A federal jury in San Francisco has found the founder and CEO of a rapidly expanding digital health startup, Done, along with the company’s clinical president, guilty of orchestrating what prosecutors label as one of the most audacious telehealth-related drug and fraud schemes ever to be tried.
Ruthia He, the founder and chief executive of Done, and David Brody, its clinical president, were convicted on Tuesday for unlawfully distributing Adderall online and conspiring to commit health care fraud through fraudulent insurance claims associated with stimulant prescriptions. He was also found guilty of conspiring to obstruct justice.
According to prosecutors, the duo established a business model that raked in over $100 million by providing easy online access to more than 40 million pills of Adderall and other stimulants, all while misrepresenting Done as a legitimate telehealth provider. Evidence presented during the trial revealed that customers paid monthly subscription fees for almost automatic access to prescriptions, facilitated by an “auto-refill” system that dispensed medications without any clinical interaction — even, in some instances, for patients who had already passed away.
Aggressive Advertising and Restricted Clinical Oversight
As per court records, Done invested over $40 million in social media advertising to persuade Americans that they had ADHD, particularly during the COVID-19 pandemic. Additionally, the company acquired keyword advertisements aimed at individuals seeking drugs.
Prosecutors indicated that He and Brody enforced stringent restrictions on medical evaluations — lasting less than half the duration of a standard psychiatric assessment — and directed nurse practitioners to renew prescriptions without seeing patients. Reports suggest that nurses were compensated as much as $60,000 monthly to ensure the continuous distribution of prescriptions.
Internal communications cited at trial showed He encouraging employees by saying successful technology companies “profit off addiction” and offering luxury rewards for increasing prescription volumes. Brody allegedly told clinicians to continue prescribing Adderall even when patients showed signs of medication abuse or mental health instability.
Family members who attempted to warn Done about patients experiencing bipolar episodes, psychosis, or other severe symptoms were reportedly ignored.
False Insurance Claims and a $14 Million Fraud
To allow customers to keep paying their subscription fees while they filled prescriptions, He and Brody plotted to deceive insurers by filing fraudulent prior-authorization requests, asserting that Done adhered to recognized diagnostic standards like the DSM-5 and performed urine drug testing. Insurers, including Medicare and Medicaid, ended up disbursing over $14 million in fraudulent claims.
In 2022, when media outlets questioned Done’s prescribing practices, the company falsely asserted that it upheld rigorous clinical oversight, even though internal documents revealed that He — lacking any medical training — was the one who ultimately dictated clinical policies.
He was also found guilty of obstructing the investigation. Prosecutors indicated that she relocated operations to China, erased records, utilized encrypted messaging, and tried to transfer over $1 million to a shell company called “Make Believe Asia.” She was apprehended while trying to exit the country. Investigators also discovered internet searches for nations that do not have U.S. extradition treaties.
Facing Up to 20 Years in Prison
He and Brody were each convicted of conspiracy to distribute controlled substances, four counts of distribution of controlled substances, and conspiracy to commit health care fraud. He also faces an additional conviction for conspiring to obstruct justice.
Both defendants face maximum sentences of 20 years in prison for the drug-related charges. Sentencing is scheduled for Feb. 25, 2026.
“This case represents one of the most egregious abuses of telehealth we’ve seen,” said Christian J. Schrank, deputy inspector general for investigations at HHS-OIG. “Their business model was built on addiction, deception, and disregard for patient safety.”
