ADHD Startup Leaders Arrested, Face Fraud Charges

The recent arrest and charging of Ruthia He, the founder of Done Global, and David Brody, the clinical leader of the telehealth company, have brought to light serious allegations of fraud and misuse of their telehealth platform.

Federal authorities accuse He and Brody of conspiring to facilitate the easy access to Adderall and other stimulants, claiming that their actions were deliberately designed to cater to "drug seekers." This case marks a significant development in the regulation and oversight of telehealth services, particularly in the context of controlled substances.

Done Global is a telehealth company that connects patients with medical professionals. However, the Justice Department alleges that the company went beyond its stated mission and became a conduit for the distribution of controlled substances without legitimate medical purposes. According to the charges, He and Brody orchestrated the prescription of over 40 million stimulant pills, exploiting the vulnerabilities of the telehealth model and the increased demand for remote healthcare services during the COVID-19 pandemic.

The allegations detail a sophisticated scheme where He and Brody targeted individuals looking for easy access to stimulants. They reportedly spent tens of millions of dollars on deceptive social media advertising to attract these "drug seekers." This marketing strategy was part of a broader effort to create a large customer base that would drive up the company's revenue, which exceeded $100 million, according to the Justice Department.

The charges also include claims that He and Brody defrauded pharmacies, Medicare, and other insurers. They allegedly made false statements about Done’s prescribing practices to ensure that pharmacies would fill the prescriptions. This aspect of the case underscores the complexities and potential pitfalls of telehealth, where the verification of legitimate medical need can be more challenging than in traditional healthcare settings.

Further complicating their legal troubles, He and Brody are accused of obstructing justice. The specific nature of these obstruction charges has not been detailed, but it suggests that there were attempts to hide or destroy evidence, mislead investigators, or otherwise interfere with the judicial process. This charge adds another layer of severity to the case, as obstruction of justice is a serious offense that can carry significant penalties.

Attorney General Merrick Garland highlighted the broader implications of this case, stating that the defendants exploited the pandemic to further their fraudulent activities. He emphasized that the Justice Department is committed to pursuing those who illegally distribute controlled substances online, signaling a broader crackdown on similar practices in the telehealth industry.

In response to these charges, Done Global has not provided an immediate comment. The company has previously maintained that it operates as a technology platform that connects patients with medical professionals, asserting that it does not directly prescribe medications. This defense points to a common argument among telehealth companies that they are merely facilitators of healthcare rather than direct providers.

However, the Justice Department's allegations suggest that Done Global’s operations were structured in a way that incentivized the over-prescription of stimulants. The charging documents reveal that He and Brody purposefully limited the information available to clinicians and instructed them to prescribe stimulants even when patients did not meet the necessary criteria. This practice was allegedly part of a broader effort to increase the volume of prescriptions, thereby boosting the company’s revenue.

The documents also detail a concerning payment structure for clinicians, which was designed to discourage thorough patient evaluations and follow-up care. Clinicians were reportedly paid based on the number of users who received prescriptions rather than the quality of care provided. This payment model created a perverse incentive for clinicians to prescribe stimulants quickly and in large quantities, further exacerbating the potential for abuse.

The case against He and Brody is also notable for its impact on Done Global’s reputation. The documents indicate that they were aware of deaths among Done members and had seen online posts describing the company as a “straight up pill mill.” Despite this awareness, they allegedly continued their practices, prioritizing profit over patient safety.

This case is the culmination of a two-year investigation, sparked by articles in The Wall Street Journal. These articles highlighted concerns from some Done clinicians who felt pressured to prescribe stimulants and pointed to unusually rapid prescription practices. The Justice Department’s involvement and the subsequent charges underscore the seriousness of these allegations and the potential consequences for the telehealth industry.

If convicted, He and Brody face significant prison time. The case is the first of its kind where the Justice Department has alleged criminal drug distribution related to a telehealth company, marking a precedent in the regulation of online healthcare services. Historically, the department has focused on dangerous prescribing practices related to opioids, but this case broadens the scope to include other controlled substances.

The broader implications of this case are significant for the telehealth industry. It highlights the need for stringent oversight and regulation to prevent similar abuses. As telehealth continues to grow, particularly in the wake of the COVID-19 pandemic, ensuring the integrity and safety of these services is paramount. This case may lead to increased scrutiny of telehealth companies and more robust regulatory frameworks to safeguard against the misuse of these platforms.

In summary, the arrest and charging of Ruthia He and David Brody of Done Global underscore serious concerns about the misuse of telehealth platforms for the illegal distribution of controlled substances. The allegations detail a deliberate scheme to prescribe large quantities of stimulants, targeting individuals seeking drugs and defrauding pharmacies and insurers. The case marks a significant development in the regulation of telehealth services, with broader implications for the industry’s future oversight and integrity.