INDICTMENTS BY FORMER SGI AMERICAN LEADERS

Weekly Post, 10/14/94
By: Masao Okkotsu

Ikeda's house in Malibu, on the outskirts of L.A., has gilded bathrooms. Isn't that in violation of Federal Tax Laws?

"This is my home in America." - Mr. Daisaku Ikeda once made that comment about a building on the grounds of the Malibu Training Center, located in a high- class city on the outskirts of Los Angeles. However, it is the property of Soka Gakkai, which is recognized as a religious corporation in the States. If it is actually private property, it raises doubts about its legality. Continuing from the preceding issue, we report on location about the overseas activities of the enigmatic huge religious group.

Three Conditions for Religious Corporate Tax Exemption

SGI-USA (Soka Gakkai International-United States of America), Soka Gakkai's American religious corporation, owns vast real estate around Los Angeles. We reported about this fact in our previous issue, but since most of the property purchased is owned by a religious corporation, no fixed asset taxes are assessed.

"American religious corporations, the same as in Japan, receive preferential treatment from the standpoint of tax laws. But in Japan, if a group possesses the qualifications to be a religious corporation, then no taxes are assessed unconditionally. That's different from America, where, even if religious corporate status is granted, they are not given tax exempt privileges unless a tax exempt petition is submitted to the local and state tax authorities and an audit is passed. Three prerequisites for tax exemption are stipulated in Article 501 of the City Tax Code. The first is, political activities and political donations are forbidden. The second is, excessive for-profit enterprises are forbidden. And the third is, the privatization of the religious group's assets by the head or the leaders is forbidden. If these regulations are violated, tax exempt privileges are not given." (International Business Law Professor Ishimura of Asahi University)

I flew to Los Angeles and received from many former SGI-USA leaders detailed testimony concerning the reality of the Soka Gakkai's overseas assets and overseas activities, which up to now have remained largely unrevealed. According to their testimony, there are suspicions about whether the SGI-USA is in violation of two of the three conditions which must be met to receive tax exempt status.

Among those former leaders, former SGI-USA Chapter Chief, James Eagleton points out the privatization of the religious group. "At the Malibu Training Center, there's a house for Ikeda that we members are never allowed to enter. We are allowed to enter only the training center itself. The house is a private building which is used only when Ikeda comes to Los Angeles, and it's shrouded in a veil of secrecy."

Daisaku Ikeda, Soka Gakkai Honorary President, is also the SGI President, the head of the SGI wherever it exists around the world. The Malibu Training Center, which occasionally appears in Mr. Ikeda's collections of photos, was opened in 1972 by the SGI-USA (at the time it was known as NSA, Nichiren Shoshu of America). The area of the site is approximately 9800 tsubo. (Translator's note: A tsubo is approximately 36 square feet.) The city of Malibu is an extremely high-class city which abuts the Pacific Ocean and is approximately one hour's drive by car to the northwest from the center of Los Angeles. It is well known that many stars, such as actor Kevin Costner and tennis' John McEnroe, live there.

When looking at the Malibu Training Center from the air, two buildings and a Western style park can be clearly discerned on the extensive site, which includes a private beach. The huge building nestled against a mountain is the training center, and the building nearer the ocean is the aforementioned "Ikeda house."

According to registration documents, the training center building was built in 1973. Its floor space is approximately 150 tsubo. The Ikeda house is older, having been built in 1964. Its floor space is approximately 60 tsubo. Former Los Angeles SGI-USA leaders who are familiar with the Ikeda house all testify that it is luxurious.

"When Ikeda came to America in 1990, I was ordered by a top Women's Division leader to clean the bathroom in the Ikeda house. I have entered the Ikeda house just that once, but I clearly remember that the bathroom was luxurious. The door and faucets did not have knobs. They had the expensive handle types. Furthermore, they were all gold plated. Also, a thick carpet covered the bathroom floor. I cleaned it completely, but the Women's Division leader who was supervising told me repeatedly, 'Ikeda Sensei's going to see it! Get it cleaner, get it cleaner.'I even shoved my hand down the pipes." (a former SGI-USA Young Men's Division leader who left the Gakkai in 1992) He says that it made him feel somewhat ill at ease that the bathroom in the Ikeda house was gilded.

A former leader, who is Japanese and who currently resides in Los Angeles, says, "I recently spoke with the caretaker, who said he's been a caretaker there for the past seven years, but that last year was the first time he had ever cleaned the Ikeda house. Originally, the wives of the top leaders, including the wife of the SGI-USA General Director, were responsible for it, but last year the wife of the man who became General Director was busy, so she requested a substitute. He said that there are no words to describe how luxurious it is."

Local Leaders In Particular Are Not Allowed Near It

Even the caretaker first entered the Ikeda house after seven years on the job. I was able to meet with the person who carried out the renovations. His name is Mr. Steve Gore (46).

Mr. Gore joined NSA in 1965 at the age of sixteen. After graduating from UCLA, he became an employee of the NSA Headquarters. He is a former top leader who, at the age of twenty-one, became America's youngest Los Angeles Territory General Chapter Chief and who also worked on the planning staff of the Young Men's Division. He left the organization in 1974.

"The Malibu Training Center is a facility which used to be the villa of a famous playwright. NSA bought it in 1972 for $109,000. They built the training center building from scratch, and renovated the already existing building to be Ikeda's villa. An opening ceremony was conducted on April 19, 1972. When I was renovating the Ikeda house, I was instructed by Vice-General Director Mike Kikumura, 'Spare no expense. Take special care to use the best materials.'I remember purchasing the inside furnishings from Schneider Diamond Co., which handles only very top quality materials."

According to Mr. Gore's recollections, the house consisted of four spacious rooms: a living room, a dining room, a bedroom and a Gohonzon room, as well as a bath, a bathroom and a kitchen. (Translator's note: In Japan, the room containing the toilet is separate from the room containing the bath. Apparently, the Ikeda house in Malibu follows this pattern.) He says that, then, when they renovated it, they built a new open air hot tub lined with rocks, which Mr. Ikeda loved, and a sauna. "The interior had been built in the style of a cabin, with thick logs showing. But we renovated it in a semi-European style using plenty of top quality Japanese cypress."

Mr. Gore says that at the time they paid particular attention to soundproofing. "Ikeda hates noise, so we laid lumber over the wooden floors, spread sound proofing material over it, and then laid a double layer of three inch thick boards. We then put Japanese cypress on top of that, giving the floor four layers of wood. We put Japanese cypres