By: Christopher Parrella, Esq., CPC, CHC, CPCO
Parrella Health Law, Boston, MA
A Health Care Provider Defense and Compliance Firm

In a first-of-its-kind prosecution, a San Francisco federal jury has convicted two digital health executives for orchestrating a nationwide scheme to distribute Adderall and other stimulants through deceptive telemedicine practices. After three days of deliberation, the jury found Done Global founder and CEO Ruthia He and Done Health clinical president David Brody guilty on charges that included conspiracy to distribute controlled substances, distribution of controlled substances, healthcare fraud, and obstruction of justice.

This is not just another fraud case. It represents a new enforcement era where the Department of Justice is willing to merge its two most aggressive priorities, controlled-substance enforcement and healthcare fraud, into a single blueprint aimed squarely at digital health, telemedicine platforms, and remote prescribing models.

According to the indictment, He and Brody operated a subscription-based service that promised easy, fast, and often medically unsupported access to ADHD medications. The company charged monthly fees, generated over $100 million since the pandemic began, and facilitated the prescribing of 40 million stimulant pills over a three-year period. Prosecutors allege the company intentionally exploited emergency telehealth flexibilities, targeted individuals seeking stimulant access, instructed clinicians to prescribe medication to patients who did not meet diagnostic criteria, discouraged follow-up care, and paid prescribers based on prescription volume. The government also linked approximately $14 million in fraudulent claims to Medicare, Medicaid, and commercial insurers.

For legitimate providers, this case should be flashing in red. Telehealth prescribing of controlled substances is already under intense regulatory scrutiny, especially with the DEA preparing new permanent rules. A conviction at this scale gives prosecutors a roadmap they will not hesitate to use again. Any organization prescribing stimulants, benzodiazepines, or MAT medications via telehealth needs to reassess its risk profile immediately.

This is your call to action. Audit your controlled-substance prescribing protocols now. Confirm that diagnoses are clinically supported and documented with sufficient detail. Eliminate any compensation structure tied to prescription volume. Strengthen follow-up requirements, continuity-of-care protocols, and identity verification procedures. Review all marketing content for accuracy, medical appropriateness, and compliance with federal advertising standards. Ensure your telehealth workflows reflect genuine clinical decision-making rather than automated or incentive-driven systems. And prepare for the DEA’s upcoming permanent framework, which will almost certainly tighten requirements.

This verdict will have ripple effects across telemedicine, payer audits, DEA enforcement, state medical boards, and digital health investment trends. Providers who take proactive steps now will be far better positioned to withstand the increased scrutiny that is unquestionably coming.

If you have any questions or comments about the subject of this blog, please contact Parrella Health Law at 857.328.0382 or Chris directly at cparrella@parrellahealthlaw.com.