December 10, 2025 | JacobiJournal.com — In a high-profile case highlighting the dangers of unregulated telemedicine, two top executives of a California digital health company have been convicted in a $100 million Adderall distribution fraud scheme. Ruthia He, the company’s founder and CEO, along with David Brody, the clinical president, were found guilty of illegally distributing stimulants online and submitting fraudulent health care claims. Authorities say the scheme not only defrauded federal programs but also endangered patients by creating an unmonitored pipeline for controlled substances.
How the Adderall Distribution Fraud Scheme Operated
Federal prosecutors in San Francisco announced that Ruthia He, founder and CEO of Done, and David Brody, the company’s clinical president, were convicted for orchestrating a massive Adderall distribution fraud. The executives ran an online telehealth platform, misleading patients into subscribing for Adderall and other stimulant medications.
Authorities reported that the defendants submitted fraudulent claims to health care programs while simultaneously targeting patients through social media advertising. Over the course of the scheme, Done distributed tens of millions of pills, generating profits while endangering public safety. He was also convicted of conspiring to obstruct justice.
Why Telehealth Became a Vehicle for Fraud
Investigators noted that telehealth platforms, while designed to increase access to care, can be exploited if proper oversight is absent. He and Brody allegedly took advantage of lax online prescription regulations, offering easy access to controlled substances without thorough medical evaluation.
Officials warn that these practices undermine trust in digital health solutions and highlight the importance of strict telemedicine compliance. “Patient safety must never be compromised for profit,” emphasized Acting Assistant Attorney General Matthew D. Galeotti.
What Officials Are Saying About the Case
U.S. Attorney Craig H. Missakian stated that the convictions “underscore the ethical responsibility of medical professionals to prioritize patient wellbeing over financial gain.” DEA and HHS-OIG investigators added that this is one of the largest telehealth-related controlled substance fraud cases in recent history.
The case also reflects the growing need for federal and state regulators to monitor online prescription practices, especially as digital health services continue to expand nationwide.
How Patients and the Health Care System Were Impacted
The Adderall distribution fraud carried out by the company had serious consequences for patients, including increased risks of addiction, misuse, and overdose. Health care programs were defrauded as the company submitted millions of dollars in false claims. Experts warn that this case serves as a cautionary tale for patients using online health services and for regulators working to protect public health.
Read the full official DOJ press release here for detailed information.
FAQs: $100M Adderall Fraud Case
Who were convicted in the $100M Adderall distribution fraud case?
Ruthia He, CEO of Done, and David Brody, the company’s clinical president, were convicted for illegal Adderall distribution and health care fraud.
How did the company illegally distribute Adderall?
The executives used an online telehealth platform and social media advertising to offer subscriptions for Adderall, bypassing proper medical evaluation.
Which government agencies investigated the case?
DOJ, DEA, HHS-OIG, IRS Criminal Investigation, and the Northern District of California U.S. Attorney’s Office led the investigation.
What were the consequences of the Adderall distribution fraud for patients and the health care system?
The Adderall distribution fraud exposed patients to risks of addiction, misuse, and overdose, while health care programs were defrauded of millions of dollars through false claims. This case highlights the need for stronger oversight of telehealth services and controlled substance prescriptions.
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