Ruthia He, founder and CEO of the digital health company Done, and David Brody, its clinical president, were convicted by a federal jury for their involvement in a scheme to illegally distribute Adderall online and commit health care fraud. The verdict was delivered in San Francisco following evidence that detailed how the two executives orchestrated the distribution of over 40 million pills of Adderall and other stimulants through a subscription-based model.
According to court documents and trial evidence, He and Brody built Done into a billion-dollar technology company by offering easy access to controlled substances in exchange for monthly fees. They spent more than $40 million on targeted advertisements during the COVID-19 pandemic, encouraging individuals to seek ADHD diagnoses and obtain prescriptions. The ads specifically targeted drug seekers looking for Adderall without proper medical oversight.
U.S. Attorney Craig H. Missakian for the Northern District of California commented on the case: “Not all drug dealers operate in the shadows or on street corners. Some, like Ruthia He and David Brody, use computers and social media instead. Doctors take an oath to do no harm. David Brody and other doctors were only too willing to sell their integrity to He and put money ahead of patient wellbeing. Medical necessity must always drive the decision to prescribe controlled substances like Adderall and other stimulants. Ruthia He and David Brody violated that core principle when they exploited telehealth rules to push prescription medication, and hurt patients in the process. This prosecution marks the beginning of a sustained effort. Digital health companies that engage in unlawful drug distribution should take notice that they will not escape accountability.”
Acting Assistant Attorney General Matthew R. Galeotti stated: “These defendants carried out a $100 million scheme to unlawfully provide easy online access to Adderall and other stimulants by targeting drug seekers, engaging in deceptive advertising, and putting profits above patient care. This verdict sends a clear message that the Criminal Division will hold accountable criminals who attempt to exploit telehealth to write illegal prescriptions for their personal gain. Innovation in health care must never come at the cost of patient safety, professional integrity, or the rule of law.”
Deputy Inspector General for Investigations Christian J. Schrank from HHS-OIG added: “This case represents one of the most egregious abuses of telehealth we’ve seen. The defendants built a brazen business model based on addiction, deception, and disregard for patient safety—flooding the market with controlled substances while defrauding federal health care programs. Their intentional disregard for patient safety and the law put lives at risk and eroded public trust in digital medicine. HHS-OIG will relentlessly pursue those who exploit innovation to endanger lives and steal from taxpayers.”
Special Agent in Charge Harry T. Chavis of IRS Criminal Investigation New York said: “The fraudulent acts of He and Brody led to clients’ substance abuse, addiction and, in some cases, overdose. Instead of putting the care of their customers first, they prioritized their own greed by fraudulently prescribing more than $100 million worth of Adderall and other stimulants. These were shameful acts, and a jury of their peers agreed. Both He and Brody will now face the consequences of this egregious fraud.”
The investigation revealed that nurse practitioners were paid up to $60,000 per month by Done to refill prescriptions without proper clinical interaction; an auto-refill feature allowed patients—even deceased ones—to continue receiving prescriptions based on automated emails rather than medical evaluations.
To ensure ongoing revenue from subscriptions, He, Brody, and others submitted false insurance claims stating compliance with diagnostic standards such as DSM-5 criteria or urine drug screens when these practices had not been followed; this resulted in Medicare, Medicaid, and commercial insurers paying out over $14 million.
After national media scrutiny in 2022 regarding Done’s practices making Adderall easily accessible online, both executives made misleading statements about company policies while internal records showed otherwise.
He was also found guilty of conspiring to obstruct justice by moving operations abroad during investigations—specifically relocating personnel/evidence to China—and deleting incriminating communications.
Both defendants face up to 20 years imprisonment on several counts related to conspiracy/distribution of controlled substances as well as health care fraud; sentencing is scheduled for February 25th next year.
Multiple agencies including DEA, HHS-OIG, Homeland Security Investigations (HSI), IRS Criminal Investigation contributed to building this case.
The Department of Justice’s Health Care Fraud Strike Force Program has charged thousands since its inception with billions billed fraudulently against federal programs.
