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1 Ryan A. Hamilton CA BAR NO. 291349 2 HAMILTON LAW 5125 S. Durango Dr., Ste. C 3 Las Vegas, NV 89113 (702) 818-1818 4 (702) 974-1139 (fax) [email protected] 5 Attorney for the plaintiffs 6
7 UNITED STATES DISTRICT COURT
8 SOUTHERN DISTRICT OF CALIFORNIA
9 CHRISTOPHER KELLER, an New Hampshire citizen; CURTIS KELLER, a New Hampshire 10 citizen; and LINDA KELLER, a New Hampshire Case No. '14CV2168 BAS RBB citizen 11
Plaintiffs, 12 COMPLAINT AND JURY DEMAND vs. 13
NARCONON FRESH START d/b/a 14 SUNSHINE SUMMIT LODGE; 15 ASSOCIATION FOR BETTER LIVING AND EDUCATION INTERNATIONAL; 16 NARCONON INTERNATIONAL; NARCONON WESTERN UNITED STATES 17 and DOES 1-100, ROE Corporations I – X, inclusive, 18 Defendants. 19
20
21 Plaintiffs Christopher Keller, Curtis Keller, and Linda Keller (“Plaintiffs”), by and through
22 counsel, Ryan Hamilton of Hamilton Law, LLC, alleges the following:
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24 ///
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1 I.
2 PARTIES
3 1. Plaintiffs Christopher Keller, Curtis Keller, and Linda Keller are residents of, and for the
4 purposes of determining diversity jurisdiction are citizens of New Hampshire.
5 2. Defendant Narconon Fresh Start (hereafter “Fresh Start”), is, and at all times relevant to
6 this Complaint was, a corporation incorporated under the laws of, and with its principal place of
7 business in, the State of California. Defendant has been at all relevant times transacting business in
8 Warner Springs, San Diego County, California. Fresh Start may be served with process through its
9 registered agent, Mark Kirwin, 4480 Market St., Ste. 804, Ventura, CA 93003.
10 3. Defendant Narconon International (“NI”) is a California corporation with its headquarters
11 in Los Angeles, California.
12 4. NI is the principal/licensor of Defendant Narconon Fresh Start. NI exercises control over
13 the time, manner, and method of Fresh Start’s operations.
14 5. NI was doing business in the State of California by and through its agent and
15 subsidiary/licensee Defendant Narconon Fresh Start. NI may be served with process through its
16 registered agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.
17 6. Fresh Start and NI are subsidiaries of the Association for Better Living and Education
18 (“ABLE”). ABLE oversees the drug rehabilitation, education, and criminal justice activities of the
19 Church of Scientology including, but not limited to, Fresh Start and NI.
20 7. Defendant ABLE is a corporation registered in the State of California with its headquarters
21 in Los Angeles, California.
22 8. ABLE controls the time, manner, and method of NI’s and Fresh Start’s businesses by
23 actively managing their daily operations, including conducting inspections of Narconon centers
24 and creating, licensing, and approving their marketing materials.
25
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1 9. ABLE transacts business in the State of California by and through its agents, Narconon
2 International and Narconon Fresh Start. ABLE may be served with process through its registered
3 agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.
4 10. Defendant Western (“Western”) is a corporation registered in the State of California with
5 its headquarters in Los Angeles, California.
6 11. Western controls the time, manner, and method of Fresh Start’s business by actively
7 managing its daily operations, and creating and approving their marketing materials.
8 12. Western transacts business in the state of California and may be served with process
9 through its registered agent, Luria K. Dion, 249 N. Brand Blvd #384, Glendale, CA 91203.
10 13. Plaintiff is unaware of the true names and capacities, whether individual, corporate,
11 associate, or otherwise, of Defendant DOES 1-100, inclusive, and, therefore, sues these
12 Defendants by fictitious names. Plaintiff will seek leave of this Court to amend this Complaint
13 when the identities of these Defendants are ascertained.
14 II.
15 JURISDICTION AND VENUE
16 14. This Court has subject jurisdiction pursuant to 28 U.S.C. § 1332. The amount in
17 controversy exceeds $75,000.00, and there is complete diversity between the parties.
18 15. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(a) because a substantial portion
19 of the events and omissions giving rise to this lawsuit occurred in this District, and the Court has
20 personal jurisdiction over each of the parties as alleged throughout this Complaint.
