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Danny Masterson’s nutty lawsuit involving his house loan is finally kicked out of court

[Danny and his circular Hollywood property]

While we’ve been covering Scientology celebrity Danny Masterson’s very serious criminal investigation and court case over the last several years, we also happened to discover something not to so serious that he was also involved with in federal court.

It was a series of lawsuits that he and his wife Bijou Phillips had filed against the mortgage holder of their Hollywood Hills home, a $4 million landmark on Hollyridge Drive that at one point was owned by rock ‘n’ roll pioneer Chuck Berry.

Masterson’s lawsuits, filed without an attorney and containing some bizarre sovereign-citizen flavor, accused his mortgage holder, the Bank of New York Mellon and the Mortgage Electronic Registrations Systems (MERS), of filing fatally flawed paperwork that not only meant the Mastersons didn’t need to make payments on their house, but also that they were entitled to $5 million in damages.

We showed the litigation to legal experts who told us Danny Masterson was filing utter nonsense (and huge volumes of it), and that it was a bit dicey because while he and Bijou are no longer living in the house (they were leasing it out), he has used the house (along with the one they are living in, in Santa Ynez) to back the $3.3 million bond that is keeping Danny out of jail while he awaits a criminal rape trial that could put him in prison for life if he’s convicted.

Did Danny’s bail bondsman know when he agreed to help Masterson stay out of jail that one of the houses backing his bond was wrapped up in crazy federal litigation? We tried to ask the bondsman that question, but he said he’d get back to us and never did.


In September, we first told you that we’d come across the bizarre set of lawsuits, the most recent of which was filed in 2018. And more recently, we told you that we had found that someone had loaned Danny $550,000 on the house, which we figured would be just enough to bring him up to current on the house in case he lost the legal fight.

We found paperwork showing that the source of the loan was from an LLC that is owned by Danny’s stepfather, disgraced financial trader Rusty Tweed. (Interestingly, Danny and Bijou had been using Tweed’s business address in San Marino as their own for the litigation.)

Since then, two more things have come to light.

On Tuesday, Masterson’s nutty lawsuit was finally dismissed outright by federal Judge Dean Pregerson, who didn’t sound very amused at all by Danny’s shenanigans.

“Plaintiffs’ First Amended Complaint, which spans over 350 pages, exclusive of exhibits, and alleges 116 causes of action, is the latest iteration of Plaintiffs’ efforts to allege claims related to their 2007 execution of a $1,995,000 promissory note secured by a Deed of Trust to Plaintiffs’ home in Hollywood, California,” the judge wrote in his decision to finally put an end to this clown show.

Whew, Danny came up with that cash from the parents just in time.

So now, he’s got a house that he’s got to start making payments on again now that his lawsuit is over.

We suggested earlier that we thought Danny might be looking to unload the house if he got the chance.

Well, the realtor who handled the sale on his sister Alanna’s house earlier this year just put up a very interesting post at her Instagram account…


The realtor’s caption: “Something special is coming soon…”

One of our sources who knows Danny well tells us that is definitely a photo from the Hollyridge Drive house and told us the distinctive arch style with burgundy border leaves there no question.


We took a look at the Hollyridge Drive house on Google Streetview and found that, yes, the distinct arch style with burgundy border is a feature of the place.


We’re told it will be a little complicated to unload this place while it’s securing the bail bond on a violent felony, but at least the market is good for sellers at the moment, right?

We want to stress, however, that this is not the house where the alleged sexual assaults occurred, which was a previous residence that Masterson owned.

But hey, when’s the open house?

UPDATE: At 2 pm Eastern, seven hours after this story went live, Danny’s house was officially offered for sale.

He’s asking $6.995 million.


Bonus items from our tipsters

Another hype video from South Africa! They’ve really been busy down there.




Source Code

“If it isn’t written it isn’t true. The only orders that affect transfers, functions, programs in an org must be issued as Executive Directives, OODs or FSOs or FBDLs or AIDES ORDERS, CBOs or FOs to be legal…Therefore if anyone tells you to change post or duties or that a function is changed on the Org Bd and cannot show it to you in a policy letter or FO or CBO, it is not true. Furthermore to follow such an unwritten or illegal order is to risk a Comm Ev for accepting illegal orders. It would be just as bad to follow an order to violate an HCOB and run some upsetting process. The reason is very plain. Policy, followed, results in a productive, comfortable post and policy not followed with verbal orders only in effect makes a cat’s dinner.” — L. Ron Hubbard, August 16, 1971


Avast, Ye Mateys

“As I’ve had some upsets and checked to find others have from noise in sessions I think it’s best if we have DOC figure out a ‘Ship Noise’ period when we can have all hands chipping and any banging and E/R compressor charging. A couple hours of this scheduled when Qual is NOT auditing would be a great help. New recruits or new members aboard are apparently unaware of areas where they shouldn’t bang and chatter. This should be part of their ship info. DOC should work this out.” — The Commodore, August 16, 1970


Overheard in the FreeZone

“Just re-reading KSW1. I think this is what we’re up against in the Indie Field: ‘The group left to its own devices would not have evolved Scientology, but with wild dramatization of the bank called new ideas would have wiped it out.’ And it looks to me like one of the ways people use to make sure Scientology gets wiped out is to invalidate KSW1.”



Past is Prologue

2001: The Associated Press reported that Narconon has opened its new facility in Oklahoma. “An international drug rehabilitation program will more than double its bed space in Oklahoma when it opens in a former state lodge in eastern Oklahoma. Narconon Arrowhead is to open a 230-bed campus Saturday on Lake Eufaula with federal and international drug rehabilitation experts on hand. The center has operated since 1990 as the Chilocco New Life Center with a 105-bed facility in Newkirk. Narconon uses saunas, vitamins and a special diet as part of a three-month program to help people stop using drugs. The plan was developed by the Church of Scientology founder, the late L. Ron Hubbard.”


