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Texas Stem Cell Fraud

By KRWG News

Texas – A former Fort Worth resident and a Brownsville man have been indicted on federal fraud charges for selling unapproved stem-cell treatments to people suffering from Lou Gehrig's disease, muscular dystrophy and cancer.

Larry Stowe has been the subject of investigation by the CBS-TV news show 60 Minutes. Francisco Morales, who has dual U.S. and Mexican citizenship, allegedly ran the Rio Valley Medical Clinic in Brownsville though he was not licensed to practice medicine in the United States, according to the indictment filed in federal court in Houston.

Morales pleaded not guilty to a variety of charges Friday including mail fraud and conspiracy. Stowe surrendered to a federal magistrate in Chicago on Jan. 6, according to the Fort Worth Star-Telegram (http://bit.ly/wPcadA). He could not be reached for comment.

Copyright 2012 The Associated Press.