STUNNING LEAK: Scientology’s entire asset portfolio the year it got IRS church status

It’s one of those jaw-dropping moments in a jaw-dropping film.

In Alex Gibney’s 2015 HBO documentary Going Clear: Scientology and the Prison of Belief, Marty Rathbun, Scientology’s former top enforcer, explains the stark situation facing the organization and its ultimate leader, David Miscavige, at the end of the 1980s, after decades of the church refusing to pay any taxes and engaging in a war with the IRS.

“We were facing a tax bill of over a billion dollars, and the total assets, liquid and material, and property of the church was about a quarter of that at the time,” Rathbun says. “And so just from a real simple accounting basis, it was life and death. If we don’t get exemption, we die. If we get it, we survive.”

Just two years after that documentary aired, Rathbun made a shocking about-face. Instead of continuing to criticize Miscavige, Rathbun began putting out videos attacking the church’s critics, and Scientology itself began using those videos in its advertising campaigns. In particular, Rathbun went after Going Clear, and denied that he’d ever implied that Scientology owed a billion dollars to the IRS.

But it’s right there on tape, and you can watch it yourself. Rathbun says it very clearly. Scientology was desperate to get a deal worked out with the IRS because it owed a billion dollars and it only had about a fourth of that, or $250 million, in assets.

Now, the Underground Bunker has obtained a stunning document dated June 30, 1993, just a few months before the Church of Scientology finally obtained its objective of tax exempt status.

The document lists Scientology’s total assets in bonds, equities, and cash as of that date.

The total is $251 million, almost exactly what Rathbun said in Going Clear.

We can’t reveal anything about our source other than to say we believe this is an authentic document from inside the church. It not only confirms the amount that Rathbun cited, but it also breaks out and names the bonds and equities and amounts that Scientology was invested in at that time.

It’s a goldmine for Scientology historians.

We know you’re going to want to pore through it in detail. Who knew, for example, that Scientology held about a million dollars in shares of both Coca-Cola and McDonald’s in 1993? This is fun stuff.

Have at it, and let us know what stands out for you…

 
Scientology got tax exemption in October 1993 after two years of negotiations. In that process, Scientology had turned over a lot of information to the IRS. But after the celebration that the war was over and tax exemption had been won, Scientology was secretive about how much it was worth.

However, in 2006, there was a change in the law, and a few years later we realized that Scientology was quietly putting down information about its assets in tax returns it had to submit regarding “other business income.” The result was that by 2011, just two of the organization’s top entities were worth a combined $1.2 billion.

Tax exemption has been very good for Scientology’s portfolio.

 
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Source Code

“The Roman Catholic Church, somewhere along the line, through watching the dramatizations of people, picked up some little fragments of R6, and they make it look like it’s continued forward into present time. But the truth of the matter is that the loyal officers were not all killed. Xenu missed. And they were not all killed. Not by a long way…Somebody, somewhere on this planet, back about 600 BC, found some piece of R6. And I don t know how they found it, either by watching mad men or something, but since that time they have used it and it became what is known as Christianity. The man on the cross. There was no Christ, but the man on the cross is shown as every man so of course each person seeing a crucified man has an immediate feeling of sympathy for this man. Therefore you get many PCs who say they are Christ.” — L. Ron Hubbard, October 3, 1968

 
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Overheard in the FreeZone

“Personally I think that there has been a coordinated effort by certain factions in the Government for reasons of ‘National Security’ to invalidate the state of OT at least publicly and that the Church currently is playing along in this game. It is my opinion that the success of the Remote Viewing Project scared the bejesus out of them and now there is an ongoing effort to put the Genie back in the bottle. But that is my opinion and I can’t prove it. Though what I can pretty much prove is that the Church has now veered away from those abilities covered in the earlier lectures on the State of OT. For instance the original OT IV if run correctly will produce a Thetan Exterior, V and VI give the thetan familiarity with operating outside of the body. Yet these levels are no longer part of the Bridge. Why is that? There is no HCOB or Policy that canceled those levels yet they are no longer considered part of Church doctrine. Omitted levels is a definite out point. One big enough to drive not just a Sherman Tank but a few very large semis through.”

