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Ryan A. Hamilton
NEVADA BAR NO. 11587
HAMILTON LAW
5125 S. Durango Dr., Ste. C
Las Vegas, NV 89113
(702) 818-1818
(702) 974-1139 (fax)
ryan@hamiltonlawlasvegas.com

Attorney for the plaintiffs



UNITED STATES DISTRICT COURT

DISTRICT OF NEVADA

RONALD MCCLURE, an Arizona Citizen; and,
JASON MCCLURE, an Arizona Citizen,

Plaintiffs,

vs.

NARCONON FRESH START d/b/a RAINBOW
CANYON RETREAT, a California Corporation;
ASSOCIATION FOR BETTER LIVING AND
EDUCATION INTERNATIONAL;
NARCONON INTERNATIONAL and DOES 1-
100, ROE Corporations I X, inclusive,

Defendants.



Case No.



COMPLAINT AND JURY DEMAND


Plaintiffs Ronald McClure, and Jason McClure (Plaintiffs), by and through their attorney
Ryan Hamilton of Hamilton Law, LLC, allege the following:
I.
PARTIES
1. Plaintiffs are residents of, and for the purposes of determining federal diversity jurisdiction
are citizens of, Arizona.
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2. Defendant Narconon Fresh Start (hereafter Fresh Start), is, and at all times relevant to
this Complaint was, a corporation incorporated under the laws of, and with its principal place of
business in, the State of California. Fresh Start has been at all relevant times transacting business
in Caliente, Lincoln County, Nevada. Fresh Start may be served with process through its
registered agent, Mark Kirwin, 4480 Market St., Ste. 804, Ventura, CA 93003.
3. Defendant Narconon International (NI) is a California corporation with its headquarters
in Los Angeles, California.
4. NI is the parent/licensor of Defendant Narconon Fresh Start. NI exercises control over the
time, manner, and method of Fresh Starts operations.
5. NI was doing business in the State of Nevada by and through its agent and
subsidiary/licensee Defendant Narconon Fresh Start. NI may be served with process through its
registered agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.
6. Fresh Start and NI are subsidiaries of the Association for Better Living and Education
(ABLE). ABLE oversees the drug rehabilitation, education, and criminal justice activities of the
Church of Scientology including, but not limited to, Fresh Start and NI.
7. Defendant ABLE is a corporation registered in the State of California with its headquarters
in Los Angeles, California.
8. ABLE controls the time, manner, and method of NIs and Fresh Starts businesses by
actively managing their daily operations, including conducting inspections of Narconon centers
and creating, licensing, and approving their marketing materials.
9. ABLE transacts business in the State of Nevada by and through its agents, Narconon
International and Narconon Fresh Start. ABLE may be served with process through its registered
agent, Sherman D. Lenske, 6400 Canoga Ave., Suite 315, Woodland Hills, CA 91367.
10. Plaintiffs are unaware of the true names and capacities, whether individual, corporate,
associate, or otherwise, of Defendant DOES 1-100, inclusive, and, therefore, sues these
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Defendants by fictitious names. Plaintiffs will seek leave of this Court to amend this Complaint
when the identities of these Defendants are ascertained.
II.
JURISDICTION AND VENUE
11. This Court has subject jurisdiction pursuant to 28 U.S.C. 1332. The amount in
controversy exceeds $75,000.00, and there is complete diversity between the parties.
12. Venue is proper in this Court pursuant to 28 U.S.C. 1391(a) because a substantial portion
of the events and omissions giving rise to this lawsuit occurred in this District, and the Court has
personal jurisdiction over each of the parties as alleged throughout this Complaint.
III.
FACTUAL ALLEGATIONS
13. On or about May 19, 2013, Plaintiff Ronald McClure spoke on the telephone with Dan
Carmichael, Senior Intake Counselor at Fresh Start d/b/a Rainbow Retreat Canyon.
14. Mr. Carmichael represented to Ronald that Rainbow Retreat Canyon was an appropriate
rehabilitation facility for his son, Jason McClure. As part of a bait and switch scheme, Mr.
Carmichael made numerous material false representations of fact to persuade Ronald to admit his
Jason McClure to Fresh Start.
15. Carmichael represented that Jason would be under the care of licensed medical
professionals, such as doctors or nurses at Fresh Start. Fresh Start does not have any medical
professionals such as doctors or nurses at its facility.
16. Carmichael falsely represented that Jason would receive extensive counseling for
substance abuse at Fresh Start from highly trained addictions counselors.
17. Fresh Start does not even provide counseling as part of its treatment program. In addition,
the sole qualification of almost every staff member at Fresh Start is that he or she graduated
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from the Narconon treatment program offered at Fresh Start. Some Fresh Start staff become staff
within a very short time of graduating from Fresh Starts treatment program as a patient.
18. Carmichael falsely represented to Ronald that the treatment program at Fresh Start has
more than a 76% success rate. As set forth below, even one of Narconons own experts in a prior
litigation testified that he did not know where Narconons claimed success rate comes from.
19. Carmichael falsely represented to Ronald that Fresh Start would reduce or eliminate
Jasons drug cravings by having Jason undergo Fresh Starts sauna detoxifying program, the New
