Arizona couple pleads guilty in federal medical fraud case

PHOENIX — An Arizona couple has pleaded guilty to various charges in connection with a federal medical fraud case, according to officials.

Mary and Fred Blakley, who live in Lake Havasu City, pleaded guilty to conspiracy to commit mail and wire fraud, conspiracy to violate the Food, Drug and Cosmetic Act and conspiracy to defraud the Food and Drug Administration (FDA), according to the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

The Lake Havasu City couple is scheduled to be sentenced in April, prosecutors said.

In addition to the fraud charges, Fred Blakley also pleaded guilty to possession of a firearm by a felon due to investigators finding more than 30 firearms and 30,000 rounds of ammunition in his garage. He had previously been convicted of federal charges for conspiracy to manufacture methamphetamine.

Mary Blakley, who is 76, faces a maximum of 25 years in prison, while 61-year-old Fred Blakley faces a maximum of 40 years in prison.

What is the medical fraud that the Lake Havasu couple pleaded guilty to?

The Blakleys ran a fraudulent medical clinic business that charged clients around $300 in cash for what was sold as “full body scans” through an ultrasound machine, according to prosecutors.

The couple told clients that through “smart chip technology” that Mary Blakley allegedly invented and installed in the ultrasound machine she could diagnose, treat and cure a number of human diseases and medical conditions, including cancers.

Other services that she falsely claimed to be able to provide were non-invasive colonoscopies, measuring immune system levels and cleaning out scarring and/or toxins from the lungs or brainstem.

After the “full body scan,” the Blakleys would falsely and fraudulently prescribe treatments to their clients. According to prosecutors, these treatments included a cosmetic cream they claimed could treat cancer and gastric hernias, a veterinary antiparasitic that isn’t approved for human use they promoted as being able to treat cancer and a vitamin supplement that they said could treat cardiovascular disease and prevent heart attacks and strokes.

Mary Blakley would also claim to use a “laser” on the ultrasound machine that would drive the cosmetic cream into the patient’s body so it could kill cancer cells, prosecutors said.

To gain clients’ trust, Mary Blakley falsified her background and credentials. She claimed that she attended Karolinska Institutet in Sweden and obtained a Ph.D. In reality, prosecutors say she’s never left the country.

Mary Blakley also used a variety of pseudonyms, such as Marye, Marye Yvonnea, Rosemary, Rose Mary, Rose and Yvonne, according to the FBI.

The bureau said she also used various last names, including Blakely, Blakleley, Blakeley, Blankley, Cammer, Davis, Petry, Shjlom and Venable.

The Blakleys hid the medical fraud by falsely claiming to only be doing research, not keeping records or documentation, using coded language and avoiding specific words.

In addition, they disguised their clinics as private or religious organizations by having clients agree to memberships or confidentiality agreements.

The clinics were in operation starting in 2011 and located in Arizona, California, Colorado, Nevada and Utah, according to the FBI.

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