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” CSG ASSISTANT FOR INFORMATION (CSG ASST INFO) COMMODORE STAFF-GUARDIAN (CSG)

- MARY SUE HUBBARD (CON) b6

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— SSPIRACY$; HOBBS ACT, 00: TAMPA. Ow aa RE TANPA TELCAL TO WASHINGTON FIELD, NOVEMBER 21, 1979. bé i ; , ' ec INVESTIGATION i? ii DUE TO THE COMPLICATED NATURE OF CAPTIONED ’ -) QS “fo - mmPD WD; RELATED CASES IN OTHER DIVISIONS, ON NOVEMBER 20-5 19795 AUSA €> De

MDF, TAMPA , , RECOMMENDED wFO CASE %

AGENT| | TRAVEL JO TAMPA TO BRIEF AND USA

GARY Le BETZ, AND TAMPA CASE AGENT ON EeOFyeyh fo ee EX PROSECUTION TW 4 GATION WHICH PERTAIN TOi THE FORTHCOMING CAPTIONED MATTER AT TAMPA. SACS AT TAMPA AND yFO CONCURY INO\THES 1979 WILL PROCEED To=t¢qMPac——> ~~ NEED FOR SUCH TRAVEL AND UACB, SA

FOR SAID BRIEFING TO BE. HELD NOVEMBER 27 aND 28, 1979. | L- BI. .

FERS. ERO C REG ung SEP 9 1989

cP 10/29/79 me yy CRIMINAL TNVES@§CATIVE DIVISION 9.p By way of background, in August, 1978, 11 Church of (COS) members were indicted in Washington, D.C., on various Federal charges in connection with their break-in at several Government offices (including those of the Department of Justice and the Internal Revenue Service) in Washington and elsewhere to obtain secret files containing information about the church. COS operatives also infiltrated Government agencies such as DEA and Coast Guard Intelligence Service to conduct burglaries, buggings and spying operations. The plot was allegedly directed by the Church's highest officials in the United States and , including Mary Sue Hubbard, wife of the Church's founder. The indictments were based primarily upon documents and evidence seized during the execution of search warrants at COS locations in Los Angeles, , in 1977. The trial concerning this matter was scheduled to begin in USDC on 9/24/79 with Judge Charles R. Richey presiding. Attached from Washington Field advises that all subjects indicted in this matter, with the exception of and appeared before be

Judge Richey on 10/26/ 79 and agreed to stipulated b7c record of trial provided by the Government. seven of the subjects were found guilty of conspiracy to obstruct justice. Another subject was found guilty of conspiracy to steal Government documents, commit burglary of Government offices and wiretaps of Government offices. One other subject was found guilty of Theft of Government Property. All subjects released on personal recognizan “e_ bond, No date set for sentencing.

Subjects| jand are both in England await-

ing extradition. Judge Ric hey made the remainder of documents seized in Los Angeles on 7/8/77, public record. Documents will be available to the public and held by the Clerk of the Courts' Office, USDC, Washington, D.C.

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CONSPIRACY; HOBBS ACT3 (OO:TAMPA)D

REFERENCE TAMPA TELETYPE TO THE BUREAU AND WASHINGTON FIELD DATED WOVEMBER 21, 1979. . __

- A SPECIAL AGENT WILL DEPART WASHINGTON ° (/-

NATIONAL AIRPORT VIA NATIONAL AIRLINES FLIGHT 457 AT 9335 Ail. NOVE aBER als 1979, AND ARRIVE TAMPA AT 11:35 Acie, NOVEMBER 27,

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Five Scientologists :.: Legal Coun. ___ Plan. & Insp. Rec. Mgnt. Given Prison Terms *” Tech. Servs. __ Training