Life Detoxification Program. Carmichael claimed that the New Life Detoxification Program has
been scientifically shown to flush out residual drug toxins stored in fatty tissues to thereby reduce
or eliminate a patients drug cravings.
20. Carmichael falsely represented to Ronald that the treatment program at Fresh Start was
secular and did not involve the practice or study of religion.
21. Based on Carmichaels false representations, Ronald decided to admit his son with Fresh
Start.
22. Fresh Start charged Ronald an upfront fee of $33,000.00 for Jasons participation in the
program.
23. Fresh Start uses the Narconon treatment program. The Narconon treatment program
consists of eight course books written by or based on the works of L. Ron Hubbard, the founder of
the Scientology religion.
24. The Narconon treatment program has patients unwittingly study and practice introductory
Scientology under the premise that Scientology can treat or cure substance abuse.
25. The Narconon course books teach foundational Scientology concepts and doctrines. They
have patients perform drills known as Training Routines in which patients shout at ashtrays and
engage in other bizarre behavior with no apparent connection to substance abuse counseling.
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26. Further, the Narconon course books have patients demonstrate their understanding of
Scientology doctrines by making clay sculptures related to those doctrines.
27. Narconons sauna program, the New Life Detoxification Program, is actually a
Scientology ritual known as the Purification Rundown. The Purification Rundown is a required
ritual for practicing Scientologists as they move up The Bridge To Total Freedom,
Scientologys spiritual journey.
28. Fresh Start had Jason unwittingly studying and practicing Scientology in lieu of substance
abuse treatment.
29. Jason did not receive any substance abuse counseling at Fresh Start despite the promises he
would receive extensive counseling.
30. Fresh Start had Jason participate in Narconons sauna program. On entering the sauna,
Fresh Start required each student to ingest increasing doses of Niacin and a vitamin bomb. Fresh
Start increased Jasons dosages of Niacin well beyond the recommended daily allowance while
instructing him to sit in a sauna up to five hours per day.
31. There were no medical personnel such as doctors or nurses overseeing Jason during his
participation in the New Life Detoxification program.
32. Fresh Starts New Life Detoxification Program fails to live up to Narconons claims about
its benefits.
33. In a prior lawsuit, Dr. Louis A. Casal, an expert retained by Narconon International and
Narconon of Northern Georgia in a wrongful death suit filed against those entities, testified at a
deposition. A true and complete copy of Dr. Casals deposition testimony is attached hereto as
Exhibit A. When asked under oath about Narconons sauna program, he testified that there is no
scientific basis for the notion that sweating in a sauna detoxifies a persons body or treats
addiction:
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Q. Have you looked at the Narconon literature on what Narconon contends the
benefits from the sauna are?
A. [Dr. Casal] Yes, I have.
Q. And the sauna program, what Narconon contends is that in it in fact detoxifies
your body. True?
A. True.
Q. But theres no scientific basis that you can point to to support that contention, is
there, sir?
A. Youre correct.
Q. So when Narconon states that the sauna program detoxifies its students, youre not
aware, as a medical doctor, of any scientific basis for that contention?
A. I agree.
Exhibit A, Deposition of Dr. Louis Casal, 136:21 137:9.
34. Further, by having patients ingest extreme doses of Niacin and other vitamins while sitting
in extreme temperatures for hours, the sauna program unnecessarily exposes students to serious
health risks including severe dehydration. There is scientific consensus that, contrary to the
premise of the New Life Detoxification Program, recreational drugs are not stored in fatty tissues
for years but leave the body within a few days to a few weeks. Experts in medicine and toxicology
have repeatedly concluded that sweating does not expel drugs from the body.
35. Despite their own experts admission that there is no scientific basis for the idea that
patients sweating in the New Life Detoxification Program treats addiction, Narconon continues to
represent to prospective patients, as they did to Plaintiffs, that research has shown the New Life
Detoxification program to be effective.
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36. Narconon claims a success rate of 76% for all Narconon centers, including Narconon
Fresh Start d/b/a Rainbow Canyon Retreat. Narconon has published no studies or other verifiable
evidence to support their claimed success rates.
Dr. Casal, the medical expert retained by Narconon International in another lawsuit, testified at his
deposition that he was not convinced Narconons claimed success rate was true:
Q. Okay. What are you relying on well, let me ask you this; do you believe that 76
percent success ratio is accurate?
A. [Dr. Casal]. Mr. Harris, Ill be honest with you, thats a big number.
Q. Yeah, its its a real big number.
A. Its a big number.
Q. And its completely inconsistent
A. I I hope its true, but, I mean, I would need some convincing.

