Scientology in Toronto [2/10]
[28 Jun 1995]

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Newsgroups: alt.religion.scientology
Subject: Scientology in Toronto [2]
From: cyber1@io.org (x)
Date: 28 Jun 1995 02:34:01 -0400

SCIENTOLOGY HISTORY IN TORONTO, PART TWO

On March 1st, 1983, a Sergeant from the Ontario Provincial Police [O.P.P.]
Anti-Rackets Branch swore an information before His Honour Chief
Justice F. Hayes of the Provincial Court (Criminal Division) to obtain a
warrant to search the premises of The Church of Scientology of Toronto
[hereafter referred to as "Scientology"]. The information had a total
length of more than 1,000 pages, including several appendices. On the same
day, Chief Judge Hayes issued a warrant authorizing a search of the
premises on March 3rd and 4th.

The information presented to Judge Hayes proposed three allegations of
criminality:

Count 1 [tax fraud]:

... that he has reasonable grounds to believe that the above
described things to be searched for will afford evidence in
respect to the commission of offences against the Criminal Code
of Canada, to wit:

that L. Ron HUBBARD, Mary Sue HUBBARD, CHURCH OF SCIENTOLOGY of
Toronto and Garry JEPSON (President), Dan CROCINI (Secretary),
Arnelle PEARSE (Treasurer), Kathy WHITMORE (Past Secretary), and
others unlawfully did between January 1, 1976 and February 15,
1983 at the City of Toronto, in the Judicial District of York
and elsewhere in Canada commit an indictable offence, to wit: by
deceit, falsehood or other fraudulent means did defraud Her
Majesty the Queen in Right of the Province of Ontario (Province
of Ontario, Ministry of Revenue) and Her Majesty the Queen in
Right of Canada (Government of Canada, Department of National
Revenue, Taxation) of money, property, valuable securities of a
value exceeding $200.00 by representing to those officials
responsible for registration of non-profit corporations under
the Corporations Tax Act of Ontario and the Income Tax Act of
Canada that SCIENTOLOGY was a non-profit organization,
collecting "donations" from its members, without distribution of
profit to any of its proprietors or members thereby obtaining
non-profit status and exemption from corporate taxes otherwise
payable while said SCIENTOLOGY in fact distributed and paid
monies or profits raised by the Church of Scientology to the
personal use of L. Ronald HUBBARD, Mary Sue HUBBARD and other
members of the Church of Scientology, such profits arising from
the sale of courses and other materials, contary to Section
338(1)(a) of the Criminal Code of Canada.

Count 2 [fraud]:

and further that L. Ron HUBBARD, Mary Sue HUBBARD, CHURCH OF
SCIENTOLOGY of Toronto, Gerry JEPSON (President), Dan CROCINI
(Secretary), Arnelle PEARSE (Treasurer), Kathy WHITMORE (Past
Secretary) and others unlawfully did between January 1, 1976 and
February 15, 1983 at the City of Toronto, in the Judicial
District of York and elsewhere in Canada, commit an indictable
offence, to wit: did defraud the public, more specifically
persons to whom Scientology made representations concerning the
qualities of and benefits receivable from, courses, including
the Purification Rundown, and from E-Meters, for sale at costly
prices in no way related to the real value of such things, such
things being without the represented benefits, thus by deceit,
falsehood or other fraudulent means defrauding such persons of
money, property or valuable security of a value exceeding
$200.00 contary to Section 338(1)(a) of the Criminal Code of
Canada.

Count 3 [conspiracy]:

And further that L. Ron HUBBARD, Mary Sue HUBBARD, CHURCH OF
SCIENTOLOGY of Toronto, Hilarie ROCKL, Scott CARMICHAEL, Harvey
SHMIEDEKE, Nicole CRELLIN, Marion EVOY, William O'MEARA, Gerry
JEPSON, Dan CROCINI, Arnelle PEARSE, and others unlawfully did
between January 1, 1972 and February 15, 1983 at Toronto, in the
Judicial District of York and elsewhere in Canada, commit an
indictable offence, to wit: did conspire together and with other
persons to effect a lawful purpose, the operation of
Scientology-owned and controlled companies and organizations, by
unlawful means, to wit: the use of the GUARDIAN OFFICE OF
SCIENTOLOGY to commit indictable offences, including theft and
break, enter and theft, when perceived necessary by the said
persons to protect the interests of Scientology contary to
Section 423(2)(b) of the Criminal Code of Canada.

On March 3rd, an additional information was sworn before Justice of the
Peace A. Kosteka, to obtain a warrant to search the premises of
Michael P. Zaharia. The warrant was issued the same day.

The search warrants were executed by officers of the O.P.P. together with
forensic accountants and accountants of the Federal Department of
Revenue. The six floors of the Scientology premises were searched from 2:30
PM on March 3rd until 11:00 AM on March 4th. 129 OPP officers
attended, with about 30 officers doing the actual searching. Some 850 boxes
containing about 39,000 files and books, or about 2,000,000
documents, statements and tapes were removed.

The warrant to search Zaharia's house was executed on March 3rd, and two
boxes of documents, records and correspondence were removed.