A credentialed counselor under NAADAC (A) learns from a femaleclient (C) that she is living with a male NCACII counselor (B) working in another office of the same agency. A is a friend of B and has attended parties at the his home; a comparison of addresses confirmed that they are the same. After gathering the information, A reported the information to her supervisor who then met with the client. The supervisor also compared addresses and asked C to describe the person with whom she lives. All the information gathered indicated that a dual relationship is present. However, the supervisor who does not want to complete the required paper work decided that the information from A and C is hearsay and therefore there is no need to report a breach of the NAADAC Code of Ethics or file a grievance with the state. The NAADAC Code of Ethics specifically states that counselors shall not engage in sexual behavior with current or former clients. Where does living in the same place fit into this principle? Since a female client and male counselor are living at the same address, do we automatically assume that a sexual relationship is present? What is the responsibility of the supervisor who does not want to make the report? What is the responsibility of counselor A in this situation? In the treatment setting, how do we teach new counselors to uphold ethical and legal standards when the supervisors ignore these standards?