A federal grand jury in San Francisco returned an indictment charging a California telehealth company and a Florida medical practice in a large scheme to distribute Adderall and other stimulants, alleging massive fraud, unlawful prescribing, and obstruction tied to a subscription-based operation.
The indictment accuses Done Global Inc. of running a subscription model that funneled prescriptions for stimulants to members without proper medical oversight. Federal prosecutors say the scheme provided easy access to Adderall and other controlled substances in exchange for monthly fees and that the operation touched Medicare, Medicaid, and commercial insurers. A Florida medical practice, Mindful Mental Wellness P.A. (MMW), is also charged for its alleged role in the conspiracy.
<p“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. “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.”
Prosecutors allege Done Global identified itself as a “digital health company” and promoted online diagnosis, treatment, and refills for ADHD under a membership structure. The government claims Done Global and MMW conspired to prescribe over 40 million Adderall pills and other stimulants without legitimate medical purposes, driving subscription revenue and inflating the company’s value. The indictment says the operation generated more than $100 million in revenue from these prescriptions.
“Done Global betrayed the public trust by allegedly exploiting a subscription-based program to flood the country with Adderall, a powerful and highly regulated controlled substance,” said Assistant Administrator Cheri Oz of the Drug Enforcement Administration (DEA) Diversion Control Division. “By distributing over 40 million Adderall pills for non-legitimate medical purposes, they prioritized profit over patient safety and public health. 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.”
<pThe indictment says defendants pushed prescribers to issue stimulants without legitimate medical need, often increasing monthly subscription income and Done Global’s market value. Done Global allegedly arranged prescriptions for more than 40 million stimulant pills and collected in excess of $100 million as a result. “Yesterday, we charged defendants with exploiting telehealth to provide unfettered access to over 40 million Adderall pills. Instead of leveraging technology to improve patient access to care and enhance communications, Done Global saw it as a way to boost profit. We will vigorously pursue companies that engage in this kind of fraud and put patients at risk,” said U.S. Attorney Craig H. Missakian for the Northern District of California.
The company’s founder and CEO, Ruthia He, and its former clinical president, David Brody, were previously convicted of conspiracy to distribute controlled substances, four counts of distribution of controlled substances and conspiracy to commit health care fraud. The indictment also states Ruthia He was convicted of conspiracy to obstruct justice. Those prior convictions form part of the background prosecutors cite in the current charges.
“Prescribing controlled substances without proper medical oversight, as alleged, endangers patients and erodes trust in our health care system,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Running a sham operation to exploit federal programs and funnel taxpayer dollars into unlawful stimulant distribution is a blatant abuse. HHS-OIG will continue to work with our law enforcement partners to expose and dismantle schemes that threaten public safety and defraud the American people.”
Investigators say Done Global and MMW ordered Adderall for members, including Medicare and Medicaid beneficiaries, often without a pre-existing practitioner-patient relationship and sometimes without any proper examination. In many cases prescriptions were issued after only a brief video or audio contact or based on minimal intake paperwork, and rarely included treatment options beyond stimulants. The indictment alleges some recipients did not meet DSM-V criteria, posed diversion risks, or received dosages and quantities beyond any legitimate medical purpose.
Authorities further allege the companies defrauded pharmacies and insurers to get prescriptions filled and submitted false claims to Medicare, Medicaid, and commercial insurers. The indictment accuses Done Global of altering, destroying, and concealing records after receiving a grand jury subpoena. Done Global faces counts including conspiracy to illegally distribute Adderall, multiple counts of illegal distribution, conspiracy to commit health care fraud, and conspiracy to obstruct justice, with penalties tied to profits, gains, and gross losses if convicted.
“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” said Special Agent in Charge Harry T. Chavis of IRS Criminal Investigation New York. “This was a brazen scheme of staggering proportions while also putting individual lives at risk. Yesterday’s indictment sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
Acting Deputy Chief Jacob Foster, Assistant Chief Emily Gurskis and Trial Attorney Jil Simon of the Criminal Division’s Fraud Section, along with Assistant U.S. Attorney Kristina Green for the Northern District of California, are prosecuting the case. The Fraud Section coordinates the Health Care Fraud Strike Force Program, which has charged thousands of defendants across federal districts for schemes targeting federal health programs and private insurers. That multiagency effort is cited as central to uncovering and prosecuting large-scale health care fraud.
