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True Facts: (i) In 1967, Mr. Rader was not an officer,
director, or even member of the Church. The Church could not afford
to purchase the airplane, and could not lease it through normal channels
since lessors do not feel that they can or want to sue a Church in the
event of default. Mr. Rader formed the partnership and personally
executed indemnities to the other partners. {ii) In 1971, the Church
purchased a home and put title in Mr. Rader's name. A few months later,
in 1972, Mr. Rader deeded the home back to the Church, who used it as
security for a loan. The Church then deeded the property back to Mr.
Rader, who put $90,000 down, assumed that portion of loan allocable
to the home, and gave the Church a second trust deed for the balance
of the original purchase price. Mr. Rader made all payments 9.!!. the
house; occasionally the Church would make a payment on the house to
the lender and treat the payment� compensation to�. Rader, who
treated such compensation� income. Having thus made all payments,
Mr. Rader of course kept the profit on his house when he sold it.
(iii) The second house was independently appraised at $208,000. Mr.
Rader purchased it for $225,000 cash.
(iv) Mr. Rader had successful
law and accounting practices prior to becoming employed by the Church.
He travels 200 days per year on Church business. There is no showing
that his compensation is excessive, and in fact it is not.
(4) Charge: The Church is selling a $30 million campus at Big
Sandy, Texas for $10.6 million to cover up the siphoning of funds.
"Evidence:" None as to value except a magazine article
quoting the prospective purchaser, who intends to donate or resell the
property.
True Facts: The Church produced an independent appraisal
by a national appraisal firm setting Big Sandy's value at $6 million.
Mr. Chodos conceded that no showing had been made by him on this issue.
(5) Charge: The Church in 1978 sold numerous other properties
below fair market value.
"Evidence:" None except the conclusion of one relater who
is not a realtor.
True Facts: The Church produced independent appraisals on
every proper�x sold by it in 1978. The properties were sold at an
aggregate of several hundred thousand dollars above appraised value.
{6)
records to
r e: The Church is removing and destroying financial
nr
up the massive siphoning of funds.
"Evidence:" (i) A Church employee was seen leaving the
Church with a package approximately l
I
x 1' x 3", which the witness
giving this testimony could not identify. The same employee was seen
entering the data processing"""c°e�ter in the company of another employee
and� security guard.
(iii) Two students entered the data processing
center through the roof and left ten minutes later taking nothing with
them. (iv) A paper shredder was found in the executive offices. (v)
A hearsay statement in the declaration of a relater who would not even
identify the person allegedly giving the information.