SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES

DEPARTMENT NO. 57 HON. PAUL G. BRECKENRIDGE, JR., JUDGE

REPORTERS' DAILY TRANSCRIPT

Tuesday, June 5, 1984

Volume 25

Pages 4365 to 4547, incl.

APPEARANCES:

4498

Q And, incidentally, what were your wages at ASI?

A I think we had a base salary of $160 which we actually got clear something like $121 after taxes which was to be used to pay for — well, $20 was to go to our rent of living at the Complex which was the Scientology Complex.

If we ate our meals there we had to pay $1.75 per meal. It was used for any medical that we made need, any clothing that you had to buy, any pressing or cleaning of our suits or for our general, you know, anything else that we needed.

Q The money was taken for those items out of your wages?

A No. We were given a check for $121 and, you know, some cents. And we were just obligated to either — you know, if we got sick, we were obligated to save enough money out of that particular portion of it to be used for future dental or, you know, medical needs or vitamins, whatever. And we were obligated to, you know, give $20 a week over to the organization at the Complex.

Q Was that, to your understanding, the minimum wage at the time?

A I really didn't think of it at the time. It couldn't — if I figured how many hours I worked, which was probably 80 to 100 hours a week, I'm sure it didn't equal the minimum wage which I know to be $3.35 or something today.

Q All right. Now, at some point in time you were ordered into a security check; is that correct?

4499

A I had several.

Q How many did you have while you were at ASI?

A Two prior to leaving and one as I — when I wasn't at ASI. I had been removed from post and I had it over at the Complex.

Q The two you had at ASI, what happened in those?

A Well, the first one was actually out at CMO Int which was at Gilman Hot Springs. They were suspecting that something was going, you know, awry with me, my post functions.

I was not a stellar person on post and I wasn't performing the way David Miscavige thought I should perform.

And I was awoken up in the middle of the night, like 4 o'clock in the morning one Sunday morning and taken into a Sec Check with three people, with Jesse Prince, who was the auditor for awhile, Terri Gamboa, and Doug Hay.

4500

After a while Jesse had to leave and Terri became the auditor and Doug Hay were there, of which they kept falling asleep on me. Both of them were sitting across from me, not there, just completely asleep, and I'd have to knock on my desk or go (indicating) make noises to wake them up.

Of course, they were trying to find out what was going on, you know, why was I committing these overts on post, an overt being even failure to do your job as an overt of omission because you are omitting not to do your stellar-type job.

Of course, I was flabbergasted in the sense, first of all I was being the term that later came into being, the term gang banged sec checked because there was more than one person. Nothing in policy, but then to have my auditor fall asleep on me.

That was nothing compared to the sec check that happened around the 30th of October, around 10 o'clock at night at ASI at 6464 Sunset Boulevard.

Q This was on the premises of ASI?

A Yes, in the offices of ASI.

Q And this was a for profit corporation under California law to your understanding?

A That is correct. I think I was even an officer because I had signed some documents with no date on it so that if I was ever removed from post, they could, in turn, put a date on it or if anything ever happened, which was a common church policy which I observed even in Clearwater

4501

Q What happened in this October security check?

A Well, certain events happened prior to that. There was a large gold deal that was suspect of going sour, a few hundred thousand dollars which I had no knowledge of, which all of a sudden Doug Hay, who was my senior who was responsible, tells the DM, which was David Miscavige, and he just blew, was just — he went psychotic.

Prior to that he supposedly found out that I had used a girl by the name of Ellen Reynolds to do some audits on LRH's accounts to bring them up to date give enough data to the accountant that was used by LRH, Marty Greenburg, so he could file his 1981 tax returns which we had already gotten the maximum number of extensions.

Q Well, so –

A These two things together really turned DM into a psycho again. I mean, it was like a common occurrence as far as I was concerned because it is like he exhibited this every time I was in the office.

Q And David Miscavige held what post in Author Services, Inc.?

A Well, all reports that I wrote up to LRH would go through him and Terri Gamboa, Terri being the ED of ASI and David Miscavige COB, Chairman of the Board, or I would say GM, one of the two. Sort of like it didn't really make much difference. He was the top dog and there was no doubt that he was running ASI and the church.

