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PASTOR'S REPORT, May 7, 1979
Page 15
Audit Nears � inal Stages
"The audit is corning along fine," announced Mr. Rader, who had just
spoken to representatives of Arthur Andersen and Co. The auditing firm
is putting the finishing touches on the audit the Church commissioned in
March. It is expected to be ready by the end of the month or early part
of June. "I think the report will be such that it will be very difficult
for the Attorney General to maintain himself in this lawsuit or to justify
his conduct once the report is reviewed," Mr. Rader assured the audience.
Oops! A Refund?
As reported in a previous issue of The NEWS SUMMARY, the IRS is examining
Mr. Rader's personal finances. One employee asked Mr. Rader about the
rumor that he would be receiving a refund from the federal government.
Mr. Rader explained, "My tax accountants have indicated that for those
years which are 'open years' (meaning years for which I may still file
an amended return) there were very substantial deductions which they had
advocated at the time that I take, but that I decided I would not. Now
that we are involved in a tax audit for these years, they said they will
file am2nded returns. They will therefore use the deductions they did
not use before. It is their opinion that those deductions will produce
a tax refund.
"The matter is proceeding in the normal course of events. It is a pro
cess of elimination. They /the IRS/ obviously were given the same type
of false information as was-the Attorney General and they are duty-bound
to chase these leads down. But I don't work for any other entities
Lother than God's Wor� nor do I receive benefits from them."
Troubles Could Have Been Avoided
During the meeting Mr. Rader stressed the importance of understanding how
heinous were the actions of Mr. Cole and others who conspired with him.
"If we h.J.d known for certain about the lawsuit we could have stopped it.
That was the Benedict Arnold nature of Mr. Cole, Mr. Antion, Dr. Kuhn
and others, some of whom are probably still working for us," Mr. Rader
explained.
"Mr. Armstrong has said we are not going to go on a 'witch hunt.' We
know who some of those people are, we know where their sympathies were.
But Chapman, for example, admitted under close questioning he had been
called by the attorney who represented the dissidents. He never told Mr.
Armstrong, he never told me, he never told �r. Helge. He then went down
there and he signed an affadavit attacking Mr. Armstrong."
Mr. Rader continued to explain that "other people were involved. If we
had knOvlD for certain � � day before, this lawsuit would never have
occurred. The whole thing could have been prevented by one phone call!
That's the nature of Mr. Cole's misconduct. Now he told Mr. Armstrong
that a lawsuit was coming, but he didn't say where it was corning from,
h� didn't say he knew the people that were involved, he didn't give him
LMr. Armstron� the information necessary for us to act. When Mr.
Armstrong asked me about it I said,
1
I haven't even heard the rumor.'"
Mr. Rader mentioned that a few months before, Mr. Helge had lunch with
�r. Cole to talk about certain rumors in the field. Mr. Helge started to