Basic HTML Version
PASTOR GENERAL'S REPORT, MARCH 19, 1982
PAGE 3
PRELIMINARY RESPONSE TO JACK KESSLER'S ACCUSATIONS
Brief Background of "Leaked" Letter's Author
The "leaked" letter of Jack Kessler now requires we also respond to the
media. We had hoped this would not be necessary. We had hoped to restrict
our explanation of Kessler's accusations to the Church's ministry and mem
bership. The following will at least furnish some background facts which
will aid in putting the "leaked" letter into perspective.
Jack Kessler, while employed by the Church, found time to acquire his
Certified Public Accountant credentials. He also achieved the highest exam
grade in California on the CPA exam. Later he was added to the accounting
firm which became Rader, Cornwall & Kessler. qe later became an attorney.
Then there was the law firm of Palazzo
&
Kessler. Then there was the
accounting firm of Rader, Cornwall, Kessler & Palazzo. Then there was the
law firm of Rader & Kessler. Then there was the accounting firm of Kessler
& Kessler. The names of the other parties are only mentioned as a matter of
fact in order to identify them.
You must wind your way through this twisted path in order to determine if
Mr. Kessler in certain letters is defending himself, other former Church
officials, clients or others.
Jack Kessler, under one firm name or another, served as auditor for the
Church since 1972. From time to time a wish was expressed by others, most
of the time privately, but sometimes publicly, for an "independent"
auditor. The expression of such a wish not only provoked a denial of a lack
of "independence" but was accompanied by wrathful threats of a lawsuit.
Two such examples are the lawsuits filed by Kessler during 1979 demanding
in excess of $563 million in damages.
By mentioning this matter the author does not accuse nor even suggest by
doing so that Mr. Kessler was acting as anything less than an "independent"
auditor. It is mentioned only to emphasize a point. As one can appreciate,
such an attitude would have somewhat of a stifling effect upon any attempt
to even suggest that financial conduct of certain ones in the Church, and
the manner in which Mr. Kessler was handling the same, should be reviewed by
anyone else.
Mr. Armstrong Acts Re: Investigation
During February 1981, after the conclusion of the State vs. Church case,
Mr. Armstrong determined definitely to make higher echelon personnel
changes. As a consequence, certain �ersons were discharged and the resig
nation of others was demanded and received. Other personnel changes were
also made.
At this time Mr. Armstrong emphatically and unequivocally stated that he
was going to "put the Church back on the track." One of the very first
steps Mr. Armstrong took was to appoint a group of men as the Advisory
Council of Elders. Responsible men and ministers in the Church who have
proven loyal and faithful to the Church over the years. Men whom the
ministry and the congregations respected. Men whose word would be above
reproach. Men that Mr. Armstrong felt could act independently.