Alt.religion.scientology
Week in Review Volume 6, Issue 35
12/23/2001
by Rod Keller [rkeller@...]
copyright 2001

Alt.religion.scientology Week in Review summarizes the most significant
postings from the Usenet group Alt.religion.scientology for the preceding
week for the benefit of those who can't follow the group as closely as
they'd like. Out of thousands of postings, I attempt to include news of
significant events, new affidavits, court rulings, new contributors,
whatever. I hope you find it useful. Like many readers of a.r.s, I have a
kill file. So please take into consideration that I may not have seen some
of the most significant postings.

The articles in A.r.s Week in Review are brief summaries of articles
posted to the newsgroup. They include message IDs for the original
articles, and many have a URL to get more information. You may be able to
find the original article, depending on how long your site stores articles
in the newsgroup before expiring them.

Free A.r.s Week in Review subscriptions are available. Subscriptions are
also available on Yahoo. Email weekinreview-subscribe@yahoogroups.com or
see http://groups.yahoo.com/group/weekinreview. PDA channel available at
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Week in Review is archived at:
http://www.xenu.net/archive/WIR/
http://wpxx02.toxi.uni-wuerzburg.de/~krasel/CoS/ars-summary.html
http://www.uni-bonn.de/~uzs1dc/scientology/wir.html
http://www.religio.de/publik/arsfaq.html

#####

> Buffalo Org

The Buffalo News reported on December 15th that the city is still
considering tearing down the Buffalo Scientology org to make room for a
parking ramp.

"Planners want to seize two downtown properties, demolish an office
building, then construct a 10-level addition to the city-owned Owen B.
Augspurger ramp on West Huron Street, between Pearl and Franklin streets.
But opponents say the city shouldn't tear down more buildings, especially
occupied structures, for parking. The four-story Hurst Building at 43 W.
Huron is owned by the Church of Scientology, which occupies the first two
floors, according to attorney William R. Crowe. He said the third floor is
used for storage, while the top floor is vacant. Crowe said his client
wants to remain in the building, despite a $425,000 purchase offer from
the city."

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> CCHR

A press release from Scientology on December 19th denounced a failed bill
in the U.S. Congress which would have made mental health treatment equal
to other medical treatment for insurance purposes.

"The Citizens Commission on Human Rights, (CCHR) an international
psychiatric watchdog organization, said that Congress refusing to further
fund Mandated Mental Health Parity was a victory for patients rights but a
loss to psychiatry's bank balance. Though this bill was defeated, the
public and the government should not be fooled by future claims that it is
needed or that the costs for mental health parity will be 'low.' The
Congressional Budget Office estimates costs at $5.4 billion for the
Federal government and $23 billion for the American people over the next
10 years.

"During a period of nine years when Aetna and Blue Cross/Blue Shield
offered mental health coverage comparable to general medical services
their total health care expenditures tripled. For the same period their
mental health expenditures increased more than six-fold."

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> Clearwater

The St. Petersburg Times reported on December 20th that Scientology has
purchased an empty apartment building in Clearwater.

"The Church of Scientology has purchased a vacant 13-story high-rise
downtown that will house more than 600 new staff members in another step
in Scientology's unprecedented expansion in the city. The church last
week closed the deal to buy the nearly 2-acre property for $5-million from
a nonprofit corporation, BEF Inc., which does business as the Oaks of
Clearwater.

"Scientology leaders have had their eye on the property, known as Oak
Cove, for years. It is within two blocks of the massive Flag Building
under construction downtown and across Osceola Avenue from the western
facade of the church's Fort Harrison Hotel complex.

"In the past, city officials expressed concern about the church's possible
acquisition of Oak Cove, considering it a prime piece of property for
downtown redevelopment. The high-rise sits on Clearwater's bluff
overlooking Clearwater Harbor. On Wednesday, City Manager Bill Horne said
simply, 'Any kind of residential living in the area has to be construed as
a plus for downtown.'

"Church officials say a large portion of the property will be on the tax
rolls because it will be housing for Scientology staff. The church also
plans a $1.5-million renovation, including new air conditioning, carpeting
and paint. A small cafeteria inside likely will be used to serve staff
members breakfast. The building will house hundreds of the estimated 700
to 1,000 new staff members the church will need when its $50-million Flag
Building is completed in 2003. The church, which expects to eventually
have at least 2,000 staff members living in Clearwater, has been preparing
for the expansion for years."

