alt_religion_scientology/FACTNetARS19970407

From: FACTNet International < XXX-Obsolete.email.Deleted-XXX >
Subject: SPECIAL BRIEFING: FACTNET LITIGATION AND FINANCIAL STATUS
Date: 1997/04/07
Message-ID: <33498521.71A5@rmi.net>
Newsgroups: alt.religion.scientology

SPECIAL BRIEFING: FACTNET LITIGATION AND FINANCIAL STATUS

INTRODUCTION

As you may know, the Cult Awareness Network worked successfully for
years to expose Scientology's human rights abuses. After relentless
harassment from Scientology, the Cult Awareness Network was finally
driven into bankruptcy and out of business. With the Cult Awareness
Network out of the way, Scientology has now turned its attention and
resources into destroying FACTNet.

Scientology began its attack by filing a frivolous copyright and trade
secret infringement lawsuit against FACTNet. The FACTNet library was
then illegally entered and raided by Scientology (For complete details
on the raid and ensuing lawsuit and repercussions, see the Emergency
Briefing on our web page at www.factnet.org). Because of raid damage,
the FACTNet library was off-line and unable to assist the public for
months.

Finally, FACTNet won a court order demanding Scientology return all
computers and library materials. After ten months of costly,
labor-intensive reconstruction we have reassembled many, but not all of
our records. =

THE PRESENT

Most recently, FACTNet has retained a team of the most successful
Scientology-experienced lawyers and experts ever assembled for one
Scientology lawsuit. This new team quickly has turned Scientology's
ill-conceived raid and copyright lawsuit into a legal disaster that
could permanently change Scientology=92s infamous dissident crack-down
operations. =

Because of FACTNet's legal research in this lawsuit, large amounts of
Scientology's "proprietary" materials will now likely be acknowledged as
in the public domain. Furthermore, the remaining proprietary materials
may lose their trade secret or copyright protections because of
Scientology's misuse of those protections and their massive fraud on the
Colorado court (For the hard legal arguments and case facts on this
potential mega-disaster developing for Scientology, read Vaughn Young=92s=

declaration, FACTNet=92s Opposition to Summary Judgment, and FACTNet=92s =
new
First Amended Answer to Scientology=92s Complaint -- all at
www.factnet.org/battle.htm). The evidence reveals that Scientology=92s
great copyright and trade secret con machine is crumbling. =

In an act of massive ethical defiance against Scientology's raid,
FACTNet has not only reconstructed its original electronic library
covering several hundred coercive organizations, but we are also
preparing to open a free, searchable, web-accessible database with about
30 times the amount of information previously disclosed on Scientology
(This 1.6-gig database is near final testing now). =

Scientology=92s raid has ironically initiated the dissemination of more
information on Scientology than ever before. Since FACTNet's library
went back on-line January 1, 1997, an estimated 6,000 new people have
visited and used our new web site -- over ten times the number of users
per month we had before the raid. =

OTHER ONGOING RECONSTRUCTION WORK

When Scientology raided FACTNet, we were accumulating reports from all
over the world detailing abuse, psychosis, and suicides associated with
the group, in preparation for a grand jury investigation. We have now
reconstructed enough of our files to begin transferring this information
(70+ megabytes) to numerous attorneys, police, and governments for
investigations. Scientology has failed in its heavy-handed attempt to
stop us from gathering information. Their efforts have only served as
extra motivation to expand the distribution of this confidential
database to qualified parties. =

At the time of Scientology's raid, FACTNet was also working on a review
of Scientology's 14,000-page application to the IRS for non-profit
status for all their U.S. organizations. The raid was seemingly designed
to crush this work, along with our other endeavors. Enough of our
systems are now reconstructed to jump-start this work. We are assembling
organizations and teams of researchers to help us present to the IRS
page-by-page documentation of all the false information Scientology put
in this lengthy application. =

The IRS approved the application without calling on outside sources or
experts familiar with Scientology=92s tactics and history. In the face of=

Scientology's intimidation schemes (see recent NY Times article), it
appears the IRS simply rubber-stamped the application's claims. After
FACTNet scrutinizes Scientology=92s application and submits findings to
the IRS, the IRS may be forced to reconsider Scientology=92s tax-exempt
status and eventually remove it -- based on Scientology=92s fraudulent
application alone. =

SHARING WITH OTHERS

FACTNet is also assisting under-financed individuals recently sued by
Scientology on similar frivolous charges. We share with all those sued
by Scientology our expert legal research, legal briefs, and resources.
Thus the insurance policies funding our litigation benefit not only
FACTNet, but everyone Scientology sues. This results in the exponential
multiplication of the power of every FACTNet insurance dollar and
library resource for the ultimate good of every Scientology victim.

