IN THE CIRCUIT COURT FOR PINELLAS COUNTY, FLORIDA
                                  CASE NO. 00-5682-CI-11



                DELL LIEBREICH, as Personal
                Representative of the ESTATE OF
                LISA McPHERSON,


                          Plaintiff,

                vs.                                     VOLUME 8
                                                        TESTIMONY OF
                CHURCH OF SCIENTOLOGY FLAG              JESSE PRINCE
                SERVICE ORGANIZATION, JANIS
                JOHNSON, ALAIN KARTUZINSKI
                and DAVID HOUGHTON, D.D.S.,

                          Defendants.

                _______________________________________/




                PROCEEDINGS:        Defendants' Omnibus Motion for
                                    Terminating Sanctions and Other Relief

                DATE:               July 11, 2002.  Morning Session

                PLACE:              Courtroom B, Judicial Building
                                    St. Petersburg, Florida

                BEFORE:             Honorable Susan F. Schaeffer
                                    Circuit Judge

                REPORTED BY:        Debra S. Turner
                                    Deputy Official Court Reporter
                                    Sixth Judicial Circuit of Florida
                     _________________________________________________


                                  KANABAY COURT REPORTERS
                        TAMPA AIRPORT MARRIOTT HOTEL (813) 224-9500
                        ST. PETERSBURG - CLEARWATER (727) 821-3320



 

                                                   Page 1008



            1   APPEARANCES:

            2   MR. KENNAN G. DANDAR
                DANDAR & DANDAR
            3   5340 West Kennedy Blvd., Suite 201
                Tampa, FL 33602
            4   Attorney for Plaintiff

            5
                MR. KENDRICK MOXON
            6   MOXON & KOBRIN
                1100 Cleveland Street, Suite 900
            7   Clearwater, FL 33755
                Attorney for Church of Scientology Flag Service Organization
            8

            9   MR. LEE FUGATE and
                MR. MORRIS WEINBERG, JR.
           10   ZUCKERMAN, SPAEDER
                101 E. Kennedy Blvd, Suite 1200
           11   Tampa, FL 33602-5147
                Attorneys for Church of Scientology Flag Service
           12   Organization

           13
                MR. ERIC M. LIEBERMAN
           14   RABINOWITZ, BOUDIN, STANDARD
                740 Broadway at Astor Place
           15   New York, NY 10003-9518
                Attorney for Church of Scientology Flag Service Organization
           16

           17

           18

           19

           20

           21

           22

           23

           24

           25

                                  KANABAY COURT REPORTERS
 

                                                   Page 1009



            1                  MR. DANDAR:  Judge, I've been bringing these

            2        things to court almost every day, not doing anything

            3        about it.  I'd like to file the signed declarations of

            4        Stacy Brooks and replace the exhibits that weren't

            5        signed, when she complained about it.  And for the

            6        record, let me tell you what exhibit numbers they are.

            7                  THE COURT:  All right.

            8                  MR. DANDAR:  21, 23, 24, 25, and 27.

            9                  THE COURT:  All right.  Madam Clerk, I think

           10        the best thing to do, rather than -- I don't know,

           11        should we just file them now all together?  Or should

           12        we just replace that which we have with the signed --

           13                  MR. DANDAR:  Replace them.

           14                  THE COURT:  Okay.  That seems appropriate.

           15                  Any problem with that?

           16                  MR. WEINBERG:  Are you going to --

           17                  No, there's no problem.

           18                  Do you have copies you can show us?

           19                  MR. DANDAR:  I actually have copies for you.

           20                  MR. WEINBERG:  Okay.  We just want to take a

           21        look at them, make sure they're the right ones.

           22                  THE COURT:  Well, let's go ahead and take

           23        them out.

           24                  For now, Madam Clerk, just put them aside

           25        until you all have a chance to look at them.  So we'll

                                  KANABAY COURT REPORTERS
 

                                                   Page 1010



            1        go ahead and do that.  I assume they're the same ones;

            2        you checked them.

            3                  Speaking of that, when I was looking at this

            4        withheld material, one of the things, the draft --

            5        what appears to be the draft affidavit of Stacy

            6        Brooks, I actually think it was filed and I actually

            7        think it was admitted into evidence in this case.  So

            8        let me see those affidavits.

            9                  MR. DANDAR:  Here's one, No. 21.

           10                  THE COURT:  They're great big ones,

           11        86 pages.

           12                  MR. DANDAR:  Oh, okay.

           13                  THE COURT:  And it was filed, not in

           14        Wollersheim, but in a case that had to do with a

           15        Dr. Geertz.

           16                  MR. WEINBERG:  That was like 1993 or

           17        something like that --

           18                  THE COURT:  Right.

           19                  MR. WEINBERG:  -- '94.

           20                  MR. DANDAR:  This is an 82-pager.

           21                  THE COURT:  I bet that's it.  Let me see it.

           22                  MR. DANDAR:  Exhibit 23 of the plaintiff.

           23                  THE COURT:  That's it.  So I don't have to

           24        read it.  I already read that.  I kept thinking, "This

           25        is familiar."

                                  KANABAY COURT REPORTERS
 

                                                   Page 1011



            1                  I've read through two of the three packets

            2        of information.  Thus far it's all privileged,

            3        attorneys' bills, that kind of thing, a couple

            4        attorney e-mails, attorney-client.

            5                  I have not gone through the Patricia

            6        Greenway packet yet.  That's for tonight.

            7                  MR. FUGATE:  Here's the transcripts --

            8                  THE COURT:  Speaking of that, what do we

            9        want to do with those?  It seems -- like I said, the

           10        first packet I looked at was two e-mails, one from --

           11        it appeared to be Mr. Jonas to Mr. Minton; one from

           12        Mr. Merrett to Mr. Minton and Ms. Brooks, or LMT.

           13        Nothing really related to this proceeding.  They were,

           14        as I said, from attorney to a client.  So they

           15        wouldn't be admissible or they wouldn't be outside the

           16        privilege.

           17                  The second packet that I looked at, the

           18        first part of it, except for this draft -- which was

           19        exactly the same; I mean, it was a final draft.  It

           20        was just on yellow paper instead of white paper.  It

           21        looked exactly like that.  But the rest of it was all

           22        attorneys' bills and -- you know, from deVlaming and

           23        Howie and on and on.

           24                  So I don't even see any real need to seal

           25        that and put it in the court file.  It seems to me

                                  KANABAY COURT REPORTERS
 

                                                   Page 1012



            1        that -- it looked like it was their copies -- that I

            2        ought to send it back to the lawyer.

            3                  MR. WEINBERG:  Send them back to the client,

            4        I guess.  I mean, it's the client's.

            5                  THE COURT:  Yes.  I gathered that both of

            6        those things were things that Mr. McGowan had -- there

            7        was somebody's name on it.  I couldn't figure it out,

            8        read the signature.

            9                  But either give them back to Mr. Keane and

           10        tell him to send them back or give them back to the

           11        client.

           12                  MR. WEINBERG:  I mean, it's the client's

           13        materials and it's their privilege.  I'd give them

           14        back to whoever is -- in this case, it's the LMT.

           15                  THE COURT:  It's the LMT, so I think --

           16        that's why I think I would give it back to

           17        Mr. McGowan.

           18                  MR. WEINBERG:  McGowan, right.

           19                  THE COURT:  And Mr. McGowan can give it back

           20        to the client --

           21                  MR. WEINBERG:  Right.

           22                  THE COURT:  -- or keep it with the LMT

           23        records, if he's been asked to, or whatever he's been

           24        asked to.

           25                  MR. WEINBERG:  He asserted the privilege,

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                                                   Page 1013



            1        though.  He's the one --

            2                  THE COURT:  Yes.

            3                  MR. WEINBERG:  -- that asserted the

            4        privilege.  Give it back to Mr. McGowan.

            5                  THE COURT:  As I said, that gives me one

            6        more packet.  Now, it's not very big.  It looks like

            7        it's maybe not more than ten documents.  So I just was

            8        too tired last night.  I couldn't -- I couldn't stay

            9        awake to read them anymore.

           10                  MR. WEINBERG:  I was having trouble staying

           11        awake --

           12                  THE COURT:  Yes.

           13                  MR. WEINBERG:  -- last night too.

           14                  THE COURT:  So I'll do that tonight.  If

           15        there's any that's controversial, I'll seal them.  If

           16        there's any I want to distribute, I'll make copies for

           17        everybody.  And then I'll tell you tomorrow what they

           18        are so we can decide what to do with those.

           19                  MR. FUGATE:  This is the daily copy for the

           20        notebook, your Honor.

           21                  THE COURT:  Okay.  Wonderful.  I have not

           22        looked to see where my Volumes I and II are, but I'll

           23        try to get to that.

           24                  MR. FUGATE:  That is what Volume I and II

           25        is.  It's all of the hearing --

                                  KANABAY COURT REPORTERS
 

                                                   Page 1014



            1                  THE COURT:  Okay.

            2                  MR. FUGATE:  -- or part of it,

            3        chronologically.

            4                  THE COURT:  Okay.  Let's see.  We were going

            5        to do that hearing on the brief, but it was at 1:30,

            6        wasn't it?

            7                  MR. LIEBERMAN:  That's what you said, yes,

            8        your Honor.

            9                  THE COURT:  Okay.  Now, if he doesn't appear

           10        and nobody appears for him, I may delay it because,

           11        frankly, I just haven't been able to get to that, to

           12        look at it.  Probably I'll hear you, and we can take a

           13        look after the fact or something like that.

           14                  MR. DANDAR:  Judge, Mr. Henson e-mailed me

           15        back.  He did not say whether or not he's coming or

           16        has a lawyer.  But he wanted your fax number to fax

           17        you a reply of some kind.  Do you want me to give him

           18        the fax number?

           19                  THE COURT:  Sure.  I don't know what it is.

           20                  MR. DANDAR:  I don't either.

           21                  THE COURT:  Sue can tell you what it is.

           22                  MR. DANDAR:  All right.  I'll ask her.

           23                  THE COURT:  But whatever -- I don't know

           24        what he's going to reply -- oh, I guess maybe to the

           25        filing of the pleading.  Is that it?

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                                                   Page 1015



            1                  MR. DANDAR:  It could be.  I don't know.

            2                  THE COURT:  Okay.  If he files a reply, I

            3        probably won't have a chance to read it by 1:30.  But

            4        if he doesn't show up, then as far as I'm concerned,

            5        we can schedule it some other time, without further

            6        notice, if I don't have time to read his reply before

            7        1:30.

            8                  Go ahead and call him on the break this

            9        morning.

           10                  MR. DANDAR:  All right.

           11                  THE COURT:  Tell him he can fax it to me.

           12        And tell him that, that if I don't have a chance to

           13        read it before 1:30 -- I mean, he needs to get it --

           14        anything he wants to get, he needs to get it here.

           15        But if I have to schedule another hearing, I won't

           16        notice him because it will be the same hearing.

           17                  MR. DANDAR:  Right.

           18                  THE COURT:  Okay.  Anything else this

           19        morning?

           20                  MR. WEINBERG:  Well, there was one thing.

           21        There was a request to produce that went out that we

           22        got a response to yesterday that had to do with

           23        requesting from the plaintiff information concerning

           24        the submission of the disks from this proceeding --

           25                  THE COURT:  The disks?

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                                                   Page 1016



            1                  MR. WEINBERG:  Well, the ASCII disks of the

            2        transcripts.  They're all on the Internet.  They get

            3        them on the Internet daily.  So that -- and we're

            4        not -- there's only two people that are getting ASCII

            5        disks:  There's us and there's the plaintiff.

            6                  So we asked the plaintiff -- we made a

            7        request for production to Mr. Dandar for that.

