Telehealth execs face 20 years for $100M Adderall prescription fraud
The U.S. Department of Justice (DoJ) has charged two executives of a telehealth company in a $100 million drug prescription scheme. If convicted, they could serve 20 years in prison.
Ruthia He, CEO and founder, and David Brody, MD, clinical president, of Done were arrested in California for allegedly submitting false and fraudulent reimbursement claims when prescribing Adderall and other ADHD treatments online.
Federal prosecutors said the duo prescribed the highly addictive controlled substances to patients who purchased a monthly subscription on the Done telehealth platform. Prosecutors also alleged the company used deceptive, targeted advertising to reach patients seeking drugs in an effort to “facilitate access to Adderall and other stimulants.”
According to prosecutors, the duo would instruct their employees to “prescribe Adderall and other stimulants even if the Done member did not qualify” in online meetings with patients that were mandated to last less than 30 minutes, all in an effort to prioritize swift access to the drugs.
“This led customers to addiction, abuse and overdoses, which the company tried to conceal by making false representations to the media in order to deter oversight by government agencies,” Guy Ficco of the IRS criminal investigation division said in a statement from the DoJ.
Once patients paid for a subscription and received their first prescription for stimulants, an “auto-refill” function was activated on the Done platform that allowed patients to receive more drugs without the need to meet with a prescriber again, the DoJ said.
Many of the patients who received prescriptions for Adderall and other stimulants had no medical need for them, the DoJ added. Some patients allegedly overdosed and died as a result.
Despite knowledge of the deaths—and the overtly simple access patients had to the drugs—He and Brody did not alter their business practices, profiting by more than $100 million during their tenure, federal prosecutors said.
Subscriptions with Done cost an initial $199 and then $79 monthly. On its website, the company touts itself as a “passion project to help friends, coworkers and loved ones struggling to access mental health care."
In response to the arrests, the Centers for Disease Control and Prevention released a statement alerting patients to the dangers of withdrawal from Adderall and other psychotropic stimulants. The CDC said the potential closure of Done could impact 30,000 to 50,000 patients nationwide.
As of publication time, the company’s website and services are still operational. HealthExec reached out to Done for comment and received the following statement:
"Done Global strongly disagrees with the criminal charges filed last week against our founder, Ruthia He, and Dr. David Brody, which are based on events that principally occurred between February 2020 and January 2023. Since our founding, Done has worked to make mental healthcare accessible for tens of thousands of Americans trapped in a spiraling national crisis. Done will continue to operate—and do everything in our power to ensure that tens of thousands of Americans that rely on us do not lose access to their mental healthcare. At the same time, we will continue to support our clinicians as they exercise independent clinical judgment, practice evidence-based medicine and provide best-in-class healthcare."
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.