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Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 1 of 57

IN THE UNITED STATES DISTRICT COURT


FOR THE DISTRICT OF COLORADO

Civil Action No.


THOMAS FERRARA, Jr. an Ohio Citizen; and
THOMAS FERRARA, Sr. an Ohio Citizen,
Plaintiffs.
v.
NARCONON FRESH START d/b/a A Life Worth
Saving, Inc., ASSOCIATION FOR BETTER
LIVING AND EDUCATION INTERNATIONAL;
NARCONON WESTERN UNITED STATES, and
NARCONON INTERNATIONAL,
Defendants.

COMPLAINT AND JURY DEMAND

Plaintiffs Thomas P. Ferrara and Thomas J. Ferrara (Plaintiffs), through counsel, Ryan
Hamilton of Hamilton Law, LLC, allege the following:
I.
PARTIES
1.

Plaintiffs were, and at all relevant times to this Complaint are, residents of Ohio.

2.

Defendant Narconon Fresh Start d/b/a A Life Worth Saving (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 Fort Collins, Larimer County, Colorado. Fresh Start may be served

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 2 of 57

with process through its registered agent, Mark Kirwin, 4480 Market St., Ste. 804, Ventura, CA
93003.
3.

Defendant Narconon Western United States (Western) is a corporation registered in the

State of California with its headquarters in Los Angeles, California.


4.

Western controls the time, manner, and method of Fresh Starts business by actively

managing its daily operations, and creating and approving their marketing materials.
5.

Defendant Narconon International (NI) is a California corporation with its headquarters

in Los Angeles, California.


6.

NI is the parent/licensor of Defendant Narconon Fresh Start. NI exercises control over the

time, manner, and method of Fresh Starts operations.


7.

NI was doing business in the State of Colorado by and through its agent and

subsidiary/licensee Defendant Narconon Fresh Start. NI may be served with process through its
registered agent, Timothy Bowles, One South Fair Oaks Avenue, Pasadena, California 91105.
8.

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.
9.

Defendant ABLE is a corporation registered in the State of California with its headquarters

in Los Angeles, California.


10.

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.
11.

ABLE is the successor in interest to the Social Coordination Bureau of the Church of

Scientology, also referred to as SOCO.

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12.

ABLE transacts business in the State of Colorado by and through its agents, Narconon

International and Narconon Fresh Start. ABLE may be served with process through its registered
agent, Timothy Bowles, One South Fair Oaks Avenue, Pasadena, California 91105.
II.
JURISDICTION AND VENUE
13.

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.
14.

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
15.

On or about June 15, 2013, Plaintiffs Thomas, Jr. and Thomas Ferrara, Sr. were searching

for an appropriate drug and alcohol rehabilitation facility for Thomas, Jr.
16.

Plaintiffs spoke with Fresh Start representative Dan Carmichael about the treatment

program at Narconon Fresh Start.


17.

Carmichael represented the Fresh Start drug treatment program has a 76% success rate.

As set forth in more detail below, this representation was false.


18.

Further, Carmichael represented that Fresh Starts treatment program offers a sauna detox

therapy known as the New Life Detoxification program.


19.

Carmichael represented that the New Life Detoxification Program reduces or eliminate

drug cravings by flushing out residual drug toxins stored in a patients fatty tissues.
20.

Fresh Start sent Plaintiffs the pamphlet attached hereto as Exhibit A that set made these

same representations.

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21.

The pamphlet and Carmichael further represented that the treatment program Fresh Start

offers is secular.
22.

The pamphlet further represented that Fresh Starts treatment program involves cognitive

behavior modification therapy and includes counseling techniques.


23.

Each of the above representations was false and misleading.

24.

Fresh Start uses the Narconon treatment program.

25.

The Narconon treatment is a standardized treatment program that consists of eight books

by L. Ron Hubbard and a sauna and vitamin program called the New Life Detoxification Program.
26.

L. Ron Hubbard was the founder of the Scientology religion. Hubbard is the sole source of

all teachings and sacred texts in the Scientology religion.


27.

Although not disclosed to patients, the material in the Narconon books comes from

religious texts in the Scientology religion.


28.

Most of the methods in the Narconon program were designed to train staff at Churches of

Scientology to become auditors. These are people who deliver the Scientology teachings to get to greater
states of spirituality and ability. These methods are based off of Scientology scriptures called Hubbard
Communications Office Bulletins (HCOBs).
29.