            8                  THE COURT:  For what?

            9                  MR. WEINBERG:  For all notes, memorandum --

           10        I'm sorry -- all letters, e-mails, memorandum, or

           11        other communications of any type or relevance.

           12                  THE COURT:  My court reporter couldn't

           13        probably keep up.

           14                  MR. WEINBERG:  I'm sorry.

           15                  "A list of all persons, organizations,

           16        groups, entities, or Internet sites that you or your

           17        office employs or consultants provide with ASCII disk

           18        copies of daily transcripts of the hearings."

           19                  "Objection, work product.  Otherwise, none."

           20                  Well, they're appearing on the Internet

           21        every day, this proceeding.  Which is supposedly --

           22        they're supposed to be sequestered witnesses.  The

           23        witnesses are supposed to be sequestered in this case.

           24        But apparently someone -- and it's not us -- is

           25        providing it to the Internet.  And I don't think

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            1        that's -- I think it's inappropriate.  And we asked,

            2        and I don't think the objection is work product.  If

            3        that's being done, it ought -- it ought to be

            4        disclosed.  Because that is, I believe, a

            5        circumvention of what -- of the sequestration.

            6                  THE COURT:  Well, the only thing I can tell

            7        you, Counselor, is I'm not going to, short a motion,

            8        get involved with some suppression of any information

            9        going out on the Internet that is otherwise public

           10        record.  And I --

           11                  MR. WEINBERG:  We weren't seeking to

           12        suppress it.  We were seeking to discover from the

           13        plaintiff if in fact that's what the plaintiff or

           14        someone on behalf of the plaintiff has been doing.

           15        And if that's the case, I think it's appropriate to

           16        raise that issue -- not to suppress because, you know,

           17        if somebody wants to do it, they can.  But it

           18        certainly bears on what is taking -- what has

           19        transpired in this hearing, I think.  I do.  Because,

           20        I mean, they're --

           21                  THE COURT:  I'm not going to require him to

           22        respond to that.

           23                  MR. WEINBERG:  Well, he already responded.

           24                  THE COURT:  Okay.  In other words, I mean, I

           25        think the Internet is out there.  You know probably

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                                                   Page 1018



            1        where it's going.  You know how to get to those sites.

            2        I don't, or I'd look myself.  Is it appropriate?  I

            3        don't know.  I'd have to have a motion and hear

            4        argument on it.

            5                  MR. WEINBERG:  Well, it wouldn't be

            6        appropriate for a sequestered witness to be reading

            7        daily transcripts.

            8                  THE COURT:  It should not be being read by

            9        witnesses.  But I assume you can ask that.  Frankly,

           10        once a witness testifies, I don't care if they read

           11        it.

           12                  MR. WEINBERG:  No, I mean prospective --

           13                  THE COURT:  Right.

           14                  MR. WEINBERG:  -- witnesses.

           15                  THE COURT:  And what I would do if I were

           16        you is ask the witnesses if they have read it.  The --

           17        do I think people should be putting this out on the

           18        Internet?  Probably not.

           19                  MR. DANDAR:  I can assure the Court, neither

           20        I nor anyone under my control has put this out on the

           21        Internet for public consumption.

           22                  THE COURT:  How did it get there?

           23                  MR. DANDAR:  That is a good question.  And

           24        Mr. Weinberg said the Church of Scientology hasn't

           25        done that.  That's his statement.  Well, I haven't

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                                                   Page 1019



            1        done it.  I have not published it to the public at

            2        all.

            3                  THE COURT:  Okay.  Well . . .

            4                  I just don't want to go there, to be saying

            5        not publishing it.

            6                  MR. WEINBERG:  I didn't hear him say

            7        Ms. Greenway isn't doing it, or somebody has gotten

            8        copies, his consultants.  I can tell you nobody from

            9        our team of people in the Church of Scientology or my

           10        law office --

           11                  THE COURT:  It's a pretty good hearing,

           12        isn't it?

           13                  MR. WEINBERG:  It is pretty good.

           14                  THE COURT:  Let the public see what's going

           15        on.

           16                  MR. WEINBERG:  I don't mind the public --

           17                  THE COURT:  The reason I don't mind, I'm

           18        pretty happy that we're doing a pretty fair hearing

           19        here.  If the public -- I don't like a witness reading

           20        it.

           21                  MR. WEINBERG:  That's all I'm --

           22                  THE COURT:  Right.  Which we can ask that.

           23                  MR. WEINBERG:  Judge, I'm -- look, I'm very

           24        happy for people to read, you know, what we do, how we

           25        ask questions, and stuff like that.  That's not my

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            1        problem.

            2                  THE COURT:  Okay.

            3                  MR. WEINBERG:  I'm not concerned about the

            4        public seeing this.  I'm concerned about sequestered

            5        witnesses reading it.

            6                  THE COURT:  And as I said, we can ask that

            7        question --

            8                  MR. WEINBERG:  All right.  I will.

            9                  THE COURT:  Both sides can ask the witnesses

           10        if they have been keeping up with this, and I'll have

           11        to decide what I'm going to do about it.

           12                  Okay.  Mr. Prince.

           13                  (Mr. Prince took the witness stand.)

           14                  THE COURT:  Good morning.

           15                  THE WITNESS:  Good morning.

           16                  THE COURT:  Okay.  Day 31.  This is the

           17        11th, right?

           18                  MR. WEINBERG:  Of the trial?

           19                  THE COURT:  7/11.

           20                  MR. WEINBERG:  7/11.

           21                  THE COURT:  All right.  You may continue,

           22        Counselor.

           23           CROSS-EXAMINATION OF JESSE PRINCE (RESUMED)

           24   BY MR. WEINBERG:

           25        Q    Now, in the vein that we just talked, the Judge

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                                                   Page 1021



            1   and I, have -- since you have been back on the stand this

            2   week, have you met with any of the witnesses or prospective

            3   witnesses in this case?

            4                  THE COURT:  Do you know who the

            5        prospective -- does he know who they are?

            6   BY MR. WEINBERG:

            7        Q    I think -- well, the next witness is Frank

            8   Oliver, and then there's Mr. Dandar.  There's some secret

            9   person that Mr. Dandar hasn't told us about -- maybe he's

           10   told you -- and the prior witnesses were Peter Alexander,

           11   what, Teresa Summers, Vaughn Young, Stacy Young, Bob

           12   Minton, other people -- Brian Haney.  Have you met with any

           13   of those people?

           14        A    Not anything for the purposes of -- that's been

           15   in relationship to this trial.  I mean, I was here the day

           16   that Mr. Haney was here, and we had lunch when he was

           17   testifying.  I think I was waiting outside the courtroom or

           18   something.

           19                  THE COURT:  The real question is, Have you

           20        discussed with them their testimony or yours?

           21                  THE WITNESS:  Oh, no.

           22   BY MR. WEINBERG:

           23        Q    Have you discussed, since you've been back on the

           24   stand, your testimony with Mr. Dandar?

           25        A    No.

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                                                   Page 1022



            1        Q    Or Mr. Lirot?  I'm sorry.  I had trouble with his

            2   name?

            3        A    No, Mr. Weinberg, I have not.

            4        Q    Or Ms. Greenway?

            5        A    No, Mr. Weinberg, I have not.

            6        Q    Okay.

            7        A    I followed the court instruction in that regard.

            8        Q    And have you had an opportunity to visit the --

            9   the --

           10                  THE COURT:  Unless Ms. Greenway is a

           11        witness, she could technically -- technically I

           12        suppose have chatted with her.  If people under the

           13        rule --

           14                  First of all, he's testified he ought not to

           15        be discussing his testimony; the Court instructed him

           16        so.

           17   BY MR. WEINBERG:

           18        Q    Let me ask you this.  I mean, have you eaten -- I

           19   mean, have you visited with, you know, Ms. Greenway or

           20   Mr. Oliver or anybody like that?

           21        A    Yes.

           22        Q    Okay.  Because they're friends?

           23        A    Correct.

           24        Q    When's the last time you saw Mr. Oliver?

           25        A    Last night.

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                                                   Page 1023



            1        Q    What were you doing with him last night?

            2        A    We had dinner.  I invited him to a barbecue.

            3        Q    Did you know that he was going to be

            4   testifying --

            5        A    Yes.

            6        Q    -- after you?

            7        A    Yes.

            8        Q    And where was the barbecue?

            9        A    My house.

           10        Q    And who else was there?

           11        A    Mr. Lirot, Mrs. Greenway, my fiance.

           12                  THE COURT:  It -- really and truly, this is

           13        not your business.  What is your business is

           14        whether --

           15                  MR. WEINBERG:  I was going to ask one last

           16        question.

           17   BY MR. WEINBERG:

           18        Q    And you all didn't talk about the case?

           19                  THE COURT:  That isn't the question either.

           20        It's whether he discussed anything about his

           21        testimony.  I mean, they can talk about the trial.

           22        They can say -- we're all crazy to think that when

           23        most people get together, they don't say, "What do you

           24        think?  Is the case going to be ready for trial?"  But

           25        the question is what's going on here.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1024



            1   BY MR. WEINBERG:

            2        Q    Did you talk at all about your testimony or

            3   Mr. Oliver's testimony?

            4        A    No.  I followed the Court's instruction in that

            5   regard.

            6        Q    Now, I touched on this a couple of days ago, but

            7   I want to go back for just a minute and see if we can focus

            8   more on the dates.  After you left the Church of

            9   Scientology at the end of October, beginning of November of

           10   1992, there came a time when, in Minneapolis, you became

           11   employed by a company called G & B.  Is that right?

           12        A    Correct.

           13        Q    And that was a company -- is a company that is

           14   run by a woman named Dana Hanson.  Is that right?

           15        A    Correct.

           16        Q    And she is a public member of Scientology?

           17        A    To my knowledge at the time, yes.

           18        Q    All right.  And you'd started working for her in

           19   March of 1994, thereabouts, correct?

           20        A    I'd say that's a fair estimation of when I

           21   started working for her.

           22        Q    And at first your then-wife had been referred to

           23   her to work, right?  Is that how it started?

           24        A    I believe, yes.  I believe you're correct in

           25   that.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1025



            1        Q    And the reference came from a staff member in the

            2   Minneapolis Org?

            3        A    I'm not sure where the reference came from.

            4        Q    In any event, you began to work for this company,

            5   right?

            6        A    Correct.

            7        Q    And you stayed at the company until the fall of

            8   1995, when you were fired, right?

            9        A    Incorrect.  I was never fired from that company.

           10        Q    You left the company in the fall of 1995?

           11        A    Correct.

           12        Q    Now, during this period of time, Ms. Hanson was

           13   kind enough, for part of the time, to let you stay in her

           14   house.  Right?

           15                  MR. DANDAR:  Objection to relevancy.

           16                  THE COURT:  Yes.  Sustained.

           17   BY MR. WEINBERG:

           18        Q    Well, during the time that you were employed by

           19   Ms. Hanson -- oh, by the way, this company was run pursuant

           20   to Hubbard technology, correct?

           21        A    Not per se, but she wanted it to.  She wanted me

           22   to run it according to Hubbard technology.

           23        Q    And --

           24        A    It hadn't been like that before.

           25        Q    And briefly, that means what?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1026



            1        A    Getting people to disclose intimate details about

            2   themselves because this was, you know, a Scientology belief

            3   that, you know, if you tell intimate details about yourself

            4   or things that you wouldn't necessarily want made public,

            5   then it'll somehow make you feel better and increase your

            6   production.

            7        Q    And --

            8        A    That's one thing.  Another part was to sit people

            9   down and have them study the writings of Mrs. Hanson

           10   concerning how the company should operate and make sure

           11   that they understood all the words that she had written.

