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Former Scientology OT gets indicted on $4 million securities fraud

 
In November, Newport Beach insurance broker, financial advisor, and software purveyor Robert Andrew Lotter was arrested and charged with felony securities violations by the California Department of Insurance, which accused him of defrauding more than $4 million from over 20 victims. Also arrested was an insurance agent named Charles Albert Major of Irvine.

Bob, 64, and Chuck, 72, were accused of fraudulently selling “more than $4 million in stock certificates in Lotter’s companies, eAgency, Inc. and Mymobilewatchdog, Inc.” the state said in a press release.

The case has received considerable attention in local media, including stories in the Orange County Register and the Los Angeles Times. But we became interested in a detail that had been left out of those stories. Both Lotter and Major had been members of the Church of Scientology, and people who knew Lotter told us that after he left the church he continued to be active as an independent or Freezone Scientologist, continuing Scientology practices outside of the church.

We were told that Lotter’s Scientology involvement was extensive. In the late 1980s he had actually worked on staff at the Orange County “org” as a “reg” — short for “registrar,” which was Scientology slang for a salesman who puts the hard sell on church members to pay for more and more expensive courses and auditing. He had left that position to start up his own insurance company while also continuing up Scientology’s “Bridge to Total Freedom.” We heard from a former Scientologist who had personally seen Lotter at Scientology’s Flag Land Base in Clearwater, Florida, where he was doing the upper “OT” auditing levels. Lotter had reportedly completed OT 7, but then was disillusioned with the way church leader David Miscavige had made changes with the “Golden Age of Technology.” Like so many others, after 2005 Lotter had decided to look for further Scientology advancement outside of the church itself.

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Two former Scientologists both told us that Lotter had gushed about how happy he was with the esoteric auditing he was receiving in the “Freezone.” Specifically, said one, Lotter talked about going up the “Captain Bill Robertson Bridge.” Another said Lotter praised independent auditor David St. Lawrence for delivering that auditing.

All of this fascinated us at least as much as Lotter’s business history and the charges that the state of California had leveled against him. So yesterday we reached out to both David St. Lawrence and to Bob Lotter.

Happily, both responded almost immediately.

 

[Bob Lotter, right, and Chuck Major when they were arrested in November]

According to the state, between 2003 and 2018 Lotter and Major made misrepresentations to potential investors about the viability of Lotter’s companies, asking them to invest in schemes that were much riskier than the two of them were letting on.

Lotter and Major continued to lure victims with assurances that profits from eAgency, Inc. and Mymobilewatchdog, Inc. were “just around the corner.” They claimed to have partnerships with large Internet companies and prominent mobile carriers. They showed clients newspaper articles and televised interviews featuring Lotter to cement victims’ confidence in their investments and mitigate concerns victims had about their investments and the continued delays of their investment returns.

According to the state’s press release, Lotter’s bail was set at $4 million and Major’s at $2 million, and the prosecution would be handled by the Major Fraud Unit of the OC District Attorney’s Office.

In the last couple of years we’ve noticed a significant uptick in the number of fraud and other criminal cases leveled against Scientologists, including chiropractor Jay Spina in New York (Medicare fraud), chiropractor Dennis Nobbe in Miami (Medicare fraud and PPP loan abuse), the Islam family in Los Angeles (Medi-Cal fraud), investor David Gentile in New York (a Ponzi scheme), and actor Danny Masterson, who is accused of raping three women who were Scientologists.

Scientologists claim to be the most “ethical” people on the planet, but ex-Scientologists point out how much they were conditioned, while members, to have contempt for the laws of “wogs” (non-Scientologists). We couldn’t help wondering if that might extend to Freezone Scientologists as well.

David St. Lawrence responded to us first. He’s well known in the Freezone community, and we’ve mentioned him and his rather unusual ideas in the past.

We told him that we had been speaking to people who heard Bob Lotter praising his auditing skills. We also told St. Lawrence that we realized he might not be in a position to comment on his own clients. Here’s his reply, in its entirety:

 

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I think that is absolutely fantastic but I never had a client by the name of Robert Lotter. I do have people come to me under false names so that it doesn’t get back to the church that they’re getting my services.

If you are at all interested I can give you the 25-word description of how my spiritual rescue technique differs from Scientology. I teach my clients how to speak to the spirits who surround them. This is different from the OT levels in that the OT levels are mini–exorcisms and spiritual rescue technology is a series of conversations with spirits until they wake up and either leave or agree to help the client in some way. All of my sessions are delivered over Zoom now as my clients find it far more convenient than driving to Cary, NC.

I think you are doing a great job publicizing the sins of the Church of Scientology and the good work done by those who are out in the field.

One last difference between myself and the Church of Scientology is that I teach my clients to solo audit almost from the very beginning.

We thanked him for that glimpse into his business, and told him it made sense that some of his clients approach him using pseudonyms.

He then surprised us by bringing up our reporting on Justin Craig, the ex-felon who claims he is the reincarnation of L. Ron Hubbard, but who has split with much of the Freezone after some of the people who were initially his followers turned away from him.

St Lawrence assured us that Justin is the real deal.

I have corresponded with him last year and he really is good old Ron in a new body. He is a walk-in, meaning that Justin Craig is still there so the final result is at least two personalities running the show these days. If you observe him closely, you will see flashes of Justin Craig appear when things do not go well with him.

St. Lawrence really is a goldmine of information and we do hope that he continues to put up with our questions in the future.

Soon after that conversation we received an email from Bob Lotter.

He mistakenly thought he might have known us in the church (your proprietor has never been involved in Scientology), and imagined that we had become disillusioned with it. And based on our questions, he assumed we were going to write a particular kind of story.

He suggested a headline: “Former Scientology OT gets indicted on $4 Million bail for Securities Fraud!”

Done.

He then indicated that he had been out of the church since 2005 and that his arrest has nothing to do with Scientology.

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“Furthermore, I am not being indicted on securities fraud. My bail was dropped to $100,000 and I am actually innocent. Soon this will be resolved so, if you want to write a story about me or my experiences and how and why this happened to me, wait another few weeks and maybe there will be a scoop. I wouldn’t be the first person ever falsely arrested. My story is actually very interesting,” he wrote.

A check of the court docket confirms that Lotter is free on a $100,000 bond.

Besides suggesting a headline, Lotter also sent a different version of his story than what the Department of Insurance described in his press release. Here’s what he sent:

Autistic kid who had a traumatic brain injury at age 11 gets recruited to work in the Top Secret Nuclear weapons branch of the U.S. Army. Serves for nine years and receives distinguished commendations for his work goes on later in life to become an Ernst and Young Entrepreneur of the Year but also a tech guru. After taking the very first smartphone to the cloud, and armed with eight patents, Robert Lotter repurposes this technology and takes on Child Predators pursuing children on their smartphones. Hundreds of arrests and convictions later, including work with Homeland Security, the FBI, local, state and federal law enforcement world wide (Even a case with Scotland Yard and the Secret Service), Robert is written up in TIME Magazine, Newsweek, Business Week, the Wall Street Journal and much more. He also appears on Dr. Phil, Good Morning America, TODAY Show, FOX, CNN, CNBC etc. as well as many many other local radio and TV stations across the country. Robert has received personal commendations from the President of the United States, the OC Sheriff, Jefferson County Colorado DA, Dr. Phil and many more. Later Robert went on to create an application for families called, MyMobileWatchdog which was also received with broad acclaim.

He added that he had zero criminal record and had never been arrested before. “Not a DUI, nothing. He has lived a life of duty to others. How was it that he was arrested and falsely accused and why?” he wrote.

We also asked him about an unusual story that was posted on January 7, more than a month after his arrest. It was a splashy announcement by GoGirl Worldwide Magazine that it had named Lotter its “GoGuy With a Heart of Gold.”

Just conversing with Robert Lotter for an hour, one will quickly learn this amazing man not only possesses many talents, but many irons in the fire. Exuding conversational eloquence, with a positive, entertaining personality, Robert’s story isn’t one you read about every day. His unique, unconventional approach to challenges in both life and business using austere, military-style probing, testing, and problem-solving, while employing “patterns” has afforded Robert a myriad of unparalleled entrepreneurial achievements.

A copy of the story was also posted as a press release on the AP’s Accesswire.

We couldn’t help wondering about the timing of this gushing endorsement from a publication we had never heard of, but Lotter said the interview was done well before his arrest.

Lotter said that he would be able to speak more freely at a later date, and planned to start both a blog and podcast to tell his story.

“Maybe I can interview you some time?” he added.

As for Scientology, he questioned our word choice.

“I am curious why you find the idea of David auditing people over Skype and the Freezone ‘fascinating.’ It is interesting, I agree, but why fascinating?”

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We’re really pleased that both Lotter and St. Lawrence responded to our questions, and we’re looking forward to seeing how this case turns out.

Will Bob end up doing a lengthy prison stint, or instead vindicate himself and have us on his show? Will David find convincing proof that Justin Craig is the returned Ron Hubbard?

Honestly, it’s all gripping stuff as far as we’re concerned.

 
——————–

Source Code

“Sacredity. I think it’s very amusing, if you like to laugh at funerals. I do myself. I do. The last funeral I saw in Kansas, a dead wagon went by, you know, and it was one of these hearses, you know, with the great big plate glass side windows, you know. You could see the coffin in there. Flowers all over it. And here came limousines after it, you know, one after the other. And there were people crying and people sobbing in these limousines. I pulled off to the side of the road, naturally, and I took off my hat. And all this was just automatic, you know, took off my hat. I sat there and watched this thing go by. And car by car my risibility started getting the better of me, you know. I thought here’s this bird, he kicked off, you know, and they shoved this body full of embalming juice, and this bird is sailing around here someplace or another. He probably already picked up somebody in a maternity ward or something of the sort, and he’s long gone, you know, and here’s these birds left with this piece of MEST, you know. And they’re crying and sobbing, you know, and they’re filling it full of flowers and embalming fluid, and going to take it out to the graveyard and erect some stone over the top of it, you know. The unreality of these people and their attitude and what they believed, and what I myself knew for a fact, you see, were so far apart that I’m afraid that by the time the last funeral car had passed, I was just doubled up with laughter. I just can’t take funerals very seriously. I’m sorry. It’s too silly.” — L. Ron Hubbard, April 5, 1962

 
——————–

Avast, Ye Mateys

“TO THOSE LEAVING

Farewell
God Speed
And Early Return

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I thank you
The Sea Org thanks you
For your good work
And Contribution
To us all.

I know
The good things you’ve done
And good intent.
Forgive the conditions
And any hardship

And carry away
No bitterness
But only pleasant
Memory of Flag.

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In appreciation
Gratitude
And full respect:

Farewell
God Speed
And
Soon Return

Love
Ron
April 5, 1969”

 
——————–

Overheard in the FreeZone

“I’ve audited at least two Jesus Christs and one Ann Boleyn. And a Don Juan, come to think of it, too. I wasn’t entirely convinced by any of them, but of course one doesn’t evaluate or inval.”

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——————–

Past is Prologue

2002: The Santa Barbara News-Press reported in a series of articles on the guilty plea of Reed Slatkin, Scientology minister and creator of a fraudulent investment scheme. “Waiting to serve what will likely be a long prison sentence and shunned by ex-friends, bankrupt investor Reed Slatkin had another punishment befall him recently when he learned that he has been excommunicated from the Church of Scientology. Church officials held a hearing and decided to expel the former Hope Ranch resident. While the church benefited indirectly because Mr. Slatkin and many of his investors were generous donors, Mr. Neilson concluded that so far there is no evidence that the church was a large beneficiary. In addition, Scientologists were just as much victims in the scam as non-Scientologists, court records show. ‘He misused his connections to the church tremendously,’ said Linda Simmons Hight, a spokesperson for the Church of Scientology International. ‘He overstated his connections. He hasn’t ministered in the church since 1983 and he has abused his position since then.'”

 
——————–

Random Howdy

“It’s ‘nix’ on ESP and telepathy, but ‘ja’ on Telekinesis and Astral Projection? No reason or rhyme to the mind of Mother Hubbard.”

 
——————–

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

Criminal prosecutions:
Danny Masterson charged for raping three women: Masterson arraigned Jan 20. Discovery hearing on April 20, prelim set for May 18.
Jay and Jeff Spina, Medicare fraud: Jay’s sentencing delayed to April 13.
Hanan and Rizza Islam and other family members, Medi-Cal fraud: Trial scheduled for May 20 in Los Angeles
David Gentile, GPB Capital, fraud: Charged in Brooklyn federal court on Feb 4. Arraigned on Feb 9. Pretrial conference set for Apr 29.

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 writ of mandate denied Oct 22 by Cal 2nd Appellate District. Petition for review by state supreme court denied Dec 11.
Chrissie Bixler et al. v. Scientology and Danny Masterson: Dec 30, Judge Kleifield granted Scientology’s motions to compel arbitration. June 7: Status conference.
Matt and Kathy Feschbach tax debt: Eleventh Circuit ruled on Sept 9 that Feshbachs can’t discharge IRS debt in bankruptcy. Dec 17: Feshbachs sign court judgment obliging them to pay entire $3.674 million tax debt, plus interest from Nov 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, Cannane victorious, awarded court costs. Case appealed on Dec 24.

Concluded litigation:
Dennis Nobbe, Medicare fraud, PPP loan fraud: Charged July 29. Bond revoked Sep 14. Nobbe dead, Sep 14.
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.

 
——————–

SCIENTOLOGY BLACK OPS: Tom Cruise and dirty tricks

The Australian Seven News network cancelled a 10-part investigation of Scientology and its history of dirty tricks. Read the transcripts of the episodes and judge for yourself why Tom Cruise and Tommy Davis might not have wanted viewers to see this hard-hitting series by journalist Bryan Seymour.

SCIENTOLOGY: FAIR GAME

After the success of their double-Emmy-winning, three-season A&E series ‘Scientology and the Aftermath,’ Leah Remini and Mike Rinder continue the conversation on their podcast, ‘Scientology: Fair Game.’ We’ve created a landing page where you can hear all of the episodes so far.

LEAH REMINI: SCIENTOLOGY AND THE AFTERMATH

An episode-by-episode guide to Leah Remini’s three-season, double-Emmy winning series that changed everything for Scientology watching. Originally aired from 2016 to 2019 on the A&E network, and now on Netflix.

SCIENTOLOGY’S CELEBRITIES, from A to Z

Find your favorite Hubbardite celeb at this index page — or suggest someone to add to the list!

 
Other links: Scientology’s Ideal Orgs, from one end of the planet to the other. 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 a weekly series. How many have you read?

 
——————–

THE WHOLE TRACK

[ONE year ago] Whoopi Goldberg recommends Scientology’s drug rehab Narconon on ‘The View’
[TWO years ago] Scientology gets away with abuses because it has friends like author Orson Scott Card
[THREE years ago] What do super powers smell like? For around 30 grand, Scientology can help you with that.
[FOUR years ago] Bryan Seymour: Scientology’s sniffer-dog problem is bad timing for Narconon in Australia
[FIVE years ago] After their daughter died at Scientology training, a friend makes off with the funeral money
[SIX years ago] Saturday Night Live’s genius spoof of Scientology: Lyrics and images
[SEVEN years ago] Jon Atack’s final weekly column for us on Scientology, and it’s a doozy
[EIGHT years ago] NBC ROCK CENTER LIVE BLOGGING: NARCONON ON THE HOT SEAT

 
——————–

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 2,262 days.
Katrina Reyes has not seen her mother Yelena in 2,766 days
Sylvia Wagner DeWall has not seen her brother Randy in 2,286 days.
Brian Sheen has not seen his grandson Leo in 1,306 days.
Geoff Levin has not seen his son Collin and daughter Savannah in 1,197 days.
Christie Collbran has not seen her mother Liz King in 4,504 days.
Clarissa Adams has not seen her parents Walter and Irmin Huber in 2,372 days.
Carol Nyburg has not seen her daughter Nancy in 3,146 days.
Doug Kramer has not seen his parents Linda and Norm in 1,476 days.
Jamie Sorrentini Lugli has not seen her father Irving in 3,950 days.
Quailynn McDaniel has not seen her brother Sean in 3,266 days.
Dylan Gill has not seen his father Russell in 11,832 days.
Melissa Paris has not seen her father Jean-Francois in 7,751 days.
Valeska Paris has not seen her brother Raphael in 3,919 days.
Mirriam Francis has not seen her brother Ben in 3,500 days.
Claudio and Renata Lugli have not seen their son Flavio in 3,761 days.
Sara Goldberg has not seen her daughter Ashley in 2,799 days.
Lori Hodgson has not seen her son Jeremy and daughter Jessica in 2,512 days.
Marie Bilheimer has not seen her mother June in 2,037 days.
Julian Wain has not seen his brother Joseph or mother Susan in 392 days.
Charley Updegrove has not seen his son Toby in 1,567 days.
Joe Reaiche has not seen his daughter Alanna Masterson in 6,118 days
Derek Bloch has not seen his father Darren in 3,267 days.
Cindy Plahuta has not seen her daughter Kara in 3,587 days.
Roger Weller has not seen his daughter Alyssa in 8,442 days.
Claire Headley has not seen her mother Gen in 3,561 days.
Ramana Dienes-Browning has not seen her mother Jancis in 1,917 days.
Mike Rinder has not seen his son Benjamin and daughter Taryn in 6,220 days.
Brian Sheen has not seen his daughter Spring in 2,326 days.
Skip Young has not seen his daughters Megan and Alexis in 2,728 days.
Mary Kahn has not seen her son Sammy in 2,600 days.
Lois Reisdorf has not seen her son Craig in 2,183 days.
Phil and Willie Jones have not seen their son Mike and daughter Emily in 2,678 days.
Mary Jane Barry has not seen her daughter Samantha in 2,932 days.
Kate Bornstein has not seen her daughter Jessica in 14,041 days.

——————–

Posted by Tony Ortega on April 5, 2021 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, 1995-2020 Just starting out here? We’ve picked out the most important stories we’ve covered here at the Underground Bunker (2012-2020), 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, 15 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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