21 III.
22 FACTUAL ALLEGATIONS
23 16. On or about April 28, 2014, Plaintiff Linda Keller was searching the Internet for a drug
24 rehabilitation facility for her son, Plaintiff Christopher Keller.
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1 17. Linda found several different websites that advertised substance dependency rehabilitation
2 services. These websites appeared to be unrelated to each other.
3 18. Linda called the numbers displayed on the websites. Each number she called referred her
4 to Fresh Start, whose representatives eventually directed Linda to a representative named Josh
5 Penn.
6 19. Josh Penn represented that Fresh Start’s program the program had been scientifically and
7 medically proven to be effective.
8 20. Penn further falsely represented to Linda: (1) that while undergoing detox at Fresh Start,
9 Christopher would be under the care of a doctor or nurse at all times; (2) that Fresh Start would
10 provide Christopher with extensive drug and addiction counseling; (3) that Fresh Start staff are
11 properly trained to care for and treat persons with addiction;
12 21. Penn directed Plaintiffs to Fresh Start’s website for its facility in Warner Springs,
13 California, www.sunshinesummitlodge.com. This website and Penn represented to Linda that the
14 Fresh Start’s treatment program has a success rate between 70% and 80%.
15 22. Based on these representations, Linda and Curtis agreed to place her son Christopher in the
16 Narconon program at its facility in Warner Springs, California. Linda executed the contract
17 attached hereto as Exhibit A. The contract describes the founding of the Narconon program as
18 follows: The Narconon Program was founded in 1966 by William Benitez, 19 where it was first used in the Arizona State Prison, after being inspired by the practical betterment philosophy of author and 20 humanitarian L. Ron Hubbard in the book, The Fundamentals of Thought. After reforming himself through the use of this new and 21 innovative rehabilitation technology and establishing the Narconon program, Mr. Benitez found a new purpose in life by helping people 22 not only rehabilitate themselves from drug addiction, but more importantly, restore their personal values, integrity, and 23 responsibility. The Narconon Program is secular (NON- RELIGIOUS) in nature and the program does not include 24 participation in any religious studies of any kind. 25
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1 23. The actual title of the L. Ron Hubbard Book the contract references is Scientology: The
2 Fundamentals of Thought – The Basic Book of Theory and Practice of Scientology for Beginners.
3 24. The Church of Scientology’s website indicates that this book was “designated by L. Ron
4 Hubbard as the Book One of Scientology.” (emphasis in original) See
5 http://www.scientology.org/books/catalog/scientology-the-fundamentals-of-thought-
6 paperback.html
7 25. Penn explained that fee for the program was $33,000.00 and needed to be paid in full
8 upfront. Linda and Curtis paid additional fees to Matt Kinzer, an interventionist whom Fresh Start
9 recommended.
10 26. Penn stressed that it was urgent that Christopher get into the program as quickly as
11 possible. Penn said that if Christopher did not get help immediately, his life would be in grave
12 danger. Furthermore, Linda and Curtis needed to act fast, Penn claimed, because there were very
13 limited spots left at Fresh Start. Despite this claim, there were numerous empty beds when
14 Christopher was admitted into the Fresh Start facility.
15 27. When Christopher entered the facility and started his detox, there were no doctors or
16 nurses supervising his detox.
17 28. After completing detox, Christopher began the Narconon treatment program. Christopher
18 shared a small dirty room with two other people.
19 29. Christopher witnessed the presence of alcohol and illegal drugs on the premises.
20 30. Males and females on the premises were having sexual relations and interactions while
21 Christopher was at the facility.
22 31. Fresh Start uses the Narconon Treatment program.
23 32. The Narconon Treatment Program consists of two components: (1) course materials
24 consisting of eight books by L. Ron Hubbard; and (2) a sauna and vitamin program known as the
25 “New Life Detoxification Program.”
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1 33. In the Narconon program each patient receives the exact same written materials regardless
2 of the specific circumstances surrounding the patient’s addiction.
3 34. The Narconon written materials consist of eight books based on the works of L. Ron
4 Hubbard, the founder of the Scientology religion. These eight books contain almost no
5 information about drugs, substance abuse, or its treatment.
6 35. In place of actual addiction treatment, Fresh Start had Christopher study Scientology.