Q. Okay. Do you have any idea where Narconon is getting the numbers that its using?
A. You know, in the interest of time I just didnt have enough time to delve deeper
into those studies, Mr. Harris. And I I would be happy to, but, no, I dont have a clear
understanding of where that 70 70-something number came from, no, sir.
Exhibit A, Deposition of Dr. Louis Casal, 124:21 125:5; 126:1 7.
37. Narconon is well aware that there is no support for Narconons claimed success rate, but
nonetheless advertised a 76% success rate to Plaintiffs despite that awareness.
38. Narconon documents indicate that the Narconon program is used to recruit patients into the
Church of Scientology. For example, a Narconon document titled the Narconon Technical Line-
Up provides a flow chart of a patients experience into and through the Narconon program. The
document shows that when a patient finishes the Narconon program, the patient is to be route[d]
to the nearest Org for further services if the individual so desires. Org is Scientology jargon for
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an individual church providing services for the Church of Scientology. A copy of the Narconon
Technical Line-Up is attached hereto as Exhibit B.
39. Further, Narconon considers its program to be the Bridge to the Bridge. That is,
Narconon considers its program to be an initial step into getting on Scientologys Bridge to Total
Freedom, the key spiritual journey that practitioners of the Scientology religion undertake. See,
e.g., Narconon News, 1974, Volume 6, Issue 3: Narconon Is The Bridge to The Bridge, attached
hereto as Exhibit C.
40. Jason left Fresh Start early because he did not feel safe and the program bore no
resemblance to what Plaintiffs had been promised.
41. Jason left Fresh Start in worse condition than he entered.
ALTER EGO LIABILITY
42. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further alleges as follows:
43. Defendants Narconon Fresh Start and NI have all appearances of being a corporate sham
illusion and mere instrumentalities of Defendant ABLE.
44. ABLE heavily influences Narconon Fresh Start and NI and governs and controls nearly
every aspect of their business activities.
45. There is such unity of interest and ownership among Narconon Fresh Start, NI, and ABLE
that they are inseparable from one another.
46. The separate corporate existences of Narconon Fresh Start, NI, and ABLE is a design or
scheme to perpetrate a fraud. The separate corporate existences of Narconon Fresh Start, NI, and
ABLE is a scheme to fraudulently induce patients to enroll in one of their treatment facilities and
pay substantial funds. Further, Defendants perpetrate this scheme to recruit for and promote the
Scientology religion.
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47. It is interests of justice to disregard the corporate shield and treat Defendants Narconon
Fresh Start, NI, and ABLE as identical. Accordingly, each cause of action listed below is made
against all Defendants.
FIRST CLAIM FOR RELIEF
BREACH OF CONTRACT
48. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation
set forth in the preceding paragraphs and further allege as follows:
49. Plaintiffs and Defendants were bound by a Contract whereby Defendant agreed, in
exchange for consideration, to provide secular, residential drug and alcohol treatment to Jason
McClure.
50. Defendants breached this contract by, inter alia: (i) failing to provide services constituting
drug and alcohol treatment; and (ii) providing Scientology in lieu of drug and alcohol treatment.
51. Defendants breaches have caused Plaintiffs to suffer damages in excess of $75,000.00.
SECOND CLAIM FOR RELIEF
FRAUD
52. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further allege as follows:
53. The following is a non-exhaustive list of false representations Defendants knowingly
made to the Plaintiffs: (i) that the Narconon Fresh Start program has a 76% success rate; (ii) that
the Narconon program is secular and does not involve the study or practice of any religion; (iii)
that Jason McClure would receive counseling related to substance abuse at Fresh Start; (iv) that
