Alt.religion.scientology
Week in Review Volume 6, Issue 7
6/32001
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
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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

#####

> ATEG

American Technologies Group this week announced that a lawsuit against
them for control of some of its products is being led by a group of
Scientologists.

"American Technologies Group, Inc. said that a news release issued on
behalf of BWN Nuclear Waste Elimination Corporation, i.e., the Carroll
brothers, is misleading and part of an unlawful pattern of conduct
orchestrated by a group connected with the Church of Scientology, and led
by prominent members of that church, the Carroll brothers and Michael
Stoller, long-time leading Scientologists.

"The lawsuits with the Carrolls began after Noel Carroll visited the
Company in March of 2000 openly declaring that he was going to take the
baser and catalyst technology owned by ATG and commercially exploit it
through the vehicle of Bio-Friendly and BWN. ATG successfully prevailed in
securing a temporary injunction to prevent that theft of ATG's technology
from happening.

"The actions of Michael Stoller and the Carrolls are nothing less than an
attempt to take for themselves what belongs to the ATG shareholders. These
matters are so serious and so continuing that the Company is seeking a
U.S. Department of Justice investigation of the fraud, the attempts at
theft, and any connection with the Church of Scientology which the Company
has reason to believe is fully aware of these unlawful acts."

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#####

> Battlefield Earth

Jam Showbiz News reported on May 31st that the animated sequel to
Battlefield Earth is in production.

"Generally regarded as one of the most reviled big-budget films in recent
history, the film of 'Battlefield Earth' was based on Scientology founder
L. Ron Hubbard's novel of the same name. Despite the poor showing,
Hubbard's book has been licensed for a 13 episode animated series, to be
done in the highly stylized Japanese animation format known as manga.
Travolta will apparently not be providing the voice of Terl. Dan Haggerty,
best known as TV's Grizzly Adams, will fill the role, with action hero
Chow Yun-Fat (Crouching Tiger, Hidden Dragon) mentioned as a voice for the
non-English version of the series."

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#####

> Hubbard Event

Wirepix.com reported on June 1st that L. Ron Hubbard books were the focus
of an event at a Chicago book convention.

"Resurrection Boulevard star Marisol Nichols attended Chicago's BookExpo
America, marking a celebration of nearly seven decades of published works
by international and New York Times best selling author L. Ron Hubbard and
the unique photo exhibition chronicling his life and works, a top feature
at the Expo. The star of the first all-Latino dramatic series on
English-language U.S. television, says her own life has been deeply
impacted by the many works of Mr. Hubbard.

"Distinguished by over 300 rare photographs, the exhibit vividly profiles
L. Ron Hubbard's extraordinarily adventurous life and the scope and
far-reaching impact of his literary career that spanned over half a
century and encompassed more than 530 published works of fiction and
non-fiction.

"Marking its 51st anniversary as a perennial self-improvement bestseller,
Dianetics: The Modern Science of Mental Health remains a publishing
phenomenon and is now available in 52 languages with nearly 19 million
copies sold. It has appeared on more than 420 bestseller lists in the U.S.
alone."

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#####

> France

The French National Assembly passed a law outlawing abuse of individuals
by cults. From Agence France Presse on May 29th:

"A new law against sects expected to be adopted by the French National
Assembly Wednesday is being described by opponents as an assault on human
liberty and a dangerous precedent for countries like China seeking to
crack down on minority faiths.

"The Church of Scientology, one of 172 groups officially designated as
'sects' in France, has spearheaded the campaign against the bill, warning
of the arbitrary powers it will give to judges to suppress beliefs and
behaviour that run against the mainstream. 'If it is voted through, this
law will allow the judicial authorities to dissolve any religion, any
spiritual or other group labeled 'sect-like,' wrote church-member Daniele
Gounord in a special edition of its newspaper Ethics and Liberty.

"Officially entitled 'the law to reinforce the prevention and repression
of groups of a sect-like character,' it is the amended version of a bill
which was widely criticised when it passed a first reading last June
because of a controversial clause making a crime of 'mental manipulation.'
Instead a new clause punishes 'the abuse of a person in a state of
psychological or physical dependence caused by the exertion of heavy or
repeated pressure or techniques liable to alter his judgment, to induce
such person to do or forbear an act that is seriously prejudicial to him.'

