Tammy Wadsworth, 63, has pleaded guilty to possessing altered, forged, or counterfeit medical products. The announcement was made by Acting U.S. Attorney Joseph H. Thompson. Wadsworth, who founded Pain, Injury and Brain Centers of America (PIBCOA), operated a pain clinic in Winona, Minnesota with clinics and offices across the United States.
According to authorities, Wadsworth defrauded more than a dozen franchise owners through a scheme involving microcurrent therapy at treatment centers nationwide. She attempted to hide her actions by laundering significant amounts of money obtained from franchise owners.
“Wadsworth is a modern-day snake oil salesman,” said Acting U.S. Attorney Joseph H. Thompson. “Fraud that exploits families searching for answers is among the most shameless crimes we see. It is theft dressed up as innovation. Wadsworth now joins the long line of Minnesota fraudsters who will see federal justice.”
PIBCOA claimed to offer “A.I. Myoneurvascular Therapy,” which was promoted as using artificial intelligence and low voltage electricity to restore degenerative cells to health. Investigators determined this claim was false; the actual treatment involved applying electrodes to patients’ skin and delivering electrical currents.
Wadsworth falsely stated that A.I. Myoneurvascular Therapy could treat nearly any disease or condition with a 95% success rate, including serious illnesses such as Lupus, Crohn’s Disease, Depression, Infertility, Parkinson’s Disease, Alzheimer’s Disease, Multiple Sclerosis, and Autism.
Beginning in May 2017, Wadsworth recruited franchise owners by making these false claims about her therapy being “state-of-the-art technology” capable of treating untreatable conditions.
She trained franchisees on PIBCOA equipment use and sold them expensive devices and gels she claimed were developed specifically for PIBCOA’s therapy. However, these devices had identifying information removed or concealed; labels were replaced with PIBCOA branding to make it appear proprietary.
The treatments not only failed to deliver promised results but also caused injuries in some cases—including burns, scars, and severe nausea—to both franchise owners and patients.
Franchise owners paid between $60,000 and $250,000 each to open PIBCOA franchises based on Wadsworth’s promises of substantial revenue streams. After learning about the misrepresentations regarding both equipment efficacy and patient treatment claims—all franchisees shut down their businesses after incurring major financial losses.
Authorities report that Wadsworth’s actions led to $887,061 in actual loss with total losses exceeding $2 million for franchisees due to payments for equipment and royalties as well as costs related to business closures. Funds were used primarily for personal expenses such as real estate purchases—including a Nevada home—a Mercedes Benz vehicle—and other luxury items.
Wadsworth entered her guilty plea today; sentencing will occur at a later date.
“U.S. consumers rely on the FDA to ensure that their medical devices are safe and effective and bear true and accurate labeling for their intended uses,” said Special Agent in Charge Ronne Malham of the FDA’s Office of Criminal Investigations Chicago Field Office. “We will continue to investigate and bring to justice those who threaten the health of consumers by evading federal requirements.”
The case resulted from an investigation conducted by the FDA Office of Criminal Investigations.
Assistant U.S. Attorney Rebecca E. Kline is prosecuting.