           12   And also, she wanted me to do like a class, a classroom for

           13   doing the TRs, the training routines that I mentioned

           14   earlier in my testimony that's part of Scientology

           15   training --

           16        Q    Okay.

           17        A    -- that kind of thing.

           18        Q    And the idea was the company would run more

           19   efficiently, correct?

           20        A    Correct.

           21        Q    Okay.  Now, during the course of your year and a

           22   half or so with the company, there came a time when you

           23   admitted to Ms. Hanson that you had engaged in extensive

           24   unethical behavior, in violation of moral codes that were

           25   adhered to by Scientologists pursuant to this Hubbard

                                  KANABAY COURT REPORTERS
 

                                                   Page 1027



            1   technology, correct?

            2                  MR. DANDAR:  Objection.  This is nothing but

            3        to try to embarrass and denigrate Mr. Prince --

            4                  THE COURT:  What's the point of this?

            5                  MR. WEINBERG:  The point is that Mr. Prince

            6        said on direct that he couldn't work because of the

            7        Church of Scientology, that he lost his job as a

            8        result of the Church of Scientology.  That's what he

            9        said.

           10                  THE COURT:  That has nothing to do with this

           11        hearing.  The objection is sustained.

           12   BY MR. WEINBERG:

           13        Q    What was the reason that you left in October of

           14   '95?

           15                  MR. DANDAR:  Same objection.

           16                  THE COURT:  I'll allow that.

           17        A    I left because I didn't want to practice -- I

           18   didn't want to do that -- do the things, the Scientology

           19   things, in the company.  I just wanted to be normal, just

           20   do what a company does, instead of adding a Scientology

           21   slant to it.

           22   BY MR. WEINBERG:

           23        Q    All right.  So the Church, no staff member, had

           24   anything to do with you being terminated from your job.

           25   You just --

                                  KANABAY COURT REPORTERS
 

                                                   Page 1028



            1        A    I think I mentioned I was not terminated from my

            2   job, Mr. Weinberg.

            3        Q    When you terminated from your job, no staff

            4   member had anything to do with it.

            5        A    I couldn't hear you.  There was noise going on.

            6        Q    I said no staff member in any Church of

            7   Scientology had anything to do with you leaving your job.

            8   Is that right?

            9        A    No.  That's categorically false.  Mr. Sutter from

           10   the Religious Technology Center, after I would not do the

           11   Scientological things in that company, together with

           12   Ms. Hanson --

           13                  THE COURT:  This is just not relevant.

           14                  MR. WEINBERG:  Okay.  Well, I mean, a lot of

           15        that answer --

           16                  THE COURT:  It is not relevant to this

           17        proceeding, so you're not going to go into why he left

           18        the job.  It just doesn't matter.

           19                  MR. WEINBERG:  Okay.

           20   BY MR. WEINBERG:

           21        Q    Now, you said yesterday that you had -- you

           22   accused the Church yesterday of having made you sign

           23   undated resignations, resignation letters, which were then

           24   dated on the date that you were busted from the RTC.

           25   Correct?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1029



            1        A    Correct.

            2                  MR. WEINBERG:  Now, let me show you --

            3                  Do we have the resignation letters?  Are

            4        they in evidence?

            5                  MR. DANDAR:  While they're looking for that,

            6        Judge, did you say this is Day 31?

            7                  THE COURT:  If what Mr. Weinberg said

            8        yesterday, that that was Day 30, then this would be

            9        Day 31.  I couldn't keep up with it.

           10                  MR. WEINBERG:  May I approach the clerk?

           11                  THE COURT:  You may.

           12                  MR. WEINBERG:  This is 242 (handing), your

           13        Honor.

           14   BY MR. WEINBERG:

           15        Q    I've showed you what we've marked as 242 --

           16        A    Yes.

           17        Q    -- Defendant's 242.  Can you look at those and

           18   tell me if those are copies of the three resignation

           19   letters which you signed on March 3rd, 1987?

           20        A    Yes, they are.

           21        Q    Now, you are familiar, are you not, with a dot

           22   matrix printer?  Do you know what that is?  Do you remember

           23   the printers back 13 or 14 years ago?

           24        A    Yes, I believe I know what you're talking about.

           25        Q    Right.  And this letter -- you can tell that

                                  KANABAY COURT REPORTERS
 

                                                   Page 1030



            1   these letters were typed on dot matrix printers.  They were

            2   printed out on dot matrix printers.  You can even see on

            3   the side, the column, some of the holes?  Do you see that?

            4   They line up exactly on the three letters, right?

            5        A    Okay.

            6        Q    And it's impossible to have typed up a letter on

            7   a dot matrix printer years before and then run it back

            8   through and put a date on it years later.  That's

            9   impossible, isn't it?

           10                  MR. DANDAR:  Objection.  Outside of his

           11        expertise.

           12                  THE COURT:  Do you know the answer to that?

           13                  THE WITNESS:  No.  But I know the answer to

           14        why these documents have this date on here.

           15                  THE COURT:  Okay.  If he can't answer that

           16        question, he can't answer it.

           17                  MR. WEINBERG:  I move these into evidence,

           18        your Honor.

           19                  THE COURT:  All right.

           20                  THE WITNESS:  Oh, can I have this?

           21                  MR. WEINBERG:  Sure.  She has it.

           22                  THE COURT:  What is the number, please?

           23                  MR. WEINBERG:  It's 242.

           24   BY MR. WEINBERG:

           25        Q    Now, in your direct testimony, you made a big

                                  KANABAY COURT REPORTERS
 

                                                   Page 1031



            1   point about the CSWs, the completed staff work, you know,

            2   like the purchase orders.  Do you know what I'm talking

            3   about?

            4        A    Yes, I do.

            5        Q    And --

            6        A    I didn't make a big deal out of it.  I think I

            7   explained it.

            8        Q    Well, the point was, you said that in order to --

            9   for the medical liaison office to buy, you know, chloral

           10   hydrate, you would have to have a CSW or purchase order

           11   issued.  Correct?

           12        A    Right.

           13        Q    And then you drew some conclusion.  Because there

           14   wasn't any purchase order, your conclusion was that that

           15   hadn't happened?  Was that what your conclusion was?

           16        A    I do not believe that that was my conclusion.

           17        Q    In any event, you're familiar, are you not, with

           18   cash floats?  Do you know what that is?

           19        A    Sure.

           20        Q    And are you familiar with the policy that

           21   provides for a float for the MLO?  Are you familiar with

           22   that?

           23        A    I am not.

           24        Q    Explain to the Court what a float is.

           25        A    Well, I mean, if you have a policy there, I mean,

                                  KANABAY COURT REPORTERS
 

                                                   Page 1032



            1   I --

            2                  THE COURT:  He just wants you to tell me

            3        what a float is, if you know.

            4                  THE WITNESS:  I don't.

            5   BY MR. WEINBERG:

            6        Q    I thought you just said you did.

            7        A    Well, not in the -- I don't think -- maybe I

            8   misspoke, because I don't understand the context you're

            9   talking about float here.

           10                  MR. WEINBERG:  All right.  I'll have it

           11        marked.

           12                  Could you mark this as 243, I believe.

           13                  This would be 243, your Honor (handing).

           14                  THE WITNESS:  Thank you.

           15   BY MR. WEINBERG:

           16        Q    Now, I've handed you a -- Defendant's 243, which

           17   is Flag Order 3082R, November 15th, 1971, with regard to

           18   medical finance.  And do you see that this policy

           19   reinstates in every Sea Organization the use of a $1,000

           20   medical float?  Do you see that?

           21        A    Yes, I do.

           22        Q    And do you understand what that means?

           23        A    Yes, I do.  But this does not negate someone else

           24   that has a medical emergency, as stated in that CSW exhibit

           25   that we put in for medical emergencies, of what it has to

                                  KANABAY COURT REPORTERS
 

                                                   Page 1033



            1   go through.

            2        Q    Well, do you understand that what this is saying

            3   is that for every Sea Organization, including -- which

            4   would include Flag Services, correct, Fort Harrison?

            5        A    Correct.

            6        Q    Right.  That for every organization, the MLO, the

            7   medical liaison office, has a $1,000 float from which they

            8   don't have to issue these CSWs and purchase orders and can

            9   go get what they need?  Do you understand that?

           10        A    Well, hang on a second, because I'm looking at

           11   this second page here, and it says since the medical

           12   officer has the authority in the Org more than anyone else

           13   under need of these purchases, he does not need division

           14   reapproval.  He does not have to have a CSW for his money.

           15   Division 3 just disburses the money each time.  A simple

           16   red purchase order stating $1,000 for a medical float is

           17   sufficient to get the money.

           18             Now, what this is specifically referring to is a

           19   medical officer having this float, but there's another

           20   policy letter in Scientology that's in Division 3 that has

           21   to do with accounting.  Even though this medical officer

           22   would have this float, he would still have to account in

           23   detail where the last $1,000 went as well.

           24        Q    Well, look at under "essential data."  Do you see

           25   where it says this policy -- this medical float policy is

                                  KANABAY COURT REPORTERS
 

                                                   Page 1034



            1   established to prevent the medical officer from having to

            2   spend much time or worry on finance?

            3        A    Yes.

            4        Q    Do you understand that the whole concept of every

            5   time I had to go get chloral hydrate for a parishioner that

            6   needed it, that I would have to fill out some CSW, that

            7   that might not be a very efficient way to help people and

            8   that that's what this float policy is all about?

            9        A    Well, you know, I understand what you're saying

           10   in theory and, you know, I don't -- I really don't think

           11   it's a common practice.

           12                  THE COURT:  Are you saying that when you go

           13        back and get more -- $1,000 float money that they're

           14        going to want to see what you spent the money for?

           15                  THE WITNESS:  Yes.  Yes, your Honor.

           16                  THE COURT:  And how are you going to account

           17        for that?  With receipts or what?

           18                  THE WITNESS:  Yes, your Honor.

           19   BY MR. WEINBERG:

           20        Q    Now, have you ever been a medical liaison

           21   officer?

           22        A    No, I have not.

           23                  THE COURT:  I mean, this sounds to me like a

           24        petty cash fund of sorts.

           25                  MR. WEINBERG:  That's exactly --

                                  KANABAY COURT REPORTERS
 

                                                   Page 1035



            1                  THE COURT:  When you have a petty cash fund,

            2        you still -- if it's a $1,000 petty cash fund, you're

            3        going to have to show somebody what it is you spent

            4        the money on.

            5                  MR. DANDAR:  I also object.  The last

            6        sentence on this document talks about it's only for

            7        the crew.  They hadn't mentioned anything about public

            8        members.

            9                  THE COURT:  Well, you can bring that up on

           10        cross-examination.

           11                  MR. DANDAR:  All right.

           12                  MR. WEINBERG:  I was just raising this

           13        because of the testimony on direct, that you needed a

           14        CSW.  This policy says you don't need a CSW.

           15                  THE COURT:  I frankly didn't even remember

           16        it, so . . .

           17                  MR. WEINBERG:  You do now, right?

           18                  THE COURT:  I do now.

           19                  MR. WEINBERG:  And then I'll just show

           20        you --

           21                  Then I'll mark, just so it's in the record

           22        the -- as the next exhibit@.

           23                  THE CLERK:  244.

           24                  MR. WEINBERG:  244, take one second (handing

           25        to Court and witness).

                                  KANABAY COURT REPORTERS
 

                                                   Page 1036



            1   BY MR. WEINBERG:

            2        Q    The Modern Management Technology Defined:

            3   Hubbard Dictionary of Administration and Management.  You

            4   know about that dictionary, right, Mr. Prince?

            5        A    Yes, I do.

            6        Q    If you go to "medical float," do you see on

            7   page 329, it says:  "With this float, the medical officer

            8   buys doctor-dentist-medical-health specialist visits and

            9   treatment, laboratory analysis, X rays, medical equipment

           10   essential for a person's health, medicines, prescriptions,

           11   and transportation."  Do you see that?

