Arizona Couple That Ran Medical Clinic Business Plead Guilty to Conspiracy to Commit Fraud and to Violate the Food, Drug, and Cosmetic Act

PHILADELPHIA — This is an official press release from the U.S. Department of Justice (Federal Bureau of Investigation (FBI)), published as received.

PHILADELPHIA – United States Attorney David Metcalf announced that Mary Blakley, 76, and Fred Blakley, 61, both of Lake Havasu City, Arizona, entered a plea of guilty today before United States District Judge Gerald A. McHugh to conspiracy to commit mail and wire fraud and conspiracy to violate the Food, Drug, and Cosmetic Act and to defraud the Food and Drug Administration (FDA).

The defendants were charged by superseding indictment in June of this year, along with their business associate, Janmarie Lanzo, 66, also of Lake Havasu City. Lanzo pleaded guilty earlier this month to one count of conspiracy to violate the Food, Drug, and Cosmetic Act and defraud the FDA.

Fred Blakley also pleaded guilty to an information charging him with possession of a firearm by a felon, after investigators seized more than 30 firearms and 30,000 rounds of ammunition from a garage he used. He had been previously convicted of federal charges for conspiracy to manufacture methamphetamine.

As detailed in court filings, Mary Blakley, who described herself as “Doctor Mary,” and Fred Blakley were the principals of a medical clinic business that charged clients throughout the United States approximately $300 — usually in cash — for conducting what the defendants described as “full body scans” using an ultrasound machine. Lanzo worked in the clinics and sold products to clients that were recommended by Mary Blakley as a result of the scans.

The defendants falsely claimed that, through the deployment of “smart chip technology” supposedly invented by Mary Blakley and installed in conventional ultrasound machines, their “full body scans” could diagnose, treat, and cure a wide variety of human diseases and medical conditions, including cancers. Mary Blakley would claim to “activate” the “smart chip” or “light it up like a Christmas tree” to detect cancer cells. She would also claim to conduct non-invasive colonoscopies, measure immune system levels, and clean out scarring or toxins from the lungs or brainstem, among other feats. All of these claims were false.

Based on the results of these “full body scans,” the defendants falsely and fraudulently prescribed various supplements, creams, and veterinary products. The defendants promoted and sold Aetheion, a product marketed as a cosmetic cream, to treat cancer, gastric hernias, and various other conditions. In fact, Mary Blakley would claim to activate a “laser” on her ultrasound machine to “drive” Aetheion cream into a patient’s body to kill cancer cells.

The defendants also promoted and sold fenbendazole to treat cancer in humans. Fenbendazole is a veterinary antiparasitic (intended for deworming horses and other animals) that is not approved for use in humans; indeed, fenbendazole packaging even warns that it should not be used in animals intended for human consumption. In addition, the defendants promoted and sold ProArgi9+, a vitamin supplement, to treat cardiovascular disease and to prevent heart attacks and strokes.

To promote their clinics and gain the trust of potential clients, the defendants made various false and misleading claims touting Mary Blakley’s background and credentials. For instance, Mary claimed that she had obtained a Ph.D. from the Karolinska Institutet in Sweden. However, she never attended the Karolinska Institutet, and in fact, has never left the United States.

To conceal their scheme, the defendants falsely claimed they were only doing research, when they actually sold products and services and refused to keep any records or documentation; used coded language, avoiding terms like “diagnose” or “prescribe” and saying “bad cells” instead of “cancer”; and disguised the nature of the clinics as a private or religious organization, requiring clients to execute membership or confidentiality agreements.

The Blakleys are scheduled to be sentenced in April. Mary Blakley faces a maximum possible term of 25 years in prison. Fred Blakley faces up to 40 years in prison. Lanzo is scheduled to be sentenced in March and faces a maximum possible term of five years in prison.

This case was investigated by FBI Philadelphia’s Newtown Square Resident Agency and the Food and Drug Administration Office of Criminal Investigations and is being prosecuted by Assistant United States Attorneys Ruth Mandelbaum and Paul G. Shapiro and Special Assistant United States Attorney Alexander Bowerman.