Drug company founder indicted in nationwide opioid conspiracy

The Associated Press

PHOENIX — U.S. prosecutorsleveled charges Thursday against the billionaire founder of an opioid medication maker that has faced increasing scrutiny from authorities across the country over allegations of pushing prescriptions of powerful painkillers amid a drug epidemic that is claiming thousandsof lives each year.

Thefraud and racketeering case against Insys Therapeutics founder John Kapoor came the same day President Donald Trump declared the opioid crisis a nationwide publichealth emergency.

The case naming Mr. Kapoor follows indictments against the company’s former CEO and other executives and managers on allegations that they provided kickbacks to doctors to prescribe apotent opioid called Subsys.

In the new indictment, Mr. Kapoor, 74, of Phoenix and the other defendants are accused of offering bribes to doctors to write large numbers of prescriptions for the fentanylbased pain medication that is meant only for cancer patients with severe pain. Most of the people who received prescriptions did not have cancer.

It also alleges that they conspired to mislead and defraud insurance providers who were reluctant to approve payment for the drug when it was prescribed for patients without cancer.

U.S. prosecutors in Boston brought the case as they vowed to go after problem opioid makers similar to how they target “cartels or a streetleveldrug dealer.”

A judge set bail at $1 million, saying Mr. Kapoor must wear electronic monitoring andsurrender his passports.