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Author Topic: State lawmaker indicted for stem cell fraud scheme  (Read 175 times)

Krik

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  • Posts: 1724
State lawmaker indicted for stem cell fraud scheme
« on: February 13, 2021, 06:19:35 AM »

[*quote*]
Consumer Health Digest #21-05
February 7, 2021

Consumer Health Digest is a free weekly e-mail newsletter edited by William M. London, Ed.D., M.P.H
http://www.calstatela.edu/faculty/william-m-london
., with help from Stephen Barrett, M.D
http://www.quackwatch.org/10Bio/bio.html
. It summarizes scientific reports; legislative developments; enforcement actions; news reports; Web site evaluations; recommended and nonrecommended books; and other information relevant to consumer protection and consumer decision-making. Its primary focus is on health, but occasionally it includes non-health scams and practical tips. To subscribe, click here
http://lists.quackwatch.org/mailman/listinfo/chd_lists.quackwatch.org
.

###

Book blasts multilevel marketing industry

Robert L. Fitzpatrick, who operates Pyramid Scheme Alert
https://pyramidschemealert.org/
, has penned the strongest attack on multilevel marketing (MLM) ever published in book form. His book, Ponzinomics: The Untold Story of Multi-Level Marketing
http://www.amazon.com/exec/obidos/ASIN/0578443511/quackwatch00-20
, explains in vivid detail why the vast majority of people who become MLM “distributors” will lose money. Even worse, those who become too enthusiastic may act as though they belong to a cult. The book also spotlights how and why the Federal Trade Commission has failed to protect the public against deceptive MLM claims.

###

Missouri state representative indicted in stem cell scheme

Patricia Ashton Derges, 63, of Nixa, Missouri, has been indicted by a federal grand jury for a scheme in which she made false claims about a supposed stem cell treatment marketed through her three southern Missouri locations of Ozark Valley Medical Clinic, LLC
http://ozarkvalleymedical.com/index.html
and for illegally providing prescription drugs to clients of those clinics. The indictment
https://quackwatch.org/wp-content/uploads/sites/33/2021/02/indictment_2021.pdf
charges her with eight counts of wire fraud related to five of her victims in the fraud scheme from December 2018 to May 2020, 10 counts of distributing oxycodone and Adderall over the internet without valid prescriptions, and two counts of making false statements to federal agents investigating her in May 2020.

The investigation was prompted by her false or misleading statements in April 2020 to a Springfield television station about using stem cells to treat COVID-19. Derges is licensed as an assistant physician in Missouri
https://pr.mo.gov/assistantphysicians.asp#:~:text=Has%20not%20completed%20an%20approved,unless%20when%20such%20three%2Dyear
. In November 2020, she was elected as a state representative in District 140 (Christian County).
[State lawmaker indicted for stem cell fraud scheme, illegally distributing prescription drugs <https://www.justice.gov/usao-wdmo/pr/state-lawmaker-indicted-stem-cell-fraud-scheme-illegally-distributing-prescription>. US Attorney’s Office news release, Feb 1, 2020]

The indictment alleges that Derges:

*** under the name Regenerative Biologics, purchased amniotic fluid allograft from the University of Utah

*** advertised Ozark Valley Medical Clinic as “The LEADER in pain and REGENERATIVE MEDICINE” and marketed her “stem cell” practice through seminars, media interviews, and social media

*** told her audience at an August 2019 meeting that the amniotic fluid she used was a “stem cell shot” and that it contained “mesenchymal stem cells” when, in fact it did not contain any stem cells

*** made similar claims in personal consultations

*** continued to tell her patients and the public that the amniotic fluid allograft contained stem cells even though she had been told that it contained no stem cells

*** administered amniotic fluid to patients whose problems included tissue damage, kidney disease, chronic obstructive pulmonary disease (COPD), Lyme disease, erectile dysfunction, and urinary incontinence

*** claimed in an April 2020 Facebook post that, “This amazing treatment stands to provide a potential cure for COVID-19 patients that is safe and natural.”

