In a case already marked by heartbreak and legal scrutiny, the owner of a Michigan wellness facility is now facing serious federal health care fraud allegations tied to operations that preceded a tragic incident in which a 5-year-old boy lost his life inside a hyperbaric oxygen chamber.
New Charges Compound Ongoing Legal Battles
Tamela (Tami) Peterson, 59, of Brighton — previously identified as the owner and CEO of The Oxford Center locations in Troy and Brighton — was arraigned on nine felony counts of health care fraud and false claims on January 20, 2026, in 53rd District Court in Howell, Michigan. Prosecutors allege that Peterson knowingly submitted fraudulent billing claims to insurers for services that were either not provided or improperly documented. Each count carries a possible penalty of up to four years in prison and fines of up to $50,000.
The charges stem from an investigation by the Michigan Attorney General’s office that began in September 2022 following complaints from former patients and medical providers about questionable billing practices at The Oxford Center’s facilities.
Attorney General Dana Nessel emphasized the broader implications of such fraud: it not only harms patients and legitimate health care providers but also ultimately drives up costs for medical insurance and undermines public trust in health services.
Connection to a Fatal Incident
These developments unfold against the backdrop of a devastating event at The Oxford Center in Troy on January 31, 2025. On that day, 5-year-old Thomas Cooper was undergoing hyperbaric oxygen therapy — a treatment often offered at alternative health and wellness facilities — when the chamber erupted in flames and exploded. Thomas died in the incident, and his mother suffered serious injuries during her efforts to rescue him.
Michigan prosecutors have charged Peterson and three other facility staff members — safety manager Jeffrey Mosteller, primary management assistant Gary Marken, and chamber operator Aleta Moffitt — in connection with the explosion.
- Peterson, Mosteller, and Marken face second-degree murder charges, or alternatively involuntary manslaughter.
- Moffitt is charged with involuntary manslaughter and allegedly falsifying medical records.
A preliminary hearing to determine whether the case should proceed to trial was recently extended as a judge reviews the evidence presented.
Broader Safety and Industry Implications
The tragic explosion highlighted significant questions about the regulation and safety of hyperbaric oxygen therapy equipment. These chambers operate under high-pressure, high-oxygen conditions — an environment that can be extremely flammable if safety protocols are not rigorously followed. Independent reviews of past incidents have shown that fires in hyperbaric chambers are often fatal and underscore the importance of strict maintenance and operational standards.
In 2025, the Cooper family also filed a civil lawsuit seeking $100 million in damages from multiple defendants, including the chamber manufacturers and facility operators, alleging gross negligence and reckless disregard for safety standards.
What Happens Next
Peterson is scheduled to return to court later this month for a probable cause hearing, with a preliminary examination set for early February 2026. If convicted on the health care fraud charges, she could face substantial prison time in addition to the ongoing criminal liability tied to the fatal hyperbaric chamber incident.
As the legal proceedings move forward, the case continues to raise awareness of the risks posed by unregulated use of complex medical devices in alternative health settings and the potential consequences when proper oversight — both operational and financial — is absent.