In a closely watched case of health care fraud, Tammy Wadsworth, a 63-year-old Minnesota woman, has pleaded guilty to possessing altered, forged, or counterfeit medical products, in a scam that prosecutors say reached over $2 million in losses. Wadsworth, who was the founder of the pain clinic chain Pain, Injury and Brain Centers of America (PIBCOA), admitted to a scheme that involved selling sham medical devices and treatments to franchise owners across the United States, according to a statement from Acting U.S. Attorney Joseph H. Thompson. Thompson described Wadsworth as a "modern-day snake oil salesman," accusing her of preying on those desperately seeking relief from chronic conditions. The treatment, dubbed "A.I. Myoneurvascular Therapy," promised a 95% success rate in treating an array of diseases but turned out to be ineffective and, at times, harmful.
The scheme that involved more than a dozen franchise owners began in May 2017, when Wadsworth devised a way to recruit them, selling the idea that A.I. Myoneurvascular Therapy utilized state-of-the-art artificial intelligence and could treat "the untreatable." Instead, the devices Wadsworth sold to franchise owners, with product information and manufacturer details obscured or removed, were nothing but a ploy to funnel money into her own pockets. The devastating outcome, inflicted upon people who trusted her, forced all the franchise owners to close their clinics and left many facing severe financial hardship.
Wadsworth's criminal actions, which led to $887,061 in actual losses and potentially more than $2 million in total damages, did not go unnoticed. She was investigated by the FDA's Office of Criminal Investigations, the result of which grounds her in a reality far from the healing she once dishonestly peddled. Special Agent in Charge Ronne Malham of the FDA’s Office of Criminal Investigations emphasized the agency’s commitment, saying, "We will continue to investigate and bring to justice those who threaten the health of consumers by evading federal requirements." This measure reassures U.S. consumers of the safeguards in place to protect them against fraudulent medical practices.
Within the official press release, Assistant U.S. Attorney Rebecca E. Kline, who is prosecuting the case, detailed the further luxuries Wadsworth afforded herself with the money she scammed from franchisees. Among other high-end purchases, Wadsworth used the ill-gotten gains to buy real estate, including a Nevada house and a Mercedes-Benz. Sentencing for Wadsworth has yet to be scheduled, but the guilty plea signals the end of her ability to exploit those searching for medical relief.
