The 'Real Conspiracies' of Scientology?
As I've mentioned a few times on these boards, this has been a long-time subject of study for me. The events surrounding Hubbard's death are
questionable to say the least, with a select group of men waiting to take control of the Church. My current opinion is that some very greedy and
unscrupulous people took advantage of a very ill man towards the end of his life.
For all intents and purposes a small group of men controlled the Church in the period before Hubbard's death, but only by Hubbard's say-so. They
wanted to take complete control of the Church after his death. Among them was Terri Gamboa, Lyman Spurlock, Norman Starkey and David Miscavige, the
current Head of the Church of Scientology.
In his second will dated May 10, 1982, he named a trusted friend Patrick Broeker executor of his will with Lymon Spurlock and Norman Starkey as
alternatives if Broeker was no longer alive. This effectively gave Patrick Broeker control of the Church after Hubbard's death.
Hubbard's third will was executed the day before he died, on January 23, 1986. In what would be his last will Hubbard replaced Patrick Broeker with
Norman Starkey as executor. Patrick Broeker and his wife Anne were witnesses. They dropped out of sight relatively soon after.
Shortly after Hubbard died, David Miscavige took control of the Church, and things have gone downhill.
Gene Denk, Hubbard's personal physician was in Las Vegas at the time of death. Accompanying him on that trip was Terri Gamboa and David
Quantities of a known psychiatric medication were found in his system during the toxicology tests.
Lawyers for the Church wrote the coroner and requested that he destroy all the pictures and negatives contained in his report.
The official cause of death was a cerebral haemorrhage.
Oh, And Another Thing
Originally posted by Azeari of the Radiant Eye
It's worth noting that Hubbard's wife, Mary Sue, died just recently.
This comment reminded me of someone I hadn't thought of in a while, Norton S. Karno. For those unfamiliar with Karno, he was Hubbard's long time
tax attorney and California real estate magnate, and his name shows up in some interesting places. He helped with the purchase of Clearwater and may
have been a key figure in the Church's fight with the IRS.
Hubbard's 1979 Will
In Hubbard's original will from 1979, Karno is named executor of his estate, giving Karno control over Hubbard's vast empire. He was later replaced
with Broeker in 1982. There is also a clause in the 1979 will leaving Norton S. Karno any life insurance policy he might hold on Mary Sue at the time
of his death. Hubbard went on to establish a trust to keep the payments on the policy current until her time of death. No mention of this
arrangement was in Hubbard's final 1986 will.
Digital Lightwave is a publicly traded company in the fiber-optic industry based out of Clearwater, Florida. From their
Telecommunications service providers and equipment manufacturers deploy the Company's products to provide quality assurance and ensure optimum
performance of advanced optical communications networks and network equipment.
The company's products are sold worldwide to telecommunications service providers, telecommunications equipment manufacturers, equipment leasing
companies and international distributors.
The company was founded by Bryan Zwan, a Scientologist, in 1991. Two years later, he had a meeting with a fellow Scientologist named Brian Haney and
a Church representative known only as 'Charmaine' in the Columbus, Ohio Church offices. An agreement is made in which Haney gives $100,000 to the
Church's Super Power Expansion Project and invests $5 million in Digital Lightwave in exchange for a 49% interest in the company.
In 1995, Haney requested a review of the company finances. Zwan refused, and it is reported that there was an argument that ended in Zwan giving
Haney an ultimatum: Disconnect/divorce your wife or you can no longer do business with me. Haney's wife had been expelled from the Church, and would
have had to go through 'Steps A-E' to rejoin (I have no idea what Steps A-E are). Haney refused and Zwan told him he could no longer be a
shareholder and that if he did not sell the stocks back the company would surely fail because of internal conflicts. Zwan then offered to buy back
the stock for $2.5 million dollars.
Worried that he might lose his entire investment, Haney agreed and the documents were drawn up in February but did not sign them. Haney still
retained options that would come into effect in the event of an Initial Public Offering, but Zwan had assured him many times that an IPO was not in
the company's future. Unknown to Haney, Zwan is busy selling option rights to many wealthy people, mostly Scientologists. The person who had
purchased the largest share of the options rights was Norton S. Karno.
In November 1995, Haney signs the repurchase agreement and resigns from the Board of Directors, canceling all options he held. In 1996, Denise
Miscavige, sister of the Head of the Church David Miscavige, joins the company as Vice President of Administration. In February 1997, Digital
Lightware announces its IPO, and ends up making everyone who had purchased the options a nice sum of money.
Haney filed suit against Digital Lightware and Zwan in December 1997. In July 1998, he amended the lawsuit to include other parties, including Norton
After that there was a whole big mess, involving the fact that Denise Miscavige was using a creative inventory control method which counts unfinished
units and empty boxes as finished units in boxes. This ended in the Securities Exchange Commission of Florida launching a suit against the company
for financial fraud in connection with an earning management scheme. Some of the allegations were overstating revenues, producing false financial
statements and issuing false press releases. A settlement was reached and Zwan was fined $10,000 and had to agree not to break the law again.
Karno's name pops up in a few other interesting places, most notably as the attorney representing Scientologist Doug Neuman on the creditor list for
the Reed Slatkin
bankruptcy. Doug Newman is special because he may possibly be one of the only
people that will see anything out of the proceedings. Neuman and Slatkin were partnered in other ventures, and Neuman has made an offer to the
Trustees to buy Slatkin out of them at a reduced price.
[edit on 1-7-2005 by Duzey]