Settin’ the Record Straight

Rachel Denk is a productive member of the independent community, having contributed finances, meters, books, lectures on CD, lectures on cassette tape, an LRH framed photo, friendship and advice, and lots of data. She comments on this blog as Hallelujah and TheWidowDenk. It is her sincere hope that – through her contributions – others are made aware of the gross misapplication of Source by Miscavige and his minions, and find the initiative and wherewithal to do something about it.  She has shared with me the facts surrounding the church’s treatment of legendary Scientologist, L Ron Hubbard’s personal doctor, and her husband Dr Gene Denk.

Dr. Denk was head of the Shaw Health Center. His many years of service to Hubbard, Sea Org and staff members, and public Scientologists created a large, loyal patient base. Chiropractor Stephen D. Price was Dr Gene Denk’s partner and, supposedly, his friend.

After Hubbard died and Miscavige anointed himself king, Stephen Price apparently began to value another “friend” more highly than Dr. Denk. Stephen became a personal pet of Miscavige, visiting him every weekend at the Int base since the eighties to the present.  Stephen gave Miscavige chiropractic services and special, lengthy massages.  He also regularly went out to play golf and go to the movies with Miscavige, and when at the Freewinds they would go scuba diving and to lavish dinners with one another.  Miscavige had Price hang around the base all weekend long (almost every weekend, and many times extending into the work week) for years waiting for whenever Miscavige needed or wanted Stephen’s magic fingers or a recreation break from his fellow Sea Org members whom he considered to a one to be riff raff.  For the last two decades Price has regularly accompanied Miscavige on his trips around the world, along with Miscavige’s entourage of hairdresser, stewards, and chefs.  Whenever Price happened to mention a personal problem with any org, Miscavige would be on it like white on rice, as if Tom Cruise himself had squealed like a stuck pig.

Price, no doubt, received an earful from Miscavige about Dr Denk.  Miscavige nattered heavily about Dr Denk.  Seems Dr Denk missed all manner of withholds while serving L Ron Hubbard in his final years of life, while Miscavige was calculatingly positioning himself to use Hubbard’s name and fame to rocket himself into a position of unquestioned power and wealth.

Dr Denk passed away on November 5, 2004 after a 10 month painful bout with cancer. Less than a month before his death, Stephen Price caused a “To Whom It May Concern” letter about Dr Denk and his wife to be delivered to the Denk household where home care was nearing the end-of-life stage. Rachel intercepted the letter before it reached Dr Denk’s eyes as it certainly wasn’t going to assist his spiritual or physical care.

The document has been transcribed here for easier reading (a scan of the actual document can be viewed at the end of this post)

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

SHAW MANAGEMENT CORPORATION

5336 Fountain Ave. Los Angeles CA. 90029

10/10/2004

To Whom It May Concern:

Shaw Management Corp., DBA Shaw Health Center, (SMC) is a corporation for the purpose of managing the administrative aspects of health care services to the general public. Gene Denk and Stephen Price are 50/50 share holders in the corporation.

SMC was located and operated out of the property 5336-38 Fountain Ave. Gene Denk and Stephen Price, as individuals, own the property at 5336-38 Fountain Ave. SMC leased the property from Gene Denk and Stephen Price.

The structure of SMC was that all gross earnings of Stephen D. Price and Gene Denk, as well as the independent contractor health care providers were to be paid to SMC. From those Gross earning, ½ were to be used to pay overhead, equipment, administrative and other financial obligations of SMC. The other half of the gross earning was distributed back to the health care providers, including Stephen Price and Gene Denk.

Gene was absent from SMC for two years (1984-86). During this time he made no contributions to SMC, notwithstanding he was earning money as a health care provider elsewhere. During this time Gene did not contribute any income to SMC. Consequently, Gene contributed nothing toward the overhead, equipment, administrative and other financial obligations of SMC.

While Gene was gone, and contributing nothing to SMC, Stephen continued his practice full time contributing his gross income to SMC. Out of that Gross income (approximately $500,000.00) SMC kept approximately $250,000.00 of that gross income to pay overhead, equipment, administrative and other financial obligations of SMC.

Between Gene and Stephen, Stephen was the sole income contributor to SMC. For 2 years Stephen was solely responsible for the administration of SMC with no help from Gene, reasonably valued at $500.00 per week for 104 weeks = $52,000.00.

Stephen has reason to believe that Gene received over $350,000 for his work elsewhere. (This is only an estimate, as all the exact data has been withheld from Stephen throughout the cycle.) All of Stephen’s and SMC financial data was passed to Gene through Rachel throughout the cycle. When Gene returned he used the money he made elsewhere, that should have passed through the corp., to loan to the corp.

In 1986 when Gene returned to his practice at SMC he loaned $100,000.00, to SMC. The check did not come from Gene, it was written by a church related organization to SMC. This caused Shaw to pay taxes on it as income and allowed Gene to avoid paying personal income tax on it. Accordingly Gene got a personal tax benefit at the expense of SMC.

To bring all things equal Stephen will need all his contributions of ½ his Gross income back from the corp. and his full pay for administrative work. Plus ½ of the total taxes paid on the $100,000.00 and Gene would get his full 61,000.00 from the loan.

The Truth of the matter is:

All debts and financial obligations undertaken by SMC are the sole responsibility of SMC and must be paid solely from SMC assets, if any. The Property at 5336-8 Fountain Ave. is not an asset of SMC.

The SMC corp. is no longer in business and is unable to:

  1. Pay Stephen for the administrative duties performed
  2. Return the $250,000 of Stephen’s own money contributed for 2 years.
  3. Refund the taxes paid for the 100,000.00
  4. Pay Gene back the balance of the loan to SMC.

SMC went out of business when Gene decided to form Optimum Wellness Medical Group and separate out chiropractic, massage and vitamins from Medical. Gene’s decision ended any chance we would have of collecting any monies from SMC.

Sincerely

Stephen D. Price

Secretary, Shaw Management Corp.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Twenty years after the fact, twenty years in which Stephen Price spent perhaps more time away from the office servicing David Miscavige than at the office, Stephen Price hounded Dr Denk on his death bed regarding money.   His basis of claim is that Dr Denk allegedly did not share his earnings from his service to L Ron Hubbard during the last 1 ½ years of his life.  1 ½  years in which Dr Denk had to leave his family, spend months at a time holed up in remote hotel rooms at the direction of Miscavige to be “on call”, cross state lines and start all over on a moment’s notice, and always be there to assist when Hubbard called on him.

Here is the punch line.  Rachel Denk, who helped handle Dr Denk’s finances and coordinated filing of his tax returns, never heard of the $350,000 that Price, twenty years after the fact, alleged existed.  Legal Director Author Services (ASI) Ryland Hawkins vouched for Price’s allegation claiming to have documentation of the payment.  (Note, I held the Legal Dir ASI post from its inception through a year beyond Hubbard’s death, and then subsequently worked for Miscavige for another seventeen years – and I can tell you such a representation/reg tag could not and would not happen absent being ordered by Miscavige directly.)

Shortly after challenging this nifty set up, Rachel Denk, who worked at ASI for many years on the Writers of the Future activity, was inexplicably and rapidly routed out of ASI, treated like a security threat.

Rachel never caved to this con.  After Gene’s death and after enduring an IAS reg assault to take out a home equity loan to donate to the IAS because “Miscavige has a really big situation,” Rachel was treated with increasing disrespect by the radical corporate Scientology corporations.

Recently, in order to clear the air on this saga, Rachel requested copies of the documentation that Hawkins claimed to possess about Dr Denk’s “secret” earnings.  Her written request has been ignored.

Rachel asked me to analyze the situation from my experience and substantial bullpen data on ASI and the Estate of L Ron Hubbard.   Having no access to records I can only speculate.  Overall, it sounds to me like a sick sociopathic game of David Miscavige; pimping Stephen Price to play David Miscavige to Gene’s L Ron Hubbard.  Enturbulating, lying, and cheating him to the grave.

Here is further opinion, with facts provided in order to support that view.

Pat Broeker, who coordinated Estate matters and finances during Hubbard’s last five years on the road and at the Creston ranch, and David Miscavige put the church’s tax exemption at serious risk in the eighties because they could not account for the millions of dollars of cash relayed by Miscavige to Broeker to keep Hubbard’s operation operating over the years.

After Hubbard’s death, while we were negotiating with the IRS for tax exemption of all church related entities, the IRS required a detailed accounting of Hubbard’s Estate as a starter.   Miscavige used the predicament in his inimitable Machiavellian way to scare Broeker away from asserting “church” leadership because of his alleged personal criminal liability surrounding 1.8 million dollars that Broeker had received but could not account for.  Miscavige assigned attorney Monique Yingling to supervise a several month project wherein Broeker was made to hole up at Creston and through “creative accounting” make the missing 1.8 million dollars magically re-appear.

