Telehealth Firm & Medical Practice Indicted in Alleged $100 Million Adderall Scheme
Key Takeaways
- Telehealth Misuse Alleged: Prosecutors say Done Global used a subscription-based telehealth model to issue stimulant prescriptions without legitimate medical purpose.
- Scale of Distribution: The indictment alleges more than 40 million Adderall pills were prescribed, generating over $100 million in revenue.
- Health Care Fraud Claims: Authorities allege false and fraudulent claims were submitted to Medicare, Medicaid, and commercial insurers.
- Pharmacy Circumvention: MMW was allegedly created to bypass pharmacies that refused to fill Done-affiliated prescriptions.
- Serious Criminal Exposure: The charges include illegal drug distribution, health care fraud, and obstruction of justice.
Deep Dive
Federal prosecutors have charged a California-based digital health company and a Florida medical practice with orchestrating what authorities describe as a sweeping scheme to illegally distribute Adderall and other stimulants through an online subscription model, allegedly generating more than $100 million in revenue while bypassing basic medical safeguards.
A federal grand jury in San Francisco returned the indictment on Tuesday, charging Done Global Inc. with conspiring to illegally distribute controlled substances, commit health care fraud, and obstruct justice. Mindful Mental Wellness (MMW), a Florida-based medical practice, was also charged for its alleged role in the scheme.
According to court filings, prosecutors allege the companies exploited telehealth tools to flood the market with Adderall, distributing more than 40 million pills over several years without legitimate medical purpose. Federal officials say the case highlights how technology intended to expand access to care was instead used to maximize profit at the expense of patient safety.
“As alleged, Done Global used lies and deceit to carry out a sophisticated and wide-ranging telehealth fraud scheme,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division, describing the conduct as both financially driven and dangerous to public health.
A Subscription Model Built Around Stimulants
Done Global marketed itself as a digital health company offering online diagnosis, treatment, and medication refills for attention deficit hyperactivity disorder (ADHD). Patients paid a monthly subscription fee in exchange for access to prescribers and medications.
But prosecutors allege the subscription model was designed to do far more than streamline care. According to the indictment, Done Global and MMW conspired to steer prescribers toward issuing Adderall and other stimulant prescriptions regardless of medical necessity, with the goal of increasing subscription revenue and inflating the company’s value.
Prescriptions were allegedly issued without proper examinations, often without a pre-existing practitioner-patient relationship, and sometimes based solely on brief video or audio calls or no direct interaction at all. In some cases, prosecutors say patients did not meet DSM-V diagnostic criteria for ADHD, posed a risk of diversion, or were prescribed dosages and combinations that fell outside accepted medical practice.
Alleged Fraud on Pharmacies and Insurers
The indictment also alleges that Done Global and MMW concealed the unlawful nature of these prescriptions from pharmacies, Medicare, Medicaid, and commercial insurers, enabling patients to obtain Adderall while triggering reimbursement payments.
By 2023, according to prosecutors, certain pharmacies began refusing to fill prescriptions written by Done-affiliated prescribers. Court documents allege that Mindful Mental Wellness was incorporated in response, allowing the operation to continue by routing prescriptions through a different entity once pharmacies started blocking them.
Federal authorities further allege that Done Global conspired to submit false and fraudulent claims to government health programs and private insurers tied to the stimulant prescriptions.
Prior Convictions and Obstruction Allegations
The indictment follows earlier convictions involving senior leadership at Done Global. Founder and CEO Ruthia He and former clinical president David Brody were previously convicted on charges including conspiracy to distribute controlled substances and conspiracy to commit health care fraud. He was also convicted of conspiracy to obstruct justice.
In the current case, prosecutors allege that Done Global continued to obstruct the investigation by altering, destroying, and concealing records after receiving a grand jury subpoena.
What the Companies Face
Done Global has been charged with conspiracy to illegally distribute Adderall, four counts of illegal distribution, conspiracy to commit health care fraud, and conspiracy to obstruct justice. If convicted, the company faces potential penalties of up to twice the gross profits or proceeds from the alleged drug distribution, as well as significant financial exposure tied to the fraud and obstruction charges.
Mindful Mental Wellness faces a charge of conspiracy to illegally distribute Adderall and, if convicted, could also face penalties tied to twice the gross profits or proceeds associated with the alleged conduct.
Federal officials emphasized that the case reflects a broader enforcement push against telehealth models that, in their view, prioritize scale and revenue over patient safety and regulatory compliance.
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