Update on Pharmaceutical Company Insys Kickback Investigation

On June 25, 2015, the New York Times reported that Heather Alfonso, a Connecticut advanced practice registered nurse, had pled guilty to federal charges of accepting $83,000 in kickbacks from Insys Therapeutics, an Arizona drug company that sells Subsys, a powerful painkiller used by cancer patients.

The article quoted Marcella Auerbach, former federal prosecutor who is now Managing Partner of Nolan Auerbach & White:

“I think it means big trouble for the company…I think it takes two to tango to do kickbacks — a giver and a receiver.”

Since that time, at least 13 former Insys executives have been indicted (including former CEO Michael Babich) on kickback charges stemming from the Boston United States Attorney’s Office.

It appears that Ms. Alfonso is a cooperating witness, whose own sentencing has been delayed until at least July 2017.

Nolan Auerbach & White has represented clients in successful kickback cases. Our firm believes that kickbacks can improperly influence prescribing habits. More information for potential whistleblowers is located on our main website: www.whistleblowerfirm.com.