U.S. jury convicts founder of ADHD startup in Adderall fraud scheme

Adderall XR capsules are displayed on Feb. 24, 2023. (AP Photo/Jenny Kane)

The founder and a former top doctor at Done Global were convicted by a San Francisco jury of conspiring to distribute Adderall and other stimulants, in the first federal prosecution of alleged illegal drug distribution by a telehealth company.

Ruthia He, who founded Done, and David Brody were each found guilty on Tuesday on two conspiracy counts and four counts of distributing controlled substances in their alleged $100 million fraud scheme. He was also convicted on an obstruction charge.

Prosecutors said He and Done used social media to entice people to pay monthly subscription fees for “easy access” to more than 40 million pills including Adderall, which treats attention deficit hyperactivity disorder, or ADHD.

Many prescriptions were not medically necessary, and hurt legitimate patients by exacerbating a nationwide Adderall shortage in 2022, prosecutors said.

The defendants were also accused of limiting clinical discretion over whether to prescribe stimulants, and conspiring to defraud Medicare and Medicaid by lying to pharmacies about Done’s prescription practices.

He and Brody could face decades in prison at their February 25, 2026, sentencing. The charges were announced in June 2024. He, a Chinese citizen, has been in federal custody since her arrest.

Lawyers for He did not immediately respond to requests for comment on Wednesday.

Valery Nechay, a lawyer for Brody, said her client may appeal. “Dr. Brody dedicated his life to caring for his patients and expanding access for treatment of ADHD,” Nechay said in an email. “He did not intend to do anything unlawful and unfortunately became a scapegoat.”

U.S. Attorney Craig Missakian in San Francisco said the prosecution began a “sustained effort” by federal investigators to root out illegal drug distribution by digital health companies.

“Medical necessity must always drive the decision to prescribe controlled substances,” Missakian said in a statement. “Ruthia He and David Brody violated that core principle.”

The case followed reporting by the Wall Street Journal about efforts by some telehealth companies to sate patient demand for controlled substances, with some Done clinicians feeling pressure to write prescriptions.

Done was not criminally charged, and now operates the website donefirst.com. It did not immediately respond to a request for comment.

The U.S. government classifies Adderall as a Schedule II controlled substance because of its high potential for abuse and dependence. Cocaine, Demerol, methamphetamine, OxyContin and Ritalin are also in that group.

Reporting by Jonathan Stempel in New York; Editing by Daniel Wallis, Reuters