7 36. The eight Narconon books contain only Scientology doctrines and teachings. Such
8 doctrines include, without limitation, the Eight Dynamics of Existence, the Conditions of
9 Existence, the Suppressive Person and Potential Trouble Source doctrines, the Tone Scale, the
10 Affinity Reality Communication triangle, and the Cycle-of-Action.
11 37. Almost all of the material in the Narconon books has been copied directly out of
12 Scientology scriptures.
13 38. Fresh Start had Christopher perform drills known as “Training Routines” or TRs. These
14 TRs come straight from Scientology scripture and have no apparent connection to the treatment of
15 substance abuse.
16 39. For example, in TR3, Fresh Start had Christopher sit with another patient and repeatedly
17 ask the other patient “Do fish swim?” for hours on end.
18 40. To gauge Christopher’s progress in the program, Fresh Start administered Scientology’s
19 personality or stress test known as the “Oxford Capacity Analysis.” This “analysis” contains 200
20 questions that a patient must answer “yes,” “no,” or “maybe.”
21 41. A typical question on the Oxford Capacity Analysis is question 3: “Do you browse through
22 railway timetables, directories, or dictionaries just for pleasure?”
23 42. Christopher, like all patients at Fresh Start, was required to undergo the sauna program.
24 Narconon calls this program the “New Life Detoxification” program.
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1 43. The “New Life Detoxification” program is identical to the Scientology ritual known as
2 “Purification Rundown,” or the “Purif.” The Purification Rundown is a required component of
3 Scientology training and is part of Scientology’s “Bridge to Total Freedom.”
4 44. Fresh Start’s rationale for the sauna program is that residue of many different types of drug
5 remain the body’s fatty tissue long after use. The drug residue is released from the fatty tissue
6 from time-to-time into the bloodstream causing the individual to crave the drug, and, ultimately,
7 relapse. Fresh Start claims that the sauna program flushes these residual drug toxins out of the
8 addict’s system thereby reducing the cravings the residue causes.
9 45. Under the New Life Detoxification program, students first exercise vigorously before
10 entering the sauna each day. On entering the sauna, Narconon requires each student to ingest
11 increasing doses of Niacin and a “vitamin bomb.” Fresh Start increased Christopher’s dosages of
12 Niacin way beyond the recommended daily allowance.
13 46. Fresh Start requires students to spend five hours per day for five weeks in a sauna at
14 temperatures between 160 and 180 degrees Fahrenheit.
15 47. There were no medical personnel overseeing Christopher while was undergoing the sauna
16 program.
17 48. Fresh Start’s claims about the benefits of its sauna program, i.e., Scientology’s Purification
18 Rundown, are false and do not withstand scientific scrutiny.
19 49. In a prior lawsuit, Dr. Louis A. Casal, an expert retained by Narconon International and
20 Narconon of Northern Georgia in a wrongful death suit filed against those entities, testified at a
21 deposition. Relevant portions of Dr. Casal’s deposition testimony are attached hereto as Exhibit
22 B. When asked under oath about the New Life Detoxification Program, he testified that there is no
23 scientific basis for the notion that sweating in a sauna detoxifies a person’s body or treats
24 addiction:
25
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1 Q. Have you looked at the Narconon literature on what Narconon contends the
2 benefits from the sauna are?
3 A. [Dr. Casal] Yes, I have.
4 Q. And the sauna program, what Narconon contends is that in – it in fact detoxifies
5 your body. True?
6 A. True.
7 Q. But there’s no scientific basis that you can point to support that contention, is there,
8 sir?
9 A. You’re correct.
10 Q. So when Narconon states that the sauna program detoxifies its students, you’re not
11 aware, as a medical doctor, of any scientific basis for that contention?
12 A. I agree.
13 Exhibit B, Deposition of Dr. Louis Casal, 136:21 – 137:9.
14 50. Narconon International claims a success rate of 76% for all Narconon centers, including
15 Narconon Fresh Start d/b/a Sunshine Summit Lodge. Narconon has published no studies or other
16 verifiable evidence to support their claimed success rates.
17 51. Narconon International, ABLE, and Western direct individual Narconon centers such as
18 Narconon Fresh Start d/b/a Sunshine Summit Lodge to advertise that their treatment programs
19 have a 76% success rate.
20 52. Narconon Fresh Start d/b/a Sunshine Summit Lodge does not have data supporting a 76%
21 success rate for patients at its facility.
