The 'biggest telehealth prosecution in US history': $100M Adderall scheme exposes a digital health crisis
Industry Buzz
These criminals turned telehealth into a pipeline for addiction, recklessly distributing controlled medications with no regard for safety, science, or the law.
—Cheri Oz, assistant administrator of the DEA
This case is a warning for anyone working in telehealth—if a business model depends on shortcuts, volume, and controlled substances, federal agencies will treat it the same as any street level drug operation.
—Cambria Nwosu, DNP, RN, LNC
The promise of telehealth has always been compelling: access to care anytime, anywhere, for patients and doctors alike. But a recent federal jury verdict out of San Francisco reveals just how fragile that promise can be when profit motives eclipse patient safety.
Ruthia He, the founder and CEO of the California-based digital health company Done, and its clinical president, David Brody, were convicted of orchestrating a $100 million scheme to distribute Adderall and other stimulants over the internet while defrauding insurers. He was also convicted of conspiring to obstruct justice. []
The case, prosecutors say, represents one of the most egregious abuses of telemedicine seen to date.
Related: Telehealth doesn’t allow for comprehensive care—here’s whyExploitation and patient vulnerabilities
Court documents reveal a scheme carefully engineered to target Americans struggling with structure during the COVID-19 pandemic.
Done (the company) allegedly spent over $40 million on social media advertising and search engine campaigns aimed at convincing individuals they might have ADHD—and that Adderall was the solution.
The defendants even installed an “auto-refill” system allowing patients to receive controlled medications for years without direct clinical interaction. Shockingly, some prescriptions were issued for deceased patients.
"These criminals turned telehealth into a pipeline for addiction, recklessly distributing controlled medications with no regard for safety, science, or the law,” said Assistant Administrator Cheri Oz of the DEA Diversion Control Division. []
Clinical integrity sacrificed for profit?
Evidence at trial showed that clinical discretion was deliberately curtailed: Initial appointments were set at less than half the length of a typical psychiatric evaluation, and nurse practitioners were paid up to $60,000 per month to refill prescriptions without seeing patients. []
Employees were allegedly incentivized to break laws, with luxury vehicles offered for adherence to the company’s “customer-first” profit model.
David Brody, Done’s clinical president, was also said to have instructed nurses to continue prescribing Adderall even to patients who were abusing other medications and to disregard the risks of legal consequences. []
Patients with bipolar disorder, Adderall-induced psychosis, and other mental health conditions were kept on medications against clinical judgment.
Related: The $400 million fraud that PBMs call 'business'Fraud beyond the patient portal
The scheme extended to insurers. He, Brody, and co-conspirators submitted false claims to Medicare, Medicaid, and commercial insurers, asserting adherence to DSM-5 diagnostic criteria, use of urine drug screens, and failed trials of non-stimulants—claims that were demonstrably false. []
These efforts resulted in insurers paying over $14 million for prescriptions that were neither medically necessary nor appropriately supervised.
When media outlets and investors questioned Done’s policies in 2022, the defendants misrepresented the company’s operations, claiming that clinical leadership was independent. Internal documents confirmed that He, who has no medical training, dictated clinical practices.
The fallout
Acting Assistant Attorney General Matthew R. Galeotti emphasized that "the verdict sends a clear message that the Criminal Division will hold accountable criminals who attempt to exploit telehealth to write illegal prescriptions for their personal gain.” []
“This case is a warning for anyone working in telehealth: If a business model depends on shortcuts, volume, and controlled substances, federal agencies will treat it the same as any street-level drug operation," said Cambria Nwosu, DNP, RN, LNC, in an Instagram Reel about the case.
For physicians, the case serves as a stark reminder of the ethical and legal boundaries inherent in telemedicine. Telehealth can enhance access and convenience, but shortcuts that compromise medical necessity, patient safety, or regulatory compliance can have devastating consequences.
He and Brody face a maximum of 20 years in prison on conspiracy to distribute controlled substances and distribution of controlled substances counts, with sentencing scheduled for February 25, 2026. As the digital health landscape expands, this case underscores the urgent need for vigilance, oversight, and a recommitment to clinical integrity in online care.[]