JOSEPH W. TKACH
PASTOR GENERAL

August 1987

Dear Friend:

Thank you for your inquiry concerning the outcome of the lawsuit begun in January 1979 against God's Church by the California attorney general.

While many sensational charges were circulated in court and in the media, no wrongdoing was proved on the part of the Church or its personnel. Thorough audits by Arthur Andersen & Co. revealed that Church finances are in order and record keeping is meticulous.

The attorney general DROPPED ALL CHARGES AND DISMISSED THE CASE on October 15, 1980.

In a related action, the California Court of Appeals issued a ruling. The language contained in the ruling was significant and served to COMPLETELY VINDICATE THE CHURCH.

"We are of the opinion that the underlying action and its attendant provisional remedy of receivership were from the inception constitutionally infirm and predestined to failure. It follows that the burden of the ill-conceived litigation, including the expenses of the receivership and ... fees for procuring that receivership should not be borne by the prevailing party -- the Church."

Thus, as the Church said all along, the action was unconstitutional from the beginning and should never have been started. We are grateful that God has given us victory and complete vindication.

PERSONAL CORRESPONDENCE DEPARTMENT