US investigators have apprehended the founder and CEO of a telehealth company accused of orchestrating a $100 million scheme to illicitly distribute over 40 million pills of Adderall and other controlled substances. According to US Attorney General Merrick Garland, Done CEO Ruthia He colluded with the company’s clinical president, David Brody, to offer easy access to Adderall and stimulants without legitimate medical grounds. Taking advantage of relaxed telemedicine regulations during the pandemic, Done Global, a San Francisco startup, surged in popularity by providing Adderall through a monthly subscription service.
Ms. He was arrested in Los Angeles while Dr. Brody was apprehended in San Rafael, California, and both are facing charges of distributing controlled substances with the possibility of up to 20 years in prison if convicted. Among other accusations, the pair are alleged to have engaged in deceptive advertising on social media, manipulated subscription prices to enrich themselves illegally, limited vital information for prescribers, and disregarded medical qualifications for patient prescriptions. Despite online warnings about the abuse potential and risks of Adderall, including overdoses and fatalities, the defendants allegedly continued their unlawful operations.
This significant case marks the Justice Department’s pioneering drug distribution prosecutions in connection with telemedicine prescribing through a digital health company. The accused duo is also charged with defrauding government healthcare aid programs like Medicare and Medicaid, as well as pharmacies, out of at least $14 million. Moreover, they are believed to have conspired to obstruct justice by erasing crucial documents and emails in an attempt to cover up their illicit activities.