Random Howdy

“That’s it, I’m joining Scientology tomorrow.”


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

Criminal prosecutions:
Danny Masterson charged for raping three women: Next hearing set for November 10. Trial tentatively scheduled for February.
Jay and Jeff Spina, Medicare fraud: Jay sentenced to 9 years in prison. Jeff’s sentencing to be scheduled.

Hanan and Rizza Islam and other family members, Medi-Cal fraud: Pretrial conference August 21 in Los Angeles
David Gentile, GPB Capital, fraud: Next pretrial conference set for Sept 9.

Civil litigation:
Luis and Rocio Garcia v. Scientology: Oral arguments were heard on July 30, 2020 at the Eleventh Circuit
Valerie Haney v. Scientology: Forced to ‘religious arbitration.’ Petition to US Supreme Court submitted on May 26. Scientology responded on June 25.
Chrissie Bixler et al. v. Scientology and Danny Masterson: California Supreme Court granted review on May 26 and asked the Second Appellate Division to direct Judge Steven Kleifield to show cause why he granted Scientology’s motion for arbitration. Oral arguments scheduled for Oct 5.
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: Third 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 23. Appeal hearing scheduled for Aug 23-27.

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.



We first broke the news of the LAPD’s investigation of Scientology celebrity Danny Masterson on rape allegations in 2017, and we’ve been covering the story every step of the way since then. At this page we’ve collected our most important links, including our four days in Los Angeles covering the preliminary hearing and its ruling, which has Danny facing trial and the potential sentence of 45 years to life in prison.


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.


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.


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

Other links: SCIENTOLOGY BLACK OPS: Tom Cruise and dirty tricks. 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?


[ONE year ago] VIDEO: Portland unrest inspires $250,000 donation from Scientology lifer
[TWO years ago] Here’s the lawsuit against Scientology and Danny Masterson. Let’s dive into it.
[THREE years ago] Stanley Clarke turns out to be as deep into Scientology as we feared, all these years later
[FOUR years ago] Mirriam & Saina from ‘Leah Remini: Scientology and the Aftermath’ — The LAPD has let us down
[FIVE years ago] In 1951, L. Ron Hubbard’s fellow SF writers debated him about ‘badly-written’ Dianetics
[SIX years ago] Passion of the Heist: The Scientology hucksters who have made this summer unforgettable
[SEVEN years ago] After a year’s delay, Mary Sue Hubbard’s house is on the market for $2.5 million
[EIGHT years ago] Scientologists Say the Darndest Things In Their Disconnection Letters
[NINE years ago] Scientology’s Oklahoma Nemesis, Bob Lobsinger: ‘They Lied Every Step of the Way’
[TEN years ago] Ed Bryan, OT VIII, Demonstrates the Power of Scientology’s Highest Levels


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 2,394 days.
Katrina Reyes has not seen her mother Yelena in 2,899 days
Sylvia Wagner DeWall has not seen her brother Randy in 2,419 days.
Brian Sheen has not seen his grandson Leo in 1,439 days.
Geoff Levin has not seen his son Collin and daughter Savannah in 1,330 days.
Christie Collbran has not seen her mother Liz King in 4,637 days.
Clarissa Adams has not seen her parents Walter and Irmin Huber in 2,505 days.
Carol Nyburg has not seen her daughter Nancy in 3,279 days.
Doug Kramer has not seen his parents Linda and Norm in 1,609 days.
Jamie Sorrentini Lugli has not seen her father Irving in 4,083 days.
Quailynn McDaniel has not seen her brother Sean in 3,399 days.
Dylan Gill has not seen his father Russell in 11,965 days.
Melissa Paris has not seen her father Jean-Francois in 7,884 days.
Valeska Paris has not seen her brother Raphael in 4,052 days.
Mirriam Francis has not seen her brother Ben in 3,633 days.
Claudio and Renata Lugli have not seen their son Flavio in 3,894 days.
Sara Goldberg has not seen her daughter Ashley in 2,932 days.
Lori Hodgson has not seen her son Jeremy and daughter Jessica in 2,645 days.
Marie Bilheimer has not seen her mother June in 2,170 days.
Julian Wain has not seen his brother Joseph or mother Susan in 525 days.
Charley Updegrove has not seen his son Toby in 1,700 days.
Joe Reaiche has not seen his daughter Alanna Masterson in 6,251 days
Derek Bloch has not seen his father Darren in 3,400 days.
Cindy Plahuta has not seen her daughter Kara in 3,720 days.
Roger Weller has not seen his daughter Alyssa in 8,575 days.
Claire Headley has not seen her mother Gen in 3,694 days.
Ramana Dienes-Browning has not seen her mother Jancis in 2,050 days.
Mike Rinder has not seen his son Benjamin and daughter Taryn in 6,353 days.
Brian Sheen has not seen his daughter Spring in 2,459 days.
Skip Young has not seen his daughters Megan and Alexis in 2,857 days.
Mary Kahn has not seen her son Sammy in 2,733 days.
Lois Reisdorf has not seen her son Craig in 2,316 days.
Phil and Willie Jones have not seen their son Mike and daughter Emily in 2,811 days.
Mary Jane Barry has not seen her daughter Samantha in 3,065 days.
Kate Bornstein has not seen her daughter Jessica in 14,174 days.


Posted by Tony Ortega on August 16, 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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