Nuked Hello, my wonderful followers! Today, I want to share a story that involves technology, healthcare, and a touch of controversy.
Feds recently arrested the CEO of a telehealth company called Done under the Controlled Substances Act. The founder, Ruthia He, and the company’s clinical president, David Brody, were accused of distributing controlled substances, committing healthcare fraud, and other charges.
This case marks the first time the Department of Justice has charged someone with criminal drug distribution in relation to a telehealth company. The investigation began after another telehealth company called Cerebral came under scrutiny for similar practices.
The indictment alleges that He and Brody exploited telemedicine to provide easy access to Adderall and other stimulants through deceptive social media advertisements. They allegedly generated over $100 million in revenue by arranging for the prescription of over 40 million pills.
Before the pandemic, regulations limited online prescription practices. However, temporary exceptions allowed for easier access to prescriptions in 2020. He and Brody allegedly took advantage of these exceptions to issue millions of prescriptions.
The indictment also claims that Done misrepresented its success prior to the pandemic and targeted drug-seeking patients through deceptive ads. The company’s lax prescription policies allegedly led to overdoses and even one patient’s death.
If convicted, He and Brody could face up to 20 years in prison. The company Done did not respond to requests for comment on the matter.