*** bought the amniotic fluid allograft for approximately $244 per milliliter and $438 for two milliliters but charged her patients $950 to $1,450 per milliliter

*** obtained from patients approximately $191,815 for amniotic fluid that did not contain stem cells

*** wrote electronic prescriptions for oxycodone and Adderall for patients and transmitted them to pharmacies over the Internet even though she conducted no in-person medical evaluations

A commentary about the case by stem cell biologist Paul Knoepfler offers interesting insights about the larger problem of fake stem cells, how religion comes into play in the marketing of stem cell treatments, and the experimental status of stem cell treatments for COVID-19.
[Knoepfler P. Lawmaker indicted for selling fake stem cells for COVID & more
https://ipscell.com/2021/02/lawmaker-indicted-for-selling-fake-stem-cells-for-covid-more/
. The Niche, Feb 4, 2021]

Derges has pleaded not guilty to all allegations. She continues to operate her clinics and serve in the state legislature.
[Toropin K. Missouri state lawmaker charged with selling fake stem cell treatments and claiming they are a cure for COVID-19
https://www.cnn.com/2021/02/04/us/missouri-lawmaker-fake-covid-19-treatment-trnd/index.html
. CNN, Feb 4, 2021]

She has been removed from the Missouri House’s Health and Mental Health Policy Committee, Professional Registration and Licensing Committee, and Special Committee on Small Business. She has also been asked to resign from the House.
[Kuang J. Missouri house speaker asks lawmaker indicted on medical fraud charges to resign
https://www.kansascity.com/news/politics-government/article248987020.html
. The Kansas City Star, Feb 3, 2021]

###

COVID-19 misinformation promoter surrenders medical license

Thomas Samuel Cowan, M.D., who operated an “alternative medicine” practice in San Francisco, has surrendered his California medical license
https://quackwatch.org/wp-content/uploads/sites/33/2021/02/cowan_license_surrender_2021.pdf

In 2017, the California Medical Board placed Cowan on probation for five years for prescribing unapproved medications to a breast cancer patient. A condition of the probation permitted him to surrender his license if he stopped practicing medicine.

Last year, he wrote on his website that he had closed his practice on June 30 and planned to reemerge on the east coast as an unlicensed health coach.

He also wrote that he would continue to sell herbal supplements online. In a YouTube video that went viral
https://www.cbc.ca/news/technology/fact-check-viral-video-coronavirus-1.5506595
last March but has since been removed. Cowan offered his discredited
https://www.reuters.com/article/uk-factcheck-coronavirus-5g/false-claim-coronavirus-is-a-hoax-and-part-of-a-wider-5g-and-human-microchipping-conspiracy-idUSKBN22P22I
theory that 5G Internet networks cause COVID-19. The video was promoted by celebrities with large social media followings, such as Woody Harrelson and John Cusack
https://www.nytimes.com/2020/04/10/technology/coronavirus-5g-uk.html
, before being removed as part of YouTube’s effort to crack down on pandemic misinformation. Cowan has authored several untrustworthy health books that rank high on searches for vaccine books on Amazon and Barnes and Noble
https://www.bloomberg.com/news/articles/2020-12-08/covid-19-vaccine-news-anti-vaxxer-books-top-search-results-at-amazon-b-n?sref=gsU5KkcI

One of his books questions whether viruses cause disease.
[Ostrov BF. Conspiracy theory doctor surrenders medical license
https://calmatters.org/health/2021/02/conspiracy-theory-doctor-surrenders-medical-license/
, Feb 5, 2021]

###

Anti-vaccine leaders exploited MAGA DC Freedom Rally

CNN has found that some prominent anti-vaccine leaders said they directly coordinated with organizers of the District of Columbia rallies last month and pushed their conspiracy beliefs at other MAGA demonstrations, on pro-Trump podcasts, and on social media platforms.
[Devine C, Griffin D. Leaders of the anti-vaccine movement used ‘Stop the Steal’ crusade to advance their own conspiracy theories
https://www.cnn.com/2021/02/04/politics/anti-vaxxers-stop-the-steal-invs/index.html
. CNN, Feb 5, 2021]

The reports also describe the activities of speakers at the rallies, including

*** Del Bigtree,
*** Mikki Willis,
*** Ty and Charlene Bollinger,
*** Alex Jones,
*** Sherri Tenpenny, M.D., and
*** Simone Gold, M.D.