           12        A    Yes.

           13        Q    So something like a prescription for chloral

           14   hydrate would be covered by the medical float, would it

           15   not?

           16        A    This references this same Flag order.  I gave

           17   testimony that a Flag order has to do with Sea Org

           18   personnel.  It has to do with people that are on staff in

           19   the Sea Org.

           20        Q    So -- so the MLO officer has to get a purchase

           21   order to go get chloral hydrate for a parishioner who is

           22   staying at the Fort Harrison, but if he or she doesn't --

           23   if a Sea Org member is at the Fort Harrison?  Is that your

           24   testimony?

           25        A    My testimony is the evidence that you've given me

                                  KANABAY COURT REPORTERS
 

                                                   Page 1037



            1   here states specifically that this is how it is done for

            2   staff members.  The public, being a paying public,

            3   certainly have different policies.

            4                  THE COURT:  To be candid with you, I think

            5        it's been conceded that -- by somebody that Lisa

            6        McPherson should not have been to the hotel.  Hasn't

            7        that been conceded?

            8                  MR. WEINBERG:  Well, I don't think conceded.

            9        I think people were trying --

           10                  THE COURT:  To suggest that it really ought

           11        not to have been taken care of --

           12                  MR. WEINBERG:  It would have been a smarter

           13        thing to be in a different environment.

           14                  THE COURT:  Right.  So you have to assume

           15        that the medical that they're talking about in this --

           16        I'll ask Mr. Prince this.

           17                  You have to assume that normally it's going

           18        to be Sea Org members who are going to be taken care

           19        of because they're the ones that would be living in a

           20        Scientology facility.

           21                  THE WITNESS:  Correct.

           22                  THE COURT:  But at some place like Flag,

           23        where they have maybe -- I guess you have to be a Sea

           24        Org member to come there and take the technology

           25        courses that they offered.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1038



            1                  THE WITNESS:  No, you don't have to be --

            2                  THE COURT:  Right.  So if somebody is

            3        there -- there, and they have to get a -- I mean, I

            4        don't know what -- they get sick and somebody is

            5        called in and they need some minor medicine, I would

            6        assume that they would allow this policy to govern,

            7        rather than have to go through all the harangue of

            8        whatever it was you were talking about.  But I think

            9        that whatever it is, you're going to still,

           10        nonetheless, account for whatever it is you bought out

           11        of your petty cash fund or your float fund or whatever

           12        you want to call it.

           13                  THE WITNESS:  Sure.  And the other thing,

           14        your Honor, is that in no way will a Scientology

           15        organization pay the medical expenses of a public

           16        paying staff member, a public person coming in, using

           17        services in Scientology.  You know, the money works

           18        the other way.  The public gives the money to

           19        Scientology.  Scientology doesn't then --

           20                  THE COURT:  Well, we know they were using

           21        Ms. McPherson's money to pay for certain things

           22        because she eventually ran out.

           23                  THE WITNESS:  Correct.

           24                  THE COURT:  So presumably everything was

           25        subject.  I mean, if she was really in a bad

                                  KANABAY COURT REPORTERS
 

                                                   Page 1039



            1        situation, a psychotic, where she couldn't -- you

            2        know, they apparently were free to use her funds, I

            3        guess.

            4                  THE WITNESS:  Yes.

            5                  THE COURT:  So you can't really tell us,

            6        under the circumstances that we're dealing with here,

            7        whether chloral hydrate was necessarily purchased out

            8        of the float money or whether it was purchased with

            9        this CSW.

           10                  THE WITNESS:  Correct.

           11                  THE COURT:  Would that be fair?

           12                  THE WITNESS:  Yes, your Honor.

           13                  MR. WEINBERG:  Just a few more questions,

           14        one more area.

           15   BY MR. WEINBERG:

           16        Q    Back to the gun situation just for a moment.

           17   Yesterday when we talked about this or the day before --

           18   I've sort of lost count now -- you sort of suggested that

           19   it was more of a -- of a joke, that you really weren't that

           20   serious.

           21                  THE COURT:  What was a joke?

           22   BY MR. WEINBERG:

           23        Q    That you weren't really threatening anybody.

           24                  THE COURT:  What are you talking about?

           25                  MR. WEINBERG:  Oh, I'm sorry, the gun, when

                                  KANABAY COURT REPORTERS
 

                                                   Page 1040



            1        he says he pulled the guns on David Miscavige.

            2        A    I didn't say anything about a joke.  I said I did

            3   it out of self-protection.

            4   BY MR. WEINBERG:

            5        Q    All right.  So --

            6        A    That's the testimony that I gave from this stand.

            7        Q    Well, I thought I heard you say that you didn't

            8   really threaten anybody.

            9        A    I can't help what you thought you heard, but I

           10   can tell you right now that when -- after -- what I

           11   testified to in this courtroom is that after those people

           12   grabbed me and I got away from them, I went to my room and

           13   got these weapons to protect myself.  It wasn't a joke to

           14   me at that point.

           15        Q    And when you first told -- do you remember when

           16   you first told this story about guns?  That was in the

           17   FACTNet deposition, which was the first deposition I

           18   think -- was that the first deposition you gave after you

           19   became a witness against Scientology?

           20                  MR. DANDAR:  Objection to form.

           21                  THE COURT:  No, that's all right.

           22                  MR. DANDAR:  All right.

           23                  THE COURT:  Overruled.

           24        A    I'm not sure.

           25   BY MR. WEINBERG:

                                  KANABAY COURT REPORTERS
 

                                                   Page 1041



            1        Q    All right.  Do you remember in that deposition

            2   that you said something to the effect that bodies were

            3   going to start dropping?

            4        A    If you have it, you know, I'd like to see it.

            5        Q    Okay.

            6        A    If you just have it, you show it to me, and I'll

            7   tell you what I said.

            8        Q    We'll play a short clip, you'll have it, and then

            9   I'll have a couple of questions.

           10        A    Okay.

           11                  THE COURT:  A short clip from what?  A

           12        deposition?

           13                  MR. WEINBERG:  Of his deposition.  It's his

           14        deposition.

           15                  THE COURT:  In this case?

           16                  MR. WEINBERG:  No.  It's his deposition in

           17        the FACTNet case.  It will take just a minute, I

           18        think.

           19                  MR. DANDAR:  Apparently need it brighter.

           20                  MR. WEINBERG:  I'm amazed she can pull this

           21        stuff up.

           22                  THE WITNESS:  Right in this room, I'm having

           23        a difficult time.  I think I'd better go around.

           24                  THE COURT:  Sure.  Wait a minute.

           25                  MR. WEINBERG:  Wait just one second.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1042



            1                  (The witness left the stand,)

            2                  THE WITNESS:  Okay.

            3                  THE COURT:  Okay.

            4                  (The tape was played as follows.)

            5               FROM THE DEPOSITION OF JESSE PRINCE

            6                      DATED AUGUST 20, 1998

            7        A    And I went to my room, where I had a loaded .45

            8   and a loaded Mini 14, and I came back to David Miscavige's

            9   office with those guns.  And I said, "Which one of you

           10   wants to fuck with me now?"

           11   BY MR. ROSEN:

           12        Q    And what happened?  I'm sitting here with bated

           13   breath thinking -- to hear the end of the story.

           14        A    Well, do you want me to tell it or do you want --

           15        Q    No, I'm (unintelligible) the answer to that

           16   question that you raised.

           17        A    Well, I'm confused now.  What question did I

           18   raise?

           19        Q    You posed a question to Mr. Miscavige that "which

           20   one of you wants to F with me now?"

           21        A    Right.  So at this point Vicki comes running out:

           22   "Jesse, no, no, no, it's all been sanctioned by Annie

           23   Broker.  She knows about everything.  And Pat Broker.  She

           24   knows about everything.  Don't do this."

           25             Then here comes David Miscavige.  He completely

                                  KANABAY COURT REPORTERS
 

                                                   Page 1043



            1   changes his tune now:  "Oh, Jesse," you know, "we've been

            2   friends and we've gone through so much.  Let's not go here.

            3   It's a mistake what we've done here.  I know you're upset.

            4   Please let's talk about it."

            5             And I stood there looking at them with my guns in

            6   my hand, wondering.  You know, like you can pat a snake on

            7   the head, but as soon as you pull your hand back, he going

            8   to bite.  And I was wondering if that was going to happen

            9   to me as I'm sitting here with these guns.

           10             And, you know, David is like pleading.  Then it

           11   turns into a situation like, "Well," you know, "we've got

           12   lots of guns too."

           13             And I said, "What the hell do you all want to do,

           14   have a shootout?  Because I've got guns here, and bodies

           15   are going to start dropping."

           16                  (End of tape.  The witness returned to the

           17                  stand)

           18                  MR. DANDAR:  I object.  It's apples and

           19        oranges.  It doesn't even go to try to impeach the

           20        witness.

           21                  MR. WEINBERG:  Well, first --

           22                  THE COURT:  I don't know what the purpose

           23        was, so we'll hear now.

           24   BY MR. WEINBERG:

           25        Q    Yesterday or the day before, July 9th, when I

                                  KANABAY COURT REPORTERS
 

                                                   Page 1044



            1   asked you the question about whether you threatened to kill

            2   Mr. Miscavige, you said, quote, "I didn't threaten to kill

            3   Mr. Miscavige."

            4             Now, when you told that story to Mr. Rosen at

            5   that August 1998 deposition, you said in front of

            6   Mr. Miscavige, you know, "Bodies are going to start

            7   dropping," or something like that.  Right?  I mean, you

            8   said that --

            9        A    The video speaks for itself, and I don't contest

           10   it.  I mean, that's -- what I said is what happened, is

           11   what I meant.  So you can take it any way you want.

           12        Q    Now, when you said a Mini 14 --

           13                  THE COURT:  A what?

           14                  MR. WEINBERG:  A Mini 14.

           15                  THE COURT:  What do we care about this,

           16        about these guns?

           17                  MR. WEINBERG:  About --

           18                  THE COURT:  About something that went on

           19        between him and -- way back when.

           20                  MR. WEINBERG:  No, it's just the opposite,

           21        your Honor.  We don't believe this incident ever

           22        happened and that he just made this up for reasons

           23        that one can only imagine when he told this story for

           24        the first time in August of 1998.  But, your Honor, I

           25        mean --

                                  KANABAY COURT REPORTERS
 

                                                   Page 1045



            1   BY MR. WEINBERG:

            2        Q    Let me ask you.  A Mini 14 is an assault rifle,

            3   right?

            4        A    Correct.

            5                  MR. WEINBERG:  Mr. Bailiff, could I possibly

            6        have our model there?

            7                  This is just a replica.

            8                  THE COURT:  Okay.

            9                  MR. WEINBERG:  It's plastic.  It's plastic.

           10        It's not real.

           11                  MR. DANDAR:  I just wish -- I just wish the

           12        St. Pete Times was here with their camera to see this.

           13        I think this is an unbelievable game --

           14                  THE COURT:  Is that an objection?

           15                  MR. DANDAR:  -- of showmanship.  It's

           16        irrelevant.

           17                  THE COURT:  What is the point?

           18   BY MR. WEINBERG:

           19        Q    (Showing)  Is that what you're talking about?

           20   Something like that?

           21        A    Similar to, but not quite.

           22                  MR. WEINBERG:  All right.  I'm going to give

           23        you this back.

           24   BY MR. WEINBERG:

           25        Q    And you still contend that that's what you pulled

                                  KANABAY COURT REPORTERS
 

                                                   Page 1046



            1   on Mr. Miscavige and the other twelve people that were

            2   there.  Right?

            3        A    Mr. Weinberg, I stand behind the testimony that

            4   I've given about that incident in the past and anything

            5   I've said --

            6        Q    All right.

            7        A    -- in this hearing.

            8        Q    And then they just let you go right back to your

            9   room and put the guns in your room?

