Telehealth execs accused of $100 million Adderall fraud.
US police have arrested the founder and CEO of a telehealth company, accusing him of conducting a $100 million (£78 million) scheme to fraudulently distribute over 40 million Adderall and other prohibited narcotics.
US Attorney General Merrick Garland stated that Done CEO Ruthia He plotted with the company's clinical president, David Brody, "to provide easy access to Adderall and other stimulants for no legitimate medical purpose".
America's top law officer stated that the executives misused telemedicine laws that were relaxed during the Covid outbreak.
Done Global, a San Francisco-based start-up, gained popularity during the pandemic as an online means to purchase Adderall for a monthly subscription price.
Ms He was arrested in Los Angeles, and Dr. Brody in San Rafael, California, according to officials.
They are charged with distributing controlled narcotics. They could face up to 20 years in prison if found guilty. Adderall is a medicine that helps treat ADHD symptoms, such as difficulty focusing on a single task.
The allegations come amid a nationwide shortage of the medicine.
Nicole Argentieri, Principal Deputy Assistant Attorney General, accused the couple of "spending millions on deceptive advertisements on social media".
"These charges are the Justice Department's first criminal drug distribution prosecutions related to telemedicine prescribing through a digital health company," Ms Argentieri said in a press release.
Part of the alleged strategy involved raising the subscription cost, so increasing the company's value in order to "unlawfully enrich themselves".
The defendants also allegedly limited the information available to prescribers and directed them to prescribe drugs to patients who did not meet medical criteria.
They also purportedly required Done patients to do an initial screening with the prescriber for no more than thirty minutes.
The authorities claim that they maintained the illicit operation "even after being made aware that material was posted on online social networks about how to use Done to obtain easy access to Adderall and other stimulants, and that Done members had overdosed and died" .
They are also accused of defrauding government healthcare assistance programs such as Medicare and Medicaid, as well as pharmacies, of at least $14 million, and of conspiring to impede justice by destroying documents and emails.
