the Headley’s case, the cult convinced the court that the couple was performing ministerial functions, and therefore wage and hour laws did not apply. The first case to crack that nonsense will cause a tidal wave of harm against the cult. Not only will Miscavige be forced to pay fines and back wages, but welfare agencies may seek reimbursement for money they have paid to allow cult members to eat, have a roof over their heads, and be cared for by doctors.

        Perhaps that case will happen when the cult rents out the Idle Orgs for banquets, (like it is doing in Israel), and cult members are required to be wait-staff and clean-up crew. There is nothing ministerial about a rented banquet hall. Or perhaps, finally, a state will prosecute the cult for violations of child labor laws, and an audit of the cult’s employment records will demonstrate the slave labor “wages” the cult pays for functions that are clearly not ministerial.

        Finally, if the cult has defended itself so far against wage claims by asserting the ministerial defense, (and has used that defense in Laura’s lawsuit), then shouldn’t anyone subject to the ministerial defense be identified as “Rev.?” Wouldn’t that mean Rev. Miscavige has the same title as every other minister in the cult? I bet he would not like that idea one bit. Also, shouldn’t even those who have escaped be entitled to be called Rev., i.e., Rev. TheHoleDoesNotExist? Does the SP declare state that an individual is not entitled to be called Reverend? Miscavige (Pouw) loves to call escapees “bitter, defrocked apostates,” but, to my knowledge, the SP declares make no mention of the Reverend title, or even use the word “defrock.” Moreover, isn’t it the case that most escapees have no SP Declare? So, escapees, who have lost years of their lives, as well as millions of dollars, should feel free to identify themselves as Rev. for as long as Miscavige and the cult insist that the theft of years and money, and slave labor conditions, are justified because members are “ministers.”

    • John P.

      Congratulations on getting your money out of Insuresuite. That’s another business founded by the now bankrupt Richie Acunto, Patronius Gluteus Maximus and proud owner of a gaudy trophy which presumably adorns his new residence, which is rumored to be a van down by the river. I would suspect that the rumors of an Insuresuite IPO were rife in 1999, when just about any heap of malfunctioning rubble could go public by announcing they had an internet strategy. So good on you to have strongarmed your way into saving yourself.

      Incidentally, I don’t think they filed for any sort of IPO, since there appear to be no SEC filings under the name “Insuresuite” in a database that goes back to 1994, which happens to match the dawn of the Internet era.

      • They said that they had filed, and were in the ‘due diligence’ phase. And I observed that they were doing multiple rounds of F&F sales at different rates. I figured, knowing that I was ignorant of most financial goings-on, that surely any firm doing due diligence would realize that a lot of stock was being sold out from under even before the IPO.

        But that was only for about $2k.

        I do think it was 1999.

        I had gone through the ELNK IPO as an employee with options. I wound up being regged out of them by the cult. I transfered them directly to their brokerage account without selling them, they sold them and credited my cult services account, or IAS or whatever with the value they realized. It was over about $150K worth of options over 1997-1998-1999.

        Thanks for the congrats. I just wish I had wised up earlier to the whole thing. I might still have my house or some retirement cushion.

        • John P.

          Michael, it is interesting that they were in the “due diligence” phase. That is typically done by the investment bankers as part of the preparation of the initial S-1 filing. The bankers are doing their due diligence before committing to do the offering. That typically involves talking to customers, the accountants, looking over lots of financial documents, etc. It is not as thorough as the examination of records that auditors are supposed to do on the books, but a reputable brokerage firm will bail immediately if there’s something that doesn’t quite line up on a due diligence check; it is all about protecting the brokers on the deal, not (directly) about protecting the investors who might buy the stock later. The word will eventually get out on Wall Street that one of your deal managers walked away from the deal, and you’ll have a tough time getting an IPO done if people know somebody else thought the deal was hinky.

          It is not clear to me that simply having a lot of F&F shares out would kill the deal. Suppose they thought they could go public at a $400 million valuation, and had 20 million shares out, issuing another 3 million in the deal. They could have issued, say 500k F&F shares without diluting the deal excessively. If, on the other hand, they issued 6 million of the 20 million outstanding shares in the 4 months before the IPO due diligence, if I were working on the deal, I’d wonder why they needed so much cash right before an IPO, and I’d probably raise holy hell to my commitment committee, even if I couldn’t figure out why they were doing it. Loading up the employee option pool sometimes happened right before an IPO back in the day, but it would also have been an enormous red flag if the management option pool increased substantially right before an IPO because you really want the management team to have had long-term incentives to grow the business,, rather than just awarding themselves a big pot of stock in case the IPO goes well.