THE FUTURE:

Based on 16 years of personal experience winning more court cases
against Scientology than anyone else, I believe FACTNet will win this
case and deliver real punishment though law to Scientology. Because of
Scientology=92s own abuse, misuse, and fraud surrounding its copyrights
and trade secrets, the possible and probable results of a FACTNet court
victory include:

1. Public loss of most trade secret protection. =

2. Public loss of most copyright protection. =

3. The crumbling of other lawsuits in which people have been sued by
Scientology for trade secret or copyright violations.
4. Huge punitive damage awards against Scientology in all cases that
use FACTNet legal research and briefs (I have won $2.5 million in
punitive damages in two cases against Scientology already. Anyone who
has been sued by Scientology regarding trade secrets or copyrights
should make sure counter-suits are filed.) =

5. Scientology's inability to con any former or current member into
paying for using materials which are not truly trade secrets or
copyrights; Scientology will have to prove legitimacy at every level,
from the original copyright creation and filing to all ownership
transfers.
6. Scientology's inability to extort licensing fees from members on
materials that are in the public domain.
7. Scientology's inability to crush the religious reform movements of
ex-Scientologists seeking to use what they obtained in Scientology in
any way their religious free choice tells them.
8. A sea of outrageously bad publicity surrounding Scientology,
entirely of its own making, for truly =93you can fool some of the people
all of the time, and all of the people some of the time, but you can=92t
fool all of the people all of the time.=94
9. Many other chain-reaction effects unforeseen at this point.

FACTNET'S CURRENT FINANCIAL STATE

Due to costs incurred by the lawsuit, the raid, and the library's
reconstruction, FACTNet has gone into emergency debt and has fallen
behind in its operating costs. We have not asked for your financial
support for almost a year. But without immediate financial assistance,
FACTNet is a short time away from a devastating financial deadlock.

Right now all that is needed to win this legal war in a catastrophic
defeat for Scientology is the money to keep the organization running.
Daily operations and critical old bills will cost about $15,000 over the
next 90 days. After meeting these operation costs, FACTNet will have the
breathing room to begin building the additional litigation funding
necessary to continue the suit with Scientology even after our legal
insurance runs out in the near future.

TAKE ACTION TO SUPPORT THE WORK AND RESULTS YOU WANT

Everyone who believes that human rights abusers like Scientology should
be stopped with law, education, and courage, has a part in FACTNet's
raid and legal battle. Through your previous support, on the net or
financially, you have been and still are a crucial part of defeating
Scientology=92s bully tactics. =

If you value what FACTNet has done to gather information about
Scientology and stand up to its intimidation, and if you value what we
will attempt to do to bring Scientology to justice, please help us make
it happen with your financial support. Please make your most generous
possible tax-deductible donation today by phone, credit card, or check
(FACTNet is a 501(c)(3) non-profit organization). =

BY PHONE
Your donation may be charged to your phone bill. For a $30 donation,
call 1-900-950-0001. For $15 call 1-900-950-9900. For $4.95 call
1-900-868-8900. You must enter FACTNet's ID# 3001444. There is no
additional fee (For details see before
calling). =

BY CREDIT CARD
Credit card donations may be sent electronically and securely with
Cybercash from our web site at or you may
write down your credit card information and mail it to us (Include name
on card, amount of gift, card type, card number, and expiration date). =

BY CHECK

Checks may be made payable to FACTNet, Inc. and mailed to FACTNet, Inc.,
PO Box 3135, Boulder, CO 80307-3135.

I thank you in advance for supporting FACTNet in this financial
emergency. I promise we will use your gift effectively (To see how we
put our past donations to work, see our financial statements and budget
on the web page at ). =

In addition to our tax returns and our published budget, each month
starting April 30 we will publish on our web page all the donations
received the previous month and how they were used, something you will
never see Scientology do for any of its =93non-profit=94 organizations or=

affiliates. =

For all the years I have been involved with lawsuits against
Scientology, the group has tried to run my litigations out of money.
They have not succeeded before, but still persevere. =

At the Clearwater demonstrations, Elliot Abelson and Mike Rinder
approached the car I was in. I asked, =93what are you going to tell your
members when they find out Scientology fraudulently filed public domain
materials for copyright?=94 Mike Rinder answered, =93You're not going to
have enough money to prove it.=94 Then both Rinder and Ableson broke into=

big grins. Scientology=92s only hope in this case may be to deplete our
resources so that they win the litigation by default. =

I have won four major personal cases against Scientology and have helped
to win many other cases against Scientology. I will use everything I
have learned from this successful litigation experience and do
everything ethically within my power to hand Scientology a well-deserved
legal defeat. =

If you believe that your support is best given to individuals and
organizations who have been successful against Scientology, who
Scientology itself considers a major threat, then send your support to
us. Please don't let FACTNet become the next Cult Awareness Network.
Don=92t let all our reconstruction, improvement, and work projects be
jeopardized. Don't let us lose this hard-won legal opportunity to
finally deliver Scientology a most devastating legal defeat. =

FACTNet=92s Board and FACTNet=92s supporters are determined to continue o=
ur
work, but we cannot do it without your help. Please make your donation
today and forward this appeal to anyone else you think can help. =

Lawrence Wollersheim, Director
Arnie Lerma, Director
FACTNet, Inc.

P.S. I include this recent media quote to highlight the importance of
the FACTNet fight:

"If (Scientology's) lawsuits prevail... future providers of bulletin
boards and newsgroups on the World Wide Web, as well as the companies
running such subscriber services as Prodigy, Compuserve, and America
Online might be forced to monitor or restrict information simply because
they fear being sued... If system operators are liable for the content
of the postings, it will lead to censorship... It would change the whole
idea of how the Internet develops -- it's that important. =

--Shari Steele, attorney for the Electronic Frontier Foundation, as
quoted in "The Net: Copyright or 'Free Press'?" Newsday, 10/10/95

E-mail: < XXX-Obsolete.email.Deleted-XXX > =

Web site: