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| Photo: Jenny Kane/Associated Press |
The founder and clinical president of Done Global allegedly orchestrated a scheme to profit from Adderall prescriptions
The founder and head doctor of telehealth company Done Global were arrested and charged with fraud, accused by federal authorities of conspiring to provide easy access to Adderall and other stimulants.
Done founder Ruthia He and clinical leader David Brody allegedly arranged for the prescription of more than 40 million stimulant pills and targeted “drug seekers,” spending tens of millions of dollars on “deceptive” social-media advertising, according to the Justice Department.
The executives “conspired to defraud pharmacies and Medicare” and other insurers, and He and others at the company allegedly made false claims about Done’s prescribing practices to pharmacies to get prescriptions filled. The government also accused He and Brody of obstruction of justice. The startup collected more than $100 million in revenue, the Justice Department alleged.
“These defendants exploited the COVID-19 pandemic to develop and carry out a $100 million scheme to defraud taxpayers and provide easy access to Adderall and other stimulants for no legitimate medical purpose,” Attorney General Merrick Garland said in a written statement. The department will pursue others seeking to profit from addiction by illegally distributing controlled substances online, he said.
Attempts to reach Ruthia He were unsuccessful. She was scheduled to be arraigned Thursday in Los Angeles.
In a brief appearance in federal court Thursday in San Francisco, Brody pleaded not guilty. Addressed as “Mr. Brody” by the judge, he interrupted and said: “Doctor Brody, please.” As a condition for his release, he agreed not to prescribe controlled substances.
“Dr. Brody worked to promote access to medical treatment for those with ADHD in the face of both widespread stigma and the unprecedented challenges of a global pandemic,” Brody’s lawyer said in a written statement. “We look forward to presenting his case in court.” --->READ MORE HERE (or HERE)
Three individuals, Teldrin Foster, John Gaines, and Carla Jackson, were recently sentenced for their roles in a scheme to steal Paycheck Protection Program (PPP) funds during the COVID-19 pandemic, according to US Attorney Ryan Buchanan, Northern District of Georgia. A total of 23 individuals have been convicted in connection with this fraudulent scheme.
U.S. Attorney Ryan K. Buchanan stated, "Foster, Gaines, and Jackson, along with 20 other defendants, exploited a relief program meant to help small businesses during the pandemic. Their sentences demonstrate that fraud against the government will not be tolerated."
Keri Farley, Special Agent in Charge of FBI Atlanta, emphasized, "COVID-19 relief loans were intended to support struggling businesses, not for personal gain. The FBI will hold accountable those who misuse taxpayer dollars."
From April to August 2020, Foster collaborated with co-defendant Darrell Thomas and others to secure 14 fraudulent PPP loans totaling over $11 million. These loans falsely claimed businesses had employees and payroll expenses. Gaines obtained a fraudulent loan of $806,710 for a fictitious business, and Jackson laundered over $300,000 of the stolen funds.
The sentences are as follows: --->READ MORE HEREFollow links below to relevant/related stories and resources:
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