The U.S. Department of Justice (DOJ) announced the arrest of Ruthia He, founder and CEO of Done Global Inc., and David Brody, clinical president of Done Health P.C., for their alleged involvement in a $100 million scheme involving illegal Adderall distribution, healthcare fraud, and obstruction of justice.
Key Details of the Case:
Ruthia He was arrested in Los Angeles and will make her initial court appearance at 1:30 p.m. PDT.
David Brody was arrested in San Rafael, California, and will appear in court at 10:30 a.m. PDT in San Francisco.
The arrests were part of an investigation involving Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), and other federal agencies.
Allegations:
He and Brody are accused of distributing Adderall and other stimulants via telemedicine without legitimate medical purposes, exploiting the COVID-19 pandemic to push prescriptions.
The scheme reportedly generated over $100 million in revenue by prescribing more than 40 million pills through deceptive advertisements and a subscription model.
The defendants are also charged with submitting false claims to Medicare, Medicaid, and commercial insurers, causing them to pay approximately $14 million.
The indictment includes accusations of obstructing justice by deleting documents and using encrypted messaging to evade subpoenas.
Statements from Officials:
Secretary of Homeland Security Alejandro N. Mayorkas stated, “The individuals charged today allegedly disregarded the first rule of medical care—do no harm—in order to maximize profits.”
Attorney General Merrick B. Garland remarked, “Those seeking to profit from addiction by illegally distributing controlled substances over the internet should know that they cannot hide their crimes and that the Justice Department will hold them accountable.”
Principal Deputy Assistant Attorney General Nicole M. Argentieri emphasized the historic nature of these charges as the DOJ’s first criminal prosecutions related to telemedicine prescribing through a digital health company.
Impact and Further Actions:
The case highlights the exploitation of telemedicine rules during the pandemic, leading to addiction and overdoses among users.
The DEA, HHS-OIG, HSI, and IRS Criminal Investigation are continuing their investigations.
The DOJ’s Health Care Fraud Strike Force, which has charged over 5,400 defendants since 2007, is involved in prosecuting the case.
A hotline has been established for patients and medical professionals to report related illegal conduct.
If convicted, He and Brody each face up to 20 years in prison for the conspiracy to distribute controlled substances and related charges. The investigation and legal proceedings will continue to unfold as the DOJ and other agencies work to address this significant healthcare fraud and illegal drug distribution scheme.–News Desk