Telehealth Leaders Arrested in Groundbreaking Prescription Fraud Case
Two executives at a telehealth company are arrested in California in a groundbreaking case. They’re accused of running a $100 million scheme to sell Adderall over the internet to patients who didn’t necessarily need the drug, even continuing the scheme after becoming aware that patients had overdosed and died.
Done Global founder and CEO Ruthia He and Done Global clinical president David Brody are accused of conspiring to provide patients with easy access to Adderall and other stimulants in exchange for a monthly subscription fee.
“These charges are the Justice Department’s first criminal drug distribution prosecutions related to telemedicine prescribing through a digital health company. As these charges make clear, corporate executives who put profit over the health and safety of patients—including by using technological innovation—will be held to account,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division.
Scheme Details
According to court documents, the company took advantage of the rush to telehealth during the COVID-19 pandemic by subscribing patients to ADHD medication after a brief telehealth visit and without proper assessment. The company allegedly set up monthly auto-refills of the medication and did not require follow-up visits as is medical procedure.
The duo is also accused of targeting patients with “deceptive advertisements” and structuring the company’s platform to "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.”
Prosecutors say the executives started deleting documents and using encrypted messaging once a similar telehealth company was subpoenaed.
In a statement, Done Global denies wrongdoing.
“Done Global 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 health care,” the company said.
CDC Advisory
The case prompted an advisory from the Centers for Disease Control and Prevention (CDC), warning that up to 50,000 ADHD patients may lose access to their prescriptions, due to the Done Global case.
The CDC points out that the Done Global case comes on top of a preexisting prescription drug shortage. It warned patients only to get medication from a licensed pharmacy.
"Patients whose care or access to prescription stimulant medications is disrupted, and who seek medication outside of the regulated healthcare system, might significantly increase their risk of overdose due to the prevalence of counterfeit pills in the illegal drug market that could contain unexpected substances, including fentanyl," said the CDC.
He and Brody are charged with conspiracy to distribute controlled substances and distribution of controlled substances, among other counts.
The Drug Enforcement Administration (DEA), Department of Health and Human Services Office of Inspector General (HHS-OIG), Homeland Security Investigations (HIS), and IRS Criminal Investigation are investigating.