Narconon treatment centers are modeled administratively after Scientology churches or orgs

using Hubbard Communications Office Policy Letters (HCOPLs).

30.

Each piece of the Narconon program is found in the HCOBs and all the methods used to run a

Narconon center are found in the HCOPLs.

31.

Book 1 of the Narconon program is the Communications Course. This course is also known as the

Therapeutic Training Routines (TRs) Course. The training routines in this book were designed for
practitioners of Scientology to be able to repeatedly give commands while smoothly and comfortably
handling issues that come up during auditing.

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32.

The Training Routines in Book 1 of the Narconon program come out of the following Scientology

scriptures: HCOB 16 Aug 71 TRAINING DRILLS REMODERNISED and HCOB 7 May 68 UPPER
INDOC TRS. The word INDOC here is short for indoctrination. When doing the TRs, the student is
being indoctrinated into the practices of Scientology auditing.

33.

The Training Routines in Book 1 of the Narconon program come out of the following Scientology

scriptures: HCOB 16 Aug 71 TRAINING DRILLS REMODERNISED and HCOB 7 May 68 UPPER
INDOC TRS. The word INDOC here is short for indoctrination. When doing the TRs, the student is
being indoctrinated into the practices of Scientology auditing.
34.

Book 2 of the Narconon Program is the New Life Detoxification Program. This is the sauna portion

of the Narconon program. The New Life Detoxification Program of the Narconon program is exactly the
same as a Scientology practice called the Purification Rundown.
35.

Book 2 of the Narconon program comes out of Scientology scriptures known as the Purification

Series and an L. Ron Hubbard Book called Clear Body, Clear Mind.
36.

Book 3 of the Narconon program is the Learning Improvement Course. This course is supposed to

teach the student to be able to learn and apply anything he studies as long as he follows the procedures
exactly. The Learning Improvement Course of Book 3 of the Narconon program comes out of the following
Scientology scriptures:
HCOB 25 JUNE 71R BARRIERS TO STUDY
HCOB 7 OCT 81R METHOD THREE WORD CLEARING
HCOB 21 JUNE 1972 ISSUE III METHOD 7
HCOB 30 JANUARY 1973RE METHOD 9 WORD CLEARING THE RIGHT WAY
HCOB 26 MAR 79RB MISUNDERSTOOD WORDS AND CYCLES OF ACTION

37.

Book 4 of the Narconon program is the Communication and Perception Course. This course is

informally known as the TRs and Objectives Course and is a re-hash of Book 1 but the TRs are more
intensive. The purpose of this book is to train students to be able to deliver Objectives. Objectives are
processes that are supposed to bring attention in to Present Time and away from past bad experiences.

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38.

Books 5 through the 8 of Narconon program have the same title and content as courses in the

Church of Scientology. Books 5 through 8 of the Narconon program are the Ethics Phase of the Narconon
program.
39.

Book 6 of the Narconon program is the Personal Values and Integrity Course. As part of this

course, the Narconon student is asked to write down all of the transgressions they have committed in all
areas of their life. The students transgressions are sent for review to a Case Supervisor who the student
is not allowed to talk to during the program. The Case Supervisor is to make notations about the areas the
Supervisor believes need to be addressed in Book 7 and give the written transgressions back.

40.

Book 7 is the Changing Conditions in Life Course. This Book teaches about formulas L. Ron

Hubbard made up to improve the conditions in peoples lives. Two examples of the formulas are: Find out
Where you Are and Find out who you really are.
41.

Book 8 of the Narconon Program is called The Way to Happiness. This book is supposed to be a

common sense guide to living, and if followed, is supposed to make someone happier.
42.

The Narconon course books have patients demonstrate their understanding of Scientology

doctrines by, for example, making clay sculptures related to those doctrines.
43.

Parishioners in the Scientology religion study the same doctrines and engage in the same

rituals contained in the Narconon program as part of the exercise of the Scientology religion.
44.

Narconon claims a success rate of 76% for all Narconon centers, including Narconon Fresh

Start d/b/ A Life Worth Saving.


45.

There are no published studies on the success rates or the outcomes of patients from

Narconon Fresh Start d/b/a A Life Worth Saving.


46.

Further, the Director of Legal Affairs for Narconon International, Claudia Arcabascio,

advised the Narconon Freedom Center in Michigan not to claim the high success rate in
responding to a Better Business Bureau complaint. Ms. Arcabascio advised Narconon Freedom

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do not say we have 70% success (we do not have scientific evidence of it). See email from Ms.
Arcabascio, attached hereto as Exhibit B.
47.

