30-month prison sentence handed to former Insys Therapeutics CEO for opioid fraud

Spinal Tech

Former Insys Therapeutics CEO Michael Babich was sentenced to 30 months in prison Jan. 22 for his role in a kickback scheme encouraging physicians to prescribe more opioids, Bloomberg Law reports.

Prosecutors said Mr. Babich engaged in daily calls with Insys founder and former CEO John Kapoor and other executives — convicted in May — in the scheme and tracked sales of the company's painkiller, Subsys.

Mr. Babich cooperated with prosecutors in the May trial, in which he detailed the kickback scheme to the jury.

A string of ex Insys employees were recently convicted in the scheme, including two former regional sales managers, a former national sales director and a former vice president.

Prosecutors are seeking a 15-year sentence for Mr. Kapoor Jan. 23.

Editor's note: This story will be updated as more information becomes available.

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