Couple Pleads Guilty to $2 Million Healthcare Fraud in Philadelphia

UPDATE: In a stunning turn of events, Mary Blakley, 66, and her husband, Fred Blakley, have pleaded guilty to operating a fraudulent healthcare scheme that generated over $2 million in bogus claims. The couple’s admissions in a Philadelphia federal court on Monday mark a significant moment in an extensive investigation into their deceptive practices.

Using the guise of “Dr. Mary,” Blakley promised patients miraculous medical breakthroughs at clinics across Arizona and other states. They charged patients $300 for a full-body scan, falsely claiming it utilized a proprietary “smart chip” capable of detecting and curing serious illnesses like cancer. However, federal prosecutors revealed that the couple only administered basic ultrasounds, misleading patients with fabricated claims.

The Blakleys’ fraudulent operations included clinics in their home state of Arizona, as well as locations in California and Colorado. Authorities noted that some patients were linked to Pennsylvania, where they were ultimately prosecuted. Their infamous “full-body scan” was merely a traditional ultrasound, which they marketed as cutting-edge technology.

In court, U.S. District Judge Gerald McHugh oversaw the proceedings as the couple pleaded guilty to charges including mail and wire fraud and conspiracy. The couple’s dubious medical practices were compounded by troubling personal backgrounds. Mary Blakley had previously been convicted for manufacturing methamphetamine, while Fred Blakley, 61, faced separate firearms charges and admitted to stockpiling weapons and ammunition in preparation for a “civil war” against the government.

“We’re gonna have to go to war with our own government … a civil war,”

Fred Blakley was recorded saying during an FBI investigation, which underscored the couple’s alarming mindset as they defrauded patients.

The couple’s downfall began following complaints filed by local authorities and even their estranged daughter in Arizona. An extensive investigation by the FBI led to their indictment earlier this year. Both remain in custody at the federal detention center in Philadelphia and are scheduled for sentencing in April 2025, where they could each face more than 150 years in prison.

As the medical community and patients recover from this scandal, the case serves as a stark reminder of the vulnerability of individuals seeking legitimate healthcare solutions. The Blakleys’ deceit not only robbed patients of their hard-earned money but also exploited their health fears.

As this story continues to develop, it raises critical questions about oversight in the healthcare industry and the lengths to which some will go to exploit vulnerable populations. Stay tuned for updates as the legal proceedings unfold and more details emerge from this shocking case.