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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:00,750 --> 00:00:06,769 In this episode of American Greed, a billionaire CEO who preys on patients in 2 00:00:06,770 --> 00:00:11,030 pain. They're drug pushers and that's basically what they are. 3 00:00:11,290 --> 00:00:16,789 Go inside the criminal scheme of John Kapoor, whose drug company cashes in big 4 00:00:16,790 --> 00:00:18,830 time on the opioid crisis. 5 00:00:19,110 --> 00:00:23,369 People don't matter. Laws don't matter. Morality doesn't matter. You care about 6 00:00:23,370 --> 00:00:24,420 money. 7 00:00:24,790 --> 00:00:28,630 Bribing doctors to prescribe high doses of its addictive product. 8 00:00:29,400 --> 00:00:32,320 Kapoor's team adds fuel to the deadly epidemic. 9 00:00:33,360 --> 00:00:39,839 To really throw that to the wind and to say that profits matter more is what we 10 00:00:39,840 --> 00:00:40,619 have here. 11 00:00:40,620 --> 00:00:43,680 And trusting victims pay a horrible price. 12 00:00:44,080 --> 00:00:48,679 Not one day goes by that there isn't some time during the day that you're 13 00:00:48,680 --> 00:00:53,539 reminded she's gone. Kapoor becomes the first big pharma chairman of the board 14 00:00:53,540 --> 00:00:54,590 to go to jail. 15 00:00:54,840 --> 00:00:58,560 And tonight his top salesman sits down with American Breed. 16 00:00:59,070 --> 00:01:04,469 To share his secrets. I'm simply telling the truth because people deserve the 17 00:01:04,470 --> 00:01:05,520 truth. 18 00:01:18,570 --> 00:01:25,529 At the height of America's deadly opioid epidemic 19 00:01:25,530 --> 00:01:27,130 comes a stunning arrest. 20 00:01:28,840 --> 00:01:34,179 And it's not some no -name middle manager at a huge company or an over 21 00:01:34,180 --> 00:01:35,300 -prescribing doctor. 22 00:01:35,900 --> 00:01:38,820 No, this arrest is at the very top. 23 00:01:39,060 --> 00:01:43,819 The founder and chairman of the board of a major pharmaceutical company, Incest 24 00:01:43,820 --> 00:01:49,259 Therapeutics. John Kapoor is charged with conspiring to bribe doctors to push 25 00:01:49,260 --> 00:01:52,540 his addictive and potentially deadly drug, substance. 26 00:01:52,780 --> 00:01:57,440 It's a stunning turn for a man who seems to embody the American dream. 27 00:01:58,160 --> 00:02:04,099 He was a guy who was looking to build things and was willing to push very hard 28 00:02:04,100 --> 00:02:08,239 to do it. An immigrant from India who'd come to the United States with almost 29 00:02:08,240 --> 00:02:12,260 nothing, Kapoor has built a fortune over decades in the drug business. 30 00:02:13,580 --> 00:02:18,039 I mean, he succeeded in an industry that has seen more than its fair share of 31 00:02:18,040 --> 00:02:19,090 failures. 32 00:02:19,720 --> 00:02:25,679 And with the help of photo ops like this, he's also built a reputation as a 33 00:02:25,680 --> 00:02:30,739 philanthropist. After donating more than $10 million to the University of 34 00:02:30,740 --> 00:02:36,359 Buffalo, his alma mater, Kapoor gets his name on a building in return, a coveted 35 00:02:36,360 --> 00:02:37,410 symbol of success. 36 00:02:38,340 --> 00:02:43,899 It's really good to be back here today to participate in what I consider a 37 00:02:43,900 --> 00:02:48,260 milestone day in the history of School of Pharmacy. 38 00:02:48,800 --> 00:02:52,760 But in truth, John Kapoor's long career has been shattered by controversy. 39 00:02:54,160 --> 00:02:59,779 In 1987, Kapoor is running an Illinois -based company called Lifomed that 40 00:02:59,780 --> 00:03:02,160 markets its products as the best. 41 00:03:03,160 --> 00:03:07,280 One is an infection -fighting drug called Pentamidine. 42 00:03:08,220 --> 00:03:13,440 At the time, the AIDS epidemic is ravaging communities across the country. 