The CEO and head doctor of Done Global, a telehealth company that provides stimulant drugs to patients throughout the United States, have been charged with fraud by federal prosecutors. The charges stem from an alleged $100 million scheme to offer “easy access” to Adderall and other stimulants.
According to a news release from the Department of Justice, Ruthia He, the founder of Done Global, and David Brody, the company’s clinical president, were arrested on Thursday in Los Angeles and San Rafael, California, respectively. The arrests were made in connection with allegations that they were involved in the distribution of Adderall via the internet, submitted false and fraudulent claims for reimbursements, and obstructed justice.
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According to Principal Deputy Assistant Attorney General Nicole M. Argentieri, who oversees the Justice Department’s Criminal Division, the digital health company arranged for the prescription of more than 40 million pills, resulting in revenue of over $100 million. These indictments mark the first criminal drug distribution prosecutions related to telemedicine prescribing.
In a statement, U.S. Attorney General Merrick Garland pointed out that the medications prescribed in question had no valid medical purpose.
According to court records, He and Brody have been accused of prescribing Adderall and other highly addictive medicines to patients who subscribed to the company’s monthly plan. The allegations state that they targeted individuals looking for drugs with misleading advertisements. Moreover, they are also accused of designing the company’s platform in such a way that it made it easier for users to access Adderall and other stimulants. This was done by restricting the information available to Done prescribers, instructing them to prescribe these medications even if they were not necessary, and mandating that initial consultations be limited to under 30 minutes.
According to the Justice Department, the conspiracy’s aim was for the defendants to unlawfully benefit themselves by boosting monthly subscription revenue, consequently increasing the company’s worth. The indictment states that this was achieved through various means.
According to the statement, Done Global has been accused of prescribing ADHD medications to patients who did not need them. The platform then allegedly set up an “auto-refill” option for subscribers who purchased the monthly subscription, enabling them to opt for an automated refill request to be generated every month.
According to court records, Done was accused of attempting to use the compensation structure as a means to discourage patients from seeking follow-up medical care. The allegations stated that Done refused to compensate prescribers for any medical visits, telemedicine consultations, or time spent caring for patients after their initial consultation. Instead, the compensation was solely based on the number of patients who received prescriptions.
According to court documents, despite being informed of the ease of access to stimulants and the fact that some members had died due to overdosing, He and Brody continued with the company’s practices. The executives were also accused of conspiring to deceive pharmacies, as well as Medicare, Medicaid, and other insurance providers.
On Thursday afternoon, the Centers for Disease Control and Prevention released a warning alert for public health officials, clinicians, patients, their families and caregivers. The alert stated that there could be a potential disruption caused by the indictment of a large telehealth company, which could affect around 30,000 to 50,000 patients aged 18 years and older across all 50 states in the US.
According to the company’s website, Done was launched two years ago as a passion project to assist friends, coworkers, and loved ones who were encountering difficulties in accessing mental health care.
According to the website, individuals can access psychiatric board-certified medical professionals and other helpful resources for managing ADHD by paying a monthly fee of $79. To begin a membership with the company, the cost is $199.
CBS News reached out to Done Global for comment but has not received a response yet. Although the website is still up and running, it remains unclear whether the company will continue to operate. The Justice Department has encouraged individuals who have been affected by Done’s alleged illegal activities, including patients and medical professionals, to report the conduct to the DEA hotline.
The possibility of serving a maximum sentence of 20 years in prison looms over both him and Brody.