"A second provision would allow courts to close down associations after
members have been convicted of crimes such as personal violence, illegal
use of medicines or misleading publicity.

"Since the bill was published, US assistant secretary of state for human
rights Michael Parmly has spoken of Washington's concern about its
'dangerously ambiguous' language, and 50 members of the Council of
Europe's parliamentary assembly called for its suspension until the
completion of a report on religious rights in France.

"Human rights groups and minority faiths have warned that the legislation
is part of a dangerous trend visible in other parts of the world, and
could be used by China - for example - as a template for laws to suppress
the Falungong sect. Sponsors of the French law deny that it targets
beliefs of any kind, but only groups who use coercion, emotional pressure
and mind-management techniques to indoctrinate individuals and enslave
them to their cause."

From the Irish Times on May 31st:

"France's National Assembly adopted a new law against sects yesterday,
ignoring criticism from churches and human rights groups that it
represents an assault on basic liberties. Officially entitled 'the law to
reinforce the prevention and repression of groups of a sect-like
character,' it makes it an offence to abuse a vulnerable person via the
'exertion of heavy or repeated pressure or techniques liable to alter his
judgment'. It will also allow courts to close down associations after
members have been convicted of crimes such as personal violence, illegal
use of medicines or misleading publicity.

From Asia WorldSources on May 31st:

"It punishes 'abuses of a vulnerable person through exertion of serious
and repeated pressure, or use of techniques to alter his judgment, leading
him to commit acts seriously prejudicial against himself.' Those who
commit such crimes might face an imprisonment of up to three years and a
fine of 2.5 million francs (700,000 U.S. dollars). 'The sects, under the
cover of the so-called spirituality and esotericism, get prosperous
secretly. In fact they have no other goals but power and money,' said
Congressman Jean-Pierre Brard, also an expert on sects, quoted by the
French daily Le Figaro on Thursday. France 'should respond to the
problems caused by sect-like organizations at an international level and
through European judicial proceedings,' he added.

From the Guardian on June 1st:

"The Scientology movement and the Unification Church of the Rev Sun Myung
Moon immediately denounced the bill - endorsed almost unanimously on
Wednesday by national assembly deputies - as anti-democratic and in breach
of human rights laws. Roman Catholic and Protestant leaders have expressed
disquiet.

"But the justice minister, Marylise Lebranchu, described it as 'an
important, even a vital law to protect human liberties'. Once approved by
the senate, the law will allow courts to order the immediate dissolution
of any movement regarded as a cult whose members are found guilty of such
existing offences as fraud, abuse of confidence, the illegal practice of
medicine, wrongful advertising and sexual abuse.

"Sects will also be prohibited from opening missions or touting for new
members near schools, hospitals or retirement homes, and from reforming
under a different name once they have been legally banned. A convicted
guru would risk five years in jail and a fine of 500,000 pounds for
reoffending.

"This will make it a crime to 'exercise heavy or repeated pressure on a
vulnerable person, or use techniques likely to alter his judgment, to
induce in him behaviour prejudicial to his interests.' The law defines
'vulnerable people' as minors, the elderly, or anyone suffering from a
long-term or debilitating illness or considered after medical examination
to be 'in a state of physical or psychological subjection'."

From Le Monde on May 31st:

"Various attempts to exert pressure on the parliamentarians apparently did
not bear fruit. 'We are absolutely thrilled that the sects are
infuriated,' stated Philippe Vuilque, who believes 'the upper American
administration has been infected by Scientology.' Representative
Jean-Pierre Brard (PC) derided a 'non-existent campaign by the
international lobby of sectarian associations' against the legislation.

"He thinks that invention by the President of the French Bishop's
Conference, Cardinal Bille, and the President of the Protestant
Federation, Pastor de Clermont, which criticized the text of the proposal
in a letter to the prime minister, violated the 'separation of powers.'
Rene Andre, a representative of the RPR, believed on the other hand that
the two clergymen had 'the right and the duty to take a position,' and
that 'it would have been an bad sign for the enactment of the proposal if
they had been denied that right.'"

The Independent reported on May 30th that Scientology staged a
demonstration in Paris to protest the proposed law.

