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justifiably refused to allow the receiver to enter. Late in the
afternoon, the receiver and his companions gained entry and immediately
began rapaciously rummaging through every Church document they could
lay their hands on. The receiver terminated Mr. Rader's secretary on
the spot, accusing her of being loyal to Mr. Rader rather than to the
Church. The receiver also was heard by several Church employees to
state that Mr. Rader and Mr. Armstrong were "out" or "terminated."
Having thus ensconced himself, the receiver commenced fulfilling his
role: the destruction of the Church.
On January 10, the hearing on the confirmation of the receivership
order commenced. The matter was heard by Judge Julius Title. The
hearing lasted three days, at the conclusion of which Judge Title
entered his order, which will be discussed shortly. At this juncture,
however, it is appropriate to outline the charges made, the "evidence"
introduced to support them, and the true facts as proven at the hearing.
Briefly, in chart form, they are as follows:
(1) Charge: Messrs. Armstrong, Rader and others were incurring
exorbitant travel, gift, and entertainment expenses.
"Evidence:" Church expense records and other documents from
1975-1976 disseminated to Church ministers and members or availab�
to them. No evidence was introduced that the expenditures�� in
furtheranc�of Church business £E_ that they were unreasonably high.
True Facts: In order to gain goodwill for the Church and
gain access to the people in other countries whose governments are
autocratic, the Church presents gifts to heads of state and other
dignitaries, gives receptions for them, and incurs other ordinary
entertainment and travel expenses. This has resulted in the dramatic
increase in Church members and contributions which enables the Church
to carry out its work.
(2) Charge: Herbert W. Armstrong is senile.
"Evidence:" His age--86.
True Facts: Mr. Armstrong still travels worldwide, writes
innumerable articles, is writing five books to be published (one in
fact is already in print) this year, and speaks on the media and before
live audiences very frequently.
(3) Charge: Messrs. Armstrong and Rader are engaging in self
dealing with Church funds to their personal benefit.
"Evidence:" None offered re: Mr. Armstrong.
(i) In 1967,
a partnership of which Mr. Rader was a member purchased an airplane
and leased it to the Church. No evidence was offered on his profit,
if any, therefrom.
(ii) In 1971, Mr. Rader purchased a home allegedly
paid for by the Church and sold it in 1978, pocketing the proceeds.
(iii) After the sale of that home, Mr. Rader bought another home from
the Church. (iv) Mr. Rader does not know if Mr. Armstrong was advised
by outside counsel before executing Mr. Rader's employment contract.