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 his
deposition. The relevant portions of Dr. Casals deposition testimony are attached hereto as
Exhibit C. Dr. Casal, 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 C, Deposition of Dr. Louis Casal, 124:21 125:5; 126:1 7.
48.

When Dr. Casal was asked under oath about the New Life Detoxification sauna program

the same sauna program at issue in this case he testified that there is no scientific basis for the
notion that sweating in a sauna detoxifies a persons body or treats addiction:
Q.

Have you looked at the Narconon literature on what Narconon contends the

benefits from the sauna are?


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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 me 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 C, Deposition of Dr. Louis Casal, 136: 21 137:9.


49.

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, Defendants continue to
represent to prospective patients, as they did to Plaintiffs, that the New Life Detoxification has
been scientifically and medically proven as effective.
50.

Under its sauna program, Fresh Start has patients sit in a sauna for hours per day for five

weeks. Fresh Start also has patients ingest Niacin and other vitamins way in excess of their
recommended daily allowances as part of the sauna program.
51.

Not only does the New Life Detoxification fail to live up to Fresh Starts claims about its

benefits, the sauna program is dangerous. By having students 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.
52.

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 LineUp provides a flow chart of a patients experience into and through the Narconon program. The
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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
an individual church providing services for the Church of Scientology. A copy of the Narconon
Technical Line-up is attached hereto as Exhibit D.
53.

Defendants consider the Narconon 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 E.
54.

At Fresh Starts headquarters in Glendale, California, hangs a plaque received from ABLE

that thanks Larry Trahant and The Narconon Fresh Start Team for introducing patients to L. Ron
Hubbard and The Bridge. The writing on the plaque provides, in relevant part:

Larry and his dynamic team at Narconon Fresh Start are hereby
warmly thanked and highly commended for their dedication and
hard work. They 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 taken their first steps on The Bridge, thanks to
the compassion and efforts of this team.
A photo of this plaque is attached hereto as Exhibit F.
55.

Scientologys own marketing documents show that the Narconon program is part of

Scientologys plan to clear civilization. (To go clear is the ultimate spiritual goal for a
Scientologist, achieved after one goes up the Bridge to Total Freedom.) The document attached
hereto as Exhibit G, shows a Church of Scientology, or an Org as its known, with an arrow
directed at the Narconon Jumping Man logo. The document reads:
The question is not how to clear an individual, its how to clear a
civilization by making every one of our orgs a central
organization responsible for every sector of Scientology activities
across its [sic] entire geographic zone.
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In other words, the Church of Scientology is supposed to direct Narconon to achieve Scientologys
spiritual goal of clearing civilization.

56.

Defendant ABLE owns the trademarks for Narconon, including all rights to the Narconon

Jumping Man logo.

57.

Defendant gave permission for the Narconon Jumping Man logo to be used in the

document attached hereto as Exhibit G.

58.

Fresh Start is using the Narconon program to introduce Scientology and L. Ron Hubbards

technology to unwitting patients seeking drug rehabilitation. This is exactly as the Church of
Scientology directed as part of its Social Coordination Strategy. Scientology explicitly outlined
this strategy in an urgent Executive Directive from the Authorization, Verification, and Correction
Department of its Religious Technology Center. The Executive Directive outlining the Social
Coordination Strategy is attached hereto as Exhibit H (hereafter the SOCO Directive).

59.

The SOCO Directive instructed all SOCO GROUPS, which includes Narconon, as

follows:
YOU ARE THERE TO SELL LRHs TECH TO THE SOCIETY
AND GET IT USED, AS THE TECH. You do this through a
SMOOTH JOB OF PROMTIONAL ORGANIZATION FRONT
GROUPS, CORPORATIONS, FIELD WORKERS, ETC.
(emphases in original).
The SOCO Directive expressly directed using front groups to introduce L. Ron Hubbards
technology, i.e., Scientology to society.

60.

The Narconon treatment program does not involve counseling. Fresh Start has admitted

this in other cases.

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61.

According to Narconons manuals for administering the treatment program, the Narconon

program is to be followed exactly as set forth in the Narconon books. The Narconon program is
not to be mixed with any other treatment methods or approaches to treating substance abuse.

62.

Accordingly, staff at Narconon are actively discouraged from providing counseling or

deviating from the Narconon program.

63.

