Faulty reasoning signals

• Confirmation Bias - 17.9% (109 hits)
• Anchoring Bias - 3.6% (22 hits)
• Availability Heuristic - 16.7% (102 hits)
• Representativeness Heuristic - 0%
• Hindsight Bias - 0%
• Overconfidence Bias - 0%
• Framing Effect - 23.4% (143 hits)
• Loss Aversion - 0%
• Status Quo Bias - 0%
• Sunk Cost Effect - 0%
• Optimism Bias - 0%
• Pessimism Bias - 3.1% (19 hits)

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SF Telehealth Executives Could Spend 20 Years Behind Bars for Prescription Fraud

A San Francisco-based telehealth company’s top executives could be sentenced to up to 20 years in prison on Tuesday over a $100 million scheme to fraudulently distribute Adderall and other stimulants.

In June 2024, Ruthia He, the founder and CEO of Done Global, and David Brody, its clinical president, were convicted of conspiring to commit healthcare fraud and distributing controlled substances to people without a medical need, among other charges.

He and Brody were also found guilty of conspiring to defraud pharmacies, along with Medicaid, Medicare and commercial insurers, to dispense stimulants in violation of their corresponding responsibility.

The pair spearheaded the online mental health treatment venture to provide easy access to Adderall, Vyvanse and other stimulants.

The Department of Justice alleged that they took advantage of eased restrictions on prescribing controlled substances without in-person consultations amid the COVID-19 pandemic.

“The defendants allegedly preyed on Americans and put profits over patients by exploiting telemedicine rules that facilitated access to medications during the unprecedented COVID-19 public health emergency,” Anne Milgram, then-administrator of the Drug Enforcement Administration, said in a statement after their arrests.

Since the beginning of the pandemic, the company arranged for the prescription of more than 40 million pills, according to court documents.

“Instead of properly addressing medical needs, the defendants allegedly made millions of dollars by pushing addictive medications,” Milgram said.

According to the company’s now-defunct website, Brody co-founded Done Global in 2019, calling it a “passion project” to help friends and coworkers in need of mental healthcare navigate a complex system.

The start-up promoted a quick and easy process to become a monthly subscriber: members completed a one-minute assessment, followed by a telehealth appointment with a licensed clinician before paying the $79 monthly fee for “worry-free refills” and ongoing care.

In 2022, major pharmacies stopped filling prescriptions from prescribers at Done, and another online mental health company, Cerebral, after reports that some healthcare professionals felt pressured into diagnoses — and amid a federal investigation into Cerebral.

In 2024, Cerebral agreed to pay more than $3.6 million “for engaging in practices that encouraged the unauthorized distribution of controlled substances” as part of a non-prosecution agreement with the U.S.

Attorney’s Office in the Eastern District of New York.

Done faced similar scrutiny, and according to court documents, paid medical professionals to diagnose members with attention-deficit hyperactivity disorder and write them prescriptions for Adderall and other stimulants, even when people did not qualify for the medications.

He and Brody, among others at the company, created policies including limiting the information available to prescribers, instructing them to issue Adderall and other stimulants even if the Done member did not qualify, and limiting appointments to under 30 minutes.

The Department of Justice alleged that they falsely represented their prescription policies, claiming that they were able to keep appointments short with a screening process designed to weed out people who were unlikely to qualify for a diagnosis.

The DOJ also claimed that the company continued to operate even after He and Brody became aware that information had been posted on social media instructing people to use Done to gain easy access to stimulants — and that some members had overdosed and died.

“Healthcare fraud is not a victimless crime,” said Katrina Berger, the executive associate director of Homeland Security Investigations.

“It levies a tremendous cost on our nation’s healthcare systems and economy.”

Milgram said the company’s whopping prescription numbers could have diverted Adderall from people who needed it, amid a nationwide shortage that began in 2022.

The pair’s sentencing is set for 10 a.m. at San Francisco’s Phillip Burton Federal Courthouse.