Stockton Woman Indicted for PIBCOA Franchise Fraud Scheme

ST. PAUL, Minn. – A Stockton woman has been indicted for mail fraud, wire fraud, and money laundering after defrauding business owners of nearly $1 million through a multi-year sophisticated fraud scheme, announced U.S. Attorney Andrew M. Luger.

According to court documents, Tammy Schultz Wadsworth, 62, is the founder and owner of the Pain, Injury and Brain Centers of America (“PIBCOA”), a national franchise organization headquartered at Wadsworth’s residence, that purports to provide a microcurrent therapy called A.I. Myoneurvascular Therapy, to treat virtually any disease or condition, including Lupus, Crohn’s Disease, Depression, Infertility, Parkinson’s Disease, Alzheimer’s, Multiple Sclerosis, and Autism. Wadsworth trained franchise participants on use of PIBCOA’s equipment and treatment and claimed that the devices could treat the specific diseases themselves, and not merely the underlying conditions.  Wadsworth also promised the franchise owners a “great source of revenue” in return for their franchise investments. In reliance on Wadsworth’s representations, the franchise owners paid Wadsworth approximately $60,000 to $250,000 each to open PIBCOA franchises.

As alleged, from May 2017 through January 2024, Wadsworth trained franchise participants on the use of the Myoneurvascular Therapy equipment and treatment, while claiming the devices treated the specific diseases themselves. On the contrary, the treatment was not only unsuccessful in treating the diseases as promised by Wadsworth, it caused additional injuries such as burns, scars, and severe nausea to the patients and franchise owners.

In total, Wadsworth knowingly and willfully obtained $950,579.88 from PIBCOA franchise owners, and then attempted to conceal her scheme by laundering significant portions of the money she fraudulently obtained.

The indictment charges Wadsworth with one count of mail fraud, one count of wire fraud, and one count of money laundering. She made her initial appearance today in U.S. District Court before Magistrate Judge David T. Schultz.

This case is the result of an investigation conducted by the U.S. Food and Drug Administration – Criminal Investigations with assistance from the Winona County Sheriff’s Office.

Assistant U.S. Attorney Chelsea A. Walcker is prosecuting the case.

An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.