On June 9, 2021, Howard Hoffberg, M.D. (“Dr. Hoffberg”) pleaded guilty to the federal charge of conspiracy to violate the anti-kickback statutes, in connection with a scheme to accept payments from Insys Therapeutics, Inc. (“Insys”) in exchange for improperly prescribing a prescription drug called Subsys. https://www.justice.gov/usao-md/pr/associate-medical-director-baltimore-county-pain-management-practice-pleads-guilty
Subsys is an under the tongue fentanyl spray that received approval from the Food and Drug Administration (“FDA”) to treat cancer patients experiencing break-through pain. Subsys, an opioid, is highly addictive.
In short, Insys devised an illegal kickback scheme to induce prescribers, like Dr. Hoffberg, to prescribe Subsys to patients who did not have cancer. Alec Burlakoff, Insys’ former Vice President of Sales, and Michael Babich, Insys’ former CEO, pleaded guilty to the scheme. In May 2019, a federal jury in Boston convicted five other former Insys executives, including Insys’ billionaire founder Dr. John Kapoor, over their conduct.
On June 5, 2019, Insys agreed to enter into a $225 million dollar resolution with the Department of Justice to resolve criminal and civil investigations. Insys’ operating subsidiary pleaded guilty to five counts of mail fraud. https://www.justice.gov/opa/pr/opioid-manufacturer-insys-therapeutics-agrees-enter-225-million-global-resolution-criminal. Days later, Insys filed for bankruptcy.
According to the DOJ press release, Dr. Hoffberg was paid $66,600 by Insys and he knew the payments were kickbacks and bribes that were paid, at least in part, to induce him to prescribe, or in exchange for him to prescribe, Subsys.
Many doctors around the country have been prosecuted for their participation in the kickback scheme. To my knowledge, Dr. Hoffberg is the first doctor in Maryland to plead guilty to accepting kickbacks from Insys. According to the DOJ, Dr. Hoffberg faces a maximum sentence of five years in federal prison. His sentencing is scheduled for September 29, 2021