Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution, Health Care Fraud Scheme After HSI Investigation

HSI New York task force investigation leads to Justice Department’s first criminal drug distribution prosecutions related to a digital health company that distributed controlled substances via telemedicine

NEW YORK — The founder and CEO of a California-based digital health company and its clinical president were arrested June 13 in connection with their alleged participation in a scheme to distribute Adderall over the internet, conspiring to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants, and obstructing justice.

Special agents with Homeland Security Investigations New York’s Organized Crime Drug Enforcement Task Force Strike Force, in coordination with law enforcement partners, arrested Ruthia He, the founder and CEO of Done Global Inc., in Los Angeles, and David Brody, the clinical president of Done Health P.C., in San Rafael, California.

“Healthcare fraud is not a victimless crime. It levies a tremendous cost on our nation’s healthcare systems and economy,” said HSI Executive Associate Director Katrina W. Berger. “Today’s announcement should serve as a reminder that it is only a matter of time before anyone engaging in fraudulent activity is caught and brought to justice.”

According to the investigation, He and Brody allegedly conspired with others to provide easy access to Adderall and other stimulants in exchange for payment of a monthly subscription fee. The investigation found that the conspiracy’s purpose was for the defendants to unlawfully enrich themselves by, among other things, by increasing monthly subscription revenue and thus increasing the value of the company. The company allegedly arranged for the prescription of over 40 million pills of Adderall and other stimulants and obtained over $100 million in revenue.

He and Brody allegedly obtained subscribers by targeting drug seekers and spending tens of millions of dollars on deceptive advertisements on social media networks. They also allegedly intentionally structured the Done platform to facilitate access to Adderall and other stimulants, including by limiting the information available to Done prescribers, instructing Done prescribers to prescribe Adderall and other stimulants even if the Done member did not qualify, and mandating that initial encounters would be under 30 minutes. To maximize profits, He allegedly put in a place an “auto-refill” function that allowed Done subscribers to elect to have a message requesting a refill be auto-generated every month. He wrote that Done sought to “use the comp structure to dis-encourage follow-up” medical care by refusing to pay Done prescribers for any medical visits, telemedicine consultation, or time spent caring for patients after an initial consultation, and instead paying solely based on the number of patients who received prescriptions.

“The individuals charged today allegedly disregarded the first rule of medical care — do no harm — in order to maximize profits, and there is no place for such fraud in our healthcare system,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The indictment levied against these individuals sends a clear message: The Department of Homeland Security, our Homeland Security Investigations personnel, and our partners across the federal government will hold accountable those providers and prescribers who prey on their patients.”

“As alleged, these defendants exploited the COVID-19 pandemic to develop and carry out a $100 million scheme to defraud taxpayers and provide easy access to Adderall and other stimulants for no legitimate medical purpose,” said U.S. Attorney General Merrick B. Garland. “Those seeking to profit from addiction by illegally distributing controlled substances over the internet should know that they cannot hide their crimes and that the Justice Department will hold them accountable.”

If convicted, He and Brody each face a maximum penalty of 20 years in prison on the conspiracy to distribute controlled substances and distribution of controlled substances counts.

This case is being investigated by HSI, the DEA, the U.S. Department of Health and Human Services’ Office of Inspector General, and IRS Criminal Investigation.