"Demonstrators campaigning for religious freedom in France burnt an effigy
of Joan of Arc outside the French Embassy in London yesterday. About 300
protesters from the Church of Scientology were highlighting their
opposition to a religious bill being debated in Paris today."

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#####

> Austria

Die Presse reported on May 30th that Gerry Armstrong spoke to the Austrian
Federal Center for Sect Issues on his experiences in Scientology.

"'Power and money are the real motivations behind Scientology. That really
has nothing to do with religion.' Canadian Gerry Armstrong, who spoke from
his decades of experience with the obscure 'private religion' of sect
founder L. Ron Hubbard, who died in 1986, spoke at a meeting of the
Federal Center for Sect Issues to warn against categorizing Scientology as
a religion. A religion that persecuted former members in an effort to
silence them or - as happened to him in the mid 1980s - threatened to put
a 'bullet between his eyes,' was certainly not a religion, Armstrong
believed.

"He said he spent over two years in the organization's 'concentration
camp.' After he left the sect he was persecuted: physical threats,
lawsuits, libel and breaking into his house were a daily routine.
Armstrong emphasized the sect's influence on the USA's justice and
administrative systems, an influence which became increasing apparent in
the 1990s. Since that time, the freedom of religion guaranteed by the US
Constitution has been more or less used to enact a prohibition against
criticism of religion and as a license for groups to suppress their
members, Armstrong said.

"About 40 members of Scientology Austria demonstrated in front of the
French Embassy on Schwarzenbergplatz against a proposed law to regulate
religious communities in France. The law will give the president and the
administration the power to ban religious groups that pose a danger to
public order."

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#####

> Italy

Jesus, an Italian Catholic magazine, this week published an article on the
religious status of Scientology.

"Unwilling detention. Illegal practice of medicine. Drugs. Brainwashing.
Tax evasion. Scientologists are accused of brainwashing their members and
adepts to suicide, to deprive them of medical treatment, to destroy
families, to ruin them financially.

"The headquarters in Clearwater and their 'branches' (many of which in
Italy as well) are more like luxury hotels than worship buildings. But
what is really happening behind those doors? Tortures? Artificial
paradise? There's only one way to find it out, though risky: go and see.

"People wandering about apparently without a purpose, or sitting on a
chair repeating incessantly 'fishes swim.' The feeling is like being on a
different planet, where people speak an unknown language crowded of odd
terms (clear, Ned, auditor, engram) and a syntax like this: 'If you have a
problem what you have to do is to solve it. This is what you have to do.'

"We wanted to follow the procedure of a standard recruit. You get an
invitation to undergo a free psychological test, on the streets or
elsewhere. It happens sometimes (though rarely) that an honest examiner
says: go home, you do not need anything. Usually, however, after the free
test they suggest you to buy the first auditing 'pack.' The 'patient' is
kept into the gear, and this will be the last time he hears the word
'free.'

"Only the initiated can get to the most jealous secrets, small doses
always against payment. On posters and publications the peremptory orders
of Hubbard' stand out 'all the books needed for your study must be
purchased'; 'Complete your library of Ron's work;' 'every scientologist
must have his/her personal E-Meter.'

"The ones who can not pay can pay in kind, i.e. working hours. At the
lower levels you can easily meet young people with a hungry expression,
trying incessantly to sell you books. There's a complicated system of
credits and debts that pushes you more and more, towards goals of more and
more perfect 'happiness,' at more and more prohibitive costs.

"It's easy understandable why such a business, in the hands of
unscrupulous people, can become a multinational enterprise with a turnover
of billions of dollars. As far as the 'religion' of Scientology is
concerned the treasures of the most esoteric doctrine cost staggering
figures. 'Happiness, immortality are priceless,' the Scientologists reply.
The goal of the highest levels is the state of Operating Thetan (OT),
'immortal operating spirit.'

"Maria Pia Gardini has publicly exposed the Church of Scientology for
having turned her out of house and home. She wants a million dollars back,
but she paid the 'religious' group much more. Moreover, Maria Pia Gardini
told about years of insistent and urgent requests of money, psychological
and physical violence inflicted her by members of Scientology to get her
sign a number of checks.

