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Narconon Stone Hawk sued for fraud

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Dave Touretzky

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Mar 16, 2007, 8:28:24 PM3/16/07
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Fred and Phyllis Luthy of Albuquerque, New Mexico have sued Narconon
Stone Hawk for fraud, deceptive trade practices, and unust enrichment.
According to the complain, they sent their son John to Stone Hawk in
August 2006. He lasted 5 days before being dumped at a motel.
Narconon not only kept the $23,500 "tuition" charge, they even kept
the $1,500 that had been placed on account to meet John's expenses
during the 4-6 month program.

You can Read the complaint online:

http://Stop-Narconon.org/Stone_Hawk/Luthy/complaint.pdf

Note that although Stone Hawk is located in Michigan, the lawsuit was
filed in New Mexico. The Luthys are arguing for home state
jurisdiction on the grounds that they were solicited by telephone
multiple times at their home in Albuquerque. Assuming they are
successful in keeping the lawsuit in New Mexico, this will bode well
for others wishing to sue Narconon without having to go to the trouble
of finding a Michigan attorney.

The Luthys are seeking TRIPLE DAMAGES and PUNITIVE DAMAGES based on
the deceptive trade practices charge. The complaint alleges that John
Luthy received no treatment while at Narconon Stone Hawk; he was
simply left to suffer through his withdrawal symptoms.

At least they didn't ruin his liver with a niacin overdose.

-- Dave Touretzky: "Just say 'no' to Narconon."
http://Stop-Narconon.org

Lermanet.com

unread,
Mar 16, 2007, 9:20:36 PM3/16/07
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On 16 Mar 2007 19:28:24 -0500, d...@cs.cmu.edu (Dave Touretzky) wrote:

What would be most helpful to this case, would for those who know
how this particular scam works, to craft questions for discovery...
Questions to used in depositions and in what are called " requests for
admissions."

Here is, merely, an example of the material one can get:
From a 10 November 1995 filing in RTC Vs Lerma
here are a few highlights from

"Plaintiff's response to defendant Arnaldo Lerma's
Third set of Interrogatories ( Nos 1-18 )

Interrogatory #1:
Identify by name and last known address all persons who played any
role in any cancellation of postings made by anyone else to the
alt.relgion.scientology newsgroup inluding but not limited to, those
concellations refelected in the documents
produced in this action bearing bates stamp numbers in the ranged
R001351 through R001358.

Response to Interogatory No 1
See RTC's objection to the Interrogatory. Notwishstanding
its objections, RTC responds that the following people have been
involved in efforts to have posters of infringing works and their
access providers remove infringing postings: Helena Kobrin,
Allan Cartwright, and Warren McShane.

------

Interrogatory #8
Indentify the full legal name, last known address, and position held,
if any, with plaintiff, the CSI, the CST, BPI or
any organization affiliated with any of these organizations, of the
person who has posted messages as mi...@delphi.com in the
alt.religion.scientology newsgroup

Response to interrogatory #8
Notwithstanding RTC's objection to this Interrogatory, RTC
is informed that this is the internet adress of Andrew Milne,
an employee of the Church of Scientology International, 6331 Hollywood
Blvd, Hollywood CA, 90028 and that Mr. Milne is the person who posts
from this address.

Interrogatory No. 9

Identify the full legal name, last known address, and position held
if any with plaintiff, the CSI, the CST, BPI
or any organization affiliated with any of these organizations, of the
perons who has posted messages as Vera Wallace

Response to Interrogatory No 9.:
Notwithstanding RTC's objection to this Interrogatory, RTC
has no knowledge responsive to this Interrogatory.

Interrogatory No 10:
Identify the full legal name, last known address, and position held
if any with plaintiff, the CSI, the CST, BPI or any
organization affiliated with any of these organizations, of Cory
Brennan, or any person affiliated with any of these organizations
with a name similar to cory brennan

Response to Interrogatory No. 10
Notwithstanding RTC's objection to this Interrogatory, RTC, RTC
believes this to be the ame of a staff member of the Church of
Scientology of Los Angeles, located at 4810 sunset Boulevard,
Hollywood Calif 90027"

Their lawyers dont have to ASK you for the questions to ask..I doubt
they have a clue WHO to ask, they could be sent with a short
explanation of what the real answers are, and cites for where that
proof is.