Q All right, now did Miscavige order you into a

4502

A He immediately ordered me into a security check.

I was dragged into a room the size of this witness stand which also had a table in it, and then Nan Starky was sitting across from me with the door behind her which was open.

There was maybe about a foot of room on my left side.

All down the hallway the whole staff of ASI were there, including Terri Gamboa, Norman Starky, Pat Brice, Lyman Spurlock, David Miscavige, Fran Harris, Fred Harris, Becky Hay.

Q How long did the security check last?

A Ten hours. It lasted from about 10 o'clock in the evening to 8 o'clock in the morning. About 6 o'clock in the morning the staff of AS1 left because they had to go out to CMO Int.

During this time I was just bombarded with these questions asking who was I working for. Was I working for the CIA? Was I a plant? Was I working for the FBI?

Where was all the money I stole. Where are all the jewels I stole.

David Miscavige would sort of peek his head in when he would be there for maybe a half hour and leave. He would peek his head in and look at the meter and say, "Ah hah, something read there. What crimes did you commit? What does that mean?"

It was like an intimidating type thing.

He said, "I am going to fix you." Put a wad of tobacco back in his mouth. Gave a bit to Norman, and he

4503

Then, after, somewhere between fifteen minutes to a half hour, he came in and said, "This is the last time. Tell the truth. Come clean."

Prior to that Norman Starky threatened me that if I didn't come clean, the same thing that happened to Eric Wallery and to Peter Gillam, who were church members at Gilman Hot Springs, which was an intimidation because they apparently had embezzled some money and stole some silver, and they were threatened with — in fact, it is by Mr. Heller, I was told, at Lenske, Lenske & Heller because he had connections in the D.A's office, that they were going to make sure that I spent a good deal of time in jail and he said, "Don't worry about the evidence. We will find people that will testify against you, no matter what crimes we come up with." Otherwise, they were essentially saying that they were going to find witnesses to perjure themselves because I knew I hadn't committed anything.

Anyway, then he came in at a later time and spit in my face with tobacco juice during a sec check, which is heresy, if you want to think of Hubbard as a god and his technology, and then Norman did the same thing.

Q Norman Starky?

A Norman Starky did the same thing, and I had sort of been good friends with Norman for a good number of years. For a long time he was the captain of the yacht Apollo, you know, and we always had a good relationship.

4504

Q Now, was this security check to your knowledge intended for you to get some spiritual gain, Mr. Schomer?

A Well, I was going to be facetious and say maybe on some other planet, but it couldn't possibly have been. There is nothing in policy to this day that I know of that authorizes or condones a gang bang sec check of more than one person. A sec check, even though they say they can use the data against you for further action, there is nothing in policy that says more than one person is there.

4505

Q All right. Now –

A And sit in your face is, you know, that is — well, I have already said it. So –

Q Now, was Mrs. Gamboa present throughout most of the security check?

A She was present through most of it and knew I was there from 10 o'clock when they started until they left to go to CMO Int to the rest of the staff at 6 o'clock in the morning.

So her testimony that it only lasted an hour was BS, completely fabricated.

Q And Mr. Spurlock, was he there through most of it?

A I just saw him once or twice. He never actually came close to me and fired questions like the rest of the staff were doing and told to do and blaming me for possibly, you know, our gross income to LRH being down and, you know, that possible loss of bonuses that was going to be lost that was money out of their pockets because of bonuses that they wouldn't make.

Q Were you familiar with a situation in which James Isaacson under power of attorney for LRH had lost some money in an investment?

A Yes.

Q And did L. Ron Hubbard that several hundred thousand dollar loss in the investments be billed to Jim Isaacson?

A Yes. I saw the documents.

4506

MR. HARRIS: What is the relevance?

I move to strike it, Your Honor.

THE COURT: What is the relevance, counsel?

MR. FLYNN: Control, Your Honor. These people all were supposedly working for an organization called ASI; at the same time they were running the Church of Scientology. And here is the client of the corporation ASI billing one of the employees for lost investments.

