The United States Department of Justice (DOJ) recently announced its first criminal drug distribution prosecution related to a digital health company that distributed controlled substances through telemedicine. Ruthia He, the founder and CEO of Done Global Inc., along with David Brody, the clinical president of Done Health P.C., were arrested in connection with their alleged participation in a scheme to distribute Adderall online, a conspiracy to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulant drugs, and obstructing justice.
According to the indictment, He and Brody conspired with others to provide easy access to Adderall and other stimulant drugs, in exchange for a monthly subscription fee payment. The purpose of the conspiracy was allegedly to “unlawfully enrich themselves” by increasing the monthly subscription revenue – and the value of the company. Together, Done Global and Done Health allegedly arranged for the prescription of more than 40 million pills of Adderall and other stimulants, to the tune of more than $100 million in revenue. The indictment alleges that these prescriptions were not “for a legitimate medical purpose in the usual course of professional practice” and that proceeds of the conspiracy were diverted by the defendants for “their personal use and benefit, for the use and benefit of others, and to further the scheme.”
The DOJ alleged that He and Brody obtained subscribers to their service by targeting drug seeking patients and spending tens of millions of dollars on misleading and deceptive advertisements on social media. The Done platform was also allegedly structured intentionally to facilitate access to Adderall and other stimulants, including: limiting information available to Done prescribers, instructing the prescribers to prescribe Adderall and other stimulants even if the Done member did not qualify, and mandating initial encounters to last 30 minutes or less.
He also allegedly implemented an “auto-refill” function that would allow subscribers to have an auto-generated refill request sent each month. He also wrote that Done wanted to “use the comp structure to dis-encourage follow-up” medical care by refusing to pay prescribers for any medical visits, telemedicine consultations, or other time spent caring for patients following the initial consultation. Instead, Done paid prescribers solely based on the number of patients who received prescriptions.
He, Brody, and others caused prescribers to write prescriptions that were not for a legitimate medical purpose in the usual course of professional practice through a “bridge prescription” policy that transferred Done patients to Done Prescribers who never had a prior in-person examination or telemedicine consultation with the Done patient. Prescribers would write prescriptions for Adderall and other stimulants without ever conducting an in-person or telemedicine consultation with the transferred Done patients.
According to the DOJ, He and Brody allegedly continued the conspiracy even after becoming aware that material was posted on online social networks about how to use Done to obtain easy access to Adderall and other stimulants – and that members of the Done network had overdosed and died. He and Brody also allegedly concealed and hid the conspiracy through fraudulent representations to the media in an attempt to stall and delay government investigations and actions, and to get third parties to continue doing business with Dome.
The indictment further alleges that He and Brody took the concealment a step further, conspiring to obstruct justice following a grand jury subpoena being issued to another telehealth company (and in anticipation that Done would also receive one). He and Brody allegedly deleted documents and other communications, used an encrypted messaging platform instead of email, and refused to produce documents in response to a subpoena issued to Done by a federal grand jury.
Government Statements
“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 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.”
“The defendants in this case operated Done Global Inc., an online telehealth website that prescribed Adderall and other highly addictive medications to patients who bought a monthly subscription. The defendants allegedly preyed on Americans and put profits over patients by exploiting telemedicine rules that facilitated access to medications during the unprecedented COVID-19 public health emergency,” said Drug Enforcement Administration (DEA) Administrator Anne Milgram. “Instead of properly addressing medical needs, the defendants allegedly made millions of dollars by pushing addictive medications. In many cases, Done Global prescribed ADHD medications when they were not medically necessary. In 2022 the FDA issued a notice of shortages in prescription stimulants, including Adderall. Any diversion of Adderall and other prescription stimulant pills to persons who have no medical need only exacerbates this shortage and hurts any American with a legitimate medical need for these drugs. The DEA will continue to hold accountable anyone, including company executives, that uses telehealth platforms to put profit above patient safety.”