Nothing scares scientology more than knowing the right questions to
ask. Especially if you already have the answers!!

my 2 cents, based on my previous experiences in
RTC vs Lerma and RTC vs FactNet

regards
arnie lerma

Arnaldo Lerma
Lermanet.com Exposing the CON
WE COME BACK FOR OUR FRIENDS and FAMILY
to get them out while they are still alive!

I'd prefer to die speaking my mind than live fearing to speake

If the Borg were to breed with the Ferengi you'd get Scientology!

The internet is the Liberty Tree

http://theunfunnytruth.ytmnd.com
http://ocmb.lermanet.us/discussion/viewtopic.php?t=381

"it's incredible how much money the hypnotized disciples of a clever and ruthless operator will plead and beg of him to accept from them"
http://www.lermanet.com/exit/hubbard-the-hypnotist4.htm

"Scientologists believe that most human problems
can be traced to lingering spirits of an extraterrestrial
people massacred by their ruler, Xenu, over 75 million
years ago. These spirits attach themselves by "clusters"
to individuals in the contemporary world, causing
spiritual harm and negatively influencing the lives
of their hosts"
[Judge Leonie Brinkema 4 Oct 96 Memorandum Opinion]

29 November 1995
Memorandum Opinion Judge Leonie Brinkema
"the Court is now convinced that the primary motivation..
in suing Lerma, ...is to stifle criticism of
Scientology in general and to harass its critics. "

What do we get from getting people out of scientology?
We create an individual who has become a Houdini of
all mind traps.. folks who won't be fooled again.
People who can DE-program, People who can spring mental
traps..

We create, by freeing someone of scientology, a being
who has the ability to break the strongest slave chains
of all.

Those forged of lies. (c) Arnaldo Lerma

Those who can make you believe absurdities can make you commit atrocities
Voltaire (1694 - 1778)

hamburger helper

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Mar 17, 2007, 12:15:39 AM3/17/07
to

"Dave Touretzky" <d...@cs.cmu.edu> wrote in message
news:45fb3628$1...@news2.lightlink.com...

As someone who has dealt with the pains of withdrawal, I cannot imagine
compounding that with niacin overdoses and sitting in a sauna. That's the
last thing these people need, and it's about time something is being done
about these dispicable practices.

HH


Eldon

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Mar 17, 2007, 1:47:32 AM3/17/07
to
On Mar 17, 1:28 am, d...@cs.cmu.edu (Dave Touretzky) wrote:
> Fred and Phyllis Luthy of Albuquerque, New Mexico have sued Narconon
> Stone Hawk for fraud, deceptive trade practices, and unust enrichment.
> According to the complain, they sent their son John to Stone Hawk in
> August 2006. He lasted 5 days before being dumped at a motel.
> Narconon not only kept the $23,500 "tuition" charge, they even kept
> the $1,500 that had been placed on account to meet John's expenses
> during the 4-6 month program.
>
> You can Read the complaint online:
>
> http://Stop-Narconon.org/Stone_Hawk/Luthy/complaint.pdf
>
> Note that although Stone Hawk is located in Michigan, the lawsuit was
> filed in New Mexico. The Luthys are arguing for home state
> jurisdiction on the grounds that they were solicited by telephone
> multiple times at their home in Albuquerque. Assuming they are
> successful in keeping the lawsuit in New Mexico, this will bode well
> for others wishing to sue Narconon without having to go to the trouble
> of finding a Michigan attorney.

About time, and it's good they're attempting to drag the sleazebags to
New Mexico. I'd guess they will probably succeed, because they were
obviously "doing business" there. Presumably the attorney thinks he
can establish jurisdiction, because if he's a PI lawyer, he's
probably on contingency.

Take a bow, Dave, Vince and you other stalwart Narconon muckrakers.
This could shut down the whole shebang eventually.

