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N A T I O N A L

(ALSO LOCAL FOR: D.C., LOS ANGELES, SEATTLE)

ATTN: ASSIGNMENT DESK


FOR IMMEDIATE RELEASE:

STUDY FINDS FEDERAL COVER-UP

OF SCIENTOLOGY IN MILITARY INTELLIGENCE



A chronological investigative analysis of once-classified
intelligence reports, corporate papers, copyright and trademark
records, court documents, and other public records has exposed a
massive and pervasive co-ordination of the Executive and Judicial
Branches in order to effect a cover-up, since at least 1972, of
copyrighted Scientology technologies being illegally utilized in
United States strategic intelligence. The study shows that the
cover-up has reached all the way to the Oval Office in both
Republican and Democratic administrations, including those of
George Bush and Jimmy Carter. Bush's knowledge and involvement
dates back at least to his term as Director of Central
Intelligence.

      The timeline of events documents that an employee of the
National Security Agency (NSA), Dr. Harold Puthoff, infiltrated
Scientology, completed its confidential upper-level courses, and
almost immediately secured a top-secret contract with the Central
Intelligence Agency to set up the CIA-initiated "remote-viewing"
intelligence program. The evidence is that the program secretly
utilized Scientology techniques--intellectual property of
Scientology founder L. Ron Hubbard--without Hubbard's or any
Scientology organization's knowledge or permission, and without
compensation.

      The study also shows that Scientology's Guardian's Office
(GO)--headed by Hubbard's wife Mary Sue--had province over the
intellectual properties being illegally used by the federal
government.

      The GO became embroiled in protracted litigation, via the
churches, of numerous Freedom of Information Act (FOIA) suits
against NSA, the CIA, the Defense Intelligence Agency (DIA), the
Department of Defense, the Secret Service, and other Executive
Branch departments and agencies.

      The FOIA suits sought the release of documents related to
Scientology and to L. Ron Hubbard that were known to exist, but
were being withheld by the federal intelligence agencies and the
Defense Department, among others, on grounds of NATIONAL
SECURITY.

      One ruling against the Scientologists even went so far as to
justify withholding of documents about Scientology on the grounds
that the Director of CIA is "responsible for protecting
intelligence sources AND METHODS from unauthorized
disclosure...[emphasis added]." Neither Hubbard, his wife, nor
the Guardian's Office knew the exact nature of the documents, nor
about Hubbard's copyrighted materials being illegally used by the
federal intelligence agencies.

      Scientology's FOIA suits spanned the very time when the
top-secret Scientology-based remote viewing program and budget
were not only being expanded, but were being utilized by the
Department of Defense, the President's National Security Council
(NSC), and the Joint Chiefs of Staff. But the documents being
sought by the Guardian's Office were never released; the FBI
raided the church's offices in July of 1977, and the federal
government filed criminal charges accusing Mary Sue Hubbard and
the Guardian's Office of "criminal spying"--a strange irony.

      The sensational case resulted in Mary Sue Hubbard and 10
Guardian's Office co-defendants being sentenced to jail without a
trial by federal Judge Charles R. Richey, which led to the
ultimate disbanding of Scientology's Guardian's Office.

      This opened the way for a new senior corporation, "Church of
Spiritual Technology" (CST), doing business as the "L. Ron
Hubbard Library." It was set up in 1982--right after the Supreme
Court had upheld Mary Sue Hubbard's conviction--for the express
purpose of gaining receivership and control of L. Ron Hubbard's
copyrights. But it was in the founding of this corporation that
the first hint of the cover-up by the federal government lay
buried.

      In an EXCLUSIVE 1997 STORY, the PUBLIC RESEARCH FOUNDATION
reported that Meade Emory--former Assistant to the Commissioner
of the Internal Revenue Service and former Legislation Attorney,
Joint Committee on Taxation--had been a co-founder of CST,
Scientology's most senior coporation. That corporation now
controls the copyrights for all of L. Ron Hubbard's intellectual
properties, once valued at close to $100 million. CST also enjoys
ultimate authority over all Scientology-related trademarks,
including even the name "L. Ron Hubbard."

      But the discovery of Emory, a non-Scientologist, in such an
unusual position raised red flags, since Emory's involvement in
setting up the corporation had been hidden for fifteen years.

      Then it was learned that Emory had been Assistant to
Commissioner of IRS Donald C. Alexander from 1975 through 1977.
Strangely, those were the very years that an IRS employee, Gerald
Wolfe, was supposedly a Scientology "double agent" guilty of
numerous thefts of IRS documents for Mary Sue Hubbard and the
Guardian's Office--leading to the arrests and convictions.

      Other oddities also surfaced:

      1. According to a U.S. Claims Court ruling, none of the
founders of CST but one had any religious connection with
Scientology. They were non-Scientologist tax and probate
attorneys.

      2. The October 1993 IRS tax-exemption for CST was granted in
a then-secret Closing Agreement only after a final round-up of
every intellectual property ever produced by L. Ron Hubbard had
been completed.

      3. On November 29, 1993, scarcely two months after CST had
been granted tax exemption by IRS in a secret Closing Agreement,
all 7,730 of L. Ron Hubbard{s copyrights were quietly transferred
to CST.

      PRF's original press release and supporting documents about
Meade Emory's ties to CST were sent to major newspapers--including
the Wall Street Journal--and to Senator William V. Roth, Jr., Finance
Committee Chairman and Vice Chairman of the Joint Committee on
Taxation. Within 15 days the secret agreement between IRS and CST, et
al. was leaked to WSJ, who never ran the story on Emory.

      But the IRS Closing Agreement, once released, revealed that
it had been the final step in the United States government's
20-year campaign to secretly get L. Ron Hubbard's copyrighted
technologies and techniques--being illegally used by federal
agencies in strategic intelligence--firmly under secret federal
government control. Putting the copyrights in a 501(c)(3)
corporation bypassed the separation clause of the Constitution,
because CST, despite its name, is not a church.

      So certain was the IRS that the secret agreement would never
be exposed that it included a "Continued Conspiracy Clause,"
requiring all signatories to agree in collusion to protect Meade
Emory and all other "current or former" employees of IRS and the
United States government against any and all claims of their
having been involved in a "continued conspiracy." Yet it was just
such a "continued conspiracy" that apparently had brought the
secret Closing Agreement into being.

      The federal government further secured its position by
secretly setting up an illegal and unconstitutional "Church Tax
Compliance Committee" to enforce Treasury regulations on the
structure and function of the various Scientology organizations,
including permanent installations of "Tax Compliance Officers" in
each organization.

      Senator Roth's inaction on the Executive Summary regarding
Meade Emory's involvement with the creation of Scientology's most
senior corporation has now raised questions whether the
Legislative Branch has been involved in the cover-up as well.

-30-


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