Re: Scientology/IRS: The McDonald Papers
[29 Dec 1997]

Basically, after MSH, Herbie Parkhouse and Jane Kember were removed from post,
the whole show was in chaos. The Controller (Mary Sue), the Guardian WW (Jane Kember)
and the Deputy Guardian Finance WW (Herbie Parkhouse) were each, up to the point of their
removal from post, international SOLE SIGNATORIES on EVERY Scientology bank account in
the world.

From: Warrior <>
Newsgroups: alt.religion.scientology
Subject: Re: Scientology/IRS: The McDonald Papers
Date: 29 Dec 1997 20:50:11 -0800
Lines: 229
Message-ID: <689ui3$>
Xref: szdc alt.religion.scientology:241581


In article <687sm9$l4t$>, says...
>Warrior <> wrote:
>>In article <f495f0f60181d9880c9a0b74feca049c@anonymous.poster>, Secret
>>Squirrel wrote:
>>>Zed gave us the following (McDonald papers):
>>>>In 1994, a new kind of policy was issued: a "Scientology Policy
>>>>Directive", or SPD. Entitled "Personal Income Taxes", it forbade
>>>>Scientologists from engaging in "tax avoidance schemes". It described
>>>>the tax system as "Suppressive", but required all Scientologists to
>>>>pay tax on their personal income.
>> Scientology Policy Directives were first issued in 1982, not 1994!
>>I have in my possession several SPD's.
>> SPD #25 was issued 28 July 1982 and is entitled "Cancellation [of]
>>HCO PL 29 September, 1980 CVB Policies". It begins "HCO PL 29 Sept 80
>>CVB Policies is hereby CANCELLED. It was not written by or approved by
>Hm.....Randall had apparently never seen a "Scientology Policy
>Directive" until mid-1994. He claims to have found over 200 of them in
>his investigations. He also suggests that the SP Directives violate
>several policies other than "Issues, Type of". I wonder what's in them
>all? I wonder when SPD #1 was issued?

Randall is correct if he stated that SPDs violate several policies
besides HCO PL "Issues, Types Of". SPD #1 was issued some time in 1982.
Personally, I believe Hubbard was not capable of running the cult as
early as 1979. That's about the time when "HCO PLs" began to be issued
by persons other than Hubbard. I heavily protested the squirrel issues
at that time, but as I said earlier, nothing was done by senior manage-
ment to cancel the squirrel issues. That's why after two years I decided
to leave staff. I figured that Hubbard was off the lines and that others
were running the show. And since the new cult management (WDC, Int Finance,
RTC, etc) was aware of the squirrel policies and nothing had been done to
cancel them, I figured the new leaders wanted things that way. Since the
new management (after the GO leaders were ousted) failed to do anything
about the "off-Source" issues, it amounted to tacit concent and willfully
enforcing squirrel policy.

This time period is worthy of a whole chapter. There is so much I
will write. I just need to make the time.

>Questions, questions.....
>> For those of you on ARS who don't know, there has been long-standing
>>policy written by Hubbard that no one may cancel one of his issues. In
>>fact, SPD #25 even states in the second paragraph "LRH Policy may only
>>be modified or cancelled by LRH."
>I believe Randall quoted this policy in one of his Knowledge Reports.
>Is it true that there is also an HCOPL called "Policy, Source of" that
>states "if it is not in an HCO Policy Letter, it is not policy", and
>that the very existence of an SPD is squirreling?

Yes, there is a policy by this title. It is HCO PL 5 March 1965
Issue II, and it is entitled "Policy: Source Of".

Paragraph seven states, "A 'policy letter' is not a Scientology org
policy unless written or authorized by L. Ron Hubbard and passed as a
resolution or covered by blanket resolution of the International Board
and issued or published by an HCO."

The second to the last paragraph of this HCO PL states, "If it is
not in an HCO Policy Letter it is not policy."

Hubbard allowed others to issue BPLs (Board Policy Letters). They were
green ink on buff coloured paper. If a BPL contradicted with an HCO PL,
the HCO PL was to be followed.

>>>>[...]He expected the illegal policy to be cancelled forthwith.
>> I experienced similar betrayal by Scientology as John McDonald did.
>[snipped for brevity. You're a fountain of information, Warrior.]
>>. I continued to write weekly knowledge
>>reports to senior management for two years, pointing out that the new
>> 1) Were green ink on white paper but were signed by the "Board of
>> Directors" or "Lyman Spurlock" or "The Watchdog Committee".
>There's Lyman's name coming up again. Three names appear to be the
>most interesting: David Miscavige, Norman Starkey and Lyman Spurlock.
>All three had and continue to hold positions of great importance in
>the Church.

Don't forget Wendell Reynolds, the Int Finance Dictator.

>> 2) Contradicting Hubbard's long-standing orders with regards to
>> finance.
>> 3) Issued over existing Hubbard policy WITHOUT cancelling existing
>> policy by Hubbard. In fact, since the advent of these new policies,
>> there were now TWO contradictory sets of policy.
>> 4) In violation of Hubbard's HCO PL "Issues, Types Of".
>> 5) In violation of the policies on how to defeat illegal orders.
>I see two possibilities.
>1) Hubbard was in such poor nick that he'd forgotten the right way to
>issue policies and was letting other people sign the policies he was
>issuing so it didn't look like he was managing Church affairs.
>2) The WDC, "Board of Directors" (whoever that refers to) and Lyman
>Spurlock were issuing policies without Hubbard's knowledge or consent.

I believe Hubbard was so sick that others began to take over. I
don't think Hubbard knew fully what was going on in the early 80s.
Certainly he had some sort of general idea. But there is no way
that Hubbard was issuing the squirrel finance issues in contradiction
with existing policy AND without bothering to cancel the original
"tried and true" policies.

Basically, after MSH, Herbie Parkhouse and Jane Kember were removed
from post, the whole show was in chaos. The Controller (Mary Sue), the
Guardian WW (Jane Kember) and the Deputy Guardian Finance WW (Herbie
Parkhouse) were each, up to the point of their removal from post,
international SOLE SIGNATORIES on EVERY Scientology bank account in the

>What was Lyman Spurlock's relation to the WDC(if any)?

CoB wannabe. :-)

>> Approximately nine months later, the HCO Area Secretary called me up
>>one day and said "Please come back. You were RIGHT. All the 'SQUIRREL'
>>issues have been cancelled". She went on to tell me about a new issue
>>by "Hubbard" called "Changing Workable Finance Systems". This new issue
>>essentially said that some squirrels and SPs had issued policies in
>>violation of Hubbard's "green on white" (HCO PLs), and that ALL staff
>>should be on the watch for future violations of policy and to never ever
>>"allow" this sort of thing to happen again.
>The second Zegal tape states that in July and August of 1982, all
>senior Church management that weren't under the influence of Miscavige
>and the Broekers had been pulled off post, comm-eved, and for the most
>part declared and expelled. A policy from "Hubbard" would have to go
>through the Broekers and then Miscavige. Another possibility is that
>this "Hubbard" policy originated from Pat or Annie Broeker, or from
>David Miscavige. The three of them were the only "comm line" that
>Hubbard had with the rest of the Church by this stage, IIRC.
>Did the "Changing Workable Finance Systems" issue specify which
>policies violated HCO PLs? Was this issue an HCO PL itself?

I'll have to see if I have this issue. As I recall it was an
HCO PL. But I doubt it was written by Hubbard.

>> I did go back on staff, but left in a little less than a year later.
>>Nothing had really changed. It was the same old double-talk. I mean,
>>I remember thinking "What the fuck! Who in the hell is this 'WDC' anyway?
>>And HOW can they issue policies with green ink on white paper?!?"
>Does this mean that the old "squirrel" policies that were implemented
>when you left were still in force?

I am not sure what the question is.

>> It was totally absurd. I still have some of these weird issues. I left
>>the Sea Org again in total disgust. And I've never looked back or thought
>>for an instant I would go back.
>Fascinating. I'd love to see what some of these issues were about.

I will summarize them in a posting in which I will talk about the
time period of 1979 - 1983.

>> Miscavige is an absolute SQUIRREL. Ditto for Lyman Spurlock. Ditto
>>for Wendell Reynolds. In my opinion, these guys will say anything to
>>protect their money-making machine, even to the point of lying and
>>defrauding their own fellow Scientologists.
>I think you're right.

One of the things that I grew sick of hearing was the lie that
"such and such policy letter is cancelled as it was not written by

>> I have thought myself that the IRS perhaps took Scientology into
>>receivership in order to satisfy collection of the millions of dollars
>>in back taxes the cult owed (and may continue to owe).
>The courts found substantial evidence of inurement by one of the old
>Co$ corporate shells - the Church of Scientology of California - and
>its tax exemption was revoked in 1967. Despite this, CSC refused to
>pay any taxes, claiming that its tax exempt status had been improperly
>revoked. I wonder what became of all those back taxes? Miscavige
>doesn't make any mention of them in his "Big Win" speech in 1993.

Back in the late 70s I worked on the IRS Defensible Records Project
under the Guardian Office. At that time, the project personnel were
trying to reconstruct the CoSoC finance records from 1970-1972. The
records were an absolute mess. I remember being appalled since the
records I worked on were income invoices and disbursement vouchers
from the Apollo, and Hubbard had been on the ship during that time.
I wondered how the "old man" had *allowed* such sloppy bookkeeping
to take place when he had been in a position to oversee everything.
Brad Bernstein worked on that project too. He got so "overwhelmed"
by the mess that he had to be taken off the project to "destimulate".
He's a CPA and now works for Greenberg and Jackson, the accountancy
firm in LA.
Also on the project was a CPA named Peter Blecha. Peter was Finance
Audits Director PAC. He later went into Author Services from the Guardian
Office in PAC (later named GLA for Greater Los Angeles).
Peter and Brad are still in Scientology, so maybe when they blow
we will hear some interesting information.

>> There is much I will write on the subject of finance and the
>>cult of Scientology, the IRS, etc. Stay tuned...
>I will.
>BTW, among Lyman Spurlock's other roles, he is also the "Tax
>Compliance Enforcement Officer" for RTC. Now when did that happen?

I'm not exactly certain since it was after I left.

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