Indian born currently American Pharmaceutical billionaire charged of nation conspiracy

John Nath kapoor, 74 old well- known philanthropist, current member of Board of directors of the pharmaceutical company Insys Therapeutics.  An Indian-American pharmaceutical  billionaire was 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 reports Indian express. He was arrested by the FBI from his home in Arizona yesterday on charges including racketing, conspiracy and fraud.

Attorney General Jeff Sessions said” 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”. Session also said “this justice Department will not tolerate this, we will hold accountable anyone from streets dealers to corporate executives- who illegally contributes to this nationwide epidemic”.  In December 2016 a superseding charge unsealed in Boston also includes there were several former company executives and managers accused of crime.

Kapoor and his six former executive conspired to mislead and defraud health insurance providers who were reluctant to approve payment for drug when it was prescribed for non-cancer patients. They achieved by team as goal set up which was dedicated to obtaining prior authorization directly from insurers and pharmacy benefit managers. Acting US attorney William D Weinrebsaid” 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”. He also said ‘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.

According to Insys website Kapoor is has PHD in medicinal chemistry from the state university of New York at Buffalo and BS in pharmacy from Bombay University in India, building which is home to university of Buffalo’s School of pharmacy and Pharmaceutical Sciences bears the name of Kapoor and his wife in recognition of their long time philanthropic support for the school and the University.

Current situation after arrest that the company shares fell 23% to $ 5.74, a3-day inter day low, and university also well aware of the scenario said the in charge.

Kapoor has served on Insys board of directors since formation in 1990 and has served as Chairman from 1990 to 2004 and Executive Chairman from June 2006 to January 2017.

He has large stake in generic drug maker Akron

Also listed in Forbes his net worth estimated to be USD 1.75 billion .

He step down from position as CEO and chairman of the company in January 2017  just after executive  including Kapoors predecessor as CEO Michael Babich were arrested  on charges of conspiracies to bribe doctors to subscribe Subsys, which is a Fentanyl spray to treat patient with severe cancer pain  reports as per media.