A federal jury in San Francisco on Tuesday convicted two executives of California-based telehealth company Done for their role in illegally distributing Adderall and other stimulant drugs to patients online, according to the U.S. Justice Department.
According to a press release from the DOJ, Ruthia Hay, founder and CEO of Dunn Global, and David Brody, clinical president of Dunn Health, were convicted of one count of conspiracy to distribute controlled substances, four counts of distribution of controlled substances, and one count of conspiracy to commit health care fraud. He was also convicted of conspiracy to obstruct justice.
The company purchased more than $40 million of what the DOJ called “misleading advertisements” on social media to promote sales of ADHD drugs during the height of the COVID-19 pandemic starting in 2020. The company’s founder had no medical training, but was responsible for approving clinical practices. He and Brody also purchased search ads targeted at people who wanted to obtain ADHD medications without a legal prescription.
According to the DOJ, the company paid nurse practitioners up to $60,000 per month to refill prescriptions and install an “auto-refill” technology that allows automatic refills without follow-up from the clinic. According to the DOJ, he, Brody, and others conspired to defraud insurers by allowing people to receive reimbursement for Adderall prescriptions at pharmacies.
The DOJ also alleged that he and Brody asked nurses to administer Adderall to people who were abusing other drugs. Dunn continued to provide Adderall to patients even after family members contacted the company because their loved ones were experiencing bipolar episodes, Adderall-induced psychosis or other mental health conditions while taking the drug.
Christian J. Schrank of the HHS Office of Inspector General said, “This case represents one of the most serious abuses of telehealth we have seen.”
Schrank further said, “The defendants created a shameless business model based on addiction, deception, and disregard for patient safety – flooding the market with controlled substances while defrauding federal health care programs.” “Their willful disregard for patient safety and the law endangered lives and undermined public confidence in digital medicine.”
As noted by Reuters, this is the first illegal drug prosecution of a telehealth company. In a statement to Gizmodo following the arrest of himself and Brody in July 2024, Dunn denied that his officers had done anything wrong.
“Dun Global strongly disagrees with the criminal charges filed last week against our founders, Ruthia Hay and Dr. David Brody, based primarily on incidents that occurred between February 2020 and January 2023,” the company said at the time.
“Since our founding, Dunn Global has worked to make mental health care accessible to thousands of Americans caught up in a growing national crisis. Dunn Global will continue to work – and do everything in our power to ensure that the thousands of Americans who rely on us do not lose access to their mental health care. At the same time, we will continue to support our physicians as they make independent clinical decisions, practice evidence-based medicine, and provide best-in-class health care Let’s do it.”
Gizmodo reached out for comment on Wednesday but did not immediately respond. Both Brody and she face up to 20 years in prison. Sentencing is scheduled for February 25, 2026.
“His and Brody’s fraudulent actions led clients to substance abuse, addiction and, in some cases, overdose,” Harry T. Chavis of IRS Criminal Investigation New York said in a statement posted online.
“Instead of putting the care of his clients first, he prioritized his own greed by fraudulently prescribing more than $100 million worth of Adderall and other stimulants. These were shameful acts, and a jury of his peers agreed. Both he and Brody will now face the consequences of this serious fraud.”