Scientology leaders reportedly held drinking sessions, where Tom Cruise was mocked and secret videos of his private confessionals were viewed.
A former high-level member of the controversial religion, Marty Rathbun, claims church guru David Miscavige ordered Cruise to be secretly recorded while undergoing private counselling sessions.
"I audited a number of intensives of confessionals on Tom Cruise from July through November 2001," Mr Rathbun writes in his personal blog.
"By order of Miscavige many of those sessions were secretly recorded by a well-concealed video camera and voice recorder system built into the VIP auditing room at Celebrity Center International."
The transcripts of such sessions were then read aloud to a party of senior Scientologists, while they indulged in alcohol and laughed at the actor’s admissions.
"While sipping scotch whiskey at the end of the night, Miscavige would read Tom’s overts and withholds from my reports to others, joking about the content of Tom’s confessions," Mr Rathburn claims.
The nature of Tom Cruise's alleged confessions were not disclosed and his representatives are yet to comment on the allegations.