22 53. Dr. Casal, the medical expert retained by Narconon International in another lawsuit,
23 testified at his deposition that he was not convinced Narconon’s claimed success rate was true:
24 Q. Okay. What are you relying on – well, let me ask you this; do you believe that 76
25 percent success ratio is accurate?
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1 A. [Dr. Casal]. Mr. Harris, I’ll be honest with you, that’s a big number.
2 Q. Yeah, it’s – it’s a real big number.
3 A. It’s a big number.
4 Q. And it’s completely inconsistent –
5 A. I – I hope it’s true, but, I mean, I would need some convincing.
6 …
7 Q. Okay. Do you have any idea where Narconon is getting the numbers that it’s using?
8 A. You know, in the interest of time – I just didn’t have enough time to delve deeper
9 into those studies, Mr. Harris. And I – I would be happy to, but, no, I don’t have a clear
10 understanding of where that 70 – 70-something number came from, no, sir.
11 Exhibit B, Deposition of Dr. Louis Casal, 124:21 – 125:5; 126:1 – 7.
12 54. Likewise, the Director of Legal Affairs for Narconon International, Claudia Arcabascio,
13 advised the Narconon Freedom Center in Michigan not to claim the high success rate in
14 responding to a Better Business Bureau complaint. Ms. Arcabascio advised Narconon Freedom
15 “do not say we have 70% success (we do not have scientific evidence of it).” See email from Ms.
16 Arcabascio, attached hereto as Exhibit C.
17 55. Defendants are well aware that there is no basis for the claimed success rate of the
18 Narconon program. Nevertheless, Fresh Start claimed a 76% success rate for the Narconon
19 program to Plaintiffs Linda and Curtis to induce them to send their son to Fresh Start for
20 treatment.
21 56. Narconon documents indicate that the Narconon program is used to recruit patients into the
22 Church of Scientology. For example, a Narconon titled the “Narconon Technical Line-Up”
23 provides a flow chart of a patient’s experience into and through the Narconon program. The
24 document shows that when a patient finishes the Narconon program, the patient is to be “route[d]
25 to the nearest Org for further services if the individual so desires.” “Org” is Scientology jargon for
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1 an individual church providing services for the Church of Scientology. A copy of the “Narconon
2 Technical Line-up” is attached hereto as Exhibit D.
3 57. Narconon considers its program to be the “Bridge to the Bridge.” That is, Narconon
4 considers its program to be an initial step into getting on Scientology’s “Bridge to Total
5 Freedom,” the key spiritual journey that practitioners of the Scientology religion undertake. See,
6 e.g., “Narconon News, 1974, Volume 6, Issue 3: Narconon Is The Bridge to The Bridge,” attached
7 hereto as Exhibit E. 58. Fresh Start displays tokens of gratitude it has received for introducing patients to 8 Scientology around its offices. At Fresh Start’s headquarters in Glendale, California, hangs a 9 plaque from the Church of Scientology that thanks Larry Trahant and “The Narconon Fresh Start 10 Team” for introducing patients to L. Ron Hubbard and “The Bridge.” The writing on the plaque 11 provides, in relevant part: 12 Larry and his dynamic team at Narconon Fresh Start are hereby warmly 13 thanked and highly commended for their dedication and hard work. They 14 give us tremendous back up in introducing LRH to the world and are saving lives on a daily basis. There are thousands of beings who have 15 taken their first steps on The Bridge, thanks to the compassion and efforts of this team. 16 A photo of this plaque is attached hereto as Exhibit F.
17 59. Scientology’s own marketing documents show that the Narconon program is part of 18 Scientology’s plan to “clear “civilization. (To “go clear” is the ultimate spiritual goal for a 19 Scientologist, achieved after one goes up the “Bridge to Total Freedom.”) The document attached 20 hereto as Exhibit G, shows a Church of Scientology, or an “Org” as it’s known, with an arrow 21 directed at the Narconon “Jumping Man” logo. The document reads: 22 The question is not how to clear an individual, it’s how to clear a 23 civilization … by making every one of our orgs a central organization responsible for every sector of Scientology activities across it’s [sic] entire 24 geographic zone.
