Feds indict Christian County assistant physician, legislator for stem cell fraud scheme, distribution of prescription drugs

SPRINGFIELD, Mo. (Edited News Release / KY3) – The US Attorney’s Office filed charges of fraud against an Ozarks assistant physician and Christian County legislator for a fraud scheme in which she made false allegations about alleged marketed stem cell treatment. at your clinic.

Federal authorities have accused Patricia “Tricia” Derges, 63, of Nixa of 20 charges. Christian County voters elected Derges to the Missouri House of Representatives in August 2020. She operates three locations at the Ozark Valley Medical Clinic in Springfield, Ozark and Branson. She was awarded the Community Foundation of the Ozarks as “Humanitarian of the Year” in 2018.

“This defendant has abused his privileged position to get rich through deception,” said US Attorney Tim Garrison. “The prosecution alleges that she lied to her patients and federal agents. As an elected official and provider of health services, she deserves to be considered a high standard. This accusation by the grand jury exposes her mistake and holds her accountable for her actions. “

Patricia “Tricia” Ashton Derges, 63, of Nixa, Missouri, was charged in a 20-count indictment returned with the seal by a federal grand jury in Springfield, Missouri. The indictment was opened and made public today after Derges’ self-surrender and initial court appearance.

This investigation began as a result of false or misleading statements made by Derges in April 2020 to a Springfield television station about his potential use of stem cells to treat COVID-19. Derges was elected in November 2020 as the representative of the state of Missouri in District 140 (Christian County). Derges, who is not a physician but is licensed as an attending physician, operates three locations at the Ozark Valley Medical Clinic in Springfield, Ozark and Branson, Mo.

“We put our hope and trust in health care providers and government officials,” said Timothy Langan, special agent in charge of the FBI in Kansas City. “The defendant’s actions are not only a betrayal of that trust, but his actions erode the core of our trust in a system we trust. Derges vowed not to harm him as a health professional and was elected to serve the people, not to deceive him. She used her position for personal gain and undermined public confidence. “

“Medical professionals who consciously abuse their power by prescribing drugs, without ensuring that they are for legitimate medical purposes, take advantage of public trust,” said Inez Davis, St. Louis Division diversion program manager for the Drug Enforcement Administration . “With the support of our oversight partners, the DEA will investigate to the maximum our ability to ensure that these individuals are prevented from risking lives in our communities.”

“Em. Derges knowingly provided false information and made false claims about the medical treatment she was providing, and these falsehoods could have significant consequences for the patients she attended,” said Curt L. Muller, Special Agent Responsible for the Office of the Inspector General US Department of Health and Human Services. “We will continue to hold individuals who abuse their positions of power responsible for attacking innocent individuals.”

Derges contacted KY3 in March asking the broadcaster to do a story about his treatment, but the newsroom refused to do the story without further information.

Electronic fraud scheme

The federal prosecution charges Derges with eight counts of electronic fraud related to five specific victims (identified by their initials). These five victims were among those who lost a total of nearly $ 200,000 in the fraud scheme, which lasted from December 2018 to May 2020.

During that time, Derges obtained exclusively amniotic fluid, which she marketed under the name of Regenerative Biologics, from the University of Utah. Derges announced Ozark Valley Medical Clinic as a “Leader in … Regenerative Medicine”, including stem cells, and publicized his “stem cell” practice through seminars, media interviews and social media. The federal prosecution cites an August 2019 seminar in which Derges told his audience that the amniotic fluid she used in her stem cell practice was an “injection of stem cells” and that it contained “mesenchymal stem cells”. According to the prosecution, Derges made similar claims in personal consultations.

In fact, however, the amniotic fluid that Derges administered to his patients did not contain mesenchymal stem cells or any other stem cells. The amniotic fluid she obtained from the University of Utah was a sterile filtered amniotic allograft (a tissue graft composed of human amniotic membrane and components of the amniotic fluid derived from placental tissue). The amniotic fluid allograft was “acellular”, which means that it contained no cells, including stem cells.

Despite being told that the University of Utah amniotic fluid allograft was “acellular” and did not contain mesenchymal stem cells, Derges reportedly continued to tell his patients and the public that the amniotic fluid allograft contained stem cells.

Derges administered amniotic fluid, which she falsely claimed to contain stem cells, to patients suffering from, among other things, tissue damage, kidney disease, chronic obstructive pulmonary disease (COPD), Lyme disease, erectile dysfunction and urinary incontinence. On April 11, 2020, the Facebook post Derges wrote about the amniotic fluid allograft: “This incredible treatment offers a potential cure for patients with COVID-19 that is safe and natural.”

The University of Utah sold its amniotic fluid allograft to Derges for approximately $ 244 per milliliter and $ 438 for two milliliters. Derges charged his patients $ 950 to $ 1,450 per milliliter. In total, Derges’ patients paid her approximately $ 191,815 for the amniotic fluid that did not contain stem cells.

The Controlled Substances Act

The federal prosecution charges Derges with 10 counts of distributing Oxycodone and Adderall over the Internet without valid prescriptions.

The prosecution claims that Derges, without conducting in-person medical assessments of patients, wrote electronic prescriptions for oxycodone and Adderall for patients and transmitted them to pharmacies over the internet.

Since none of the assistant doctors Derges employed at the Ozark Valley Medical Clinic could prescribe Schedule II controlled substances, the prosecution says it was standard practice for assistant doctors to see a patient and then communicate to Derges the controlled substances they wanted her to do. prescribe to your patients. Derges, reportedly without conducting a face-to-face medical assessment of patients, wrote electronic prescriptions for patients and transmitted the prescriptions over the Internet to pharmacies.

False statements

The federal prosecution charges Derges with two counts of making false statements to federal agents investigating the case in May 2020.

Derges reportedly told agents that the amniotic fluid allograft she used in her practice contained mesenchymal stem cells, which she knew were false. Derges also reportedly told federal agents that she did not treat a patient with urinary incontinence with an allograft of amniotic fluid, which she knew was false.

The charges contained in this charge are simply charges, not evidence of guilt. The evidence supporting the charges must be presented to a federal jury, whose duty is to determine guilt or innocence.

Assistant Physician

Derges is not a doctor, but he is licensed as an attending physician. An attending physician is a mid-level medical professional in the state of Missouri. Under Missouri law, medical school graduates who were not accepted into a residency program, but passed Step 1 and Step 2 of the United States Medical Licensing Exam, can apply to become a assistant physician. State law requires that attending physicians practice under a collaborative practice agreement with a licensed physician.

Derges obtained her medical degree from the Caribbean Medical University of Curacao in May 2014, but was not accepted into a graduate residency program. Derges was licensed as an assistant physician by the state of Missouri on September 8, 2017.

This case is being processed by the US Assistant Prosecutor, Shannon Kempf. It was investigated by the FBI, Health and Human Services – Office of the Inspector General and the DEA.

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