Indian-American billionaire charged with leading pharmaceutical fraud scheme in US

An Indian-American pharmaceutical billionaire was today charged with leading a nationwide conspiracy in the US by bribing doctors to over-prescribe a potent opioid to patients and committing fraud on insurance firms for profit.

John Nath Kapoor, 74, was arrested by the FBI from his home in Arizona yesterday on charges including racketeering, conspiracy and fraud.

The Amritsar-born entrepreneur and well know philanthropist, who migrated to the US from India in 1960s, is a current member of the Board of Directors of the pharmaceutical company Insys Therapeutics.

A superseding indictment, unsealed in Boston, also includes additional allegations against several former company executives and managers who were initially indicted in December 2016.

"More than 20,000 Americans died of synthetic opioid overdoses last year, and millions are addicted to opioids. And yet some medical professionals would rather take advantage of the addicts than try to help them" said attorney general Jeff Sessions.

"The Justice Department will not tolerate



this. We will hold anyone accountable, from street dealers to corporate executives, who illegally contribute to this nationwide epidemic" Sessions said.

The indictment also alleges that Kapoor and six former executives conspired to mislead and defraud health insurance providers who were reluctant to approve payment for the drug when it was prescribed for non-cancer patients.

They achieved this goal by setting up the reimbursement unit, which was dedicated to obtaining prior authorisation directly from insurers and pharmacy benefit managers.

"In the midst of a nationwide opioid epidemic that has reached crisis proportions, Mr. Kapoor and his company stand accused of bribing doctors to over-prescribe a potent opioid and committing fraud on insurance companies solely for profit" said acting US Attorney William D Weinreb.

"Today's arrest and charges reflect our ongoing efforts to attack the opioid crisis from all angles. We must hold the industry and its leadership accountable - just as we would the cartels or a street-level drug dealer," he said.