Stem Cell Fraud Scheme
- Conviction: 7 counts of wire fraud.
- Claims:
- From 2018–2020, she sold amniotic fluid as a stem cell treatment.
- Marketed it through seminars, social media, and consultations as containing mesenchymal stem cells.
- In reality, the amniotic fluid from the University of Utah was “acellular” (no stem cells at all).
- Patients paid nearly $200,000 total for this treatment.
Dr. Patricia Derges’ Response:
From 2018 to 2020, I provided regenerative medical treatments. What the government later claimed about those treatments is fundamentally inaccurate.
Understanding the Science
First, an important distinction:
“Stem cells” and “mesenchymal stem cells (MSCs) are not the same thing.
I have performed actual stem cell procedures since 2017. These involve extracting stem cells from a patient’s own bone marrow or fat, processing them, and reinjecting them. This is not an amniotic fluid treatment, and I was one of very few physicians in my region performing these procedures.
Amniotic fluid treatments are different. They are part of regenerative medicine and are widely understood in the medical community as activating and mobilizing the body’s own stem cells and MSCs through signaling mechanisms. Expert testimony at trial confirmed this understanding.
What I Did — and Did Not — Claim
I never once represented amniotic fluid injections as containing live stem cells.
My seminar materials explicitly state that there are no live stem cells in amniotic fluid, and recordings of those seminars confirm this. I gave public seminars precisely because many other clinics were falsely advertising “stem cell shots,” and I wanted to correct that misinformation. The government ignored those clinics entirely.
How I Was Trained
I was trained on amniotic fluid treatments by the University of Utah’s distributor. Both I and another physician were taught that the product involved mesenchymal stem cell activity. This understanding was reinforced by the university’s own brochures, website, product inserts, lab results, and COVID research trials — all of which routinely referred to the product as stem cell–related, cellular, or progenitor-based.
At no point did the University describe the product as “acellular.”
The Sudden Shift
Only after my COVID treatment success was publicly broadcast in early April 2020 did the term “acellular” suddenly appear — following a visit by the prosecutor to the University of Utah.
Within days, the university quietly altered its marketing materials and research language to add that term. Some government COVID research records were also modified, and my treatment was later removed entirely from a clinical trial. Months later, the university quietly removed the “acellular” language again.
A key university witness later confirmed under oath that these changes occurred — and that the university was fully aware of criminal conduct by its distributor, who is now serving a life sentence for unrelated crimes.
Why This Matters
Independent experts later identified potential violations of federal organ-transplant law involving the university’s handling and sale of amniotic products. I brought this information, with supporting evidence, to the prosecutor and offered to assist in an investigation.
No investigation occurred.
Instead, the focus shifted to me.
The Patients
Every patient treated either improved or was satisfied with their care. One patient withdrew before trial, stating they were happy with the treatment. Others testified to improvement. Government agents later visited patients’ homes, misrepresented my credentials, and attempted to pressure them into becoming witnesses.
Despite months of effort, very few patients sought reimbursement — a fact inconsistent with actual fraud cases. When that failed, the government attempted to list all treated patients for restitution regardless of their satisfaction.
The Financial Reality
I charged 80% less than comparable clinics so average patients could afford treatment. Any revenue went directly back into providing free and low-cost care through my mission clinics. I never took a paycheck.
The jury was never told this.
Closing Note
This case was not about patient harm.
It was about misrepresented science, altered records, and a narrative constructed after the fact.
The documents exist.
The recordings exist.
The timeline matters.
This documentary exists so the public can see what the official record does not explain.