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

[David Miscavige in 1993, and the War Is Over announcement that October]

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.


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


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.”



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.”


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.”


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.


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

[Erika Christensen, Ethan Suplee, and Juliette Lewis]

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?



[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


Scientology disconnection, a reminder

Bernie Headley (1952-2019) did not see his daughter Stephanie in his final 5,667 days.
Valerie Haney has not seen her mother Lynne in 2,078 days.
Katrina Reyes has not seen her mother Yelena in 2,582 days
Sylvia Wagner DeWall has not seen her brother Randy in 2,102 days.
Brian Sheen has not seen his grandson Leo in 1,122 days.
Geoff Levin has not seen his son Collin and daughter Savannah in 1,013 days.
Christie Collbran has not seen her mother Liz King in 4,320 days.
Clarissa Adams has not seen her parents Walter and Irmin Huber in 2,188 days.
Carol Nyburg has not seen her daughter Nancy in 2,962 days.
Jamie Sorrentini Lugli has not seen her father Irving in 3,766 days.
Quailynn McDaniel has not seen her brother Sean in 3,082 days.
Dylan Gill has not seen his father Russell in 11,648 days.
Melissa Paris has not seen her father Jean-Francois in 7,567 days.
Valeska Paris has not seen her brother Raphael in 3,735 days.
Mirriam Francis has not seen her brother Ben in 3,316 days.
Claudio and Renata Lugli have not seen their son Flavio in 3,577 days.
Sara Goldberg has not seen her daughter Ashley in 2,615 days.
Lori Hodgson has not seen her son Jeremy and daughter Jessica in 2,328 days.
Marie Bilheimer has not seen her mother June in 1,853 days.
Charley Updegrove has not seen his son Toby in 1,383 days.
Joe Reaiche has not seen his daughter Alanna Masterson in 5,943 days
Derek Bloch has not seen his father Darren in 3,083 days.
Cindy Plahuta has not seen her daughter Kara in 3,403 days.
Roger Weller has not seen his daughter Alyssa in 8,258 days.
Claire Headley has not seen her mother Gen in 3,377 days.
Ramana Dienes-Browning has not seen her mother Jancis in 1,733 days.
Mike Rinder has not seen his son Benjamin and daughter Taryn in 6,036 days.
Brian Sheen has not seen his daughter Spring in 2,142 days.
Skip Young has not seen his daughters Megan and Alexis in 2,544 days.
Mary Kahn has not seen her son Sammy in 2,416 days.
Lois Reisdorf has not seen her son Craig in 1,999 days.
Phil and Willie Jones have not seen their son Mike and daughter Emily in 2,494 days.
Mary Jane Barry has not seen her daughter Samantha in 2,748 days.
Kate Bornstein has not seen her daughter Jessica in 13,857 days.


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

E-mail tips to tonyo94 AT gmail DOT com or follow us on Twitter. We also post updates at our Facebook author page. After every new story we send out an alert to our e-mail list and our FB page.

Our new book with Paulette Cooper, Battlefield Scientology: Exposing L. Ron Hubbard’s dangerous ‘religion’ is now on sale at Amazon in paperback and Kindle formats. Our book about Paulette, The Unbreakable Miss Lovely: How the Church of Scientology tried to destroy Paulette Cooper, is on sale at Amazon in paperback, Kindle, and audiobook versions. We’ve posted photographs of Paulette and scenes from her life at a separate location. Reader Sookie put together a complete index. More information can also be found at the book’s dedicated page.

The Best of the Underground Bunker, 1995-2019 Just starting out here? We’ve picked out the most important stories we’ve covered here at the Underground Bunker (2012-2019), The Village Voice (2008-2012), New Times Los Angeles (1999-2002) and the Phoenix New Times (1995-1999)

Other links: BLOGGING DIANETICS: Reading Scientology’s founding text cover to cover | UP THE BRIDGE: Claire Headley and Bruce Hines train us as Scientologists | GETTING OUR ETHICS IN: Jefferson Hawkins explains Scientology’s system of justice | SCIENTOLOGY MYTHBUSTING: Historian Jon Atack discusses key Scientology concepts | Shelly Miscavige, 14 years gone | The Lisa McPherson story told in real time | The Cathriona White stories | The Leah Remini ‘Knowledge Reports’ | Hear audio of a Scientology excommunication | Scientology’s little day care of horrors | Whatever happened to Steve Fishman? | Felony charges for Scientology’s drug rehab scam | Why Scientology digs bomb-proof vaults in the desert | PZ Myers reads L. Ron Hubbard’s “A History of Man” | Scientology’s Master Spies | The mystery of the richest Scientologist and his wayward sons | Scientology’s shocking mistreatment of the mentally ill | The Underground Bunker’s Official Theme Song | The Underground Bunker FAQ

Watch our short videos that explain Scientology’s controversies in three minutes or less…

Check your whale level at our dedicated page for status updates, or join us at the Underground Bunker’s Facebook discussion group for more frivolity.

Our non-Scientology stories: Robert Burnham Jr., the man who inscribed the universe | Notorious alt-right inspiration Kevin MacDonald and his theories about Jewish DNA | The selling of the “Phoenix Lights” | Astronomer Harlow Shapley‘s FBI file | Sex, spies, and local TV news | Battling Babe-Hounds: Ross Jeffries v. R. Don Steele


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