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> Czech Republic

The BBC reported on December 18th that the Czech Parliament passed a new
law to modify requirements for registration of small religions, and to
allow major religions to operate more educational programs.

"The bill was supported by 121 legislators from the ruling Social Democrat
party and the senior opposition Civic Democrats, while Communists, the
Christian Democrats and the Freedom Union deputies were against it, though
for different reasons. Church dignitaries and the KDU-CSL are
particularly opposed to the separation of charities from the Churches'
structure. They are also afraid that the law may result in a limitation of
the freedom of religion. President Vaclav Havel vetoed the bill saying
that it was at variance with the Charter of Fundamental Rights and
Freedoms and that it did not allow Churches to establish their own health
and social care facilities. Culture Minister Pavel Dostal has dismissed
these objections as false.

"The law simplifies registration of churches with a low number of
believers, stipulating that 300 instead of 10,000 signatures at present
will be enough for a church to be registered. The 21 traditional Churches
and religious communities will enjoy bigger rights than newly registered
entities. They will be allowed to operate in the army and prisons, give
religion lessons at state-run schools, establish church schools and
perform Church wedding ceremonies.

"Jiri Voracek, spokesman for the Church of Scientology, said the law was
inappropriate and bad. 'It is a step back, the law is about something
entirely different than about what it was to be, that is about
registration of small churches,' he told CTK today."

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#####

> E-Books

Pdfzone.com reported on December 12th that Scientology claims Dianetics is
the top selling electronic book.

"Last week upon its digital debut, it surged to the top of the Palm e-book
charts. The book has seen something of a comeback as some Americans have
sought it out to find solace in the wake of the Sept. 11 terrorist
attacks. From publisher Bridge Publications may explain some of it:
'Dianetics explains how people's lives can be severely hampered or
disabled by incidents of pain or shocking emotion, whether from the trials
of everyday living or something as appalling as the terrorist attacks.
Detailing how these incidents insidiously act upon the body and affect
behavior and thought without the person's knowledge, L. Ron Hubbard
identifies them as the source of unwanted emotions and illogical fears and
explains why people who are normally rational would do irrational
things.'"

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#####

> Germany

Spiegel reported on December 15th that following their victory in a Berlin
court, Scientology plans to sue other states to prevent the police from
recruiting Scientologists as part of their surveillance activities.

"A decision by the Berlin Administrative Court has put the Constitutional
Security agents in trouble. After the court's decision that the Berlin
homeland security may no longer recruit undercover agents for use against
Scientology, the cult intends to sue in other German states. The effect
Scientology intends to obtain in principle is to stop infiltration of the
organization by security agencies.

"Mecklenburg-Vorpommern, Berlin and Bremen practically never use
intelligence methods such as tapping telephones anymore. The federal
Office for the Protection of the Constitution has also reduced observation
measures. The cult is presenting itself more and more as a 'religious
community' that 'does not put the Constitutional system into question,'
said an internal report of the Interior Minister of the states."

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#####

> Holiday Music

The Los Angeles Times reported on December 22nd that a Scientology choir
will participate in a holiday celebration in Glendale.

"The Los Angeles Citywide Children's Christian Choir, Church of
Scientology Choir of Tujunga and Gay Men's Chorus of Los Angeles are among
35 musical groups featured in the 42nd annual Los Angeles County Holiday
Celebration from 3 to 9 p.m. on Christmas Eve at the Dorothy Chandler
Pavilion.

"Pat Crowder, a member of the Scientology choir, said preparing for the
concert is a lot of work, but it's fun too. 'We get to hear a lot of great
music and the best groups in the county while waiting to perform,' she
said. 'Last year, they asked us to carol outside the pavilion, which was
quite a privilege.' Members wear Victorian caroling costumes and range in
age from 15 to 60."

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#####

> Reed Slatkin

The Wall Street Journal reported in December 17th that the trustee in the
Reed Slatkin fraud investigation has filed a report detailing some of his
findings.

"Back in 1988, Mr. Slatkin made a startling admission in a handwritten
note: 'Instead of working on stocks, I was working on fabricating
statements.' This acknowledgment was discovered by lawyers for Mr.
Slatkin's clients who are looking into his rise and sudden fall.
Revelations about what went wrong are contained in a 2,024-page interim
report that was filed Friday in Santa Barbara, Calif., bankruptcy court
after being compiled by court-appointed trustee R. Todd Neilson and
lawyers at Kirkland & Ellis, a firm representing creditors, who are trying
to unravel the case and help investors recoup their losses.

