CEO of telehealth company Done charged in online Adderall distribution scheme
The founder and CEO of a California-based telehealth company was arrested and charged Thursday with involvement in a scheme to distribute Adderall over the internet and commit health care fraud.
The founder and CEO of a California-based telehealth company was arrested and charged Thursday with involvement in a scheme to distribute Adderall over the internet and commit health care fraud.
The Justice Department alleged in a news release that Ruthia He, the founder and CEO of Done Global Inc., conspired with the company's clinical president, David Brody, and others to provide easy access to stimulants, including Adderall, a drug used to treat attention-deficit/hyperactivity disorder, in exchange for payment of a monthly subscription fee.
He was arrested in Los Angeles and Brody was arrested in San Rafael, California, on charges of conspiracy to distribute controlled substances and distribution of controlled substances. If they are convicted, they each face a maximum sentence of 20 years in prison. It’s not clear whether He and Brody have obtained attorneys who can speak on their behalf.
He and Brody ran the scheme to "unlawfully enrich themselves" and made over $100 million by increasing monthly subscription revenue, which therefore increased the value of the company, federal officials said.
Jb Reed / Bloomberg via Getty Images filePrincipal Deputy Assistant Attorney General Nicole M. Argentieri accused He and Brody of exploiting telemedicine "and spending millions on deceptive advertisements on social media."
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