On May 2, 2019 Insys founder and former Executive Chairman of the Board John Kapoor was convicted of by a federal jury of RICO conspiracy.
The conviction centered on a nationwide conspiracy to bribe and pay kickbacks to medical practitioners to unnecessarily prescribe Subsys® (a Fentanyl spray) to patients and the defrauding of patient’s insurance providers.
Also found guilty were: Richard M. Simon, Insys’ former National Director of Sales; Sunrise Lee, Insys’ former Regional Sales Director; Joseph A. Rowan, Insys’ former Regional Sales Director; and Michael J. Gurry, Insys’ former Vice President of Managed Markets.
Prior to trial, Michael Babich, Insys’ former CEO, and Alec Burlakoff, Insys’ former Vice President of Sales, pleaded guilty.
The sentencing dates for these executives is as follows:
- Defendant Richard Simon is scheduled to be sentenced on November 5, 2019 at 2:30 PM.
- Defendant Sunrise Lee is scheduled to be sentenced on November 7, 2019 at 02:00 PM.
- Defendant John Kapoor is scheduled to be sentenced on November 12, 2019 at 02:00 PM.
- Defendant Michael Babich is scheduled to be sentenced on November 13, 2019 at 2:00 PM.
- Defendant Alec Burlakoff is scheduled to be sentenced on November 14, 2019 at 2:00 PM.
- Defendant Michael Gurry is scheduled to be sentenced on November 18, 2019 at 02:00 PM.
- Defendant Joseph Rowan is scheduled to be sentenced on November 20, 2019 at 02:00 PM.
UPDATE: The Sentencing of Insys’ Executives Moved to January, 2020.
The sentencing of Insys’ Executives has been reset to the below dates at times:
Defendant John Kapoor, Sentencing: January 10, 2020 at 10:00 AM Courtroom 17, John Joseph Moakley Courthouse
Defendant Michael Gurry, Sentencing: January 6, 2020 at 10:30 AM Courtroom 17 John Joseph Moakley Courthouse
Defendant Joseph Rowan, Sentencing: January 8, 2020 at 02:00 PM at Courtroom 17 John Joseph Moakley Courthouse
Defendant Michael Babich, Sentencing: January 9, 2020 at 10:00 AM in Courtroom 17 John Joseph Moakley Courthouse
Defendant Alec Burlakoff, Sentencing: January 9, 2020 at 02:00 PM in Courtroom 17 John Joseph Moakley Courthouse
Defendant Sunrise Lee, Sentencing: January 8, 2020 at 10:00 AM in Courtroom 17 John Joseph Moakley Courthouse
Defendant Richard Simon, Sentencing: January 7, 2020 at 2:00 PM in Courtroom 17 John Joseph Moakley Courthouse
UPDATE: Michael Gurry Sentenced
Former Insys Vice President of Managed Markets, Michael Gurry, was sentenced to nearly three years in prison for his role in conspiring to bribe practitioners to prescribe Subsys, an under the tongue fentanyl-spray medication.
For his role, Gurry helped create the Insys Reimbursement Center (IRC), which utilized various tactics to trick insurers to pay for Subys, an extremely expensive drug. For instance, Gurry authorized “the spiel,” which was used to trick insurers into believing that Subsys had been prescribed to treat a patient’s breakthrough cancer pain, when the patient never had cancer. Other tactics included tricking insurance companies to believe that patient’s had a diagnosis of dysphagia, or difficulty swallowing, when patients did not suffer from the condition.
Gurry will serve 33 months in prison along with three years of supervised release and was ordered by the court to forfeit $3.6 million.
The sentencing hearing for Insys other executives involved in the bribery scheme is set forth below:
Richard M. Simon- January 21, 2020 at 10:00 AM
Joseph Rowan- January 21, 2020 at 11:00 AM
Sunrise Lee- January 22, 2020 at 10:00 AM
Michael L. Babich- January 22, 2020 at 02:00 PM
Alec Burlakoff- January 23, 2020 at 10:00 AM
John Kapoor- January 23, 2020 at 2:30 PM
UPDATE: Richard Simon Sentenced
UPDATE: Joseph Rowan Sentenced
UPDATE: Sunrise Lee Sentenced
UPDATE: Michael Babich Sentenced
UPDATE: Alec Burlakoff Sentenced
UPDATE: John Kapoor Sentenced