Pharma Exec Arrested in Fentanyl Scandal
John N. Kapoor, 74, a current member of the Board of Directors of Insys Therapeutics Inc., was arrested today and charged with leading a nationwide conspiracy to profit by using bribes and fraud to cause the illegal distribution of a fentanyl spray intended for cancer patients experiencing breakthrough pain.
According to the indictment, Kapoor, along with several former Insys executives, conspired to bribe practitioners in various states to prescribe a fentanyl-based pain medication, called "Subsys," which is a powerful narcotic intended to treat cancer patients suffering intense breakthrough pain. In exchange for bribes and kickbacks, the practitioners wrote large numbers of prescriptions for the patients, most of whom were not diagnosed with cancer.
The indictment also alleges that Kapoor and the former executives conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients. They achieved this goal by setting up the "reimbursement unit," which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers.
"More than 20,000 Americans died of synthetic opioid overdoses last year, and millions are addicted to opioids. And yet some medical professionals would rather take advantage of the addicts than try to help them," said Attorney General Jeff Sessions. "This Justice Department will not tolerate this. We will hold accountable anyone – from street dealers to corporate executives — who illegally contributes to this nationwide epidemic."
Kapoor, who will appear in federal court in Phoenix today, faces charges of RICO conspiracy, conspiracy to commit mail and wire fraud, and conspiracy to violate the Anti-Kickback Law. The superseding indictment, unsealed today in Boston, also includes additional allegations against several former Insys executives and managers who were initially indicted in December 2016.
As the opioid crisis continues to ravage the nation, Kapoor and his company stand accused of exploiting the suffering of others for profit. The indictment alleges that the executives created a corporate culture at Insys that utilized deception and bribery as an acceptable business practice, deceiving patients, and conspiring with doctors and insurers.
Kapoor’s company, Insys Therapeutics Inc., is a pharmaceutical company that developed and marketed the fentanyl-based pain medication, Subsys. The company has faced numerous lawsuits and investigations in recent years due to its role in the opioid crisis. Kapoor’s arrest and charges reflect the ongoing efforts to attack the opioid crisis from all angles and hold the industry and its leadership accountable.
Mandatory Facts: Defendant/Respondent: John N. Kapoor; Exact Criminal Charges: RICO conspiracy, conspiracy to commit mail and wire fraud, and conspiracy to violate the Anti-Kickback Law; City and State: Phoenix, Arizona; Exact Date: [Not specified]; Sentence or Outcome: [Awaiting trial].
Key Facts
- State: Federal
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