###

Vaccine misinformation field guide available

UNICEF, First Draft, the Yale Institute for Global Health, and PGP (The Public Good Projects) have partnered to create a downloadable, 31-page Vaccine Misinformation Management Guide
https://vaccinemisinformation.guide/
that offers “Guidance for addressing a global infodemic and fostering demand for immunization.”

===========================

Stephen Barrett, M.D.
Consumer Advocate
287 Fearrington Post
Pittsboro, NC 27312

Telephone: (919) 533-6009

http://www.quackwatch.org (health fraud and quackery)
[*/quote*]
« Last Edit: February 13, 2021, 06:30:08 AM by Krik »
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REVOLUTION!

worelia

  • Boltbender
  • Jr. Member
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  • Posts: 555
Re: State lawmaker indicted for stem cell fraud scheme
« Reply #1 on: May 19, 2023, 11:05:03 AM »

Gd eve, kids.

First, let me say that 93 views in 2 years is an impressive sign of google suppressing this site.

Now to the base: how criminals got into parliaments, and what they do there.

Consumer Health Digest #21-05
February 7, 2021
http://www.allaxys.com/~kanzlerzwo/index.php?topic=11972.0

mentioned "Patricia Ashton Derges, 63, of Nixa, Missouri", USA.

Quote:

[*quote*]
Missouri state representative indicted in stem cell scheme

Patricia Ashton Derges, 63, of Nixa, Missouri, has been indicted by a federal grand jury for a scheme in which she made false claims about a supposed stem cell treatment marketed through her three southern Missouri locations of Ozark Valley Medical Clinic, LLC
http://ozarkvalleymedical.com/index.html
and for illegally providing prescription drugs to clients of those clinics. The indictment
https://quackwatch.org/wp-content/uploads/sites/33/2021/02/indictment_2021.pdf
charges her with eight counts of wire fraud related to five of her victims in the fraud scheme from December 2018 to May 2020, 10 counts of distributing oxycodone and Adderall over the internet without valid prescriptions, and two counts of making false statements to federal agents investigating her in May 2020.

The investigation was prompted by her false or misleading statements in April 2020 to a Springfield television station about using stem cells to treat COVID-19. Derges is licensed as an assistant physician in Missouri
https://pr.mo.gov/assistantphysicians.asp#:~:text=Has%20not%20completed%20an%20approved,unless%20when%20such%20three%2Dyear
. In November 2020, she was elected as a state representative in District 140 (Christian County).
[State lawmaker indicted for stem cell fraud scheme, illegally distributing prescription drugs <https://www.justice.gov/usao-wdmo/pr/state-lawmaker-indicted-stem-cell-fraud-scheme-illegally-distributing-prescription>. US Attorney’s Office news release, Feb 1, 2020]

The indictment alleges that Derges:

*** under the name Regenerative Biologics, purchased amniotic fluid allograft from the University of Utah

*** advertised Ozark Valley Medical Clinic as “The LEADER in pain and REGENERATIVE MEDICINE” and marketed her “stem cell” practice through seminars, media interviews, and social media

*** told her audience at an August 2019 meeting that the amniotic fluid she used was a “stem cell shot” and that it contained “mesenchymal stem cells” when, in fact it did not contain any stem cells

*** made similar claims in personal consultations

*** continued to tell her patients and the public that the amniotic fluid allograft contained stem cells even though she had been told that it contained no stem cells

*** administered amniotic fluid to patients whose problems included tissue damage, kidney disease, chronic obstructive pulmonary disease (COPD), Lyme disease, erectile dysfunction, and urinary incontinence

*** claimed in an April 2020 Facebook post that, “This amazing treatment stands to provide a potential cure for COVID-19 patients that is safe and natural.”