By Kenneth R. Walker All of the defendants expressedre- Public Affs. Off. _ WashingtonStarStaff Writer > morse for the crimes, but each Telephone Rm. __. Four officials of the Church of . claimed to have beenmotivated ‘by iregtor's § yn Scientology are in jail and the wife the belief that the federal govern- of the church’s founderfaces a possi- ment wasout to destroy the church. ble five-year term as a result of their Prosecutors, however, claimed ‘ conviction of plotting to steal gov- that the church attacked’not only governmentagencies. “It was any- ernment documents. _US: District Judge Charles R.Ri- one who wascritical of them — indi- chey imposed . the sentences viduals as well-as private trade as- yesterday after comparing the de- sociations,”said one. fendants to those involved in the Eight of the nine,defendants were Watergatecase. convicted by Richey Oct. 26 of con- _ Richey ordered the immediate spiracy to obstruct justice or jailing of four church membersafter conspiracy to, obtain government CONTARED sentencing them yesterday. Sentenc- documents illegally. The ninth was ALL INFORMATION ing of four other church members convicted of a misdemeanor theft was to take place later today. count. HEREIN IS UNCLASSEEES ~ He- also ordered five years in Assistant U.S. Attorney Raymond prison for Mary Sue Hubbard, - the Banoun had urged the judge to im- Bde ‘wife of‘church’s founder, L. Ron pose the maximum five-year jail DATE22 we Hubbard, but gave herfive days to terms on the defendants. 1 seek an order from the U.S. Court of | Attorneys for all the church offi- Appealsthat would permit herto re- cials sentenced yesterday pleaded main free until her legal appeals are . with. Richeyto allow their clients to exhausted. perform community servicein ‘lieu Richty also said ‘that he would de- of jail terms. cide within-90 days of the start of But the judge denied the requests, her’sentence whether the prison calling the crimes “heinous.” Richey _ term shouldbe modified. also said he hoped to deter others The four others éach yr eivedsén- - from committing similar crimes.- tences of four years nc a $10,000 The Washington Post Richey denied requests from de- . “a find. They are Henning fense attorneys to allow thedefend-- Washington Star-News A)_£7 S Snider, Gregory Willardson.Richard - ants to remain free on bond pending Daily News (New York) Weigand. appealof their convictions. Richey called any appeals.“frivo- The New York Times lous” and said the defendants were The Wall Street Journal likely to flee if released and that The Atlanta Constitution they were dangers to the com- munity.. os The Los Angeles Times

Following the ~ sentencings, churchofficials released a state- ment calling the jail terms a “mock- Date 19-979 ery of justice. , . fhe conspiracy included stéaling © documents from, the Internal Reve- nue Service and the Justice Depart: _ ment. BY AY “BEER 121980 FBI/DOJ

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“RE WASHINGTON FIELD PE TQ BUREAU AND RECEIVING :

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IN THIS MATTER ON DECEMBER 7, Ws

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ro December 7, 1979 x “e CRIMINAL ESTIGATIVE DIVISION ont 6 ‘e.

te TOL By way of background, in August, 1978, 11 (COS) members were indicted in Washington, D.C. (WDC), on Federal charges in connection with their break-in at several Government offices (including those of the Department of Justice and the Internal Revenue Service) in WDC and elsewhere to obtain secret files containing infor- mation about the COS. The indictments were based primarily upon documents and evidence seized during the execution of search warrants at COS locations in Los Angeles, California, in 1977. Subjects were subsequently found guilty of various violations including conspiracy to obstruct justice, conspiracy to steal Government documents, theft of Government property, burglary of Government offices, and wiretaps of Government offices. In attached, WFO advises that sentencing of subjects began 12/6/79, at 9:00 a.m., before USDJ Richey, WDC. Mary Sue Hubbard (wife of COS founder L. Ron Hubbard) sentenced to five years in prison and fined $10,000. Hubbard given stay of sentence until 12/17/79. | bre were sentenced to four years in prison and each fined $10,000. These four defendants were immediately remanded to custody. USDJ Richey adjourned at 6:30 p.m., 12/6/79. Sentencing of remaining subjects will continue at 9:00 a.m., 12/7/79.

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INVESTIGATIVE PERIOD | Unucokrine OFFICE OFFICE OF ORIGIN DATE 4/6/78 - 12/7/7 9 ptyWASHINGTON FIELD WASHINGTON FIELD 1/15/80 TYPED BY FTE OF Og. REPORT MADE BY ‘ i SA myo 7; =4b6 a {ARY SUE a) ARD,

b7Cc CHARACTER UF CASE - PUGITIVE, a - FUGITIVE; f es, AL, CONSPIRACY, TGP, AIDING AND a SITOL ABFTTING, OOd,” FALSE DECLARATION St BFFORF A GRAND JURY, TOC. HO a—lo- £0 a

7EEEERENCES: WFO Report of SA 9/3414/78,/ 10/9/78pie A t

4 a \ | Se FUGITIVE “IRIDEX.aa ADMINISTRATIVE! Bed i. Investigation period overlaps date of last revort, however, results of investiocation not received from auxiliary office in time for inclusion in that report. ORMATION CONTAINED 4 AUAL ROC! fe |EAGh Ned a) BERENS iS WNadepete ® |

LES GOT Oras SITS 2oS

ACCOMPLISHMENTS CLAIMED (CL) NONE’ ACQUIT- CASE HAS BEEN:

CON vic.| SVERSON ee FINES SAVINGS Recoveries TALS PENDING OVER ONE YEAR (CjJves (Jno - 4 9 PENOING PROSECUTION 4, (Ives (Cjno 4 : ‘By ove OVER SIX MONTHS

SPECIAL AGENT DO NOT WRITE IN SPACES BELOW APPROVED Hl IN CHARGE

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‘ -~47-~56689) | J i 1 - U.S. Attorney, WDC (Attn: AUSA ¥ a - Los Angeles (47-12230) (Info.) + 15 JAN 26 1960 BIC | iL - New York (174-1804) (Info.) _ : A , 1 - Tampa (193-8) (Info.) — 1 Qe WFO OT ee , {1—4F 4-074-3) 2 : 4 : , “Dissemination Record of Attached Report Notations ;

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UNITED STATES DEPARTMENTOF JUSTICE x : Federal Bureau of Investigation

Copy tot U. §. Attorney Office, Washington, D. C. : bé6 -. (Attn: AUSA . . b7C Report of: SA | Office: WASHINGTON, D. C. Dates January 15, 1980 Field Office File #:47~10713 Bureou File# 47_s¢699

Title: MARY SUE HUBBARD, | |- FUGITIVE, | 7 CS —J Ssiton.

Character: CONSPIRACY, THEFT OF GOVERNMENT PROPERTY, AIDING AND ABETTING, OBSTRUCTION OF JUSTICE, FALSE DFCLARATIONS BEFORE A GRAND JURY, INTERCEPTION OF AN ORAL COMMUNICATION. Synopsis: Transfer of Los Angeles and Washinaton, D. C., documents set forth. Investication referenced documents from USNDJ Tax Division, Tort Section, Office of Professional Resvonsibility Interpol, DEA and IRS set forth. Photos off hit-and-run accident taken. Buogina equipment selzed in search ayamined coded documents decoded. Hubbard, and b6 | | appeared before Judae Richey, ushc, WNC, 10726/79, b7Cc ! and aareed to stipulated record of trial provided by the | G ment. Hubbard_,| found guilty of one count each Of Conspiracy to Ohstruct Justice T18 uSCc-371. [___—sCidfiournd quilty of one count of Conspiracy to Steal Government Documents T18 USC-371, 641. found quilty of Theft of Government Property - Misdemeanor, T18 USC-641, 2.

. On 12/6/79, subjects appeared before Judge Richey | for sentencing. On 12/6/79, Hubbard sentenced to five years _and fined $10,000, and| | b6 b7C and each sentenced to four years and Fined $10,000. On 12/7/79, sentenced to four years and fined ‘. $10,000. | each sentenced to five years ‘ and fined $10, : Sentenced to one year with six months suspended, fined $1,000, and given five years ALL INFCERRATION CONTAINED . "— FEREAY 9SUNELASSIFIED B*

DATE rt g 63 BY We ( FY 2). Gum ; of the FBI. It is the property of the FBI and is loaned to This document contains neither recommendations nor conclusions outside your agency. , 7 your agency; it and its contents are not to be distributed FBI/DOJ ri gea 1 « t »

. FO-302 (REV. 3-8-77) 5 3 ® ®@ C3 FEDERAL BUREAU OF INVESTIGATION

Date of transcriptione/2 7 9 - {ee b6 | On October 31,'1979, Special Agent (SA) b7c was present at the United States Federal Courthouse, John Marshall and Constitution Avenues, Washington, D. C. (WDC), to observe four four-drawered safes moved from Room 2830G to Room 2818B.. The four safes contained evidence in the case United States of America v. MARY SUE HUBBARD, Et Al, which was the result of the Los Angeles Office search of July 7, 1977. The four safes were locked and sealed during the entir which began at 3:00 p.m. and ended left Room 2818B of the - at 3:25 p.m. SA United States Courthouse at 3:30.p.m. on October 31, 1979, at which time the four safes remained in a locked position.

on i Of31/73 at —_Washington,—D.—_¢.—_____= > File #_WEO 47—=10733 Investigation

41/2/79 mey——____-______Date dictated by______SA_

to your agency; This document contains neither recommendations nor conclusions of the FBI. It Is the property of the FBI and Is loaned it and its contents are not to be distributed outside your agency. 19