43 00:03:13,950 --> 00:03:18,009 It's a deadly disease which has been spreading unchecked. Tens of thousands 44 00:03:18,010 --> 00:03:19,930 infected Americans are dying. 45 00:03:20,190 --> 00:03:24,310 Many are suffering from a type of pneumonia known as PCP. 46 00:03:24,850 --> 00:03:31,789 In the 80s, 75 % of people who were diagnosed with HIV AIDS 47 00:03:31,790 --> 00:03:37,370 had PCP. And it was one way that people with AIDS were dying. 48 00:03:37,710 --> 00:03:39,810 There is a desperate need for treatment. 49 00:03:40,510 --> 00:03:45,070 And the most effective drug available is John Kapoor's pentamidine. 50 00:03:45,570 --> 00:03:50,270 And so in the crisis of the epidemic, Kapoor sees dollar signs. 51 00:03:51,170 --> 00:03:58,029 Claiming unforeseen expenses, he jacked up the price of the drug by 300%. We 52 00:03:58,030 --> 00:04:03,970 saw that as price gouging, which I can't imagine any other term to use for it. 53 00:04:04,170 --> 00:04:06,350 And we were outraged. 54 00:04:06,970 --> 00:04:09,750 Chicago's AIDS activists are primed for protest. 55 00:04:10,490 --> 00:04:14,220 And they take to the highway, straight out to Life -O -Med's headquarters. 56 00:04:15,070 --> 00:04:20,649 We had a huge banner that said, Death -O -Med. 57 00:04:21,810 --> 00:04:23,550 Get it? Life -O -Med? 58 00:04:23,770 --> 00:04:24,820 Death -O -Med. 59 00:04:24,990 --> 00:04:31,849 We set up a graveyard on the lawn of Life -O -Med, laid 60 00:04:31,850 --> 00:04:33,290 down, and did a diet. 61 00:04:33,590 --> 00:04:37,350 The controversy puts Kapoor's name into national news stories. 62 00:04:38,250 --> 00:04:40,970 But he is largely untouched by the crisis. 63 00:04:41,830 --> 00:04:47,030 Later, he sells Life of Med and reportedly clears $100 million in the 64 00:04:48,210 --> 00:04:53,349 And for Gene Crocker, Kapoor's price hike of pentamidine will always be 65 00:04:53,350 --> 00:04:54,400 infuriating. 66 00:04:55,270 --> 00:04:56,550 Many, many people died. 67 00:04:57,230 --> 00:05:00,000 Many, many people struggled to get those medications. 68 00:05:00,490 --> 00:05:06,029 I mean, if that's not greed, if that is not an immoral act, I don't know what 69 00:05:06,030 --> 00:05:07,080 is. 70 00:05:08,720 --> 00:05:13,799 Over the next two decades, John Kapoor invests in multiple drug companies, and 71 00:05:13,800 --> 00:05:15,180 the millions add up. 72 00:05:16,380 --> 00:05:22,240 At age 68, he is a wealthy man and living in Arizona. 73 00:05:23,300 --> 00:05:25,200 But he is not here to retire. 74 00:05:25,540 --> 00:05:30,300 On the contrary, he has founded a company, Insys Therapeutics. 75 00:05:30,900 --> 00:05:37,219 And in 2012, he is about to launch a new product, just in time for a new 76 00:05:37,220 --> 00:05:38,270 epidemic. 77 00:05:38,680 --> 00:05:39,840 The opioid epidemic. 78 00:05:40,860 --> 00:05:46,639 Again, thousands of people are sick and dying. But this time, the cause is not a 79 00:05:46,640 --> 00:05:50,579 virus. But the latest front in the war on drugs turns out it's your medicine 80 00:05:50,580 --> 00:05:51,630 cabinet. 81 00:05:54,740 --> 00:05:59,440 Without a doubt, the start of the epidemic rests with prescription drugs. 82 00:05:59,960 --> 00:06:06,500 It was the really appalling sales tactic that pharmaceutical companies... 83 00:06:06,890 --> 00:06:13,789 used to widely promote their products. And that really led to the massive 84 00:06:13,790 --> 00:06:16,490 overuse of opioids in the population. 85 00:06:17,350 --> 00:06:22,949 And into this epidemic of addiction caused by prescription drugs, Kapoor 86 00:06:22,950 --> 00:06:25,970 introduces his own highly addictive prescription drug. 87 00:06:26,270 --> 00:06:32,529 Made from fentanyl, a drug 50 to 100 times more powerful than morphine, it's 88 00:06:32,530 --> 00:06:33,670 called subsus. 89 00:06:34,370 --> 00:06:38,649 Kapoor's company promotes the drug in videos like this as an under -the 90 00:06:38,650 --> 00:06:42,490 spray, approved by the FDA for cancer patients. 