Derges convicted of all charges in federal trial

Missouri state Rep. Tricia Derges, R-Nixa, was convicted in a federal trial of COVID-19 and stem cell fraud schemes, as well as illegally distributing prescription drugs.

Derges, 64, yesterday was found guilty by a federal trial jury of 10 counts of wire fraud, 10 counts of distributing drugs over the internet without a valid prescription and two counts of making false statements to a federal law enforcement agent, according to a news release from the office of Teresa Moore, U.S. attorney for the Western District of Missouri. She was convicted of all charges in the case.

"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," Moore said in the release. "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.”

Federal statutes dictate Derges could be subject to a sentence of up to 20 years in federal prison without parole on each of the 10 wire fraud counts and on each of the 10 drug distribution counts, as well as a sentence of up to five years in prison for each of the two false statement counts. A sentencing hearing will be scheduled at a future date.

Derges, a nonprofit leader and health care clinic operator, was indicted early last year, according to past reporting. She operates three for-profit Ozark Valley Medical Clinic locations in Springfield, Ozark and Branson, as well as the nonprofit Lift Up Someone Today Inc., with a medical and dental clinic in Springfield.

The jury found Derges guilty of fraudulently receiving $296,574 in Coronavirus Aid, Relief and Economic Security Act funds out of a nearly $900,000 ask for Lift Up Someone Today, according to the release. However, Lift Up did not provide COVID-19 testing services, and its medical clinic was closed at the beginning of the pandemic until June 2020.

To back the fraud scheme, Derges submitted false documentation indicating Lift Up provided COVID-19 testing. In fact, Ozark Valley Medical Clinic, a separate legal entity, was reimbursed for COVID-19 testing that already had been paid for, according to federal officials.

From December 2018 to May 2020, Derges engaged in a stem cell treatment fraud scheme to the tune of nearly $200,000, according to the release. Ozark Valley Medical Clinic advertised stem cell treatments that actually utilized amniotic fluid that did not contain any stem cells. Four specific victims, who testified during the trial, were identified in the federal indictment.

In violation of the Controlled Substances Act, Derges was convicted of distributing oxycodone and Adderall over the internet without valid prescriptions, according to the release.

Federal officials say Derges is not a physician, but rather is licensed as an assistant physician.

Derges' trial began June 13.

A call to Derges’ House of Representatives phone number was not returned by deadline.

Under Missouri law, Derges is unable to run for reelection because she was found guilty of a felony, according to the Kansas City Star. It's unclear if Derges, whose term ends in 2023, will step down; she previously has declined to resign despite calls from members of her own party.