Billionaire founding father of Insys pleads not responsible to opioid bribe scheme

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FILE PHOTO: The billionaire founder of Insys Therapeutics Inc. John Kapoor, exits the federal court house after a bail hearing in Phoenix, Arizona , U.S., October 27, 2017.  REUTERS/Conor Ralph/File Photo
FILE
PHOTO: The billionaire founding father of Insys Therapeutics Inc. John
Kapoor, exits the federal court docket home after a bail listening to in
Phoenix

Thomson
Reuters


By Nate Raymond

BOSTON (Reuters) – The billionaire founding father of drugmaker Insys
Therapeutics Inc pleaded not responsible on Thursday to prices that
he participated in a scheme to bribe docs to prescribe a
fentanyl-based spray to deal with ache in most cancers sufferers.

John Kapoor, who stepped down as Insys’ chief government officer
and chairman in January however stays its majority shareholder,
entered his plea in Boston federal court docket to prices of conspiracy
to commit racketeering, mail fraud and wire fraud.

Kapoor, 74, was arrested in Phoenix, Arizona, on Oct. 26. In
court docket papers filed forward of the listening to, Kapoor’s attorneys known as
the allegations towards him “thin.”

“He doesn’t believe it’s a strong case,” Brian Kelly, Kapoor’s
lawyer, mentioned. “He wants to fight this case.”

U.S. authorities have been preventing an opioid dependancy epidemic
that the U.S. Centers for Disease Control and Prevention linked
to greater than 33,000 deaths in 2015, the newest yr for which
statistics can be found.

The case adopted investigations centered on Chandler,
Arizona-based Insys’ product Subsys, an under-the-tongue spray
that comprises fentanyl, an artificial opioid.

Following Kapoor’s arrest, Insys on Oct. 29 introduced he had
resigned from its board and it had recorded $150 million as its
finest estimate for the minimal quantity it will pay to settle the
U.S. Department of Justice probe.

Kapoor was charged in an indictment that added him as a defendant
in a case towards six former Insys executives and managers
initially charged in December 2016, together with ex-Chief Executive
Michael Babich.

The indictment mentioned that, starting in 2012, Kapoor, Babich and
others devised a scheme to pay speaker charges and different bribes to
medical practitioners to prescribe Subsys and to defraud insurers
into approving fee.

In court docket, Kelly urged U.S. Magistrate Judge Jennifer Boal to carry
a requirement that Kapoor put on an digital GPS-monitoring
bracelet whereas free on a $1 million bond. His attorneys mentioned the
gadget interfered together with his day by day jogging.

Assistant U.S. Attorney Nathaniel Yeager objected, saying
prosecutors nervous Kapoor might use his wealth to flee the
nation. He mentioned prosecutors imagine Kapoor has entry to at
least $2 billion.

“The amount of cash he has, we might by no means actually safe his
presence, and we would have a really tough time getting him again,”
Yeager mentioned.

Kelly countered that Kapoor knew in regards to the investigation since
2013 but by no means fled. Boal didn’t instantly rule.

(Reporting by Nate Raymond in Boston; Editing by David Gregorio
and Bernadette Baum)

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