The founder and CEO of a California-based telehealth company was arrested and charged Thursday for her involvement in an alleged scheme to distribute Adderall over the Internet and commit health care fraud.
Ruthia He, the founder and CEO of Done Global Inc., allegedly conspired with the company’s clinical president, David Brody, and others to provide easy access to stimulants, including Adderall, a drug used to treat ADHD , in exchange for payment of a monthly amount. subscription fee, the Ministry of Justice said in a press release.
He was arrested in Los Angeles and Brody in San Rafael, California on charges of conspiracy to distribute a controlled substance and distribution of a controlled substance. If found guilty, they each face a prison sentence of up to 20 years. It is not clear whether he and Brody have found attorneys who can speak on their behalf.
He and Brody carried out the scheme to “unlawfully enrich themselves” and made more than $100 million by boosting monthly subscription revenue, boosting the company’s value, federal officials said.
Deputy Assistant Attorney General Nicole M. Argentieri accused He and Brody of exploiting telemedicine “and spending millions on deceptive social media advertising.”
“They generated more than $100 million in revenue by arranging the prescription of more than 40 million pills,” Argentieri said in a statement. “These charges are the first criminal charges by the Department of Justice related to telemedicine prescribing through a digital health care company. As these charges make clear, corporate leaders who put profits ahead of patient health and safety – including through the use of technological innovation – will be apprehended. to declare.”
The pair allegedly gained subscribers by spending millions on what officials called misleading social media ads, targeting drug seekers and deliberately structuring the Done platform to facilitate access to Adderall and other stimulants, the press release alleges.
Part of the plan would include limiting the information available to Done prescribers and directing them to prescribe Adderall and other stimulants even if the Done member was ineligible.
He tried to maximize profits by adding an “auto-refill” feature that allowed subscribers to receive a message every month asking for a refill of the drug, the Justice Department said.
He and Brody are also accused of conspiring to defraud pharmacies, Medicare and Medicaid.
The Justice Department said He and Brody allegedly continued with the scheme even after being informed that Done members had overdosed and died and that material had been posted online about how people could use Adderall and other stimulants could obtain resources from the company.
Done, which says it makes high-quality psychiatric chronic care more affordable and accessible, did not immediately respond to a request for comment Thursday. He and Brody could not be reached at the phone numbers listed for them.
In 2022, the Wall Street Journal reported that some doctors said they felt the company was pressuring them to prescribe stimulants. That same year, the Drug Enforcement Administration opened an investigation into Done’s practice of prescribing controlled substances, the WSJ reported.
The DEA lists Adderall as a schedule II drug with a high potential for abuse. It falls into the same category as Vicodin, OxyContin and methamphetamine.
This article was originally published on NBCNews.com
