Dr. John Kapoor, the founder of Insys, who was convicted in May 2019 of conspiring to bribe doctors and defraud health insurers, was sentenced to 5.5 years in prison. The Chandler, Arizona-based company had a market value of $3.2 billion in 2015. Its fentanyl drug, Subsys,was a top seller. Today Insys is worth only $3.87 million, because of all the civil lawsuits by families of those who died of overdoses and by state and local governments seeking to recoup the costs of treating those addicted to the drug. Dr. Kapoor had already surrendered his 59% interest in the company. The rights to Subsys royalties were sold for $60 million.
Prosecutors sought 15 years because of the evidence at the trial that Insys paid doctors for sham talks and offered them lap dances in exchange for increasing their Subsys prescriptions. But Judge Allison D. Burroughs was unsure whether Dr. Kappor was the central player in the conspiracy. Insys’s former CEO and a Vice President entered guilty pleas before the trial and testified against Dr. Kapoor. They received sentences of three years and 30 months, respectively. The sentences for sales personnel, who also cooperated with prosecutors, ranged from one year to 33 months.