Needs a little media coverage though ;-)

Out_Of_The_Dark

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Mar 17, 2007, 2:34:46 AM3/17/07
to
Thank you for posting this, Dave. :)

This has and still is happening to people all over the USA who have
not been informed properly on the who & what and why of Scientology's
Narconon program scam.

I hope others step forward and email Dave, Vince Daniels their
story . One can also file complaint with their state attorney general
along with a copy of this NM complaint as proof of Stone Hawk'
serious repetitive offense.

http://Stop-Narconon.org/Stone_Hawk/Luthy/complaint.pdf

The above complaint is so much like the many other complaints KACC's
Vince Daniels has been finding and exposing via radio regarding
Narconon Stone Hawk 's practices.
Catch Vince's live show on Narconon Stone Hawk tomorrow, Mar 17 on
line at KCAA radio ( 11:30am PST, 2:30p EST and at 1:30p CT)
http://radio.webstream.net/radio_player_large.asp?stationCallSign=KCAA

Some good links for readers to keep handy:

Open letter from the parents of one that was treated at Narconon -
then mistreated September 13, 2006
http://www.vincedaniels.com/article16.html

Facts on Scientology's Narconon
www.stop-narconon.org
Luthy Complaint about Narconon Stone Hawk fraud
http://Stop-Narconon.org/Stone_Hawk/Luthy/complaint.pdf

RolandRB

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Mar 17, 2007, 3:09:48 AM3/17/07
to

This is just so splendid! :o)

antisectes

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Mar 17, 2007, 4:24:31 AM3/17/07
to

==

Here is the text version of the complaint, see on ABS the attached piece
with the OCRed pdf version
==

ENDORSED FILED IN MY OFFICE THIS
STATE OF NEW MEXICO COUNTY OF BERNALILLO
JAN 09 2007

SECOND JUDICIAL DISTRICT COURT
CLERK DISTRICT COURT
FRED LUTHY and PHYLLIS LUTHY,
Plaintiffs,

v. No. CV 2007 00228
NARCONON STONE HAWK REHABILITATION CENTER, INC.,
Defendant.
VERIFIED COMPLAINT FOR FRAUD IN THE INDUCEMENT, UNFAIR OR
DECEPTIVE TRADE PRACTICES BREACH OF CONTRACT AND UNJUST

ENRICHMENT

1. Fred Luthy and Phyllis Luthy are residents of Bernalillo County, New
Mexico.
2.
Defendant Narconon Stone Hawk Rehabilitation Center, Inc. ("Narconon")
is a Michigan corporation with its principal place of business in Battle
Creek, Michigan.

3.
The acts and events giving rise to this complaint occurred in
Bernalillo County, and the harm resulting occurred in Bernalillo County.


4. This court has jurisdictions over the subject matter and the parties,
and venue is
proper in this forum. General Allegations
5.
In early July, 2006, Fred Luthy contacted Narconon about the
possibility of Narconon providing treatment for Mr. Luthy's son, John
Luthy.

6.
Fred Luthy spoke with Doug McGarry ("McGarry"), who represented himself
as an intake counselor for Narconon. McGarry gave Mr. Luthy some general
information and took Mr. Luthy's phone number.

7.
In the weeks that followed, Fred Luthy and Phyllis Luthy ("the Luthys")
received no less than six (6) phone calls at their home in Albuquerque,
New Mexico, from McGarry.

8.
During these conversations with McGarry, he told the Luthys that he was
a former student of Narconon and represented it as an appropriate
treatment option for their son, John.

9.
The Luthys informed McGarry that John has a serious drug dependency
issue and was not a willing participant for the Narconon program.
Phyllis Luthy informed McGarry on several occasions that John would not
want to remain at Narconon and would be very difficult to control.

10.
McGarry assured the Luthys that Narconon could adequately address their
concerns and that if they could get John to the program in Michigan that
Narconon "knew exactly how to deal with" someone like John.