Narconons sauna program, i.e, the Purification Rundown, is safe and has been scientifically
proven as safe and effective in reducing or eliminating drug cravings; and (v) and that Jason
McClure would be under the care of licensed medical professionals such as doctors or nurses at
Fresh Start.
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54. Dan Carmichael, acting within the scope of her employment at Fresh Start, made these
statements to Ronald McClure on or about May 19, 2013, to induce him to send his son to Fresh
Start.
55. Had Ronald McClure known that any of the above representations Defendants made were
false, he would not have sent Jason to Fresh Start, nor paid Defendants a substantial sum of
money.
56. As a proximate result of Defendants fraudulent conduct, Plaintiffs have suffered damages
in excess of $75,000.00.
THIRD CLAIM FOR RELIEF
NEGLIGENCE
57. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further allege as follows:
58. Defendants owed Plaintiffs a duty to render substance abuse treatment to Jason McClure in
a manner that did not subject him to an unreasonable risk of harm. Defendants further had a duty
of care to render reasonably safe and effective treatment to Jason McClure.
59. Defendants breached these duties by: (i) instructing Jason to sit in a sauna for 5 hours per
day while ingesting extreme dosages of Niacin; (ii) failing to staff the Narconon treatment facility,
and particularly the sauna, with any qualified medical personnel; (iii) failing to provide duly
qualified counselors to administer treatment; and (iv) providing Jason McClure Scientology in lieu
of substance abuse treatment.
60. As a proximate result of Defendants breaches of the above duties, Plaintiff Jason McClure
has suffered physical and mental injuries in excess of $75,000.00.
///
///
///
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FOURTH CLAIM FOR RELIEF
INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS
61. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further allege as follows:
62. Defendants engaged in extreme and outrageous conduct with the intention of causing, or
with reckless disregard of the probability of causing Plaintiffs severe or extreme emotional
distress. Defendants extreme and outrageous conduct consisted of, inter alia: providing Jason
McClure Scientology in lieu of the drug treatment or substance abuse counseling Defendants had
promised to provide him.
63. As a proximate result of Defendants extreme and outrageous conduct, Plaintiff Jason
McClure has suffered severe and extreme emotional distress way beyond what any person in a
civilized society should be expected to endure.
FIFTH CLAIM FOR RELIEF
NEGLIGENT MISREPRESENTATION
64. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further allege as follows:
65. Defendants made the following false representation of fact to Plaintiffs: (i) that the
Narconon Fresh Start program has more than a 76% success rate; (ii) that the Narconon program is
secular and does not involve the study or practice of any religion; (iii) that Jason McClure would
receive counseling related to substance abuse; (iv) that Fresh Starts sauna program, i.e, the
Purification Rundown, is safe and has been scientifically proven as safe and effective in reducing
drug cravings; and (v) and that Jason McClure would be under the care of licensed medical
professionals such as doctors or nurses at Fresh Start.
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66. Dan Carmichael, acting within the scope of his employment at Fresh Start, made these
statements to Ronald McClure on or about May 19, 2013, to induce Ronald McClure to send his
son to Fresh Start.
67. Defendants made these statements to Plaintiffs in the course of their business. These
statements were for Plaintiffs guidance in their transaction with Defendants. Plaintiffs relied on
these false statements of fact resulting in substantial pecuniary loss and other injuries.
68. Defendants made these statements without exercising reasonable care.
SIXTH CLAIM FOR RELIEF
NEGLIGENCE PER SE
69. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further allege as follows:
70. Defendants performed medical procedures on Plaintiff Jason McClure for which a medical
license was required under NRS 630.160. Such procedures included non-physicians instructing
Jason McClure to ingest extreme doses of Niacin while undergoing Narconons sauna program.
71. Plaintiff Jason McClure is in the class of persons the license requirement under NRS
630.160 is intended to protect and the injury he sustained is of the type against which the statute is
intended to protect.
72. As a proximate result, Plaintiff Jason McClure sustained physical and mental injuries.
SEVENTH CLAIM FOR RELIEF
CIVIL RICO FOR MAIL AND WIRE FRAUD, 18 U.S.C. 1964(c)
73. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further allege as follows:
74. Plaintiffs have been injured by Defendants conduct of an enterprise through a pattern of
racketeering activity.
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75. Defendants have engaged in a scheme to defraud Plaintiffs and countless others. In
furtherance of that scheme, Defendants have committed countless acts of mail fraud and wire
fraud under 18 U.S.C. 1962 within the preceding ten years.
76. Defendants perpetrate this scheme as follows: When prospective patients or their loved
ones are referred to Narconon, they then speak to an intake specialist. The intake specialist
following a script makes claims that Narconon knows to be false and without scientific support
such as the claims that Dan Carmichael made to Plaintiffs in this case. These false claims include:
(i) that Narconon has a more than 76% success rate; (ii) that Narconons sauna program reduces or
eliminates drug cravings by eliminating toxins from an addicts fatty tissue; (iii) that patients such
as Jason McClure at Narconon will receive extensive drug counseling; (iv) that the Narconon
program does not involve the study or practice of any religion; and (v) that patients at Narconon
will be under the supervision of licensed physicians and other medical personnel.
77. Defendants also mail prospective clients such as Plaintiffs pamphlets making these same
false claims to induce them to enter into the program. Defendants refer prospective patients to its
website where these false claims are also made. NI and ABLE approve Narconon Fresh Starts
marketing materials and scripts that contain these false claims.
78. When patients such as Jason McClure enter the Narconon treatment program, instead of
receiving the extensive counseling and substance abuse treatment they and their families were
promised, Narconon provides only instruction in Scientology and dangerous Scientology rituals
such as the sauna program. Defendants use their treatment program as a recruiting tool for the
Church of Scientology, as evidenced by Defendants own documents, attached hereto as Exhibits
B and C.
79. While a patient is undergoing the program, Defendants prepare the patient to become a
Narconon staff member following the patients completion of the program. In doing so, the patient
becomes a counselor for the next wave of incoming patients. This scheme allows Defendants to
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pay a patient-turned-counselor low wages and Defendants are spared the much higher cost of
paying duly qualified addiction counselors.
80. As a result of Defendants racketeering activity, Plaintiffs have suffered pecuniary
damages and physical injuries.
EIGHTH CLAIM FOR RELIEF
BREACH OF IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING
81. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further allege as follows:
82. The contract Plaintiffs entered into with Defendants for Defendants to provide treatment to
Jason McClure contained an implied covenant of good faith and fair dealing.
83. Defendants acted unfaithfully to the purpose of the contract and Plaintiffs justified
expectations by, inter alia: (1) having Jason McClure unwittingly study and practice Scientology
in lieu of engaging in drug treatment; and (2) attempting to have Jason McClure surrender his
legal rights in exchange for services for which Plaintiffs had already provided consideration; and
(3) persuading Ronald McClure to send Jason to Fresh Start with promises that Narconons sauna
program would reduce or eliminate his drug cravings by flushing toxins and then asking Jason at
Fresh Start to sign an acknowledgement that the sauna program is not a medical program and that
it provides no physical gains.
84. As a consequence of Defendants breaches, Plaintiffs have suffered damages.
NINTH CLAIM FOR RELIEF
CIVIL CONSPIRACY
85. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further allege as follows:
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86. Defendants intended to act in concert to accomplish the unlawful objectives of
indoctrinating and recruiting Plaintiff Jason McClure into Scientology under the guise of
providing him with drug treatment.
87. Defendants further acted in concert to have non-physicians perform medical procedures on
Plaintiff Jason McClure for which a medical license was required under NRS 630.160.
88. As a proximate result of Defendants intentional actions in concert to accomplish unlawful
objectives to harm Plaintiff Jason McClure, he has been harmed.
TENTH CLAIM FOR RELIEF
FRAUD CLAIMS PURSUANT TO NRS 41.600
89. Plaintiffs incorporate by reference, as if fully set forth herein, each and every allegation set
forth in the preceding paragraphs and further allege as follows:
90. By reason of Defendants actions complained of herein, Plaintiffs are victims of consumer
fraud.
91. Defendants have engaged in numerous deceptive trade practices as defined in NRS
598.0915 to 598.0925, inclusive. The following is a non-exhaustive list of the deceptive trade
practices Defendants have engaged in with respect to Plaintiffs: (i) advertising substance abuse
treatment with the intent not to sell them as advertised by providing Scientology instead; (ii)
knowingly making false representations about the Narconon treatment programs success rate, the
personnel delivering the treatment program, and the benefits of the sauna program; (iii) using bait
and switch advertising whereby Defendants advertise extensive substance abuse counseling and
treatment and then deliver a treatment program wherein the patient receives only Scientology
teaching and dangerous Scientology rituals; (iv) failing to disclose material facts to Plaintiffs
about the services Defendants were selling including, but not limited to, the fact that Defendants
treatment program consisted of Scientology doctrines and practices and the staff at Fresh Start
consisted of graduates of the Narconon treatment program without any other qualification; and (v)
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making assertions of scientific, clinical, or quantifiable fact without having appropriate evidence
such as Defendants assertions of its 76% success rate for its treatment program and Defendants
claims that the New Life Detoxification Program can reduce or eliminate drug cravings.
92. Plaintiffs have been the victims of Defendants deceptive trade practices listed above and,
as a result, have suffered substantial pecuniary damages and other injuries.
93. Defendants deceptive trade practices are likely to continue without court intervention.
94. Plaintiffs are entitled to all available relief under NRS 41.600 including Plaintiffs
attorneys fees and costs of this action, Plaintiffs damages, and an injunction restraining
Defendants from further engaging in the deceptive trade practices complained of herein.
DEMAND FOR JURY TRIAL
Plaintiffs demand a jury trial on all issues triable.
PRAYER FOR RELIEF
WHEREFORE, Plaintiffs prays for the following relief:
A. Judgment in favor of Plaintiffs and against Defendants for damages in such amounts as
may be proven at trial;
B. Compensation for special, general, and treble damages;
C. Reasonable attorneys fees and costs of suit;
D. Interest at the statutory rate;
E. Punitive or exemplary damages against Defendants; and
F. Injunctive relief prohibiting Defendants from further engaging in deceptive trade practices.
DATED June 19, 2014.

Respectfully submitted,

By:_/s/Ryan A.Hamilton_
RYAN A. HAMILTON, ESQ.
NEVADA BAR NO. 11587
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HAMILTON LAW
5125 S. Durango Dr., Ste. C
Las Vegas, NV 89113
(702) 818-1818
(702) 974-1139
ryan@hamiltonlawlasvegas.com

Attorney for Plaintiffs

Case 2:14-cv-00995 Document 1 Filed 06/19/14 Page 17 of 17