Nearly a month after its CEO and its president of a $100 million drug fraud scheme, Done Global, a digital drug distribution company in San Francisco was indicted by a federal grand jury for the illegal distribution of the stimulant Adderall over the internet.
Prosecutors said the firm conspired to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants, and conspired to obstruct justice. A Florida medical practice was also charged in connection with its alleged participation in the scheme to illegally distribute Adderall.
On Nov.18, a federal jury in San Francisco convicted Ruthia He, the founder and CEO of Done, a California-based digital health company, and David Brody, its clinical president, for their roles in a years-long scheme to illegally distribute Adderall over the internet and conspire to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants. Ruthia He was also convicted of conspiring to obstruct justice.
Prosecutors said the two company officers carried out “a $100 million scheme to unlawfully provide easy online access to Adderall and other stimulants by targeting drug seekers, engaging in deceptive advertising, and putting profits above patient care.”
On Dec. 16, the Department of Justice charged the company itself with “exploiting telehealth to provide unfettered access to over 40 million Adderall pills.”
“Instead of leveraging technology to improve patient access to care and enhance communications, Done Global saw it as a way to boost profit,” said U.S. Attorney Craig H. Missakian. “We will vigorously pursue companies that engage in this kind of fraud and put patients at risk.”
“Done Global used lies and deceit to carry out a sophisticated and wide-ranging telehealth fraud scheme, obtaining over $100 million in the process,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “From feeding addiction to stealing public funds, rampant health care fraud victimizes our citizens and must be stopped.”
“Prescribing controlled substances without proper medical oversight, as alleged, endangers patients and erodes trust in our health care system,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Running a sham operation to exploit federal programs and funnel taxpayer dollars into unlawful stimulant distribution is a blatant abuse.”
Special Agent in Charge Harry T. Chavis of IRS Criminal Investigation New York called the Done Global scheme “a brazen scheme of staggering proportions while also putting individual lives at risk.”
According to court documents, Done Global Inc., a California company, allegedly identified itself as a “digital health company,” which operated on a subscription-based model where individuals paid a monthly fee.
Done Global advertised that it provided online diagnosis, treatment, and refills of medication for attention deficit hyperactivity disorder (ADHD). As alleged, Done Global and Mindful Mental Wellness P.A., a Florida company, allegedly conspired with others to provide easy access to over 40 million pills of Adderall and other stimulants in exchange for payment of the monthly subscription fee.
The indictment alleges that the conspiracy’s purpose was for the defendants to unlawfully enrich themselves by, among other things, instructing Done prescribers to prescribe Adderall and other stimulants without any legitimate medical purpose, thereby increasing monthly subscription revenue and increasing the value of Done Global. Done Global allegedly arranged for the prescription of over 40 million pills of Adderall and other stimulants and obtained over $100 million in revenue.
According to court documents, Done Global allegedly ordered Adderall and other stimulants for Done members, including Medicare and Medicaid beneficiaries and commercial insurers members, with whom they lacked a pre-existing practitioner-patient relationship, without an examination, and sometimes based solely on a short video or audio communication and limited patient intake documents, or without any video or audio communication at all.
Done Global and others, allegedly agreed to provide few, if any, medical treatment options besides prescribing Adderall and other stimulants. In some cases, Done members did not meet the Diagnostic and Statistical Manual of Mental Disorders criteria for diagnosing ADHD and posed a risk of diversion. Done “provided dosages, directions, combinations or quantities of medications beyond any legitimate medical purpose, and without following the usual course of professional practice for prescribing them.”
Done Global is charged with one count of conspiracy to illegally distribute Adderall, four counts of illegal distribution of Adderall, conspiracy to commit health care fraud, and conspiracy to obstruct justice. If convicted, Done Global faces a maximum penalty for conspiracy and illegal distribution of Adderall of twice the gross profits or other proceeds; and twice the gain or twice the gross loss for conspiracy to commit health care fraud and obstruction.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, composed of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes.
Patients receiving treatment at this practice may contact their insurance carrier for assistance in identifying a new provider for continued care. Individuals seeking access to a new primary care provider or other services can also find a provider through https://findahealthcenter.hrsa.gov/.
The Department of Justice and its law enforcement partners are working with public health and behavioral health partners to communicate where patients can find appropriate care and to alert them of potential risks associated with obtaining medications outside legal channels. Patients seeking further information on where to obtain care can refer to the CDC Health Advisory on a related action from June 2024.