           10        A    Correct.

           11        Q    And they didn't take them away from you?

           12        A    Correct.

           13        Q    And they just stayed there for the next, what,

           14   five years?

           15        A    No.  I eventually sold the Mini 14.

           16                  MR. WEINBERG:  Okay.  I don't have any

           17        further questions, your Honor.

           18                  THE COURT:  All right.  Redirect?

           19                  MR. DANDAR:  Yes.

           20                       REDIRECT EXAMINATION

           21   BY MR. DANDAR:

           22        Q    Well, we ought to pick it up right where

           23   Mr. Weinberg just left off.

           24                  (Mr. Weinberg spoke to Mr. Dandar off the

           25                  record.)

                                  KANABAY COURT REPORTERS
 

                                                   Page 1047



            1                  MR. DANDAR:  Do you want me to wait?

            2                  MR. WEINBERG:  That's fine.  I just don't

            3        want to interrupt you.

            4   BY MR. DANDAR:

            5        Q    When you had these two real guns loaded as you

            6   described when you were being, quote, busted, unquote,

            7   Mr. Miscavige came right up to you while you held the two

            8   guns in your hands, correct?

            9        A    Correct.

           10        Q    And did you or he laugh?

           11        A    Laugh?

           12        Q    Laugh.

           13        A    Like laugh?

           14        Q    Yes, like laugh.

           15        A    No.

           16        Q    Did Mr. Miscavige say -- indicate to you any fear

           17   whatsoever?

           18        A    No.

           19        Q    And then you turned around and walked back to

           20   your room?

           21        A    Correct.  I believe he may have even followed me

           22   there.  And we then proceeded to that area of the ship

           23   where we saw the pictures with the swimming pool, with the

           24   mast, and we had a conversation there.

           25        Q    Did you sit around the pool?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1048



            1        A    Well, actually, there's an area inside that's

            2   air-conditioned, has a bar in there, and we actually sat in

            3   there and drank cold water and ate fruit.

            4        Q    And when Mr. Weinberg -- or, you said that Vicki

            5   Aznaran, the president of the RTC, told you that this had

            6   all been sanctioned by Annie and Pat Broker, did she

            7   accompany you to the RPF after that?

            8        A    Yes, and other people for sure.

            9        Q    Because she took the Annie and Pat Broker side,

           10   rather than the David Miscavige power struggle side?

           11        A    Correct.

           12        Q    You're going to the RPF, Mr. Prince.  Did it have

           13   anything to do with any mistakes you made in applying the

           14   tech of Scientology?

           15        A    Absolutely not.

           16                  THE COURT:  What does this all have to do

           17        with anything I'm hearing?

           18                  MR. DANDAR:  Just trying to straighten out

           19        some misconceptions.  My computer just went onto

           20        standby.  That's not what I wanted to happen.  All

           21        right.

           22   BY MR. DANDAR:

           23        Q    Now, when you left Scientology, did you just walk

           24   out the door in '92?

           25        A    No.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1049



            1        Q    How did you leave?

            2        A    I had to basically sign a release saying that

            3   Scientology has never done anything wrong with me and has

            4   no liability for anything that I may be suffering then or

            5   could realize in the future and on and on and on --

            6                  THE COURT:  Wasn't that release introduced

            7        yesterday?

            8                  MR. DANDAR:  Yes.

            9                  THE WITNESS:  Yes.

           10                  THE COURT:  So it said whatever it said.

           11                  MR. DANDAR:  Well, I wanted to ask him a

           12        question about it, and you can see my paralegal is not

           13        here, so I'm flying.

           14   BY MR. DANDAR:

           15        Q    That release says that you were releasing the

           16   Church of Scientology from any and all damages for valuable

           17   consideration.  There's two or three paragraphs that say

           18   that.

           19        A    M'hum (affirmative).

           20        Q    What valuable consideration did you receive from

           21   the Church of Scientology to sign that release?

           22                  MR. WEINBERG:  It was asked and answered.

           23        He explained --

           24                  THE WITNESS:  No, I never answered this.

           25                  THE COURT:  Just a second.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1050



            1                  MR. WEINBERG:  Objection, asked and answered

            2        by Mr. Dandar.  I didn't go back into it.  It's beyond

            3        the scope.  But he already -- Mr. Prince already

            4        explained how much money he got in return for signing

            5        the release on direct.

            6                  THE COURT:  He did?

            7                  MR. WEINBERG:  Yes.  He said --

            8                  THE WITNESS:  No, I didn't.

            9                  MR. DANDAR:  Shhh.

           10                  MR. WEINBERG:  I thought he said a thousand

           11        plus dollars.

           12                  THE COURT:  I don't remember it, so I'm

           13        going to allow him to ask it.  I don't remember it.

           14                  MR. WEINBERG:  Okay.  I might have brain

           15        drain.

           16                  MR. DANDAR:  I think you're talking about

           17        some meeting in December of '94.

           18                  MR. WEINBERG:  No, I don't think so.

           19                  THE COURT:  That was more than a thousand.

           20                  THE WITNESS:  Twenty-seven.

           21                  MR. WEINBERG:  I really think he did, but it

           22        doesn't matter.

           23                  THE COURT:  All right.

           24   BY MR. DANDAR:

           25        Q    Well, did you receive anything of consideration

                                  KANABAY COURT REPORTERS
 

                                                   Page 1051



            1   to sign those releases?

            2        A    I think I received $2,000.

            3        Q    Okay.  From whom?

            4        A    Good question.  Marty just handed me the money.

            5        Q    Well, do you have any idea why it's not mentioned

            6   in the release?

            7        A    I do not.

            8                  THE COURT:  Most releases don't tell you

            9        what.  Most releases say "ten dollars and other

           10        valuable consideration," don't they?

           11                  MR. DANDAR:  Not the ones that I've seen,

           12        Judge.

           13                  THE COURT:  Most of the ones I've seen do,

           14        because I always wondered why they pick ten dollars.

           15   BY MR. DANDAR:

           16        Q    Mr. Prince, how is it that Ms. Dana Hanson wanted

           17   to -- picked you to come into her public business and set

           18   up her business to run the Hubbard tech?

           19                  MR. WEINBERG:  Objection as to competency.

           20        I mean, how is it that this woman --

           21                  THE COURT:  I'll sustain that.  Quite

           22        frankly, I suspect that he's already testified he was

           23        one of the premier experts on the tech.  So I mean, I

           24        think I can assume that.

           25                  MR. DANDAR:  Okay.  If you can assume that,

                                  KANABAY COURT REPORTERS
 

                                                   Page 1052



            1        I'll go on.

            2   BY MR. DANDAR:

            3        Q    Now, Mr. Prince, you were --

            4                  THE COURT:  I can't assume that, but, I

            5        mean, that is the testimony that he has put forth.

            6                  MR. DANDAR:  Okay.

            7                  THE COURT:  So . . .

            8   BY MR. DANDAR:

            9        Q    Mr. Prince, is there any other reason as far as

           10   you know -- without telling us what other people said -- is

           11   there any other reason as far as you know as to why Dana

           12   Hanson hired you, other than your expertise on the tech?

           13        A    You know, there --

           14                  THE COURT:  If you don't know --

           15        A    I don't know the reason.

           16                  THE COURT:  Remember yesterday, that's a

           17        perfectly valid answer in a court of law, "I don't

           18        know."

           19                  THE WITNESS:  Yes.  I don't know of any

           20        other reason.

           21   BY MR. DANDAR:

           22        Q    Mr. Prince, you wanted to tell Mr. Weinberg a

           23   little while ago why the date of March 3, 1987, appears on

           24   all three resignation letters which is Defendant's

           25   Exhibit 242.  Why does the date appear on there?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1053



            1        A    Because after me and Mr. Miscavige had our little

            2   chat on the ship area after the gun incident, he said, you

            3   know:  "We have your undated resignation, but just help

            4   us," you know, "do everything right now."  You know:

            5   "We're talking again.  You're going to take this fall;

            6   you're going to do this.  Would you please just do it again

            7   and sign these new ones?"

            8             And I said, "Yes, I'll do it."

            9             So that's why these are signed this way.

           10        Q    So there exists other resignation letters that

           11   are undated?

           12        A    Yes, correct.

           13        Q    Have you seen those?  Have they been produced to

           14   you ever?

           15        A    Not today.

           16        Q    Have you ever seen them before this?

           17        A    Sure.

           18        Q    Where?

           19        A    In the Religious Technology Center in my office,

           20   where I signed it.  I also saw it in David Miscavige's

           21   office on the day that I was removed from the executive

           22   position of Religious Technology Center.

           23        Q    Okay.  So on the resignation letters that are in

           24   evidence, those are the ones you actually signed on

           25   March 3rd of 1987?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1054



            1        A    Correct.

            2        Q    Okay.  And you did that because your friend David

            3   Miscavige asked you to do it?

            4        A    Correct.

            5        Q    You weren't threatened and forced to do it?

            6        A    Correct.

            7        Q    Were you being a good Scientologist when you

            8   signed that?

            9        A    Absolutely.

           10        Q    All right.  Now, Mr. Houghton, who is a defendant

           11   in this case, who is in the MLO office, who is the one that

           12   came up with the idea of using a syringe to get aspirin and

           13   Benadryl --

           14                  MR. WEINBERG:  Objection, your Honor.  First

           15        of all, to the form; he's just testifying.  Secondly,

           16        he's misstating the testimony.  And thirdly, it's

           17        beyond the scope of my cross-examination.  I didn't

           18        ask anything about Mr. Houghton.

           19                  THE COURT:  I suspect he's going to go back

           20        to the CSW that you felt compelled to raise in some

           21        fashion.

           22                  MR. WEINBERG:  That's fine.  But then --

           23                  MR. DANDAR:  How do you know that?

           24                  MR. WEINBERG:  -- I object to the form.

           25        Then I object to the form, as he's just making a

                                  KANABAY COURT REPORTERS
 

                                                   Page 1055



            1        speech.

            2                  THE COURT:  Your objection to form is

            3        overruled because he's not.  He's trying to provide

            4        some background to see if this witness can answer a

            5        question.

            6   BY MR. DANDAR:

            7        Q    Mr. Houghton stated on page 71 of his deposition,

            8   where the question begins on line 18, as follows.

            9   Question --

           10                  THE COURT:  You folks back there, I can hear

           11        you clear up here, so it must be disconcerting to

           12        Mr. Dandar.  So keep your voices down.  Or you may

           13        step out of the room at anytime you need to speak in a

           14        loud voice.

           15                  Go ahead.

           16   BY MR. DANDAR:

           17        Q    Question:  "And where did you get the money to

           18   buy the prescription?"

           19             Answer:  "I got it from Alain Kartuzinski."

           20             Question:  "And why did you go to him to get the

           21   money?"

           22             Answer:  "I didn't have the personal funds to pay

           23   for it.  I didn't know.  I don't know exactly why I went to

           24   Alain.  I don't know what events led me up to getting the

           25   money from Alain, but I do know that's where I got the

                                  KANABAY COURT REPORTERS
 

                                                   Page 1056



            1   money."

            2             The question is, Is Mr. Kartuzinski, back in

            3   November and December of 1995, pursuant to his testimony in

            4   this case, part of the MLO?

            5        A    No.

            6        Q    What was he?

            7        A    He was the Senior CS --

            8                  THE COURT:  I'll tell counsel what you

            9        really don't have to do is ask this witness that.  I

           10        would know that.

           11                  MR. DANDAR:  Sorry.

           12                  THE COURT:  You can save a lot of this for

           13        closing argument.

           14                  MR. DANDAR:  All right.  There's so much of

           15        that.

