Telehealth Founder Convicted of Operating Adderall Tablet Mill

A federal jury in San Francisco convicted two executives Tuesday at California-based telehealth firm Executed for his or her roles in illegally distributing Adderall and different stimulants on-line to sufferers, in accordance with the U.S. Division of Justice.

Ruthia He, founder and CEO of Executed International, and David Brody, the medical president of Executed Well being, had been every convicted on one depend of conspiracy to distribute managed substances, 4 counts of distribution of managed substances, and one depend of conspiracy to commit well being care fraud, in accordance with a press release from DOJ. He was additionally convicted of conspiracy to impede justice.

The corporate purchased over $40 million of what DOJ known as “misleading commercials” on social media to advertise its sale of ADHD medicines through the peak of the Covid-19 pandemic, beginning in 2020. He, the founding father of the corporate, had no medical coaching however was accountable for approving medical practices. He and Brody additionally purchased focused search adverts aimed toward individuals who needed to get ADHD meds and not using a authorized prescription.

The corporate paid nurse practitioners as much as $60,000 per thirty days to refill prescriptions and arrange an “auto-refill” expertise that allowed for automated refills with out follow-ups from the clinic, in accordance with DOJ. He, Brody, and others additionally conspired to defraud insurers, in accordance with DOJ, by permitting folks to get reimbursed for Adderall prescriptions at pharmacies.

DOJ additionally alleged that He and Brody informed nurses to maintain prescribing Adderall to individuals who had been abusing different medicines. Executed continued to offer Adderall to sufferers even after relations contacted the corporate as a result of their family members had been experiencing bipolar episodes, Adderall-induced psychosis, or different psychological well being circumstances whereas taking the medicine.

“This case represents one of the egregious abuses of telehealth we’ve seen,” stated Christian J. Schrank of the HHS Office of Inspector General.

“The defendants constructed a brazen enterprise mannequin based mostly on dependancy, deception, and disrespect for affected person security—flooding the market with managed substances whereas defrauding federal well being care packages,” continued Schrank. “Their intentional disregard for affected person security and the regulation put lives in danger and eroded public belief in digital medication.”

As Reuters notes, it’s the primary unlawful drug prosecution of a telehealth firm. Executed denied that its executives had executed something mistaken in a press release to Gizmodo after He and Brody had been arrested in July 2024.

“Executed International strongly disagrees with the prison prices filed final week towards our founder, Ruthia He, and Dr. David Brody, that are based mostly on occasions that principally occurred between February 2020 and January 2023,” the corporate stated on the time.

“Since our founding, Executed International has labored to make psychological well being care accessible for tens of 1000’s of People trapped in a spiraling nationwide disaster. Executed International will proceed to function – and do all the pieces in our energy to make sure that tens of 1000’s of People that depend on us don’t lose entry to their psychological well being care. On the similar time, we are going to proceed to assist our clinicians as they train unbiased medical judgment, apply evidence-based medication, and supply best-in-class well being care.”

Gizmodo reached out for remark Wednesday however didn’t instantly hear again. Brody and He each resist 20 years in jail. Sentencing is scheduled for Feb. 25, 2026.

“The fraudulent acts of He and Brody led to shoppers’ substance abuse, dependancy and, in some circumstances, overdose,” stated Harry T. Chavis from the IRS Prison Investigation New York stated in a press release posted on-line.

“As an alternative of placing the care of their prospects first, they prioritized their very own greed by fraudulently prescribing extra that $100 million price of Adderall and different stimulants. These had been shameful acts, and a jury of their friends agreed. Each He and Brody will now face the implications of this egregious fraud.”