Opioid Crisis: Indian-American Pharma CEO Jailed

Dr. John Nath Kapoor, Indian-American CEO of Insys Therapeutics, has been found guilty of conspiring to recklessly and illegally boost profits from the opioid painkiller Subsys, a fentanyl spray designed to be absorbed under the tongue, according to multiple media reports.


Dr. John Nath Kapoor
In 2018, data showed that opioid overdoses killed an average of 128 Americans everyday.  Last year, nearly 70,000 Americans died of opioid overdoses.  Opioid abuse has become a public health crisis with devastating social, economic and health consequences in vast swathes of America.  In spite of knowing the dangers opioids posed, drug companies like Kapoor's Insys heavily promoted such drugs by paying physicians to overprescribe, resulting in enormous company profits.

Kapoor has received five and a half years jail sentence.  CBS has reported that others working for him have been sentenced to serve from 12 to 33 months, in part because of the testimony of the government's star witness: Alec Burlakoff, the senior vice president of sales at Insys, who had pled guilty and cooperated with prosecutors.

Kapoor, billionaire entrepreneur and former CEO of Insys Therapeutics, was born in Amritsar, India. He studied pharmacy at Institute of Chemical Technology in Mumbai, India. He received a doctorate in medicinal chemistry from University of Buffalo, New York, in 1972. He became a major American success story until he was arrested and charged in 2017 under RICO (Racketeer Influenced and Corrupt Organizations) laws.

Earlier in June, 2020, three Indian-American physicians were found to have faked results of a hydroxychloroquine (HCQ) study they published in New England Journal of Medicine and The Lancet. Both journals were forced to retract it.

Last year, an Indian-American operator and several Indian-American and other doctors participating in a home health care business in Silicon Valley were charged by US federal prosecutors with fraud.

India and Pakistan are among the top three sources of foreign medical professionals in the United States.

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Riaz Haq said…
Today, as Mr. Vance pursues the Republican nomination for an open Senate seat in Ohio, he has performed a whiplash-inducing conversion to Trumpism, in which he no longer emphasizes that white working-class problems are self-inflicted. Adopting the grievances of the former president, he denounces “elites and the ruling class” for “robbing us blind,” as he said in his announcement speech last month.

Now championing the hard-right messages that animate the Make America Great Again base, Mr. Vance has deleted inconvenient tweets, renounced his old views about immigration and trade, and gone from a regular guest on CNN to a regular on “Tucker Carlson,” echoing the Fox News host’s racially charged insults of immigrants as “dirty.”

When working-class Americans “dare to complain about the southern border,” Mr. Vance said on Mr. Carlson’s show last month, “or about jobs getting shipped overseas, what do they get called? They get called racists, they get called bigots, xenophobes or idiots.”

“I love that,” Mr. Carlson replied.

Whether Ohio Republicans do, too, is the big question for Mr. Vance — who will crucially benefit from a $10 million super PAC funded by the tech billionaire Peter Thiel, a Trump supporter who once employed Mr. Vance.

His G.O.P. rivals in the state have had a field day. Josh Mandel, a former treasurer of Ohio who is the early front-runner in the five-candidate field, called Mr. Vance a “RINO just like Romney and Liz Cheney,” referring to the Utah senator and the Wyoming congresswoman who voted to impeach Mr. Trump for inciting the Capitol riot.
Riaz Haq said…
A 50-year-old Indian-origin tech entrepreneur has been arrested in the US for an alleged investment scheme that defrauded more than 10,000 victims of over $45 million and netted him several luxury cars and real estate.


https://www.ndtv.com/indians-abroad/indian-origin-man-neil-chandran-arrested-in-us-for-alleged-45-million-investment-fraud-3117176


Neil Chandran, of Las Vegas in Nevada, was arrested on Wednesday in Los Angeles, the Department of Justice said.

According to the indictment, Mr Chandran owned a group of technology companies that he used in a scheme to defraud investors by falsely promising extremely high returns on the premise that one or more of his companies, operated under the banner of "ViRSE," was about to be acquired by a consortium of wealthy buyers.

Mr Chandran's companies -- which included Free Vi Lab, Studio Vi Inc., ViDelivery Inc, ViMarket Inc, and Skalex USA Inc, among others -- developed virtual-world technologies, including their own cryptocurrency, for use in the companies' own metaverse.

The indictment alleges that Mr Chandran caused other individuals to make various materially false and misleading representations to investors, including that investors in his companies would soon receive extremely high returns when one or more of those companies was purchased by a group of wealthy buyers.

In fact, according to the indictment, there was no such buyer group that was about to purchase the companies for the claimed returns; a substantial portion of the funds was misappropriated for other business ventures and the personal benefit of Mr Chandran and others, including the purchase of luxury cars and real estate; and there were no prominent billionaires involved in purchasing Mr Chandran's companies.

Riaz Haq said…
Former Goldman Sachs Banker Charged in Insider-Trading Scheme
Brijesh Goel is one of nine defendants charged by Manhattan federal prosecutors in four insider-trading cases

https://www.wsj.com/articles/former-goldman-sachs-banker-charged-in-insider-trading-scheme-11658774443

A former Goldman Sachs Group Inc. vice president was charged in an insider-trading scheme in which he allegedly profited by tipping off a close friend to confidential information about coming mergers and acquisitions connected to the bank.

Federal prosecutors accused Brijesh Goel of relaying information from internal Goldman communications about potential takeovers the firm was considering financing. Mr. Goel’s friend traded on the tips, typically using a relative’s brokerage account to buy call options that would become profitable if the stock price of a company targeted for acquisition rose, according to an indictment.

Mr. Goel was one of nine defendants charged in four unrelated insider-trading cases announced Monday by federal prosecutors in Manhattan. All of the cases involved the alleged use of nonpublic information about mergers and acquisitions. The other defendants included a former congressman, a former FBI trainee and technology-company executives.