           16                  All right.  That takes care of this part.

           17                  Let's put this away.

           18                  THE COURT:  Is this a witness, by chance,

           19        that has just come in?

           20                  A SPEAKER:  (Shook head negatively.)  No,

           21        your Honor.

           22                  THE COURT:  Okay.  Welcome then.  I didn't

           23        want somebody to come in that was maybe going to

           24        testify.

           25   BY MR. DANDAR:

                                  KANABAY COURT REPORTERS
 

                                                   Page 1057



            1        Q    All right.  Mr. Prince, in your tenure in

            2   Clearwater at the Lisa McPherson Trust, did you ever see

            3   the Church of Scientology picketing the Lisa McPherson

            4   Trust?

            5        A    Absolutely.  You know -- yes.  Yes, many times.

            6        Q    Would they do it in front of the building, the

            7   office?

            8        A    They would do it in front of the building.  They

            9   would do it inside the building.  There's many police

           10   reports of Scientologists running and screaming, disrupting

           11   activities.  Again, my friend -- my good friend, Judge

           12   Penick, can speak about that.  And we watched videos for

           13   days.  He would be a great witness about that.

           14        Q    Okay.  All right.  Do you know if anyone from the

           15   Lisa McPherson Trust hired private investigators to follow

           16   Church members around?

           17        A    Never.

           18        Q    Go to their homes and picket their homes?

           19        A    Never.

           20        Q    Pass out leaflets in their neighborhood?

           21        A    No.

           22        Q    Now, even though you left the Church of

           23   Scientology, have you ever divulged the confidential PC

           24   folders of the people that you either audited or were a

           25   case supervisor over?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1058



            1        A    No, I have not, never.

            2        Q    Now, Mr. Weinberg went back and talked to you

            3   about your deposition that you gave on behalf of Religious

            4   Technology Center, where their former attorney, Joseph

            5   Yanny, was suing them or RTC was suing him.  I'm not sure.

            6   Do you remember which way that was?

            7        A    I don't remember which way it was going.

            8        Q    Okay.  But anyway, that was back in 1989, while

            9   you were still in your demoted status?

           10        A    You know, that had been some years past that,

           11   yes.

           12        Q    Okay.  And when you met -- you said you met with

           13   Mr. Earle Cooley, the attorney for RTC, before your

           14   deposition commenced?

           15        A    Correct.

           16        Q    Do you also recall meeting with a person by the

           17   name of Lynn Farney?

           18        A    Yes.

           19        Q    And the reason why I know this is it's in your

           20   deposition copy that Mr. Weinberg gave me.  Before today --

           21   in fact, as you sit here today, have you ever seen a copy

           22   of that deposition?

           23        A    No.

           24        Q    That deposition is dated September 11th of 1989.

           25   Mr. Weinberg questioned you in your deposition in this case

                                  KANABAY COURT REPORTERS
 

                                                   Page 1059



            1   that was taken in '99, ten years after the RTC deposition.

            2   Do you remember him questioning you about that deposition?

            3        A    Yes.

            4        Q    Did he give you a copy of that deposition back

            5   then?

            6        A    No.

            7        Q    Now, Mr. Farney, do you know -- back at the time

            8   that he and Mr. Cooley, the attorney, met with you before

            9   the RTC deposition, do you know what position he had?

           10        A    Mr. Farney had been on a Rehabilitation Project

           11   Force with myself.  Mr. Lynn Farney is a person that I used

           12   to create and establish the Office of Special Affairs at

           13   International.  I had --

           14                  MR. WEINBERG:  Your Honor, he just asked him

           15        what position he was in at the time that he supposedly

           16        had this meeting with him.  Now we're getting the

           17        whole history.  Can he just answer the question,

           18        please?

           19                  THE COURT:  Sustained.

           20   BY MR. DANDAR:

           21        Q    At the time of his deposition, what was his

           22   position?

           23        A    Mr. Farney was working in OSA International.  It

           24   was my belief that Mr. Farney was working in OSA

           25   International.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1060



            1                  THE COURT:  I'm sorry, I must have missed

            2        the beginning of this.  What did you initially ask

            3        him?  If Mr. Farney was --

            4                  MR. DANDAR:  Part of the meeting preparing

            5        Mr. Prince for deposition in the RTC case.

            6                  THE COURT:  Okay.

            7                  MR. DANDAR:  RTC slash Yanny, Y-a-n-n-e-y.

            8                  THE WITNESS:  Y-a-n-n-y.

            9                  MR. DANDAR:  Okay.  Thank you.

           10   BY MR. DANDAR:

           11        Q    Mr. Farney is someone that you worked with in

           12   establishing the Office of Special Affairs?

           13        A    Correct.

           14        Q    Do you remember what year that was?

           15        A    '84.  '83, '84.

           16        Q    Okay.  And are you aware that Mr. Farney is also

           17   the person who met with all the staff members after Lisa

           18   McPherson's death?

           19                  MR. WEINBERG:  Objection, your Honor --

           20        A    No, I was not aware of that.

           21                  MR. WEINBERG:  Objection to form.  He's

           22        testifying.

           23                  THE COURT:  True.  Sustained.  However, he

           24        wasn't aware of it, so --

           25                  MR. WEINBERG:  I understand.  It's just --

                                  KANABAY COURT REPORTERS
 

                                                   Page 1061



            1                  THE COURT:  Remember, questions aren't

            2        evidence, only the answers.

            3   BY MR. DANDAR:

            4        Q    Now, in that meeting before your deposition, who

            5   instructed you to avoid telling the truth in your

            6   deposition?

            7        A    Mr. Rathbun and Mr. Cooley.

            8                  THE COURT:  Is it Rathburn or Rathbun?

            9                  MR. WEINBERG:  Bun.

           10                  THE COURT:  Bun.

           11                  THE WITNESS:  Rathbun.

           12                  THE COURT:  B-u-n.

           13                  MR. WEINBERG:  Right.

           14                  MR. DANDAR:  And it's Ms. Brooks, not

           15        Mrs. Brooks.  Never mind.

           16                  MR. WEINBERG:  R-a-t-h-b-u-n.

           17                  MR. DANDAR:  I'm sorry.  All right.

           18   BY MR. DANDAR:

           19        Q    Did it surprise you when Mr. Cooley and

           20   Mr. Rathbun were giving you instructions on not telling the

           21   truth?

           22        A    No, it did not.

           23        Q    And why is that?

           24        A    Because it's expected.

           25        Q    Why is that?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1062



            1        A    Because you have to protect Scientology.  You

            2   have to protect -- you know, it's like placing Scientology

            3   and Scientologists at risk being a crime.  You have -- you

            4   are expected as a member of the Church of Scientology to do

            5   and say whatever you have to to preserve Scientology, to

            6   preserve its leaders.

            7        Q    Is that a written policy?

            8        A    Probably.

            9        Q    And Mr. Yanny --

           10                  MR. WEINBERG:  Well, your Honor, could we

           11        just identify that policy if that's a written policy?

           12        He said "probably."

           13                  THE COURT:  I assume probably he couldn't

           14        tell us --

           15                  MR. WEINBERG:  All right.

           16                  THE COURT:  -- or he would have given us a

           17        number.

           18                  MR. WEINBERG:  Okay.

           19   BY MR. DANDAR:

           20        Q    Can you tell us -- without giving a number, but

           21   can you tell us generally what policy you're talking about?

           22        A    As I sit here today without the materials, I

           23   could not, but I could certainly submit a declaration on it

           24   at a later point.

           25        Q    All right.  What is an acceptable truth?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1063



            1                  MR. WEINBERG:  Objection, your Honor.  I

            2        didn't ask him about --

            3                  THE COURT:  Right.

            4                  MR. WEINBERG:  Beyond the scope.

            5                  THE COURT:  I think he already -- didn't you

            6        already ask that on direct?

            7                  MR. DANDAR:  I did, I did.

            8   BY MR. DANDAR:

            9        Q    Now, you said --

           10                  THE COURT:  Didn't you also testify about

           11        the greatest good for the greatest number?

           12                  THE WITNESS:  Yes, your Honor, I did.

           13                  THE COURT:  So we've heard, I think, a lot

           14        of that.

           15                  MR. DANDAR:  You have, I'm sorry.

           16   BY MR. DANDAR:

           17        Q    Were you working for RTC at the time of that

           18   deposition in 1989?

           19        A    No, I was not.

           20        Q    Well, Mr. Yanny was the former president -- or,

           21   attorney for RTC, correct?

           22        A    Correct.

           23        Q    Why was he suing RTC?  What was that litigation

           24   about?

           25        A    You know, what I recall about that is that when

                                  KANABAY COURT REPORTERS
 

                                                   Page 1064



            1   Joseph Yanny was hired, he was hired by myself and

            2   Ms. Aznaran as the lead counsel for the Religious

            3   Technology Center.  When he was hired --

            4                  THE COURT:  Who was?  I'm sorry.

            5                  THE WITNESS:  Mr. Joseph Yanny, the attorney

            6        that was hired.

            7                  THE COURT:  Mr. Yanny was an attorney?

            8                  MR. DANDAR:  Yes.

            9                  THE WITNESS:  Yes.

           10                  THE COURT:  Oh, okay.

           11                  MR. DANDAR:  In fact, Judge --

           12                  Did we mark that as an exhibit at

           13        deposition?  I'd like to have that marked as an

           14        exhibit since it was used.  But Mr. Yanny is the one

           15        that actually took over questioning of Mr. Prince on

           16        the pertinent pages that Mr. Weinberg pointed out,

           17        although Mr. Yanny had his own attorney there.  He

           18        took it over because Mr. Yanny -- like me and

           19        Mr. Lirot.  I have all this stuff in my head and I

           20        know what's going on.

           21                  So the transcript -- and I'd like to make

           22        that -- and I will make it an exhibit if it's not --

           23        shows that Mr. Yanny took over the questioning of

           24        Mr. Prince in that 1989 deposition.

           25                  THE COURT:  Normally we don't use as an

                                  KANABAY COURT REPORTERS
 

                                                   Page 1065



            1        exhibit something that is just strictly used for

            2        impeachment purposes.

            3                  MR. WEINBERG:  That's why I didn't do it.

            4                  THE COURT:  Right.

            5                  MR. DANDAR:  All right.

            6                  THE COURT:  But if you want to make it an

            7        exhibit, why, that's your -- you can try to do that.

            8                  MR. DANDAR:  All right.

            9   BY MR. DANDAR:

           10        Q    Mr. Prince, you stated to Mr. Weinberg --

           11                  MR. WEINBERG:  Your Honor, let me object.  I

           12        mean, let me intercede for just a second.  Just so

           13        it's clear, Mr. Yanny was the party, was the

           14        plaintiff.  And I think that was clear, but I'm not

           15        sure if it was.

           16                  THE COURT:  I got it.

           17                  MR. WEINBERG:  RTC was the defendant.

           18                  THE COURT:  I didn't realize Mr. Yanny was a

           19        lawyer.  That's why I --

           20                  MR. WEINBERG:  Yes.

           21   BY MR. DANDAR:

           22        Q    So you hired Mr. Yanny to be the attorney for

           23   RTC?

           24        A    Mr. Yanny was -- yes, I did, to be the lead

           25   counsel for RTC.  RTC had other attorneys, but Mr. Yanny

                                  KANABAY COURT REPORTERS
 

                                                   Page 1066



            1   was hired to be the lead counsel for the Religious

            2   Technology Center at that time.

            3        Q    And is it for any particular case?

            4                  MR. WEINBERG:  Object.  Your Honor, I

            5        believe this is all beyond the scope.  All I did was

            6        impeach him on his false testimony, which he admitted

            7        was false in that deposition.  Now to get to the

            8        history of that lawsuit or Joseph Yanny I think is

            9        beyond the scope and not relevant to this proceeding

           10        either.

