What You Should Know:
– Two executives from a California telehealth company Done Inc. were arrested on Thursday for allegedly operating a $100M scheme to distribute Adderall and Ritalin to illegitimate patients.
– David Brody, Done’s clinical president, and Ruthia He, the founder and CEO, are accused of conspiring to provide easy access to stimulant drugs through online consultations in exchange for monthly subscription fees.
– Federal investigators allege Done prescribed over 40 million stimulant pills, many without proper medical evaluations, to enrich themselves. This allegedly contributed to nationwide shortages of Adderall and Ritalin, leaving legitimate ADHD patients struggling to refill prescriptions.
Done: A Telehealth Company Built on Deception
Founded in 2020, Done advertised online ADHD diagnosis, treatment, and medication refills via a subscription model. However, the indictment alleges Done prescribed stimulants based on brief online consultations or even without any direct communication with patients.
Aggressive Marketing, Deceptive Practices
Authorities claim Done spent millions on social media marketing to attract patients, potentially targeting those seeking drugs rather than legitimate treatment. The indictment suggests the scheme resulted in overdoses and deaths among Done members.
Rise of Telemedicine Fraud
Federal officials emphasized their commitment to prosecuting fraudulent schemes that exploit telemedicine for illegal purposes. This case highlights the potential dangers associated with lax practices in the growing telemedicine industry.
“Instead of properly addressing medical needs,” said DEA Administrator Anne Milgram, “the defendants allegedly made millions by pushing addictive medications. This hurts any American who needs these drugs.”
Next Steps
Brody is scheduled for his initial court appearance in San Francisco on Thursday afternoon. The indictment was filed in the U.S. District Court for the Northern District of California.