THE COURT: When did this purportedly happen? Was this after you were at ASI?

THE WITNESS: Yes. This was during the time I was at ASI.

THE COURT: I'll let the answer stand.

Q BY MR. FLYNN: During the period of time — after the security check were you locked up?

A Yes. I was locked up under guard for the next two days.

Q Who was the guard?

A It was actually an auditor. His name slips my mind right now. I probably have it in my briefcase that I wrote it down. But I am not sure.

But he really didn't have any knowledge of why he was guarding me. But he was –

Q At some point in time did you manage to leave?

A Yes. On Sunday morning, he — while I was in the shower he said he was going down to change clothes because he thought he was guarding me for some spiritual reason, so I could get some good rest to further my spiritual release

4507

Q Did he tell you that?

A Yes, he did.

Q All right.

A And the minute he told me that and I heard the door slam, I got out of the shower; got dressed and got the hell out of there.

Q Where did you go?

A I went to a friend of mine's house, Olivia Washours.

Q Had you left all your belongings behind?

A Left with the clothes on my back.

Q At some time did you return to get your belongings?

A Well, I called up Nan Starkey, who was the organization officer, and actually the only one that would be around because everybody else had gone around to Gilman Hot Springs; I reached her at ASI and told her I was not blowing per se; I had just had to go out and get some exteriorization because I was in fear of what had to happen, what was going to happen to me. I had to think things over.

She immediately started attacking me and told me that all of CMO was out looking for me; I should get my ass back immediately.

I said, "Wait a minute."

She kept spouting out at me.

I said, "I'll be back sometime later."

Q What was your fear, Mr. Schomer?

4508

A I was in fear of my life, knowing I had been Sec Checked for 10 hours, not allowed to get up to go to the bathroom; not allowed to sleep; not allowed to have a drink of water; not allowed anything, just questions firing at me. You tell me what I'm supposed to have done, and I'll tell you if I did it or not.

And they wouldn't allow me that type of a thing.

I didn't know what they would do. And, you know, knowing of things like I had mentioned about, well, the threat that Norman Starky made to me about he was going to put me in jail and they were going to throw the key away and have these witnesses say what I supposedly did, to be convicted or whatever, I mean, there are many, many things including me being assassinated or wiped out, you know, that entered my mind.

Q All right.

Now, were you fearful that they would come and get you if you didn't come back?

A I knew if they knew where I was at the time they would come and get me.

4509

Q Then what happened?

A I was — when I hung up the phone, I was sort of trembling and I didn't really know what I was going to do, and then I decided that I was going to go — I was going to flee the city for a while, and I made reservations to go down to Miami to stay with my brother, and I called my brother up and I said I was coming in that evening and that I'd be down to see him.

Q And then what happened after that?

A Then I went for a ride with Olivia. Went down to the beach. I was just trying to destimulate a little a bit, and we were riding around in my car and on the way back my car broke down and the fuel pump was broken.

Q Well at some point –

A I parked my car and that evening she took me to the airport or, no, she didn't take me. Another gal that was visiting came to visit her took me to the airport, and I fled to Miami.

Q Now at some point did you return?

A Yes, I did.

Q And when did you return?

A I returned 10 days later.

Q And for what purpose did you return?

A Well, because Terri Gamboa — well, my daughter, who is still in the CMO in Scientology to this date, called me up and asked me what was happening because I had told her I was leaving, and she called me up and told me I should come back.

4510

Then, Terri Gamboa got on the phone and told me that I should come back immediately, and I told her well I'd think about it. But I had planned on coming back seven days later.

Q Terri Gamboa was with your daughter when this took place?

A Yes.

Q Did you get concerned for the security of your daughter?

A Oh, yeah. I really didn't know what was going on. My daughter, who was actually working as a church representative in ASI at the time to receive communications between the church and ASI, and they had it worked out some way so it wasn't sort of an inurement situation, but she later was fired or kicked out of ASI for being a security risk.

Q So you returned to ASI. Then what happened?

A I returned to ASI. I was under armed — not armed guard. I was put under guard, of which I stayed until basically I left.

Q How long were you under guard?

