DES MOINES—Iowa Attorney General Brenna Bird today announced a settlement with Michael Pavey, an executive of an Omaha-based stem cell company. The settlement resolves allegations Pavey tricked Iowans by marketing and selling them unproven and dangerous stem cell treatments.

In Iowa’s lawsuit against the company and its executives, Iowa accused Pavey of wrongfully promoting his company’s stem cell treatments as cures for a range of health disorders, including COPD, joint pain, Alzheimer’s disease, and even aging. The company sometimes referred to their fake treatments as “regenerative medicine.” These fake treatments were dangerous and alleged to have made Iowans sick. The lawsuit also alleged that Pavey specifically targeted older Iowans and created a misleading testimonial video. This video was used to mislead Iowans in sales seminars that touted the effectiveness of the treatments.

“This is a reminder for anyone caught taking advantage of Iowans: you will be held accountable,” said Attorney General Bird. “It is unacceptable for anyone to come into our state and sell snake oil to sick Iowans who are trying to get better. My office is holding con artists to the law.”

The settlement permanently bans Pavey from marketing or selling stem cell treatments in Iowa. He is required to pay approximately $240,000 in restitution to Iowans, which was the total amount he received from marketing and selling the alleged fake treatments. Pavey will also pay $6,000 to Iowa’s consumer education and litigation fund.

Tips for Iowans to avoid healthcare scams:

• Consult with legitimate health care professionals before considering an unusual or even new health product or treatment.
• Be suspicious of dramatic and surefire claims that a product is a “scientific breakthrough,” “secret,” “miraculous,” “quick & easy,” or “ancient.” Real medical breakthroughs will not be announced for the first time in paid ads.
• Be skeptical of claims that one product cures a wide range of diseases and/or that there are no downsides, risks, or adverse reactions to using the product.
• Beware of “quick fixes” for conditions, even with legitimate products.
• Don’t put much weight on testimonials, even from celebrities. Many worthless products have been promoted through glowing – but misleading – testimonials.
• Don’t take chances with your health, and do not abandon proven treatments in favor of untested approaches.

Any Iowan who was a victim of these scam stem cell treatments should contact the Iowa Attorney General’s office at 1-888-777-4590 or online at https://www.iowaattorneygeneral.gov/for-consumers/file-a-consumer-complaint.

Read the full settlement here.

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For More Information:

Alyssa Brouillet | Communications Director

515-823-9112

alyssa.brouillet@ag.iowa.gov