Former Insys VP tagged with 33-month sentence in Subsys kickback scheme
Insys founder John Kapoor still faces sentencing after his May conviction. (Pixabay)
Former executives at Insys, the maker of powerful fentanyl spray Subsys, have been hammered hard by federal prosecutors in a wide-ranging kickbacks probe that also led to the company's bankruptcy. Now, another former C-suite executive is facing prison time for his role in the scheme.
Michael Gurry, a former Insys vice president, was sentenced Monday to up to 33 months in federal prison after his May 2019 conviction on racketeering conspiracy charges in Massachusetts court. Gurry will also face up to 33 months of probation upon release.
Immediately after the sentencing, Gurry's attorneys filed for a stay of incarceration pending appeal.
Gurry was one of a group of former Insys executives, including founder John Kapoor, who directed sales members to entice doctors to prescribe Subsys through an elaborate series of kickbacks. The scheme included visits to strip clubs, “lavish” dining and entertainment outings, and jobs for relatives and friends of people who prescribed Subsys.
In May, Kapoor was found guilty on racketeering conspiracy charges of his own, making him the highest-ranking executive of an opioid maker convicted for his role in the nation's addiction crisis.
Federal judge Allison Burroughs, who sentenced Gurry on Monday, tossed out part of Kapoor's conviction in November, arguing prosecutors failed to present evidence showing Kapoor and three former Insys sales executives intended for Subsys to be prescribed to patients for nonmedical purposes. Kapoor still awaits sentencing on federal charges in Boston.