A Well I left the 23rd of December, and this — I came back around the 10th of November, telling them that I had to be — I had to be in Boulder because I had told my sister I was going to be there for Thanksgiving. I was in such fear of my life that I even told my sister who happened to be coming down to visit my brother, who stayed with my brother in Florida, that if I didn't call her every

4511

Q Now –

A Which they didn't know at all during the time that I was — I didn't use that as a threat to them to stop them from holding me.

Q Now, throughout this period of time it was your understanding that you were an employee of a for profit corporation?

A Yes. ASI definitely was, right.

Q All right, now, just very briefly, was there a communication link, a direct communication link to Mary Sue Hubbard from ASI while you were there?

A Yes, many, every week.

Q And did an individual named Nevil Potter bring her communications to you?

A Yes, any communication that might have to go to LRH or — would come from her via him and would be given to Terri Gamboa or to DM. Usually Terri because DM wasn't there all the time and anything that had to go to her went via him back to Mary Sue, and I know this was — I saw various documents. I heard DM and Norman Starky and Terri Gamboa talk very derrogatorily about her, using very filthy language, calling –

Q But there was a direct communication link?

A Yes.

Q Was there any commercial mail service involved?

4512

A No commercial mail service.

Q Was there a direct communications link to L. Ron Hubbard?

A Definitely was.

Q What was that?

A Well, every week we wrote our reports and we even made a tape that went up to LRH of ASI staff meetings, telling him — every person would tell him of the winds and the flaps for the week and the stats and so forth. We'd be up all Thursday night writing reports to him which were then critiqued by our seniors and DM and Terri, and then later Pat Broeker out at CMO Int at Gilman Hot Springs.

4513

And then it would go to LRH; in fact, a routing was not to LRH, but, of course, they always had the asterisk which meant LRH. So that if anybody found it, it could never really be proved that that was, you know, that it went to him. But the asterisk was him. And anything that came back from him, you know, had the asterisk down at the bottom of the report.

But many times there were reports that I would write that would come back and then his handwriting would be at the top which is, you know, very distinguishable, saying, you know, "Very well done," or writing two or three lines or something in his handwriting, you know.

Q What were the actual circumstances whereby these reports were collected and transmitted?

A The circumstances?

Q Right. And where did you go and what did you do?

A Well, every week on Thursday after 2 o'clock, which was the end of the Scientology stat period, we would finish off our work week and write our reports. One big thing that I had to do was I had this transaction and balance sheet which concerned all of LRH's assets and any monies that were received that week and what bank accounts and so forth they went into; plus my weekly report of what things that I had done during the week and what project I was working on all went — after I finished writing them, then they would go to my senior. And I had two at times. I had different — I mean initially it was

4514

And then he would review all of the reports and then we were out at CMO Int, he would take them all in a box because they all went in a special box. And he would take them to a cabana at Gilman Hot Springs where Pat Broeker was. I know Pat Broeker was there because I met with him personally in that cabana. But often when I was going down to the cantina to eat, in the darkness I would look through the blind and see him in there talking to Terri Gamboa, Norman Starky, and often Lyman Spurlock.

And I knew they would then have to go up to LRH because they came back, you know, to ASI. And LRH had seen them and written comments or wrote another report back to me telling me what to do, you know, for the next week, that type of thing.

Q And this was going on on a weekly basis?

A On a weekly basis.

There were also some times checks that I would have to write, a CSW to LRH so that money could be transferred from either his foreign accounts or his local accounts to ASI accounts to be used to either pay his bills or for investments or maybe to open up a new bank account or a new broker account where his signature would be required.

Q Now, was ASI billing Orgs around the world at that time for management duties for the Church?

MR. HARRIS: I'll object to that, Your Honor.

4515

THE COURT: I think I'll sustain the objection.

MR. FLYNN: That is all I have, Your Honor.

THE COURT: You may cross-examine.

MR. FLYNN: One other question, Your Honor.

Q When did you first meet me or talk to me, Mr. Schomer?

A The first time I met you was — What is today? I don't remember what day it is.

Tuesday. I met you Sunday night. I met you late Sunday afternoon when I came into Los Angeles.