[TLFisher]

For if, after they have escaped the defilements of the world by the knowledge of the Lord and Savior Jesus Christ, they are again entangled in them and are overcome, the last state has become worse for them than the first. For it would be better for them not to have known the way of righteousness, than having known it, to turn away from the holy commandment handed on to them. It has happened to them according to the true proverb, “A dog returns to its own vomit,” and, “A sow, after washing, returns to wallowing in the mire.”
2 Peter 2:20-22

Directed more towards the blending brothers. They knew the way of righteousness, but turned away. My point of reference is from Speaking the Truth in Love.
Benson Phillips and Ray Graver knew of the office immorality yet considered it to be a local matter.

Upon coming together we attempted amid protests to mention the matter of the misconduct in the LSM office. They steadfastly refused to hear about it, but we proceeded to speak. Ray Graver then quickly rose and exited the room. Benson (in whose home we were meeting) also rose to register his displeasure. We felt that they had knowledge relevant to the matter and wanted to confer with them about it. Benson admitted that the same sister from the LSM office (mentioned previously) had come to him in Taipei to disclose a related event, but he strongly protested our bringing this matter before them. They argued that this affair was exclusively under the jurisdiction of the church in Anaheim, and they had no business being involved. We felt, as we mentioned earlier, that it was more than local, and that since that they were leaders in the LSM operation, they could be consulted. Some time later, however, I apologized to Benson and Ray for this, feeling that if they chose not to hear, we should not have forced the issue. Page 24

On page 12 the author refers to "misconduct and irregeularities" Dan Towle had heard of.

"Dan had also heard some things concerning misconduct and irregularities related to the ministry office that greatly upset him, and he had serious concerns as we did for the Lord’s recovery. At one point he told me that he considered to resign from the work and to leave. We confirmed his feeling that the situation was indeed serious.
Godfred, Dan, and I came together a few times, joined also by Ken Unger on a couple of occasions to fellowship about the situation and what should be done. Ken Unger, who was an elder in Huntington Beach, had himself also become very concerned. We conferred about our burden to speak with Brother Lee, mentioning a number of our concerns that involved aberrations of truth and practice. When we touched the matter of the full-time training in Taipei, Dan responded by saying that if you touch the FTTT, you touch Brother Lee himself, and according to his observation of Brother Lee’s practice, Brother Lee will consider you if you become in his eyes a problem, and then he will proceed to carry out his burden without you. Godfred confirmed this by saying that he had the same realization, that Brother Lee considers anyone who criticizes him a troublemaker and will consider whether or not that one is expendable. This was indeed a most serious consideration concerning Brother Lee. But we did not care to maintain any position or standing for ourselves. We felt that for the Lord’s sake and for the sake of all the brothers and sisters, we must open our hearts to Brother Lee, no matter what it cost us. "