IN THE STATE COURT OF D E K A L B COUNTY STATE OF GEORGIA

PATRICK C. DESMOND AND MARY C. DESMOND, INDIVIDUALLY, AND MARY C. DESMOND, AS ADMINISTRATRIX OF THE ESTATE OF PATRICK W. DESMOND,

Plaintiffs,

v.

NARCONON OF GEORGIA, INC. DELGADO DEVELOPMENT, INC., SOVEREIGN PLACE, LLC, SOVEREIGN PLACE APARTMENT MANAGEMENT, INC., LISA CAROLINA ROBBINS, M.D. THE ROBBINS GROUP, INC., and NARCONON INTERNATIONAL,

Defendants.

Civil Action No. 10A28641-2

PLAINTIFFS' SUPPLEMENTAL MEMORANDUM IN SUPPORT OF MOTION TO UNSEAL RECORDS PURSUANT TO UNIFORM STATE COURT R U L E 21

On Tuesday, May 1, 2012 Plaintiffs filed a Motion requesting that the Court

unseal a number of documents pertaining to this case. Those documents make it clear

that Narconon of Georgia was operating an illegal residential housing operation at the

time of Patrick Desmond's death.

On Thursday, May 3, 2012 Plaintiffs obtained a copy of an investigation

conducted by the Georgia Healthcare Facility Regulation Division. Of course, like most

evidence unearthed in this case, these documents were discovered by Plaintiffs and not

voluntarily produced by Narconon. Unbeknownst to Plaintiffs and the Court, this

investigation was apparently being conducted at the same time that the Court was

conducting various sanctions and discovery hearings. It also explains why Narconon

apparently was engaged in an exhaustive document search - to comply with the requests

of regulators - rather than as falsely represented, to comply with Plaintiffs discovery

requests.

On March 21, 2012, State regulators conducted a surprise inspection of Narconon

of Georgia and after interviewing a number of students and examining various

documents, the State concluded that Narconon of Georgia continues to illegally operate a

residential facility in violation of state law. (See Ex. A.) Moreover, these same regulators

concluded that Narconon of Georgia made false and misleading statements in its license

applications. These findings are completely consistent with Plaintiffs' R.I.CO.

allegations but they are somewhat astonishing because this State investigation reveals

that despite the existence of a pending lawsuit alleging this very same conduct, Narconon

of Georgia and Narconon International continue to operate and profit from this illegal

criminal enterprise.

As the Court is aware, documents filed in court are presumed to be available for

public inspection. See Uniform Superior (State) Court Rule 21. Records may only be

sealed i f the Court finds on an individual document by document basis that the privacy

interests of the party requesting that the records be sealed clearly outweighs the public

interest in disclosure. See Atlanta Journal v. Long, 258 Ga. 410 (1988).

The State investigation makes it abundantly clear that Narconon of Georgia and

Narconon International despite ample notice that its operations are illegal, continue to

accept students into the program. In fact, the State investigation discovered that

Narconon continues to illegally accept students who are court ordered to attend

residential treatment programs:

2

"Two of the twenty eight sample clients were court ordered to go to a residential

treatment program." (Ex. A. p. 7.)

Undoubtedly, this practice continues to rely on the criminal predicate acts of altering the

Narconon letterhead and making false statements to court officials.

Because Narconon continues the very same pattern of illegal operations alleged in

Plaintiffs' complaint, the documents that have been sealed affect the public interest of

potential students and court officials who may be unaware of its illegal practices.

Accordingly, the public interest clearly outweighs any interest that Narconon may have in

shielding these documents from disclosure. For these reasons, and the reasons outlined in

Plaintiffs' previous motion to unseal the records, Plaintiffs respectfully request that the

Court unseal the specified records immediately.

400 Colony Square 1201 Peachtree St.,NE Suite 900 Atlanta, GA 30361 Telephone: (404) 961-7650 Facsimile: (404)961-7651

This the 4 t h day of May, 2012. HARRIS PENN LOWRY DELCAMPO, LLP

M T L ) . M A N T O N '6a. Bar No. 868587 JEFFREY R. HARRIS Ga. Bar No: 330315 DARREN W. PENN Georgia Bar No. 571322

Attorneys for Plaintiffs

33is a* QA Healthcare Faairty fteauafon Ditfi^n ?OSMAPPROVED

MAS Or C^aSKTON

044-493.O w « e OF ;--r;c:v-c:v- OS SuPUS R

NARCONON OF SEORGiA.

