In Part 4 of our series on Scientology financial crime, we conclude our look at the evolution of Scientology as a criminal enterprise, specifically at how Scientology’s many rackets have evolved over the last 20 years or so under the authority of David Miscavige. Having essentially abandoned auditing in favor of less risky income streams, we look at the “Golden Age of Tech,” “Super Power” and other scams such as the “Ideal Org” real estate portfolio racket and their place within the criminal enterprise that is Scientology in the 21st century. Lastly, we’ll examine Scientology’s vulnerability in the post-9/11 era of financial regulation. However, before we return to examining David Miscavige’s and Scientology’s behavior during the Lisa McPherson trial that we described in Part Three, it’s important to establish some additional contextual understanding of several key events in the mid to late 1980’s that influenced not only church behavior during the McPherson trial, but also served to shape the church’s behaviour and culture within Scientology into the present day. Continue reading “Scientology Financial Crime Part Four: Miscavige’s Golden Age of Grifting”
In Part Three, the penultimate segment in our examination of the third era in Scientology’s criminal evolution, we’ll look at how David Miscavige’s assumption of power reflected a continuation of Hubbard’s obsession with Scientology’s ruthless utilitarianism, as well as how Miscavige’s own violent, thuggish temperament reflected a Gotti-like use of fear as his primary mechanism of control. We’ll also examine how Scientology’s use of the legal system shifted from the harassment-focused days of Hubbard to a more nuanced strategic approach, as well as how several key incidents that occurred under Miscavige redefined how Scientology’s La Cosa Nostra (“This thing of ours” or “Our thing”) -like mindset operates to this day. Continue reading “Scientology Financial Crime Part Three: Miscavige’s 20th Century Mob”
Earlier this week, Keith Raniere, the leader of Nexium (pronounced “Nexium”), a cultic group headquartered in Albany, New York, was arrested in Mexico after fleeing the US and swiftly extradited back to the US for trial. He’s accused of sex trafficking in conjunction with a secret “sorority” made up of Nxivm members who agreed to function as slaves for him, and who were branded in their pelvic region with his initials. There are other investigations pending that may result in further charges.
Though Nxivm never achieved the success of Scientology in its 20-year history, there are some interesting parallels between Nxivm’s modus operandi and Scientology’s as well as some parallels between Keith Raniere and L. Ron Hubbard’s claims about themselves. We look at some of these parallels and try to determine whether there’s any way to use the accelerating collapse of Nxivm to predict the endgame for Scientology, particularly in seeing how activists can target their efforts to hasten its demise. Continue reading “NXIVM Cult Leader Arrested: Parallels with Scientology?”
Last Thursday, the Los Angeles Times ran an op-ed piece by Scientology leader Miscavige’s consigliere, tax lawyer Monique (“Blinky”) Yingling. In it, she rebuts a Times op-ed piece that ran back in November that made a case for revoking Scientology’s tax exemption.
We analyze this message — the content, the timing, the larger context of interest in the tax exemption, and we make an emotionally unsatisfying but intellectually honest decision in processing it. Continue reading “Analytical Techniques: Don’t Overreact to Single Data Points”
We take another look at how Scientology misuses R-1 religious worker visas as it attempts to fill slots in its operations. It’s no longer able to bring on enough new domestic recruits or even US citizen children of current members to staff up Flag, Pac Base and its other major operations. We look at the line between accidental stretching of the bounds of the program and outright fraud. Several reports suggest that Scientology misuses the “guardianship” provisions of the law to mistreat younger R-1 visa holders, crossing the line into human trafficking. Continue reading “Scientology’s Continuing Abuse of Religious Visas, Human Trafficking and the Farce of Guardianship”