In a decisive move by federal authorities, Ruthia He, founder and CEO of Done Global Inc., and David Brody, clinical president of Done Health P.C., were arrested today for their involvement in a wide-ranging scheme to unlawfully distribute Adderall online, engage in healthcare fraud, and obstruct justice. The two executives are accused of exploiting the COVID-19 pandemic to amass over $100 million through fraudulent activities that undermined public health and safety.
Arrests and Initial Court Appearances
Ruthia He was detained in Los Angeles and is set to appear in court at 1:30 p.m. PDT. David Brody, arrested in San Rafael, California, will make his initial court appearance at 10:30 a.m. PDT in San Francisco. Their arrests signify a significant federal crackdown on fraudulent telemedicine practices that have proliferated during the pandemic.
Allegations and Scheme Details
The indictment alleges that He and Brody devised a scheme to distribute Adderall and other stimulants without legitimate medical purposes. Through their digital health platform, they allegedly targeted drug seekers, investing millions in deceptive social media advertisements to attract subscribers who paid a monthly fee for easy access to these medications. The scheme was designed to maximize company profits by circumventing medical standards and ethical guidelines.
Attorney General Merrick B. Garland condemned the defendants’ actions, highlighting their exploitation of the pandemic and misuse of technology for profit. Garland stated, “Those seeking to profit from addiction by illegally distributing controlled substances online should know that their crimes cannot be concealed, and the Justice Department will hold them accountable.” Homeland Security Secretary Alejandro N. Mayorkas emphasized the betrayal of medical ethics, noting that the defendants prioritized profits over patient safety.
Adderall Distribution Scheme: Criminal Charges and Fraudulent Activities
According to court documents, He and Brody orchestrated a conspiracy to distribute over 40 million Adderall pills, significantly inflating the company’s revenue. Done Global’s platform allegedly streamlined the prescription process, minimizing necessary medical evaluations. Prescribers were reportedly instructed to approve Adderall prescriptions even when not medically justified, and an “auto-refill” feature ensured continuous drug distribution without proper follow-ups.
Principal Deputy Assistant Attorney General Nicole M. Argentieri underscored the unprecedented nature of these charges, marking the first criminal drug distribution prosecution related to telemedicine. The indictment further alleges that He and Brody defrauded Medicare, Medicaid, and commercial insurers by falsely representing Done’s Adderall prescription practices, causing these entities to dispense and cover the costs of the drugs based on fraudulent claims.
Impact and Enforcement Actions
The scheme caused significant harm, exacerbating the national shortage of Adderall and impacting patients with legitimate medical needs. DEA Administrator Anne Milgram highlighted that Done Global prescribed ADHD medications unnecessarily, leading to addiction, abuse, and overdoses. “The DEA will continue to hold accountable anyone, including company executives, who use telehealth platforms to prioritize profit over patient safety,” Milgram asserted.
HHS Inspector General Christi A. Grimm stressed the importance of legal compliance in telemedicine, warning that digital innovations must not facilitate illegal activities. “We will continue working with our law enforcement partners to protect federal healthcare program enrollees, ensuring strict adherence to legal requirements for prescribing stimulants and other medications,” Grimm stated. Katrina W. Berger, Executive Associate Director of Homeland Security Investigations (HSI), emphasized the wider implications of healthcare fraud on the nation’s systems and economy.
Obstruction of Justice
The indictment also accuses He and Brody of obstructing justice by deleting documents, using encrypted messaging platforms, and failing to comply with federal subpoenas. These actions were allegedly taken to conceal the conspiracy and avoid governmental scrutiny, further complicating the legal landscape they now face.
Legal Proceedings and Potential Penalties
If convicted, He and Brody face severe penalties, including up to 20 years in prison for the conspiracy and distribution charges. The investigation is led by the DEA, HHS-OIG, HSI, and IRS Criminal Investigation, with prosecution by the Criminal Division’s Fraud Section and the Northern District of California’s U.S. Attorney’s Office.
Ongoing Efforts Against Healthcare Fraud
This case is part of a broader initiative by the Justice Department’s Health Care Fraud Strike Force Program, which has charged over 5,400 defendants since 2007, recovering billions in fraudulent claims. The Centers for Medicare & Medicaid Services continue to collaborate with federal agencies to ensure accountability and protect healthcare program integrity.
Conclusion
As digital health services become more prevalent, the arrests of He and Brody for their involvement in the illegal distribution of Adderall serve as a stark reminder of the potential for abuse within telemedicine. Federal authorities remain vigilant in their efforts to combat healthcare fraud involving Adderall and ensure that technological advancements do not come at the cost of patient safety and public health. This case underscores the critical need for stringent oversight and adherence to medical ethics in the rapidly evolving digital health landscape.
