Lake Havasu City couple pleads guilty to fraud charges as part of deal: DOJ

AZ couple accused of fraud accept plea deal

A Lake Havasu City couple accused of running fake body scan clinics have pleaded guilty as part of a deal.

PHOENIX - We have learned that a Lake Havasu City couple who was facing federal fraud and conspiracy charges has pleaded guilty to some of the charges as part of a plea agreement.

The backstory:

We first reported on accusations made against Fred and Mary Blakley in March 2025.

'Arming America': Couple charged in fraud, FBI reports

The FBI says a Lake Havasu couple’s fraud scheme extended beyond their clinics as FOX 10 Investigator Justin Lum uncovers disturbing details about the Blakley’s alleged plan for ‘civil war.'

At the time, we reported that Blakley's clinics allegedly charged hundreds of dollars per body scan, and the FBI has been investigating the alleged scheme for a few years.

The two were indicted by a federal grand jury in Pennsylvania on several charges including mail and wire fraud conspiracy. According to an unsealed indictment we obtained, Mary never held medical licenses in Arizona, but she allegedly told patients her "proprietary smart chip technology" enhanced her ultrasound machine, "falsely and fraudulently" claiming it could detect a variety of human diseases, illnesses, and conditions, including blood cancers.

Court documents reveal "Dr. Mary" prescribed supplements, creams and even veterinary products to customers. She claimed the product Aetheion could pull cancer cells out of the patient’s skin. Aetheion has never been approved by the FDA as a drug, instead it’s used as a skin moisturizer. 

Investigators also alleged that Mary claimed a drug named Fenbendazole could treat breast cancer and blood cancer. The drug is not approved for use in humans: it is approved by the FDA to treat parasites in animals.

Dig deeper:

FBI officials also said that Fred collected, built and modified firearms despite being a prohibited possessor as a felon. Court documents say he maintained a workshop on his pastor’s property where an eventual search led to the recovery of 30 firearms and 30,000 rounds of ammunition.

Undercover recordings reveal what prosecutors call Fred’s desire to kill people with his illegal firearms, especially anyone who disagreed with him politically or came to arrest him.

During one conversation in August 2022, Fred says "we’re gonna have to go to war with our government…" he goes on to say, "well, they’re trying to start a civil war. That’s their game plan right now… you better arm up good. I’ve got thousands of rounds of ammunition, and I’m ready to rock."

In the same day, a recording of Fred says, "as a matter of fact, I’m planning on shooting some humans, so I got pointed top points for them."

In May 2023, Mary Blakley is recorded telling an undercover agent that Fred and their pastor were making thousands of guns, saying "we’re arming Arizona."

Later, Mary is recorded saying they’re "making guns for the world" and "they’re arming America."

Other conversations show Fred’s feelings on the Democratic Party, telling the undercover that every bullet he owns "has a D on it" and goes onto say quote "my anger is so immense towards these people, I mean I’d just kill ‘em without any thought of remorse." 

What We Know Now:

Per documents we received that are related to the plea agreements, both Fred and Mary agree to plead guilty to conspiracy to commit mail and wire fraud, as well as conspiracy to defraud the United States and violate the Food, Drug and Cosmetic Act.

Separately, Fred also agrees to plead guilty to accusations that he is in possession of firearms despite being a felon. Per our initial report, both Fred and Mary were arrested in 1997, charged in Nevada with conspiracy to possess with intent to manufacture methamphetamine. They violated pretrial release and later they were found and arrested in Minnesota. Both eventually pleaded guilty, and served about five years in prison. 

According to the plea agreement, Fred could serve up to 40 years behind bars, followed by three years of supervised release, a fine of $750,000, a special assessment of $100, as well as full restitution and forfeiture of any real or personal property that constituted or derived from proceeds that can be traced to the criminal counts that Fred pleaded guilty to.

As for Mary, her plea agreement involves a maximum of 25 years behind bars, followed by three years of supervised release, along with a fine of $500,000, a special assessment of $200, full restitution and forfeiture of any real or personal property that constituted or derived from proceeds that can be traced to the criminal counts that she pleaded guilty to.

Per their respective agreements, both Fred and Mary agreed to forfeit $2,036,736 in connection with the charges they agreed to plead guilty to.

What's next:

Per officials with the U.S. Justice Department, the Blakleys are scheduled to be sentenced in April 2026.