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Suit Alleging Fraud and Racketeering Filed Against Local Drug Treatment Center

Last week, a lawsuit seeking class action was filed against Narconon of Georgia, a local Norcross drug treatment center. The lawsuit, which was filed by the parents of five former Narconon of Georgia patients, alleges multiple claims including: fraud, negligence, and breach of contract. Narconon International, the center’s Los Angles based parent company, as well as, Religious Technology Center, which licenses the technology used by Narconon of Georgia and served as “the final arbiter and enforcer of orthodoxy for all Scientology-related activities and organizations,” are also named as defendants in the lawsuit.

Narconon has history of legal troubles.

This is not the first time that Narconon of Georgia, which is affiliated with the Church of Scientology, has faced legal troubles. Within the last six months, the center lost its state-issued operating license, settled a wrongful death suit, and been charged with allegations of insurance fraud totaling approximately $3 million.

Lawsuit alleges Narconon of misleading families regarding recovery rates and using families’ information to open credit card accounts.

According to the lawsuit, Narconon of Georgia serves as a racketeering enterprise. Specifically, the plaintiffs argue that Narconon of Georgia misled them regarding a myriad of issues including: the organization’s connection to the Church of Scientology and the center’s claim that 70 percent of their patients successfully recover from drug addiction. Furthermore, the plaintiffs claim that Narconon of Georgia falsely represented itself to the state’s Department of Community Health by claiming it was a residential treatment clinic. As a result, the center’s license was revoked in December of last year. The center remains open pending an appeal of the Department of Community’s decision.

A statement issued by the plaintiff’s attorney explains that many families struggled in order to come up with the money needed to enroll their children in Narconon’s drug rehabilitation program; so of whom are still paying for the program. He argues that these families believed that Narconon’s claims were legitimate, but they ended up losing everything. For example, one family states that the center opened multiple credit cards using their information and charged in excess of $19,000. The family claims that as a result of the debt, they were forced to sell their house and move into a mobile home.

Narconon of Georgia denies the allegations. They argue that the lawsuit merely seeks to extract money from an organization that has dedicated itself to addressing the country’s drug epidemic. A statement issued by the center notes that they have served the Atlanta community for over a decade, with services including: drug education, prevention, and rehabilitation.

If you or a loved one have been a victim to medical fraud, you should contact Goldstein & Hayes immediately. An attorney can review the facts of your case and ensure that you receive the representation and compensation you deserve.