alt_religion_scientology/FACTNetARS19970725

From: Lawrence Wollersheim < XXX-Obsolete.email.Deleted-XXX >
Subject: Scientology's 12 million dollar FACTNet-destroying "settlement deal" rejected!
Date: 1997/07/25
Message-ID: <33D84BDC.2D9F@rmi.net>
Reply-To: < XXX-Obsolete.email.Deleted-XXX >
Newsgroups: alt.religion.scientology

Part One: Why FACTNet and its directors said NO to 12 million dollars...

I thought you should know why FACTNet, Arnie Lerma, Lawrence
Wollersheim,
and Bob Penny (current and former directors of FACTNet) rejected
Scientology's recent 12 million dollar settlement offer. I refuse to
keep this information and my opinions about this information
confidential because both the general public and people who may be
considering other Scientology settlement offers need to know what is
going on behind closed doors.

It began with Scientology contacting me through an agent with the
following story: "Senior Scientology executives REALLY want to settle
with you, and you will not have to sign any gag order. This time they
will not bring you the same offers you have rejected before." From my 17
years of experience with Scientology I doubted that this was true, but
just
in case, I contacted my attorney who in turn contacted Scientology.

It turned out that Scientology WAS interested in a settlement. I
went to L.A. for two days about ten weeks ago and met with Monique
Yingling
(of the law firm of Yingling and Yingling of Washington D.C.,), Marty
Rathburn, and Mike Rinder. I went into meetings in good faith and
at our expense because I knew that the conflict with Scientology was
about to escalate to a level beyond anything anyone has seen
before. Before that happened, I wanted to make at least one more good
faith attempt to see if Scientology had changed and to know that I had
done
everything in my power to reach a JUST settlement before more
escalation.

In those initial two days of meetings, operational promises were made by
both sides. First promised was that both parties were seeking peace, and
peace could only be honestly achieved by allowing each party dignity
in the settlement. Secondly, all restrictions would be reciprocally and
equally binding on both parties. And thirdly, negotiations would
continue
for settlement of the all pending and possible FACTNet and Wollersheim
law
suits. The non-negotiable payment from Scientology to us was to be 12
million
dollars. It was completely and absolutely clear to Scientology's
representatives that no settlement negotiations would continue past the
initial two days unless they agreed that 12 million was the settlement
amount.

We continued to negotiate for the next four weeks. The basics of what
Scientology sees in their minds as restrictions reciprocally and equally
binding on both parties and a peace with dignity are as follows:

That the non-profit free speech library and historic preservational
archive called FACTNet be taken off the Internet and closed forever.

That all FACTNet library databases containing electronic books,
articles court decisions, government reports and former member
debriefings about Scientology (or any other cultic organizations)
contained in those databases be completely destroyed.

That a total gag order be agreed to by Bob, Arnie, and Lawrence so that
they can never again speak out about Scientology.

That Bob, Arnie, and Lawrence are never again permitted to assist
anyone in any manner trying to fight or expose Scientology.

That Bob, Arnie, and Lawrence are never permitted to testify at any
legal
proceeding or government investigation or serve as expert witnesses
concerning Scientology without service of a real adverse supoena.

That no money from the 12 million dollar package settlement could go
to anyone continuing to fight or educate in any way against Scientology.

That FACTNet return Scientology's court-submitted financial records
and all copies of their "advanced trade secret" materials and
non-original copyrighted materials.

That humiliating false and self-incriminating public statements be
made that imply that the FACTNet research on Scientology's problem with
members going psychotic or attempting or committing suicide while
involved with their bizarre initiation rituals is not credible.

That we falsely state in a public statement that FACTNet existed
exclusively and solely for anti-Scientology activities.

That Vaughn and Stacy Young and Graham Berry be included in the total
deal.

And, if the above were not enough, Scientology wanted to structure the
deal so that only four or their many corporations, front groups, and
covert
operations would be bound by their single reciprocal restriction not to
sue, malign, or attack Bob, Arnie, and Lawrence. (They repeatedly
refused to
include the soon-to-be-non-existent Factnet in the reciprocal
restrictions.
This way they could kill FACTNet then cowardly attack a dead
organization
unable to defend itself.)

They also wanted an "agreement violation" damage clause that could
eventually amount to a flat penalty of $750,000 in damages against us
every time they proved we have violated ANY term of the agreement no
matter how inconsequentially and without showing any real damage to
themselves.

And finally, while Scientology corporations and fronts not bound by
this agreement could sue us back to the Stone Age for alleged violations
or anything else they could and would dream up, we of course, are still
bound by every single other term of the agreement as far as restricting
us from speaking out or working against Scientology.

Part 2: Other Interesting things that Scientology wanted or was
concerned about.

