Founder and Clinical President of Digital Health Company Convicted in $100M Adderall Fraud
November 26, 2025 | JacobiJournal.com — A federal jury in San Francisco has convicted Ruthia He, founder and CEO of California-based digital health company Done, and David Brody, the company’s clinical president, for orchestrating a multi-million-dollar online Adderall distribution and health care fraud scheme. The case exposed how telehealth can be exploited to bypass medical safeguards and submit fraudulent claims to insurers. How the Digital Health Scheme Operated He and Brody allegedly built a digital health business model centered on subscription-based access to Adderall and other stimulants. Investigators found that the company: The scheme reportedly dispensed over 40 million pills and generated illegal revenue exceeding $100 million, including approximately $14 million obtained from Medicare, Medicaid, and commercial insurers through fraudulent claims. Why Regulators Took Action Federal authorities emphasized the danger to patient safety and integrity of the health care system. Statements from the DEA, HHS-OIG, and the Justice Department described the defendants’ actions as: The case demonstrates the risks of digital health platforms that lack adequate oversight and how these systems can be misused to commit large-scale prescription fraud. What This Means for Patients and the Industry This conviction underscores several critical lessons for telehealth and digital medicine: Medical necessity must guide prescriptions: Doctors and providers cannot prioritize revenue over patient care. Health care providers, patients, and investors should be aware that telehealth innovation does not excuse compliance failures or abuse. For more information on federal enforcement and health care fraud investigations, the Department of Justice Health Care Fraud Unit provides updates here. FAQs: Digital Health Adderall Fraud How did the digital health company distribute Adderall illegally? The company used online subscriptions, auto-refill features, minimal clinical interaction, and paid nurses to refill prescriptions without proper oversight. What penalties do the convicted executives face? Ruthia He and David Brody each face up to 20 years in prison on controlled substance charges, as well as additional penalties for health care fraud and obstruction of justice. How did the defendants defraud insurers? They submitted false prior authorization requests claiming adherence to DSM-5 protocols and urine drug testing, which caused Medicare, Medicaid, and commercial insurers to pay over $14 million. Why is this case important for telehealth regulation? It highlights the risks of unchecked digital health platforms and emphasizes that patient safety and compliance must guide telehealth practices. Stay informed on health care fraud and telehealth abuse. Subscribe to JacobiJournal.com for exclusive investigative reports and timely updates. 🔎 Read More from JacobiJournal.com:
New Hampshire Man Indicted for $700,000 California Unemployment Fraud
November 24, 2025 | JacobiJournal.com – A federal grand jury has returned a 10-count indictment against Anthony Mark Silva, 40, from Manchester, New Hampshire, for a massive California unemployment fraud scheme. Silva faces nine counts of bank fraud and one count of aggravated identity theft, related to false claims filed with the California Employment Development Department (EDD). How Silva Orchestrated the Fraud Between July 2020 and June 2021, Silva allegedly collected personally identifiable information—including names, birth dates, and Social Security numbers—to submit fraudulent unemployment claims. These claims targeted Pandemic Unemployment Assistance and other CARES Act benefits. Many “claimants” were not unemployed or eligible for California unemployment benefits, and Silva did not have authorization to file on their behalf. What the Scheme Cost Taxpayers EDD approved dozens of Silva’s fraudulent claims and authorized Bank of America to issue debit cards loaded with unemployment benefits. Silva reportedly activated these debit cards and spent the funds personally, resulting in actual losses exceeding $700,000. Why Authorities Are Taking Action This case was investigated by the U.S. Department of Labor Office of Inspector General and EDD’s Investigation Division. Prosecutors warn that COVID-19 relief programs remain a target for fraud, highlighting the need for robust identity verification and oversight. Silva faces a statutory maximum of 30 years in prison for the bank fraud counts and a mandatory two-year consecutive sentence for aggravated identity theft if convicted. Ensuring Stronger Safeguards in Unemployment Benefits Federal authorities continue to tighten fraud detection measures, particularly for programs like Pandemic Unemployment Assistance. The indictment serves as a reminder that unemployment benefits, while vital for Californians, are vulnerable to organized schemes. For more details on the case, visit the official U.S. Department of Justice press release here. FAQs: California Unemployment Fraud Who is charged in this California unemployment fraud case? Anthony Mark Silva, 40, of Manchester, New Hampshire, was indicted for nine counts of bank fraud or unemployment fraud and one count of aggravated identity theft. How much money was stolen in the scheme? Authorities report that Silva’s fraudulent claims caused losses exceeding $700,000. Which benefits were targeted in the unemployment fraud? Pandemic Unemployment Assistance and other CARES Act-related unemployment benefits. What penalties could Silva face if convicted? He faces up to 30 years in prison for bank fraud counts and an additional two-year mandatory sentence for aggravated identity theft, plus fines up to $1 million per count. Stay ahead of fraud schemes—subscribe to JacobiJournal.com for real-time investigative updates. 🔎 Read More from JacobiJournal.com:
Deliveries Scam Plea Entered by California DoorDash Driver
May 16, 2025 | JacobiJournal.com – DoorDash delivery scam leads to $2.5M fraud plea: A former DoorDash driver has pleaded guilty in federal court to orchestrating a sophisticated fraud scheme that exploited the platform’s internal systems. The DoorDash delivery scam, which spanned from 2020 to 2021, resulted in over $2.5 million in losses and revealed alarming vulnerabilities within the gig economy’s infrastructure. Prosecutors said the driver used insider access and backend manipulation to reroute high-value customer orders, triggering automated payments for services never rendered. How DoorDash Delivery Scam Exploited Insider Access to Steal Millions Sayee Chaitanya Reddy Devagiri, 30, of Newport Beach, California, entered a guilty plea on Tuesday in San Jose federal court to one count of conspiracy to commit wire fraud. Prosecutors said Devagiri conspired with three others between 2020 and 2021 to exploit DoorDash’s internal systems for personal gain. Specifically, Devagiri used customer accounts to place expensive orders. He then accessed DoorDash’s backend software using credentials from a cooperating employee. After that, he reassigned the orders to fraudulent driver accounts he and his co-conspirators controlled. Orders Marked as Delivered—But Never Were Once the orders were rerouted, Devagiri falsely marked them as delivered. This action triggered automatic payments from DoorDash to the fake driver accounts. To repeat the fraud, he reset the order status from “delivered” to “in process” and rerouted the same orders back to those accounts. Notably, the scam relied heavily on insider access, allowing Devagiri and others to bypass typical safeguards. As a result, the group repeatedly collected payments for services they never provided. Deliveries Scam Plea Additional Guilty Pleas Reveal Coordinated Plot The now-former DoorDash employee who supplied system access pleaded guilty in November 2023 to conspiracy to commit wire fraud. He admitted to helping execute the fraud scheme. Devagiri is now the third person convicted in this wide-reaching conspiracy. Sentencing Scheduled for September Devagiri faces up to 20 years in federal prison and a $250,000 fine. His sentencing is set for September 16. The case raises urgent questions about how delivery platforms can better protect internal systems from misuse. Get the full details directly from the U.S. Department of Justice. FAQs: How did the DoorDash delivery scam work? The scam involved a former DoorDash driver who, with insider help, accessed backend systems to reroute high-value orders to fake driver accounts. These orders were falsely marked as delivered, triggering automatic payments from DoorDash for undelivered services. The scheme ultimately defrauded the company of more than $2.5 million. What vulnerabilities did the DoorDash delivery scam expose? The DoorDash delivery scam revealed critical weaknesses in internal system safeguards, particularly the risks posed by employee access to backend software. It highlighted the need for stronger cybersecurity controls in gig economy platforms to prevent similar insider-led fraud schemes. What could have happened if the DoorDash delivery scam remained undetected? If the DoorDash delivery scam had gone unnoticed, fraudulent payouts could have continued unchecked, resulting in significantly higher financial losses and compromised customer trust. It would have also signaled to bad actors that gig economy platforms are vulnerable, potentially encouraging similar insider schemes across the industry. Exposing the fraud was critical to preserving operational integrity, deterring future abuse, and prompting stronger cybersecurity reforms. Where can I report suspected delivery platform fraud like the DoorDash delivery scam? If you suspect fraudulent activity involving delivery platforms, you can report it to the National Center for Disaster Fraud (NCDF) via the DOJ’s hotline at 866-720-5721 or through the online complaint form at justice.gov/disaster-fraud. For corporate fraud or insider schemes, tips can also be submitted to the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov. Prompt reporting helps prevent further abuse and protects consumers and companies alike. Stay informed on emerging fraud schemes and compliance risks in the gig economy. Subscribe to JacobiJournal.com for expert updates on federal prosecutions, platform vulnerabilities, and regulatory crackdowns. 🔎 Read More from JacobiJournal.com: