John Kapoor, the founder of Arizona-based Insys Therapeutics, was sentenced to 5 1/2 years (66 months) in prison for fraud and bribery schemes. These schemes were identified as being contributing factors to the opioid crisis across the country. Several additional executives will also spend time in prison, but Kapoor’s sentence is the longest.
Federal prosecutors are seeking $113 million in forfeitures from Kapoor, Reuters reported. Victims of the schemes asked for the maximum penalties while prosecutors sought 15 years. Some of the victims spoke of being prescribed addicting opioids that weren’t needed.
Former CEO of Insys, Michael Babich, was sentenced to just 30 months after pleading guilty to conspiracy to commit mail fraud and wire fraud.
Insys was paying those that were prescribing the largest amounts of Subsys, their fentanyl-based drug for severe cancer pain, as well as additional kickbacks to entice more doctors to prescribe the drug. New prescriptions, larger dosages and larger pill counts were also noted.
Assistant U.S. Attorney Nathaniel Yeager said, “It was a top-down conspiracy run by John Kapoor.”
As of now, it doesn’t appear that any appeals will be filed to reduce sentences. An amount for restitution has not been set yet.