By Roland Rashleigh-Berry
13 December 1997
Source:
http://members.cox.net/batchild1/fraud.htm
[Copyright (C)
Roland Rashleigh-Berry,
13th December 1999. Permission is granted to anyone and everyone
to copy this document in any format for both commercial and
non-commercial use]
This document will prove the the Church of Scientology in the
UK, operating under the company "Church of Scientology Religious
Education Colleges Incorporated" (C.O.S.R.E.C.I.), received
money to the value of nearly $100,000,000 from another
Scientology organisation and that this money then disappeared
without trace. This information has been passed on the the
police and the UK taxation authorities (called the Inland
Revenue over here in the UK) who are taking an interest in the
matter since it is both corporate fraud and tax evasion of great
magnitude.
This information came to light when a "search" was done at
Companies House, the registry of all company accounts in the UK.
You can "search" on all the loans or mortgages that a company
has. It resulted in 8 pages of very revealing information.
page1,
page2,
page3,
page4,
page5,
page6,
page7,
page8.
What it reveals is that some very large sums of money were
loaned to COSRECI in the UK But these are not "loans" in the
common sense. When a "Trust" loans money it intends for the
money to be put to charitable purposes. It "loans" it initially
and as a secured loan so that if the company it lends it to runs
into financial trouble then it can get back the money it gave.
But when the money it loaned is all put to the charitable use
intended then it writes off the loan. It is effectively a gift
with strings attached on how the money can be spent.
Loan 1
The first loan listed is an "outstanding" one because it
hasn't been paid back or the money spent in the way intended but
it is from the "International Scientology Religious Trust" since
a couple of the names are those of the Trustees listed in a
later entry. We do not know how much money was involved.
Loans 2, 3 and 4
This is where it starts getting interesting. These are from
the "Church of Scientology of California" to COSRECI and it is
in three loans of £1,550,000 for St. Hill Manor and the Stables,
£320,000 for 68 Tottenham Court Road and £165,000 for a freehold
property in West Hoathly. These loans were made on 30/12/1981
which is odd because this "Church of Scientology of California"
ceased to exist the following day owing millions of dollars in
compensation to one Lawrence Wollersheim. The charge was
satisfied (written off) on 03/01/1996. This date is odd in two
respects. Firstly, since the "Church of Scientology of
California" no longer existed in 1996 so there was nobody there
who could have decided to write off this loan and secondly
because it is the same date that most of the other loans were
written off.
Loan 5
This is the first of a large number of very large loans made
by "The International Scientology Religious Trust" that were
loaned on 29/01/1987 and satisfied (written off) on 03/01/1996,
the same date that the loans from the "Church of Scientology of
California" were written off. This was for the amazingly large
amount of $54,645,000 secured against 68 Tottenham Court Road
which is probably only worth $1,500,000 at today's prices. But
this property was already secured by the "Church of Scientology
of California" so this is just like mortgaging your property to
two different banks.
Loans 6, 7, 8, 9, 10, 11and 12
Like Loan 5, these were all from "The International
Scientology Religious Trust" created 29/01/1987 and satisfied
(written off) on 03/01/1996. They are all for the same amount of
$4,645,000 and again, hugely more in value then the properties
or land they are secured against. These loans created 20/01/1987
add up to the huge amount of $87,160,000. Any accountant or
auditor would question this and also report such an irregularity
to the authorities since it would be an obvious candidate for
possible money laundering, but we shall see that this figure
appears nowhere on the accounts covering the period.
Loan 13
This is another one for $4,645,000 but created the following
year on 18/01/1988 and satisfied earlier to the others on
03/01/1989.
Loan 14
This is a normal loan made by a bank created on 05/09/1999
that is still outstanding.
Why were so many loans "satisfied" on 03/01/1996 ?
Most of these loans were written off on 03/01/1996 and so the
property returned to the full ownership of COSRECI. Why all at
the same time and at this date? The answer most likely lies in
the creation of a new charity in the UK called "The Church of
Scientology (England & Wales)" which they hoped would get
charitable status in the UK. It would then be a simple matter to
transfer all the assets of COSRECI across to this new charity
which would help cover their tracks. This charity was created in
July 1996 and applied for charitable status with the Charities
Commission in December 1996. But after three years deliberation
the Charities Commission rejected their application.
The company accounts
The accounts of COSRECI do not have these figures in them and
yet they are obviously important. They are not accounted for in
any of the following years either. The $87,160,000 for loans 5
to 12 have just vanished without trace. This is a clear case of
massive corporate fraud. COSRECI is a charity that is registered
in South Australia. However, being a charity does not spare you
from the tax man. Charities have to keep honest and accurate
accounts and they only enjoy tax-exempt status if their money is
used for charitable ends. This $87,160,000 just disappeared
though and so the tax man will assume it was corporate profit
and that it benefitted people materially and so income tax will
be due. Also, because this money was deliberately hidden and
also through a "charity" then a 100% penalty will apply. On top
of this there is interest accumulating over the period since
29/01/1987. In total, the tax bill could be approaching
$200,000,000 with the other disappearing "loans" taken into
account.
The accounts can be viewed here:
page1,
page2,
page3,
page4,
page5,
page6,
page7,
page8,
page9
The end is nigh
When the Inland Revenue finally come to collect, they will
take all the property of COSRECI and the directors and trustees
of COSRECI and "The International Scientology Religious Trust"
will be serving long sentences for fraud and tax-evasion and
conspiracy to commit fraud. There will be nothing left of
Scientology in the UK and it will most likely get banned, maybe
sometime in the year 2000 and could be gone from Europe the
following year. Investigations into this fraud will finally sink
the whole organisation in the US as well when all its shell
companies are recognised as acting in this conspiracy. Its
leaders will be sent to jail for a long time. Again, they will
owe the relevant tax authorities more back tax then they have
assets or reserves to cover and it will be the end of the Church
of Scientology worldwide. |