A federal jury in San Francisco has convicted Ruthia He, the founder and CEO of Done, a California-based digital health company, and David Brody, its clinical president, for their roles in a years-long scheme to illegally distribute Adderall over the internet and conspire to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants.
Ruthia He was also convicted of conspiring to obstruct justice.
According to court documents and evidence presented at trial, He and Brody conspired with others to build a billion-dollar technology company and raise money from investors by providing easy access to over 40 million pills of Adderall and other stimulants in exchange for payment of a monthly subscription fee.
He and Done spent over $40 million on deceptive advertisements on social media networks that sought to convince Americans challenged by a lack of structure during the COVID-19 pandemic that they were suffering from ADHD.
Defendants also paid for targeted keyword search advertisements for drug seekers who wanted to obtain Adderall without a legal prescription.
The evidence at trial showed that He and Brody sought to place “hard limits” on clinical discretion by limiting the length of the initial appointment to less than half the length of a typical psychiatric examination, and seeking to increase profits by refusing to pay for any follow-up treatment.
To facilitate illegal prescriptions, he paid nurse practitioners around the country up to $60,000 per month to refill prescriptions without clinical interaction. He enabled an “auto-refill” technology that allowed patients to receive prescriptions for years without clinical interaction, automatically generating an email each month to request additional prescriptions.
The auto-refill policy, in some instances, resulted in prescriptions being issued for deceased patients.
He instructed employees that successful technology companies profit from addiction, and offered an expensive luxury electric vehicle to employees who broke the law. Brody told nurses to continue prescribing Adderall, even to patients who were abusing other medications, and to disregard the risk of going to jail.
He and Brody also prohibited independent clinical practitioners from discharging patients, and patients were not discharged and continued to receive Adderall even after concerned family members repeatedly notified Done that their children were suffering from bipolar, Adderall-induced psychosis, or other mental health conditions that continued prescriptions could worsen.
To ensure members continued paying monthly subscription fees, He, Brody, and others conspired to defraud insurers so that Done members could use insurance to pay for Adderall dispensed at pharmacies. He, Brody, and others submitted false and fraudulent prior authorisation requests to insurers, which claimed that Done followed the DSM-5 in diagnosing ADHD, utilised urine drug screens, and falsely claimed that non-stimulants had previously been tried without success.
As a result, Medicare, Medicaid, and the commercial insurers paid approximately $14 million.
In 2022, national media outlets reported that Done was making Adderall too easy to get online. In response to questions from the media, investors, and certain major pharmacy chains, the defendants made deceptive statements about Done’s policies.
While internal documents showed that the defendants followed a “customer-first” philosophy where they attempted to obtain customer approval ratings higher than America’s highest-rated retailers, offered second opinions to patients who complained of being denied Adderall, and that He – who had no medical training – ultimately was responsible for approving clinical practices, The defendants falsely denied the existence of these policies and claimed Done was run by independent clinical leadership.
To obstruct the government’s investigation, the evidence at trial showed that He moved operations to China, making personnel and evidence unavailable.
He limited her communications on company platforms, used encrypted messaging apps with disappearing messages, and deleted incriminatory documents, such as language encouraging Done providers to provide Adderall even to patients who did not have ADHD.
He also transferred over $1 million to a Chinese shell company named Make Believe Asia, conducted internet searches for countries without extradition, and was stopped by law enforcement while leaving the country.
He and Brody were both convicted of one count of conspiracy to distribute controlled substances, four counts of distribution of controlled substances, and one count of conspiracy to commit health care fraud. He was also convicted of one count of conspiracy to obstruct justice.
He and Brody each face a maximum penalty of 20 years in prison on the conspiracy to distribute controlled substances and distribution of controlled substances counts. Sentencings are set for Feb. 25, 2026. Judge Breyer will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“These defendants carried out a $100 million scheme to unlawfully provide easy online access to Adderall and other stimulants by targeting drug seekers, engaging in deceptive advertising, and putting profits above patient care,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division.
Not all drug dealers operate in the shadows or on street corners, according to U.S. Attorney Craig H. Missakian for the Northern District of California.
“Some, like Ruthia He and David Brody, use computers and social media instead. Doctors take an oath to do no harm. David Brody and other doctors were only too willing to sell their integrity to He and put money ahead of patient well-being,” stated Missakian. “Medical necessity must always drive the decision to prescribe controlled substances like Adderall and other stimulants. Ruthia He and David Brody violated that core principle when they exploited telehealth rules to push prescription medication and hurt patients in the process.”
Missakian added, “This prosecution marks the beginning of a sustained effort. Digital health companies that engage in unlawful drug distribution should take notice that they will not escape accountability.”
