The founder and CEO of a California-based digital health company, along with its clinical president, were arrested today for their alleged involvement in a scheme to distribute Adderall over the internet and commit health care fraud by submitting false claims for reimbursement.
Ruthia He, the founder and CEO of Done Global Inc., was apprehended in Los Angeles and will make her initial court appearance at 1:30 p.m. PDT/4:30 p.m. EDT in Los Angeles. David Brody, the clinical president of Done Health P.C., was arrested in San Rafael, California, and is scheduled to appear at 10:30 a.m. PDT/1:30 p.m. EDT in San Francisco.
Attorney General Merrick B. Garland stated, "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."
Secretary of Homeland Security Alejandro N. Mayorkas added, "The individuals charged today allegedly disregarded the first rule of medical care—do no harm—in order to maximize profits."
Principal Deputy Assistant Attorney General Nicole M. Argentieri noted that this case marks the Justice Department’s first criminal drug distribution prosecutions related to telemedicine prescribing through a digital health company.
Court documents allege that He and Brody conspired with others to provide easy access to Adderall and other stimulants in exchange for monthly subscription fees. The indictment claims they generated over $100 million in revenue by arranging for the prescription of more than 40 million pills.
Deputy Chief Matthew Yelovich emphasized that transactions on the internet must always be legal. DEA Administrator Anne Milgram criticized the defendants for allegedly exploiting telemedicine rules during the COVID-19 public health emergency.
Christi A. Grimm from HHS-OIG stated that they will continue working with law enforcement partners to ensure legal prescribing practices are followed.
He and Brody are accused of continuing their activities even after being made aware that material was posted online about how to use Done's platform to obtain easy access to Adderall, leading some members to overdose or die.
Executive Associate Director Katrina W. Berger highlighted that healthcare fraud imposes significant costs on national healthcare systems and economies.
Chief Guy Ficco of IRS Criminal Investigation pointed out that prioritizing profits led customers towards addiction, abuse, and overdoses.
The indictment also alleges that He and Brody conspired to obstruct justice by deleting documents and using encrypted messaging platforms instead of company email after receiving grand jury subpoenas.
If convicted, both face up to 20 years in prison on charges related to conspiracy and distribution of controlled substances.
The investigation is being conducted by DEA, HHS-OIG, HSI, and IRS Criminal Investigation. Prosecutors include Principal Assistant Chief Jacob Foster, Trial Attorney Raymond Beckering III from the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorneys Kristina Green, Katherine Lloyd-Lovett, and Lloyd Farnham from the Northern District of California.
More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit. Patients or medical professionals involved with Done should report any illegal conduct to the DEA hotline at 646-466-5159.
An indictment is merely an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.
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