As part of the criminal resolution, Insys agreed to a detailed statement of facts outlining its criminal conduct with respect to the illegal marketing of Subsys. Insys will enter into a five-year deferred prosecution agreement with the government, while Insys’s operating subsidiary will plead guilty to five counts of mail fraud pursuant to the plea agreement that will be filed in the District of Massachusetts. According to the terms of the criminal resolution, Insys will pay a criminal fine of $2 million and forfeiture of $28 million. The Court has not yet scheduled the plea hearing. Last month, five former Insys executives were convicted after trial of racketeering conspiracy in connection with the marketing of Subsys. In total, eight company executives have now been convicted in Boston for crimes relating to the illegal marketing of Subsys.
A former Insys Therapeutics executive, accused in an opioid bribe scheme, may have once gifted a lap dance to a doctor the company was pressuring to prescribe opioids drugs to patients. The troubling allegations are emerging as part of Insys trial in Boston.
Jurors heard the “lap dance” testimony on the second day of the federal trial in Boston against Insys Therapeutics founder, John Kapoor, and four other former executives. Apparently, Sunrise Lee, was a former exotic dancer with no experience in pharmaceuticals, who was hired to be a regional sales manager.
Holly Brown, a former Insys sales representative, testified that her superiors encouraged her and others of the sale team to focus their attention on a specific doctor who was known for prescribing a high amount of opioids, named Dr. Paul Madison. She says at one party she saw Lee sitting on Madison’s lap and “bouncing around,” with Madison’s hands “inappropriately all over” Lee’s chest. The prosecutors say this was part of an opioid bribe scheme.
The Sackler family empire comprises Purdue in America, Napp in Britain, and Mundipharma in Europe and Australasia. The companies have helped amass a £10 billion fortune, protected, in part, by the tax haven of Bermuda.
The Evening Standard in the UK released a report detailing that while their opioid painkillers are manufactured in Cambridge, the Caribbean is actually the heart of the Sacklers’ tax avoidance strategy. They report the Sackler family has allegedly diverted billions of pounds in profit to Bermuda to avoid paying millions in taxes that would have been due to the UK or Europe.
The Investigation into Opioid Companies
This week the Justice Department made a big move that could be a game changer for the nation’s opioid crisis. According to Cleveland.com, the DOJ will make a large swath of data on painkillers available, hoping the intel will be used in the fight against big pharma.
The DOJ has made its position clear when it comes to chasing after the legal makers and distributors of these drugs. Attorney General Jeff Sessions even went so far to create an Opioid Fraud Unit in order to target 12 federal districts the DOJ believes have been hardest hit by the opioid epidemic. The Opioid Fraud Unit uses data to find and target doctors or clinics they suspect are overprescribing opioids. They also want to go after pharmacists who are not properly distributing the pills. But with the release of this new data, they are hoping to help with settlement talks between the drug companies and the local governments suing them over the nation’s opioid epidemic.
A new group of federal law enforcement nabbed their first indictment of a doctor in the fight against the opioid crisis. Valley News reports, the nationwide effort of law enforcement officials gives them all new access to prescription drug databases, Medicaid and Medicare figures, coroners’ records, and other numbers compiled by the Justice Department.
The Opioid Fraud and Abuse Detection Unit is a combination of law enforcement officials in 12 regions across the country. All united by the goal of stopping fraudulent doctors faster than before. The new organization of data means they have access to which doctors are prescribing the most, how far patients will travel to see them, and whether any of those patients have died within 60 days of receiving one of their prescriptions.
United States Attorney David J. Freed said the charges of the indictment were handed down based on the belief that Gartland headed up a plan to defraud two health care benefit programs, Wellspan Health of York, PA and Medicare, by writing 221 prescriptions written in the names of three of his family members between the dates of September 2014 and August 2017. The prescriptions were for the opiates Hydrocodone, Oxycodone, Fentanyl, Morphine and other controlled substances. The majority of the prescriptions were written for Hydrocodone-Ibuprofen.
The indictment notes that the prescriptions were not written for treatment of the family members but rather for the personal use of Dr. Gartland. Because of this, the prescriptions were not written in the realm of professional medical practice and were not used for a medical reason.
Most people are aware that there is a serious Opioid crisis in America. But how many people know that the company who makes OxyContin, the highly addictive painkiller, is owned by a single family who has reaped billions of dollars of profits?
To say that the Sackler family has an impressive roster of monuments to their wealth would be an understatement. The Sackler family has had entire museums, wings, labs, stairways, and courtyards erected in their name.
From buildings and monuments to philanthropy, the Sackler name is everywhere, but the family itself is hardly ever seen. In 2015 Forbes magazine added the family to the list of America’s richest families. The billionaire family is descended from Mortimer and Raymond Sackler, two psychiatrist brothers from Brooklyn. Consisting of about 20 members, Forbes cited their wealth at a low-ball of 14 billion dollars. The family never comments publicly on the source of all that wealth – and that’s not a surprise. Most of their wealth came from sales of the narcotic painkiller, OxyContin. Since 1966 when the drug began being sold by the American branch of the Sackler’s pharmaceutical empire, Purdue Pharma, more than 200,000 people have died from overdoses on OxyContin and other painkillers.
The DOJ’s Opioid Fraud Unit is Seeing Movement in The Courts
The Department of Justice’s newly formed Opioid Fraud Unit is seeing a bit of movement in the court’s system. According to the blog White-Collared from Lexology, the Opioid Fraud Unit got its first indictment of what it considers an opioid dealer in the form a Pennsylvania physician.
Why did Congress, in the middle of the greatest drug crisis in the nation pass a law that stripped the Drug Enforcement Administration of its ability to sue companies violating drug distribution laws? The answer Massive millions of dollars contributed by lobbiests for the drug manufacturers and distributors and a unbridled propaganda campaign written and implemented in part by former DEA lawyers who went to work for private law firms representing the drug companies. The worst of American politics and lack of morality. These are the fact based conclusions of a joint 60 minutes and Washington Post investigation into the passage of a bill called “The Marino Law.”
The Undercutting Law