The Rheumatologist
COVID-19 News
  • Connect with us:
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • Feed
  • Home
  • Conditions
    • Rheumatoid Arthritis
    • SLE (Lupus)
    • Crystal Arthritis
      • Gout Resource Center
    • Spondyloarthritis
    • Osteoarthritis
    • Soft Tissue Pain
    • Scleroderma
    • Vasculitis
    • Systemic Inflammatory Syndromes
    • Guidelines
  • Resource Centers
    • Axial Spondyloarthritis Resource Center
    • Gout Resource Center
    • Psoriatic Arthritis Resource Center
    • Rheumatoid Arthritis Resource Center
    • Systemic Lupus Erythematosus Resource Center
  • Drug Updates
    • Biologics & Biosimilars
    • DMARDs & Immunosuppressives
    • Topical Drugs
    • Analgesics
    • Safety
    • Pharma Co. News
  • Professional Topics
    • Ethics
    • Legal
    • Legislation & Advocacy
    • Career Development
      • Certification
      • Education & Training
    • Awards
    • Profiles
    • President’s Perspective
    • Rheuminations
    • Interprofessional Perspective
  • Practice Management
    • Billing/Coding
    • Quality Assurance/Improvement
    • Workforce
    • Facility
    • Patient Perspective
    • Electronic Health Records
    • Apps
    • Information Technology
    • From the College
    • Multimedia
      • Audio
      • Video
  • Resources
    • Issue Archives
    • ACR Convergence
      • Systemic Lupus Erythematosus Resource Center
      • Rheumatoid Arthritis Resource Center
      • Gout Resource Center
      • Abstracts
      • Meeting Reports
      • ACR Convergence Home
    • American College of Rheumatology
    • ACR ExamRheum
    • Research Reviews
    • ACR Journals
      • Arthritis & Rheumatology
      • Arthritis Care & Research
      • ACR Open Rheumatology
    • Rheumatology Image Library
    • Treatment Guidelines
    • Rheumatology Research Foundation
    • Events
  • About Us
    • Mission/Vision
    • Meet the Authors
    • Meet the Editors
    • Contribute to The Rheumatologist
    • Subscription
    • Contact
  • Advertise
  • Search
You are here: Home / Articles / Former Insys CEO Pleads Guilty to Opioid Kickback Scheme

Former Insys CEO Pleads Guilty to Opioid Kickback Scheme

January 10, 2019 • By Nate Raymond

  • Tweet
  • Email
Print-Friendly Version / Save PDF

BOSTON (Reuters)—The former chief executive of Insys Therapeutics Inc pleaded guilty on Wednesday to participating in a nationwide scheme to bribe doctors to prescribe an addictive opioid medication and has agreed to become a government witness.

You Might Also Like
  • Rhode Island Doctor Pleads Guilty to Opioid Kickback Scheme
  • Insys to Pay $150 Million to Settle U.S. Opioid Kickback Probe
  • Arizona Accuses Insys of Fraudulent Opioid Marketing Scheme
Also By This Author
  • S.C. Sues Purdue, Maker of OxyContin, Over Deceptive Marketing

Michael Babich, who resigned as the Arizona-based drugmaker’s CEO in 2015, pleaded guilty in federal court in Boston to conspiracy and mail fraud charges after entering into a cooperation deal with prosecutors.

ad goes here:advert-1
ADVERTISEMENT
SCROLL TO CONTINUE

His plea comes less than three weeks before five former Insys executives and managers including John Kapoor, its onetime billionaire founder and former chairman, face trial after being charged with participating in the scheme.

Babich, 42, faces up to 25 years in prison. But the Arizona resident could receive a more lenient sentence by testifying at Kapoor’s Jan. 28 trial. Assistant U.S. Attorney Fred Wyshak in court said Babich committed his crimes at Kapoor’s direction.

ad goes here:advert-2
ADVERTISEMENT
SCROLL TO CONTINUE

Kapoor and his co-defendants have pleaded not guilty to racketeering conspiracy. Beth Wilkinson, Kapoor’s lawyer, had no comment after attending Wednesday’s hearing.

Prosecutors allege that from 2012 to 2015, Kapoor, Babich and others conspired to pay doctors bribes in exchange for prescribing Subsys, an under-the-tongue fentanyl spray for managing severe pain in cancer patients.

Fentanyl is an opioid 100 times stronger than morphine.

ad goes here:advert-3
ADVERTISEMENT
SCROLL TO CONTINUE

Prosecutors said Insys paid doctors kickbacks in the form of fees to participate in speaker programs ostensibly meant to educate medical professionals about Subsys that were actually sham events.

Prior to working at Insys, Babich had worked at Kapoor’s venture capital firm.

Insys in August said it had agreed to pay at least $150 million as part of a settlement with the U.S. Justice Department. The company has said it has taken steps to ensure it operates legally going forward.

Prosecutors called the case a major example of their efforts to combat the nation’s opioid epidemic. According to the U.S. Centers for Disease Control and Prevention, opioids were involved in a record 47,600 overdose deaths in 2017.

Babich’s plea comes after Alec Burlakoff, Insys’ former vice president of sales, pleaded guilty in November and agreed to testify as a government witness.

Babich is married to a former Insys sales representative, Natalie Babich, who in 2017 pleaded guilty to conspiring to pay kickbacks.

She testified last month at the trial of Christopher Clough, a former physician assistant in New Hampshire accused of accepting kickbacks from Insys. A federal jury in Concord, New Hampshire, convicted Clough on Dec. 18.

Pages: 1 2 | Single Page

Filed Under: Pharma Co. News Tagged With: guilty plea, Insys CEO, Insys Therapeutics Inc, Michael Babich, opioid crisis, opioid kickback scheme

You Might Also Like:
  • Rhode Island Doctor Pleads Guilty to Opioid Kickback Scheme
  • Insys to Pay $150 Million to Settle U.S. Opioid Kickback Probe
  • Arizona Accuses Insys of Fraudulent Opioid Marketing Scheme
  • Prosecutors Identify Insys Founder as Unindicted Co-conspirator in Opioid Case

Rheumatology Research Foundation

The Foundation is the largest private funding source for rheumatology research and training in the U.S.

Learn more »

American College of Rheumatology

Visit the official website for the American College of Rheumatology.

Visit the ACR »

Simple Tasks

Learn more about the ACR’s public awareness campaign and how you can get involved. Help increase visibility of rheumatic diseases and decrease the number of people left untreated.

Visit the Simple Tasks site »

The Rheumatologist newsmagazine reports on issues and trends in the management and treatment of rheumatic diseases. The Rheumatologist reaches 11,500 rheumatologists, internists, orthopedic surgeons, nurse practitioners, physician assistants, nurses, and other healthcare professionals who practice, research, or teach in the field of rheumatology.

About Us / Contact Us / Advertise / Privacy Policy / Terms of Use

  • Connect with us:
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • Feed

Copyright © 2006–2022 American College of Rheumatology. All rights reserved.

ISSN 1931-3268 (print)
ISSN 1931-3209 (online)

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.