The founder and CEO of Done Global Inc., Ruthia He and the clinical president, David Brody, have been arrested on charges related to a $100 million scheme involving the illegal distribution of Adderall via telemedicine and healthcare fraud.
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Ruthia He, the founder and CEO of Done Global Inc., arrested in Los Angeles with an initial court appearance scheduled for 1:30 p.m. PDT.
David Brody, the clinical president of Done Health P.C., arrested in San Rafael, California with an initial appearance at 10:30 a.m. PDT. Both face charges for their involvement in the illegal distribution of controlled substances, health care fraud and obstruction of justice.
The scheme involved the distribution of Adderall and other stimulants over the internet. The accused allegedly exploited the COVID-19 pandemic to facilitate the distribution of these controlled substances without legitimate medical purposes.
The operation generated over $100 million in revenue by arranging for the prescription of more than 40 million pills.
Attorney General Merrick B. Garland addressed the situation exploiting the pandemic to profit from addiction, highlighting the Justice Department’s commitment to holding such individuals accountable.
Secretary of Homeland Security Alejandro N. Mayorkas underlined the defendants’ disregard for patient welfare in their pursuit of profit.
Principal Deputy Assistant Attorney General Nicole M. Argentieri said that this case marks the first criminal drug distribution prosecution related to telemedicine by a digital health company.
DEA Administrator Anne Milgram condemned the defendants for prioritizing profit over patient safety.
Done Global Inc. used an internet-based infrastructure to distribute controlled substances. Subscribers were enticed with the promise of easy access to medications in exchange for a monthly fee.
The Done Global platform was designed to limit the information available to prescribers, often mandating prescriptions of stimulants regardless of medical necessity.
The Done Global implemented an “auto-refill” function allowing automatic monthly prescription refills without proper medical oversight.
The Done Global targeted individuals seeking drugs and spent millions on deceptive social media advertisements.
Done Global Inc. allegedly used the pandemic-driven surge in telemedicine to distribute stimulants with minimal oversight.
The indictment highlights fraudulent claims submitted to Medicare, Medicaid and commercial insurers, resulting in over $14 million in unwarranted payments.
The defendants are accused of making false representations to the media to avoid scrutiny and to deceive business partners.
There were deliberate attempts to obstruct justice including deleting documents using encrypted messaging and failing to comply with grand jury subpoenas.
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The scheme contributed to a shortage of Adderall, affecting individuals with legitimate medical needs. The charges carry severe penalties with each defendant facing up to 20 years in prison if convicted on the most serious counts.
Multiple federal agencies including the DEA, HHS-OIG, HSI, and IRS Criminal Investigation were involved in the investigation.
The prosecution is led by officials from the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of California.
The company allegedly took advantage of the relaxed telehealth rules enacted during the pandemic, allowing for easier access to prescriptions without requiring in-person evaluations.
Done Global offered a subscription-based model, where patients paid monthly fees for continuous access to medications.
Initial screenings were limited to 30 minutes, which is insufficient for a ADHD diagnosis. In some cases, prescriptions were issued without any audio or visual interaction with patients.
Prosecutors accuse the company of spending millions on misleading advertisements, promoting easy access to Adderall, which contributed to the misuse and abuse of the medication.
The Centers for Disease Control and Prevention (CDC) warned that up to 50,000 patients could face disruptions in their ADHD treatment due to the shutdown of Done Global’s operations.
The CDC also warned against the dangers of turning to counterfeit medications, which could be laced with harmful substances like fentanyl.
Experts warn that such fraudulent practices could increase stigma around ADHD treatment. This case is the Justice Department’s first criminal drug distribution prosecution related to telemedicine.
The Ryan Haight Online Pharmacy Consumer Protection Act of 2008 requires in-person evaluations before prescribing controlled substances.
Temporary waivers during the pandemic allowed for online-only consultations, a loophole that was exploited in this scheme.
The indictment also includes allegations of fraud against Medicare and Medicaid, with the company reportedly defrauding these programs out of at least $14 million.
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