*** bought the amniotic fluid allograft for approximately $244 per milliliter and $438 for two milliliters but charged her patients $950 to $1,450 per milliliter

*** obtained from patients approximately $191,815 for amniotic fluid that did not contain stem cells

*** wrote electronic prescriptions for oxycodone and Adderall for patients and transmitted them to pharmacies over the Internet even though she conducted no in-person medical evaluations

A commentary about the case by stem cell biologist Paul Knoepfler offers interesting insights about the larger problem of fake stem cells, how religion comes into play in the marketing of stem cell treatments, and the experimental status of stem cell treatments for COVID-19.
[Knoepfler P. Lawmaker indicted for selling fake stem cells for COVID & more
https://ipscell.com/2021/02/lawmaker-indicted-for-selling-fake-stem-cells-for-covid-more/
. The Niche, Feb 4, 2021]

Derges has pleaded not guilty to all allegations. She continues to operate her clinics and serve in the state legislature.
[Toropin K. Missouri state lawmaker charged with selling fake stem cell treatments and claiming they are a cure for COVID-19
https://www.cnn.com/2021/02/04/us/missouri-lawmaker-fake-covid-19-treatment-trnd/index.html
. CNN, Feb 4, 2021]

She has been removed from the Missouri House’s Health and Mental Health Policy Committee, Professional Registration and Licensing Committee, and Special Committee on Small Business. She has also been asked to resign from the House.
[Kuang J. Missouri house speaker asks lawmaker indicted on medical fraud charges to resign
https://www.kansascity.com/news/politics-government/article248987020.html
. The Kansas City Star, Feb 3, 2021]
[*quote*]



So, this is news of February 2021. But the case still stands. Kaiser Health News published an article, which now is reprinted by the Missouri Independent. There is an armada of embedded links in the article. As is our policy, we say: go there and read the original to get the real picture.

This is the anchor for the story about large-scale crime in the US:

https://missouriindependent.com/2022/03/17/missouri-tried-to-fix-its-doctor-shortage-now-the-fix-may-need-fixing/

[*quote*]
    Health Care
    Legislature

Missouri tried to fix its doctor shortage. Now the fix may need fixing
By: Bram Sable-Smith - March 17, 2022 8:10 am

Missouri State Capitol building in Jefferson City (Getty Images).

This story was originally published by Kaiser Health News.

Missouri state Rep. Tricia Derges is pushing a bill to give assistant physicians like herself a pathway to becoming fully licensed doctors in the state.

Not that Derges — among the highest-profile holders of the assistant physician license created in 2014 to ease a doctor shortage — is the most persuasive advocate right now.

Derges was indicted last year on charges accusing her of selling fake stem-cell treatments, illegally prescribing drugs, and fraudulently receiving COVID relief funds. Derges, who did not respond to multiple messages sent to her and her lawyer, has pleaded not guilty. But she has already been kicked out of the Republican caucus, forced to move her legislative office into a statehouse broom closet, put on a three-year probation for her narcotics license, and denied the ability to run for reelection as a Republican following her indictment. A trial is set for June.
Rep. Patricia Derges, R-Nixa

Her personal tribulations have jeopardized an already contentious solution for states that struggle with gaps in primary health care. Even some early proponents now want to rein in the assistant physician license.

Assistant physicians — sometimes called associate physicians, and not to be confused with physician assistants — are medical school graduates who have not yet completed residency training. Similar licenses also now exist in Arizona, Arkansas, Kansas, and Utah. Virginia is considering adding one, and model legislation is making such licenses easier than ever for other state legislatures to adopt.

Derges’ proposed legislation would allow assistant physicians to become licensed — similar to doctors who have completed a residency — provided an assistant physician has practiced for five years with a collaborating physician, passed a licensure exam, and completed certain training requirements.

Her bill would create a new path for training physicians. Competing legislation aims to scale back the license, though, and cap the number of years assistant physicians can practice until they funnel back into residency programs.

Dr. Keith Frederick, a former state representative and orthopedic surgeon from Rolla, Missouri, proposed the original assistant physician legislation, the first of its kind in the nation.

Nearly every county in Missouri is short of primary care providers, according to the federal Health Services and Resources Administration. It’d take nearly 500 physicians to fill that void, but efforts to get doctors to practice in underserved areas have been “chronically unsuccessful,” Frederick said. At the same time, thousands of medical school graduates who apply for residency programs each year are not accepted — 9,155 applicants did not match to a program in 2021 alone, or about 1 in 5 of the candidates, most coming from international medical schools.