"It started 15 years ago when Maria Pia's daughter, a drug addict who was
attending a Narconon community, suggested her to follow some courses of
Scientology in order to get rid of a depression caused by a family loss.
Since then, Maria Pia is sucked into the Scientology whirl from which, she
says, she's able to come out 'after having purchased everything you can
purchase in Scientology.' Her daughter died when she was still in
Scientology, in 1990.

"Mrs. Gardini leaves Scientology in 1994, defrauded of all her possessions
and 'persuaded' as she bitterly underlines, 'to have wasted many years of
my life with an experience I now see as rubbish.' She got to the grade of
Class 9 auditor and studied the most advanced course, called OT VIII.
After 5 years of exhausting negotiations to have her money back, Mrs.
Gardini decided to go public and expose her incredible vicissitude made of
psychological pressure and vexations, and she turned to the Lisa McPherson
Trust, a Foundation based in Clearwater that's fighting against
Scientology.

"Mrs. Gardini's case joins the endless stream of judicial vicissitudes
that had as main characters the members of the Church of Scientology. A
number of power of attorney offices got interested in Scientology since
the beginning of the Milan trial back in 1988 (it ended a few months ago
with the acquittal of the last 33 defendant.)"

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#####

> Keith Henson

Keith Henson was arrested and jailed in Canada this week. Police were told
by Scientology that Keith was a wanted terrorist and bomb maker. Gregg
Hagglund was present, and described the arrest.

"Keith Henson and I were shopping at the Oakville Place Mall. We went to
my four door Protege which was parked near the main entrance to the
Grocery store. An unmarked Van blocked the rear of my car and another
unmarked van pulled up on the passenger side of the vehicle. My first
reaction was that these were Scientology paid Bounty Hunters attempting to
do a kidnapping of Keith. Then I saw the blue Flak jackets, uniforms and
badges for a moment and after that all I saw was guns. Lots of guns.

"Two Officers carrying machine guns had Keith in their sights and were
standing to the right of the car. Two more with drawn Glock handguns had
me in their line of fire. We were ordered to freeze and keep our hands in
view. Keith slowly raised his. As did I. Keith was ordered to exit the
vehicle, hands in view and to lie prone on the ground. I was taken from
the car to the rear of the vehicle and bent over the trunk.

"At the scene were at least six ETF officers in battle gear, at least one
of which was a woman. There were also at least three marked cruisers,
besides the two unmarked vans and another 4 to 6 uniform Oakville
uniformed cops. The Detective stated he was executing an Immigration
Canada Warrant for Keith Hensons Arrest. Keith was to be taken to 22
Division in Toronto and handed over to Immigration there. I later
discovered he was then to be sent to the infamous Immigration Metro West
Holding Centre at 111 Disco Rd in Etobicoke. This is near the Toronto
International Airport.

"The apparent basis of this Immigration Warrant is the allegation Keith
Henson failed to disclose to Information to Immigration Canada, when he
entered Canada on May 12, 2001. That information was an alleged a Felony
Fugitive Warrant in the US, and/or a misdemeanor so called 'hate crime' in
California. The fact is, Keith was not wanted at that time."

"Detectives Glavin and Bonenforte apparently admit they relied on
information supplied to them by Scientology's Office of Special Affairs.
Scientology supplied a volume of false information to the two Detectives,
which purported to prove Mr. Keith Henson was a dangerous bomb making
expert and terrorist."

From the Toronto Globe and Mail on May 29th:

"A fugitive wanted in the United States for committing a hate crime
involving the controversial Church of Scientology was arrested at gun
point yesterday by at a busy shopping mall outside Toronto. Mr. Henson
arrived in Canada on May 12 after being convicted this month of
'interfering with a religion' for picketing outside the Church of
Scientology's compound in Hemet, Calif.

"According to friends, Mr. Henson, an American citizen, plans to seek
refugee status in Canada because he fears retribution from Church of
Scientology members if he returns to the United States."

From the Toronto Star on May 30th:

"Keith Henson, 58, is being held in the Metro West Detention Centre and
faces a mandatory detention hearing tomorrow, said Dominique Forget, a
spokesperson for the Immigration and Refugee Board of Canada. Detective
Phil Glavin of the fugitive squad said seven officers arrested the
self-proclaimed free-speech activist at gunpoint in the parking lot of the
Oakville Place shopping centre while he was with Gregg Hagglund, a friend.