I know that a tremendous amount of that “creative accounting” involved Broeker doctoring a pile of receipts he possessed to add defensible significances to them.  Beyond that I do not know how Broeker, Miscavige, Yingling and Norman F. Starkey (the nominal executor of the estate of L Ron Hubbard, working for de facto executor Miscavige) managed to pull it off. I do know for a fact they were 1.8 million short and somehow wound up after several months “accounting” for it.

Knowing all this, I offer a possible scenario, that — while speculation — is far more credible than Miscavige’s silence.  That is, the Miscavige team created a half dozen or so “big ticket” item expenses that were never in fact expended to cover the substantial shortfall.  They could have carefully monitored Denk’s and other possible imaginary recipients’ tax filings to create income that would never be noticed or questioned by the IRS, given the timing and status of Hubbard’s final returns and the final returns of the “recipients.”  Not undoable, given that Denk along with other potential recipients had their returns prepared by compliant, cooperating Scientologist tax preparers.

Caveat.  This is speculation and opinion.  But, I feel comfortable sharing my thoughts given these facts:

  1. I witnessed Starkey and Miscavige joking on numerous occasions about the ongoing “creative accounting” project of Broeker.  They thought themselves so clever by killing two birds with one stone: a) keeping Broeker off church management lines, and b) defrauding the Internal Revenue Service. I know for a fact they had to create 1.8 million dollars of “expenses” during the lifetime of Hubbard retroactively  – which they did to the satisfaction of a skeptical Internal Revenue Service.
  2. Rachel Denk – like the authorities investigating the death of Biggi Reichert, e.g. – was flat out stonewalled by Miscavige’s Author Services Inc (ASI) when seeking to investigate the mystery.
  3. There should no longer be a mystery as a great deal of information has now been made known to set the record straight. There is no possible reason for Miscavige to hide the ball unless of course disclosure would reveal fraud of the order of magnitude I have surmised here.

In short, the entire matter reeks of the skullduggery, fraud, deceit, cover up, vengefulness, and just plain nastiness that are the trademarks of David Miscavige.

If he has a better explanation, I am all ears.

179 responses to “Settin’ the Record Straight

  1. Man, I love these past few posts, Hard hitting INVEST’s. RIP Gene Denk, another example of anothe Dave casualty, so many.

    • Thanks, Barney! I’ll just pop in here and say this is just one example of why the White House petition is so important to get signed up. There is underlying material which has not yet been cleared with us and yet has been used to grind one or more people into the ground. I should not have to deal with this alone — as I have for the last seven years — so I’m hoping to see a volume of signatures added today. Perhaps someone will add the link? I do acknowledge the many, many friends I have found here! L, Rachel

      • Here is the direct link to the petition.
        http://wh.gov/4Os

        Some people have had trouble signing it, and these are helpful instructions:

        1) Click this link to sign up for White House account to register
        https://wwws.whitehouse.gov/user/register

        You do NOT have to fill in a zip code.
        You do not have to give your real name if you prefer not to.
        People from all countries can sign.

        2) Check your email to confirm your registration

        3) Then click this link and sign the petition
        http://wh.gov/4Os

        • Me likey you very muz

        • To all those who have already signed the petition…just a couple more, per person, will do it.
          Send out a request to sign this, to a couple of people you know, who will do it.
          That’s all it will take….just a couple more, per person. It can be done.

          • I sent it out again to my email address list. With this added bit —

            UNLESS people are specifically told by someone who knows (like you and me and those of us who post here or read here) about the abuses of corporate scientology, the average even well educated american has NO clue.

            I discovered this yesterday when speaking with a very educated shambhala buddhist who knows NOTHING about scientology to speak of. Not even the crazy stuff of Tom Cruise cause he doesn’t watch Oprah or read People etc.

            Why? Because in THIS day and age, in America it’s completely UNBELIEVABLE that people are locked up (in Hemet and elsewhere) and cannot leave.

            dm gets away with what he does because ITS TOO UNBELIEVABLE to be believed and because the media does NOT report on it — ergo — to most people it doesn’t exist.

            Write to everyone you can in your email list, include a little vignette that is coming from your heart and ask your friends to support you by support this petition push.

            Love,
            WH

      • HI Rachel. Just was reading a book on the shelf and stumbled across one of the British SF publications you sold me, back around 1997, I’d guess? I don’t recall the exact year anymore, but recollect I was the only person to reply to your ad., and you sent me a couple Tit-Bits SF Library titles, and later I bought the item in my hands, Authentic Science Fiction Hand-Book, 1954. Made me wonder how you were doing, and then I stumbled across this old post. Sorry to hear you’ve been harassed by these swine! Hope all is well. I’m on Facebook under my own name, down in Florida (left Ohio over a decade ago, as you know). Sometimes I post about “books I’ve read” onto the pulp fiction forum there, too. Cordially, Morgan Wallace

  2. Good going Rachel!! Nothing quite like settin’ the record straight.

    ps. DM and his minions will just have to wait to see what else you know and just might want to broadcast. Can anyone say “missed withholds” ? Ha!

    • Well said, Pat and thank you, Rachel!! Dr. Denk helped save my life,
      more than once. (I Have Epilepsy, as most of you know. C of $ insisted I get off of my medication, and thanks to my Mom and Dr. Denk, ALL of that medical abuse was by-passed).

      He was a man of great compassion and love, and I am thankful I wrote him a letter after I left C of $, thanking him for ALL that *he* specifically did for me. Who knew he would pass away so young…but due to my Dad doing the same, at around his age, and *I* was the only one who had written him a letter telling him all I wanted to, I always try to keep that in mind: You never know how long people will be here.
      May he fly high🙂 Love to you ALL🙂 Tory/Magoo

      • Thanks, Tory. Yes, you do understand how it is to lose someone years before it is “expected.” I’m so glad you wrote a letter to Dr. Denk; you definitely did it right. L, Rachel

        • Oh thank you, Rachel! I’m soooo sorry you lost your partner.
          Yes, I do understand what it means to lose someone years before
          it was “expected”. Gene and I even talked about *that*—as SO many
          Scientologists (in C of $) seem to die WAY too young.

          As my brother pointed out to me, years ago: “We’re only one years apart. I know *one* person who has died. Every time I speak with you, more of your dear friends have died”. Sad….so sad…and true.

          Well, I know he would want you to celebrate his life. Be thankful for ALL the great years you did get to spend together.
          Many people never have *a* person they truly love. I know he’d want
          you to smile, and live the joyous life you’re meant to live.
          Hugs and blessings,
          Tory

    • Pat — Thanks for giving a title without knowing the subject matter. Very OT! L, Rachel

  3. The sawed-off sociopath, sisscavige, a low rent dwarfish thug, better round up some affinity for orange/striped non-tailored outfits Thongs will be disallowed also. Tough luck.

  4. This treatment of Gene and Rachel is creepy/sleazy/dishonest and immoral. In other words it has the fingerprints of POB all over it. And that is just what is obvious on the surface. Underneath there is likely criminality, carefully covered up with layers of plausible deniability.

    Apart from the horror story of the treatment of two heros (what Gene and Rachel sacrificed in order to serve LRH is undeniably heroic, though til now little known outside a few “insiders”), this is sad in another respect. The subversion of Stephen Price into a slimy Miscavige clone entity — following in the dubious footsteps of the king of smarmy slime entities, Dan Sherman.

    • There was not even a memorial service for Hubbard. During the usual time a memorial service should have occurred DM was front and center stage in an auditorium while tracking down the spouse and off spring with church resources to get them to sign disclaimers! Someone send him an Emily Post etiquette book for God’s sake!

      • My God, oracle, you are right – no memorial service for L. Ron Hubbard. I thought it was abrupt and cold at the time the way DM made the announcement – like: Ron is gone, now don’t cry, we are getting on with it… And I never even thought – why no service? So brainwashed, just took what our “leader” told us to be, to do, and to have. What a “church” it is. What an “ecclasiastical leader” who pulled his first insult to LRon Hubbard and all Scientologists by his very announcement of the death. He positioned himself right then, and set the tone for what was to come. Daring us to act like real Scientologists, people with feelings, who care, honoring LRon Hubbard……. But we didn’t. Most of us took DM hook, line and sinker.

        • Oh yeah, he positioned himself as the man in charge. You’ve got that right. He was the total controller. Did you notice how fast that event came together? Spooky,…. right? Did you notice Hubbard’s autograph was written a day earlier on a “will” with a brand new plan? WHILE he was under the influence of drugs? This battle plan was LONG time in the making. There are many things DM did not share with his “closest” confidantes. And let’s face it, who has DM EVER been “close” to? He is a user. A pimp. Subject to all the trappings of a simple street kid from Philly. GET REAL! But, as someone who posts on this blog said to me when I left the Sea Org, “You can fool some of the people all of the time….you get the rest and thank you Karen… You can’t fool all of the people all of the time. That is simple math.