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In other words, the Church of Scientology is supposed to direct Narconon to achieve Scientology’s 1 spiritual goal of “clearing” civilization. 2 60. Fresh Start is using the Narconon program to introduce Scientology and L. Ron Hubbard’s 3 “technology” to unwitting patients seeking drug rehabilitation. This is exactly as the Church of 4 Scientology directed as part of its “Social Coordination Strategy.” Scientology explicitly outlined 5 this strategy in an urgent Executive Directive from the Authorization, Verification, and Correction 6 Department of its Religious Technology Center. The Executive Directive outlining the “Social 7 Coordination Strategy” is attached hereto as Exhibit H (hereafter the “SOCO Directive”). 8 61. The SOCO Directive instructed all SOCO GROUPS, which includes Narconon, as follows: 9 YOU ARE THERE TO SELL LRH’s TECH TO THE SOCIETY AND 10 GET IT USED, AS THE TECH. You do this through a SMOOTH JOB 11 OF PROMTIONAL ORGANIZATION – FRONT GROUPS, CORPORATIONS, FIELD WORKERS, ETC. (emphases in original). 12 62. The SOCO Directive expressly directed using front groups to introduce L. Ron Hubbard’s 13 “technology,” i.e., Scientology to society. 14 63. Narconon is well aware that there is no support for Narconon’s claimed success rate, but 15 nonetheless advertised a 70% to 80% success rate to Linda and Curtis despite that awareness. 16 64. During Christopher’s time at Fresh Start, the facility was staffed with recent patients from 17 the Narconon program who were still at risk of relapse. 18 65. Despite Narconon’s representations that Christopher would receive counseling, at no point 19 did Narconon staff ever speak to Christopher about the specifics of his life or his drug use and its 20 causes. In fact, no one at Fresh Start ever spoke to Christopher about substance abuse at all. 21 66. Christopher received no education about substance abuse, its causes and effects, or 22 methods to deal with his addiction. Instead, Christopher received instruction only in Scientology. 23 \\\ 24 \\\ 25
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1 67. When Christopher contacted his family while he was at Narconon, staff members were
2 physically present in the room where Christopher made his phone calls and monitored what
3 Christopher was communicating to his family.
4 68. Christopher left the Narconon program early because, inter alia, he did not feel safe, and
5 Fresh Start staff were unfit to treat him.
6 RELATIONSHIP AMONG DEFENDANTS
7 69. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set 8 forth in the preceding paragraphs and further allege as follows: 9 70. Defendant Narconon Fresh Start has all appearances of being a corporate sham illusion and 10 mere instrumentality of Defendants NI, ABLE, and Western. 11 71. ABLE, NI and Western heavily influence Narconon Fresh Start and govern and control 12 nearly every aspect of Narconon Fresh Start’s business activities. 13 72. NI publishes operations manuals and require that individual Narconon centers such as 14 Narconon Fresh Start d/b/a Sunshine Summit Lodge abide by these manuals in their operations. 15 These operations manuals are called “Running An Effective Narconon Center” and “Opening A 16 Successful Narconon Center.” 17 73. These manuals show that NI, ABLE, and Western have the ultimate authority over 18 Narconon Fresh Start employees. Narconon Fresh Start cannot demote, transfer, or dismiss a 19 permanent staff member at Narconon Fresh Start without approval from the Senior Director of 20 Administration at NI. 21 74. NI, ABLE and Western have the ultimate authority over the hiring of staff members at 22 Narconon Fresh Start. If a Narconon Fresh Start staff member does not meet the qualifications of a 23 staff member, the staff member may petition the Senior Director of Administration at NI to remain 24 on staff. 25
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1 75. If a staff member at Narconon Fresh Start believes she has been given orders or denied
2 materials that make it hard or impossible for her to do her job, she may file a “Job Endangerment
3 Chit” with the Ethics Department at NI. NI and Western then investigate and work to resolve the
4 staff member’s issue.
5 76. The operations manuals require staff members at Narconon Fresh Start to report
6 misconduct and “nonoptimum conduct’ to the Quality Control Supervisor at NI. NI and Western
7 investigate misconduct at Narconon Fresh Start and may take disciplinary actions against its staff
8 members.
9 77. NI receives ten percent of the weekly gross income from Narconon Fresh Start.
10 78. NI requires Narconon Fresh Start to send it detailed weekly reports containing statistics of
11 more than 40 different metrics. NI and Western review these weekly reports and order changes at
12 Narconon Fresh Start based on increases or decreases in the statistics in the reports.
13 79. NI, Western, and ABLE require that Narconon Fresh Start receive approval on all
14 promotional materials before Fresh Start disseminates them. Further, Fresh Start must obtain
15 approval as to its Internet websites from NI, Western, and ABLE before the sites “go live.”