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At the tint* of ins XXUWLWH investigation ; (GAC01 ;C48>, Narcorcn of Gcorga was not in ? corr-p&mce with Gvacte? 2S0-4-2. Rutes and i Rea-j|s;top.s for Drug Abusa Treatment end ! Educators P-eacams, Tfce fbiiowtny d^r-H iries I were enec.

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290-4-2-,03/fr) Definitions

in thest rules. unless line context cSte? Ms* rsaifres. th? wcrcs and prrasss se.5 fcrih. n?rs-n

fro) Uetr.se* m w a tne g#ota* permit (scared by tfte dRpartnwTit whieh authorizes ;hs n o W e r » operas a *ug abuse trsatmwt and adusaSon program for 5ne term provided tie-on. ,„

This ?.,.j(a {3 not met $s evidenced by. Basal v. m'wi cffee% ctoawcnBfon cfwi roesfd re*av are litfwvSevws. Rwas c&termrwd that the ferity was aparWng a residential Drue Abusa TrealTterit end E duration Piogtatt.. wter; 11? feciiity was license for O vpstent DM?; Abusse Troat-nent Odueatfcr Program. r b? *ndH;}3 Wrf'ST ??BV!SY,' at the depa-vna~si i^vesrrta^ri dent on mvm't '^vftalsitf that ths is™: ry pofciss snd

• proofs jrss stated thai the feci Sty is «n outpatient cnn. refcaWSte an aid eeuestbn (gcHiiy ~ 1 « fevtVs f-irancls! posto efd gqrsamsr-t torrr

' stated under houses Sis! thfe im<® *li provide a . i?«of39»s preferred providers fcr housing.

i Re*few of Nafcwon of Gscrsfg rreusmg 1 anarsasmeiite revested that m fssility r jc net ! gravida housictstn its cBents: hawfivsr, m fetiSt? : •c:orrr.~-,2cd that students s , : .ya in a : ^ s s & e Si irsnrrjsriJJie'Sr the canter. Ttw

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SSrce April U, 2m7:, Hw&mm ha; Im?!emeritod art ac'qlttona: «ocum««t ca CRstira that cHants-and fam^ss ;

•> an a^l-pat;eri!, fscJI ;nr and that it is up to I :h» d i w t trnat fa.Tiiiv to de ta -n i i * wbsre ifts ' &WK w|!i «*y «isjf'r,s treatment. The intake ' -ffifisirars have oeer. edoc<tecJ on this fe-R, i snd a has b«sn &fer*c fay <:>• !S*«ts w.-na t«v« ftt'.iecai tf«srm.fintt;inr«2 April 1 5 * 2012. This fcm» has been m«li?d a thefamCy (aembers who were not available durirta thn trnta x>t Intsl-A «lcfrg wftfi ct fflr papers tf-?y r « «*«d

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S t o Asifii 1S, 2012, Narconon has . Implemented ar; addlr-orwi document to anstra tftat clients and tanfiil-.es This was undarstand.wilhcut <*«sttor>, that completes!

" -NgrewKjn is an out-patient facility, ar-d • Apr! 16, irsat it is to m Ctertf m$ feinltf to' 2012. i'nej deternna where fee cHant wW stay during form wss VeaKi'iciv., Trie* intake regisi-a.rs have msi^d 10

. icen educated on this ferro, and it has families been s^c-d by alt ©tents who have « 0 t here e1

:entered treatment Since April IGth 20^2. time of : Tnis fort'V has teen -nailed to the family intake on . members %ho were rtps avaSable during 4/20/12 the ferae oftntaka, along with Ollw papers. thsy are asked to sign.

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55*1 PEACHTR6E PARKWAY *S1 NCRCRCSS..GA 30-022

" Garcia"- P:ii?2. Hera' and Hyal: P-ace HCO>;, T r « ts» ro' in-ir^ie One ScKssf* :-- Piece wrroi ••• *•;:• f«fe.-<*.-ic-cd i'* s -aw 3«*!-:i; ;hs 'sa'.i;.

. program.