“We are keenly interested in sending a message that insider trading is still around, we are still around, and we are going to enforce it when we find it,” Damian Williams, the U.S. attorney for the Southern District of New York, said at a news conference Monday.

The four schemes collectively resulted in millions of dollars in illegal profits, prosecutors said. The Securities and Exchange Commission, which filed parallel civil charges, said three of the cases originated from an enforcement unit that uses electronic databases to detect suspicious trading patterns.

Prosecutors charged Mr. Goel with securities fraud. They also alleged that Mr. Goel, who left Goldman in 2021, sought to obstruct a grand jury investigation into the scheme by deleting electronic communications between him and the friend.

A lawyer for Mr. Goel didn’t respond to a request for comment.

A Goldman spokeswoman said the bank is cooperating with the Justice Department and the SEC.

“The 2017 and 2018 insider trading alleged by the government is egregious and illegal conduct,” the spokeswoman said. “The firm condemns such behavior, which violates our standards of conduct and business principles.”

Mr. Goel most recently worked at Apollo Global Management Inc. An Apollo spokeswoman said the firm learned of the allegations against Mr. Goel on Monday and immediately placed him on indefinite leave.

Mr. Goel and the friend often discussed confidential information over games of squash, and made about $280,000 illegally, according to the indictment. Prosecutors said the information was used to make trades tied to at least seven deals involving companies including Thermo Fisher Scientific Inc., T-Mobile US Inc. and Walgreens Boots Alliance Inc.

In a separate case, prosecutors charged former Rep. Stephen Buyer, a Republican who represented districts in Indiana from 1993 through 2011, with four counts of securities fraud. While doing consulting work after he left Congress, Mr. Buyer engaged in insider trading in connection with two different mergers, prosecutors said.

In one, Mr. Buyer provided consulting services to T-Mobile, which in 2018 publicly announced it would merge with Sprint Corp. Mr. Buyer learned of confidential information about the merger from a T-Mobile government-affairs executive, according to the indictment. The indictment also said that the unnamed executive and Mr. Buyer spoke on the phone and played golf immediately before the former congressman purchased Sprint stock.

Andrew Goldstein, a lawyer for Mr. Buyer, said his client was innocent. “His stock trades were lawful,” Mr. Goldstein said. “He looks forward to being quickly vindicated.”

A T-Mobile spokeswoman said the company cooperated with the government’s investigation.

Anonymous said…
Profile photo for Taruni Adarsh
Taruni Adarsh
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Former Wall Street InvestorUpdated Feb 26
Companies ruined or almost ruined by Indians;

Adaptec - Indian CEO Subramanian Sundaresh fired.
AIG (signed outsourcing deal in 2007 in Europe with Accenture Indian frauds, collapsed in 2009)
AirBus (Qantas plane plunged 650 feet injuring passengers when its computer system written by India disengaged the auto-pilot).
Apple - R&D CLOSED in India in 2006.
Apple - Foreign guest worker "Helen" Hung Ma caused the disastrous MobileMe product rollout.
Australia's National Australia Bank (Outsourced jobs to India in 2007, nationwide ATM and account failure in late 2010).
Bell Labs (Arun Netravalli took over, closed, turned into a shopping mall)
Boeing Dreamliner ES software (written by HCL, banned by FAA)
Bristol-Myers-Squibb (Trade Secrets and documents stolen in U.S. by Indian national guest worker)
Caymas - Startup run by Indian CEO, French director of dev, Chinese tech lead. Closed after 5 years of sucking VC out of America.
ComAir crew system run by 100% Indian IT workers caused the 12/25/05 U.S. airport shutdown when they used a short int instead of a long int
Dell - call center (closed in India because Premji's conmen don't even know how to use telephones, let alone computers)
Delta call centers (closed in India because Premji's conmen don't even know how to use telephones, let alone computers)
Fannie Mae- Hired large numbers of Indians, had to be bailed out. Indian logic bomb creator found guilty.
GM - Was booming in 2006, signed $300 million outsourcing deal with Wipro that same year, went bankrupt 3 years later
HSBC ATMs (software taken over by Indians, failed in 2006)
Intel Whitefield processor project (cancelled, Indian staff canned)
Lehman (Spectramind software bought by Wipro, ruined, trashed by Indian programmers)
Microsoft - Employs over 35,000 H-1Bs. Stock used to be $100. Today it's lucky to be over $25. Not to mention that Vista thing.
Microsoft - Lian Yang, Microsoft-Contracted Engineer, Arrested in Smuggling Plot After Another FBI Sting in Portland in 2010
MIT Media Lab Asia (canceled)
PeopleSoft (Taken over by Indians in 2000, collapsed).
Qantas - See AirBus above
Quark (Alukah Kamar CEO, fired, lost 60% of its customers to Adobe because Indian-written QuarkExpress 6 was a failure)
Rolls Royce (Sent aircraft engine work to India in 2006, engines delayed for Boeing 787, and failed on at least 2 Quantas planes in 2010, cost Rolls $500m).
Skype ( Yarlagadda fired)
State of Indiana $867 billion FAILED IBM project, IBM being sued
State of Texas failed IBM project.
Sun Micro (Taken over by Indian and Chinese workers in 2001, collapsed, has to be sold off to Oracle).
United - call center (closed in India because Premji's conmen don't even know how to use telephones, let alone computers)
Virgin Atlantic (software written in India caused cloud IT failure)
Visium Asset Management - Sanjay Valvani Insider trading
World Bank (Indian fraudsters BANNED for 3 years because they stole data).

https://www.quora.com/Do-Indians-really-ruin-a-lot-of-western-companies-or-they-are-just-scapegoats

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