16 80. NI, Western and ABLE also assist in creating Narconon Fresh Start’s advertising
17 materials. NI, Western and ABLE dictate the contents of those advertising materials.
18 81. NI requires that Narconon Fresh Start maintain a “building account fund” in which weekly
19 monies from the gross income are used to purchase new premises and also as a cushion to salvage
20 the organization in dire circumstances. The “building fund” is under the control of NI.
21 82. Upon information and belief, Western receives a percentage of Fresh Start’s gross income.
22 83. NI, Western and ABLE conduct “tech inspections” at Narconon Fresh Start. These
23 inspections entail NI, Western, and ABLE monitoring and correcting the manner in which
24 Narconon Fresh Start delivers the Narconon treatment program to patients at Fresh Start. NI,
25
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1 Western, and ABLE instruct staff at Fresh Start as to the exact manner in which they are to
2 perform their services and deliver the Narconon treatment program.
3 84. NI and ABLE also publish all training materials for Narconon Fresh Start. This includes
4 seven different training materials on subjects ranging from the Narconon sauna program to
5 overseeing to delivering the Narconon treatment program.
6 85. NI, Western, and ABLE micro-manage individual Narconon centers such Fresh Start d/b/a
7 to such a large extent that they publish the exact materials authorized to be sold in an individual
8 Narconon center’s bookstore.
9 86. Further, the NI Director of Technology and Approval demands and ensures that there are
10 good photos of L. Ron Hubbard visible in every center and that materials are available to students
11 and staff as to L. Ron Hubbard’s contributions in the field of alcohol and drug rehabilitation.
12 87. NI, Western, and ABLE work with individual Narconon centers such as Fresh Start on
13 legal problems, including patient requests for refunds and complaints to the Better Business
14 Bureau. In addition, NI, Western, and ABLE work to combat negative publicity for Fresh Start.
15 88. NI, Western, and ABLE are intimately involved in the day-to-day operations of Narconon
16 Fresh Start. NI, Western, and ABLE have the final authority over all decisions at Narconon Fresh
17 Start relating to hiring and firing, delivery of services, finances, advertising, training, and general
18 operations.
19 89. NI, Western, and ABLE perpetrate this scheme to recruit for and promote the Scientology
20 religion under the guise of providing drug rehabilitation.
21 90. NI, Western, and ABLE all are principals served by their agent, Fresh Start.
22 FIRST CLAIM FOR RELIEF
23 BREACH OF CONTRACT
24 91. Plaintiff incorporates by reference, as if fully set forth herein, each and every allegation set
25 forth in the preceding paragraphs and further alleges as follows:
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1 92. On or about April 30, 2014, Defendants contracted with Linda and Curtis Keller to
2 provide, in exchange for consideration, secular, residential drug and alcohol treatment.
3 93. Defendants breached this contract by, inter alia: (i) failing to provide services constituting
4 drug and alcohol treatment; and (ii) providing Scientology in lieu of drug and alcohol treatment.
5 94. Defendants’ breaches have caused Plaintiff to suffer damages in excess of $75,000.00.
6 SECOND CLAIM FOR RELIEF
7 FRAUD
8 95. Plaintiff incorporates by reference, as if fully set forth herein, each and every allegation set
9 forth in the preceding paragraphs and further alleges as follows:
10 96. The following is a non-exhaustive list of false representations Defendants knowingly made
11 to the Plaintiffs: (i) that the Narconon Fresh Start program has a 70% to 80% success rate; (ii) that
12 the Narconon program is secular and does not involve the study or practice of any religion; (iii)
13 that Christopher would receive counseling related to substance abuse; (iv) that Narconon’s sauna
14 program, i.e, the Purification Rundown, is safe and has been scientifically proven as effective; (v)
15 and that Christopher would be under the supervision of doctors or nurses at all times during his
16 detox.
17 97. On or about April 28, 2013, Josh Penn, a Fresh Start employee, made these statements to
18 Linda Keller, to induce her to send her son Christopher to Fresh Start.
19 98. Defendants also made these statements on their website, www.sunshinesummitlodge.com,
20 and Penn directed Linda to the site. Staff made these same false representations to Christopher
21 throughout his stay at Narconon.