The Narconon program does not involve cognitive behavioral modification therapy.

Cognitive behavioral therapy or CBT is a form of psychotherapy that involves changing


responses to stimuli as well as modifying thought patterns. CBT uses evidence-based treatments
drawn from research in the field of psychology.

64.

Scientology teaches that psychiatry, psychotherapy, and the field of psychology are evil

and are to blame for many of societys ills.

65.

Plaintiffs paid $33,000.00 for secular drug and alcohol treatment that Defendants did not

provide.

66.

At Fresh Start, Thomas, Jr., did not receive any of the counseling or cognitive behavior

therapy Defendants promised to provide.

67.

Thomas, Jr., became ill as result of undergoing the New Life Detoxification Program. He

suffered embarrassing injuries as a result of undergoing the New Life Detoxification Program and
continues dealing with those injuries to date.

68.

Thomas, Jr. also suffered emotional damages as a result of the strange methods Defendants

used to treat his substance abuse.

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NI, Western, and ABLE Control Narconon Fresh Start

69.

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:


70.

Defendant Narconon Fresh Start has all appearances of being a corporate sham illusion and

mere instrumentality of Defendants NI, ABLE, and Western


71.

ABLE, NI and Western heavily influence Narconon Fresh Start and govern and control

nearly every aspect of Narconon Fresh Starts business activities.


72.

NI publishes manuals that individual Narconon Centers such as Fresh Start d/b/a Sunshine

Summit Lodge are required to follow in operating the individual Narconon center. Two of these
manuals are entitled Opening A Successful Narconon Center and Running An Effective
Narconon Center.
73.

These manuals indicate that an individual Narconon center can do very little without the

approval of NI, Western, and ABLE.


74.

Narconon Fresh Start cannot transfer, demote, or dismiss a permanent staff member

without the approval of NI.


75.

NI, Western, and ABLE have ultimate authority over the hiring of any Fresh Start staff

member. If a Narconon Fresh Start staff member does not meet the qualifications of a staff
member, the staff member may petition the Senior Director of Administration at NI to remain on
staff.
76.

If a staff member at Narconon Fresh Start believes she has been given orders or denied

materials that make it hard or impossible for her to do her job, she may file a Job Endangerment
Chit with the Ethics Department at NI. NI and Western then investigate and work to resolve the
staff members issue.

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77.

The operations manuals require staff members at Narconon Fresh Start to report

misconduct and nonoptimum conduct to the Quality Control Supervisor at NI. NI and Western
investigate misconduct at Narconon Fresh Start and may take disciplinary actions against its staff
members.
78.

Western receives ten percent of the weekly gross income from Narconon Fresh Start.

79.

NI requires Narconon Fresh Start to send it detailed weekly reports containing statistics of

more than 40 different metrics. NI and Western review these weekly reports and order changes at
Narconon Fresh Start based on increases or decreases in the statistics in the reports.
80.

NI, Western, and ABLE require that Narconon Fresh Start receive approval on all

promotional materials before Fresh Start disseminates them. Further, Fresh Start must obtain
approval as to its Internet websites from NI, Western, and ABLE before the sites go live.
81.

NI, Western and ABLE also assist in creating Narconon Fresh Starts advertising

materials. NI, Western and ABLE dictate the contents of those advertising materials.
Narconon International and ABLE monitor the delivery of the treatment that Fresh Start
provides. The written materials in the Narconon program consist of the writings and works of L.
Ron Hubbard. Narconon and Scientology refer to these materials as technology or tech.
82.

NI requires that Narconon Fresh Start maintain a building account fund in which weekly

monies from the gross income are used to purchase new premises and also as a cushion to salvage
the organization in dire circumstances. The building fund is under the control of NI.
83.

NI, Western and ABLE conduct tech inspections at Narconon Fresh Start. These

inspections entail NI, Western, and ABLE monitoring and correcting the manner in which
Narconon Fresh Start delivers the Narconon treatment program to patients at Fresh Start. NI,
Western, and ABLE instruct staff at Fresh Start as to the exact manner in which they are to
perform their services and deliver the Narconon treatment program.

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84.

NI and ABLE also publish all training materials for Narconon Fresh Start. This includes

seven different training materials on subjects ranging from the Narconon sauna program to
overseeing to delivering the Narconon treatment program.
85.

Further, the NI Director of Technology and Approval demands and ensures that there are

good photos of L. Ron Hubbard visible in every center and that materials are available to students
and staff as to L. Ron Hubbards contributions in the field of alcohol and drug rehabilitation.
86.