D. C. | INVESTIGATION AT WASHINGTON, b6 ~ All defendents with the exception of ‘ United b7c appeared before Judae Charles Richey, ' and[___| D. C. (wnoc) and States District Court (USDC), Washington, proviced by_zhe - ‘agreed to a stipulated record of trial Government. Ma e Hubbar Site found quiltyofone count of 18, United States Consprracy ustice, Title guilty of one count Code (USC) 371 Fwas found to Steal Government Nocuments, Buralary _{ of Consviracy Offices. Offices and Wiretaping of Government ~ ‘of Government Theft of was found guilty of one count of ye T18 uUSC-641, 2. AOVGrTiMente Property - Misdemeanor,

6, 1976, the defendants appeared On December Hubbard Richey in USDC, WDC for sentencing. before Judge Hubbard sentenced to five years and fined $19,000. was 17, 1979, to a stay of sentence until December was diven Court. her to apvly for appeal to the A pellate allow sentenced _ and were each All were encarcerated aii! to four years and fined 310,099. wi Hubbard and not allowed immediately with the exception of Necember 7, 1979, the to vost hond pending apveal. On Judae Pichey for sen- remaining defendants appeared before to four years and fined tencina. lvas sentenced sentencee to five years $10,000. |were pees, and and fined $10,000. Ail were: immediately apveal. | was sen- not allowed to vost bond pending pencea, fined $1,090 tenced to one year with six mont] | was released to the and qiven five years probation. appeal. custody of .her parents pending

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: uy oe . Re ee Tech. Servs. __ Training ' |lowSC LENTOLGGY, LESD“eet (TOPS N12) . lo Public Affs. Off. _ Telephone Rm. | BY LARRY MARGASAK ae . Director's § age a WASHINGTON CAP) -- A FEDERAL JUDGE TODAY SENTENCED A SIXTH CHURCH “| OF SCLENTQLGGY LEADER TO PRISON FOR CONSPIRING TQ STEAL GOVERNMENT /| DOCUMENTS, INFILTRATE FEDERAL AGENCIES AND KIDNAP A CHURCH OFFICIAL WHO DECIDED TO HELP ExPQSE THE CRIMES. : ‘UeSe DISTRICT JUDGE CHARLES Re RICHEY ’ ORDERED MITCHELL HERMANN TO SERVE A FOUR-YEAR PRISON TERM AND PAY A $10,000 FINE. | _ THREE OTHER CHURCH OFFICIALS OR OPERATIVES AWAITED SENTENCING . LATER. IN THE DAY. HERMANN ADMITTED PLACING A BUGGING DEVICE IN AN INTERNAL REVENUE ERVICE QFFICE WHERE TAX OFFICIALS WERE DISCUSSING THE CHURCH"'S | \ “TAX-EXEMPT STATUS. . | ol : | HERMANN TOLD THE JUDGE THAT UE PERSONALLY PLANTED THE '"BUG"" BECAUSE *"'L AT LEAST HAD THE SENSE TQ DQ IT WITHOUT BUMBLING ABOUT. 1 FELT IT WAS BETTER IF I DID THIS THAN SOMHOVE ELSE BECAUSE 1 FELT IF SOMEQNE ELSE DID IT, IT MIGHT BE DONE IN- AN INEPT FasHton THAT WOULD PRECIPITATE A DISASTER? “f7—-= (-. of re ' GN THURSDAY, RICHEY SENTENCED FIVE screNToLac? OFFICIALS TQ EITHER | FOUR- OR FIVE-YEAR PRISON TERMS AND FINED EACH ShOP ESAID THE ‘PUNISHMENT SHOULD BE ''A DETERRENT TQ oTHERS.'"""* FEB Ieaoe ALL THE DEFENDANTS SENTENCED THURSDAY ~~ INCRUDIGGAMARYSUE HUBBARD, WIFE OF CHURCH FQUNDER Le RON. HUBBARD -- SAID THEY WERE SORRY FOR THEIR CRIMES. ONE, HENNINGSHELDT, SAID THE CHURCH LEADERS WERE REACTING TQ GOVERNMENT ATTEMPTS TO ''DESTROY THEIR RELIGION AND © MAKE A FERCOFCHEIR BELIEFS."! ap-ugdiooh SSfossrRLRe. a WASHINGTON CAPITAL NEWS SERVICE FBI/DOJ