11.
On more than 5 occasions Phyllis Luthy reminded McGarry that John was
very difficult and would likely not want to remain at the Narconon
center. Each time McGarry assured Mrs. Luthy that once John was there
the Narconon staff could assure that John would stay and be treated.

12.
Also, the Luthys received no less than six (6) phone calls at their
home in Albuquerque, New Mexico, from a woman who identified herself as
Desiree, represented herself as former student of the Narconon center
and assured the Luthys that the Narconon program would be able to
effectively treat their difficult, drug addicted, son.

13.
Upon information and belief, Desiree received the Luthys' contact
information from, and was encouraged to call them by, a representative
of Narconon.

14.
The Luthys were repeatedly assured by representatives of Narconon that,
once John was received at the Narconon Center, it was a guarantee that
they would be able to treat


him.
15.
McGarry informed the Luthys that the "tuition" for the Narconon program
was $23,500.00 and that an account would be opened for John in which the
Luthys could deposit money for his incidentals while at the center.

16.
On, or about, August 25, 2006, Fred Luthy's bank wired $25,000.00 to
Narconon for the cost of the tuition and $1,500.00 for John's account.

17.
On, or about, August 25, 2006, John Luthy arrived at the Narconon
center to begin treatment.

18.
Upon information and belief from August 25, 2006 until August 30, 2006,
John Luthy received no treatment and was merely housed at the center as
he became increasing uncomfortable, irritated and impatient while
undergoing the symptoms of drug withdrawal and craving.


19. Upon information and belief on, or about, August 30, 2006, John
demanded that
he be released from the center and Narconon had him driven to a nearby
motel and left him
there.
20. The Luthys were informed that John was terminated from the program
for "violating the rules contained in the student handbook" and that,
despite the fact that they provided him no treatment and merely housed
him for four days, Narconon would be retaining the entire $23,500.00
tuition.
21. Despite several demands Narconon has refused and failed to return
any portion of
the tuition and has further refused to return the $ 1,500.00 deposited
into John's account.

COUNT I
(Fraud in the Inducement)

22. The Plaintiffs reallege paragraphs 1-21 of their complaint.
23.
Plaintiffs entered into an agreement with Defendant to provide drug
treatment services for their son.

24.
Plaintiffs' willingness to assent to the terms of the agreement, and
the agreement itself, was caused by the material fraudulent
misrepresentations of Defendant and its agents.


25. Plaintiffs have been damaged by the Defendant's actions.
26. Defendant's conduct was malicious, fraudulent, oppressive and/or
recklessly committed, with wanton disregard of Plaintiffs' rights.
COUNT II
(Breach of Contract)

27. Plaintiffs reallege paragraphs 1 -26 of their complaint.
28. The agreements and representations made by the parties formed a
valid contract between the Plaintiffs and Defendant.
29.
Plaintiffs performed all of their obligations under the contract.

30.
Defendant breached the contract.

31.
Plaintiffs have been damaged by the Defendant's breach.

32.
Defendant's conduct was malicious, fraudulent, oppressive and/or
recklessly
committed, with wanton disregard of Plaintiffs' rights.

COUNT III
(Unjust Enrichment)

33.
Plaintiffs reallege paragraphs 1-32 of their complaint.

34.
Defendant has been knowingly benefited at Plaintiffs' expense.


3 5. Allowance of Defendant to retain the benefit would be unjust under
the
circumstances.
36. Defendant's conduct was malicious, fraudulent, oppressive and/or
recklessly committed, with wanton disregard of Plaintiffs' rights.
COUNT IV
(Unfair or Deceptive Trade Practices)

37- Plaintiffs reallege paragraphs 1-36 of their complaint.
3 8. Defendant offers drug treatment services in the regular course of
its business.
39.
Defendant offered drug treatment services to the Plaintiffs, in the
State of New Mexico, in the regular course of its business.

40.
Defendant's actions are g6verned by the Unfair Trade Practices Act,
§57-12-1 NMSA, et seq..

41.
Defendant's actions violated the provisions of the Unfair Trade
Practices Act including, but not limited to: §57-12-2(D)(7) NMSA,
§57-12-2(D)(14) NMSA, §57-12-2(D)(17) NMSA, §57^12-2(E)(1) NMSA, and
§57-12-2(E)(2) NMSA.


