The horrific allegations came as a result of Albert Einstein-led stealth experiments aimed at giving allied battleships the ability to disappear.
The bizarre research, which has become known as the Philadelphia Experiment, has led to eye-witnesses claiming a US Navy destroyer escort called USS Eldridge even matter-transported from one naval yard to another.
But the whole project was then considered so volatile it was shelved and classified at a level beyond Top Secret.
The Philadelphia Experiment – sometimes called Project Rainbow – has been a major conspiracy theory for decades but gathers new advocates every year as actual cloaking technology advances to fulfill the Second World War claims.
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According to supporters of the claims Einstein, who worked for the US Navy during the war, was drafted in during 1942 amid catastrophic allied losses of ships to German U-Boat submarines.
Author and researcher Robert Goerman said: “The Navy used a variation of Albert Einstein’s Unified Field Theory and they used it to bend light to render the ship invisible as it was encased in this electro-magnetic fog.”
Alfred Bielek, who claims to have been a member of the scientific team, said: “Powerful electro-magnetic fields were engineered around the Eldridge and its skeleton crew.”
The whole experiment was supposed to be hyper-secret but it was seen by a merchant seaman called Carl Meredith Allen (aka Carles Allende) on a nearby ship Liberty.
Goerman said: “He says he saw the ship enveloped in a green fiery fog.
“He says he could insert his arm into the terrific flow of this energy then the ship disappeared.”
The Eldridge then teleported and appeared in a naval dockyard in Norfolk Virginia befer re-appearing back in Philadelphia.
But the Star-Trek style teleportation had awful consequences as sailors became fused to the vessel at a molecular level.
Goerman added: “The crew were molecularly attached to the ship, bonded to the metal.
“As it was teleported men were driven insane, men caught fire and terrible, horrific things happened to the crew.”
Bielek, who wrote the Philadelphia Experiment and other Conspiracies, said: “The first thing they found was two sailors buried in the steel deck, dying or near dead.
“Two more were found standing upright in the bulkhead. Other sailors were missing, or vaporised.”
According to supporters of the reports the Navy quickly shelved the experiment, and forced all those involved to sign an oath of secrecy before assigning the papers a level beyond Top Secret – never to be declassified.
The Philadelphia Experiment was made into a hit film in 1984.
Sceptics say the legend may have arisen from the fact in the early 1940s, the Navy did conduct experiments to make naval vessels “invisible” in the Philadelphia Naval Shipyards.
Scientists ran an electric current through hundreds of meters of electrical cable around the hull of a ship to see if they could make the ships “invisible” to underwater and surface mines.
Germany used magnetic limpet mines capable of attaching themselves to the metal hull of ships as they came near.
The ring of electric cable would make the ships invisible to the magnetic properties of the mines – and indeed a similar technique was employed by the British navy.