22 99. Had Linda known that any of the above representations Defendants made were false, she
23 would not have admitted her son to Fresh Start.
24 100. As a proximate result of Defendants’ fraudulent conduct, Plaintiffs have suffered mental
25 anguish, including intense paranoia, and pecuniary damages in excess of $75,000.00.
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1 THIRD CLAIM FOR RELIEF
2 NEGLIGENT MISREPRESENTATION
3 101. Plaintiff incorporates by reference, as if fully set forth herein, each and every allegation set
4 forth in the preceding paragraphs and further alleges as follows:
5 102. On or about April 28, 2013, Josh Penn, acting on behalf of all Defendants, represented to
6 Plaintiff Linda Keller: (i) that the Narconon Fresh Start program has a 70% to 80% success rate;
7 (ii) that the Narconon program is secular and does not involve the study or practice of any
8 religion; (iii) that Christopher would receive counseling related to substance abuse; (iv) that
9 Narconon’s sauna program, i.e, the Purification Rundown, is safe and has been scientifically
10 proven as effective; (v) and that Christopher would be under the supervision of doctors or nurses
11 at all during times during his detox.
12 103. Defendants made these representations of fact without using reasonable care.
13 104. Defendants knew that Linda and Curtis would rely on these representations of fact.
14 105. Defendants made these statements to guide Plaintiffs in their business transaction with
15 Defendants.
16 106. Plaintiffs relied on these false representations of fact to their detriment and, as a result,
17 Plaintiffs suffered damages in excess of $75,000.00.
18 FOURTH CLAIM FOR RELIEF
19 CLAIMS UNDER CALIFORNIA UNFAIR COMPETITION ACT,
20 Cal. Bus. & Prof. Code § 17200
21 107. Plaintiff incorporates by reference, as if fully set forth herein, each and every allegation set
22 forth in the preceding paragraphs and further alleges as follows:
23 108. Defendants, both on their website at www.sunshinesummitlodge.com, and through their
24 sales representative Josh Penn, advertised to Plaintiff the following false statements of fact: (i) that
25 the Fresh Start program has a 70% to 80% “success rate;” (ii) that Defendants’ sauna program, the
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1 New Life Detoxification program flushes residual drug toxins from a patient’s tissues and thereby
2 reduces or eliminates drug cravings; (iii) that Fresh Start or the Narconon treatment program has
3 the highest “success rate” in the drug and alcohol rehabilitation field; and (iv) that Fresh Start
4 provides “cognitive behavior modification therapy” when, in fact, the courses and education Fresh
5 Start offers is nothing more than entry-level Scientology.
6 109. NI, Western, and ABLE control and approve Fresh Start’s advertising materials and scripts
7 that salespersons such as Josh Penn use when speaking to prospective patients.
8 110. Salespersons such as Josh Penn conceal the Narconon treatment program’s connection to
9 L. Ron Hubbard and Scientology when speaking to prospective clients such as Plaintiffs.
10 111. Defendants’ marketing materials for Narconon Fresh Start d/b/a Sunshine Summit Lodge
11 do not disclose that all rehabilitation materials used at Fresh Start are based on the works of L.
12 Ron Hubbard, the founder of Scientology. Further, the marketing materials for the New Life
13 Detoxification Program do not disclose that it is based on the work of L. Ron Hubbard and is a
14 Scientology ritual known as the “Purification Rundown.”
15 112. Plaintiffs has been injured by relying on Defendants’ false advertisements. Members of the
16 public are likewise likely to be deceived by Defendants’ false and misleading advertising.
17 113. Defendants’ deceptive and unlawful business practices complained of herein continue to
18 this day. Defendants repeatedly have shown that they will continue engaging in these deceptive
19 and unlawful practices until they are judicially compelled to stop.
20 114. Accordingly, Plaintiffs are entitled to all relief available under Cal. Bus. & Prof. Code §
21 17200 et seq.
22 FIFTH CLAIM FOR RELIEF
23 DAMAGES FOR FEDERAL WIRETAP VIOLATIONS UNDER 18 U.S.C. § 2520
24 115. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
25 forth in the preceding paragraphs and further allege as follows:
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1 116. Defendants use scripts to route person from a website that purports to be a sites for a non-
2 profit referral service for persons seeking help finding an appropriate rehabilitation facility. This
3 website is www.drug-rehabs.org.