  5. Interesting you write about Stephan Price today. Today I found out that Price (chiropractor) will be out of town for 2 weeks, with Miscavige and following him to UK for the IAS event. Price goes wherever Miscavige goes, to adjust him. WTF!?
    I also personally heard, while at Price’s office, how the SO member demanding for money from him. Price’s practice is doing poorly. Price told a Scientologist who was asking him for donation, ” I can make ends these days, it is very slow”.
    His office is truly dead and he is extremely PTS to DM, based on my personal observation.

    • Price has to travel with DM for two weeks? Either DM is a physical wreck or there’s something else going on with all that “adjusting”. Just sayin’.

      • OH come now Pat, you don’t really expect the Pope to be without hot and cold running “magic fingers” do you? This is what those donations are supposed to be used for. No expense should be spared for the great man…

      • Stephan used to hang out at LRH Manor kitchen, having a cuppa tea and biscuits, or breakfast or lunch while waiting for those “magic fingers” to be needed.

        The kitchen in the UK is a popular place to hang out as there is a type of stove (Aga brand – http://www.aga-ranges.com/_store/scripts/catlist.asp?idcat=39 ) which is always on and makes it very cozy.

        LRH wrote in an advice that the stove would be ideal in a kitchen – while he lived at St Hill. POB, who got rid of LRH’s modest original house which was renovated to his own (LRH) specs, built a $30M mansion and installed an Aga stove in it, due to the “advice” pertaining the circumstances at the UK. This stove is always on and so fights with the AC trying to cool the place down as the Int Base climate is very warm closer to desert temperatures most of the year.

        • Sinar,

          Yes, fond memories of that kitchen!

          Here is something I recently learned that will blow yor mind.

          All of the extra-curricular activities at the IAS event and during MV (the scuba boat, the fancy restaurants, the gifts, the scotch tasting junket to Scotland) are paid for by the same trick ASI used to buy POB his 550i BMW. They pay the staff “bonuses” and then collect the money and it becomes a slush fund for POB extravaganzas! I knew it was being done for POB Birthday and XMas presents (Marty covered that in the post about the Vyrus) and I knew it had happened with the BMW, but I was not aware that this was the standard practice of the IAS. In this way they covered up what the money was used for as there were no receipts required as it was all “donated” money from “the staff”. Of course. the staff had to pay taxes on this “income.” What a completely criminal outfit he runs.

          One day Monique Yingling is going to be called to answer for the crimes that have been occurring right under her nose.

          • I can confirm that this is in fact the practice to finagle the accounting to provide a slush fund for POB luxury while evading the true reasons. The IASA used to give their staff high bonuses as well, but this started to change some 8 years ago or so, but the bonus sum, didn’t change – it just went to POB instead of the staff and many at the IASA were aware of this and it was a subject of grumbling. Some bonuses are still paid some staff, but those amounts are a fraction of what it was prior to 2006 when the big crack-down happened, and especially prior to 2003. POB “defended” this by shoving down the IASA’s throat that he was in fact the ONLY productive IASA reg (while never even uttering the word “money”, which he proudly promoted at every opportune moment) and hence the bonus money went to facilitate the ONLY “productive” reg – him. This is one of the reasons why Janet started going against POB as she disagreed, but like anyone else disagreeing with POB, she was smashed to a pulp while POB continues to swim in luxury and convincing his own staff members that they are unproductive, degraded suppressives who should be honored to even be able to work for him, while giving up any and all personal rights and freedoms, and those PTS just go along with it, while many eventually left and many more are to come.

            • Raul — Thanks for con firming what I heard elsewhere. I must have heard POB say that he was THE reason the IAS made any money (and “I never say the word money”) at least 100 times.

              Janet was smashed. 15 people were taken out of the Hole and despatched to LA in full SO Uniform with stripes sewn on their sleeves (I was one of them — out of the Hole wearing Captain stripes). Janet and Lise Cohee were brought to the Hole. Janet’s husband, Colm, was sent to the Freewinds where he was kept under guard (he tried to escape once and was tackled on the dock and the port police were told he was drunk as they manhyandled him back onto the ship). Colm is STILL on the Freewinds — 5 years later, and Janet is still in California.

              • Right Mike,

                It will be very hard though to backtrack all of this accounting as the tax return forms most likely reflect bonuses “paid” though the individual staff members never saw the light of that money, just like POB and Shelly and Lou Christmas and birthday money showed up as “paid” on individual staff tax return forms, though that money was dispersed elsewhere. For a regular staff member at Int this would only amount to a few hundred dollars per year, but for an IASA staff, which would have bonuses included, this amount would be considerably higher and would most likely require individual testimony to get to the truth, unfortunately.

              • It’s so dark, isn’t it. Let’s bring some light to Int.

          • DM. Finance irregs? Is that possible? I thought he walked on water?

            • Who has the balls to sec check him?

            • A lot of people think he walks on water — but just an inch below the surface of the water is a massive platform constructed out of highest quality carbon steel by SO members working 24/7 with non-disclosure agreements. It takes them weeks to contruct for POB’s 5 second stroll across the surface of the St Hill Manor lake. It’s all caught on video, any flaws fixed up in the editing bay and Voila — the PROOF that COB walks on water!

          • Mike,
            Oh I like that one. That’s just sooooooooooo sleazy. It’s almost as if DM has actual crimes behind his attacks on Scientology!!

    • Doesn’t he get well paid by POB?

    • Truth, beware if you see this Mr. Price – I’m sure you’ll be needing many extra adjustments to make up for lost income. I bet David Miscavige’s creative financing pays him dearly – but then demands he put it back onto account for (cough cough) services.

    • Meant to say ” I can NOTmake ends these days, it is very slow”

  6. Marty, Could some of that 1.8 million that was unaccounted for have been wasted and spent by Pat and DM? I heard that they had been caught on more than one occassion gambling with LRH’s money in Las Vegas. Any truth to that report?

    • Also, after thinking about this, how is it ethical for an attorney, Monique Ying Ling to participate in “creative accounting” and present this to the IRS? I have always thought from the first time I met her that she was heavily involved in enabling DM and his criminality and his take over of Scientology. Sounds like she is no better than the Mob Attornies who look the other way at what their clients do and take their money anyway.

      As for Dr Gene Denk, he and his wife did not deserve this and DM’s finger prints are definitely all over this. I am sorry that Mrs. Denk has had to deal with this.

  7. Rachel, well done for not caving and I hope that Marty’s analysis on this has given you some closure.

    Dr. Denk was a lovely man. I will forever remember the snoopy bandaids and the red lollipops.

    Miscavige on the other hand is a sneaky fkr.

    • Thanks, Mareka. You are a dear and I’m so glad to call you a friend! Yes, Marty has been a great help to me. L, Rachel

  8. I reread this document.

    The little A-hole is the paragon of punk suited thugs. Ugh………….

    He deserves a big, mean and ugly cell mate.

  9. That is just like David Miscavige to twist the minds of people who once tried to help.
    It’s just sickening. Talk about no humanity – not an ounce. Rachel, I’m glad you intercepted that entheta letter. I’m glad you made it out alive and not broken. Thanks for speaking out.

  10. Hi Rachel –
    What a great and noble lady you are.
    Fairways & greens!
    David

  11. “Be assured those will be thy worst enemies, not to whom thou hast done evil, but who have done evil to thee.” — Tacitus

  12. Marty, this isn’t the same 1.2 mill that we were made to believe that Herbie Parkhouse allegedly wrangled out of the Church, is it? That was in 1982, is that too early?

    ML Tom

    • Yes, too early Tom. Herbie failed to sell or buy gold (I forget which) when LRH said it should be done. That was the loss. I never heard he was even accused of “wrangling money out of the church” – he lost money due to know-best and non-compliance.

    • Way too early.

    • Tom,

      Much much earlier. From memory, LRH told Herbie not to buy the gold which was in a price run, predicting a crash in gold prices as the run broke. Herbie bought anyway, loosing something like 30-50% (in the 70s, I believe). Again from memory, the amount was in the ten + million dollar range at purchase, maybe a lot more. When the gold prices crashed, LRH wrote that the best way to recover from the losses were to go long, hold the investment until it turns around. I don’t remember when it was, but in 1970 gold cost circa $37 an ounce, and 1975 cost circa $140. If they did go long (kept the gold), at $1,600 today, this would have been an amazing investment.

      • Tom,

        I don’t remember Herbie wrangling money out of the COS. Eventually, when he was busted and declared, there was some issue that made all sorts of generalities … but I don’t remember any specifics of theft or embezzlement.

        I am pretty sure the Gold was still in SOR in the 80s, last time I had access to that data. By that point it had recovered lost value and made up for inflation. Someone joked that it was kept as an investment to demonstrate stupidity in non compliance, or Herbies follies, or something like that. Don’t know if that was true or not.

        • Originally Herbie took $2, million American $$ and bought British Sterling Pounds like a week before the Pound crashed through the floor. LRH was really upset with him about it. We lost a million, I think.

