Health Care Security: Fraud, Waste, and Abuse. Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme

 

Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme 06/13/2024 U.S. DEPARTMENT OF HOMELAND SECURITY Office of Public Affairs Founder/CEO and Clinical President of Digital Health Company Arrested for $100M Adderall Distribution and Health Care Fraud Scheme WASHINGTON - The U.S. Department of Justice (DOJ) announced today that the founder and CEO of a California-based digital health company and its clinical president were arrested today in connection with their alleged participation in a scheme to distribute Adderall over the internet, conspire to commit health care fraud in connection with the submission of false and fraudulent claims for reimbursement for Adderall and other stimulants, and obstruct justice. Ruthia He, the founder and CEO of Done Global Inc., was arrested in Los Angeles and will make her initial appearance at 1:30 p.m. PDT/4:30 p.m. EDT in Los Angeles. David Brody, the clinical president of Done Health P.C. (collectively, Done), was arrested in San Rafael, California, and will make his initial appearance at 10:30 a.m. PDT/1:30 p.m. EDT in San Francisco, California. Homeland Security Investigations (HSI) is among the federal entities investigating the case. “The individuals charged today allegedly disregarded the first rule of medical care—do no harm—in order to maximize profits, and there is no place for such fraud in our healthcare system,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The indictment levied against these individuals sends a clear message: the Department of Homeland Security, our Homeland Security Investigations personnel, and our partners across the federal government will hold accountable those providers and prescribers who prey on their patients.” “As alleged, these defendants exploited the COVID-19 pandemic to develop and carry out a $100 million scheme to defraud taxpayers and provide easy access to Adderall and other stimulants for no legitimate medical purpose,” said Attorney General Merrick B. Garland. “Those seeking to profit from addiction by illegally distributing controlled substances over the internet should know that they cannot hide their crimes and that the Justice Department will hold them accountable.” “As alleged in the indictment, the defendants provided easy access to Adderall and other stimulants by exploiting telemedicine and spending millions on deceptive advertisements on social media. They generated over $100 million in revenue by arranging for the prescription of over 40 million pills,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “These charges are the Justice Department’s first criminal drug distribution prosecutions related to telemedicine prescribing through a digital health company. As these charges make clear, corporate executives who put profit over the health and safety of patients—including by using technological innovation—will be held to account.” According to court documents, He and Brody allegedly conspired with others to provide easy access to Adderall and other stimulants in exchange for payment of a monthly subscription fee. The indictment alleges that the conspiracy’s purpose was for the defendants to unlawfully enrich themselves by, among other things, by increasing monthly subscription revenue and thus increasing the value of the company. Done allegedly arranged for the prescription of over 40 million pills of Adderall and other stimulants, and obtained over $100 million in revenue. “The internet is a place of remarkable innovation, allowing its users to make innumerable types of transactions with greater ease. Such transactions, however, must always be legal,” said Deputy Chief of the Criminal Division Matthew Yelovich for the Northern District of California. “The indictment alleges that He and Brody used an internet-based infrastructure to illegally distribute drug sales and to conspire to commit health care fraud. This office will always prosecute health care fraud and illegal drug distribution on the internet as vigorously as we do traditional frauds and illegal drug distribution.” He and Brody allegedly obtained subscribers by targeting drug seekers and spending tens of millions of dollars on deceptive advertisements on social media networks. They also allegedly intentionally structured the Done platform to facilitate access to Adderall and other stimulants, including by limiting the information available to Done prescribers, instructing Done prescribers to prescribe Adderall and other stimulants even if the Done member did not qualify, and mandating that initial encounters would be under 30 minutes. To maximize profits, He allegedly put in a place an “auto-refill” function that allowed Done subscribers to elect to have a message requesting a refill be auto-generated every month. He wrote that Done sought to “use the comp structure to dis-encourage follow-up” medical care by refusing to pay Done prescribers for any medical visits, telemedicine consultation, or time spent caring for patients after an initial consultation, and instead paying solely based on the number of patients who received prescriptions. “The defendants in this case operated Done Global Inc., an online telehealth website that prescribed Adderall and other highly addictive medications to patients who bought a monthly subscription. 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,” said DEA Administrator Anne Milgram. “Instead of properly addressing medical needs, the defendants allegedly made millions of dollars by pushing addictive medications. In many cases, Done Global prescribed ADHD medications when they were not medically necessary. In 2022 the FDA issued a notice of shortages in prescription stimulants, including Adderall. Any diversion of Adderall and other prescription stimulant pills to persons who have no medical need only exacerbates this shortage and hurts any American with a legitimate medical need for these drugs. The DEA will continue to hold accountable anyone, including company executives, that uses telehealth platforms to put profit above patient safety.” “As more health care needs are met through telemedicine, we will not tolerate fraud schemes that seek to recklessly exploit digital technologies,” said Honorable Christi A. Grimm of the Department of Health and Human Services Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to protect the enrollees of federal health care programs by ensuring that requirements for the appropriate, legal prescribing of stimulants and other drugs are always met, and those who choose to violate them are held accountable.” He and Brody allegedly persisted in the conspiracy even after being made aware that material was posted on online social networks about how to use Done to obtain easy access to Adderall and other stimulants, and that Done members had overdosed and died. They also allegedly concealed and disguised the conspiracy by making fraudulent representations to media outlets to forestall government investigations and action and induce third parties to continue doing business with Done. “Healthcare fraud is not a victimless crime. It levies a tremendous cost on our nation’s healthcare systems and economy,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Today’s announcement should serve as a reminder that it is only a matter of time before anyone engaging in fraudulent activity is caught and brought to justice.” “Instead of prioritizing the health of their customers, He and Brody’s telemedicine company allegedly prioritized profits—more than $100 million worth—by fraudulently prescribing medications like Adderall and other stimulants,” said Chief Guy Ficco of IRS Criminal Investigation. “This led customers to addiction, abuse, and overdoses, which the company tried to conceal by making false representations to the media in order to deter oversight by government agencies.” He, Brody, and others also conspired to defraud pharmacies and Medicare, Medicaid, and the commercial insurers to cause the pharmacies to dispense Adderall and other stimulants to Done members in violation of their corresponding responsibility; Medicare, Medicaid, and the commercial insurers to pay for the cost of these drugs; and Done members to continue to pay subscription fees to Done. He and others allegedly made false and fraudulent representations about Done’s prescription policies and practices to induce the pharmacies to fill Done’s prescriptions. As a result, Medicare, Medicaid, and the commercial insurers paid in excess of approximately $14 million. The indictment also alleges that He and Brody conspired to obstruct justice after a grand jury subpoena was issued to another telehealth company and in anticipation of a subpoena being issued to Done, including by deleting documents and communications, using encrypted messaging platforms instead of company email, and ultimately failing to produce documents in response to a subpoena issued to Done by a federal grand jury. If convicted, He and Brody each face a maximum penalty of 20 years in prison on the conspiracy to distribute controlled substances and distribution of controlled substances counts. The DEA, HHS-OIG, HSI, and IRS Criminal Investigation are investigating the case. Principal Assistant Chief Jacob Foster and Trial Attorney Raymond Beckering III of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Kristina Green, Katherine Lloyd-Lovett, and Lloyd Farnham for the Northern District of California are prosecuting the case. The DOJ  Fraud Section leads the DOJ Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this DOJ program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit. Any patient of Done or medical professional who has been involved with the allegedly illegal conduct should call to report this conduct to the DEA hotline at 646-466-5159. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. # # #

Grant Opportunity: Up to $2 million. Bezos Earth Fund invites applications for $100 million AI for Climate and Nature Grand Challenge Deadline: July 30, 2024 (Phase 1)

Bezos Earth Fund invites applications for $100 million AI for Climate and Nature Grand Challenge

June 13, 2024

Deadline: July 30, 2024 (Phase 1)

The Bezos Earth Fund has opened submissions for the $100 million AI for Climate and Nature Grand Challenge.

According to the Bezos Earth Fund, people are already using artificial intelligence to monitor greenhouse gas emissions, detect methane leaks and forest fires, and advance a clean energy economy. While climate and nature organizations working on the ground understand global conditions and what it takes to implement workable environmental solutions, many of these frontline organizations don’t have sufficient technology expertise, infrastructure, or funding to apply AI solutions on their own. Meanwhile, AI researchers and technology providers understand the potential and practical application of rapidly evolving technologies but may not have experience implementing climate or nature solutions on the ground.

The AI for Climate and Nature Grand Challenge aims to explore new ideas for multiplying the impact of climate and nature efforts using modern AI. The first round of awards will focus on biodiversity conservation, advancing sustainable proteins, and power grid optimization. In addition, the fund is open to supporting visionary wildcard solutions for climate and nature. Up to 30 applicants will be selected as seed grantees and receive funding and mentorship from experts at the forefront of climate, nature, and AI. Larger awards will be made to a subset of this group.

The first round of the challenge invites grant proposals from eligible organizations: U.S.-based 501(c)(3) entities and global academic institutions.

Phase 1 proposals are due July 30, 2024, and the first phase will award up to 30 seed grants, with each receiving $50,000 and an exclusive invitation to participate in Phase 2. In Phase 2, grantees will enter a virtual innovation sprint and receive targeted support and resources from AI experts as they develop detailed implementation plans. Following Phase 2, Implementation Grantees will bring their solutions to life over the course of two years; during this time, they will test, iterate, and report on the effectiveness of their approaches. 

For complete program guidelines and application instructions, see the AI for Climate and Nature Grand Challenge website.

Link to complete RFP

Grant Opportunity: $250 to $5,000. Spark Good Local Grants, through which Walmart U.S. stores, Sam’s Clubs, and Distribution Centers award local cash

 

Walmart Foundation invites applications for Spark Good Local Grants

June 13, 2024

Deadline: July 15, 2024

Walmart Foundation invites applications for its Spark Good Local Grants, through which Walmart U.S. stores, Sam’s Clubs, and Distribution Centers award local cash grants ranging from $250 to $5,000 designed to address the unique needs of the communities where they operate. 

Spark Good Local Grants are awarded through an open application process to eligible organizations operating locally and directly benefiting the service area of the facility from when they are requesting funding. 

To be eligible, applicants must meet one of following criteria: organizations holding a current tax-exempt status as a public charity under section 501(c)(3) of the Internal Revenue Code; listed on the IRS Master File and conducting activities within the United States; classified as a public charity under section 509(a)(1), (2) or (3) (types I or II); and deed verified; a recognized government entity (state, county, or city agency), including law enforcement or fire departments, that are requesting funds exclusively for public purposes and deed verified; or a K-12 public or nonprofit private school, charter school, community/junior college, state/private college, or university; or a church or other faith-based organization with a proposed project that benefits the community at large, such as food pantries, soup kitchens, and clothing closets and deed verified.

For complete program guidelines and application instructions, see the Walmart Foundation website.

Link to complete RFP

Grant Opportunities: Bank of America Charitable Foundation. Economic Mobility focused on needs of communities. Applications accepted until 6/21/2024

 https://about.bankofamerica.com/en/making-an-impact/charitable-foundation-funding

Bank of America Charitable Foundation Philanthropic Strategy At Bank of America, we’re guided by a common purpose to help make financial lives better. Through our focus on Responsible Growth, we deliver for our teammates, clients and shareholders, while addressing economic mobility and social progress focused on the needs of the community. We drive meaningful and sustainable progress to help address society’s biggest challenges by aligning all our resources – including our financing, our client products and services, our philanthropy and how we manage our own activities.  As part of this work, we develop strong partnerships with nonprofit organizations focused on issues fundamental to economic mobility in low- and moderate-income communities. We focus on improving the lives of individuals and families by investing in health, jobs, and strengthening broader community vitality by addressing needs related to small business resiliency, and community development. Through our partnerships, we support vulnerable populations, including working families, youth, seniors, individuals living with disabilities, veterans, and those impacted by the criminal justice system – enabling them to move forward in their goals. In 2024, the Bank of America Charitable Foundation will issue two requests for proposals (RFPs):  Economic Mobility focused on needs of individuals and families (workforce development & education and basic needs) Applications accepted 1/22/2024 – 2/16/2024 Economic Mobility focused on needs of community (affordable housing, small business, neighborhood revitalization) Applications accepted:  5/27/2024 – 6/21/2024 Economic mobility focused on needs of individuals and families Health Too many communities across the United States do not have equal access to what is needed to live healthier lives. Within under-resourced communities, generations of lack of access to care and health resources have contributed to poorer health outcomes. We are focusing on programs and organizations who are working to address the economic and social conditions that influence family stability and an individual’s health, including access to quality community- based health services, crisis-prevention tied to family stabilization programs, and other poverty related issues. Examples: Prevention and Access to healthcare – Services that improve health outcomes with an emphasis on community-based healthcare, mental health counseling, substance use disorder treatment, and rehabilitation.; services that address access to quality health care, including early detection and disease prevention; capacity building and training for local community-based health centers and clinics Food Access and Nutrition – food-based health care partnerships; programs addressing fresh and nutritious food access; programs that address dietary nutritional needs and education for persons with underlying health conditions (diabetes, cancer, heart-health) Family stabilization – access to crisis prevention programs and wrap services including help with immediate and safe shelter, free or subsidized benefits like internet access, utilities, childcare, transportation, financial assistance and recovery. Services for the homeless – programs that prevent or end homelessness, such as emergency shelter, rapid-rehousing, rental and utility assistance and permanent supportive housing. Jobs Employment is a key driver of economic mobility. That’s why we’re focused on building pathways to employment by supporting a range of workforce development opportunities, including education, upskilling and reskilling programs that will help individuals and families stabilize and advance. Examples: Youth workforce development and employment – Nonprofit programs helping young people (14-24 years old) transition from education to meaningful employment (i.e. high school completion programs, skills-training for hard and soft skills, early work experience, first-time employment, internship and/or apprenticeships especially for disconnected youth. Skills training for adults through alternate routes – Nonprofit organizations providing adults with job preparedness, training, skill building, career counseling, placement, job retention, and entrepreneurship opportunities Removing Barriers to employment – Nonprofit organizations addressing obstacles that hinder individuals from securing and maintaining long-term employment (i.e. organizations serving individuals with disabilities, persons impacted by the justice system, recent immigrants/refugees/asylees, and foster care youth). Academic Institutions and student support – Post-secondary institutions (vocational/technical college, community college, four-year university or other trade school) and nonprofit partners providing support services that are ensuring students, particularly diverse students, matriculate and achieve post-graduation success Economic mobility focused on the needs of the community Affordable Housing The current environment has underscored the importance of safe, decent housing for an individual’s overall well-being, including health, educational success and future employment opportunities. Yet for many, access to affordable housing has become further out of reach while others struggle with the possibility of eviction, foreclosure and homelessness. That’s why we support the efforts of organizations working to preserve and increase access to a mix of affordable housing options as well as other essential assistance. Examples: Housing development for vulnerable populations through the construction or preservation of affordable single, multi-family, transitional and supportive housing Minority homeownership programs Pathways to staty efforts such as homebuyer education, budgeting, savings, and creble housing or homeownership through financial habits and stabilidit counseling including eviction and foreclosure prevention. Sustainable development efforts creating healthy living environments through energy efficiency upgrades, retrofits, solar and other green building efforts. Neighborhood Revitalization Vibrant communities are places where individuals can thrive and succeed and have the opportunity to live and work with safe, decent housing, transportation to jobs, strong business corridors and thriving arts and culture districts. We support local and regional revitalization efforts, taking a holistic approach to building inclusive communities, creating economic opportunity and livable neighborhoods. Examples: Revitalization, preservation, and stabilization initiatives that engage community stakeholders in building livable communities. Transit-oriented development efforts that connect individuals to jobs, services, schools, and economic opportunity. Community arts and cultural institutions that provide economic opportunity and contribute to the vitality and livability of communities. Assist economic development efforts that help promote healthy commercial corridors (Mainstreet) Resiliency of communities supporting short- and long-term plans to prepare, withstand and recover from extreme weather events and the long-term impacts of climate change. Environmental efforts through the preservation, creation or restoration of open space, parks and community gardens. Supporting organizations/initiatives that bring energy efficiency and renewable energy advances to diverse communities. Small Business Resiliency Small Businesses help drive economic mobility and generational wealth and play an important role in the overall health of our nation’s economy. In response to the challenges small business owners face, we’re supporting nonprofits assisting under-resourced entrepreneurs, including women and minority business owners, as they address their short-term needs and help them grow and scale. Examples: Technical assistance: Support to organizations delivering training to help entrepreneurs start, grow or expand their business. Access to capital: Funding nonprofits that connect entrepreneurs with access to essential growth capital. Supporting incubators and accelerators that provide mentors, resources, and networks entrepreneurs need to launch, fund and grow their businesses Build operational capacity of CDFIs delivering essential growth capital to entrepreneurs

Bowie State U, International Conference on Human Settlements, June 26-29

Register here:   https://usafricacollaborative.org/registration/   MEDIA ALERT                                                                                                                                                 CONTACT:                                                                                                              Khalil Abdullah c:  240.277.4174                                                                                                  Khalilabdullah66@gmail.com                                            PAN AFRICAN CITY EXPOSITION                                 US AFRICA COLLABORATIVE, 26-29 June 2024 Location: BOWIE STATE UNIVERSITY                         Worldwide Housing Crisis: Building Sustainability & Equity for the Future The US Africa Collaborative is a Maryland-based non-profit, 501(c)3 tax-exempt organization.

 

 

 

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Grant Opportunity: Small, early-stage grants of between $2,500 and $50,000. Burroughs Wellcome Fund invites applications for Climate Change and Human Health Seed Grants

Burroughs Wellcome Fund invites applications for Climate Change and Human Health Seed Grants

June 4, 2024

Deadline: July 25, 2024 at 3:00 p.m. ET

The Burroughs Wellcome Fund serves and strengthens society by nurturing a diverse group of leaders in biomedical sciences to improve human health through education and powering discovery in frontiers of greatest need.

The fund invites applications for its Climate Change and Human Health Seed Grants program, which aims to stimulate the growth of new connections between thinkers working in largely disconnected fields who could together change the course of climate change’s impact on human health. Small, early-stage grants of between $2,500 and $50,000 will be awarded through the program.

BWF is particularly but not exclusively interested in activities that build connections between basic/early biomedical scientific approaches and ecological, environmental, geological, geographic, and planetary-scale thinking, as well as population-focused fields, including epidemiology, public health, demography, economics, and urban planning. Also of interest is work piloting new approaches or interactions toward reducing the impact of health-centered activities, such as developing more sustainable systems for health care, care delivery, and biomedical research systems. Another area of interest is preparation for the impacts of extreme weather and other crises that can drive large-scale disruptions that immediately impact human health and healthcare delivery. Public outreach, climate communication, and education efforts focused on the intersection of climate and health are also appropriate for this call.

Applicants must be nonprofit organizations or degree-granting institutions in the United States or Canada.

For complete program guidelines and application instructions, see the Burroughs Wellcome Fund website.

Link to complete RFP

SubjectsClimate Change; Health; Medical Research

OrganizationsBurroughs Wellcome Fund