In an update to the shady and criminal dealings that went on within Insys Therapeutics, two additional former executives were recently sentenced to more than two years in federal prison for their part in the bribery and kickback scheme. For those who need a refresher, several Insys executives have been found guilty for participating in a conspiracy to bribe practitioners to prescribe Subsys, a fentanyl-based pain medication, often when it was not medically necessary.
Richard Simon, the former national sales director at Insys, was sentenced to 33 months in prison. Simon was also sentenced to three years of supervised release following his prison term, pay $2.3 million in forfeiture, and pay restitution (amount to be determined).
Joseph Rowan, the former regional sales director at Insys, was sentenced to 27 months in prison for his part in the scheme. Following his prison term, Rowan is to serve three years of supervised release, pay forfeiture, and pay restitution (amount to be determined).
These sentences are less than what prosecutors sought in each case – more than 10 years in prison – but more than what their own lawyers argued for – a year or less.
Other Executives’ Sentences
Other Insys executives have been sentenced for their roles in the scheme, as well.
Michael Gurry, the former vice president of managed markets at Insys, was sentenced to 33 months in prison, followed by three years of supervised release. He was scheduled to self-surrender on February 25, 2020. Additionally, he is to pay forfeiture and restitution (amount to be determined).
Michael Babich, the former CEO of Insys, was sentenced to 30 months in prison. He was also sentenced to the three years of supervised release, and restitution and forfeiture (amount to be determined). This was in excess of the two years prosecutors had recommended due to his guilty plea and testimony in the trial. While U.S. District Court Judge Allison D. Burroughs did give him credit for that, in her sentencing, she noted that she found him to be one of the three “co-architects” of the conspiracy, which resulted in the heaver sentence.
Sunrise Lee, a former regional sales director for Insys, was sentenced to a year and one day in prison. She was also sentenced to three years of supervised release following her term, restitution and forfeiture (amounts to be determined). Lee had an interesting argument to reduce her sentence: as a former exotic dancer, she argued that Insys hired her only to “smile and close” deals. Her attorneys put forth an argument that drug makers target female college grads to help sell their products in the predominantly male field of medicine, “thriv[ing] on former models and cheerleaders with no background in science.
Alec Burlakoff, the former vice president of sales at Insys, was sentenced to 26 months in prison, despite pleading guilty and becoming a key government witness. Burlakoff will also serve three years of supervised release and is ordered to pay restitution and forfeiture (amounts to be determined).
And last but certainly not least, John Kapoor, the founder and former CEO of Insys, was sentenced to 66 months in prison. Following his prison term, he will serve three years of supervised release and is ordered to pay forfeiture and restitution (amounts to be determined). This sentence is lighter than the 15 year prison term the government sought in this case.