Executives of Californian digital health company arrested

Adderall (Photo by Jb Reed/Bloomberg via Getty Images)

SAN FRANCISCO (KRON) — Two executives of a California digital health company were arrested Thursday for allegedly generating $100 million in revenue by funneling Adderall and Ritalin to illegitimate patients.

David Brody, Done's clinical president, was arrested in San Rafael. Brody will make his first appearance in San Francisco court Thursday afternoon. Ruthia He, founder and CEO of Done Inc., was arrested in Los Angeles.

Federal investigators said the duo conspired to provide easy access to stimulants over the Internet in exchange for monthly subscription fees from patients. A grand jury indictment alleges that the purpose of the conspiracy was to allow Done executives to illegally enrich themselves by prescribing more than 40 million pills to patients, many of whom were never medically evaluated.

Adderall and Ritalin are prescription stimulant medications used to treat attention deficit hyperactivity disorder (ADHD).

Done was founded in 2020 as a digital telemedicine company based in Northern California that operated on a subscription model. Done announced that it provides online diagnosis, treatment and medication refills for ADHD.

In 2022, the FDA issued a nationwide shortage notice of prescription stimulants, including Adderall and Ritalin. Legitimate ADHD patients were having difficulty refilling their prescriptions because pharmacies were unable to maintain supplies.

DEA Administrator Anne Milgram said, “Instead of properly meeting medical needs, the defendants allegedly made millions of dollars offering addictive drugs. Any diversion of Adderall and other prescription stimulant pills to people who have no medical need only exacerbates this shortage and harms every American with a legitimate medical need for these medications.

Amphetamine-dextroamphetamine is sold generically and under various brand names, including Adderall. Methylphenidate is sometimes sold under the brand name Ritalin. Pharmacists are required to exercise good professional judgment and adhere to professional standards when determining the legitimacy of a controlled substance prescription.

Brody was a psychiatrist who held a DEA registration number and was licensed to prescribe controlled substances in California. Ruthia He owned, controlled and operated Done.

Done prescribers wrote prescriptions for Done members “without examination, sometimes based only on brief video or audio communication and limited patient intake materials, or without any video or audio communication at all,” the report says. indictment.

According to the indictment, the scheme amassed thousands of members by spending millions of dollars on deceptive social media ads, as well as intentionally targeting drug-seeking patients. The indictment was filed Wednesday in the U.S. District Court for the Northern District of California.

Guy Ficco of IRS Criminal Investigation said some Done members overdosed and died.

“Instead of prioritizing the health of their clients, Lui and Brody’s telemedicine company allegedly prioritized profits – worth more than $100 million – by fraudulently prescribing medications,” said Ficco. “This led customers to addiction, abuse and overdoses, which the company attempted to cover up by making false statements to the media in order to deter surveillance from government agencies. »

As health care needs are met through telemedicine, fraudulent schemes that recklessly exploit digital technologies will be pursued, federal officials said.

He and Brody are charged with conspiracy to distribute controlled substances, distribution of controlled substances, conspiracy to commit health care fraud and conspiracy to obstruct justice. If convicted, he and Brody each face a maximum sentence of 20 years in prison.