Review cf oar; records on V2012 ana 4-10';C'^. ravevvtefl coil o' r-r; cre^s vcr-r-i

wa:& aw3~r. thai tha pcisirj v,-n5 rot csrt cr :r-~ fecM.'youlpa'trr oar; *snr:r;H.';::;or a-ru

Rev*.-, rr' u-c- rat try's v.--?:- iytaco ?;<,

Na^eirfir. rc-p.*-3ssr.:ed cn mnova'MS successM sppfoa;:-' 'odr,.g ''Sl-sSi-csirii TWs siar&mer? mpHei tsK ihe?s .5 i-i™rc<-"io?< t^w.-iasr; Ire ty c r5c.r.t« " rs vve'5 sr*u rvj'sy?;; ir-hs- for vies.

«> ja c:-M t:;rr, ft>v :o ;D .! tc ati s*. 3rd sierras stone*, ws»e »i <;o*"'&"fid tr>r o

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a -> h„ i 1 - t Nb'S '.rn pfort'ss'-i D|.»:;-;iV:.'y CJiir:. . 1*3 -,vav*d

lire rslersnced Irrfcrinsiianai pfeco also fimnifflris that soir.e dents may chocse la stay with their families a«d referencas Qmvvpjy Course, Garden Ptaza and Hyatt Place as co«v&wjnt

: a&sem.'TiDdations. 'A% have further I clarified thess choices with the new intol docunterd meuTfioned o-t pa 1.

Completes April 16, 2012

iCfficnts conUsi-ue-tc acKnoA'tedrje fn writing mm 9v?y ar« aware that noi-a-g is not a pant ef fte N^corwn 01* patient drag r«T>aijiiita an prograrri.Wo have since

:implemented a tern (or famiSes ignaUirefe.

1 ii was rever o;ir intentan to promofe Prajsct Discover as a rdSidteMW pragrsm. H was developed as a cailaboraBve effect tc enhance pest grayuajto possiouifes.

•AR references so this project were • removed from the Nareanon website on ;Warch21, 2012 when ths potential : confusion was brougN to our gtisntion ; Sift inspector.

; Narconon af <5&orqia wrote a letter to Discpvery Course aski?\ there :o remove aH mention ofNareo^on f ;m their iiteraturg. cre*t ca»3 authorization ferms and Vv-eDsite. We haw received wnSon cy;-fti matien irtat this ^as &s«n dene,

: Trig Execufiva Director of Naitxmon of . Georgia>3S since had a maeifng with Narconon studonts on Apnl 17th and^on again m Aeri: 24fe for the puroose of clarifying the scope of services of Narconon ofOscrsfe. (Sfto scfctendumA)

New form oornpSeted April 16ih, ateg with !hs torn we had for 'years.

Completed March 21 2012.

Confirrnati received in writing from Vteccmry Course Asril 24ro 2012

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T.~a Executive Director a' NarsMien of Paper Georgia has since had a meeting wSh vwsrk re: iMsrcanon, students on- April 17th and tien Prelim Tx again m April 2«th for the purpose of plan ctaifyina the scape or services of incoipcr-?Jarconorv of Geonjia, Students wees atiagthfa re-nindss fiat we are an out-patient faclty w8t be and the dedsfon as to where fhay Mvsd during treatfirfiftt is up to then and their {arrtes. T-hey were also directed to further clarify any future questions vsrilM appropriate staff ntWUsrs, includtng fie Sxecutiva Director f his point is now also mentioned during the ereifnirary ireal-nent ptannsrw process, (eont at Addendum 13 j

No matter tCifti* gieograpfic origin, at! clients who are attending Narcdfioart'OMt' parent frea'tment and can stay where lhey

Irtorventfon A-nerica is ? satMr owned nor •osntrotted by Karconan of Georgia,, and we have nsvar csq^sssd to be an this wedsfe. We first iearnwr of our presence on this efcractofv tniOLish the findings of the rnsqector. Wa rssea:ctied and discovered that te domain nama appears to be owfied by a proxy, whicn means we utruid fttd no :nfejrrriat>d« on the actual owners. {Seg r g

finsBzed arsd h use by May &th-ft is OGin: l"e:iti:i."v> d n-ovv.

complete data for review of

situation is Wav V; 2012

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See addendum C

See adder dan; C

: What was gfvon to the inspector teas a profit arid loss covering January 1st

; through Apr*)"s'iHh21012. lihaci Mermatoft that had been onisrerj by our twt boos tteeper, not fully familiar with

.Narconon operation. Vte didn't have fime fcr our CPA, Sara Bossey. to took at the report before giving it to the Inspector. Mr, Sussoy has since renewed our quick book ties and errors in the data entry have baeri cgrreisted. He wit he reviewing our books once a rnotitn as ha- fliso prepares our £53 :V,i 301:.