The assistant physician license allows those medical school graduates to practice medicine in Missouri under a collaborative practice agreement with a physician, who is ultimately responsible for the care given, and on the condition that they do so in an underserved area. They can see patients, prescribe drugs, and provide certain treatments, in much the same way as nurse practitioners or physician assistants — so-called midlevel practitioners, both of which have distinct master’s-level training.

Frederick’s bill passed the same year it was introduced, a legislative feat he described as “pretty remarkable.”

The idea did have its detractors at the time. Chief among them was the Missouri Nurses Association, which argued the state’s 12,000 nurse practitioners were better suited to address primary care shortages. The association views the state’s rules for nurse practitioners as among “the most severely restrictive in the nation.”

Nationally, the American Medical Association, American Academy of Family Physicians, and Accreditation Council for Graduate Medical Education also opposed the license.

One initial supporter of the idea was Dr. Jeff Davis, chief medical officer for Scotland County Hospital in rural Memphis, Missouri, and an executive committee member of the Missouri Association of Osteopathic Physicians and Surgeons. Eight years after the law passed, however, Davis has no assistant physicians working with him, even though he said he has several openings that would benefit from them.

The challenge, Davis said, is Medicare will not reimburse for care provided by assistant physicians. Hospitals in rural areas often depend on revenue from that public insurance program for Americans 65 and older. But for hospitals to get paid by Medicare for the work of an assistant physician, Davis said, the assistant physician would have to work under the direct supervision of a physician whose name would be used to submit the bill.

“That doesn’t make much business sense,” Davis said.

Frederick hopes that having more states create an assistant physician license will force the hand of the Centers for Medicare & Medicaid Services to start reimbursing for the work done by those clinicians. The American Legislative Exchange Council adopted model associate physician legislation after Frederick presented the idea at the conservative nonprofit’s summit last year.

Currently, Missouri has 348 active licenses for assistant physicians, including Dr. Trevor Cook, creator of the Association of Medical Doctor Assistant Physicians. Cook graduated in 2014 from the International American University medical school on the Caribbean island of St. Lucia.

“Unfortunately, I was one of those many, many, many, many thousands of doctors that don’t match each year” into a residency program, Cook said.

Cook has practiced at Downtown Urgent Care in St. Louis since 2018, a position he called rewarding. He is supportive of a pathway for assistant physicians to become fully licensed in Missouri, like the one proposed by Derges. As to the indictment, Cook said, one person’s actions are not representative of an entire group of practitioners.

A review of active assistant physician licenses in the state — including Derges’ — found none under current disciplinary action. Two were previously under probation due to prior behavior.

Still, state doctor groups that initially supported the idea now want to cap the number of years someone can hold an assistant physician license, as other states have done. Under current Missouri law, assistant physicians can practice indefinitely.

“As with anything, you find out that people try to game the system and work an angle and get something that wasn’t intended out of something you did in good faith,” Davis said.

Dr. Sterling Ransone, president of the American Academy of Family Physicians, said he already had concerns about the quality of care provided by assistant physicians, citing a 2018 JAMA article that found they had lagging test scores compared with their counterparts in residency programs. He said he’s doubtful about creating an alternative pathway to full physician licensure.

“I would personally have trouble supporting it without a lot more information to verify quality standards,” Ransone said.

The American Medical Association favors a bill in Congress that would increase the number of residency positions in the U.S. by 14,000 over the next seven years.

Dr. Kevin Klauer, CEO of the American Osteopathic Association, didn’t shut the door on a role for assistant physicians but said he was skeptical: “We have to be responsible to make sure that we’ve put all the safeguards in with training and verification and monitoring, so that health care that is delivered by a physician is up to the standards that it should be.”

Frederick called those concerns “purely turf protection” amid what he said is a tremendous health care shortage.

“We have all these people that are highly trained,” Frederick said. “Why would you waste that resource?”

KHN (Kaiser Health News) is a national newsroom that produces in-depth journalism about health issues. Together with Policy Analysis and Polling, KHN is one of the three major operating programs at KFF (Kaiser Family Foundation). KFF is an endowed nonprofit organization providing information on health issues to the nation.
[*/quote*]
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MASS MURDERERS:

Responsible for more than 83 dead: Taylor Winterstein, Edwin Tamasese


http://www.transgallaxys.com/~kanzlerzwo/index.php?topic=11338.msg27786#msg27786
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