 
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Past is Prologue

1998: Kristi Wachter reported a picket in Palo Alto, California. “I was revenge-picketed today. I returned home to find a lone picketer in front of my apartment building. I snapped a few pictures, then joined him on the sidewalk. I introduced myself, and he said his name was Ben. I asked him what made him think I was a religious bigot, and he said I was acting like one. He said that I didn’t know anything about Scientology and that I hadn’t read any books. I told him that I DID know a fair amount about Scientology and that I HAD read some books – that I’d read a bunch of the tech and admin manuals and that I’d read Dianetics cover to cover. He said ‘You have not!’, but I assured him that I had. Indeed, I told him, I had my copy in my backpack. He mentioned that he’d been a Scientologist for, I believe, 22 years. He called me a ‘silly girl’ and a couple of times made sarcastic comments about how I thought I was being ‘so noble.’ Ben checked his watch a few times and, as soon as he’d put in his time, he took off. I held out my hand, but he declined to shake it. He said he was sure he’d be back; I wished him a good weekend.”

 
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Random Howdy

“I was just watching a documentary about ISIS, and they put out a monthly magazine and annual report (400 pages long) that is way more slick and professional than anything I’ve seen by the unchurch of Lientology. Even the crazy jihadis have their act more together than Scientology.”

 
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Full Court Press: What we’re watching at the Underground Bunker

Criminal prosecutions:
— Danny Masterson charged for raping three women: Demurrer filed by Masterson, arraignment delayed to October 19.
— Jay and Jeff Spina, Medicare fraud: Jay’s sentencing is set for October 5 in White Plains, NY, but asking for a 3-week postponement. Jeffrey’s is set for October 24.
— Hanan and Rizza Islam and other family members, Medi-Cal fraud: Next pretrial conference set for Jan 12 in Los Angeles
— Dennis Nobbe, Medicare fraud, PPP loan fraud: Charged July 29. Bond revoked Sep 14. Nobbe dead, Sep 14.

Civil litigation:
— Luis and Rocio Garcia v. Scientology: Oral arguments were heard on July 30 at the Eleventh Circuit
— Valerie Haney v. Scientology: Forced to ‘religious arbitration.’ Petition for a writ of mandate filed with Cal 2nd Appellate District, Sept 10.
— Chrissie Bixler et al. v. Scientology and Danny Masterson: Oct 5 (Serving Miscavige by publication), Oct 6 (CSI/RTC demurrer against Riales, Masterson demurrer), Oct 26 (motions to compel arbitration)
— Jane Doe v. Scientology (in Miami): Jane Doe dismissed the lawsuit on May 15 after the Clearwater Police dropped their criminal investigation of her allegations.
— Matt and Kathy Feschbach tax debt: Eleventh Circuit ruled on Sept 9 that Feshbachs can’t discharge IRS debt in bankruptcy. Update required in federal lawsuit on Oct 19.
— Brian Statler Sr v. City of Inglewood: Second amended complaint filed, trial set for Nov 9, 2021.
— Author Steve Cannane defamation trial: Trial concluded, awaiting verdict.

 
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Scientology’s celebrities, ‘Ideal Orgs,’ and more!

We’ve been building landing pages about David Miscavige’s favorite playthings, including celebrities and ‘Ideal Orgs,’ and we’re hoping you’ll join in and help us gather as much information as we can about them. Head on over and help us with links and photos and comments.

Scientology’s celebrities, from A to Z! Find your favorite Hubbardite celeb at this index page — or suggest someone to add to the list!

Scientology’s ‘Ideal Orgs,’ from one end of the planet to the other! Help us build up pages about each these worldwide locations!

Scientology’s sneaky front groups, spreading the good news about L. Ron Hubbard while pretending to benefit society!

Scientology Lit: Books reviewed or excerpted in our weekly series. How many have you read?

 
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THE WHOLE TRACK

[ONE year ago] Scientologist removed from L.A. court again after screaming at judge in fraud hearing
[TWO years ago] Jesse Prince talks about the grieving after L. Ron Hubbard’s death — and the partying
[THREE years ago] Rerun Tuesday: ‘Leah Remini’ participants tell us what the series has meant to them
[FOUR years ago] L. Ron Hubbard in exile: When Scientology’s leader ran things while on the lam
[FIVE years ago] ‘Going Clear’ Q&A: Mike Rinder and Sara Goldberg take heat from Scientologists
[SIX years ago] What VICE magazine got wrong about Scientology in the UK
[SEVEN years ago] LIVE FROM TAMPA: The Garcia v. Scientology Federal Fraud Lawsuit Mini-Trial!
[EIGHT years ago] Scientology’s Meltdown: A Story Told in Pictures

 
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Posted by Tony Ortega on October 3, 2020 at 07:00

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