Minnesota State Wire

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 in Minneapolis. Wadsworth founded Pain, Injury and Brain Centers of America (PIBCOA), a Minnesota-based company with clinics across the United States.

According to prosecutors, Wadsworth defrauded more than a dozen franchise owners through a scheme involving microcurrent therapy offered at PIBCOA treatment centers nationwide. She also laundered significant amounts of money obtained from these 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 promoted “A.I. Myoneurvascular Therapy,” claiming it used artificial intelligence and low voltage electricity to restore degenerative cells to healthy ones—a claim authorities say was false. The therapy involved applying electrodes to patients’ skin and delivering electrical currents.

Wadsworth asserted this therapy could treat almost 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 with promises that A.I. Myoneurvascular Therapy was “state-of-the-art technology” able to “treat the untreatable.” Franchisees were trained on PIBCOA equipment and sold expensive devices and gels purportedly developed exclusively for PIBCOA.

However, investigators found that the devices had identifying information removed or covered up; original manufacturer labels were replaced with PIBCOA branding to give the impression they were proprietary products. Authorities also reported that not only did the treatment fail to deliver promised results but sometimes caused harm—including burns and severe nausea—to both franchisees and patients.

Franchise owners paid between $60,000 and $250,000 each to open PIBCOA locations but eventually shut down after learning about misrepresentations regarding both equipment and treatments provided by Wadsworth. Many suffered substantial financial losses due to these closures.

Prosecutors stated that actual losses amounted to $887,061 with total losses exceeding $2 million when including all payments made for equipment purchases, royalties, franchising costs, and other business expenses tied to unsuccessful operations.

The funds collected by Wadsworth primarily financed real estate acquisitions—including property in Nevada—a Mercedes Benz vehicle—and personal expenses described as extravagant.

Wadsworth entered her guilty plea on September 17; 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 led by the FDA Office of Criminal Investigations; Assistant U.S. Attorney Rebecca E. Kline is prosecuting.