NI, Western, and ABLE work with individual Narconon centers such as Fresh Start on

legal problems, including patient requests for refunds and complaints to the Better Business
Bureau. In addition, NI, Western, and ABLE work to combat negative publicity for Fresh Start.
87.

NI, Western, and ABLE are intimately involved in the day-to-day operations of Narconon

Fresh Start. NI, Western, and ABLE have the final authority over all decisions at Narconon Fresh
Start relating to hiring and firing, delivery of services, finances, advertising, training, and general
operations.
88.

NI, Western, and ABLE all are principals served by their agent, Fresh Start.
FIRST CLAIM FOR RELIEF
BREACH OF CONTRACT

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.

Defendants contracted with Plaintiffs to provide Thomas, Jr. secular drug and alcohol

treatment. Fresh Start was a signatory to the contract.


91.

As consideration, Plaintiffs paid Defendants $33,000.00.

92.

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.
93.

Defendants breaches have caused Plaintiffs to suffer damages in excess of $75,000.00.

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SECOND CLAIM FOR RELIEF


FRAUD
94.

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:


95.

The following is a non-exhaustive list of false representations Defendants knowingly

made to the Plaintiffs: (i) that the Narconon program has a 76% success rate; (ii) that Thomas, Jr.
would receive counseling and cognitive behavioral therapy related to substance abuse at Fresh
Start; (iii) that the New Life Detoxification sauna program is safe and has been scientifically
shown to eliminate or reduce drug cravings; and (iv) that the treatment program at Fresh Start is
secular.
96.

Fresh Start employee Dan Carmichael made these representations to Plaintiffs on or about

June 15, 2013, with the intent that they be acted upon.
97.

Plaintiffs did not know that these statements were false.

98.

As a proximate result Plaintiffs reliance on Defendants false representations, Plaintiffs

have sustained damages in excess of $75,000.


THIRD CLAIM FOR RELIEF
FRAUDULENT CONCEALMENT
99.

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:


100.

Defendants representative Dan Carmichael intentionally concealed material facts to

Plaintiffs when persuading them to admit Thomas, Jr. to Fresh Start. The facts he failed to disclose
include the fact the Narconon treatment program consists of the works of L. Ron Hubbard, the
founder of Scientology. Further, Dan Carmichael concealed the fact that patients in the Narconon
program are instructed to practice and study the same materials as beginning Scientologists.

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101.

Plaintiffs were unaware of these facts when speaking to Defendants representatives about

obtaining drug treatment.


102.

Representative Dan Carmichael intentionally concealed these facts because he knew that

Plaintiffs would not pay for treatment at Fresh Start if they knew these facts.
103.

As result of Defendants concealment of these material facts, Plaintiffs have suffered

injuries in excess of $75,000.


FOURTH CLAIM FOR RELIEF
NEGLIGENCE
104.

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:


105.

Defendants owed Plaintiffs a duty to render substance abuse treatment to Thomas, Jr. in a

manner that did not subject her to an unreasonable risk of harm.


106.

Defendants breached these duties by: (i) instructing Thomas, Jr. to sit in a sauna for several

hours per day while ingesting extreme dosages of Niacin and other vitamins; (ii) failing to staff the
Fresh Start treatment facility, and particularly the sauna, with any qualified medical personnel;
(iii) failing to provide duly qualified counselors to administer treatment; and (iv) providing
Scientology in lieu of substance abuse treatment.
107.

As a proximate result of Defendants breaches of the above duties, Plaintiffs have suffered

injuries in excess of $75,000.00.


FIFTH CLAIM FOR RELIEF
NEGLIGENT MISREPRESENTATION
108.

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:


109.

On or about June 15, 2013, Defendants, through Fresh Start employee Dan Carmichael,

made the following false representations of fact to Plaintiffs: (i) that the Narconon program has
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more than a 76% success rate; (ii) that Thomas, Jr. would receive counseling and cognitive
behavioral therapy related to substance abuse at Fresh Start; (iii) that the New Life Detoxification
sauna program is safe and has been scientifically shown to eliminate or reduce drug cravings; and
(iv) that the treatment program offered at Fresh Start is secular.
110.

Defendants made these statements to Plaintiffs without exercising reasonable care.

111.

Defendants made these statements to guide Plaintiffs in his business transaction with

Defendants.
112.