    • DodoTheLaser

      “..scattered mimicry of the larger fraud of Scientology.”

      Now, now Michael! It’s a lower harmonics of the bigger postulate of Scientology.
      (Channeling OTVIIIisGrreat!)

      • what’s that you say? “It’s a lower and inadequate humm job in comparison to the spiritual ass rape of scientology”? Is that what I heard?

        • Sorry my blood sarcasm level is a bit high today. Need to take a walk.

          • DodoTheLaser

            No problem, I hear you Michael.

  • TheHoleDoesNotExist

    There’s a scientologist, Kimberly Champlin Hunter, with photo of a livin’ large estate, but in Bethlehem, New Hampshire? A bit confused. Is this a second home (estate is a better word) of the Hunter’s? Is this the same? I had wondered where the name Champlin fit in. Seems to be the same Kimberly as she has photos of her volunteer minister photo ops in the same areas as she mentions in her submitted letter. I guess Kim has been too busy clay demo’ing Moar and must have missed the whole Madoff saga. Too bad. She could have still afford to buy a clue.

    https://www.facebook.com/kimberly.c.hunter/friends

    [IMG]http://i42.tinypic.com/161x0fp.jpg[/IMG]

    • PreferToBeAnon2

      THDNE, you are quite the Sherlock Holmes today!

      • TheHoleDoesNotExist

        Being confined to bed, with a tablet.

        • Sherbet

          Are you OK, TH?

          • Midwest Mom

            Confined by illness or handcuffs?

            • Sherbet

              For a good Cath’lic gal, you have a naughty side, Mom.

            • Midwest Mom

              Perhaps that’s how her hubby keeps her from eating carbs when she’s craving my homemade oatmeal raisin cookies, coconut cake with cream cheese filling or warm, crusty french bread with preserves.

            • Sherbet

              Mean and cruel, that’s what you are.

            • Midwest Mom

              BONK! “Ouch!” Thud! zzzzzzzzz………………..

            • Midwest Mom

              http://www.soulfulspoon.com/2013/01/happy-birthday-coconut-cream-cake-low.html#.UYhl9qLBOJc

              Look what I found for you! A coconut creme cake recipe that is low carb (and gluten free)!

            • Douglas D. Douglas

              Excuse me. Need to head into the kitchen now. And thanks a lot!

            • TheHoleDoesNotExist

              Ok, I’m changing my vote. Naughty Mom!

            • Observer

              *weeps in despair for all the coconut cakes with cream cheese filling that I have never tasted*

            • *grabby hands*

            • ParticleMom

              I’m 5 months gluten-free…oh, how I miss warm, crusty french bread…

            • Midwest Mom

              Aren’t you glad that they sell gluten free flour for baking? I’ve experimented with a few different brands and there is a good selection even in my small town. 🙂 Yay for you!

            • ParticleMom

              Thanks, I’ll try it! I am very grateful that there are so many options these days, including flours. So far I have only found one bread recipe I like: http://gfrealfood.com/2010/06/08/gluten-free-cheesy-hamburger-buns/
              Giving up gluten was easier than expected and completely worth it. I do dream of good bread, though 🙂

            • TheHoleDoesNotExist

              You don’t know Cath’lic gals! lol

            • Sherbet

              Hey, I’m one, too, TH!

            • TheHoleDoesNotExist

              Yes and no. Not ill, just simply a chronic condition. Handcuffs, yes. Some call it health insurance. I’m okay, I just have to give up the notion of being young and active. But I still have WiFi, so life is good.

            • aquaclara

              And you have the Bunker! Love your comments and insights! So much to look at, analyze, cheer, jeer AND snark upon….with no signs of it letting up. Hope you feel better.

            • Midwest Mom

              I concur with that sentiment! I hope you start to feel better very soon and are able to Go-Go dance without any pain!

              I hope your hubby is spoiling you like you deserve while you are bed ridden! 😉

    • TonyOrtega

      That’s them.

      • TheHoleDoesNotExist

        thanks.