          But he did steal some money. It was somewhere between 880,000 Pounds and 1.3 million. I was after him for it on my RB msn in WW. DM wanted Herbies head on the highest pike when Herbie wasn’t talking. Herbie kept saying to me “You can tell Little Lord Fonteroy to go to Hell”.

          In the midst of all of the money being collected from the orgs reserves all around the planet (May 1982) and shipped to SOR, Herbie was acting panicky and CSW’s me to go visit his brother in Scotland. I approved, put a PI on him and Herbie instead went to several banks in Switzerland and Luxumberg with a huge suitcase. When Herbie got back I confronted him on this he literally tried to kill me.

          We stepped up the sec checks but he wasn’t talking. A silent interrogation confirmed he took the money but the amount was ambiguous.

          Later on when DM really got pissed at Herbie I figured there was some sort of double cross that went on. I wondered if one thing had to do with another.

          ML Tom

          • Holy cow.

            Little by little all the stories are told, more dots are connected.

            It’s sure nice to have all the mysteries getting cleared up, but what a bunch of ugly messes have been hidden from us!

          • Tom,

            I am puzzled with all this about Herbie Parkhouse.

            Frankly, I sympathize with his response to DM. While I was no close associate of Herbie’s by any distant stretch, I find it hard to believe that he really stole money personally. If what you say is true about the swiss bank visits, he may have stashed money in the accounts in trust for LRH or Scientology or some such. I wouldn’t put it past Herbie to have hidden money for Scientology believing that there was a coup underway. He never struck me as one who sought personal gain – no Bernie Madoff there. He was fanatical about following LRH policy on Org finance lines with i’s dotted and t’s crossed – meticulous records, inspections, and accounting. He struck me as miserly almost to a fault.

            It may be that in his mind he was doing something to save Scientology from the takeover of a cabal, which is what really ended up happening. He was so independent in his thinking…he might have predicted such with what he saw and did what he thought he had to do.

            Was there real evidence he kept the money for personal gain? Was there actual evidence of theft besides innuendo? I am honestly asking because what you are saying is shocking to me, and it seems as though it could be propaganda created under DM’s early moves. The sec checking and “silent questionnaires” don’t sound particularly in tech to me – kind of big brotherish – as people have discussed on this blog. Plus, so much of what you have described seemed to me to be part of DM’s stepping stone to where he wanted to go: Primary target 1 – get rid of the Controller’s Office and anyone connected with it who might be in the way. My view is still that if the Controller’s office had not been completely unmocked and scapegoated, there would not be an SP in control today. I promise you, DM would not have lasted – not have gotten to this point.

            Herbie – probably often a knowbest and maybe something of an SOB, yes, I can see that. A personal thief? I don’t see that, and I would want to see real evidence before I subscribed to that conclusion. That money – if there is such – might still be languishing in the swiss banks. Anyone ever look into Herbie’s lifestyle after all this went down? Make me wrong with this, it’s OK – I wasn’t that close and won’t take it personally. It just doesn’t click with what I know and saw and experienced.

            If anyone is thieving money, I’d say it is the one with the gilded celebrity lifestyle who makes 6 figures plus an entourage of servants while others can barely buy toiletries and field scientologists declare bankruptcy and have their homes foreclosed upon.

            Also, I am curious – who was it who ordered that org reserves be stripped from outer orgs and sent to SOR? That’s a big question. Was this all part of the unmocking of the outer orgs, missions, and field? I do speculate upon that because one of the things I loved about early Scn was the independence of the orgs! And they were booming – scarcely a spot to sit in the Academies! Intro courses jam packed.

            Gawd, it’s just doesn’t look like fun and freedom anymore – it looks like emotional torture!
            Leonore

  13. Rachel,

    I’m sure that this is true for you as well:

    “And those will be thy best friends, not to whom thou hast done good, but who have done good to thee.” –Tacitus

  14. This is a very IMPORTANT post!

    I have always wondered how it was “pulled off”…

    This certainly has filled in a few blanks… thanks for sharing your thoughts.

    JN

  15. hi everybody. My post is out of context sorry. But I want to warn that still 2350 signatures are needed to complete the White House petition. Average signatures per day is 85 since 10 days, but we need the DOUBLE to reach 5000 within 14 days. Plse hurry up : sign, ask you friends, family, neighbours…

  16. Hi Marty, I’ve been reading the last postings and the various comments everyone has been making – I can’t find a word or words in my vocabulary to express the feelings but, I guess I’m answering so many questions I had and things are so much more clear now – it’s a good feeling, thank you so very much. Rachel, I’m so sorry about Dr. Denk he was a good man. And Price … how dare you write that bunk. I live right next door to your small and failing practice – I feel like printing your 2 pages of natter, walking next door and shoving it up your coward face.

  17. Marty, You fill in so many gaps with right indications and data. Reading the blog is like getting false data stripping. You are a true Scientologist in every meaning of the word. Bringing us from “not know” up to “know” and you work against someone who makes it standing order number one to keep people in the dark. This is tripping. And you are somehow making it all make sense. Thank you for your monumental courage.

  18. The one consolation in all this is that DM obviously wont make it up the Bridge in this lifetime, and hopefully, next time around, he will decide to broaden his horizons by reincarnating as moon rock.

  19. Gary Morehead a.k.a Jackson

    Marty,

    Thank you my dear friend for yet another layer of specific truth, even though you report some assumptions, yours are “educated assumptions and summations.”

    Yes Dave, I recall the thick rolls of hard won cash you used to show off on the table in the Captains Bar at the ship after a return trip from Vegas.

    Although I walk with those who bore witness to horrid occurrences at the Int Base, I am, for the major part, no longer surprised or “shocked” at new mini-man on a applebox discoveries but this I have to say shocks me to the core.

    While I placed my self between the barrel of a gun and a firm head shot to David Miscavige, literally, I am sickened to a new level to discover I protected him so he could create such travesties.

    David Miscavige makes Tony Soprano look like Pee Wee Herman.

    To say David Misacivge is not guilty of at least 1 federal crime (earning him yet more prime real estate shared by “Clevis ” in a very secure tax payer purchased facility) would be like saying I did not witness him physically assaulting dedicated staff and souls with his own hands.

    David Miscavige would steal candy from a kid. He’d piss on a dog and laugh.

    I am glad I spent the better part of two hours last week in front of a rolling camera and live microphone providing clear cut truth about the savage acts of David Miscavige. I will be doing the same again at the end of this week.

    And I boldly repeat……..

    David Miscavige…….. YOU FUCKING PIECE OF SHIT!

    Rachel, I remember you well, remembering me I am pretty sure is a bit hard for you considering how many people lined up at your and Gene’s door for compassionate services but I gotta say, you got balls girl and I love it!

    A tip of my hat and a good day to you all!

    Hey Christie and Shannon, CODE ZEBRA!

    — Jackson

    • Gary,

      Again you surprise me with your recollections…can you put a time on that? I am wondering if those “trips” to Vegas were nothing but a “shore story” for direct mis-appropriation of funds from LRH accounts. I frankly don’t belive DM could win at twiddly-winks without cheating…

      • Gary Morehead a.k.a Jackson

        Tom,

        Sometime in 92 – 95 is the best I can do. May of been a bit earlier. It was more than once, there were witnesses to this event but….

        As I did not go with him, I can not factually say the rolled cash was in fact from a trip to Vegas.

        As anyone would believe all said to them from their “Pope”, I have good reason to believe Vegas is where he was at. I do know I was not told it was his Sea Org pay check for the week, it was not money won from the local lottery, it was not a cash loan from TC. I was not told it was anothers money and I am certain it was NOT my money.

        It is sad though Tom, each time truth sees daylight, there are compulsive all-hands being run to erase the paper trail. That is for sure!

        Here is something that I call – ” a predictable and educated guess”…. David Miscavige has an XBox located in each of his palaces. I’d further guess they are each remotely networked. This is so he can pick up from where he left off on a game at the Villa’s while he is on the Freewinds. Much blood sweat and tears by S.O. Members went into ensuring this. Only problem is, I am sure some went to the RPF for having learned how to play the game and thus were committing the loafing and being idle crime.

        — Jackson

        • Thanks Jackson. You crack me up…lol. When next we meet, the beer is on me…
          Any guess as to his most favorite game? Super Mario? Donkey Kong?
          Legend of Zelda?….

          • If I had to guess, I’d say he had a custom game written just for him where you get points for tearing the wings off of flies.

            Michael A. Hobson
            Independent Scientologist

    • Jackson,
      We gotcha covered.🙂

    • Thanks Jackson! I appreciate the acknowledgement and additional data your provide. L, Rachel

    • There is an old saying that escapes me at the moment, but it says for every time you see somebody that won it big in Vegas you can bet he lost it big ten times over .

  20. “Having no access to records I can only speculate.”
    “Here is further opinion”
    “This is speculation and opinion.”

