A federal grand jury in San Francisco indicted telehealth company Done Global for its role in what prosecutors allege was a $100 million scheme to illegally distribute Adderall and other ADHD medications over the internet.
A Florida medical practice was also charged in connection with its alleged participation in selling the stimulants online.
Federal prosecutors also allege that Done Global conspired to commit healthcare fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants, and conspired to obstruct justice.
Last month, the company’s founder and former CEO Ruthia He, and a former top doctor at the company, were convicted of conspiring to distribute Adderall and other stimulants online. The jury found He, and David Brody, the company’s clinical president, guilty on two conspiracy counts—one count related to healthcare fraud—and four counts of distribution of controlled substances.
Prosecutors are now leveraging those same charges against the company itself.
Bloomberg Law reported that the Department of Justice was in negotiations with the company to reach a settlement in the months leading up to last month’s trial. Those efforts were re-engaged after the trial conviction but without success, the publication reported, citing a source familiar with the indictment.
If convicted, Done Global faces a maximum penalty for conspiracy and illegal distribution of Adderall of twice the gross profits or other proceeds; and twice the gain or twice the gross loss for conspiracy to commit healthcare fraud and obstruction. If convicted, the medical practice faces a maximum penalty for conspiracy to illegally distribute Adderall of twice the gross profits or other proceeds.
Done Global did not respond to an email sent to a press contact. Mindful Mental Wellness could not be reached for comment. CBS News reported that the medical practice uses the same San Francisco address as Done Global but has a registered agent in St. Petersburg, Florida.
The indictment comes amid an ongoing nationwide shortage of Adderall and other stimulants. Stimulant shortages began in 2022 and many of those medications are still in short supply, Understood, a nonprofit organization, reported.
The DOJ alleges that Done Global operated on a subscription-based model where individuals paid a monthly fee. The company advertised that it provided online diagnosis, treatment and refills of medication for attention deficit hyperactivity disorder (ADHD). Done Global and Mindful Mental Wellness P.A., a Florida company, allegedly conspired with others to provide easy access to over 40 million pills of Adderall and other stimulants in exchange for payment of the monthly subscription fee, prosecutors claim.
The indictment in the San Francisco-based U.S. District Court for the Northern District of California alleges that the purpose of the conspiracy was for the companies to unlawfully enrich themselves by instructing Done prescribers to prescribe Adderall and other stimulants without any legitimate medical purpose. More prescriptions would increase monthly subscription revenue and boost the value of Done Global, prosecutors allege.
According to the charges in the indictment, Done Global and Mindful Mental Wellness ordered Adderall and other stimulants for Done members, including Medicare and Medicaid beneficiaries and commercial insurers members, with whom they lacked a pre-existing practitioner-patient relationship, without an examination, and sometimes based solely on a short video or audio communication and limited patient intake documents, or without any video or audio communication at all, the DOJ alleges.
The DOJ also alleges that in some cases, Done members did not meet the Diagnostic and Statistical Manual of Mental Disorders (DSM)-V criteria for diagnosing ADHD, posed a risk of diversion and, in the event such medications were necessary, were provided dosages, directions, combinations or quantities of medications beyond any legitimate medical purpose, and without following the usual course of professional practice for prescribing them.
Done Global allegedly arranged for the prescription of over 40 million pills of Adderall and other stimulants and obtained over $100 million in revenue, according to the DOJ.
“As alleged, Done Global used lies and deceit to carry out a sophisticated and wide-ranging telehealth fraud scheme, obtaining over $100 million in the process,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division in a statement. “From feeding addiction to stealing public funds, rampant health care fraud victimizes our citizens and must be stopped. The Criminal Division will not hesitate to hold health care companies that defraud Americans accountable for their crimes.”
The company “prioritized profit over patient safety and public health,” ” said Assistant Administrator Cheri Oz of the Drug Enforcement Administration (DEA) Diversion Control Division. “Controlled substances are not commodities to be marketed through memberships — they are medications that require careful oversight to prevent misuse and diversion. DEA remains steadfast in its commitment to hold registrants accountable,” Oz said.
Done Global also faces charges that it conspired to submit false and fraudulent claims to Medicare, Medicaid and the commercial insurers.
According to the indictment, Done Global incorporated Mindful Mental Wellness to circumvent the pharmacies that had blocked the filling of Done Global-affiliated prescriptions. The telehealth company also allegedly conspired to alter, destroy, and conceal records after receiving a grand jury subpoena, the DOJ claims.
The Wall Street Journal reported in September 2022 that Drug Enforcement Administration agents were investigating Done’s practices for prescribing controlled substances. The investigation was sparked by WSJ articles describing how some Done clinicians felt pressured to prescribe stimulants like Adderall. One patient died following a Done prescription, the WSJ reported.
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