           11                  THE COURT:  I would tend to agree with that,

           12        Counsel.  You know, if you think it's relevant and

           13        there's something you can tell me about this, I'll

           14        listen to you.  But it's just another one of these

           15        lawsuits, many, many lawsuits.

           16                  MR. DANDAR:  Okay.

           17   BY MR. WEINBERG:

           18        Q    Mr. Prince, do you know whether or not any of the

           19   allegations made between RTC and Joseph Yanny had anything

           20   to do with Mr. Yanny perjuring himself or suborning

           21   perjury?

           22                  THE COURT:  That would be relevant.

           23        A    I don't know.  I don't remember it.

           24   BY MR. DANDAR:

           25        Q    You don't?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1067



            1        A    No.

            2        Q    All right.  Now, did Mr. Yanny have anything to

            3   do with any of the Wollersheim litigation?

            4        A    Yes, he did.  The Wollersheim --

            5                  MR. WEINBERG:  Objection.  That was a yes or

            6        no question, and to -- if we get into the details, I'm

            7        going to object because it's beyond the scope and it's

            8        not relevant.

            9                  THE COURT:  That would be true.

           10                  MR. DANDAR:  Except he brought up the

           11        question, Mr. Weinberg did, about Mr. Prince's

           12        testimony of destruction of the PC folders.

           13                  THE COURT:  Oh, right.

           14                  MR. WEINBERG:  And I impeached him on it

           15        with the Yanny deposition.  He admitted it.  He said

           16        he lied in the deposition.  That's all I used it for.

           17                  THE COURT:  Well, I think at this point

           18        we'll see what his question is.

           19                  MR. WEINBERG:  Okay.

           20   BY MR. DANDAR:

           21        Q    Was Mr. Yanny involved in representing RTC

           22   against Mr. Wollersheim?

           23        A    Yes.

           24        Q    And was Mr. Yanny involved when Mr. Wollersheim's

           25   PC folders were destroyed?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1068



            1        A    He had no personal knowledge of it.

            2        Q    Was any attorney for Scientology involved in that

            3   in any degree?

            4        A    The only one that I know of that would have had

            5   information about that would have been Mr. Earle Cooley.

            6                  MR. WEINBERG:  Objection, "would have had."

            7        I mean, is he saying he did have?

            8                  THE WITNESS:  I can explain if you would

            9        like me to.

           10   BY MR. DANDAR:

           11        Q    Go ahead.  Explain it.

           12        A    The decision to do this was made in a conference

           13   room at Author Services with myself, Vicki Asnaran,

           14   Mr. Rathbun was there, Mr. Cooley was there, and this all

           15   has to do with --

           16                  THE COURT:  Mr. Miscavige was there?

           17                  THE WITNESS:  Yes.  Yes, your Honor.  And

           18        this had --

           19                  THE COURT:  Who else was there?

           20                  THE WITNESS:  Mr. Miscavige, Mr. Lyman

           21        Spurlock I believe was there, myself, Vicki Aznaran,

           22        Mr. Cooley, Marty Rathbun.  And we were sitting in the

           23        conference room discussing it.  Mr. Starkey may have

           24        been there, Mr. Norman Starkey.

           25                  THE COURT:  This is when you discussed

                                  KANABAY COURT REPORTERS
 

                                                   Page 1069



            1        destruction of these records?

            2                  THE WITNESS:  Yes, your Honor.

            3                  THE COURT:  So Mr. Cooley would have heard

            4        this?  Is that what you're saying?

            5                  THE WITNESS:  Yes, your Honor.

            6                  THE COURT:  All right.

            7   BY MR. DANDAR:

            8        Q    And whose idea was it to destroy the records?

            9        A    As best as I can recall, it was Ms. Aznaran that

           10   said, "We have to destroy the folders."  Mr. Miscavige and

           11   everyone else agreed, so that's what was done.

           12        Q    And did the folders contain information that

           13   would hurt the Church of Scientology?

           14        A    Yes, it -- apparently, you know, that's what they

           15   felt.

           16        Q    Okay.

           17                  THE COURT:  That's what you felt too.

           18        Right?  You were there.

           19                  THE WITNESS:  Well, I had actually never

           20        seen Mr. Wollersheim's Preclear folders.  I had never

           21        audited him.

           22                  THE COURT:  But you didn't have a problem

           23        destroying it.

           24                  THE WITNESS:  Correct.

           25   BY MR. DANDAR:

                                  KANABAY COURT REPORTERS
 

                                                   Page 1070



            1        Q    And why didn't you have a problem destroying his

            2   records?

            3        A    Because, like every good Scientologist, you have

            4   to protect Scientology.  You have to protect the integrity

            5   of Scientology, its leadership, so that it would carry on

            6   because it's the greatest good.  Scientologists believe

            7   that Scientology is man's only answer to freedom.

            8        Q    Now, did you have to understand -- I'm sorry.

            9   Did I interrupt you?

           10        A    No, go ahead.

           11        Q    Did you understand at any point in time there was

           12   actually a court order to produce the entire PC folders of

           13   Mr. Wollersheim after the Church only produced a little bit

           14   of it?

           15                  MR. WEINBERG:  Objection, relevancy.  He's

           16        already -- and beyond the scope and all that --

           17                  THE COURT:  Sustained.

           18                  MR. WEINBERG:  -- other stuff.

           19                  THE COURT:  I'm sustaining it as beyond the

           20        scope.

           21                  MR. DANDAR:  Okay.  Well --

           22                  THE COURT:  I mean, frankly, I think we've

           23        already been over this.

           24                  MR. WEINBERG:  I do too.  That's why I

           25        objected.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1071



            1                  THE COURT:  I don't need to hear it several

            2        times.

            3   BY MR. DANDAR:

            4        Q    Well, Mr. Prince --

            5                  MR. WEINBERG:  Just so it's clear, our

            6        position is no PC folders were destroyed.

            7                  THE COURT:  I understand that.  I understand

            8        that too.

            9                  MR. WEINBERG:  All right.

           10   BY MR. DANDAR:

           11        Q    Did you understand that Mr. Wollersheim was --

           12   did allege that his PC folders were destroyed?

           13                  THE COURT:  I mean, what are we using --

           14                  MR. DANDAR:  I'm sorry.

           15   BY MR. DANDAR:

           16        Q    Let me ask you this question.  This is what I'm

           17   leading up to.  Mr. Prince, you said that you lied in your

           18   deposition in the Yanny vs. RTC case?

           19        A    Correct.

           20        Q    And you said you sat in this meeting where

           21   Mr. Miscavige and Mr. Cooley was at this meeting where a

           22   decision was made to destroy evidence of PC folders of

           23   Mr. Wollersheim?

           24        A    Correct.

           25        Q    And Mr. Aznaran is the one who actually went out

                                  KANABAY COURT REPORTERS
 

                                                   Page 1072



            1   to the paper mill and had it pulped?

            2        A    Correct.

            3        Q    And you did that because you were being loyal to

            4   the Church of Scientology?

            5        A    Correct.

            6                  MR. WEINBERG:  Objection.

            7                  THE COURT:  It's irrelevant.  Besides that,

            8        you're doing the testimony, and he's just saying yes.

            9        You need to ask him, Why did you do that?

           10                  MR. DANDAR:  And he's answered that.

           11                  THE COURT:  Yes, he has.

           12                  MR. DANDAR:  I want to skip -- the question

           13        is this.

           14   BY MR. DANDAR:

           15        Q    Mr. Prince, are you testifying for the Estate of

           16   Lisa McPherson or for me because you're loyal to the

           17   Estate, to the cause, or to Ken Dandar?

           18        A    No.  I'm testifying because it's the right thing

           19   to do.  It's very difficult to divine truth from -- I'm not

           20   trying to be vicious here, but it's very difficult to

           21   divine truth from Scientology.  People that are currently

           22   working on this case, they'll do anything they can to

           23   obstruct it.  They'll do anything they can to make sure --

           24                  MR. WEINBERG:  Objection, your Honor.

           25        A    -- that you can't find out the truth, and --

                                  KANABAY COURT REPORTERS
 

                                                   Page 1073



            1                  MR. WEINBERG:  He's going on and on and on.

            2        A    -- that's why I do that.

            3                  MR. WEINBERG:  Objection.  He was asked a

            4        leading question, Are you testifying because you were

            5        loyal to the --

            6                  THE COURT:  Actually, that wasn't leading

            7        because his answer was no.

            8                  MR. WEINBERG:  Well, I understand he said

            9        no.  Now he's going off into some big explanation.

           10                  THE COURT:  That's true.  If you want to ask

           11        him why are you testifying, then he can go on with his

           12        explanation.

           13   BY MR. DANDAR:

           14        Q    All right.  Why are you testifying in this

           15   hearing?

           16        A    To give justice and equity a chance -- a fair

           17   chance, to give all the information, to be able to give the

           18   full view of what's going on.  You know, I think it would

           19   be fair -- it's only fair that the whole picture is seen.

           20        Q    Mr. Prince, Mr. Minton and Stacy Brooks offered

           21   to continue to pay you $5,000 a month if you, quote, went

           22   down the road with them, close quote, and lied.  Isn't that

           23   true?

           24        A    I was promised a lot more than that.

           25        Q    What else were you promised to lie?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1074



            1        A    Retirement.

            2        Q    Did they go into any specific details?

            3        A    Financial security that will retire me for the

            4   rest of my life.

            5        Q    Any dollar figures discussed?

            6        A    A quarter of a million.  That's normally what

            7   Mr. Minton does when he gives people money.

            8        Q    Would a quarter of a million be enough?

            9        A    For me to retire for the rest of my life?  No.  I

           10   think I'm too young.  I would need more.  I would have to

           11   need more.

           12        Q    And is there any doubt in your mind that

           13   Mr. Minton and Ms. Brooks proposed this to you, to lie,

           14   that they knew that they wanted you to lie?

           15        A    Absolutely.  They knew they were lying.  They

           16   knew we all had to lie.  I mean, this is the only thing

           17   that they felt they could do to end it, disengage, to be

           18   done with it.  I mean, there's only so long you can wrestle

           19   with this demon.

           20        Q    Okay.

           21                  THE COURT:  And you don't need,

           22        Mr. Weinberg, when it's your turn, to get up and

           23        respond to that.  It's for money, he testified.  So I

           24        understand where both of you all are coming from here.

           25                  MR. WEINBERG:  I wasn't even going to make

                                  KANABAY COURT REPORTERS
 

                                                   Page 1075



            1        that point.

            2                  MR. DANDAR:  Well --

            3                  MR. WEINBERG:  One short point on that.

            4                  THE COURT:  Well, I saw you getting --

            5        fuming, and I was thinking, "Oh, dear."

            6                  MR. WEINBERG:  I was thinking about all the

            7        calls I have to return.

            8   BY MR. DANDAR:

            9        Q    Mr. Prince, when you and I met at the mall with

           10   Mr. Lirot, Mr. Haverty, and your fiance and you wrote out

           11   what's attached to your declaration, the handwritten note

           12   of April 14th, 2002, did I promise you money at all?

           13        A    None at all.  Money wasn't even discussed.

           14        Q    Did I pay you any money for writing that note?

           15        A    Absolutely not.

           16        Q    Did I promise to pay you money in the future if

           17   you wrote that note?

           18        A    No, you did not.

           19        Q    And isn't it true or -- what's the reason why I

           20   gave you a retainer of 4,000?

           21        A    Because my time is as valuable as anyone else's.

           22        Q    And you've been working on this -- this hearing

           23   preparing documents for me?

           24        A    Correct.

           25                  THE COURT:  You are back now as Mr. Dandar's

                                  KANABAY COURT REPORTERS
 

                                                   Page 1076



            1        consultant?  Is that it?

            2                  THE WITNESS:  Yes, your Honor.

            3                  THE COURT:  And expert?

            4                  THE WITNESS:  Yes, your Honor.

            5                  THE COURT:  Okay.

            6   BY MR. DANDAR:

            7        Q    I certainly haven't promised you any retirement

            8   money, have I?

            9        A    No, you have not.

           10                  MR. WEINBERG:  Your Honor, could we have a

           11        direct question instead of a leading question?

           12                  THE COURT:  Sustained.

           13   BY MR. DANDAR:

           14        Q    Now, Mr. Prince, when you were in LMT, did you

           15   know that the -- and if I asked this, I'll -- I don't

           16   remember asking this -- do you know whether or not the LMT

           17   received an anonymous $300,000 from Clambake?

           18                  MR. WEINBERG:  Your Honor, this is beyond

           19        the scope.  I didn't ask about it.

           20                  THE COURT:  It's beyond the scope.  The

           21        truth of the matter is, rather than recall, if this is

           22        an area that he thinks is important, I'm going to let

           23        him get into it.

           24                  MR. WEINBERG:  All right.

           25   BY MR. DANDAR:

                                  KANABAY COURT REPORTERS
 

                                                   Page 1077



            1        Q    Did you know that they got money from Clambake?

            2        A    The only -- you know, I found out about that --

            3                  MR. WEINBERG:  Your Honor, could he just

            4        answer the question?

            5                  THE WITNESS:  I'm trying to answer the

            6        question.

            7                  THE COURT:  Counsel, just let it go, would

            8        you?

            9                  MR. WEINBERG:  Okay.

           10                  THE COURT:  We need to get through this.

           11                  MR. WEINBERG:  All right.

           12        A    I found out about that whole deal with money

           13   coming from wherever it came from when Teresa Summers wrote

           14   her resignation letter to Stacy Brooks and I read it, where

           15   that was mentioned.

           16                  THE COURT:  So the truth -- you did not know

           17        about the 300,000, who it came from.  Mr. Minton never

           18        discussed this with you --

           19                  THE WITNESS:  Correct, correct.

           20                  THE COURT:  -- is that right?

           21                  THE WITNESS:  That's right.

           22   BY MR. DANDAR:

           23        Q    And did you ever -- while you were with LMT, did

           24   you ever hear the phrase "the fat man"?

           25        A    No.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1078



            1        Q    Okay.  Now, with this Key West fishing trip in

            2   the summer of 1999, as best I can phrase that, you had

            3   already been working for me for a few months, correct?

            4        A    Correct.

            5        Q    Now, the other people that showed up down in Key

            6   West, like Mr. Ford Greene, is that someone that you had

            7   ever seen me with before that fishing trip?

            8        A    No.

            9        Q    Did I go on the fishing trip?

           10        A    No, you did not.

           11        Q    Did I stay with you and Mr. Leipold and

           12   Mr. Greene and Mr. Haverty?

           13        A    No.

           14        Q    Oh, in that release that's in evidence,

           15   Defendant's Exhibit No. 231, that release language says

           16   that you are conceding or admitting that you were not

           17   harmed by the Church of Scientology.  Do you have any

           18   reason to know why that was put in your release?

           19        A    Yes.  That was put in the release for the same

           20   reason that Scientologists are asked to lie.  It's to

           21   protect Scientology at all costs.

           22        Q    Now, Mr. Weinberg asked you on cross if you had

           23   any personal knowledge of whether or not David Miscavige

           24   was physically at the Fort Harrison Hotel while Lisa

           25   McPherson was there in November and December of '95.  Do

                                  KANABAY COURT REPORTERS
 

                                                   Page 1079



            1   you remember that?

            2        A    Yes.

            3        Q    Mr. Prince, would it matter where David Miscavige

            4   was physically located as to whether or not he would have

            5   knowledge and was personally involved with the care and

            6   treatment of Lisa McPherson?

            7        A    In my opinion, no.

            8        Q    Why not?

            9        A    Well, with the state of technology today, it

           10   makes no difference whatsoever.  But also, based on past

           11   experience that I have had with Mr. Miscavige during the

           12   Wollersheim case, we were really just a short distance

           13   away, and while the hearings were going on, people were

           14   calling and reporting all the time.  There's no problem of

           15   getting an on-the-ground report immediately in any place in

           16   Scientology for Mr. Miscavige.

           17                  THE COURT:  It is your opinion -- I'm sure

           18        you've probably testified to this, but I can't

           19        remember.  I've heard from several people.  It is your

           20        opinion that Mr. Miscavige was kept advised at all

           21        times of Lisa McPherson and her situation.

           22                  THE WITNESS:  Your Honor, it is my opinion

           23        that once the situation where she got out of the car

           24        and was admitted to the hospital and it became a

           25        matter for Office of Special Affairs' concern, then he

                                  KANABAY COURT REPORTERS
 

                                                   Page 1080



            1        was -- he knew about it.

            2                  THE COURT:  Was it your opinion while she

            3        was admittedly PTS-III, undergoing introspection

            4        rundown, he would be kept advised of this and the

            5        progress?

            6                  THE WITNESS:  Yes, your Honor.

            7                  THE COURT:  Or lack of progress?

            8                  THE WITNESS:  Yes, your Honor.

            9   BY MR. DANDAR:

           10        Q    Now, Mr. Weinberg asked you to --

           11                  THE COURT:  And that opinion comes from your

           12        having been around him when he was head of RTC?

           13                  THE WITNESS:  Yes, your Honor.

           14                  THE COURT:  Or ASI?

           15                  THE WITNESS:  Both.

           16                  THE COURT:  Okay.

           17                  THE WITNESS:  Yes, your Honor.

           18                  THE COURT:  When Mr. Hubbard was alive and

           19        was the head ecclesiastical leader of the Church,

           20        would he have been kept advised of PTS Type III

           21        introspection rundown?

           22                  THE WITNESS:  He would have taken it over

           23        and dealt with it himself.

           24                  THE COURT:  My question is, Would he have

           25        been kept advised?

                                  KANABAY COURT REPORTERS
 

                                                   Page 1081



            1                  THE WITNESS:  Yes, your Honor.

            2                  THE COURT:  Wherever it was being conducted?

            3                  THE WITNESS:  Well, in all honesty, your

            4        Honor, I have to answer this and say that towards the

            5        end of Mr. Hubbard's life --

            6                  THE COURT:  Forget when folks say he was

            7        mad.  I understood that.

            8                  THE WITNESS:  Oh, okay.

            9                  THE COURT:  When he was in charge of the

           10        Church and head ecclesiastical leader, would he have

           11        been kept advised of that type of situation, with

           12        either a public or staff member of Scientology?

           13                  THE WITNESS:  Absolutely, your Honor.

           14                  THE COURT:  Is there any question in your

           15        mind whatsoever about that?

           16                  THE WITNESS:  None whatsoever.  He would

           17        have taken it over and did it himself.

           18   BY MR. DANDAR:

           19        Q    Now, Mr. Weinberg asked you to admit that there's

           20   no written policy in the Church of Scientology to go out

           21   and kill somebody, and you said that's true.  Do you recall

           22   that?

           23                  THE COURT:  I'm sorry, what's that?

           24   BY MR. DANDAR:

           25        Q    There's no written policy in the Church of

                                  KANABAY COURT REPORTERS
 

                                                   Page 1082



            1   Scientology to go and kill somebody.

            2        A    Well, there's one thing that came into evidence

            3   here.  It was the SP declare of -- I think I read down the

            4   list.  It was maybe eight people.  And in that --

            5                  THE COURT:  I'm sorry, what came into

            6        evidence?  The, what, SP?

            7                  THE WITNESS:  Yes, your Honor.  It was an SP

            8        declare.  It was a single sheet of a paper by L. Ron

            9        Hubbard declaring -- I think it was eight people

           10        suppressive persons and declared them fair game.  And

           11        then on one of the lines, L. Ron Hubbard gave

           12        instructions whereby he said any Sea Org member

           13        encountering any of the above persons is to use

           14        process R245 on them.  Process R245 --

           15                  MR. WEINBERG:  Your Honor --

           16                  THE WITNESS:  -- is a process --

           17                  MR. WEINBERG:  -- your Honor, objection.

           18        This was the document that was not admitted that

           19        Mr. Prince is now testifying about.  It was the phony

           20        document.

           21                  MR. DANDAR:  Phony --

           22                  MR. WEINBERG:  And this is way beyond the

           23        scope of my cross-examination.

           24                  THE COURT:  It's not beyond the scope

           25        because you made it clear there's absolutely no basis

                                  KANABAY COURT REPORTERS
 

                                                   Page 1083



            1        upon which to make the assertions that he has.  Now,

            2        if he has a basis, he would be permitted to testify.

            3        So it's not beyond the scope.

            4                  MR. WEINBERG:  This document that he's

            5        talking about is not in evidence.

            6                  THE COURT:  All right.  If that's true, then

            7        he can't refer to that document.

            8                  MR. DANDAR:  Okay.  I thought it was.

            9                  THE COURT:  Well, go find it.  Let's take a

           10        break and we'll see whether it is or not.  I couldn't

           11        begin to tell you what documents are in and what ones

           12        aren't.  But the clerk would have them, whether they

           13        were admitted or not.

           14                  MR. DANDAR:  Right.  Before we take a break,

           15        let me ask one more question.

           16                  THE COURT:  All right.

           17   BY MR. DANDAR:

           18        Q    In your tenure at the Church of Scientology, did

           19   you ever see anything in writing called R245?

           20        A    Yes.  It actually comes from a tape lecture.  And

           21   I forget which tape lecture it was specifically, but it

           22   talks about R245 being an effective exteriorization

           23   process, whereby the person takes a .45, puts it to his

           24   head -- a loaded .45, puts it to his head, pulls the

           25   trigger, and blows their brains out.  That releases the

                                  KANABAY COURT REPORTERS
 

                                                   Page 1084



            1   spirit from the body.

            2        Q    Is that a lecture by -- who?

            3        A    L. Ron Hubbard.

            4                  MR. DANDAR:  All right.  Let's take our

            5        break and let me find that.

            6                  THE COURT:  All right.  It's 25 after.

            7        We'll take 15 minutes.

            8                  (A break was taken at 10:25 a.m. until

            9                  approximately 10:55 a.m.)

           10                  THE COURT:  All right.  Where is Mr. Prince?

           11                  THE WITNESS:  I'm here, your Honor.

           12                  THE COURT:  You may resume the stand.

           13                  You all may be seated.

           14                  And, Mr. Dandar, did you find whether that

           15        was in or out of evidence?

           16                  MR. DANDAR:  It was out.  And for the

           17        clerk's benefit, I still have it, so make sure I give

           18        it back to her.  Somewhere.  It's on my table.

           19                  Here it is.  I have this tendency of walking

           20        away with exhibits.

           21                  THE COURT:  Are we having a light show?

           22                  MR. DANDAR:  They had a TV or a signal that

           23        keeps coming in.  We started to watch a soap opera

           24        there for a minute.

           25                  THE COURT:  I see.

                                  KANABAY COURT REPORTERS
 

                                                   Page 1085



            1                  MR. DANDAR:  But I have a videotape of a

            2        Boston picket.  And the only reason I want to put this

            3        on is because Mr. Weinberg used Mr. Prince picketing

            4        in his cross-examination.  But this shows what

            5        happened before the clip-it, the snippet, that

            6        Mr. Weinberg showed.

            7                  MR. WEINBERG:  Just so it's clear, this is a

            8        different day than the picket that I showed.  But he

            9        can play it.

           10                  THE COURT:  All right.

           11                  MR. WEINBERG:  Ken (motioning to move).

           12                  THE WITNESS:  It has no audio.

           13                  MR. DANDAR:  Let's stop it.  Because I did

           14        that too.