Scientology wanted all the Hubbard family heirs' names included in our
deal so that all probate actions to examine the fraudulent asset
transfers away from the Hubbard family heirs to David Miscavige's and
Starkey's control would be stopped (I wonder if the Hubbard Family
heirs authorized Yingling to negotiate for them as their personal
lawyer?)

Early on in the discussion, Scientology wanted a statement retracting
all statements that Miscavige's mother-in-law's suicide/murder might
have had any connection to David Miscavige or Scientology. They had
absolutely no
concern whatsoever over Lisa McPherson's death and all its publicity.
They were VERY concerned about having any more or new attention
drawn to the alleged induced suicide/ murder of Miscavige's
mother-in-law. Initially, they seemed most eager to bring this Flo
Barnet
settlement bonus back to David Miscavige.

Part 3: Other opinions and observations about the Scientology
settlements negotiations and other matters:

The longer we stayed in the negotiations the more restrictive the
terms that they added to the agreement. I had hoped that they would have
done the exact opposite. I incorrectly believed they finally would get
it and start to promote ethical settlements and start building some
peace for themselves, but given enough time they once again showed their
real agenda.

Scientology has once again conclusively shown me it has not changed
one iota from the entrapping Gerry Armstrong, Margie Wakefield, Flynn
type settlement strategies. In fact it has gotten worse in its
settlement demands.

I consider Scientology's most recent 12 million dollar settlement deal
is nothing more than a trap and a lie concerning the original 2 day good
faith agreement. Their settlement offer is inherently contrary to
rational free speech and maintaining personal integrity, and socially
would
further their ability to do evil and harm others, --- consequently there
was no other option but to reject it.

I have been in many settlement negotiations over the last 17 years
with Scientology. Every one of them has been basically the same trap or
lie. Because they have failed to learn or change I seriously doubt I
will ever enter into ANY Scientology "settlement" negotiations ever
again.

Scientology is now or soon will be trying to settle other litigation
in the U.S. and around the world. I strongly recommend that anyone
considering settlement with Scientology ignore all their settlement
efforts. From everything I have experienced it is a waste of time
and money. There is no real settlement possible with Scientology because
in their minds, "it's either us or them" and they (fueled by their
attorneys desire for endless fees) can't ever let go to make real peace
so their litigation wars never really end.

I am convinced the only way I or anyone else engaged in any litigation
with them will ever get justice is through the enforcement of the
courts.
Ignore Scientology's settlement scams. They will never give you anything
in a settlement that will allow you to live out your life with dignity.
When you stop looking for Scientology to give you something and start
taking justice and restitution through the enforcement of the courts, I
believe you
will be on the right path.

Part 4: Scientology is in big legal trouble. That's why they were
willing
to pay 12 million dollars and called us repeatedly to restart the
negotiations even after we dropped them.

Scientology is now so desperate to get out of this income and public
relations disaster, they have moved to dismiss THEIR OWN trade secret
claims in the FACTNet case and it has been granted. In this motion they
are trying to keep their current leader, David Miscavige from having to
appear in court. Their new dismissal
motion is sheer organizational terror over the Hubbard/Miscavige probate
death and asset fraud being exposed.

Think about this rush to dismiss for a moment. They are moving to
dismiss the very trade secret violation claims upon which they got a
search and seizure order to raid FACTNet. Now also consider that
Scientology has just mounted the most
aggressive attack on our Hubbard estate probate lawsuit that I have ever
seen in 17 years of litigation consulting on Scientology. Their PI's are
investigating the senior partners of Music Peeler in search of
intimidation material, and have threatened Music Peeler with millions of
dollars in countersuits and damages if we dare to try to continue
the probate law suit probe into the fraud surrounding the copyright and
trade secret asset transfers out of the Hubbard estate.

If there is one thing you learn about Scientology's litigation tactics,
the more they threaten and attack you on an issue, the more
they have confirmed that you are on the right track. They are
desperately
trying to hide another disclosure of their crimes. I hope our lead
lawfirm has
the integrity and courage to withstand a Scientology assault.

Scientology is also desperate to dismiss THEIR OWN claims in the FACTNet
case because this is the only way they can block their fraud in the
Lerma
raid. They want to ensure no one can prove that they don't own these
copyrights and trademarks, and that they don't have the proper legal
standing
to bring the copyright cases. If Factnet can bring the Hubbard/Miscavige
asset fraud
to court, Arnie Lerma would get all his court costs back, there would be
a
new trial for a huge damage award, and a lot of Scientology
attorneys and executives would face stiff jail sentences for
perpetrating such a
massive fraud in U.S. Federal Court.