    • Midwest Mom

      Holie, you are on fire today! Look at Barry’s “Linked-In” profile. Don’t choke – Barry’s a Fundraiser at Hunter Champlin! He “loves to help entrepreneurs raise investment capitol for worthwhile projects”.

      http://www.linkedin.com/pub/barry-hunter/2a/948/5a2

      • John P.

        Nice catch! Clever move to become an independent investment fundraiser, since they’re not subject to the IA ’40 act (Investment Advisers Act of 1940) and thus are not subject to SEC jurisdiction. He gets his 10% while the marks go down in flames. Sounds just like Jeff Pomerantz, Michael Chan and the other Scientology “FSM Regs” that travel around the country hosting those stupid events.

      • aquaclara

        and no mention of that inn-keeping job on here. Just something about passing an aesthetician test?

    • Midwest Mom
      • TheHoleDoesNotExist

        Thanks, MM! This makes sense now. Still, I’d check the silverware to see if anything is missing!

      • Lurkness

        Adair Country Inn and Restaurant. Posting name so guests/customers informed who they are patronizing.

    • Douglas D. Douglas

      Snakes. Weasels. Other disagreeable animals. Take your pick.

    • N G

      This seems like it would be good info for Bee, Bagley and Scofield to look into – it looks like Kimberly is not as down and out as she makes herself out to be. How can we get this info to them?

  • dagobarbz

    Nobody whines like a Scientologist when things aren’t going their way! All that “humanitarian” volunteering sounds great, unless you know about the Volunteer Minister scam.

    • But the fact that she has brought this information before the court makes it territory that opposing counsel can mine to challenge her credibility.

      • dagobarbz

        True that! And this is where we shall see the difference between older court cases. There was a time when claims of “helping people off drugs” and going to disaster areas in yellow jackets to hand out pamphlets went unchallenged, because the lawyers were basically ignorant of Scientology’s front group tentacles.

        These days, there is absolutely no excuse for an uninformed lawyer. And when your side is armed with solid information and dox, we see judges develop a greater understanding of Scientology’s slithery tricks in court. And we get precedent rulings, like the judge in Anon Sparrow’s case who ruled that policy letters do not equal religious doctrine. And so, all of Ron’s nasty little notes about SPs and their approved care and feeding got before the judge. Hah! Hah! Hah! Petard, they were hoisted on their own.

  • I haven’t had time to review all of the attachments but the fact that Barry Hunter admits knowing about the fraud in late 2009 and apparently did not have contact with the FBI until after Chris Hales’ arrest in 2010 certainly raises the question – “What was he waiting for?”

    • Douglas D. Douglas

      He was apparently waiting for the house to fall down. It’s like the guy who won’t fix the leak because it’s raining outside, then doesn’t see the need when the sun is shining. Eventually, it will fall down. And the Scientology twist: it’s always someone else’s fault.

  • Legalese ..ugh ..but i understand what a ponzi scheme is .Hello scientology .

  • mook

    new blog re: Scientology Celebs that contains some explosive new info
    http://scientologycelebrity.wordpress.com/about/

    • TonyOrtega

      “Some of us were implanted into the Sea Org by Anonymous after 2008.” I call bullshit.

      • mook

        sounds like a disgruntled ex-CoS celeb who wants to remain anonymous, not Anonymous themselves…

        • TonyOrtega

          Celeb? Nah. Just an ex who likes to spread rumors based on tabloid stuff, looks like.

          • sugarplumfairy

            Yah.. Might even be a never in.. Some of the stuff he’s posted is really ugly..

            • Douglas D. Douglas

              Oh yeah. Like: Tom Cruise is short and impotent, but he’s sure not gay!

          • Douglas D. Douglas

            Seriously, I think it’s a trolling site that hopes to harvest info by getting people on their comment threads. It’s too ridiculous. It’s like a parody of a hate site.

    • Douglas D. Douglas

      Oh brother. What an AMAZING blog, filled with so much well-written information about how, you know, really NASTY those Scientologists are. I must go RIGHT OVER THERE and get registered on their discussion boards and get everyone here to do the same so that the good folks who created this gnarly, gnarly EXPOSE of Scientology (implanted beings, every one!) can have access to our personal information and know who we really are….

  • Snippy_X

    Love the list of front groups named in the complaint. Reformatted it and cross posted it to WWP:
    https://whyweprotest.net/community/threads/big-list-of-cos-front-groups.45298/page-2

    Unlike COB, some Mormons are actually college educated. Some are even psychiatrists. The scheme was flawed from the outset.

    • DeElizabethan

      Super, Snippy_X! Happy you posted that!

      • Snippy_X

        Aren’t these lawsuits fun? We may need a round robin again to pick the lawsuit that exposes the most damaging of their evil little secrets.

        • DeElizabethan

          Fun and Effective, Yes!

          • Snippy_X

            I don’t mean to imply it is fun for the victims, of course, but that’s where the justice comes in, after all these years.

    • Douglas D. Douglas

      Thank you! PDFs are the bane of the internet!

    • TheHoleDoesNotExist

      Thanks…that is quite a handy list!

  • DeElizabethan

    This is really NICE!
    On the Bee Bagley Amended Complaint.
    #53 “… are only some of the entities known to have been either created by or for direct benefit of the CofS.”
    I counted 103 and 10 links here. WOW good info.

  • I was looking at the list of lawsuits and wondering, in all of his years of reporting on Scientology, do think Tony could ever have predicted a year like this one is turning out to be for the “Church”? Lawsuits on every front, members sneaking out in droves, the New York Times best sellers list populated by Scientology exposes.

    • TonyOrtega

      Actually, um, yeah. One of the reasons I became interested in writing daily about the church a couple of years ago was that so many fault lines were beginning to show up at one time — Anonymous, the indie movement, Rathbun & Rinder speaking out, the way the Internet was changing media, and other elements that suggested Scientology was heading for some kind of reckoning, as Larry put it recently. The church brought a lot of this upon itself, and it doesn’t seem to be slowing down, does it?

      • DeElizabethan

        Slowing down? Hell no. Yea Tony O!

      • aquaclara

        There hasn’t been a quiet week all year, let alone a quiet day. It’s incredible how much information and how many ideas are making it to the forefront, and with that, the ability for exes to be able to speak up.
        When the walls all come down, there will be yet more stories that will need to come out – about the scams, the harmful acts, the secrets and the damage done to so many. The book and the movie that will come out will be the “All the President’s Men” of today, with an intrepid journalist/blogger/investigative reporter known as Ortega.
        This will be fun.

        • I’m going back to my obnoxious comic book collector youth on that day. FIRST DAY! FIRST SHOWING! Waiting in line, glaring at anyone who even thinks about cutting in front of me.

        • TheHoleDoesNotExist

          I vote Russell Crowe to play Tony

          • sugarplumfairy

            Or Clooney.. He looks hot with a beard..

            • BuryTheNuts2

              Oh yeah….That is what just ran through my head!

          • And Tom Cruise to play David Miscavige! err. wait…

          • And Tom Cruise to play David Miscavige! err. wait…

      • Quite the contrary, it appears to be picking up steam. I can’t wait to see what the rest of this year brings (although, I sincerely hope that by next year there’s nothing left to talk about but how the people freed from the Hole are picking up the pieces.)

  • TheHoleDoesNotExist

    It appears this certainly was Not the Hunters’ first bankruptcy. Here’s an SEC report on Barry Don Hunter, via a FINRA Broker search. Barry officially claimed their 9/19/2003 filing was all his wife’s fault: (his caps)

    “MY WIFE AND I FILED PERSONAL BANKRUPTCY IN 2003 AFTER SHE HAD INCURRED CONSIDERABLE DEBT IN A PREVIOUS MARRAIGE AND DIVORCE.”

    Well, late in 2002 Kimberly at the very least had to have shelled out over $12,000 to scientology for her Flag “Havingness Rundown” (lol, that means $6500 – 8,000 Minimum) and also is listed as a Sponsor for Total Freedom (lol again) which means $5,000. And if they had family enrolled in Delphi Schools, that costs big.

    http://www.truthaboutscientology.com/stats/by-name/k/kimberly-hunter.html

    It lists his claims of how much time he put into the now defunct? Hunter Chamblin, then the Portfolio biz, and that it in no way (honest!) was a conflict problem for him as a broker. I know nothing about licensing for brokers, although he appears to not be licensed since 2007. I can’t help wonder if this licensing industry is similar to the Narconon licensing loopholes.

    http://www.adviserinfo.sec.gov/IAPD/Support/ReportViewer.aspx?indvl_pk=5255973

    • John P.

