What you should know:
– Two executives of a Californian company telehealth business Made Inc. were arrested Thursday for allegedly running a $100 million scheme to distribute Adderall and Ritalin to illegitimate patients.
– Done’s clinical president David Brody and founder and CEO Ruthia He are accused of conspiring to provide easy access to stimulant medications through online consultations in exchange for monthly subscription fees.
– Federal investigators say Done prescribed more than 40 million stimulant pills, many without proper medical evaluation, to enrich himself. This allegedly contributed to national shortages of Adderall and Ritalin, leaving legitimate ADHD patients struggling to get their prescriptions refilled.
Fact: A Telehealth Business Built on Deception
Founded in 2020, Done offered online ADHD diagnostics, treatments, and medication refills through a subscription model. However, the indictment alleges that Done prescribed stimulants based on brief online consultations or even without any direct communication with patients.
Aggressive marketing, deceptive practices
Authorities say Done spent millions of dollars on social media marketing to attract patients, potentially targeting those seeking medication rather than legitimate treatment. The indictment suggests the scheme led to overdoses and deaths among Done members.
The rise of telemedicine fraud
Federal authorities have stressed their commitment to pursuing fraudsters who exploit telemedicine for illegal purposes. This case highlights the potential dangers associated with lax practices in the growing telemedicine industry.
“Instead of properly addressing medical needs,” DEA Administrator Anne Milgram said, “the defendants allegedly made millions promoting addictive drugs. This harms all Americans who need these drugs.”
Next steps
Brody is scheduled to make his initial court appearance in San Francisco on Thursday afternoon. The indictment was filed in the U.S. District Court for the Northern District of California.
