Missouri lawmaker found guilty in medical fraud scheme involving fake stem cells

A federal trial jury on Tuesday convicted Missouri state Rep. Tricia Derges of multiple fraud charges, including making false claims about fake stem cell treatments at her medical clinics in southwest Missouri.

Bookending a two-week trial in Springfield, Derges, a Nixa Republican, was convicted of 22 counts of wire fraud, illegal distribution of Oxycodone and Adderall and making false statements to investigators, according to the U.S. Attorney’s Office.

Derges held the unusual license of assistant physician at several medical clinics across southern Missouri. She was elected to the Missouri General Assembly in November 2020 and represents Christian County.

“This is an elected official who stole money from the public, a purported humanitarian who cheated and lied to her patients, and a medical professional who illegally distributed drugs,” U.S. Attorney Teresa Moore said in a statement.

“She violated her position of trust to selfishly enrich herself at the expense of others. But a jury of her peers, in a unanimous verdict, saw through her smokescreen of excuses and ridiculous claims, and now she will be held accountable for her criminal behavior.”

A jury found Derges guilty of illegally receiving $900,000 in federal COVID-19 funds for services that were not performed or for a clinic that was closed during the pandemic. Derges was also convicted of seven counts of wire fraud for marketing amniotic fluid as a COVID-19 treatment by claiming that she was giving patients stem cell treatments. The fake stem cell scheme lasted from December 2018 to May 2020, according to the U.S. Attorney’s Office.

Derges distributed Oxycodone and Adderall over the internet to patients without valid prescriptions, the jury found. And the jury found her guilty of falsely telling the federal agents investigating the case that the COVID-19 treatments contained stem cells.

Judge Brian Wimes allowed Derges to remain out on bond before her sentencing, but she had to give up her medical licenses and passport, the Springfield News-Leader reported. She is also barred from entering healthcare facilities except as a patient and from teaching or speaking publicly about stem cells, the newspaper reported.

Derges, whose term ends in 2023, had maintained her innocence throughout the trial and refused to vacate her seat in the Missouri House of Representatives. Because she was found guilty of a felony, Derges will be unable to run for re-election under Missouri law.

Earlier this year, the Missouri Republican Party refused to accept her filing fee to run for re-election.

Al Watkins, Derges’ attorney, in a brief text to a reporter said, “Lady Justice has spoken.”