Federal authorities have charged several more people linked to a San Francisco telemedicine startup as part of an increased crackdown on the illegal distribution of Adderall and other stimulants intended to treat attention deficit disorder.
The indictment, announced by the Department of Justice on Thursday, comes two weeks after Dan Global’s founder and CEO, Lucia Herr, and its top doctor, David Brody, were arrested on conspiracy, fraud and obstruction charges.
The latest indictment names Dan Global executive Riley Levy, 30, doctor Christopher Luches, 58, nurses Ina Cruz, 37, Katrina Pratcher, 70, and Erin Kim, 54.
Authorities say the defendants took advantage of telehealth regulations that were relaxed during the COVID-19 pandemic to sell powerful stimulants to patients who did not medically need them.
Federal prosecutors have described Kim as “one of the most prolific prescribers” working for Dawn Health. According to an indictment unsealed this week, the Orlando, Florida, nurse allegedly falsified patient charts and signed prescriptions for Adderall and other stimulants for patients who didn’t meet the criteria for ADHD.
Prosecutors say Kim pocketed $800,000 from Dan Global by prescribing 1.5 million pills, many of them through the company’s auto-refill policy, which allows drugs to be filled without any interaction with patients after the initial consultation.
“As a result, the nurses allegedly prescribed Adderall and other stimulants to patients suffering from drug addiction and continued to write prescriptions for Adderall for months after patients died from overdoses,” prosecutors said in a statement Thursday.
Despite the ongoing investigation and widely publicized charges, Dan Global continued to promote its services on Google and TikTok until The Wall Street Journal inquired about the ads this week.
A Dawn Global spokesman told The Standard the company denies any wrongdoing.
“Dan Global strongly opposes the criminal charges filed last week against our founders, Lucia He and Dr. David Brody. The charges are based primarily on events that occurred between February 2020 and January 2023,” a statement on the company’s website read. “Since our founding, Dan Global has worked to improve access to mental health care for tens of thousands of Americans caught up in a worsening national crisis.”
The company said it would continue to operate while the litigation continues to drag on, to ensure patients are not denied access to mental health care.
“At the same time, we continue to support our clinicians in exercising independent clinical judgment, practicing evidence-based medicine and providing the highest standards of care,” the statement said.
Federal prosecutors said in an indictment filed June 13 against Dan Global’s He and Brody that the two charged customers monthly subscription fees in return for access to stimulants such as Adderall, Vyvanse and Ritalin. Prosecutors say the scheme allowed Dan Global to illegally distribute 40 million pills amid a nationwide shortage.
To succeed in their scheme, prosecutors said, He and Brody provided prescribers with limited information about patients, instructed them to prescribe stimulants even when members did not meet the qualifications, and forced clinical interviews with patients to be completed in 30 minutes or less.
Prosecutors allege that doctors and nurses wrote prescriptions without video or telephone consultations and made handsome profits based on the amount of medication they dispensed.
According to federal prosecutors, the investigation into Dan Global was part of a broader crackdown on health care fraud that has resulted in criminal indictments against 193 people, including 76 doctors, nurses and other medical professionals. Nearly 200 defendants are alleged to have participated in a fraud scheme that totaled $2.75 billion in false claims and $1.6 billion in actual losses.
Federal authorities say they seized more than $231 million in assets, including cash, luxury vehicles and gold, as part of a multistate investigation.
“Whether they’re a drug cartel trafficker, a corporate executive, or a medical professional employed by a medical company, if they profit from the illegal distribution of controlled substances, they will be held accountable,” Attorney General Merrick B. Garland said in a press release. “The Department of Justice will bring to justice criminals who defraud the public, steal from taxpayer-funded programs, and put people at risk for their own profits.”
Dan Global said in a statement that it supports these aims.
“end [Global] “We are fully aligned with the Drug Enforcement Administration and the Department of Justice in their efforts to eradicate drug abuse in America,” the company said. “We are committed to operating a platform that sets the highest standard in psychiatric care, and we believe our hybrid approach allows us to achieve the best clinical quality and outcomes for patients.”
If convicted, the defendants each face prison sentences ranging from several years to several decades.