42. Defendant willfully engaged in these violations of the Unfair Trade
Practices Act.
43. Defendant's conduct was malicious, fraudulent, oppressive and/or
recklessly committed, with wanton disregard of Plaintiffs' rights.
44. Plaintiffs are entitled to recover actual or statutory damages,
trebled.
WHEREFORE, Plaintiffs Fred Luthy and Phyllis Luthy request that this
court enter judgment in their favor and against the defendant Narconon
Stone Hawk Rehabilitation Center Inc, and award Plaintiffs:
(a) Actual or statutory damages, trebled, for violations of the Unfair
Trade Practices
Act, §57-12-1 NMSA, el seq.,
(b) Actual damages and punitive damages in an amount to be proven at
trial for the malicious, fraudulent, oppressive and/or recklessly
committed breach of the contract.
(c) Damages sufficient to alleviate any unjust enrichment of Defendant.
(d) Reasonable attorney fees and costs, and
(e) Such other relief the Court deems just and proper.

Kelley-Streubel LLC
Donald F. Kochersberger III 315 Fifth Street N.W. Albuquerque, NM 87102
(505)
848-8581

(505)
848-8593


Attorneys for Plaintiffs
VERIFICATION
STATE OF NEW MEXICOCOUNTY OF BERNALILLO ) ) ) ss.

I, Fred Luthy, state that I have read the Verified Complaint for Fraud
in the Inducement, Unfair or Deceptive Trade Practices, Breach of
Contract and Unjust Enrichment, and that the same is true and correct to
the best of my knowledge, information and belief.

By
Fred Luthy
SUBSCRIBED AND SWORN to before me this 3d day of January, 2007, by Fred
Luthy.
ALICIA M. LAPADO
Notary Public

Feisty

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Mar 17, 2007, 9:19:10 AM3/17/07
to

"Dave Touretzky" <d...@cs.cmu.edu> wrote in message news:45fb3628$1...@news2.lightlink.com...
>
> Fred and Phyllis Luthy of Albuquerque, New Mexico have sued Narconon
> Stone Hawk for fraud, deceptive trade practices, and unust enrichment.
> According to the complain, they sent their son John to Stone Hawk in
> August 2006. He lasted 5 days before being dumped at a motel.
> Narconon not only kept the $23,500 "tuition" charge, they even kept
> the $1,500 that had been placed on account to meet John's expenses
> during the 4-6 month program.

Another motel drop? How disgusting. Worse than, "take the money and run" it's, "take the
money and run the victim."

>
> You can Read the complaint online:
>
> http://Stop-Narconon.org/Stone_Hawk/Luthy/complaint.pdf
>
> Note that although Stone Hawk is located in Michigan, the lawsuit was
> filed in New Mexico. The Luthys are arguing for home state
> jurisdiction on the grounds that they were solicited by telephone
> multiple times at their home in Albuquerque. Assuming they are
> successful in keeping the lawsuit in New Mexico, this will bode well
> for others wishing to sue Narconon without having to go to the trouble
> of finding a Michigan attorney.

Very interesting fact, the solicitation. Pretty brochures, lots of calls and pampering to
make that person feel so special, - it all seems "perfect." If its too good to be true....
This would surely charm a vulnerable family -someone who had "all the answers" and used
very persuasive communication techniques to rope someone into thinking that Narconon is
the only treatment for them!

Then again, that is the sole treatment of the Narconon scam, the all-enveloping, constant
sale of "you need Narconon." Like you need the next member course. And the next and the
next. One big diversion to steal money, and of course, health.

But fraud is fraud, and this is a scam. And scams and fraud do cross borders. All the
better, the news of Narconon does warrant interstate "treatment."

>
> The Luthys are seeking TRIPLE DAMAGES and PUNITIVE DAMAGES based on
> the deceptive trade practices charge. The complaint alleges that John
> Luthy received no treatment while at Narconon Stone Hawk; he was
> simply left to suffer through his withdrawal symptoms.

