[3][4] James T. Richardson writes in the 2004 book Regulating Religion that "Ma Sheela is alleged to have stalled Mrs. Byron, using the reasoning that the group was soon to relocate in Oregon, and that the money would be returned after that.

[3][4] Byron filed a lawsuit against Rajneesh Foundation International claiming she had been defrauded by the organization, and the suit proceeded to a six-member jury trial in 1985 in federal court Portland, Oregon.

[1][5][6] Byron's claim included $309,990 she stated she had given as a loan to the Rajneesh Foundation, in addition to $80,000 she had deposited in a Rajneeshee bank, and $1.5 million in punitive damages.

[12] Ma Anand Sheela, the spokesman for Bhagwan Shree Rajneesh at the time, stated that the jury verdict shows "Rajneeshees can't get a fair trial in Oregon".

[3] Sheela characterized the lawsuit as part of the government's plan to "destroy the Rajneeshees" by utilizing "poison" of former followers, and said that the organization would appeal the verdict.

[12] Rajneesh spokeswoman Ma Prem Isabel stated: "I think Oregonians basically are trying to bring their bigotry into the court, and until now they are doing pretty good.

[8] Judge Owen Panner ruled that the judgment and collateral for paying it would remain, due to the uncertain financial circumstances of the Rajneesh organization.

[13] Richardson notes that "in every disputed point of fact in the case the jury sided with the plaintiff, Mrs. Byron, and they chose as well to punish by awarding punitive damages".

[2] After the jury decision, Ma Anand Sheela gathered an inner circle of at least three or four women followers of Bhagwan Shree Rajneesh at Rajneeshpuram and assembled a hit list of enemies of the organization.

[15] This list included journalist for the Portland paper The Oregonian, Leslie Zaitz, United States Attorney Charles Turner, Oregon Attorney General David Frohnmayer, Rajneesh's former secretary Laxmi Thakarsi Kuruwa (Ma Yoga Laxmi), and Helen Byron along with her daughter Barbara who had testified on her behalf at trial.

[1][15][16][17] Frohnmayer was originally intended to be the first murder victim, but Turner was made the primary target because the followers believed there were soon to be federal indictments against the organization.