Federal prosecutors secured a landmark telehealth fraud conviction against Done Global executives in November 2025, fundamentally transforming how investors evaluate ADHD telehealth companies and marking the first criminal prosecution of digital health leaders for a massive Adderall distribution scheme.

Around 40 million stimulant pills were distributed through a Done Global operation that prioritized subscription revenue over patient safety in the rapidly expanding digital health startup ecosystem focused on controlled substances.

A San Francisco jury convicted Ruthia He, Done Global’s Chinese-born founder and CEO, and Dr. David Brody, the company’s clinical president, on multiple counts, including conspiracy to distribute controlled substances and healthcare fraud, on November 18, 2025. Consequently, both executives face up to 20 years in prison at their February 25, 2026, sentencing hearing.

The $100 Million Subscription Model That Became a Criminal Enterprise

Done Global launched in 2019 when He, a former Facebook product designer with zero medical credentials, identified a lucrative opportunity in pandemic-era regulatory gaps. However, federal prosecutors proved that the ADHD Telehealth Startup deliberately built a profit-maximizing machine disguised as democratized Attention-Deficit/Hyperactivity Disorder (ADHD) care.

The company mandated psychiatric evaluations lasting under 30 minutes, half the standard diagnostic duration, while patients completed one-minute online assessments before receiving same-day appointments.

Moreover, nurse practitioners earned approximately $60,000 per month for approving prescription refills without meaningful clinical interaction yet received no payment for follow-up appointments. This compensation structure created powerful incentives for volume over safety.

Done Global spent more than $40 million targeting individuals searching “how to get Adderall” through social media campaigns explicitly designed to attract drug seekers rather than legitimate patients. Furthermore, Dr. Brody directly instructed nurses to continue prescribing Adderall to patients showing clear medication abuse signs and to “disregard the risk of going to jail,” according to trial testimony.

Insurance Fraud Compounded Criminal Liability

Beyond the Adderall distribution scheme, the ADHD telehealth startup systematically defrauded Medicare, Medicaid, and private insurers by submitting false prior authorizations claiming adherence to DSM-5 diagnostic criteria, urine drug screening completion, and trials of non-stimulant medications first—all fabrications. These fraudulent claims generated more than $14 million in improper reimbursement payments.

The company implemented an automated refill function, allowing patients to request monthly stimulant refills through emails for years without clinical reassessment. Essentially, Done Global operated as a subscription service for addictive medications, collecting $79 to $199 monthly fees from patients who maintained prescriptions through simple online clicks rather than medical evaluations.

Internal red flags emerged in 2021 when T.J. Williams, Done Global’s head of operations, raised urgent concerns about fraudulent patient behavior, including the use of falsified identities and manipulated documentation. However, the company terminated Williams three months later rather than addressing the systemic problems he identified.

That same year, He temporarily relocated to China while managing Done Global remotely and establishing operations in Beijing, Shanghai, and Hangzhou. The Chinese team assumed critical functions, including recruitment, advertising, and clinical policy, creating HIPAA violations as patient health information flowed through WeChat and resided on Chinese servers.

Major pharmacy chains recognized the startup’s fraudulent model before federal prosecutors. CVS and Walmart independently stopped filling prescriptions for controlled substances in May 2022, with CVS stating it was “unable to resolve concerns” after reviewing the company’s practices.

The Death That Triggered Federal Action

Prosecutors demonstrated that Done Global continued its scheme even after learning about overdoses and deaths among patients. Specifically, when family members contacted Done Global, reporting their children suffered bipolar disorder, Adderall-induced psychosis, or severe mental health conditions, the company often continued prescriptions regardless.

The Wall Street Journal first reported the DEA investigation in September 2022, followed by additional documentation of clinician complaints about pressure to diagnose ADHD and issue refills without proper evaluation in March 2023. Federal prosecutors arrested He and Brody on June 13, 2024, along with five additional Done Global employees, namely Riley Levy, Dr. Christopher Lucchese, and nurse practitioners Yina Cruz, Katrina Pratcher, and Erin Kim.

The Done Global conviction establishes precedent that telehealth executives face personal criminal liability for business models prioritizing growth over patient safety.

Deputy Inspector General Christian Schrank called it “one of the most egregious abuses of telehealth we’ve seen,” noting that “the defendants built a brazen business model based on addiction, deception, and disregard for patient safety”.

Consequently, the DEA released sweeping new telemedicine rules on January 15, 2025, directly responding to Done Global’s telehealth fraud. Starting in 2026, providers must obtain a Special Registration for Telemedicine costing $888, plus separate state registrations at $50 per state for individual clinicians or $888 per state for platform companies.

A multi-state ADHD telehealth platform operating in 20 states now faces registration fees exceeding $17,000 before treating a single patient. Moreover, the temporary COVID-era flexibilities allowing controlled substances to be prescribed without in-person visits expire on December 31, 2025.

Compliance Costs Force Business Model Transformation

The new Drug Enforcement Administration (DEA) rules impose extensive operational requirements that eliminate Done Global’s high-volume, low-touch subscription model. Specifically, providers must query state prescription drug monitoring programs for every controlled substance prescription, conduct mandatory audio-video encounters, implement robust patient identity verification, submit annual reporting to the DEA, and update registration information within 14 business days of any changes.

These requirements fundamentally alter the economics of digital health startups in the ADHD space. Legitimate companies now implement 60-minute initial assessments rather than Done’s 30-minute maximum, collect collateral data from family members and prior providers, conduct paid clinical reassessments rather than automated refill emails, and screen for a history of substance use disorder.

Despite the Done Global conviction, ADHD telehealth still attracts capital, though investor due diligence has intensified dramatically. Recent funding rounds show investors backing companies with demonstrated clinical rigor rather than growth-at-all-costs models.

ADHD Online raised $12 million in Series A funding from Wakestream Ventures, with a focus on diagnostic rigor and compliance infrastructure. Meanwhile, Cerebral secured $25 million in October 2025, over a year after paying $7 million in FTC fines and $3.65 million in forfeitures for data privacy violations, deceptive subscription practices, and providing financial incentives for stimulant prescriptions.

DEA Administrator Anne Milgram said that “Cerebral’s exploitation of telemedicine flexibilities deceived patients who were legitimately seeking medical care, putting them at risk in exchange for profit”. This regulatory action against Cerebral demonstrates that Done Global represents a pattern rather than an isolated incident.

Patient Access Concerns Create Tension

The Centers for Disease Control and Prevention (CDC) issued a health alert warning that Done’s prosecution could disrupt treatment for 30,000 to 50,000 patients. This highlights a fundamental tension: while Done Global operated fraudulently, many patients received prescriptions they legitimately needed.

Research published in the American Journal of Psychiatry shows that telehealth itself does not drive overall substance use disorder in ADHD treatment, though vigilance remains necessary. Therefore, regulators face the challenge of preventing telehealth fraud without eliminating legitimate access for patients who genuinely benefit from virtual ADHD care.

The Done Global conviction marks a watershed moment that separates legitimate ADHD telehealth providers from digital health startup companies that viewed prescriptions as subscription products. Companies that built compliance infrastructure, clinical governance, and patient safety protocols will gain market share as fly-by-night operators exit under regulatory pressure.

Nevertheless, the February 2026 sentencing will determine whether penalties create sufficient deterrence in an industry where regulatory arbitrage remains tempting, and venture capital often prioritizes growth velocity over clinical rigor.

Founders, operators, and investors must recognize that controlled substances prescribing through telehealth platforms requires the same clinical standards as traditional medicine—or face criminal prosecution that could destroy companies and imprison executives for 20 years.

Done Global continues operating under the brand Mindful Health/Mindful Mental Wellness P.A. from its San Francisco office, though the company itself has not been criminally charged as an entity. This ongoing operation, despite the executive convictions, suggests regulatory gaps remain even after this historic prosecution.

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