Scientology's Love-Hate Relationship
with the "SPOTLIGHT," Willis Carto & the "Institute for Historical Review"

Somehow, some of Alexander Jones' correspondence to the SPOTLIGHT in Washington, D.C. ended up in a Church of Scientology in Missouri, of all places. These pieces of correspondence included one that had a copy of Jones' signature, and one that did not have Jones' signature, indicating it was an file copy of a letter Jones had written. At some central location, Jones' correspondence had been collated with newspaper articles from Los Angeles and Orange County, in southern California. The Missouri Church of Scientology then delivered this compiled information to at least one person who most likely was not even a Scientologist. Carto found out about this when he received an envelope with Jones' correspondence, newspaper articles, and a cover letter briefly explaining the situation. Just imagine if your neighbors or the people you did business with started sending copies of their letters to you across the country for the purpose of discrediting you personally. More realistically, imagine if they first sent this information to a church intelligence center, which then combined it with other data on you from all other parts of the country, and distributed it to paying members, so as to ruin your reputation. This is what tax exemption for Scientology supports.

A note on the articles about Carto appearing in various newspapers: Scientology companies have been known to deliver free material to the press on occasion. The material is usually well-written and at first glance can appear to be a good space-filler for writers or editors pressed for time. This is not something newspaper professionals will brag about, but may freely admit to if caught red-handed. Note the four articles mentioning Carto are by four different writers, as opposed to a single person who is following up one story.

As far as the content of the stories goes, the criminal report against Carto was filed by the IHR itself, and Scientologist Tom Marcellus is the one who "knew something was seriously wrong." Nevertheless, the criminal report did not result in criminal charges being pressed against Carto. However, the negative publicity did produce salient details about his personal life, such as the interesting tidbit that Carto was the proud possessor of a signed photograph of Adoph Hitler.

Graphic images of this special Scientology package of information about Willis Carto - image 1, image 2, image 3, image 4, image 5, image 6, image 7, image 8, image 9.

[cover letter]

August 14, 1995

[letter addressed to "The SPOTLIGHT"]
I received this info from the Church of Scientology in St. Louis, Missouri. I thought you might be interested ...

[enclosure page 1]

Church of Scientology International Office of Public Affairs

October 3, 1994

Willis A. Carto Treasurer The Spotlight 300 Independence Avenue, S.E. Washington, D.C. 20003

Dear Willis,

Please see the attached letter-to-the-editor from ADL National Director Abraham H. Foxman which ran in the September 29, 1994 edition of The New York Times. It was written in response to the full-page ads we have been taking out in The New York Times and Washington Post on growing intolerance in Germany. The Spotlight just recently ran our news release on this campaign. Please note that the letter is most unfriendly, even falsely asserting that the Church of Scientology has been banned in Germany.

This letter-to-the-editor corroborates what myself and other Church officials have been telling you, Vince Ryan and others for nearly a year: there has been no ADL/Scientology deal.

We all make mistakes. Please consider that you may have made one in targeting the Church of Scientology in the IHR affair. We honestly had nothing to do with it.

I'd like to meet with you to discuss this at your earliest convenience.


Alexander R. Jones


Scientology: Improving Life in a Troubled World 4M C St. N.E. Washington D.C. 20002

Telephone 1202) 543-6404 FAX(202)543-6484

[enclosure page 2]


Attack on Germany

To the Editor:
The advertisement of the Church of Scientology ("Never Again," Sept. 22) parades concern about neo-Nazi skinhead activity in Germany. But the ad is a broad-scale, unjustified attack on the democratic German Government for having banned the Scientology movement.
There are real problems in Germany today, and the Government could and should do more to combat the extremists and to educate for greater tolerance and pluralism. That. in no way justifies the assault - the imagery of Nazi-like society - depicted by the Scientology ad.
Making things worse is the Scientology effort to link the German ban of the group to Nazi persecution of Jews. This is a disgrace and reflects the group's willingness to go to any lengths to take revenge on a Government that. has taken action against it.
ABRAHAM H. FOXMAN Natl. Dir., Anti-Defamation League New York, Sept. 23, 1994

[enclosure page 3]

FRIDAY, JUNE 16, 1995
Embezzlement Suspect Claims Raid on Home Was Illegal:
* Courts: Former head of Costa Mesa group that claims Holocaust accounts exaggerate is being investigated in connection with missing $7.5 million.
NEWPORT BEACH - The former leader of a Costa Mesa group that claims accounts of the Holocaust are exaggerated tried to convince a judge Thursday that Costa Mesa police and other agencies illegally seized bank statements, guns and other property during a recent raid on his home.
Police seized the property from Willis Cards home and the home. of his associate. Henry John Fischer, both in northern San Diego County in March during an investigation into whether the two embezzled $7.5 million from the Legion for the Survival of Freedom.
The Legion is the parent company of the 17-year-old Costa Mesa-based Institute for Historical Review, a think tank that is considered a leader in the international Holocaust denial movement. Carto, 68, founded the group but was ousted in October, 1993.
His attorneys argued that the search warrant that allowed police to break into his home should never have been issued because it contained lies made to police by current leaders of the institute about the alleged embezzlement and omissions of important facts.
"The facts just aren't there." said Randall S. Waier, a Newport Beach attorney representing Carto. "It's all hearsay upon hearsay upon hearsay."
A quashing of the warrant would mean the return of all the property and a blow to the ongoing investigation that has yet to produce charges, according to court documents and attorneys.
Carto's attempt to invalidate the warrant is his second in the past month, said attorney Michele Vadon. who is representing the city of Costa Mesa and its police department. Carto also filed suit against the city in April in Orange County Superior Court alleging civil rights violations stemming from the raid on his home. Carto "seems to think the best defense is a strong offense: file a civil rights suit, challenge the warrant, sue everyone and maybe they'll go away," Vadon said. "But we're not going to go away. There is no doubt. The documents are very clear . . . Carto took the money ."
Harbor Municipal Court Judge Susanne S. Shaw, who issued the search warrant in March, continued the hearing to Friday. During the hearing Thursday, however, Shaw made it clear that even if the accusations of embezzlement are false, that is not enough to invalidate the search warrant.
Attorneys for Carto will need to prove that former police investigator Larry Rooker, who headed the investigation at the time and drew up the "statement of probable cause" intentionally lied to her or withheld pertinent information to get the warrant.
The institute contends the money was left to their parent organization in 1985 by the estate of Jean Farrel Edison. the grandniece of Thomas Edison, the inventor. The money was in four safe deposit boxes in Switzerland, Asia and the United States. Carto and Fischer went to Switzerland to handle the inheritance, but the group contends the money never made it to the institute.
Another of Carto's attorneys, Mark Lane, denied outside the courtroom that Carto did anything illegal with the money. He contended that a large portion of the bequest did go to the institute.

[enclosure page 4]

Los Angeles Times (Orange County edition) Sunday, 25 June 1995 -- p. B4.
Revisionist Leader's Property Seized Legally, Judge Rules
NEWPORT BEACH - A judge ruled Friday that Costa Mesa police and other agencies legally seized bank statements, guns and other property from the former leader of. a historical revisionism group.
Police seized the property in March from the homes of Willis Carto and an associate, both in northern San Diego County, during an investigation into whether the two embezzled $7.5 million from the Legion for the Survival of Freedom. Carto has denied doing anything illegal with the money.
The Legion Is the parent company of the Costa Mesa-based Institute for Historical Review, a think tank known best for its claims that accounts of the Holocaust are exaggerated. Carto founded the group but was ousted in October, 1993.
Newport Beach Municipal Judge Susanne S. Shaw ruled the search warrant was constitutional and authorities acted properly, said Michele Vadon, an attorney representing Costa Mesa and the Police Department.
"We can keep those documents we obtained in the search that we deem to be relevant in the criminal investigation," Vadon said.
The continuing Investigation has not resulted in any charges, she said. Carto's attorneys contended that the search warrant never should have been issued because It contained lies made to police by leaders of the institute about the alleged embezzlement and omissions of Important facts.
The institute contends In a lawsuit that it never received $7.5 million bequeathed to its parent organization in 1985.

[enclosure page 5]

Newport Beach - Costa Mesa Daily Pilot Friday, 16 June 1995 - p. A 2.
Holocaust-denial leader seeks return of seized property.
By Carolyn Miller, Staff Writer
COSTA MESA - A historical revisionist in the Holocaust denial movement - who is suspected of embezzling millions from a Costa Mesa organization - is suing the Costa Mesa Police Department for searching his estate and is asking for his seized possessions to be returned.
In March, detectives from the Costa Mesa Police Department's economic crimes and fraud unit seized financial documents, bank books, guns and various other items - including signed photographs of Adolf Hitler and a book called "How to Disappear" -- from Willis Carto's and Henry Fischer's San Diego County estates.
In Harbor, Municipal Court Thursday, before Judge Susanne S. Shaw, Carto's attorneys sought to reclaim the seized belongings by seeking a reversal of the search warrant granted for Carto's and Fischer's homes.
Both Carto, 68, and Fischer, 58, are founders of the Costa Mesa-based Institute for Historical Review, a right-wing group that claims the number of Jews killed in the Holocaust is exaggerated.
Members of the institute in February filed a criminal report that triggered the Costa Mesa Police Department's investigation of the two men, The institute accused the two of embezzling $7.5 million bequeathed to the organization in. 1985 by Thomas Edison's, grand-niece, Jean Edison Farrel.
In the meantime, Carto filed his own suit against the Costa Mesa Police Department and detectives Larry Rooker and Jerry Holloway. One of Carto's claims is that officers improperly obtained and executed a search warrant.
Carto's wife testified Thursday that police officers who arrived at the Carto estate didn't identify themselves immediately, threatened to shoot her dog and didn't adequately inform the couple of the warrant and their intent to search the property.
The proceedings continue today.
Michelle Vadon, the attorney representing the police department and two detectives in the lawsuit, said the property seized from Carto and Fischer "does support the allegations of embezzlement, in our opinion."

[enclosure page 6]

FAX: Jul-10-95 Mon 15:22 PAGE: 07
The Orange County Register Friday, 16 June 1995 "Metro" section --- page 4.
Embezzlement case focus is police raid
COURTS: Co-founder of a group that denies that Jews were killed in the Holocaust disputes search warrant.
The Orange County Register
Attorneys for Willis Carto, cofounder of a Costa Mesa group that denies that Jews were killed in the Holocaust, said in court Thursday that a police raid on his Escondido home this spring was illegal.
Carto is accused by leaders of the Institute for Historical Review and its parent organization, the Legion for the Survival of Freedom, of embezzling $7.5 million that was left to the organization by the grandniece of Thomas Edison.
Costa Mesa police detectives and San. Diego County sheriff's Special Weapons and Tactics officers seized guns, bank statements and other paperwork in the March 22 raid.
Carto's attorneys, Randall Waier and Mark Lane, argued that the search warrant was based on false information supplied to Costa Mesa police by the group's leaders.
The hearing before Judge Susanne Shaw at Orange County Harbor Municipal Court, in Newport Beach, is expected to continue for two more days. Jean Edison Farrell, a descendant of the light-bulb inventor, left the group millions of dollars upon her death in 1985. Carlo and his friend Henry Fischer, who had no ties with the group, traveled to Switzerland together in 1991 to handle the inheritance. But the money allegedly never made it back to the Costa Mesa group.
"Carto told me, he distributed the money to good causes, to whoever he saw fit," said Tom Marcellus, the group's president. "That's when I knew something was seriously wrong."
In February, Marcellus and the group's treasurer, Mark Weber, contacted the Costa Mesa Police Department, which launched an investigation. Costa Mesa police Sgt. Jim Holloway, who is in charge of the investigation, said some evidence seized at Carto's home supports the allegations.
Carto did not appear in court Thursday.
Police also raided Fischer's home in San Marcos.