    But I’m guessing your sycophants will take the above as cold, hard facts!

    • I suppose you would know Colin.

      Whether anyone does, Marty made it clear what was speculation and opinion.

      Maybe you would be better served addressing yourself to your Dear Leader who has a bad habit of presenting complete lies as absolute truth. When he stands on stage and brays out his pronouncements about “Scientology is expanding 5 times more in the last year than the previous 50 years combined,” and that “the church has gained more government acceptance and widespread acclaim since I took over than Hubbard ever achieved” you might want to stand up and cheer and let him know his sycophants are actually buying his bullshit. Oh, you do that already??

      Never mind.

    • On behalf of the thousands of who post here, you guessed wrong Colin. The fact that Marty made it totally clear what was opinion and speculation belies your effort to tarnish the posting.
      Sink back down into the mud until your master calls on his sychophants again. Yes Colin, creep, crawl, creep. The only sychophant here is YOU. Your opinion is a waste of time and devoid of any motivation to help anyone or anything. You suck.

    • DM’s Colon, Here’s a cold hard fact: You are the sycophant.
      Handling: Wake up.

    • Colin — I would wish you to walk in my shoes and only then call me a sycophant. I believe you would have trouble getting out the word. L, Rachel

      • He’d have difficulty just following the footsteps. No way he can put on your shoes. And attempting those 2 simple tasks would leave him breathless.

        Bruce

  21. Definitely can confirm Stephen Price’s all expense paid house calls to different continents, luxury dive boats, excursions in London and Caribbean for non-life threatening treatments. He regularly visited the Int Base and received top VIP treatment in food, service and lodging.

    I had been “on project” under DM and Pat for a couple of years handling other properties, comm lines & transportation and general expeditor as to whatever was wanted to be purchased or done. Expenses and funds for my project were from two different sources – one was SO Mission funds and the other personal LRH funds which was disbursed by DM, who held “R Accounts”.

    The morning after LRH passed I arrived at Creston. Shortly thereafter after tying up loose ends, both Sarge and I were told to turn in our accounting. It took me several days and Sarge perhaps about two weeks. Sarge got his funds from Annie, brought in by Pat and given by DM and needed to do his accounting for the 3 years working to renovate Creston, purchasing food and items needed, which he told me was in the 7 figures of legitimate items.

    After Sarge was done and turned in his banker’s box to Annie, I observed several times where Sarge was asked by Pat to go through his accounting to find receipts certain amounts Pat needed. This made no sense at all to me or Sarge when I asked as it was part of Sarge’s accounts. It was definitely very creative accounting which wasn’t per any SO or Scn finance policy.

    • Sinar, thanks for your information. This all fits with what I have thought all along. This entire scam needs to end and those accountable need to be hauled off!!!

  22. I find a ‘man’ who is motivated purely by money particularly loathsome, ignoble and repulsive.
    A ‘man’ who would attempt the feed on the remains of a dying man and thoroughly enturbulate him and his no-doubt grief-stricken wife at such a time in their lives is heartbreaking. It makes you look at the human race in an entirely different light:
    There are men. And there are…cockroaches. It’s easy to tell the difference: The cockroaches are the opportunists that scurry around in the darkness.
    Rachel. I am so sorry for your loss. That is the only communication appropriate at such a time regardless of any ‘business matters’. I hope you find one another on your future track under more joyous and peaceful circumstances. Thank you for speaking up for your husband while he cannot.

    • Incidentally Miscavige: No amount of primping and preening will make you attractive to a real woman.
      You are weak, shallow, spineless, greedy, and vain. Qualities only a woman of similar qualities would appreciate.
      Now get back on your copper grounding rods, you’ve got an important event coming up. Wouldn’t want to mess up the ‘LRH’s Centennial’ reg-fest now would you? My radar-flyers tell me that security is very tight by the way but the set-ups are going very well for the tent at the back of the refectory – all according to schedule. You might want to set up some security at the back entrance by the stables. My radar-flyers have reported back that security is a bit lax there – we need a bit of a challenge. See you on the 14th.

      • Have a safe flight 😀

      • Good points, Sam.

        I used to stay at the Stables during the event week and longer and know which gate you mean. There’s usually no security there. Aside from POB and his entourage, the manor gets pretty busy as caterers http://www.alisonprice.co.uk/ also move in and use the kitchen to serve a big fancy lunch (4-5 courses) to the Freedom medal winners & POB, the day after the event. These caterers also do Sir Elton John’s and Ministers fancy parties.

        • Yes POB likes to live in style – what your ‘donations’ buy.
          You’ll all be happy to know he arrived safe and sound in his blacked out limo yesterday and is settling into Ron’s home quite nicely with his guests (who also arrived in blacked out limos).
          Ooops – gotta tighten up security DM!

        • No worries Sinar. They have security detail at the stables now. They missed one of the holes in the perimeter though. 😀

    • Thank you, Sam! Yes, this whole letter was quite a reality adjustment for me. However, having the data certainly allowed me to operate more causatively in handling Dr. Denk’s affairs after he passed. The hard part is realizing there was no restoration of ARC between the two “friends.” I believe we all know better … L, Rachel

  23. “Underneath there is likely criminality, carefully covered up with layers of plausible deniability.”

    Wow Mike, heavy comment

    • thetan-x

      Your comment: “Underneath there is likely criminality, carefully covered up with layers of plausible deniability.”

      “Wow Mike, heavy comment”

      TRUE, SO VERY TRUE … L, Rachel

  24. I have news for you. Stephen did not write this letter. I spent many, many years with Stephen as I was the one who originally had him summoned to Int for all the treatments, massages, etc. I had him on speed dial. Stephen spelled like a second grader and he was deathly afraid of POB. What happened after I left Int, I don’t know. What was done here was appauling to the Denks; my heart goes out to Rachel.

    • Thanks Jan, Can you provide any more info on what leads you to the conclusion that it was not written by Stephen? Do you know who wrote it?

      Also can you please provide more info about Stephen being terrified of DM?

    • Thanks for the additional data, Jan, and the heartfelt comment. “Notwithstanding” sticks with me as a word that Dr. Price wouldn’t use. L, Rachel

  25. petition update
    as of signature #2652

    The top ten states:
    1. 405 California
    2. 159 Florida
    3. 140 Texas
    4. 111 New York
    5. 89 Washington
    6. 69 Illinois
    7. 63 Ohio
    8. 57 Oregon, Massachusetts
    9. 56 Pennsylvania
    10. 54 Arizona

    Any of the following states could easily move into the top ten:
    11. 44 Michigan
    12. 43 Missouri
    13. 41 North Carolina and Virginia
    14. 40 Georgia
    15. 38 Tennessee
    16. 37 Colorado and Minnesota
    17. 36 New Jersey
    18. 33 Maryland

    many are signing/submitting, with no location indicated.

    568 no location indicated (still takes the overall lead in numbers)

    and for those not in the U.S.

    55 from outside the U.S. or didn’t recognize city, with no state indicated

  26. Is it any wonder that S. Price’s business is doing poorly?

    dm isn’t doing well. His life is in shambles. He hides. He lies. He is barely breathing.

    Connection to a living corpse is not smart.

    But Stephen Price never struck me as someone who was smart. He was arrogant and prickly 25 years ago. And rather than growing out of those rather unpleasant attributes, they have only become more unpleasant.

    Yikes. Not the mind set I want to have when I make my big cross-over to my next life.

    How we are WHEN we die, makes a HUGE difference.

    LRH has said — “get your reality in good shape, BEFORE you die”

    That was said for a reason. I suggest Price, who is no longer a spring chicken, start to think SERIOUSLY about what this means.

    (Dr. Denk on the other hand, was a kind gentle man who I am hopeful is now enjoying a wonderful new life!)

    WH

    • windhorse —

      Really nice comment. Yes, I too want to make sure I have my life in order when I make the big cross-over. I think that realization is why I take on some of this stuff. Once departed, the individual cannot speak for himself. The false data and lack of data creates a far different impression, and tends to hang things up. I occasionally have a “stormy” period of time until I set things right in all our universes.

      This has now been done and we return to the kindness and gentleness for which Dr. Denk has been known. We also regain a sense of humor and strongly feel — if he were still here — we would be out on the golf course. L, Rachel

  27. Alex castillo On the subjet of Integrity.

    Mary, my comments keep getting knocked out and not posted. Is there a problem?
    Alex

  28. Alex castillo On the subjet of Integrity.

    I meant to say Marty, not Mary!!!

  29. Alex castillo- On the subject of Integrity.

    Dear Rachel,
    We don’t know each other but let me say I trully admire and resct you for having the courage to tell the truth about what you have been subjected to.
    Not just courage but Integrity. And on that subject, realizing that the OSA people and the KoolAid addicts may be in a similiar situation, I would like to say that many years ago I temporarily lost my way and was caught in a unhealthy situation which was affecting my life. looking for answers outside of Scientology I came across the subject of Codependency, I studied it an the ned result was that I discovered my personal Integrity had gone somehow gone AWOL. The result of my search and understanding of the concept of Codependency allowed me to fully recover my personal Integrity, which i never allowed to go missing again. To illustrate, see links below:

    http://www.allaboutcounseling.com/codependency.htm

    http://en.wikipedia.org/wiki/Codependency

    Once again, well done Rachel.

