Church of Scientology International
Office of the President
November 5, 1994
James McGovern
Assistant Commissioner (Employee
Plans and Exempt Organizations)
Internal Revenue Service
Room 3408E
1111 Constitution AVe., N.W.
Washington, D.C. 20224
Re: FACTNET, Inc.
Dear Jim:
I have written to you previously in February
1994 and again
in August 1994 concerning "Fight Against Coercive Tactics Network
("FACTNET") describing the purposes and activities of this group
and demonstrating that the application for tax exemption that they
filed -- and which was granted by the Service in August 1994 --
was fraudulent. I will not repeat the information set forth in
those letters but attach copies, (without exhibits) here for your
reference. (Exhibits 1 & 2). I am writing this letter to bring
to your attention additional evidence concerning FACTNET that has
come up since my last letter.
In my earlier letters I described the close
relationship
between FACTNET and the Cult Awareness Network ("CAN"), an
anti-religion hate group that serves as a referral service for
deprogrammers, and evidence that FACTNET itself was carrying out
similar referral services. Further evidence has been brought to
light of these two organizations working together and carrying out
similar functions.
FACTNET's former president, Gerald Armstrong,
testified in
the last two weeks that in November 1993, shortly after FACTNET
was formed, its founder, Larry Wollersheim, gave a demonstration
of the FACTNET system to the Executive Director of CAN, Cynthia
Kisser and other CAN principles. FACTNET and CAN use very similar
language for.describing what they do and similar euphemisms for
promoting their deprogrammer referral network. A recent
computerized advertisement by FACTNET promoted via the Internet
system, says that they can connect up anyone who contacts them to
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TELEPHONE (213) 960-3500 FAX (213) 960-3508 / 960-3509
JAMES MCGOVERN
PAGE TWO
"an assortment of key mental health professionals, clergy,
attorneys, support groups, ex-members, and organizations who work
with victims and families of this group." (Exhibit 3) Compare
this to a recently promotional piece for CAN that describes who
they are as ". . . mental health professionals, lawyers,
physicians, legislators, clergy, law enforcement officers and
educators" and in the`next paragraph admits that "CAN recognizes
the need for voluntary exit counseling/deprogramming . . .."
Exhibit 4 FACTNET and CAN are working together and FACTNET
appears to be taking part in the deprogrammer referral business.
Recent additional evidence of the extent of
CAN's involvement in
deprogramming demonstrates what such referrals actually mean.
A declaration from the manager of a Bed and
Breakfast house
in Albany, Ohio ("The Albany House") situated near the Wellspring
Retreat and Rehabilitation Center, (run by CAN Board member Paul
Martin), states that between 1988 and 1993, about 20 different
families who stayed at The Albany House said they were having a
family member deprogrammed at Wellspring. Members of about 10 of
these families stated that their adult child had been kidnapped
during the deprogramming upon the advice of CAN. Exhibit 5
Similarly, in a deposition of CAN's Office
Manager,
Marty
Butz, he admitted that he had given 500 referrals to deprogrammers
since he started working at CAN in 1989, including referrals to
deprogrammers like Rick Ross known for using force and violence.
Exhibit 6 As demonstrated above, FACTNET is also part of this
network, working with CAN in its deprogramming referral
activities.
That FACTNET is playing an active role in
deprogramming
is
further demonstrated by the fact that its president, Jon Atack,
who lives .in the United Kingdom, is himself a deprogrammer,
specializing in attempts to deprogram Scientologists. He has been
paid tens of thousands of dollars over the years for such
services. As described in my August 1994 letter, Atack has also
exported FACTNET's operation to the United Kingdom and has
attempted to spread its activities into other parts of Europe by
forming a "Counter-Scientology Europe" network. Among other
things he has done through this group, he has attempted to incite
opposition to the Church's application for religious recognition
with the United Kingdom Charity Commission and has disseminated to
the Charity Commission some of the same false information put out
by FACTNET.
Atack is also a litigant against the Church in
the UK and
thus personally interested in causing the Church as much trouble
as he can. Recently, however, the suit that Atack filed against
the Church was dismissed for lack of merit. The Church was
JAMES MCGOVERN
PAGE THREE
awarded costs, which Atack has refused to pay. The Church is
taking the necessary collection actions.
My earlier letters briefed you on the kinds
of scurrilous and
defamatory information that FACTNET has put out about Scientology
and the plans of its founder, Larry Wollersheim, to sell this
information and otherwise solicit "tax deductible" contributions
to fund harassive litigation against Scientology. Recent evidence
shows that this is exactly what FACTNET is doing.
One of the major sources of the false
information
disseminated by FACNET has been Steven Fishman, who was previously
convicted for obstruction of justice for falsely trying to
implicate the Church in his crimes as a way of deflecting guilt
from himself. It didn't work and he went to jail. Fishman is
currently under investigation again by the Probation Department
for involvement in a new round of fraudulent schemes and violating
his parole by associating with felons.
Fishman recently sought legal representation
from an attorney
in North Hollywood for a "malicious prosecution" case against the
Church of Scientology he wishes to bring. In making this request
for representation, Fishman repeated many of the same blatantly
false allegations against Scientology that have been promoted by
FACTNET. Included in these is the scurrilous allegation that the
tragic suicide of David Miscavige's mother-in-law was actually a
murder for which Mr. Micavige may be charged. Fishman also
represented that with respect to the funding of this proposed
litigation, funds may be forthcoming from FACTNET, a tax-exempt
organization headquartered in Golden, Colorado, to help cover the
costs of the suit. This shows FACTNET's funds being earmarked for
harassive litigation against the Church, which is not a tax exempt
purpose. Exhibit 7
Attorney Graham Berry, who earlier paid about
$20,000 to
FACTNET for false information (which Berry proceeded to file in
court in the Fishman case) attempted to get Senator Chafee of
Rhode Island to connect up with FACTNET so as to get Senator
Chafee's assistance in getting the tax exempt status of the Church
of Scientology revoked.
Last week, FACTNET's Systems Op, Bob Penny,
posted
a letter
from Graham Berry in which Berry solicited data which could
support his false allegation about the confidentiality of the
advanced levels of Scientology religious services. Even though
Berry stated that his letter was to be kept confidential, FACTNET
posted it broadly on its computer system asking people to send
information about Scientology confidential advanced levels to
Larry Wollersheim clearly for the purpose of supporting private
litigation. This is not an activity that should be supported by
tax exempt contributions. Tab 8
JAMES MCGOVERN
PAGE FOUR
My letters in February and August 1994 showed
that FACTNET
does not qualify for tax exemption, that its exemption application
was a sham and should have been more than ample to result in
revocation of its tax exempt status. The additional evidence
provided here demonstrates that FACTNET is operating in the
non-exempt manner described in those earlier letters.
Please contact me if I can provide any other
information.
| |
Sincerely yours,
[signed] Heber Jentzsch
Heber Jentzsch
President
Church of Scientology
International |