A federal grand jury in San Francisco has returned an indictment accusing California-based Done Global Inc. of playing a central role in a yearslong scheme to illegally distribute Adderall through online prescriptions, commit health care fraud, and obstruct justice.
A Florida medical practice, Mindful Mental Wellness P.A., was also charged for its alleged involvement in the operation.
“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” said Harry T. Chavis, special agent in charge of IRS Criminal Investigation New York. “This was a brazen scheme of staggering proportions while also putting individual lives at risk.”
“As alleged, Done Global used lies and deceit to carry out a sophisticated telehealth fraud scheme, obtaining over $100 million in the process,” said Matthew R. Galeotti, acting assistant attorney general in the Department of Justice’s Criminal Division. “From feeding addiction to stealing public funds, rampant health care fraud victimizes our citizens and must be stopped.”
According to court documents, Done Global promoted itself as a digital health company offering diagnosis, treatment, and prescription refills for attention deficit hyperactivity disorder through a monthly subscription model.
Prosecutors allege Done Global and Mindful Mental Wellness conspired to provide easy access to Adderall and other stimulant medications without a legitimate medical purpose, aiming to boost subscription revenue and increase company value.
The indictment claims the companies arranged for the prescription of more than 40 million Adderall and other stimulant pills, generating over $100 million in revenue.
Authorities say prescriptions were issued without proper medical oversight and were submitted to pharmacies and insurers using false representations.
Done Global and Mindful Mental Wellness are also accused of defrauding Medicare, Medicaid, and commercial insurers by hiding the unlawful nature of the prescriptions.
By 2023, some pharmacies reportedly stopped filling prescriptions connected to Done Global, which prosecutors say led to the creation of Mindful Mental Wellness as a way to bypass those restrictions.
Prosecutors further allege that Done Global conspired to alter, destroy, and conceal records after receiving a grand jury subpoena.
The company’s founder and chief executive officer, Ruthia He, along with former clinical president David Brody, were previously convicted on charges that included conspiracy to distribute controlled substances, unlawful distribution of controlled substances, health care fraud, and obstruction of justice.
Done Global now faces charges that include conspiracy to illegally distribute Adderall, multiple counts of illegal distribution, conspiracy to commit health care fraud, and conspiracy to obstruct justice.
If convicted, the company could face penalties that include fines tied to gross profits or losses. Mindful Mental Wellness faces similar penalties related to illegal distribution.
Federal prosecutors noted that since 2007, the Department of Justice Health Care Fraud Strike Force Program has charged more than 5,800 defendants, involving over $30 billion in alleged fraudulent billings to federal health programs and private insurers.
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