"Robert Schwarz, the deputy district attorney for Riverside County who
handled the case, said Henson not only picketed the Scientologists but
followed the organization's buses and posted bomb threats on Scientology's
Internet newsgroups. Henson's wife disagreed. In a phone interview from
Palo Alto, Calif., Lucas said Henson has been working to expose the Church
of Scientology - which he believes is a crime syndicate - for five years
and he is being targeted by the group."

From the Hamilton Spectator on May 30th:

"An American engineer says he'll be killed if he's sent back to California
where he was convicted of hate crimes after a long verbal vendetta against
the Church of Scientology. Keith Henson, 58, was arrested at gunpoint this
week at Oakville Place by Halton police. The American was wanted on an
immigration warrant after being convicted of hate crimes in California for
picketing the Church of Scientology and posting anti-church messages on
the Internet. Henson said he began fearing for his life after reading
missives in the Internet that he would be murdered. He is seeking
political asylum In Canada rather than return to California for
sentencing.

"'I'm applying as a political refugee from the United Sates. I wasn't
afraid until they bragged on the Internet they'd have me killed in jail in
the United States;' he said in a telephone interview from the Metro West
Detention Centre. During the trial, Henson was quoted as saying he would
'destroy them utterly' and making cryptic comments about cruise missiles.
The prosecution suggested he was capable of carrying out these threats
because of his background in explosives, knowledge of pipe bombs, and
technical know-how as a computer engineer. 'It's patently absurd. I
haven't used explosives for 25 years. I did it professionally (as a
geophysicist). I also teach kids about pyrotechnic safety,' he said."

From Hour Magazine on June 1st:

"Looking back, maybe the joke about the 'Tom Cruise Missile' wasn't such a
good idea. That online jest, made last year by Keith Henson, a peaceful if
persistent critic of the controversial Church of Scientology, has led to
his being found guilty of 'intimidating a religion,' and now on the run
from the U.S., hiding out in plain sight in Oakville, a Toronto suburb,
where he plans on claiming political-refugee status.

"Like Waco and Jonestown, this case raises issues of how far freedom of
religion goes and just how far a so-called religion can go to protect
itself and its members from its dissidents. 'It's not that I care one way
or the other about their beliefs,' said Henson this week just after news
of his flight hit the net. 'If they want to believe in space cooties,
galactic overlords or virgin birth, that's their problem. The problem is
when they viciously violate my right to free speech.'

"Last May, the fiftysomething computer engineer from Silicon Valley was
passing through the small village of Hemet, California and decided to
check out Scientology's Golden Era film studios. 'They acted so guilty
when I started picketing - papering over the windows, going undercover,
buying thousands of plants to block the view - that I stayed.'

"But that day, Henson went a bit further than usual, taking on a
faux-Austin Powers tone, posting the GPS co-ordinates for various
landmarks on Gold Base, and ending up with the now infamous threat: The
Tom Cruise Missile that said the only way to 'get clear of the Scientology
mess is to 'destroy them utterly.'

"Sources in Hemet speculate Scientology pressured the local district
attorney into moving against Henson and prosecuting him because of his
threat. He was arraigned on three charges, one of
'intimidation/threat/oppress because of colour/religion/gender;' one of
terrorist threats, and one of attempt of a terrorist threat. After a
near-disaster of a defense - in which all of the passages that would
indicate Henson's threat was little more than a sophomoric joke were
barred - the jury found Henson guilty of the first indictment -
intimidation - and hung on the other two counts. On May 15, Henson came
north to the Toronto suburban home of Gregg Hagglund, another
anti-Scientologist, to do some picketing. Shortly thereafter, he decided
to stay and skip out on sentencing."

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> Leipzig Human Rights

Bild-Zeitung reported on May 31st that Norbert Bluem will receive the
Leipzig Human Rights award on June 10th.

"For his commitment in dealing with the Scientology organization, former
federal labor minister Norbert Bluem (CDU) is to be honored with the
Leipzig Human Rights Award. The uncompensated award will be presented at a
ceremony on June 10th."

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#####

> Literacy

A Portland Oregonian column on May 31st described Scientology's literacy
programs.