    Alex

    • Alex. First let me say I am glad you found a path to right yourself through the concept and application of the principles in “co-dependency”. The subjecxt is huge and applies to so many situations humans find themselves confronting and ultimately trapped within.
      I suppose one can say that anyone who feels their survival and well-being dependent on the churches survival and well-being is co dependent on the church. Just as when a parent or friend has to practice some “tough love” on occassion to let someone hit bottom or otherwise smarten up, so may it be with scientologsts in their relation to the corporate church.
      I think you make a valid point and observation. And for the person who is co-dependent to the failing party, they have to understand and come to terms with being able to have faith that by withdrawing their support they are allowing for the best ultimate outcome for allconcerned. One stops being an enabler and gets their own life back all at the same time. Its a matter of survival for all concerned. Its not easy. But the alternative is everone perishes.
      Thanks again for bringing up this very valid perspective.

      • JF,
        Thank you. Yes I was aiming my post at the people trapped in Miscaviges cult in the hope that a bit of light can be thrown into their darkness. After all they are human beings suceptible to falling into traps, like we all do at one time or another during our journey through life.
        We’ll see.
        Alex

    • Thank you Alex! L, Rachel

      • I never met your husband Rachel, unless I did and didn’t know it, and I don’t have to read every good report and good word every person here has to say about him to know he was a good guy. And DM and the church whatever you call them, culties?, still find a way to take a pot shot at a good samaritan. I am happy for you Rachel. I read your posts.

  30. Wow, Rachel thanks for setting the record straight. I have no doubts that Dr. Denk was a kind man, also a man who knew his trade. I have no words for the way you and he were treated by this absolute vile little man. He (DM) told himself along the line somewhere that he was owed something……not.

  31. Clinically evaluating this letter as a business man (I have NEVER seen any professional write a letter like this and publically send out), it shows Steve shoving blame at Gene, trying to create personal liability and animosity in an attempt to make Gene a target, and pierce the corporate liability to Gene personally. It factually does the same to Steve. Steve tries to infer Genes new venture has legal or financial liability to assumed creditors.

    It is also interesting that the $100,000 loan came from the church. A loan is never taxed by the receiving entity, though profits to repay a loan may be, this loan was not repaid per the letter. Investments are never taxed by the receiving entity. In order for it to be taxed, it must have been a payment for services. If Shaw had lost money for years, as the letter infers, it would have had accrued losses to offset that payment, not a huge amount of money for that size operation which must have been running at gross receipts of 1/3-2/3 of a million per year in the 80s.

    If asked to make a guess, knowing how COS finances were run during that time, I would guess that Gene was paid little to nothing for his helping LRH, perhaps only being paid enough to survive. After returning, the COS made a payment for $100,000 for services rendered to Shaw, which was per the original stated agreement of Steve.

    Something is wrong with the details outlined in that letter. Not only does it seem factually wrong, it seems intentionally slanderous.

    • Mike

      You noted; “Something is wrong with the details outlined in that letter. Not only does it seem factually wrong, it seems intentionally slanderous.”

      I am certainly no “professional evaluator” but from my observation of the “data” presented in the letter, there are numerous outpoints. I was left with almost as many questions as answers. I figure it will take a full disclosure by all involved, and careful inspection of the financial records, and other agreements and understandings, to be able to really sort this thing out.

      I cannot see what the exact purpose for the letter was in the first place, as none appears to be stated. Perhaps it was hoped that it would simply get filed and then could be claimed against Dr. Denk’s estate after his death.

      Whoever wrote this does not seem to have much regard for truthful, honest and clear communication. It is more likely an attempt at fraud.

      Just my two cents.

      Eric S

      • Mike Laws and Eric S —

        I believe I can help here. Bear with me …

        Basically, Dr. Price is saying that Dr. Denk was gone for 2 years (true), but he fails to mention Dr. Denk was with LRH for 1 1/2 of those years. The other 1/2 year or so, we were “disappeared” to allow affairs to settle out after LRH’s death.

        Dr. Price is saying that he has reason to believe Dr. Denk received over $350,000 for his work. This is false.

        Dr. Price states that all of his (Stephen’s) and SMC financial data was passed to Gene through Rachel throughout the cycle. This is false.

        Dr. Price is saying that when Gene returned to his practice, he loaned $100,000 to SMC and the check was written by a church related organization. The $100,000 loan to SMC is correct but that’s all I know about that.

        Dr. Price is saying that this loan caused Shaw to pay taxes on it as income and allowed Gene to avoid paying personal income tax on it. I have no idea if this is true or not. On our 1986 taxes, Schedule C, it looks as though the $100,000 is called “Management Fees.”

        Dr. Price is saying the principle balance on the $100,000 loan was $61,000 when this letter was written. In order for Dr. Denk to receive the balance of that loan, Dr. Price would need to first receive $52,000 for his administrative fees for the period while Dr. Denk was gone; $250,000 for Dr. Price’s contribution for the two years Dr. Denk was gone; refund for the taxes supposedly paid on the $100,000 loan.

        This whole line of reasoning makes total sense to Dr. Price. It looks to me like he was competing with Dr. Denk financially. He has false data on the payment to Dr. Denk which magnifies his own perceived loss(es) on the cycle.

        Rest assured, however, that this whole transaction was set up for Gene (directly) and myself (indirectly) by whoever was in charge or in authority at the time. It was shrouded in a cloak of confidentiality through the accounting firm as mentioned above. Our taxes remained with that accounting firm for three years to maintain the confidentiality.

        The $100,000 loan to SMC was requested by Gene so he could “help Shaw.” He knew his absence — no matter the worthwhileness of his presence elsewhere — was a detriment to the well-being of that activity and he was hoping to make it up through the loan and, of course, his production as a physician upon his return.

        There was a total reversal of intention on this cycle because someone really messed it up through the use of whatever specious reasoning lead to that $350,000 figure, especially with it falling into Dr. Price’s hands. Dr. Denk (primarily) became the target; I became the secondary target. At no time did I know of that $350,000 figure until I read Dr. Price’s “To Whom It May Concern” letter. Not one executive EVER came to me to help resolve the generated conflict. Dr. Denk never brought it up to me. I repeat: The data is false.

        Yet I have lived to speak the truth after sprinkling the ashes of the departed.

        Please feel free to ask any questions you might have. Rachel

        • It now dawns on me what may have set the stage for this “To Whom It May Concern” letter by Dr. Price. I have a document dated August 25, 2004, which was prepared by our accountant Art Moore. He was working with Dr. Price at the time to sort out the affairs of SMC and the building both of which were co-owned by Dr. Denk and Dr. Price.

          Dr. Denk had wanted the building sold and had so stated. The final paragraph in this document regarding the loan:

          “Thus, the loan balance at 8-31-04 will be $61,807.66 and increases by $9.89 per day thereafter until paid. It is the intention of the co-owners of Shaw Management Corp, who are also co-owners of the real property commonly known as 5336 Fountain Ave, Los Angeles, CA that this loan shall be paid in full including interest added up to the date of payment at close of escrow on the sale of 5336 Fountain Ave and hereby charge the escrow officer in this sale with ensuring that said loan is paid in full.”

          The document was then to be signed by Dr. Denk and Dr. Price as co-owners. It was never signed and thus the above handling was never implemented.

        • In the letter is states that the Building was jointly owned by Dr. Price and Dr. Denk. Is that building still jointly owned, or was it sold and did you get what was rightfully yours?

        • Rachel, was that accounting firm Greenberg and Jackson?

        • Rachel

          Thank you very much for your response. You are pretty amazing to go to the trouble of filling in missing data and clarifying various points, when it really isn’t even any of my business at all. It was far more than I had ever expected.

          You do yourself and the good Dr. Denk proud on many levels.

          Thank you for all that you do.

