Winona Area Woman Pleads Guilty in $2M Medical Fraud Scheme

Minneapolis, MN (KROC-AM News) - The owner of a Winona-based company has admitted to a federal charge stemming from what prosecutors describe as a sophisticated fraud scheme involving microcurrent therapy at franchise treatment centers across the United States.

According to the Office of the U.S. Attorney for Minnesota, 63-year-old Tammy Wadsworth admitted to a charge of possessing altered, forged, or counterfeit medical products. She is identified in court documents as the founder and owner of Pain, Injury and Brain Centers of America, which operated clinics and offices throughout the country.

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Prosecutors Call Therapy Scheme “Modern Snake Oil”

The charges alleged that she and her company claimed to provide a treatment called A.I. Myoneurvascular Therapy, which used artificial intelligence and low-voltage electricity to restore degenerative cells. Federal prosecutors say her claims that the therapy could treat “any type of disease, disorder, or condition with a 95% success rate” were false. In many cases, the treatment allegedly caused injuries, including burns, scars, and severe nausea.

“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.”

Franchise Owners Lost Millions in Alleged Scam

Prosecutors say she orchestrated the fraud by selling expensive medical devices and gels for her treatment to franchisees, who were charged between $60,000 and $250,000 to open franchises. The scheme allegedly caused more than $2 million in losses to franchise owners, while Wadsworth used the funds primarily to purchase real estate, a luxury car, and to finance an extravagant lifestyle.

The charges against Wadsworth stemmed from an investigation conducted by the FDA Office of Criminal Investigations.

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