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PASTOR GENERAL'S REPORT, MARCH 19, 1982
PAGE 6
that had come into his possession on behalf of the Church. After deducting
expenditures on behalf of the Church, including
a
claim for attorney's fees
in the sum of $28,562.50, he conceded there was $13.82 due the Church. It
was necessary that another demand go out to him asking for a breakdown of
the services justifying said fee.
A demand was also made that the thousands of dollars of law books the Church
had purchased and that were in the library in the Century City office should
be returned to the Church.
Mr. Kessler responded, castigating Mr.
Armstrong for even suggesting that they should be returned. He contended
that a former official of the Church had a right to have the books remain
there, under his contract, so he could furnish advice if and when he was
called upon to do so.
The Church considers this as a totally untenable
excuse. As of this date the books have still not been returned.
A demand for an accounting was also made against the assistant of one of the
persons whose resignation was demanded. The demand was for an accounting
for expense money during a trip overseas. It was in the approximate sum of
$43,000. Response then came from the assistant that if he was not rein
stated to the Church, reinstated to the position previously held by him,
given full back salary, an apology made by Church officials, etc., etc.,
that he would disclose a rumor of a confidential nature.
Upon a refusal to be intimidated, a second demand for an accounting was
sent.
A letter was then received from Jack Kessler saying that he was
representing the assistant. He then demanded after serving as auditor of
the Church's books for eight years, the right to look at the Church's books.
He claimed the assistant could easily account for the money but as of this
date no accounting has been seen, much less the return of any of the monies.
Interesting Observations
It is interesting to note that the divine light revealing the alleged facts
giving rise to Jack Kessler's accusations in his "leaked" letter came after
all the foregoing events.
The newspapers quote Mr. Kessler as remorsefully stating that no Church
official has seen fit to contact him regarding his "leaked" letter. Mr.
Kessler apparently failed, however, to mention that he was contacted by
Gibson, Dunn & Crutcher as attorneys for the Church. He failed to mention
their ardent requests for the backup information and documentation
supporting his accusation, if there be any. He failed to mention his two
short, sarcastic responses. Our attorneys had attempted to work with Mr.
Kessler. They extended a willing hand, but unfortunately that hand remains
empty of any evidence of the accusations in the "leaked" letter.
For the record it should be noted that immediately upon receiving Jack
Kessler's letter which was later leaked, the letter was delivered to the
firm of Gibson, Dunn & Crutcher. The auditing firm of Arthur Andersen was
also given a copy of the "leaked" letter. Investigation and review of the
accusations were undertaken by both organizations.
In the more recent news announcements, Mr. Kessler is also quoted as sug
gesting that some of the Church officials who received the letter "leaked"
it. The modus operandi was predictable and I had already admonished the
Board of Directors to be certain not to disclose or exhibit the letter to
any one.