      I know the odd thing or two about FINRA broker registration, believe me. When you are a registered representative of a securities dealer (i.e., brokerage firm) you are required to register then people that have any customer contact are required to get a whole series of licenses. Before I went on to the hedge fund side, I had a list of license numbers as long as your arm. In order to ensure public trust in the markets, the government says that each registered person has to disclose anything about their past that might make you a risk to do business with. In particular, that you might be susceptible to embezzlement, taking money from customer accounts, or all sorts of crimes.

      As part of that disclosure, you have to list bankruptcies, foreclosures, legal judgments, civil suits (resolved or unresolved, where you paid money to settle or whether you won), tax liens, and all sorts of other information on your financial dealings. You also have to disclose not only criminal convictions, but also arrests — that is a much higher standard than most criminal background checks require you to disclose.

      The Feds do not do an investigation of their own on you — they sit on the information. But if you are later found out to have lied about any of that stuff, they will bar you from the securities business, often for life, but in almost all cases for at least a couple of years. As a practical matter, there are so many people with clean records who want to work in the business that a one-year bar might as well be the kiss of death.

      Sometimes, pissing off an employer is dangerous. If they really don’t like you, some particularly vindictive large firms will do a background check on you and if they find any misrepresentations on your Form U-4, they turn that over to the SEC right before they fire you, and then they stand back and let the SEC do the dirty work of barring you for life. Then they don’t have to pay you any bonuses accrued under a standard “at will” termination.

      This is not a system riddled with loopholes like the licensing of Narconon facilities. Firms are subject to large penalties if they don’t report adverse information on individuals working at those firms to the SEC, so firms have a large incentive to sell you down the river. The SEC tends to enjoy barring and fining people for violation of the registration rules, which is way easier than taking on JP Morgan or Goldman Sachs for ruining the economy. License exams (Barry had a Series 65) can sometimes be difficult, but their purpose is not to teach you how to do the job; it’s like any other government license exam, designed to show that you know a certain minimum amount that separates you from the Neanderthals. Some of these exams, however, have a pass rate below 50%, which says that they are effective at keeping a certain percentage of troglodytes out of the business.

      I took a quick glance at Barry’s BrokerCheck to see if there is any other strangeness that would be worth commenting on. There’s not. It is of interest that the firm PMI was registered in 2007 as an investment adviser, which means they’re subject to SEC jurisdiction. I am not sure, however, that fraud among the firm’s investors would lead to SEC action, since the SEC is nominally supposed to be focused on protecting the public markets; the PMI fraud apparently never got far enough to take in public funds to invest, they were only ripping off people investing in the company, a different thing entirely.

      • TheHoleDoesNotExist

        Whoop! Thanks for a peek into this world. Sad to say I have run into one too many retired Vets (the real ones, not scientology members) who are falling for day trading scams and have wondered about the whole licensing issues.

        I was curious there were no licenses listed for Barry since 2007. So, he didn’t need an SEC sanctioned license for the PMI biz, then? I’m trying to wrap my brain around dealing with Millions of other peoples’ money investments and not needing any kind of license?

        • John P.

          The BrokerCheck report reveals that Barry did have an SEC registration and one license (a Series 65, the basic license for an Investment Adviser Representative) and the firm itself was registered via a SEC Form ADV. Both lapsed in 2007.

          I am going to guess here that they let the IA registration lapse when they apparently decided that the business was not going to be about investing customer funds in the FX markets but about selling software where people could make their own decisions. I am keying off Tony’s statement in the text of the story that “The hook for unsuspecting investors — such as Bee and Bagley — Scofield claims, was that PMI would be sold as a set of servers running advanced software that could predict fluctuations in foreign currencies.” That would get you out from under the registration provisions of the IA ’40 act, though one might somehow be considered to be an “investment newsletter” because you’re disseminating stock picks. Newsletters have some SEC oversight but a lot less than either Investment Advisers or broker/dealers.

          So PMI may have run out of money to continue the IA registration, which costs at least a couple grand per year, or they may have hoped to get out from under SEC jurisdiction. The truth of that would be something that would come out in discovery and trial; I’m just taking a SWAG.

          • TheHoleDoesNotExist

            Thanks, again. This is getting very interesting. I don’t have a license, either, but I’m taking a hard look at popcorn stocks.

            • Midwest Mom

              Psssst…don’t forget to also invest in dental floss. P&G or Colgate-Palmolive. I was waiting for P&G to drop more, but it doesn’t look like it will drop dramatically any time soon. Colgate-Palmolive has a larger share of the market, but its shares are more than what I want to pay. Argh!