In a nutshell, the "receiving no treatment" would be appropriate. Because with all the
promises made and attention focused on total distraction, there really is none. Unless you
consider captivating someones consciousness to feelgood mode the substance of change.
Long term success - nil - no wonder!

Maureen

>
> At least they didn't ruin his liver with a niacin overdose.

Really.


>
> -- Dave Touretzky: "Just say 'no' to Narconon."

Redefining substance abuse, to "abused by fraud"


Maureen

> http://Stop-Narconon.org

barbz

unread,
Mar 17, 2007, 10:46:48 AM3/17/07
to

New Mexico, huh...land of talking urinal cakes and publicly funded
Second Chance programs? I hope they win their case. That might help NM
realize that Second Chance is the same scam under a different name
targeting a different demographic.

--
Barb
Chaplain, ARSCC (wdne)

"Keep fighting for freedom and justice, beloveds, but don't forget to
have fun doin' it. Lord, let your laughter ring forth. Be outrageous,
ridicule the fraidy-cats, rejoice in all the oddities that freedom can
produce."

--Molly Ivins

x.e.n.u.@mynospamway.kom

unread,
Mar 17, 2007, 11:38:52 AM3/17/07
to
d...@cs.cmu.edu (Dave Touretzky) wrote:

>Fred and Phyllis Luthy of Albuquerque, New Mexico have sued Narconon
>Stone Hawk for fraud, deceptive trade practices, and unust enrichment.
>According to the complain, they sent their son John to Stone Hawk in
>August 2006. He lasted 5 days before being dumped at a motel.
>Narconon not only kept the $23,500 "tuition" charge, they even kept
>the $1,500 that had been placed on account to meet John's expenses
>during the 4-6 month program.
>
>You can Read the complaint online:
>
> http://Stop-Narconon.org/Stone_Hawk/Luthy/complaint.pdf

[snip]

Someone with the relevant information (barbz?) should let the lawyer(s)
in NM know what to expect from the OSA goons soon to be sic'd on them.

Xenu - the other one

barbz

unread,
Mar 17, 2007, 2:11:00 PM3/17/07
to

Funny, New Mexico is considering funding a Second Chance program in
Albuquerque prison...$3 million bucks of taxpayer money, some of which
will go straight to DM.

Fredric L. Rice

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Mar 17, 2007, 11:03:38 PM3/17/07
to
"hamburger helper" <not...@nothing.com> wrote:

>As someone who has dealt with the pains of withdrawal, I cannot imagine
>compounding that with niacin overdoses and sitting in a sauna. That's the
>last thing these people need, and it's about time something is being done
>about these dispicable practices.

This is something I've never understood and hopefully never will.

The cravings for some substance appears to be overwhelming to some
people -- there are smokers I know who are dieing after years of
listening to their doctors telling them to stop only to get to the
point where each of their doctors have informed them that it's now
pointless to stop -- they'll be in hospital soon anyway so there's
no reason to stop.

Along somes the Scientology frauds which prey upon such people and
swindle from them over $20,000 at a throw, leaving the victims --
in 90% of the cases -- worse off than they were.

---
Welcome to Nazi America thanks to Christian Republicanism:
http://www.youtube.com/watch?v=IfhUaUuG1sM

Fredric L. Rice

unread,
Mar 17, 2007, 11:19:45 PM3/17/07
to
"Eldon" <Eldo...@aol.com> wrote:
>On Mar 17, 1:28 am, d...@cs.cmu.edu (Dave Touretzky) wrote:
> You can Read the complaint online:
> http://Stop-Narconon.org/Stone_Hawk/Luthy/complaint.pdf

Dave. Have you considered drafting a press release with this news
and sending it to PressBox? Mention that NarCONon is Scientology
and it will get a good news release coverage.

Message has been deleted

Quaoar

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Mar 18, 2007, 7:04:39 PM3/18/07
to
StopSpam...@myway.com wrote:

Nobody cares what you post. You were not here. You were not heard.

Q

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