Couple Pleads Guilty to $2 Million Healthcare Fraud Scheme

UPDATE: In a shocking healthcare fraud case, Mary Blakley and her husband Fred Blakley pleaded guilty in federal court in Philadelphia on Monday, admitting to running a fraudulent clinic scheme that defrauded patients of over $2 million. The couple falsely advertised a proprietary “smart chip” technology that allegedly could detect and cure various illnesses, including cancer, but instead provided only basic ultrasounds.

Court documents reveal that the Blakleys operated clinics in multiple states, including Arizona and California, luring patients with promises of miraculous treatments for just $300 per session. However, their so-called medical breakthroughs were nothing more than elaborate fabrications. Prosecutors stated that the couple prescribed ineffective creams and medications, with one substance, fenbendazole, approved only for animals.

Mary Blakley, 66, who misrepresented herself as a doctor, also faced scrutiny for her criminal past, which includes a prior conviction for manufacturing methamphetamine. Prosecutors noted that she falsely claimed to have worked at the prestigious MD Anderson Cancer Center and even displayed a fake degree from the Karolinska Institute in her clinic.

Meanwhile, Fred Blakley, 61, who pleaded guilty to additional firearms charges, reportedly stockpiled more than 30,000 rounds of ammunition in preparation for a supposed civil war against the U.S. government. During an FBI investigation, he was recorded expressing intentions of violence, stating, “We’re gonna have to go to war with our own government.”

The couple’s fraudulent activities came to light following complaints from local authorities and even their estranged daughter. The FBI launched a detailed investigation, leading to their indictment earlier this year. As they await sentencing in April 2025, both face potential prison terms exceeding 150 years.

The implications of this case extend beyond mere fraud; it highlights significant issues regarding patient safety and trust in medical practices. As the healthcare industry grapples with the fallout, patients and families affected by such scams are left questioning the integrity of healthcare providers.

Stay tuned for updates on their sentencing and the broader repercussions of this scandal in the healthcare community.