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:
Second Circuit Orders Resentencing in $600M Medical Billing Fraud Case
September 12, 2025 | JacobiJournal.com — A federal appeals court has affirmed the conviction of a Long Island medical biller who orchestrated a $600 million medical billing fraud scheme but sent the case back to the trial court for resentencing. The ruling underscores the judiciary’s continued focus on accountability in one of the largest medical billing fraud cases ever prosecuted. Conviction Upheld, But Sentencing Reconsidered The Second Circuit panel ruled that the evidence of fraud was overwhelming, leaving no question about the defendant’s guilt. However, the court determined that errors in the original sentencing required the case to be remanded for further review. The decision leaves the conviction intact while opening the door for a new assessment of the punishment. $600 Million Fraud Scheme Detailed According to federal prosecutors, the biller submitted fraudulent insurance claims totaling hundreds of millions of dollars and went so far as to impersonate professional athletes, including an NBA player and NFL figures, to further the scheme. The elaborate fraud exploited weaknesses in the medical billing system, resulting in one of the largest recoveries ever pursued in a single case. Broader Implications for Health Care Fraud Enforcement Legal analysts say the ruling highlights the importance of strong sentencing procedures in health care fraud cases. It also reinforces the government’s aggressive stance against schemes that threaten the stability of insurance systems and increase costs for policyholders nationwide. With medical billing fraud continuing to rise, this case may set a standard for future prosecutions. For official documentation and case details, readers can review filings at the U.S. Court of Appeals for the Second Circuit. FAQs: $600M Medical Billing Fraud Case What was the fraud about? The defendant submitted fraudulent insurance claims worth approximately $600 million, using false identities and impersonations to support the scheme. What did the Second Circuit decide? The appeals court affirmed the conviction but remanded the case for resentencing due to procedural errors in the original judgment. Why is resentencing significant? It ensures sentencing procedures meet federal standards, giving the defendant a fair hearing while maintaining accountability for large-scale fraud. How does this affect future health care fraud cases? The ruling reinforces both the seriousness of medical billing fraud and the need for careful sentencing, likely influencing how future fraud prosecutions are handled. Stay informed on major insurance fraud and health care litigation by subscribing to JacobiJournal.com. 🔎 Read More from JacobiJournal.com: