Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    The Digital Health Challenge Facing Founders and Engineers in 2026

    October 7, 2026

    The Mental Health Crisis: What Psychiatrists and Policymakers Must Address Now

    October 6, 2026

    Navigating the Flood of New Clinical Trial Data

    October 5, 2026
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    Health Magazine
    • Home
    • Environmental Health
    • Health Technology
    • Medical Research
    • Mental Health
    • Nutrition Science
    • Pharma
    • Public Health
    • Discover
      • Daily Health Tips
      • Financial Health & Stability
      • Holistic Health & Wellness
      • Mental Health
      • Nutrition & Dietary Trends
      • Professional & Personal Growth
    • Our Mission
    Health Magazine
    Home » News » Department of Justice charges telemedicine company Zealthy with fraud
    Health Technology

    Department of Justice charges telemedicine company Zealthy with fraud

    healthadminBy healthadminApril 20, 2026No Comments4 Mins Read
    Department of Justice charges telemedicine company Zealthy with fraud
    Share
    Facebook Twitter Reddit Telegram Pinterest Email


    The Department of Justice has filed a motion seeking an immediate asset freeze and receivership against telemedicine company Geal Sea and its CEO Kyle Robertson for allegedly fraudulent prescriptions and other deceptive practices, according to court documents.

    The Department of Justice last week filed an amended complaint against Geelsea and its CEO and founder Kyle Robertson, co-founder and former chief executive officer of mental health startup Celebral.

    “Defendant Kyle Robertson engaged in widespread misconduct at two successive telehealth companies he founded and led over the past six years, Cerebral, Inc. and then Geal Sea, Inc., harming tens of thousands of telehealth patients,” the Justice Department wrote in the amended complaint.

    Prosecutors say Geal Sea purports to provide legitimate telemedicine services, but “routine prescription orders are placed by foreign call center contractors and unlicensed non-clinicians, and the doctor’s name and National Health Care Provider Identifier (NP They are engaging in “systematic, inappropriate, and dangerous telemedicine practices,” including systematically misusing “I” numbers to order thousands of prescriptions without a doctor’s knowledge or clinical supervision for patients who have not actually ordered treatment or prescriptions. They are not even employed by Geelsea,” court documents state.

    The Justice Department filed a motion to freeze assets after obtaining new documents during the discovery phase of a 2024 lawsuit against three telehealth companies.

    Prosecutors allege that in 2025, Zilsey lost its certification from a crucial certification body called LegitScript.

    “Mr. Robertson has falsely advertised low costs, misrepresented the nature of his telehealth services, and given empty assurances to consumers, such as ‘Pay today for $0.00’ and ‘You can cancel anytime,’ all of which lure consumers into subscriptions that are difficult to cancel, while often immediately beginning to fraudulently charge their cards,” the Justice Department alleges.

    The Justice Department alleges that while Robertson led both Cerebral and Geal Sea, he “billed tens of thousands of consumers without their consent, in violation of the Restoration Online Shopper Confidence Act (ROSCA), and intentionally obstructed attempts to cancel their subscriptions.”

    The Justice Department also accuses Robertson of directing the misuse of patients’ personal health information, including data about their medical conditions, symptoms and treatments, without their knowledge “to facilitate social media marketing campaigns worth millions of dollars.”

    The Justice Department argues in its complaint that the receivership and asset freeze are necessary to stop “Robertson and Geelsy’s rampant conduct of actively deceiving telehealth patients, endangering their safety, and raiding their bank accounts.”

    The complaint states that the consumer relief and penalties for violating FTC rules in this case could result in ZELCE’s bankruptcy.

    Launching in early 2023, Zealthy offers telehealth services including GLP-1 weight loss programs, mental health care, skin care treatments, hair loss solutions, erectile dysfunction support, contraception, and hormone optimization therapy.

    In November 2024, Celebral agreed to pay more than $3.6 million in fines for allegedly engaging in conduct that encouraged the unauthorized distribution of controlled substances from 2019 to 2022. The fine was part of a non-prosecution agreement with the U.S. Attorney’s Office for the Eastern District of New York. When announcing the agreement, the federal government said the payment of additional fines against Cerebral had been deferred “taking into account the company’s current financial position.”

    A digital behavioral health company agreed in April 2024 to pay the government more than $7 million to resolve allegations that it disclosed consumers’ confidential personal health information and other sensitive data to third parties for advertising purposes and failed to honor easy cancellation promises.

    Robertson resigned from the company in May 2022 as the company faced a Justice Department investigation into its prescribing practices in “potential violations” of the Controlled Substances Act.



    Source link

    Visited 18 times, 1 visit(s) today
    Share. Facebook Twitter Pinterest LinkedIn Telegram Reddit Email
    Previous ArticleClimate change could make heat risks from humidity more dangerous, study finds
    Next Article Brain cancer awareness: The importance of molecular testing for rare brain tumor patients
    healthadmin

    Related Posts

    The Digital Health Challenge Facing Founders and Engineers in 2026

    October 7, 2026

    The Healthcare Delivery Crisis Founders Must Solve in 2026

    September 30, 2026

    The Adoption Barriers Facing Health Tech Founders and Engineers Today

    September 28, 2026

    Overcoming Barriers to Digital Health Adoption: AI Diagnostics, Wearables, and Telemedicine Innovations

    September 16, 2026

    Why Health Tech Founders Struggle with Outdated Systems and the Digital Health Breakthroughs That Solve Them

    September 14, 2026

    The Overloaded Healthcare System: Why Founders and Engineers Must Act Now

    September 6, 2026
    Add A Comment

    Comments are closed.

    Categories

    • Daily Health Tips
    • Discover
    • Environmental Health
    • Exercise & Fitness
    • Featured
    • Featured Videos
    • Financial Health & Stability
    • Fitness
    • Fitness Updates
    • Health
    • Health Technology
    • Healthy Aging
    • Healthy Living
    • Holistic Healing
    • Holistic Health & Wellness
    • Medical Research
    • Medical Research & Insights
    • Mental Health
    • Mental Wellness
    • Natural Remedies
    • New Workouts
    • Nutrition
    • Nutrition & Dietary Trends
    • Nutrition & Superfoods
    • Nutrition Science
    • Pharma
    • Preventive Healthcare
    • Professional & Personal Growth
    • Public Health
    • Public Health & Awareness
    • Selected
    • Sleep & Recovery
    • Top Programs
    • Weight Management
    • Workouts
    Popular Posts
    • 1773313737_bacteria_-_Sebastian_Kaulitzki_46826fb7971649bfaca04a9b4cef3309-620x480.jpgHow Sino Biological ProPure™ redefines ultra-low… March 12, 2026
    • pexels-david-bartus-442116The food industry needs to act now to cut greenhouse… January 2, 2022
    • 1773729862_TagImage-3347-458389964760995353448-620x480.jpgDespite safety concerns, parents underestimate the… March 17, 2026
    • 1774403998_image_28620e4b6b0047f7ab9154b41d739db1-620x480.jpgGait pattern helps distinguish between Lewy body… March 24, 2026
    • 1773209206_futuristic_techno_design_on_background_of_supercomputer_data_center_-_Image_-_Timofeev_Vladimir_M1_4.jpegMulti-agent AI systems outperform single models… March 11, 2026
    • Leukemia-620x480.jpgBiomimetic platform powers CAR T therapy for… March 9, 2026

    Demo
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss

    The Digital Health Challenge Facing Founders and Engineers in 2026

    By healthadminOctober 7, 2026

    Health tech founders, medical device engineers, and healthcare IT professionals face mounting pressure to scale telemedicine, wearable tech, and AI diagnostics amid rapid market expansion.

    The Mental Health Crisis: What Psychiatrists and Policymakers Must Address Now

    October 6, 2026

    Navigating the Flood of New Clinical Trial Data

    October 5, 2026

    The Urgent Gaps in Mental Health Care Access and Quality

    October 4, 2026

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    HealthxMagazine
    HealthxMagazine

    At HealthX Magazine, we are dedicated to empowering entrepreneurs, doctors, chiropractors, healthcare professionals, personal trainers, executives, thought leaders, and anyone striving for optimal health.

    Our Picks

    The Urgent Gaps in Mental Health Care Access and Quality

    October 4, 2026

    Integrating Medications and Non-Pharmacological Approaches: Addressing Gaps in Evidence-Based Psychiatric Care

    October 3, 2026

    Staying Ahead: Key Challenges in Tracking 2025-2026 Medical Breakthroughs

    October 2, 2026
    New Comments
      Facebook X (Twitter) Instagram Pinterest
      • Home
      • Privacy Policy
      • Our Mission
      © 2026 ThemeSphere. Designed by ThemeSphere.

      Type above and press Enter to search. Press Esc to cancel.