Scientology has tried to dismissed their own trade secret claims in
other lawsuits like the Erlich case, once again, because they know that
their trade secret and copyright asset transfer fraud is about to be
exposed in the L. Ron Hubbard estate.

In spite of the fact that Scientology's copyrighted materials and
trade secrets are still being freely distributed all over the Net and
the world, Scientology has not filed any new copyright or trademark
infringement lawsuits for a long time or gone on any more of the
outrageous raids as it did to FACTNet and a few others. They know the
copyright and trade secret fraud is going to be exposed in the existing
legal lawsuits which they are trying to buy out or dismiss. If they
can't
buy off or sabotage the existing law suits, they certainly don't want
anyone else to have any new potentially huge counter claims against
them.

Scientology has almost never won a trial before a jury. They have a
long history of one humiliating trial defeat after another. They know
that they have created their own "worse possible legal nightmare
scenario" in the FACTNet and other copyright and trade secret cases.

Scientology really can lose almost everything in this one Internet
copyright legal battle. I believe FACTNet will win and deliver real
punishment though law to Scientology. Because of Scientology's own
abuse,
misuse, and fraud surrounding its claimed copyrights and trade secrets,
the probable results of a FACTNet's court victory include:

A stinging defense of free speech, personal privacy, and libraries and
archives on the Internet with new high technology legal precedents being
set for all three areas.

Besides the asset copyright and trade secret transfer fraud in the
Hubbard Estate being exposed with its criminal prosecution implications,
there is the connected issue that Scientology corporations have made
false claims to the IRS in regards to the ownership of the Hubbard
assets. The asset fraud when exposed has a chain-reaction effect on
Scientology's whole 1980's corporate reorganization and its continuing
or past legitimate qualification for a US religious non profit tax
exempt status.

Because the copyright and trade secrets would go back to the Hubbard
family heirs, they could at least temporarily assume control of all of
Scientology and maybe clean it up by really changing its management and
criminal policies.

The Hubbard family heirs would get back the hundreds of millions of
dollars from their legacy that Starkey and Miscavige stole.

Public loss of most of Scientology's bogus trade secret protection.

Public loss of most of Scientology's bogus copyright protection.

The chain reaction crumbling of other lawsuits in which Scientology
has sued people for trade secrets or copyrights violations.

Huge punitive damage awards against Scientology in all cases that
Scientology has sued people for trade secrets or copyrights violations.
(Anyone who has been sued by Scientology regarding trade secrets or
copyrights should make sure they have counter-suits are filed.)

Scientology's inability to bluff or con former or current members into
paying for materials which are not truly trade secrets or copyrights.
Legitimacy will have to be proved at each level, from the original
copyright creation and filing to all ownership transfers.

Scientology would be unable to extort licensing fees from members on
materials that are in the public domain.

Scientology would be stopped from using trade secrets or copyrights
for religious persecution OR for enforcing religious purity or to
establish a religious monopoly through perverting secular law.

Scientology's would be stopped from crushing religious reform
movements of ex-Scientologists seeking to use what they obtained in
Scientology in any way their religious free choice tells them.

A sea of outrageously bad world wide publicity surrounding
Scientology, entirely of its own making.

Many other chain-reaction free speech and privacy protecting effects
unforeseen at this point.

Scientology has only one real solution, but is the solution they can
never make because of their unalterable attack policy. If anyone on
their team had any sense they would simply drop all their litigation and
announce (like every religious group that eventually goes mainstream) a
new era of tolerance for the religious and other opinions of former
members and critics.

Part 5: This litigation is a huge opportunity for everyone concerned
with Scientology's assault on free speech on the net, but there
are challenges because FACTNet is in big trouble too.

Scientology knows there is absolutely no possibility of settlement under
the ridiculous terms it proposed. It must now act with even more legal
and illegal intimidation in trying to accomplish what it has always been
trying to do, the complete destruction of its effective FACTNet
adversary.

FACTNet, Bob, Arnie, and Lawrence can expect no less than a total
assault
not seen since the worst days of Scientology's old Guardians Office.
One of Scientology's lead attorneys Elliot Ableson already vowed to
drive FaCTNet and every one of its directors into personal bankruptcy if
we did not accept an earlier similar settlement offer. I have no doubt
that this is the continuing command intention of his Scientology
employer.

Scientology will not just attack FACTNnet Bob, Arnie, and Lawrence
because
it now knows if we refuse 12 million dollars, we will fight. It now
must attack the law firms representing FACTNet and if that doesn't work,
attack the court to insure that FACTNet never gets to trial to expose
their fraud. (Scientology has already accelerated its covert operations
to intimidate and undermine the lead law firm representing FACTNet to
force
them in fear to find some passable reason to back out of FACTNet's
defense.)