          Eric S

          • WindWalker/Eric S — Having lived with this for SOOO long, it is quite therapeutic to put correct data on the lines and help clear the group. False data is a killer! Correct data is the stuff optimum survival is made of. L, Rachel

        • Dear Rachel,

          Why would you and Dr. Denk have to “disappear” to allow LRH’s affairs to settle out? I want to clear this up because Robert Vaughn Young uses this fact, to imply that Dr. Denk had something to do with LRH’s death. I read this in a statement or affidavit online many years ago when I started researching the behind the scenes activities of management of the C of S. I am glad that you did say this, as I always wondered if the disappearance was in fact, true, and why it would occur. There is data about LRH redoing his will the day before he died, which RVY points to as being very suspicious. Having done the Data Series Evaluator’s Course I knew I was only getting data from one viewpoint, but had no way to clear that up. I was glad when you started posting here and so many people commented on the wonderful treatments they received from Dr. Denk. It made me realize that I had questions about Dr. Denk due to reading this data, which created a mystery about the circumstances of LRH’s death. Anything you could say here to clear this up would be greatly appreciated.
          I have been following your story, and admire your courage in speaking out against the abuses that you have received, and enjoy very much your comments here.
          Much love,
          Catherine von Ach

          • Lady Min —

            Thanks for your comment. I do not have any data about LRH’s final days, the will being redone, etc. Dr. Denk and I never spoke about it. I was never even curious and would never have even thought to ask Dr. Denk about it because it was a patient/doctor relationship which is well covered by medical/ethics codes.

            What I do know is that after LRH departed and Gene’s medical services were no longer needed, we “disappeared” for some months. Again, I have no idea why we disappeared and always assumed it was to let things “settle out” after LRH departed. For example, can you imagine LRH’s doctor being contacted by the media? That’s one thing that comes to mind that wouldn’t have been very good.

            During our “disappearance” is when I learned golf and what a struggle that was. Oh, but that’s another story …

            Yes, I’ve read quite a bit of stuff, including RVY, and really doubt Dr. Denk had anything to do with LRH’s death. I’m surprised, personally, that this matter wasn’t cleared up many years ago by those in charge in the “church.” But then, as we now know, there were other fish to fry. And, of course, my own example of falsely attributed income.

            I hope this helps! L, Rachel

            • Dear Rachel, thank you so much for your reply. Before getting to know you and Dr. Denk on this blog, I had no other data than what I read by RVY. Although I have been in Scientology since 1971, I lived in Texas and although hearing of the Shaw Clinic, I never had occasion to go there and was unfamiliar with Dr. Denk until I read about him through the internet. I do so much appreciate your answering my questions, as this area has been clouded by speculation. When you began to post and others began to post about Dr. Denk, I realized that I had been the recipient of black PR and third party, which I was not able to resolve due to lack of sources of true data. So you have filled in the vacuum of no data. I hesitated very much on bringing this up, but then realized that this blog has as one of its purposes the clearing up of false data, and the bringing into the daylight, true data. I want you to know that after the many stories of how wonderful Dr. Denk was to his patients, the idea that he had anything to do with LRH’s death was somebody’s black propaganda, more than likely based upon evil purposes, and the invention of false data to fill the vacuum.
              That this matter was not cleared up by the Church, in my estimation, was part of the general pattern of lying to the staff and public, something David Miscavige and the management seems inclined to do. Clearing things up are what Scientologists do; creating and leaving mystery that clouds the reputations of well-intentioned people is what Black Dianetics and Reverse Scientology does. Having been the recipient of much of this type of action myself, I clearly understand how this occurs and why it is not cleared up.

              You and Dr. Denk have my love and respect, and also my thanks for all you did for LRH, which was considerable. I consider you to be a very valuable contributor to the Independent movement, and I am looking forward to more posts. Also, can’t wait to hear that golf story!
              Much love,
              Catherine von Ach

  32. A quote for Stephen Price,

    “Make yourself sheep and the wolves will eat you.” Benjamin Franklin

  33. Rachel,

    I wish I had known Dr Denk. He sounds like a kind and caring soul. No wonder LRH had so much faith in him. I’m sure LRH thought highly of him to have trusted him with his very health and life.

    On the other hand. This letter is cold and the timing even colder.

    much love to you, Laura Ann

    • Thanks, Laura Ann! Yes, there seemed to be quite a good working relationship between Dr. Denk and LRH. Although that obviously wasn’t respected on another front, it was always acknowledged in our home. L, Rachel

  34. Rachel we appreciate your courage in speaking out.

    Dr. Denk was a man of integrity and loved by so many. On one occasion my daughter, who was four years old, had an allergic reaction and the middle of the night Dr. Denk met us at the hospital to personally oversee her care.

    My sister Susan was his medical assistant for many years and she adored him. From my recall he only charged $25 to any Sea Org member for medical visits making the cost affordable in Financial Planning. That is no longer the case.

    • Thanks Lucy! All your comment is so true. I will add that even when the finances in the Center went sour, Dr. Denk wouldn’t raise his charge for SO members. L, Rachel

  35. Rachel, I have always known you to be a strong, beautiful and classy woman. That held true when I met you during training at LAD, and still holds true today. Your husband was equally a man of genuine, loving character.
    I appreciate and respect you both.
    This story is yet another example of why the Church is failing.

  36. rachel, I read this last night and was physically sick. It is revolting on so many levels.

    All I can say is that at the time there were perhaps a handful, if that, of people who were qualified to do what Gene did. I’ve seen the word, ‘sacrifice’ being used to describe Gene’s actions, but think, ‘duty’ would be more apt as it’s a very high purpose.

    Anyway, will send you photos of the baby.

    xx sara

    • Sara — Tried to send you an email but it was returned. This was even before your comment was posted.

      Sorry you were revolted by the post. Duty is quite correct.

      Looking forward to seeing those baby photos! L, Rachel

  37. I never met Gene, but I perceive him as extremely caring, with high personal integrity-someone you can feel safe with.
    I met Stephen when I first came to LA and as I looked into his rigid countenance, I perceived a rather large wasteland of a space.

    • Ingrid — Correct, Gene was quite a stable terminal in our area. Before he fell ill, he was seeing 150 patients a week at the Center, auditing 4-6 sessions a week on VII and going up lines every other week to see staff. Many found him safe. L, Rachel

  38. Congratulations Marty !
    you made it into the Frankfurter Rundschau. A very long article by Nordhausen. Some 1.1 comments, but overall very informative. He even wrote some of the stuff I was discussing with him !🙂
    http://www.fr-online.de/panorama/aussteiger-scientology-mit-scientology-bekaempfen,1472782,10989408.html

    • LO, Thanks. Can any indies help put together a decent translation? The google translation is incomprehensible.

  39. Still my favorite line from Dr. Denk said only as he could say it, with his very unique sense of humor:

    “Congratulations, you have …… strep throat!” (or the common cold, or whatever was the diagnosis).

    He was so lighthearted and made being sick not so bad. Miss him.

    Rachel, thank you for all that you do.

  40. Rachel :::::

    I have strong empathy and duplication on what you have endured these last 7 years. Only walking in your shoes can actually reveal the fall out and blow back. It is wonderful that you have so many good friends and new friends.

    It is also good that TRUTH is REVEALED on Miscavige’s 24/7 on call masseuse.

    • Well stated and so true, Karen #1. Thanks! L, Rachel

    • That is the way I see it Karen. Honest. David Miscavige doesn’t “have” friends, he buys them so they are always there. I can’t be bought though. I either like someone or I don’t for what I’m worth. I am glad I got the tech I did when I did and it was from LRH and not altered in any way. I always admire your writings.

  41. I read the Steve Price’s letter very carefully. He seems to confuse his and Gene’s personal finances with that of the Corporation’s. This is something that a probate lawyer could clarify fairly quickly. What is really humorous is his work managing his own practice, which he values at $500 per week, he looks at as a personal loss which he seems to say should be paid out of Dr. Denk’s estate. He also claims that Dr. Denk’s care of LRH should be part of the corporation’s services and income. I would ask if Steve’s care of DM is also included as part of the Corporation’s income. If Steve received any benefit from his work with David Miscavige, is this included in the Corporation’s income and expenses? Also of interest is the SO representative’s demand for money. Are these donations coming from the Corporation or are they coming out of each officer’s personal share and, if a Corporate donation, was this approved by both officers or, if personal, were these subtracted from the officer’s personal share? The letter is WAY to simplistic for the complexity of the Corporation’s finances. It smacks of desperation. I’m imagining that Steve Price realized that 1/2 of the practice would go to Dr. Denk’s heirs, plus the full balance of the loan and the letter was an attempt for him to lower his liability on the eve of Dr. Denk’s death. This is the behavior of a scum sucking bottom feeder. This is who David Miscavige pulls into his tiny inner circle of friends.

    I hope Rachel has good, aggressive lawyers and is taking care of herself.

    • Sue — The last I heard Shaw Management Corporation is no longer in business. It went the route that corporations go when you don’t renew them. Yes, I inherited Dr. Denk’s shares and ended up with 50%. A moot point when there’s no longer a registered corporation. L, Rachel

      • I don’t think it is that easy. Since the business is still considered a legally viable entity, its officers, directors, and shareholders may be personally liable for the corporation, even if it is no longer doing business. I don’t think you can just abandon it. Please protect yourself.

        • Sue — I did have legal advice on this and the corporation could be abandoned. I personally would rather it had been dissolved, but abandoned was perfectly acceptable to my attorney. L, Rachel

      • Rachel,

        I believe that any assets owned by SMC would be 50% yours in any case, even if the corporation folded. Also the building would be 50% yours.

        • Of course I’m sure you had competent people to help you sort all this out. I’m just saying – just in case.

          • Simple — I doubt by 2004 there were many — if any — assets remaining in SMC. In fact, according to the Price letter, it looks as though he felt there were only liabilities, the majority of which were owed to him because Dr. Denk was such a bad partner and left to be with LRH. That Dr. Price allowed the corporation to be abandoned was fine with me. Yes, it was well understood that 50% of the building was mine and my share was subsequently bought out by the Prices. L, Rachel

            • Thanks Rachel. I was thinking about that equipment that was supposed to be owned by SMC. Medical equipment is expensive. Probably water under the bridge at this point, but somebody ended up with all that equipment.

              Thanks for all you have done and thanks for answering all the comms.

              • Simple — Yes, there was equipment owned by SMC. Gene gave Megan Shields the medical equipment when he fell ill. She needed it for the medical practice which she eventually moved to Glendale. The other equipment remained with SMC. I presume that would have been chiropractic equipment and the other office quipment. I wasn’t the least bit worried about it. L, Rachel

  42. Rachel Denk Rocks and her husband -God should be envies of his soul-Rocks too.

  43. Rachel,
    Thanks for posting this and getting more truth out for the world to see.
    I will affirm with certainty that Rachel Denk is every bit as theta and every bit a class act as she appears to be.

    Les

    To S. Price and David M: From Axiom 38, “Thus we see that the failure to discover Truth brings about stupidity.”

  44. Only one word comes to mind when I think of Price…Prick. And I only had to change one letter, imagine that. I’ll just call it “creative spelling”.

    It is not hard to imagine the senario described in handling the 1.8 million. DM has already shown that he has no integrity and will have others falsify legal documents without giving it a second thought. Lisa McPhearson comes to mind as well as the nationally documented Int base “wives” telling their lies.

    You are an amazing woman, Rachel with an unending loyalty to both Gene and LRH. The amount of suppression you have received is proof of your greatness. I am SO glad you are with the Independents as I have a feeling that you are a force to be reconed with and DM better realize that you are not done yet!

  45. This thread highlights how useful it would be if Pat Broeker – whereever he is – would come out of the shadows and tell his story.

  46. Mrs Rachel —
    I have no words. But you have my heart and soul for what you’ve experienced and yet emerged with your personal integrity intact.
    And my untold gratitude for supporting the efforts of well meaning individuals even now.

    Bruce

    • Bruce — You are an incredibly gifted being. Thank you for your heart, your soul and your gratitude. I will attempt to return it ten-fold. L, Rachel

  47. markrathbun.wordpress.com

    Alexa Traffic Rank Reputation
    Global 72,399
    Global Rank

    United States Flag 21,453
    Rank in US

    190
    Sites Linking In

    Marty’s blog Stats going up up UP.
    Rachel, I am delighted this post will have a wide readership.

    • Traffic rank internationally:

      markrathbun.wordpress.com: 72,399

      Scientology.org: 83,609

      Most “popular” anti-Marty site: 1,203,079

      So Marty’s blog is leaps and bounds ahead of the full Scientology website and all of its linked affiliates. Now that is a pretty telling statistic which I somehow don’t think will be shown during the rolling thunder speech at the upcoming IAS event.

      But I’m sure you hear about square footage of real-estate acquired; linear footage of TP saved through ingenious staff hygiene recycling campaigns; number of fake identities doctored to create responses on Marty hate-sites; number of fake responses written by the same author on anit-Marty sites; number of parishioner’s $ spent on international campaigns to fight off suppressives; number of trees cut down to enable further surveillance of suppressives tied directly to the International Bankers.

      And it will be topped by number of hats POB personally has to wear due to all the incompetent riff raff staff he has to contend with, and this statistic will have a rocket to the top of the screen synchronized with fireworks above the tent and an audience going absolutely wild…

  48. The Importance of LRH’s Legacy UNEDITED
    Or
    Time to Revisit Philadelphia Doctorate tape #20 1984 reference! (It’s all in the cuts!)

    Yesterday as I was going through case paperwork over a somewhat bizarre harassment claim against me (Worthing Court), something REALLY jumped out at me.
    When I was initially interviewed by Sussex Police in a special interview room equipped with high tech recording equipment, designed to make three high quality copies of a digitally ‘marked’ taped record of the interview simultaneously, something appears to have ‘happened’ in the Polices written transcribe of the tape.
    Certain sections of the interview were effectively edited out by the transcribers saying ‘garbled section of recording’. and not including them in typed transcript for the Court.
    This seemed odd to me and I compared the typed transcription to my own copy of the tape, what was interesting was the content of the ‘Edited out’ bits!!!
    In fact most were of no great surprise, but some were, those have lead me directly to evidence of corruption in an IPCC (Independent Police Complaints Commission) report of a previous incident!!!
    When somebody goes out of their way to edit something out there is a reason for it, re-examination of that section with the understanding of ‘dark’ & ‘light’ Scientology, careful listening reveals just how Noble LRH was in that inclusion in the series!!

    • Likewise it made me bemused how OBVIOUS DM is with his editing of LRH, works, he might as well have a 60 foot neon arrow pointing out his black objectives!!!🙂

  49. Update on petitions signed as of Wednesday AM October 12th,
    as of signature #2,724

    The top ten states:
    1. 413 California
    2. 165 Florida
    3. 143 Texas
    4. 113 New York
    5. 90 Washington
    6. 71 Illinois
    7. 65 Ohio
    8. 60 Oregon
    9. 57 Massachusetts, Pennsylvania
    10. 54 Arizona

    Next in line:
    11. 45 Michigan
    12. 44 Missouri
    13. 42 Virginia
    14. 41 Georgia, North Carolina
    15. 39 Minnesota
    16. 38 Tennessee
    17. 37 Colorado
    18. 36 New Jersey
    19. 34 Maryland

    signing with no location indicated.

    593 no location indicated (still takes the overall lead in numbers)

    for those not in the U.S.

    56 from outside the U.S. or didn’t recognize city, no state indicated

    (I’m off a few, but close enough for practical purposes)
    Sunday PM petition posted September 25th
    Monday, did not get a count
    very early Tues had 1,004 signatures (Sunday and Monday)
    very early Wed had 357 additional signatures
    very early Thurs had 245 additional signatures
    very early Friday had 130 additional signatures
    very early Saturday had 97 additional signatures
    very early Sunday had 85 additional signatures
    very early Wednesday had 248 additional signatures (for 3 days, Sun, Mon, Tues)
    mid morning Thursday had 68 additional signatures
    very early Friday had 67 additional signatures
    very early Saturday had 100 additional signatures
    very early Sunday had 95 additional signature (earlier typo of 85)
    very early Monday had 85 additional signatures
    very early Tuesday had 71 additional signatures
    very early Wednesday had 72 additional signatures

  50. Jackson….Good News to learn you’re back in front of the camera documenting the criminal history of the current COS. Your video on “Truth Revealed” on the St. Pete Times web site was so real, so honest. I think my jaw stayed dropped for 20 minutes. I had to play the video a second time within minutes of watching the first video.
    Jackson….You are the main guy who got me look and look some more. Two years on October 30th was my first day of freedom from this criminal cult.

    Keep talking Jackson and I will keep looking. Thank you so much for your contributions to this Independent group.

  51. The PETITION: Here’s the deal. It’s going to take MUCH more effort than previously thought BECAUSE it’s not a user friendly site. It’s a complete pain, frankly.

    I’ve had several friends call saying they can’t get through it. I walk them through however it shows how hard it is for some.

    AND I just noticed it now has a button to “report offensive petitions” or something — that is probably a walk in the park to click on🙂

    My last email to friends appears to have gotten 4 signatures but I urge you to again write a personal email to your friends, with stories that are REAL to your friends.

    WH

  52. Looks like the city of Clearwater is setting the record straight too!

    http://clearwater.patch.com/articles/church-of-scientology-coughs-up-over-400000-to-pay-code-enforcement-fines

    400 grand flushed down the toilet due to negligence and inability to make a target. Oh, you’re doing great on the construction with Tom and Tom gone right! Those dirty SPs! Yeah! The ball is really rolling now right? NOT! That desk job just gets harder and harder to manage right? What did you need? Staff? Money? Resources? You had it all but damn that desk job is harder and harder to manage right?

  53. Since we are on the subject of “Settin’ the Record Straight”, I have a question for you Marty.

    Marty,

    For the record, did you assist David Miscavige to take power away from Mary Sue Hubbard?

    • I have commented on one incident, that occurred 12 years after she voluntarily abdicated any further church responsibilities, that could be mis-characterized as such. Why do you ask?

      • I’ll answer your question Marty but let first clarify what you are saying yourself.

        So you feel that Mary Sue Hubbard stepped down voluntarily?

        You don’t feel that it was because of any pressure being put on her by David Miscavige or that David Miscavige took power from her?

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