Defendants knew that Plaintiffs would rely on these representations of fact.

113.

Plaintiffs relied on these false representations of fact to their detriment and Plaintiffs have

suffered injuries in excess of $75,000.


SIXTH CLAIM FOR RELIEF
CLAIM UNDER COLORADO CONSUMER PROTECTION ACT, C.R.S.A. 6-1-105
114.

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:


115.

Defendants engaged in unfair or deceptive trade practices by knowingly making false

representations of fact to Plaintiffs.


116.

On or about June 15, 2013, Defendants knowingly made the following false

representations to Plaintiffs, both through its representatives and on its website to the public at
large: (i) that the Narconon program has a 76% success rate; (ii) that Thomas, Jr. would receive
counseling and cognitive behavioral therapy related to substance abuse at Narconon; (iii) that
Narconons sauna program is safe and has been scientifically shown to eliminate or reduce drug
cravings; and (iv) that Fresh Starts treatment program is secular.
117.

As part of a bait and switch scheme, Defendants made these false representations in the

course of its business to induce Plaintiffs to pay $33,000.00 and admit Thomas, Jr. to Fresh Start.

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118.

Defendants unfair or deceptive trade practices complained of herein significantly impact

the public.
119.

Defendants make numerous false claims about their treatment program to the public at

large on their websites at www.freshstart.net, www.narcononcolorado.org, www.narconon.org,


and www.coloradonarconon.com. These false claims include: (i) the treatment program offered at
Fresh Start d/b/a A Life Worth Saving has a 76% success rate; (ii) that Fresh Starts sauna
program removes drug residues that cause drug cravings and relapse; (iii) that religion is not part
of the Narconon treatment program; and (iv) that Fresh Starts treatment program offers
counseling and cognitive behavioral therapy.
120.

Defendants have deceived numerous other consumers using these same practices.

Consumers seeking drug rehabilitation services for their loved ones such as Plaintiffs are often in
an urgent and vulnerable situation. Consequently, they often are left with relatively little
bargaining power in their transactions with Defendants. Defendants deceptive trade practices
have the potential to impact adversely numerous consumers seeking drug rehabilitation services in
the future.
121.

Defendants further engage in a dangerous bait and switch scheme by advertising their

services as a drug rehab program on the websites listed above. But when patients such as Plaintiff
Thomas, Jr. enter Defendants program they receive nothing but Scientology doctrine and
dangerous Scientology rituals such as the Purification Rundown, i.e., the New Life
Detoxification Program.
122.

Defendants deceptive trade practices, if not stopped, will continue to have a negative

impact on the public. This impact on the public includes keeping persons who need actual
rehabilitation services from getting them.
123.

As a consequence of Defendants unfair or deceptive trade practices, Plaintiffs have

suffered damages in excess of $75,000. Plaintiffs are entitled to all damages recoverable under the
18

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 19 of 57

Colorado Consumer Protection Act, including without limitation, treble damages and attorneys
fees.
SEVENTH CLAIM FOR RELIEF
UNJUST ENRICHMENT
124.

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:


125.

Defendants received benefits from Plaintiffs including, without limitation, $33,000.00 for

drug rehabilitation services that Defendants promised to provide.


126.

Defendants did not provide, nor were they equipped to provide, Plaintiffs any of the drug

rehabilitation services they promised to provide.


127.

Under the circumstances, it would be unjust to allow Defendants to retain the benefits they

obtained from Plaintiffs.


DEMAND FOR JURY TRIAL
Plaintiffs demand a jury trial on all issues triable.
PRAYER FOR RELIEF
WHEREFORE, Plaintiffs pray 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. All further relief, both legal and equitable, that the Court deems just and proper.
DATED this 11th day of May, 2015.

Respectfully submitted,

By:
19

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 20 of 57

RYAN A. HAMILTON, ESQ.


NV BAR NO. 11587
HAMILTON LAW
5125 S. Durango Dr., Ste. C
Las Vegas, NV 89113
(702) 818-1818
(702) 974-1139
ryan@hamiltonlawlasvegas.com
Attorney for Plaintiffs

20

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Exhibit A

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 22 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 23 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 24 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 25 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 26 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 27 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 28 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 29 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 30 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 31 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 32 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 33 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 34 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 35 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 36 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 37 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 38 of 57

Exhibit B

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 39 of 57

From: "Mike Toth" <mtoth@kech.com>


Date: January 16, 2009, 11:17:28 AM EST
To: "Miriam Tenorio" <miriamtenorio@yahoo.com>, "Claudia Arcabascio"
<locarcabascio@narconon.org>
Subject: RE: Re: Wolverton BBB complaint and suggested response
Miriam
What is the bottom line. Any refund anticipated? I believe the response to the BBB should begin with
the response to the specific allegations and conclude with the factual basis for him leaving the program.
Use more generic terms for the technical aspects of the program. Claudias suggestions are
appropriate. Call me to discuss specifics.

