U.S. charges Calif. firm, Fla. clinic in alleged $100M Adderall scam
by Chris Benson · UPIDec. 17 (UPI) -- A federal grand jury in San Francisco has indicted a California firm for allegedly running an online Adderall distribution scheme, committing health care fraud and attempting to obstruct justice, the U.S. Department of Justice said Wednesday.
Done Global founder Ruthia He and its former clinical president, David Brody, were charged with drug distribution and health care fraud conspiracies.
"Yesterday, we charged defendants with exploiting telehealth to provide unfettered access to over 40 million Adderall pills," according to U.S. Attorney Craig H. Missakian for the Northern District of California.
In addition, a Florida clinic was charged for allegedly helping illegally distribute Adderall.
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"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," Missakian added in a statement.
Ruthia also faces an additional charge for obstructing justice.
Court filings alleged that California-based Done Global Inc. -- which marketed itself as a subscription "digital health" provider for ADHD care -- teamed up with Florida firm Mindful Mental Wellness to funnel more than 40 million Adderall pills and other stimulants.
Prosecutors said prescribers were pushed to issue drugs without legitimate medical need to boost subscription income and corporate value, which generated more than $100 million.
Court filings stated that Done Global, a self-described digital health company offering subscription-based ADHD services and conspired with Mindful Mental Wellness to issue illegitimate prescriptions for Adderall and other stimulants.
The companies allegedly approved medications without proper exams or patient dynamics sometimes after only brief or no contact.
Prosecutors claim the firms prioritized prescribing stimulants over other treatments, giving high-risk patients drugs they didn't need or in unsafe amounts that violated standard medical practice.
Authorities alleged that Done Global and its affiliate, Mindful Mental Wellness, defrauded pharmacies and insurers by disguising unlawful Adderall prescriptions and submitting false claims to Medicare, Medicaid and private insurers.
"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," Special Agent in Charge Harry Chavis of IRS Criminal Investigation New York said.
If convicted, Done Global could face fines up to twice its profits or losses, with similar penalties for Mindful Mental Wellness.