            • TheHoleDoesNotExist

              and T.P. stocks! For every scientologist who leaves, another truckload of toilet paper is purchased.

            • Sandy

              Um … as far as I know, P&G STILL do animal testing. Please check B4 you support them …

    • stanrogers

      Would that not be more of a “Used-to-havingness Rundown” or a “Not-having-any-longerness Rundown”? Or perhaps a “Havingness Run-out”? You _do_ go in with more Havingness than you leave with…

  • LemonLemon

    Looking at that first plead from Hunter to block the lawsuit. She talks about how she was a volunteer for this or that organization as if that would prove her involvement wasn’t fraudulant. “Oh wait, you were a volunteer all your life? Ohhh well never mind then. You couldn’t possibly do anything fraudulant”. ::rolling eyes:: More flawed scientology logic.

    Loved the bit about trying to get the Mormons involved. Strength in numbers, right scientology? Also, the Mormons probably aren’t hemorrhaging money right now.

    Speaking of the Mormons and scientology, has anyone seen this? Apparently Trey Parker & Matt Stone, who created “Book of Mormon” are now planning to do a similar show about scientology:

    http://www.youtube.com/watch?v=pnQZszRUMf0&list=PL8kma_GjQgWxU208dSM-GcEaq06QlafPo

    • TonyOrtega

      Still no confirmation on this. They’re just relying on the same rumor from ContactMusic from a month ago. Would love for this to be true, but so far no evidence that it is.

      • LemonLemon

        Oh…darn. Okay well, if it does come to fruition, I’ll be the first in line for tickets. If anyone could do it justice, it’s those two knuckleheads 🙂

        • 1subgenius

          This ain’t gonna happen. Nohow, noway.

          • LemonLemon

            I wouldn’t say there’s no chance. Those two can work out the logistics. It’s a wait & see for now.

            • 1subgenius

              Its not logistics, but enjoy your wait.

        • sugarplumfairy

          I’d be right behind you in line..

    • Ze Moo

      A lot of entertainment ‘news’ outlets have used this story in the last 2 months. Wishful thinking….I don’t see enough of an audience to do a broadway musical, another 30 minute TV subjecting CO$ and TC to the laughter would be very easy to do. We’ll find out in the fall when South Park comes back.

      • L. Wrong Hubturd

        Wishful thinking it may be, but to say there’s not enough of an audience. Balderdash! Do you know how far in advance the B.O.M. is sold out in NYC? Matt and Trey have an enormous following just waiting for their next brilliant endeavor.

        BTW, BOM is laugh-out-loud funny from beginning to end! Front row, balcony last May.

  • So, given the scientology hubbard scribed dictum: “a scientologist cannot sue a scientologist”, they have to go through the ethics and justice procedures, (now usually, they are forced into going through WISE, since the scam of scientology doesn’t want to be a party to legal actions, at least not directly), it used to be that NO ONE in scientology went ‘legal’ because they risked expulsion, disconnection, loss of eternity, (LOL), etc.

    But now look! Here are lawsuits and lawsuits and lawsuits. More and more courts are being pulled into the sordid financial affairs of even lower level scientologists.

    I read that as the programming starting to break down among scientologists on a broad front. The threat through the ethics and justice people in the cult does not have the weight it used to.

    It’s going to be a feeding frenzy. Too many upper level scientologist con-men have used the rank and file scientology membership as their own private sushi plate. The sushi is biting back.

    • aquaclara

      “The sushi is biting back” Ha, yes! And we just love our seats nearby, as this all comes about. I have to laugh when I hear that a Scilon cannot sue one of their own, yet they can certainly scam each other with no guilt or punishment, as your comments today have noted.
      Thank you for the excellent commentary today.

  • Ruby

    Defendant Tom Burton is currently married to Lorin Burton, the Director of Special Affairs (OSA) of the Santa Barbara Org, Church of Scientology.

  • Ze Moo

    It appears there is one good reason to be a CO$ ‘volunteer minister’. It may help you when sentencing time arrives. If the prosecution is lazy about checking out CO$… The funky yellow t-shirt just isn’t enough reason…

  • Kimberly Hunter should hire a lawyer, even if she thinks she can’t afford it. What a screed she wrote trying to convince the judge she is above the law because she self-reports activities she considers charitable. Any judge is smarter than that.

    • Midwest Mom

      I know. Remember when Jerry Sandusky tried that approach? It also didn’t work for two women in my area who embezzled all of the money from our local Red Cross’s 9/11 fund, who were volunteers for various charitable organizations or for the local professor and department chair who dedicated a lot of time to community volunteerism and while president of the Hiawathaland Boy Scout Council, he molested a teen who was in his boy scout den.

  • Douglas D. Douglas

    Oh my. The Tom Cruise acolytes have started to swarm over at the Hollywood Reporter. One of them called me a “dbag” (sob)…

    http://edit.hollywoodreporter.com/news/oblivion-star-tom-cruise-visit-452225

    • Ze Moo

      TC has a contract with internet trolls to hype and defend him everywhere they can. You and Media_lush properly observed that even with two weeks as the only new movie, it didn’t do that well. It did make enough worldwide to be profitable, but not the great return a different lead actor could have generated. TC’s baggage is going to haunt any thing he does from now on.

    • They’re starting to moderate comments now…. this is my latest effort… I think it might not get posted:

      Here’s a little of @bigshow88 ‘s other comments http://grab.by/miMC

      Is that you Tom? [I know you always had trouble spelling but the cheap shots at your latest ex, … not very ethical… you know, you being the biggest ethical “big-being” on the planet.

      If it’s not you Tom it’s good to know this guy’s got your back [in his roundabout way I think he’s asking for a date]

      • Douglas D. Douglas

        I saw what this guy has been posting. Basic CoS tactics– attack, attack, attack. Nasty comments about Katie Holmes, though. So obvious.

      • Douglas D. Douglas

        I saw what this guy has been posting. Basic CoS tactics– attack, attack, attack. Nasty comments about Katie Holmes, though. So obvious.

      • It didn’t get posted…..

  • Ze Moo

    More lawsuits charging NarCONon with credit card fraud. Three from Georgia and 1 from Oklahoma.

    http://www.wsbradio.com/news/news/crime-law/narconon-patients-allege-credit-card-fraud/nXh9h/

    • TonyOrtega

      No, not lawsuits. The one in Oklahoma was the lawsuit we previously reported. The three in Georgia are part of the investigation being done by the DA there. Will be a while before charges. Just posted our own story.

    • Douglas D. Douglas

      Woo hoo!

  • TonyOrtega

    New story posted.

  • Hubbard’s greed is so inextricably woven into Scientology “church” policy (the same green volumes that Scientology business people utilize, the “WISE” World Institute of Scienotlogy Enterprises),it’s Hubbard’s written script that brought about this recent excess “crim reg” decade under Miscavige.

    Hubbard’s the Scientology movement’s “crim reg” of all time.

    Ron the Crim Reg!

    Danny Sherman ought write a new volume of the Ron Series.

    If there is any lesson, in all this, this all goes back to dear old Ron!

    • L. Wrong Hubturd

      But, but Chuck….he gave us the TECH. I mean come on, he’s not ALL bad, right? Marty, Mike, Karen? Why do I hear crickets every time I mention this to you guys? Grow the fuck up and stop playing games.

  • http://en.wikipedia.org/wiki/Reed_Slatkin Shitbag mother fuck Reed Slatkin already did it for Scientology.

  • svonhatten

    My God! I knew them when I was “in.” This is indeed sad news… 🙁

  • Michael

    This case was thrown out in the court in which it was filed.
    Hales admitted to the courts that he defrauded Bee and Bagley of $244,000 and agreed to pay restitution upon his release from prison.
    The FBI, Postal Inspector General and the HUD Inspector General where all invited to PMI offices and spend two hours filling in holes about Hales. The FBI agent admitted that PMI was investigated during their 6 month long investigation of Christopher Hales and Eric Richardson and found no criminal wrong doing on the part of PMI. Hales is now in Federal prison and Richards served prison time as well. Also all the agents at this meeting were offered to obtain any and all of PMI banking records, e-mails and phone logs if they needed them without subpoena. Scientology like all religions depends on its parishioners for financial support. Its not against the law to run a hedge fund or develop financial software. Scientologists, Mormon, Catholics, Jew and atheists alike are subject to the laws of the land and are open to criminal prosecution if they commit a crime. What I say here is true because I arranged the meeting and was present .

  • Michael

    Also just so your readers know, PMI filed a “red flag” report on Hales to Michael Hines Department of enforcement Utah Division of Securities which Hines then forwarded to the FBI which then led to Hales arrest trial and conviction. This report is available for anyone who want to read it.