Suits allege sexual misconduct, fraud at Narconon

Published on NewsOK Modified: March 25, 2013 at 12:31 am •  Published: March 25, 2013
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McALESTER — Narconon Arrowhead counselors allegedly traded drugs for sex and fraudulently charged a patient's credit card $14,500, according to allegations in five lawsuits filed last week against the facility.

The suits were filed in Pittsburg County District Court against Narconon of Oklahoma, Narconon International, Association of Better Living and Education International on behalf of family members of former clients of Narconon Arrowhead.

Also among the allegations, the suits say Narconon influenced a grandmother to take out a $7,000 loan to "save her grandson's life" and charged some $14,500 to a credit card obtained without the cardholder's knowledge.

Narconon Arrowhead officials contend their mission "has always been to help people overcome addiction and prevent kids from becoming addicts ... and the lawsuits are "financially motivated and have no foundation of truth ..." according to a statement issued by the facility Thursday to the McAlester News-Capital.

Narconon Arrowhead is a non-profit drug and alcohol rehabilitation center in Canadian affiliated with the Church of Scientology. The facility has been under investigation following the deaths of three Narconon clients found dead at the facility within a year. A fourth patient died while at the hospital.

The deaths also spurred legislation to regulate facilities such as Narconon Arrowhead. In February, Senate Bill 295 was passed out of the Senate unopposed and is set to go before the House Public Health committee this month before going for a House vote, according to co-author of the bill State Rep. Jason Murphey, R-Guthrie.

"The purview is to give the department of mental health oversight of drug rehab facilities specifically due to concerns which began last summer at Narconon," Murphey said. "I think (the bill) will do fine in the House."

Meanwhile, the five lawsuits filed Thursday follow a string of wrongful death lawsuits filed by Gary Richardson, a Tulsa lawyer who represents the families of three people found dead at the facility and who are also suing Narconon Arrowhead.

The lawsuits follow the July 19 death of Stacy Dawn Murphy, 20, of Owasso, which prompted an investigation by the Oklahoma State Bureau of Investigation, the Pittsburg County Sheriff's Office and the state department of mental health.

The investigation later expanded to include three other deaths: Hillary Holten, 21, who was found dead at Narconon Arrowhead in April; Gabriel Graves, 32, who died at the facility in October, and Kaysie Dianne Werninck, 28, who died in 2009 at a local hospital while she was a client of the facility.

No criminal charges have been filed in the deaths. District 18 District Attorney Farley Ward said he is still looking into the case.

The five lawsuits filed Thursday allege false representation, fraud and deceit, non-disclosure or concealment, breach of contract and civil conspiracy.

According to the lawsuit filed on behalf of Sue Newman and Dean Shobe, representatives of Narconon Arrowhead applied for credit cards in Newman's name and allegedly without her knowledge, and charged about $14,500 to the cards at a 23 percent interest rate.

According to the lawsuit, the charges were allegedly made to the cards after Narconon reneged on an interest-free "loan and work program" allegedly set up with Newman when she couldn't afford the $15,000 charge to enter the Narconon program.

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