The founder and CEO of a telehealth company has been arrested by US investigators. He is accused of running a $100 million (£78 million) scheme to distribute over 40 million pills of Adderall and other controlled substances fraudulently.
Done CEO Ruthia He and the company's clinical president, David Brody, worked together, according to US Attorney General Merrick Garland, "to provide easy access to Adderall and other stimulants for no legitimate medical purpose."
The executives had taken advantage of telemedicine regulations that had been relaxed during the Covid pandemic, according to America's top law officer.
During the pandemic, the start-up Done Global, based in San Francisco, became popular as an online method for paying a monthly subscription fee for Adderall.
Ms He was captured in Los Angeles and Dr Brody in San Rafael, California, as per authorities.
They are accused of distributing illegal substances. If found guilty, they could each face 20 years in prison.
Adderall is a drug that oversees side effects of ADHD - which can incorporate a failure to zero in on a solitary errand.
The drug is in short supply across the country, which is why the charges were brought.
Nicole Argentieri, the principal deputy assistant attorney general, said that the two were "spending millions on deceptive advertisements on social media."
Ms. Argentieri made the following statement: "These charges are the Justice Department’s first criminal drug distribution prosecutions related to telemedicine prescribing through a digital health company."
To "unlawfully enrich themselves," the alleged scheme included raising the subscription fee to increase the company's value.
Additionally, it is alleged that the defendants restricted the information that was accessible to prescribers and instructed them to give medications to patients even when they were not medically qualified to do so.
Additionally, it is alleged that they required Done patients to complete a 30-minute initial screening with their prescriber.
"Even after being made aware that material was posted on online social networks about how to use Done to obtain easy access to Adderall and other stimulants, and that Done members had overdosed and died," officials claim, they continued the illegal scheme.
They are additionally blamed for swindling government medical care help programs Federal medical care and Medicaid, as well as drug stores, out of no less than $14m and of plotting to block equity by erasing records and messages.
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