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Kenneth Grant wrote about Hubbard's confidence scam on Jack Parsons in his book The Magickal Revival. Hubbard was "Frater X."
THE MAGICAL REVIVAL
Kenneth Grant
SKOOB BOOKS PUBLISHING
LONDON
© Kenneth Grant 1972, 1991
© Skoob Publishing 1991

Acknowledgements

The author has at his disposal the entire body of Aleister Crowley's writings (published and unpublished), and wishes to thank Mr. John Symonds — Crowley's literary executor — for allowing complete freedom in the use of it.

[...]

John W. Parsons, head of the Pasadena Lodge of the O.T.O. between 1940 and 1945 observed that Kelley's life of crime, sparked off by the Angel's communication, resembled closely what occurred to himself while working with the same Aethyr (i.e. the 7th). Parsons invoked this Aethyr in 1945 with appropriate rituals backed up by the powerful sexual magick of the VIIIo OTO., which means that he added his own magnetic emanation to the materials used in the magical ceremony. Shortly afterwards, his scribe absconded with his wife and tricked him out of his money and possessions. Parsons, who was at the time working in an air-rocket factory, died disasterously when he dropped a phial of fulminate of mercury. His scribe1, however, is still at large, having grown wealthy and famous by a misuse of the secret knowledge which he had wormed out of Parsons. (p.107)

Jack Parsons had ceased sending money to Helen because he had lost all his possession to a confidence trickster who had wormed his way into the O.T.O. on the pretence of being interested in Magick. (p.161)

While Parsons was engaged in these matters a certain Frater X2 appeared on the scene, and such was his fascination that Parsons — who had gained admission to the highest grades of the O.T.O. — was persuaded to break his Oath of Secrecey and X came into possession of the secrets of the Order although he was not at any time properly initiated. These secrets comprise the psycho-sexual and magical techniques to which reference has already been made21.

Frater X then persuaded Parsons to form a tripartite Trust with Betty and himself. This Agreement was called "Allied Enterprises". Parsons put the lion's share of the money into it, Frater X contributing a merely nominal sum, and Betty, nothing at all. Parsons was then persuaded to sell the property which constituted the headquarters of the Agapé Lodge, and on the proceeds — plus the money invested in Allied Enterprises — Frater X and Betty absconded, leaving Parsons under the impression that they intended to buy a yacht which they would eventually sell to the advantage of all three.

The yacht was duly purchased, but instead of returning to California, Frater X and Betty sailed round the East Coast together, "living the life of Riley", as a member of the Order graphically expressed it.

21See, in particular, Chapter 2, supra.
[Metaphysical Bases of Sexual Magick] (pp.162-163)
1 Parson's scribe was L. Ron Hubbard
2 Frater X was obviously Hubbard.
 
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