From: Miriam Tenorio [mailto:miriamtenorio@yahoo.com]


Sent: Thursday, January 15, 2009 1:20 PM
To: Claudia Arcabascio; Mike Toth
Subject: Fw: Re: Wolverton BBB complaint and suggested response

Sorry - forgot to attach the file. Here it is! :)


--- On Thu, 1/15/09, Miriam Tenorio <miriamtenorio@yahoo.com> wrote:
From: Miriam Tenorio <miriamtenorio@yahoo.com>
Subject: Re: Wolverton BBB complaint and suggested response
To: "Claudia Arcabascio" <locarcabascio@narconon.org>, "Mike Toth" <mtoth@kech.com>
Date: Thursday, January 15, 2009, 12:18 PM
Dear Claudia and Mike,
I have re-written the response to the Wolverton BBB complaine - see most recent attachment.
The actual complaint is found on
http://www.westernmichigan.bbb.org/complaint/view/37013866/b/so2o9h4k.
Please let me know if this is ok to send.
ML,
Miriam
--- On Mon, 1/12/09, Claudia Arcabascio <locarcabascio@narconon.org> wrote:
From: Claudia Arcabascio <locarcabascio@narconon.org>
Subject: Re: Wolverton BBB complaint and suggested response
To: "Miriam Tenorio" <miriamtenorio@yahoo.com>
Cc: "PRODUCTION NNI" <production@narconon.org>, "John Walser A/ED NN FC"
<johnwalser@gmail.com>
Date: Monday, January 12, 2009, 4:36 PM
Dear Miriam,
Thanks for sent me this. I don't have a copy of the letter received from the BBB which makes difficult for
me to see if the answer is appropiate.

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 40 of 57

However, I see the letter okay less than the comment of "hearsay". It is a generality.
I cannot reach Helena today to review this. Instead, I recommend the following:
1. Correct the letter (more ARC in the letter and change the expression of "hearsay" for specifics and do
not say that we have 70% success (we do not have scientific evidence of it).
2. Send a copy of the letter received from BBB to Mike Toth along with the proposed answer (corrected
by you).
3. Get okay from the attorney
4. Send the letter (preferably by certified mail return receipt request). Check out this point with Mike Toth
first.
If you send to Mike Toth the complete data, it should not take for him more than 10 minutes of his time.
Please let me know if you have any questions.
ML,
Claudia
----- Original Message ----From: Miriam Tenorio
To: Claudia Arcabascio
Sent: Monday, January 12, 2009 8:57 AM
Subject: Wolverton BBB complaint and suggested response

Dear Claudia,
Here is a BBB complaint from a suspended student, Joe W. Michelle has written a response
which is attached. Please let me know if this letter looks ok by you or whether we need to
rewrite.
Thanks!
Miriam
--- On Mon, 1/12/09, Michelle Darrell <mdarrell@freedomtreatmentcenter.com> wrote:
From: Michelle Darrell <mdarrell@freedomtreatmentcenter.com>
Subject: Wolverton
To: miriamtenorio@yahoo.com
Date: Monday, January 12, 2009, 10:25 AM
http://www.westernmichigan.bbb.org/complaint/view/37013866/b/so2o9h4k.

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 41 of 57

Exhibit C

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Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 43 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 44 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 45 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 46 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 47 of 57

Exhibit D

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Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 49 of 57

Exhibit E

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Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 51 of 57

Exhibit F

WELCH_001374

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 52 of 57

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 53 of 57

Exhibit G

Page
of 1
Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 54
of157

https://hamiltonlawlv.sharepoint.com/narconon/Shared%20Documents/Evidence/Captured... 8/13/2014

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 55 of 57

Exhibit H

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 56 of 57


6:14-cv-00187-RAW Document 261-20 Filed in ED/OK on 07/22/14 Page 2 of 3
SOCIAL COORDINATION INTERNATIONAL
EXECUTIVE DIRECTIVE
SOCO INT ED 19

