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

Federal prosecutors have now indicted Done Global itself following the criminal convictions of its founder and CEO Ruthia He and its clinical president David Brody. This move matters. It confirms that the government is no longer limiting its focus to individual executives. It is now willing to indict the corporate entity when a telehealth business model is built around controlled substance volume deceptive marketing and weak clinical guardrails.

According to the Department of Justice, a San Francisco grand jury charged Done Global for participating in a sweeping healthcare fraud conspiracy that allegedly pushed more than 40 million Adderall pills through a subscription-based telehealth platform generating over $100 million in revenue. Prosecutors allege the company and its sister entity Mindful Mental Wellness used aggressive pandemic era advertising to convince patients they needed ADHD treatment then funneled them through abbreviated audio or video encounters that resulted in stimulant prescriptions often without a meaningful doctor patient relationship.

This indictment comes just one month after the convictions of He and Brody on multiple counts including conspiracy to distribute controlled substances, healthcare fraud and obstruction of justice. Prosecutors described the case as the first criminal drug distribution prosecution tied directly to telemedicine prescribing through a digital health company. That distinction is important. The government is making clear that telehealth is not a shield from traditional drug trafficking and fraud theories. What makes this case especially instructive for providers is how ordinary the underlying business model looks on paper. Monthly subscription fees Online intake Short virtual visits Automated refills Performance driven clinician compensation National marketing campaigns. None of those elements are illegal standing alone. What turns them into criminal exposure is how they are combined and what incentives they create.

Prosecutors allege nurse practitioners were paid as much as $60,000 per month to refill prescriptions without seeing patients. They allege marketing was designed to steer consumers toward stimulant treatment rather than clinical evaluation. They allege prescriptions were issued to Medicare and Medicaid beneficiaries without an established physician relationship. And they allege leadership prioritized growth and revenue over clinical oversight and diversion control. When volume driven incentives replace medical judgment prosecutors are prepared to characterize that conduct as criminal distribution not regulatory noncompliance.

For legitimate providers, this case should prompt immediate self-assessment. If you operate a telehealth platform or prescribe controlled substances remotely, you should assume that regulators will now view your model through the lens of this prosecution. That includes your marketing language your intake process your clinician compensation structure your refill protocols and your documentation of medical necessity.

Here is the call to action. Providers should immediately review whether any part of their telehealth model incentivizes prescription volume over clinical judgment. Eliminate compensation tied to refills or medication counts. Ensure that every controlled substance prescription follows a documented clinical evaluation that supports diagnosis and necessity. Strengthen identity verification follow up care and diversion monitoring. Scrub all marketing for claims that could be interpreted as steering patients toward specific drugs. And prepare now for the DEA’s permanent telehealth prescribing framework which will almost certainly tighten requirements further.

The Done Global indictment makes one thing clear. Telehealth is now firmly inside the criminal enforcement box when controlled substances are involved. Providers who treat this as a compliance exercise rather than a business growth strategy will be far better positioned than those who assume the pandemic era rules will continue to protect them. If you have any questions or comments about the subject of this blog or want help stress testing your telehealth and controlled substance compliance model please contact Parrella Health Law at 857.328.0382 or Chris directly at cparrella@parrellahealthlaw.com.