Telehealth Founder Convicted of Adderall Pill Mill Scheme
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Done Global Executives Convicted in $100 Million Adderall Scheme
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The founder and clinical president of telehealth company Done were found guilty of illegally distributing Adderall and defrauding insurers, highlighting the risks of rapid growth in the digital health sector.
The Verdict: Conspiracy and Fraud
A federal jury in San Francisco convicted Ruthia He, founder and CEO of Done global, and David Brody, the clinical president of Done Health, on Tuesday, May 14, 2024, for their roles in a scheme to illegally distribute Adderall and other stimulants online, according to the U.S. Department of Justice.
He and Brody were each convicted on one count of conspiracy to distribute controlled substances, four counts of distribution of controlled substances, and one count of conspiracy to commit health care fraud.He also faced and was convicted of conspiracy to obstruct justice. Sentencing is scheduled for september 17, 2024, before U.S. district Judge charles R. Breyer.
Aggressive Marketing and Rapid Expansion
Starting in 2020, during the height of the COVID-19 pandemic, Done global invested over $40 million in deceptive advertisements on social media platforms to promote its ADHD medication services, as detailed in the DOJ press release. The company also utilized targeted search ads aimed at individuals seeking ADHD medication without a customary prescription.
This aggressive marketing strategy fueled rapid expansion, but also circumvented standard medical protocols. He, who lacks medical training, was responsible for approving clinical practices, raising concerns about the oversight of patient care.
Questionable Prescribing Practices
The DOJ alleges that Done Health incentivized nurse practitioners with salaries up to $60,000 per month to rapidly refill prescriptions. The company implemented an “auto-refill” technology that allowed for automated prescription renewals without required follow-up appointments with a clinician, as outlined in the DOJ statement. This practice bypassed crucial safeguards designed to ensure appropriate medication management.
Furthermore, He, Brody, and others allegedly conspired to defraud insurance companies by facilitating reimbursement for Adderall prescriptions filled at pharmacies.
Obstruction of Justice Allegations
the DOJ also alleges that He and Brody directed nurses to withhold facts from investigators,demonstrating an attempt to obstruct the federal examination.This alleged obstruction contributed to He’s additional conviction on conspiracy to obstruct justice.