PHILADELPHIA — An Arizona couple has pleaded guilty to running a nearly two-decade-long medical fraud scheme that prosecutors say exploited sick and dying patients while generating more than $2 million in illegal profits.
Mary Blakley, 76, and Fred Blakley, 61, entered guilty pleas Monday in federal court in Philadelphia after being charged with mail and wire fraud earlier this year. The couple, from Lake Havasu City, admitted to operating sham medical clinics across several states without proper licenses.
According to prosecutors, the scheme began in 2006 and continued through 2025. During that time, Mary Blakley ran clinics in Arizona, California, Colorado, Nevada and Utah, promoting a so-called “full body scan” that claimed to detect and treat cancer and perform advanced medical tests.
The service, which typically cost $300, was marketed as using advanced “smart chip technology.” In reality, authorities said the clinics relied on standard ultrasound machines incapable of delivering the promised diagnoses or treatments.
To avoid detection, the Blakleys reportedly kept no patient records and required clients to pay out of pocket, often in cash or by check. Prosecutors said the couple also sold creams and drugs advertised as cancer treatments, including substances labeled as cosmetics and fenbendazole, an animal dewormer not approved for human use.
Mary Blakley allegedly misrepresented her credentials, falsely claiming she had worked for pharmaceutical company Merck and displaying a fake doctorate degree in her office.
The case also uncovered other criminal activity. Prosecutors said Fred Blakley illegally stockpiled firearms and ammunition despite being barred from owning weapons due to a prior federal conviction. The couple was previously convicted in 1997 for manufacturing methamphetamine.
Authorities said Fred Blakley built, modified and sold firearms and accessories while expressing violent anti-government views in recorded conversations with undercover agents. Prosecutors also said Mary Blakley was aware of her husband’s weapons operation.
Both defendants remain in custody at a federal detention center in Philadelphia. Sentencing is scheduled for April. Mary Blakley faces up to 25 years in prison, while Fred Blakley could receive a sentence of up to 40 years.
