Scranton Doctor Indicted in Deadly Kickback Scheme

SCRANTON, PA – A Scranton doctor is facing a staggering 423-count indictment for allegedly peddling prescriptions in exchange for cold, hard cash – a scheme that prosecutors say directly led to the deaths of two individuals. Kurt Moran, 68, was indicted yesterday by the United States Attorney’s Office for the Middle District of Pennsylvania on charges of receiving healthcare kickbacks and unlawfully distributing controlled substances.

According to United States Attorney David J. Freed, Moran conspired with others beginning in December 2014 and continuing into 2017 to accept bribes in exchange for prescribing Subsys, a sublingual fentanyl spray. The drug is approved by the FDA *only* for cancer patients experiencing breakthrough pain. Moran allegedly pocketed approximately $140,000 over a two-year period for prescribing Subsys to patients who didn’t have cancer. The payments were cleverly disguised as “honoraria” for educational presentations, a transparent attempt to mask the illegal kickbacks, prosecutors allege.

But the scheme didn’t stop at financial gain. Moran is also charged with unlawfully distributing Subsys to 13 patients and, more gravely, with unlawfully prescribing Schedule II controlled substances – including oxycodone and fentanyl – which directly resulted in the deaths of a 35-year-old man and a 32-year-old woman. This isn’t just about greed; it’s about lives destroyed by a doctor who put profit over patient care.

The indictment details how Moran partnered with Insys Therapeutics, Inc. in 2014, participating in their “Insys Speaker Program” (ISP). This program wasn’t about education; it was a conduit for funneling money to doctors like Moran. The so-called “speaker programs” were often lavish social events at upscale restaurants, lacking any legitimate educational content or a relevant audience. Moran was allegedly chosen for the program precisely because he was already a high-volume prescriber of opioid medications in Pennsylvania. The more Subsys he prescribed – and the higher the dosage – the more speaking opportunities, and money, he received.

Prosecutors allege Moran prescribed *millions* of micrograms of the fentanyl spray to patients without a cancer diagnosis, and not suffering from breakthrough cancer pain. The indictment also includes multiple counts of health care fraud, alleging that Medicare, FEHBP, and private insurers paid for these fraudulent prescriptions. Had these insurers known the prescriptions were driven by kickbacks and outside standard medical practice, the claims would not have been paid.

The government is seeking forfeiture of all proceeds derived from Moran’s unlawful activity, including any U.S. currency and his medical license. “This defendant, an experienced and substantial dispenser of powerful pain medications, lined his own pockets to the detriment of his patients,” stated U.S. Attorney Freed. “He accepted bribes and kickbacks for prescribing medication narrowly approved to treat only cancer patients suffering breakthrough cancer pain. He then concealed and disguised the payments he received.” Moran is scheduled to appear before United States Magistrate Judge Karoline Mehalchick at 3:00pm on September 16, 2020.

RELATED: Wyoming County Dentist Indicted in Opioid Scheme