The CEO and clinical president of a digital behavioral health company were arrested Thursday over allegations concerning Adderall distribution, according to the Justice Department.
Done Founder and CEO Ruthia He and Clinical President David Brody face seven counts related to healthcare fraud, controlled substance distribution and obstruction of justice in an indictment filed Wednesday in a California federal court.
Read more: Amended DOJ complaint targets Cerebral founder’s latest venture
Done, sometimes known as Done Global or Done Health, is a hybrid startup that connects members with clinicians who can prescribe medications to treat attention deficit hyperactivity disorder. The company allegedly generated more than $100 million in revenue and allegedly arranged for the prescription of more than 40 million pills, the Justice Department said in a news release.
He and Brody allegedly conspired to provide prescriptions that were not for legitimate medical purposes — sometimes allegedly without any video or audio communication, according to court documents.
The two allegedly issued a policy that prescribers were not required to have follow-up encounters with members and allegedly paid prescribers solely on "patient load," the indictment said.
"He and others caused Done to acquire thousands of Done members by, among other things, spending tens of millions of dollars on deceptive social media advertisements, intentionally targeting drug-seeking patients, and advertising that members could obtain easy access to prescriptions for Adderall and other stimulants in exchange for payment of a monthly subscription fee," the indictment reads.
He, Brody and others also allegedly altered, detroyed and worked to conceal records, documents and communications from a grand jury after receiving a subpoena, court documents said.
If convicted, He and Brody face up to 20 years in prison on the conspiracy to distribute controlled substances and distribution of controlled substances counts, the Justice Department said in the release.
He and Brody did not immediately respond to requests for comment.
A spokesperson for Done declined to comment.
The filing is the latest action from the Justice Department targeting digital behavioral health companies. Through a referral by the Federal Trade Commission, DOJ filed an amended complaint on Friday aimed at Cerebral co-founder Kyle Robertson’s latest telehealth venture.
