'Arming America': Couple charged in fraud scheme, ready to kill Democrats in potential 'civil war', FBI says

'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’.

LAKE HAVASU, Ariz. - Federal prosecutors say Mary and Fred Blakley fraudulently marketed ultrasound machines and cancer-treating supplements to patients, but FOX 10 investigator Justin Lum uncovered new allegations and the couple’s criminal history.

Couple charged in fraud scheme

What we know:

If convicted, Mary and Fred Blakley could spend the rest of their lives in prison.

Investigators say the Blakley's clinics charged hundreds of dollars per body scan and the FBI has been investigating this scheme for a few years.

We’ve obtained recent court filings that reveal the couple’s plan to "arm Arizona" for a "civil war".

The backstory:

Arizona isn’t one big desert, just head to Lake Havasu City. Known for its water sports, boating and fishing recreation, located in Mohave County and marked by the London Bridge, it's a popular stop for tourists.

A destination to cool off, but also where Mary Page Smith and her husband found a full-body scan clinic in 2023 recommended by a friend.

"’Hey, you should go check this out. She scanned my carotid. She was able to identify that I have plaque, and she gave me this great drug, this product, and now its totally cleared and I'm fine,’" Smith's friend told her that's what she would find at Health Screenings 4 Life, the company owned by the Blakleys.

Smith is a nurse practitioner herself and says she noticed red flags during her husband’s evaluation.

"She started out by putting the probe on the back of his head and she said, ‘you have a spike in protein in your brain.’ Okay, one, you can't see protein in an ultrasound. Two, you can't really ultrasound people's brains. That's why we have MRIs and CT scans when people have brain things going on. So, you know, I just sat there throughout the whole thing thinking none of this is real," Smith said.

The Charges

What they're saying:

This was more than a year before Mary and her husband, 60-year-old Fred Blakley, were indicted by a federal grand jury in Pennsylvania on several charges including mail and wire fraud conspiracy.

FOX 10 obtained the unsealed indictment that says Blakley never held medical licenses in Arizona.

Prosecutors also say she 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.

"And then she's practicing medicine without a license. That is what went through my head from the very beginning," said Smith.

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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.

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Smith says she witnessed Blakley sell a cream to treat cancer.

"I'm sitting in the lobby while we're waiting for our turn and there was like an older guy came out from a scan and it was her daughter that was the receptionist. She's like, ‘now you have to buy this cream because the scar from your cancer surgery, like you get inflammation in there, you're going to get cancer back’ and sold him like this little thing, a cream for $399," Smith recalled.

Important to note, the Blakley’s Lake Havasu clinic is no longer at the plaza, but its last known address was near Riviera Boulevard and Mesquite Avenue.

Then there’s Fenbendazole, which is not approved for use in humans but is approved by the FDA to treat parasites in animals.

Per investigators, Mary Blakley said the drug could treat breast cancer and blood cancer.

Blakley claimed to have earned a PhD in radiation and nuclear physics in Sweden.

Court documents say she lied about having dual U.S.-Swedish citizenship but in fact, she never earned a degree from the Karolinska Institute and she is only a U.S citizen.

Smith has reported her own complaints to the Arizona Attorney General and has spoken with the FBI.

"I just wanted to get out of there. At which point, I immediately told my husband, like, that was ridiculous. Like nothing she said is valid," Smith said.

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Blakley's home in Lake Havasu

Dig deeper:

Back in January, special agents with FBI Phoenix helped FBI Philadelphia’s healthcare fraud investigation into the Blakleys, arresting the couple at their Lake Havasu home and executing a search warrant here as well as at multiple locations in Arizona and one in Utah.

A neighbor who wants to remain anonymous says she saw several FBI agents seize evidence.

"I woke up to a loud bang about six o’clock in the morning, eventually looked outside, it was the FBI breaking in with a bang," they said.

"The crime scene, FBI van, they were here for roughly eight hours."

When we visited, no one else appeared to be home but Mary Blakley’s Facebook profile shows photos of her and Fred.

There's more

According to the indictment, the Blakleys profited from selling supplements, and delivered products through US mail and commercial carriers to Pennsylvania and other locations.

The alleged scheme to defraud lasted from March 2021 through November 2024, investigators say.

But through the US government’s motion to keep the Blakleys in custody, FOX 10 is learning more about their criminal history.

Dig deeper:

Fred and Mary Blakley 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.

They pleaded guilty and served about five years in prison.

FBI undercover agents began investigating the Blakleys in 2022.

They say 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.

"We're arming Arizona"

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 quote, "as a matter of fact, I’m planning on shooting some humans, so I got pointed top points for them."

In May of 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 feeling 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."