4 117. The website www.drug-rehabs.org is owned and operated by Narconon Fresh Start. A copy
5 of the script that Defendants use to route persons from this site to Narconon Fresh Start is attached
6 hereto as Exhibit I.
7 118. Using this script, a Fresh Start staff member poses as a drug and alcohol counselor
8 working for a non-profit referral service. The staff member manipulates the caller by, inter alia,
9 purporting to make an assessment of the addict’s situation and declaring that the addict has a
10 “Category 3 Drug Addiction.” Exhibit I, p.4. In reality, the Fresh Start staff member is not
11 making an assessment, but instead is merely reading from the script that has pre-determined the
12 addict has a “Category 3 Drug Addiction.”
13 119. The Fresh Start staff member then uses the script to steer the person to want to seek
14 treatment at Fresh Start. When the caller is ready to speak to a salesperson or “registrar” at Fresh
15 Start, the caller is to be “tagged live” to the Fresh Start salesperson. Id. at p.8. This means that the
16 call is transferred from the Fresh Start staff member posing as an independent referral service to a
17 Fresh Start salesperson.
18 120. The script advises Fresh Start staff to “ALWAYS TAG LIVE, if the person does not want
19 to talk to a counselor, bring them back to the ruin, remind them they said they were willing to do
20 whatever it takes, ICE WATER DIP them with major problems you uncovered, let them know
21 what will happen if ____ doesn’t get the right help.” Id. at 8. (emphases and blank in original)
22 121. The script then indicates that Fresh Start is recording its sales calls and using the
23 recordings to conduct further analyses: “(Typically if the person does not want to get tagged, you
24 have left out a step or not handled an objection properly, bring a copy of the reach sheet and the
25
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1 TAPE (you should have taped it) to Qual and ask qual to listen to the tape with you to see where
2 the TECH went out or was left out).” Id. at 8.
3 122. Fresh Start, acting on behalf of all Defendants, routinely records its sales calls and saves
4 those recordings in a library of sorts for further study.
5 123. Fresh Start deliberately and purposely recorded its calls with Plaintiff Linda Keller without
6 her knowledge.
7 124. During Plaintiff Linda Keller’s calls with Fresh Start she provided extremely private
8 information about her family, her financial situation, and embarrassing details about Plaintiff
9 Christopher Keller’s substance abuse. Plaintiff Linda Keller had a reasonable expectation of
10 privacy in conversations with Fresh Start.
11 125. Fresh Start never asked Plaintiff Linda Keller for permission to record their conversations.
12 If Fresh Start had asked, Plaintiff Linda Keller would not have granted the request.
13 126. Fresh Start, acting on behalf of all Defendants, violated Plaintiff’s rights under 18 U.S.C. §
14 2511 et seq. by intentionally recording her private conversations with Fresh Start salespersons
15 with Plaintiff Linda Keller’s permission.
16 127. Fresh Start further violated Plaintiffs’ rights by disclosing the recording of their
17 conversations to others as a means of teaching the high pressure and deceptive sales techniques
18 Fresh Start uses.
19 128. For Defendants’ violations of 18 U.S.C. § 2511 et seq., Plaintiffs are entitled to all
20 damages recoverable under 18 U.S.C. § 2520, including, without limitation, costs and reasonable
21 attorneys’ fees, punitive damages, injunctive relief, and statutory damages.
22 DEMAND FOR JURY TRIAL
23 Plaintiffs demand a jury trial on all issues triable.
24 PRAYER FOR RELIEF
25 WHEREFORE, Plaintiff prays for the following relief:
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1 A. Judgment in favor of Plaintiffs and against Defendants for damages in such amounts as
2 may be proven at trial;
3 B. Compensation for special, general, and treble damages;
4 C. Reasonable attorney’s fees and costs of suit;
5 D. Interest at the statutory rate;
6 E. Punitive or exemplary damages against Defendants;
7 F. All further relief, both legal and equitable, that the Court deems just and proper.
8 DATED this 11th Day of September, 2014.
9 Respectfully submitted,
10 By: /s/ Ryan A. Hamilton 11 RYAN A. HAMILTON, ESQ. 12 CA BAR NO. 291349 HAMILTON LAW 13 5125 S. Durango Dr., Ste. C Las Vegas, NV 89113 14 (702) 818-1818 (702) 974-1139 15 [email protected]
16 Attorney for Plaintiffs
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