Subscription Based Telehealth Companies Indicted in Alleged $100 Million Prescription Drug Distribution Scheme

Subscription Based Telehealth Companies Indicted in Alleged $100 Million Prescription Drug Distribution Scheme

On December 17, Done Global, a San Francisco-based telehealth provider, and Mindful Mental Wellness PA (MMW), a Florida company, were charged with an alleged scheme to illegally distribute stimulants like Adderall over the internet. The indictment also charges the companies with conspiring to submit false and fraudulent claims for Medicare and Medicaid reimbursement and conspiring to obstruct justice. In November, founder and CEO Ruthia He and former clinical president David Brody were convicted of distributing controlled substances and conspiracies to distribute controlled substances, commit health care, and obstruct justice.

According to the indictment, Done advertised its services for online diagnosis, treatment, and refills for medication for patients with ADHD. However, Done and MMW allegedly conspired to provide patients with Adderall and other stimulants without a legitimate medical purpose. Instead, patients, including Medicare and Medicaid beneficiaries, were allegedly provided prescriptions after a mere short video or audio communication with a provider with whom the patients lacked a pre-existing practitioner-patient relationship, and in some instances, without ever communicating with a provider. The government further alleges that some patients were overprescribed, did not meet the medically accepted criteria for diagnosing ADHD, and posed a risk of diversion. After some pharmacies refused to fill prescriptions written by Done’s retained providers, Done allegedly incorporated MMW to circumvent the block. Done and MMW are also accused of conspiring to alter, destroy, or conceal records after they received a grand jury subpoena.

The case is captioned US v. Done Global, Inc. and Mindful Mental Wellness PA, case number 3:25-cr-00432-VC, N.D. Cal.

The US Department of Justice’s (DOJ) press release can be found here.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Georgia Behavioral Health Facility Accused of Medicaid Fraud

On December 10, a DeKalb County, Georgia, grand jury indicted Kim and Marcel Higgins, who own and operate a behavioral health facility, Overcomers Day Services, LLC, in Atlanta, Georgia, on multiple counts of Medicaid fraud and conspiracy to commit Medicaid fraud. According to the charges, the defendants submitted claims for payment to Georgia Medicaid for Intensive Family Intervention services to children despite either lacking the necessary requirements to provide such services or not actually rendering such services. The indictment also alleges that the defendants provided false and fraudulent information to Medicaid fraud investigators.

The cases are captioned The State of Georgia v. Kim Higgins, case number 25CR4815, and The State of Georgia v. Marcel Higgins, case number 25CR4815, in DeKalb County Superior Court.

The Office of Attorney General of the State of Georgia’s press release can be found here.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Gender Affirming Care Providers Face Health Care Fraud Allegations in Texas

Earlier this month, the Texas Attorney General amended two lawsuits initially brought against two physicians for their roles in providing gender affirming care to minors. The amended complaints bring first-of-their-kind allegations that the doctors “fraudulently bill[ed] Texas Medicaid for transgender interventions on children and young adults contrary to Texas law and regulations.” According to the amended lawsuits, in addition to providing prohibited gender affirming care to minors, the providers also allegedly falsified medical records so that hormone prescriptions appeared to be “for something other than transitioning a child’s biological sex or affirming a child’s belief that their gender identity is inconsistent with their biological sex.” The lawsuits seek injunctive relief and money judgments against the defendants.

The cases are captioned Texas v. Lau, No. 493-07676-2024, and Texas v. Cooper, 493-08026-2024, in the District Court of Collin County, Texas.

The escalation of claims are in sync with federal efforts to stop the provision of gender affirming care to minors, including, most recently, a December 18 announcement by the US Department of Health and Human Services that “[s]ex-rejecting procedures for children and adolescents are neither safe nor effective as a treatment modality for gender dysphoria,” and that any hospitals providing gender affirming care to minors may be excluded from federal health care programs.

North Carolina Executive Pleads Guilty to Rigging Bids for Military Construction Contracts

On December 17, Brett Sanborn, the president of a North Carolina construction firm, entered a guilty plea in the Northern District of Illinois for participating in a bid-rigging scheme in violation of federal antitrust laws. Prosecutors alleged that Sanborn worked with others, including individuals and competing companies, to stifle competition for maintenance, repair, and operations contracts at US military facilities. In the plea agreement, Sanborn admitted that he and his collaborators coordinated their submissions and fixed prices so that his company’s bids would be selected over intentionally uncompetitive proposals.

The case is captioned US v. Brett H. Sanborn, No. 25-CR-50057, N.D. Il.

The DOJ’s press release can be found here.