"Two copies of Mr. Slatkin's handwritten admission of 'fabricating
statements' were among some two million pages of documents provided by Mr.
Slatkin to the trustee. Attorneys who have seen the written statement say
it fits the form of a 'knowledge report,' a document used to report one's
ethical violations in the Church of Scientology, of which Mr. Slatkin is
an ordained minister. It is unclear, however, whether anyone other than
Mr. Slatkin ever saw it.

"The report notes that the soaring fortunes of EarthLink played a role in
helping Mr. Slatkin attract more investors. In recent years, he picked up
such high-profile clients as CNN commentator Greta Van Susteren, actors
Anne Archer and Giovanni Ribisi, Pennsylvania's prominent Walton family
and 'Spy Game' producer Armyan Bernstein. The report concludes: 'That
single successful investment propelled him to a new level of theretofore
unattainable credibility.'

"The report names 75 investors who reaped the bulk of the $197 million in
gains generated by Mr. Slatkin's operation. About a dozen of these
investors also served as 'highly paid consultants' to Mr. Slatkin, the
report says. The report devotes several pages to Chris Mancuso and Ron
Rakow, whose house was raided by the FBI in June in conjunction with Mr.
Slaktin's criminal probe. The families of Messrs. Rakow and Mancuso
received a total of about $12.8 million in profits from their investments
over the years, and both received additional unspecified millions of
dollars in 'consulting fees' and partnership arrangements, according to
the report."

From the Santa Barbara News-Press on December 18th:

"The documents show the inner workings of one of the largest alleged Ponzi
schemes in history, started in 1986 by Mr. Slatkin from his Goleta office
and Hope Ranch estate. The scheme uses later investors' money to pay high
returns to early participants, all with the hope of attracting new
investors.

"Monday's hearing included statements from those who say they were conned
by Mr. Slatkin. 'He's a monster,' said Greg Abbot of Colorado, whose
family lost millions of dollars. Mr. Slatkin, he said, went so far as to
get $7 million from Mr. Abbot's father, who had throat cancer. 'He is a
financial predator,' said Michael Azeez of New Jersey, whose family also
lost millions of dollars. He described Mr. Slatkin to the courtroom
audience as a family friend who 'came to family functions, to bar
mitzvahs,' even to his father's funeral, only to steal."

From The Times on December 20th:

"His name is Reed Slatkin. Until late last year he was a millionaire
Internet guru, a friend of Hollywood celebrities and an ordained minister
in the Church of Scientology. Now he is the subject of investigations by
the FBI and the Securities and Exchange Commission. His creditors describe
him, according to their mood, as either a 'financial predator' or a
'monster'.

"Investors became suspicious early this year and by May Slatkin had filed
for bankruptcy amid a storm of lawsuits. So far only $30 million of
Slatkin's assets have been recovered, with another $255 million still owed
to investors. Slatkin's few remaining friends say he was simply the
victim of the stock market crash. His creditors, however, accuse him of
organising a classic 'Ponzi scheme', which used money collected from new
investors to pay bogus profits to existing investors."

The Los Angeles Times reported on December 21st that investors, including
some Scientologists, may be asked to return the money paid to them by
Slatkin.

"Trustee R. Todd Neilson said he is reviewing a list of 75 people who
allegedly reaped $151 million in profits from their investment with
Slatkin to determine who will receive a letter demanding they return the
money. Those who do not comply could face lawsuits, Neilson said.

"The list of investors includes CNN legal commentator Greta Van Susteren,
actor Peter Coyote, Hollywood producer Armyan Bernstein and HGTV host
Susie Coelho - all of whom said they were unaware they were benefiting
from a Ponzi scheme. Neilson said he would decide 'in the near future'
which investors would be asked to return money under laws that prohibit
'fraudulent conveyance,' or the transfer of money or property to one party
when it rightly belongs to another. Neilson said he can legally recapture
phony profits that were paid out in the last seven years, when the bulk of
the $151 million was distributed.

"Even innocent parties usually are required to return money that was
fraudulently transferred, Neilson said. A request for repayment doesn't
necessarily mean the investors are suspected of fraud or that they knew
Slatkin was operating a Ponzi scheme, he said.

"Slatkin's investors have paid millions of dollars in taxes on capital
gains on profits Slatkin said they earned - profits that turned out to be
illusory, said attorney John Coale, Van Susteren's husband and a noted
anti-tobacco litigator. The couple invested $2.1 million with Slatkin but
received $2.7 million in payments, according to a report Neilson filed
Friday with the bankruptcy court. 'I'll fight this thing for 100 years,'
said Coale, who said he made the decision to invest the couple's money
with Slatkin starting 10 years ago. 'Most of that money went to the IRS.'"

Some excerpts from the trustee's report:

"On June 13th, the Trustee wrote to Slatkin's counsel identifying and
demanding the turnover of valuable paintings estimated to be worth
approximately $1 million. After the existing paintings were removed by his
representatives, the Trustee determined that the valuable paintings were
not among the removed items and appeared to be missing. On July 19,
Slatkin informed the Trustee that the missing paintings had been sold the
prior summer to Rakow and Del Bianco for $1 million.

"The Trustee has reliable information that the valuable paintings were, in
fact, removed from Slatkin's residence after Slatkin filed bankruptcy and
that Slatkin immediately replaced them with art of insignificant value.
The Trustee and the Committee believe that the purported sale of paintings
to Rakow and Del Bianco was a sham transaction and that the automatic stay
was violated by the post-petition removal of the paintings."

"Slatkin's cooperation was generally broad and somewhat uninhibited when
dealing with the general assets of the Estate and most investors. However,
when the Trustee probed the edges of suspicious financial transactions
that involved certain people, Slatkin's 'cooperation' became selective,
vague, non-committal, and, in most cases, useless."

"The Trustee's investigations reveal that Fortress Technologies has never
been successful in marketing its products or made a profit. Current
management has informed the Trustee that when Fortress Technologies was
formed, its management was dominated by members of the Church of
Scientology; one of the non-Church founders, Ben Levy, sued the company
and other founders for religious discrimination; the litigation resulted
in a $1.8 million settlement in favor of Levy ($600,000 to $800,000 of
which is still owed); until Levy receives that money, he is entitled to
receive five percent of any financing that is raised by the company

"The Trustee has declined to assist Fortress Technologies, efforts to
raise capital and has requested that its management attempt to find a
purchaser for the Estate's debt and equity interest. Based on the current
economic picture for the company, the Trustee does not anticipate any
significant return on Slatkin's investment.'"

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#####

> Switzerland

The city of Laussane, Switzerland issued a press release on December 18th
announcing that Scientology has lost a case concerning distribution of
leaflets on public property because the court found they are not actually
a church.

"The cantonal court of Vaud has ruled in the conflict opposing the
authorities of the town of Lausanne and the church of scientology. The
church was seeking protection by the court arguing it was religiously
harassed by three members of the Lausanne municipality that had restricted
leafleting and booth activities of the church on public grounds.

"The court has ruled the the church could not seek protection from
religious harassment, as it actually is not a church. The judges estimate
that 'in Scientology, one does not find neither relationships between men
and God, nor superior or sacred principles' and that the services and
goods offered by Scientology have 'nothing religious in them.' According
to the cantonal court, a religion must be recognized and accepted as such.
It is hence not sufficient to design itself as a church or religion to
benefit from the protection against religious discrimination."

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#####

> Volunteer Ministers

Scientology announced plans to expand the Volunteer Minister program,
mandating that all members sign up and create a web page using a template
and approved wording.

"ALL SCIENTOLOGIST _MUST_ COMPLETE THE VOLUNTEER MINISTER COURSE BY
DECEMBER 31, 2001. THE WORLD NEEDS _YOUR_ HELP - GO INTO YOUR ORG OR
MISSION AND ENROLL TODAY.

"IMMEDIATELY go into your nearest org or mission and do the Volunteer
Minister Course. This contains all the tech you need to know to be
effective as a VM.

"Once you're trained and certified as a Volunteer Minister, you'll be
given a CD-ROM which contains a VM website you can personalize, as well as
promotion you can produce to let others know you're available to help.
You'll also get a brochure that shows you step-by-step how to get very
active as a VM, very fast.

"On January 1, 2002, a massive promotional campaign will roll out
internationally - billboards, radio ads, print ads, Internet, you name it.
And every ad will direct those in your area to the Volunteer Minister
Hotline -- who will then direct them right to your personal website."

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-end-