Regarding the "cabie* bW. The Quickbacx no"aI,;nnfor°cafie''represer;ts payments to Comcast, wr© is the interne! service ' ?.unvi r-or Narconon and owr '.vebnsstsi's Comcast service, whfer nfiovrs remote accass lp Narconon's

; interns! network. Trtis was simply arbitrary twftiftotegy used m the Qu'Ckhooks software, as its categories are not tine 5-.aied for ail aspects of different

' operations.

Sam Bussey CPA same on Asrtt 19th.

review oar cu ckboo'i fifes. H'J

confcnua to come once a mor4h- to ensure our new book seepsris entering infarniaiio .oorrecttv.

This . j flotation • was v fd'-csteg-ari ?«<) to ! :utfl&e$: ]

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Since April *5, 2012. Narconon has rnptemented snf t-e- t r : : « r r ! u> ensure that clients and farwiies

. ufttfersi«K!.w8hoi4 question, that Karconc-n is an out-patient farificy, and that Implement It is up to the ofe'rt and fen% to stetormin© ©d Aprtt where the client will stay during Sreatmenl, 16th. The The btfake re-'jisters have been educated form was an this form, artd it has been signed by afe* mailed to

<«lenta «$to have entonjd tnwtmont since fami'des. 'Apr! I6tn 3012. This form -has best! wrtws '.-naf.ec to the tamSy members wn-o ware not here r-ot avei'adfe during the trite of ritski!, st intake along with >~1lw papers they are asked to en April son. 20th.

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/ „ , - ^ - i It-.e referenced infarrretJonal piece also I „ - : mcnSons that some clients my eheasa to I t , ([ . stay *»!h theif families and references I , i { c r H< Discover/Course,GardenP&za9nd

.Hyett Pi<ic« as convenient r -, -accommodations. We have further j <• -danfiaj those choices wftrt fete new ••ntake j

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CI er 3 to f 1st to .cl-i i/<Mwr, r .fitnq t" at * f y -ire J A s i t e ti <rt IH U-> n * mt o-ji a' the Na-co~o i ojt pal cnt dma "oheli I Stion pru n V*,e twve w 1 1

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inethera at intake on it was- never our infenttors to prarr

Project Discover as s residential program. It was devstepod as a collaborative effort . to enhance post graduation pgssiWities. Cortlirrnatr AJ; refer anees to this project were received in removed from the Narcorton ws&site in) ming March 21, 2012 when the poterrtfei from confusion was brought to our attention by Discovery the Inspector. Course Narconon of Georgia wrote a tetter to A.srii ?An\ Discovery C aurse asstng thsm to remove 2011 tnat ail mention of Nareo-on Mr em fhei? si! mention. Kterature, credit card aidnorteator* forms of NN is and wessiie, Yv# have regained wrvKen renaaved confirmancn thai this, has Been cote, 'from their

paperand The executive Oireclor of Narconon of the«» are Gftefyifi has shes had ,i itioting with the r ! 0 Ems

: students on Asrii: 17ft and then again on from their : ferii: 24th for the purpos* of daniying, the ws&stee. scope of services of Narconon c-f Georgia. (Sea addendu-nA)

As of April 20th 2012. only Narconon staff members m permitted to drive Narconon This was vans. A3 other drivers have been takers dona on

,el? the insurance policy and our most April f-g, recent policy verification reflects tfts 2012, Chenac. W was fenced fa tfte inspector oft t r » evening of Aprii 19lh 201:2. Discovery •Course has, re^artetf that they nave purchased t>«<o rar-s for their own activities:

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The ExecySve Director of Nsrtmw of Georgia has sir.ec had a mesting wftri students on April 1?th, 20-2 and then 3(jSin on Apr*' 24th,2G12 for the purpose of Jncorpor. clarifying the SMf^ of servers of atng this Narconon. of Georgia, Sfedents Ware wiitbe

.reminder-t?5Bt m are an out-patient facfity fmaliwrr* and the daemon as to where they lived and in during treatmem & up to them mti their t>y May families. They were also d rested to gth, further fiSnrjfy any ftiture questions with the it is being

. Executivs Director This point IS now aiso. mentioned : rnentiofed during the prciirninary now, treatment planning process., t'ctnt at Addendum 3}

No matter trtei' geographic orfgtn, ail clients «re attending Nsrctanon out patient • treatment md cr-m s'sy where thev iita.

Intervention America is r.oither owned nor centrcned fcy Narccncft of Georgia, and we

. have never requester: to be on this website. We first learned of ow pfoaonoe on this directory through the findings of the inspector. We researched and discovered. Ihst its dr>mair> name appears to be ownerj ••

. DV a proxy, which means we ooufd find m infewflfon on the acteai owners. (See

.addsndvn C)

See Addendum C

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San What was g! yen to the inspfieta* was a Sussey profit and loss covering «f«nuaw 1 st CPA through April 10th. 21012. ft had 'came on information that had been entered by cur 4/1S/12 to new book Keeper, mx fulV familiar with the review cur Narconon operafiart. We didn't have time q»ic%boo* for'our CPA. Sam Bussey, - ° l n c k a t : •" '&es, Ho report before giving it to the inspector. wJU Bussey has sftee reviewed our quick bock cantirjue 'rites and errors In the dais er try have been, to con* corrected, ones a

month to Regarding the 'cabie' bill. The Guickfeock e-sureour notation far 'cable*' repress- payments new book

• to Comcast, who is the internet sen/iee keeper is provider for Narconon and our entering webmaster's. Comcast service, wnicrt- informatics sflcHvs remote access to Na-conosi's ccrrec%.

• ifde-i-af network "Hiis was simply arbitrary tensrwiciogy nami in the This

: Quiektoooks software, as its categories ars -notation net fene tjned far aii aspects of diffe rant WSH

.operations tsKsteaori N ."01 2M to

As noted. Narconon of Q$mp?i rj& u W « . been operating as an out patient tadiiiy for internet m nearly to years and continues to operate. 4/1 Of 12 as an out pafient fecifify. We ara-rigorously wording to to correct mis-perceptions or misunderstandings by the actions addressed above end by

. requesting that Discover,' Course si$o ecnti- us to take action to eUrrvinalo any poss;hii:!y of saeh confusions about our scops of servieee. Narconon services invrisve delivery of the Narconon program, from 10 em-Sprrs a says a weekwitn branch operation until 3 PM seven days a

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Since our firs? inspector en Mstcn 2 Narconon staff have ttefcss;-/ worked to ensure sf-af our scope of services sre deariy co«limunte<»t«J to our cBer<fs, their families sua the pub-is.

C E R T I F I C A T E OF S E R V I C E

This is to certify that I have this day submitted PLAINTIFFS'

SUPPLEMENTAL MEMORANDUM IN SUPPORT OF MOTION TO UNSEAL

RECORDS PURSUANT TO UNIFORM STATE COURT R U L E 21

via First Class Mail addressed to:

Robert G. Tanner, Esq. Jeffrey N. Amason, Esq. Weinberg, Wheeler, Hudgins, Gunn & Dial, LLC 3344 Peachtree Road, Suite 2400 Atlanta, Georgia 30326

Attorneys for Lisa Carolina Robbins, M.D., and The Robbins Group, Inc.

David E. Root, Esq. Cheryl H. Shaw, Esq. Carlock Copeland & Stair, LLP 191 Peachtree Street, NE Suite 3600

Atlanta, GA 30303

Attorneys for Narconon International

This the 4 t h day of May, 2012.

Sean L. Hynes, Esq. Downey & Cleveland, LLP 288 Washington Ave. Marietta, GA 30060

Attorneys for Delgado Development, Inc.

Stevan A Miller, Esq. Barbara A. Marschalk, Esq. Drew, Eckl & Farnham, LLP 880 W. Peachtree Street P.O. Box 7600 Atlanta, Georgia 30357

Attorneys for Narconon of Georgia, Inc.

HARRIS PENN LOWRY DELCAMPO, LLP

). MANTON i . Bar No. 868587

JEFFREY R. HARRIS Ga. Bar No: 330315

4