Besides attacking our law firms, Scientology's other main legal tactic
will be their old tried and true tactic of simply running their
adversaries out money. Scientology's "sue them to silence" tactics have
forced the average case involving them to be a 3+ million dollar affair.
(The Time magazine case cost almost 7 million and FACTNet has already
spent over 2 million exhausting all its insurance money.)

So far few have come to FACTNet's financial aid. Major news media,
governments, and major corporations who have been attacked by
Scientology
are so intimidated by this group that they appear paralyzed in fear as
as FACTNet with few assets stands up to this ruthless bully and draws
the line in the sand.

In spite of repeated requests for financial help, Internet and
non-Internet free speech, privacy, and, library advocacy organizations
have been all but invisible in this David and Goliath fight. Former
members and victims of Scientology (except for a few important
exceptions)
aren't much better. They stand frozen in fear of their former master's
legendary retaliation knowing full well that FACTNet's legal actions
could end Scientology's means to religiously persecute or "legally"
harass all former members. So far, ironically the most financial and
moral support has come from brave individuals or organizations who have
a religious background and see Scientology as a religious wolf in the
hen house and a religion at its core that is a great spiritual AND
social evil.

Conclusion

Scientology has always run on a policy of total war on any perceived
adversary. Its time to counter Scientology's TOTAL WAR take-no-
prisoners strategy. It is simply time to all come together, draw the
last
line in the sand, and stop the social evil of Scientology in its
tracks. It is time because it MUST be time. It is time not to declare
the insane total war on Scientology that it has declared on us, it is a
time to declare the total defense of free speech and a free speech
revolt until Scientology changes its behavior and drops its intimidation
litigation.

FACTNet (Fight Against Coercive Tactics Network) Bob, Arnie, and
Lawrence
will make OUR FINAL STAND against the social and criminal evil called
Scientology. We will never stop resisting Scientology's abuses because
resistance for justice is both its own truth and its own reward.

Several directors already have put up their personal property to help
finance the litigation. Who else will now come forward and be counted on
to aid and support us? Who among you will publicly STAND with us and
break Scientology's fear grip on the Internet or on their lives of so
many in the world?

We wonder what it will take for the rest of the world that knows
Scientology's abuses to come to the moral, financial, and legal aid of
last major nonprofit organization left actively supporting Scientology
victims and resisting Scientology's unethical activities all over the
world. Don't let Scientology get away with first destroying the Cult
Awareness Network then doing the same thing to us. Don't let Scientology
get away with raiding Internet privacy and free speech just because they
have more money than FACTNet and their other opponents. Please don't let
FACTNet become another one of its many other casualties.

Everyone can do something to become active in the growing global
Free Speech Revolt to stop Scientology's ongoing abuses by:

1. Boycotting ALL products that the celebrity promoters of Scientology
produce. The key products to boycott are from John Travolta, Tom Cruise,
and Kirste Alley. This will help focus world wide attention on
Scientology's abuses.
2. Telling everyone what you know about Scientology and Dianetics
abuses.
3. Picketing Scientology (and Dianetics) organizations all over the
world.
4. Financially supporting everyone defending themselves in the ongoing
legal battle to protect the Internet against Scientology's censorship
and religious persecution assault. (Go to
http://home.sol.no/heldal/CoS/litigations.html for the way to do this.)
5. Putting our new Free Speech Revolt graphic on your web page (if you
have one) as a sign of your Free Speech Revolt solidarity against
Scientology. (Come to our web page after 07/26/97 at www.factnet.org
and get a copy of the graphic.
6. Registering on our site so we can keep you informed on the latest
events of this free speech battle.

No matter what it takes, FACTNet is committed to winning the litigation
and to protecting all our valuable Internet rights, not only regarding
copyright fair use and free speech, but also e-mail privacy and open
access to information via libraries and archives.

In spite of having run out of insurance money, Factnet did the right
thing when it turned down Scientology's 12 million dollar deal to buy
Factnet out of existence. FACTNet's board. volunteers, and
supporters are determined to persevere, but we cannot do it without you
doing the right thing too and coming to our aid. Please make your
generous donation today to Factnet and forward this appeal to any other
individual or organization you think can help us financially or with
litigation assistance. http://www.factnet.org/donation.htm

I thank you in advance for supporting FACTNet in this financial
emergency. At this point, I estimate we
will only need another $250-350,000 to end and win this case. Factnet
WILL use your support effectively. To see how Factnet put past donations
to work see our tax returns and budget on our web page at
www.factnet.org/budget.htm

Sincerely,

Lawrence Wollersheim IMHO
As an Individual
(Lawrence Wollersheim is also a Co-Founder of Factnet.)

P.S. Please help e-mail this to all parties who should know. Feel free
to re-post this to all the newgroups you think should have it.