16th April 1987

TO : ALL SOCO GROUPS


SOCO CONT OFFICES
SOCO INT
INFO :
FCB EXECS
CLO EXECS
ORG EXECS
MISSION EXECS
FROM: CO SOCO INT
URGENT IMPORTANT
SOCIAL COORDINATION STRATEGY
The only reason L RH founded the network of SOCIAL COORDINATION
was to directly get the technologies of Education, Drug Rehabilitation
and the rehabilitation of criminals into wide use
in the society and arrest the decline of the society, caused
by a few people who introduced unworkable technology.
This then also gives the only reason you are there,
which is TO SELL LRH's TECH TO THE SOCIETY AND GET IT USED, as
THE TECH to handle criminality, Drug Rehabilitation and Education.
In a time of great social unrest, where drug use is at its
peak, where the crime rate is consistently increasing, where
children and adults are frantic about faulty education, there is
one STABLE DATUM in all this : LRH's TECHNOLOGY.
Unless a SOCO group concentrates on getting LRH's Tech out
into the society, replacing unworkable tech, it will have a hard
time. Getting this done by all SOCO groups is the prime interest
of SOCO INT, te get the TECH into the society. There are various
sales points to accomplish this : Sales to States, to Institutions,
to individuals, to businesses etc.
Every post on an org board has a role in accomplishing this.
Anyone who backs this up and does it is totally safe on
post and will be backed up.
Anyone found not actively supporting or doing this will
receive no mercy.
The stats
is being done.
that its execs
and used, and

of posts and groups directly measure whether this


And, if a group's stats are up it is direct proof
and staff are oriented in getting LRHs tech out
if they are down, itproves they are not.

Any idea that a SOCO group is there for any other reason
than getting LRH's tech out to society and replacing the
unworkable tech that has been introduced, must be cast aside.
You do have the policies on how to go about this. You
definitely have the public demand. Who wants a drugged, criminal
or stupid society except suppressives.
In the teeth of the forces who work to destroy western
civilisation, you will get nowhere until you begin to work as
subversives of the planned subversion.
The whole fields of law enforcement, drug handling and
education aren't going bad through stupidity.

Case 1:15-cv-01000-WJM Document 1 Filed 05/11/15 USDC Colorado Page 57 of 57


6:14-cv-00187-RAW Document 261-20 Filed in ED/OK on 07/22/14 Page 3 of 3
2
We can handle it, insanity,
is to deny the world the tech.

drugs. To not sell the functions

Always keep this in mind : YOU ARE THERE TO SELL LRH's


TECH TO THE SOCIETY AND GET IT USED, AS THE TECH.
You do this through a SMOOTH JOB OF PROMOTIONAL
ORGANIZATION - FRONT GROUPS, CORPORATIONS, FIELD WORKERS,
SOCO OFFICES ARE THERE TO ORGANIZE IT AND GET IT DONE.

ETC.

If you find that your post actions are not fully aligned
to this, no matter what the post, and your post stats will
tell the story, then you must change your operating basis,
so that your post fully aligns with selling LRH's tech to
the society and getting it used as the tech to handle crime and
drug rehabilitation and education.
Realize, that anyone who is trying to confuse you, by
telling you to do other things which do not align with the
above stable datum, is factually suppressing the mission we
are on to accomplish, and is playing into the hands of the
subverters of the fields of education, crime and drug handling.
By actually sticking to the above stable datum, we will
accomplish a total revolution in the fields of drugs, crime
and education, and get LRH's tech used as THE tech to handle
the above f i e l d s .
What you need to do is very simple : you must do the
functions of your post as laid out in LRH policy to the end
result of selling LRH's tech to the society and getting it
used as THE tech, and you must demand that the other staff
in your group or organization do the same, so that maximum
forward progress can be achieved.
And by doing this we can't help but make LRH's Tech
the only tech being used in the handling of drugs, crime
and education, with all the unworkable tech out of use,
including those that introduced it.
This will bring us forward to a civilisation without
insanity, without criminals and without war, where the
able can prosper and honest beings can have rights and where
Man is free to rise to greater h e i g h t s .

Alois Eisenring
COMMANDING OFFICER
SOCO INTERNATIONAL
Authorized by
AVC INT
AVCI:AE:rw
1987 by SOCO Int
ALL RIGHTS RESERVED
LRH is a trademark owned by Religious Technology Center and
are used with its permission. Printed in U.S.A.