Done Global, a San Francisco-based startup that became popular for its online Adderall subscription service, saw its executives arrested in Los Angeles and San Rafael, California.
As reported by BBC, Ruthia He, CEO of telehealth company Done Global, and clinical president David Brody orchestrated a $100 million scheme to fraudulently distribute over 40 million pills of Adderall and other controlled substances.
Controlled substances are drugs regulated by laws due to their potential for abuse, addiction, and harmful effects.
These substances include medications like Adderall, which are used for legitimate medical purposes under strict guidelines. Illegally distributing controlled substances bypasses these regulations, leading to potential misuse, addiction, overdoses, and even death.
Read also: Revolutionizing Telemedicine: Doc.com's Approach to Make Healthcare Free for Every American
How Done Global Executives Orchestrated the $100 Million Scheme
According to US Attorney General Merrick Garland, the executives exploited loosened telemedicine rules during the COVID-19 pandemic to provide easy access to these drugs without legitimate medical purposes.
If convicted, they face up to 20 years in prison for distributing controlled substances. The scheme, involving deceptive advertisements and inflated subscription fees, allegedly enriched the company while limiting prescriber information and instructing prescriptions for medically unqualified patients.
Despite awareness of overdoses and deaths among Done members, the illegal activities continued.
Additionally, they are accused of defrauding Medicare, Medicaid, and pharmacies out of $14 million and obstructing justice by deleting documents and emails.
This marks the first criminal drug distribution prosecution related to telemedicine by the Justice Department.
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