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

In a significant legal development, Ruthia He, founder and CEO of Done Global Inc., and David Brody, the clinical president of Done Health P.C., were arrested for their roles in an alleged $100 million scheme involving the distribution of Adderall and other stimulants through telemedicine. This marks the Justice Department’s first criminal drug distribution prosecution related to a digital health company.

Allegations and Scheme Details:
He and Brody are accused of exploiting the COVID-19 pandemic to fraudulently distribute controlled substances and commit health care fraud. They allegedly generated over $100 million in revenue by arranging for the prescription of more than 40 million pills of Adderall and other stimulants. The indictment claims the duo conspired to provide easy access to these drugs in exchange for monthly subscription fees, thereby enriching themselves unlawfully.

The charges state that Done Global used deceptive advertising on social media to attract subscribers and structured their platform to facilitate access to these drugs, often bypassing legitimate medical needs. This included limiting the information available to prescribers, instructing them to prescribe stimulants regardless of medical necessity, and implementing an “auto-refill” function to maximize profits.

Impact and Enforcement:
Attorney General Merrick B. Garland emphasized the defendants’ exploitation of telemedicine to further their scheme, highlighting the Justice Department’s commitment to holding such entities accountable. Homeland Security Secretary Alejandro N. Mayorkas condemned the defendants for prioritizing profit over patient care, stressing the importance of maintaining trust in the healthcare system. The indictment also alleges that He and Brody obstructed justice by destroying documents and using encrypted messaging to avoid detection. This further complicates the legal proceedings against them, as they are accused of intentionally hiding their fraudulent activities.

Legal Consequences:
If convicted, He and Brody each face a maximum penalty of 20 years in prison for conspiracy to distribute controlled substances and related charges. The DEA, HHS-OIG, HSI, and IRS Criminal Investigation are actively investigating the case to ensure that justice is served.

For further information or assistance on healthcare compliance and legal matters, please contact Parrella Health Law at 857.328.0382 or email me directly at cparrella@parrellahealthlaw.com. Our team is dedicated to providing expert legal guidance and support to ensure your practice adheres to all regulatory requirements.

Christopher Parrella, ESQ, CPC, CHC, CPCO, is the founding partner of Parrella Health Law in Boston, Mass. The firm focuses exclusively on healthcare defense and compliance matters. Chris also travels the country on behalf of a wide range of healthcare organizations, lecturing on a variety of health care enforcement and compliance topics. Chris is one of a handful of health care attorney’s that are also Certified Professional Coders (CPC) and is a member of the AAPC’s National Legal Advisory Board and Ethics Committee.  He is also a Certified Professional Compliance Officer (CPCO) and Certified in Health Care Compliance (CHC.)