Oh I don't think they killed her, they are smart enough to know that if enough pressure is applied they'll have to show proof that she's alive.
That whole episode was creepy in a lot of ways, from Hubbard's relationship with the young girls on the Apollo. To people staying with the Sea Org because they believe that L Ron will come back and fix things.
I don't know how over the top Leah is, I would believe that there might be a bit of exaggeration, however that organization is seriously more then crazy. David Miscaviges niece wrote an excellent book on leaving the church, I'd recommend reading it.
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My name is Ozymandias, King of Kings;
Look on my Works, ye Mighty, and despair!
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