"Hillary Larson, executive director of the Portland branch of HELP -- the
Hollywood Education and Literacy Project -- seems perplexed that Hubbard's
influence on their learning curriculum might be cause for alarm. 'My
attention is so focused on literacy and education that bringing religion
into it is a waste of time,' said Larson, granddaughter of the late oregon
transportation czar Glen Jackson. 'Scientology is an important part of my
life, but my interest in life is education. That's not the purpose of the
literacy project. Never will be.'

"In recent weeks, however, HELP-Portland -- which sits directly across the
street from Portland Community College's (PCC) Cascade campus and a block
from Jefferson High School -- has been criticized as a gateway into the
controversial 'church.' Porter Raper, an English faculty member at PCC,
argues that HELP is a 'recruiting front' for Scientology: 'This is nothing
more than a veiled attempt to become legitimate in our community.'

"Raper is particularly concerned that Larson is recruiting on the PCC
campus for volunteers to fill three Vista positions that will allow HELP
to dramatically expand its operating hours. 'They have this federal
money,' Raper said, 'and it troubles me. They should not have this seal of
approval.'

"David Touretzky, a professor at Carnegie Mellon University who's been
dueling the Scientologists on free-speech issues for years argues,
however, 'The cult is taking a more subtle approach with this literacy
stuff.' The principles of 'study technology' offered at the North
Killingsworth office, Touretzky argues, 'are loaded with significance in
the Scientology religion. Study Tech actually helps lay the foundation
for introducing Scientology into the schools.'"

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#####

> Protest Summary

Kristi Wachter reported a protest in San Francisco on June 2nd.

"Picketers: Murdoch, Marie, Peaches, Kristi Wachter, Arel Lucas Handlers:
Jeff Quiros, Not-Always-Nasty Mark, Bill Crawford, StealthMan Number of
Handouts given away: 259.

"When we got to the org shortly before noon, we saw that Murdoch and a new
person were already there. Marie turned out to be a lovely young lady with
a soft voice, an open mind and a camcorder. We welcomed her and I gave her
a picket advisory, and we settled in to picket. Murdoch later told me that
he and Marie had arrived at 11, so the picket ran at least three hours
today.

"A few Scientologists, including NAN-Mark and Bill, acquired
anti-psychiatry signs 15 or 20 minutes into the picket. Compared to last
time there were fewer of them, and they didn't really seem to be into
presenting their message.

"Not long into the picket, a white car pulled up and a gentleman got out
dressed in your basic security-for-hire uniform, light brown shirt and
slacks with little embroidered round badges at the shoulders. He had a gun
and a nightstick and was apparently with Stealth Security. He had a
little disposable camera with him and took pictures of us all. After
getting photos, he mostly stood near the org door and watched us,
occasionally conversing with Jeff and the others. Somewhere around midway
into the picket, he apparently went inside the org; I didn't see him much
during the second hour.

"Around 1:25, Arel arrived. A parking space had opened up right in front
of the org and she joined us for the final half hour of the picket. I hear
that some of the handlers made rude remarks about Keith (probably intended
to make her lose her cool), but she seemed remarkably calm to me during
the picket. At one point she put on earphones so she could listen to
something a little more pleasant than Scientology representatives gloating
over the recent miscarriage of justice. She had some great fliers about
how the prison sentence literally endangers Keith's life. We knocked off
pretty promptly at 2 pm."

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> Reed Slatkin

The Albuquerque Journal reported on May 30th that the FBI seized records
from Reed Slatkin's bookkeeper.

"The FBI seized 37 items, including computer disks, fax logs and other
documents on May 11 from the Santa Fe office of Jean Janu in connection
with a criminal investigation of EarthLink co-founder Reed Slatkin.
According to the affidavit for the search warrant, Slatkin is under
investigation for investment fraud.

"'It appears that Slatkin has not invested individuals' funds as
promised,' the affidavit says. 'To date, the SEC and private attorneys
representing several of the investors have been unable to verify that
Slatkin has ever had any accounts in Switzerland holding investor funds.'

"Janu, who maintains her own office at 1751 Old Pecos Trail, handles
accounting for Slatkin's securities transactions and determines the values
of investors' portfolios, the affidavit states. Janu does not participate
personally in any securities trades or banking transactions involving the
investors, the affidavit states. Janu works as a bookkeeper for Slatkin,
and Slatkin is her only client, according to the affidavit.

"Slatkin handles more than $200 million for over 500 individual investors,
according to the affidavit. Investors include Hollywood celebrities,
Internet executives and fellow members of the Church of Scientology."

From the The Wall Street Journal on May 30th:

"In 1997, the Securities and Exchange Commission made early inquiries into
the activities of Reed E. Slatkin, a money manager better known as an
Internet entrepreneur who co-founded EarthLink Inc. Four years and tens
of millions of dollars of new investments later, the SEC filed suit in
federal court in Los Angeles on May 11 accusing him of defrauding
Hollywood celebrities and other investors through 'Ponzi-like' schemes in
which he used money from new investors to pay off older ones. Now, many
investors are wondering, what took so long?

"If the allegations against Mr. Slatkin are true, the problem appears to
be a combination of a lack of follow-through by the SEC and the
gullibility of investors. 'Mr. Slatkin's lies and obstruction of our
investigation, all the while giving the appearance of cooperation, greatly
impeded our investigation,' explains Kelly Bowers, an SEC attorney working
on the case. While there were things about the situation that didn't seem
quite right, 'suspicion is obviously quite different from evidence,' says
Valerie Caproni, regional director of the SEC's Pacific region office in
Los Angeles.

"One reason that investors trusted Mr. Slatkin is that he appeared to be a
paragon of success who was above reproach, with the trappings of wealth
and ties to an established Internet company, say people familiar with the
case. Few of the people who gave him money - including the celebrities, as
well as Internet executives and people Mr. Slatkin met through the Church
of Scientology - suspected anything was amiss until they read about his
financial problems. A devout follower since his teenage years of
Scientology, a controversial religious group founded by science-fiction
writer L. Ron Hubbard, Mr. Slatkin had long invested for church members."

The Los Angeles Times reported on June 2nd that Slatkin signed a consent
decree in the fraud case.

"Fallen money manager Reed E. Slatkin has signed a consent decree with
securities regulators and is discussing a plea bargain with the U.S.
attorney's office over his role in what has been described as one of the
largest potential Ponzi schemes investigated by government officials.
Slatkin's moves signal that he is trying to avoid a court showdown over an
investment management business that took in hundreds of millions of
dollars from wealthy investors. But investors said they were worried that
plea negotiations could short-circuit government investigations and make
it harder for them to find out what happened to their money.

"Securities and Exchange Commission documents filed in U.S. District Court
in Los Angeles on Thursday show Slatkin neither confirmed nor denied any
wrongdoing in signing the consent decree, the strongest remedy the SEC can
seek. The SEC reserved the right to levy a penalty against Slatkin and
order him to repay money to investors, although how much the SEC may seek
is unknown. Slatkin is still under criminal investigation for investment
fraud by the FBI, which raided his Santa Barbara home and his offices in
Goleta, Calif., and Santa Fe, N.M., last month.

"Slatkin's attorneys have said investigators need Slatkin's cooperation to
unravel his investments and return the maximum amount of money possible to
investors. Investors have been skeptical, however, of Slatkin's claims and
government regulators' ability to ferret out the truth.

"Slatkin told the SEC that investors' money had been funneled through
Swiss bank accounts, but regulators have found no evidence that the
accounts exist, according to SEC documents. The SEC won an order freezing
Slatkin's assets last month, accusing him in court documents of running an
investment fraud since 1985. The consent decree extends that freeze, which
covers 41 brokerage and bank accounts as well as Slatkin's home, office in
Goleta and vacation property in Solvang.

"Documents seized from Slatkin's home and turned over by his attorneys
last month list more than 750 people as investors. Slatkin's client list
included Hollywood actors and producers, Internet executives including
fellow EarthLink Inc. co-founder Sky Dayton and members of the Church of
Scientology, of which Slatkin was an ordained minister."

The St. Petersburg Times reported on June 3rd that some investors got
their money from Slatkin before the scheme collapsed.

"CNN legal commentator Greta Van Susteren and her husband, tobacco
litigator John Coale, were among more than 500 clients who invested money
with a Church of Scientology member who is now under federal criminal
investigation. Van Susteren and Coale, who live in Washington but have a
second home in Clearwater, are prominent members of the church. 'We were
lucky,' Coale told the Wall Street Journal last week. He and Van Susteren
got their initial investment back 'and then some,' Coale said."

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