[enclosure page 7]

FAX: Jul-10-95 Mon 15•13 PAGE: 08 June 28, 1995
Letters-to-the-Editor The Spotlight
300 Independence Ave., S.E. Washington, DC 20003 ATTN: Mike Piper
RE: Scientology coverage Dear Mr. Piper:
Since December, 1994 The Spotlight has published no less than 10 articles which contain distortions, outright falsehoods and blatant religious bigotry regarding the Church of Scientology and the founder of the Scientology religion, L. Ron Hubbard.
These articles deal with everything from the Church's battle to preserve the freedom of German Scientologists, our efforts to promote freedom and responsibility on the INTERNET, our relationship with the 7th Day Adventists,
and the specious allegation that the Church was somehow involved with Willis Carto's ouster from the Institute for Historical Review. These articles unfairly and irresponsibly communicate a false and derogatory image of Scientology and contain information that many of your readers know to be untrue, These articles are contributing to the erosion of the credibility and reputation of The Spotlight.
For example, the December 19, 1994 issue of The Spotlight carried a bigoted and ignorant piece based on an article that had appeared five months earlier in Liberty, a magazine published by the 7th Day Adventists. Not only was the original article old, but Liberty itself had already run a correcting letter from Scientology president, Rev. Hebert Jentzsch. The Spotlight failed to mention this and the fact that the Church of Scientology has, and is, working hand-in-hand with the 7th Day Adventists and nearly 60 other national religious organizations

[enclosure page 8]

Mike Piper June 28, 1995 Page 2
and churches on projects to protect churches from unwarranted government interference. The Spotlight's omission of this information paints a false picture and is sloppy and irresponsible journalism. The April 3, 1995 issue of The Spotlight repeats a number of lies published by Dr. James K. Warner of the Sons of Liberty concerning Scientology founder, L, Ron Hubbard. One of these falsehoods has to do with the notorious Aleister Crowley and his satanic cult, the Order of Templars Orientalis. The truth is that in the mid-40's, the headquarters of Crowley's U.S. group was operating out of a huge house in Los Angeles where a number of top U.S. scientists also lived. A number of federal agencies were concerned that Crowley's controversial group might create a security breach among these scientists. Mr. Hubbard, still an officer in the U.S. Navy, was sent in to handle this situation and successfully infiltrated and destroyed Crowley's U.S. operations. The group never recovered.
The May 22, 1995 issue of The Spotlight carried a gratuitous derogatory comment about. Scientology in connection with Church member Tom Marcellus. The paper noted that Marcellus "is suspected of having fled the country for Britain" to avoid a legal suit by Spotlight publisher Willis Carto. I don't know who suspected this but Marcellus was in the country and was reachable by phone at his home had anyone at The Spotlight bothered to try. I know this to be true as I was personally in direct communication with Tom Marcellus during the time period when he was "suspected" of being out of the country.
The June 5, 1995 issue of the paper carried a derisive article which implied that a German federal court in Berlin had ruled that the Church of Scientology is not a religion. This is a gross distortion of the facts. The court held that the Hamburg Church's sale of books, materials and life improvement courses falls under the definition of trade. However, the court also stressed that the mere registration of a trade does not impact the protection the Church enjoys under the religious freedom clause of the German constitution. In fact, other churches in Germany have been required to sell their books and materials through registered trade organizations as well.
The bottom line is that when it comes to the Church of Scientology, The Spotlight cannot be trusted. Despite months of amicable communication from the Church, the paper has continuously and willfully printed speculation, lies, rumors, fabrications and distortions on the Church and its activities.

[enclosure page 9]

Mike Piper June 28, 1995 Page 3
The Church of Scientology stands for freedom and the right of the common man to control his own destiny. We have fought to protect these ideals against some of the wealthiest and most powerful vested interest groups both within and outside the United States. And when the dust has cleared, not only were we still standing, but we had grown and expanded.
People respect the Church of Scientology for this and despite the falsehoods The Spotlight has been printing about us, we will continue to grow and expand. We don't quit and we have the courage to fight for what counts: freedom.
Alexander R. Jones