Done Global CEO, Top Doc Arrested on Health Care Fraud Allegations

Federal prosecutors in California have arrested the founder and ex-CEO as well as the clinical leader of the embattled online ADHD care provider Done Global.

Ruthia He, a founder and once CEO, and David Brody, clinical president, were arrested on Thursday based on allegations they and others at Done Global carried out a “$100 million scheme” in which the company submitted false claims for Adderall and other stimulants and conspired to obstruct justice.

“Those seeking to profit from addiction by illegally distributing controlled substances over the internet should know that they cannot hide their crimes and that the Justice Department will hold them accountable,” U.S. Attorney General Merrick Garland said in a news release from the U.S. Attorney’s Office for the Northern District of California.

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Done Global rose to prominence by allowing people easy access to ADHD medications during the pandemic, at a time when federal regulations were loosened in response to the pandemic. It also came under scrutiny soon after when it and the one-time-unicorn startup Cerebral faced massive public criticism over the inappropriate use of controlled substances for behavioral health conditions. The Federal Trade Commission recently took action against Cerebral for deceptive marketing practices.

As the pandemic-era flexibilities for controlled substances and telehealth ended and other efforts to make them permanent persisted, several insiders and experts have told Behavioral Health Business they are worried that wrongdoing by a small handful of bad actors would give regulators an impetus to undo what became a new era of telehealth-enabled addiction treatment. The DEA has not yet resolved what it will do with its post-COVID telehealth and controlled substance prescribing rules. Those rules are expected to be out before the end of the year.

Done Global has reportedly generated $100 million in accumulated revenue and prescribed over 40 million pills of Adderall and other stimulants in its existence. The company was founded in 2020.

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Prosecutors allege that He, Brody and Done conspired to distribute controlled substances by providing prescriptions for Adderall and other stimulants that didn’t have a legitimate purpose. They also allege that Done and at least some of its unnamed prescribers made misrepresentations to pharmacies and health plans to ensure the initiation and continuation of those illegitimate prescriptions. In doing so, they submitted false claims to public and private health plans. All of this led Done and the defendants to “unlawfully enrich themselves.”

The charging document also states that He and Brody impeded the grand jury’s investigation, concealed their work by destroying documents, and diverted money from the company for their personal benefit. The company also allegedly failed to provide responsive documents to a grand jury subpoena, the release states.

“If convicted, He and Brody each face a maximum penalty of 20 years in prison on the conspiracy to distribute controlled substances and distribution of controlled substances counts,” the release states.

Done Global’s media contact email is nonfunctional. An external public relations representative for the company didn’t not have an immediate response to BHB’s request for comment. This story may be updated. He and Brody were unreachable as of the writing of this article.

“The defendants allegedly preyed on Americans and put profits over patients by exploiting telemedicine rules that facilitated access to medications during the unprecedented COVID-19 public health emergency,” DEA Administrator Anne Milgram said in the release. “Instead of properly addressing medical needs, the defendants allegedly made millions of dollars by pushing addictive medications.”

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