91 00:06:43,570 --> 00:06:50,089 It's a rapid -onset opioid designed to treat cancer patients who are already on 92 00:06:50,090 --> 00:06:51,530 an around -the -clock opioid. 93 00:06:51,670 --> 00:06:54,020 It's not rocket science. It's a dangerous drug. 94 00:06:54,210 --> 00:06:56,990 Kapoor has paid for the development of sepsis himself. 95 00:06:57,610 --> 00:07:01,250 Close to $60 million of his own money is on the line. 96 00:07:02,200 --> 00:07:07,039 The drug hits the market in March 2012, but the sales are not good enough for 97 00:07:07,040 --> 00:07:12,619 Kapoor. Kapoor is really unhappy. He calls it the worst effing pharmaceutical 98 00:07:12,620 --> 00:07:14,790 launch in the history of pharmaceuticals. 99 00:07:15,180 --> 00:07:21,139 Eager to make his drug quickly profitable, Kapoor looks for a VP of 100 00:07:21,140 --> 00:07:26,920 for success, and he finds him in an experienced drug salesman, Alec 101 00:07:28,740 --> 00:07:31,560 Berlikoff is laser -focused on making money. 102 00:07:31,960 --> 00:07:36,620 And lots of it motivated, he says, by a traumatic childhood experience. 103 00:07:38,260 --> 00:07:42,919 When we grew up in Long Island, New York, and my dad came to us and said, 104 00:07:42,920 --> 00:07:43,699 out of money. 105 00:07:43,700 --> 00:07:45,640 We got to go. We got to move to Florida. 106 00:07:46,020 --> 00:07:47,460 I got to start all over again. 107 00:07:48,040 --> 00:07:51,959 That's what I'm afraid of. And I promised myself I would never allow that 108 00:07:51,960 --> 00:07:53,010 happen. 109 00:07:53,300 --> 00:07:57,720 And so he signs on with the billionaire entrepreneur, John Kapoor. 110 00:07:58,220 --> 00:08:00,780 I thought this was the opportunity of a lifetime. 111 00:08:01,580 --> 00:08:08,039 That anyone would want to be in my shoes and be able to take orders from a man 112 00:08:08,040 --> 00:08:11,200 who made money. 113 00:08:11,900 --> 00:08:15,180 Next, meet the Incess sales team. 114 00:08:15,181 --> 00:08:18,779 This was the kind of person that they wanted in the company. Someone who would 115 00:08:18,780 --> 00:08:21,660 willingly use her sexuality to sell. 116 00:08:31,210 --> 00:08:36,389 More than 10 years into America's opioid epidemic, Ensis Therapeutics founder 117 00:08:36,390 --> 00:08:41,928 John Kapoor is looking to turbocharge sales of the company's powerful new 118 00:08:41,929 --> 00:08:43,730 opioid, Subsys. 119 00:08:44,130 --> 00:08:49,549 And in 2013, that high -powered sales effort makes its way to Corpus Christi, 120 00:08:49,550 --> 00:08:54,929 Texas. There, for 20 years, Paul Lara builds a thriving business catching 121 00:08:54,930 --> 00:08:57,650 shrimp. I bought a big boat. 122 00:08:57,990 --> 00:08:59,650 Really big, beautiful boat. 123 00:09:00,110 --> 00:09:01,970 And then I was really catching shrimp. 124 00:09:01,971 --> 00:09:05,529 I thought I was going to do that the rest of my life, without a doubt. 125 00:09:05,530 --> 00:09:08,890 His daughter, Ashley, loves sharing the life with her dad. 126 00:09:08,891 --> 00:09:11,369 That was kind of my favorite Saturday thing. 127 00:09:11,370 --> 00:09:15,349 You know, we'd have a fun day sailing and just finding all kinds of creatures 128 00:09:15,350 --> 00:09:18,130 the box that came out of the waters. 129 00:09:18,350 --> 00:09:22,110 One day, however, Laura makes a misstep getting off the boat. 130 00:09:22,470 --> 00:09:25,230 And I fell and I hit my neck and my lower back. 131 00:09:26,670 --> 00:09:28,270 And my life changed completely. 132 00:09:29,710 --> 00:09:33,190 Seven years later, Lara is still in a world of pain. 133 00:09:34,010 --> 00:09:39,429 Oh, my pain was excruciating. I had already had the back surgery and I was 134 00:09:39,430 --> 00:09:40,480 in so much pain. 135 00:09:41,210 --> 00:09:46,749 What he does not know is that his search for relief will lead him to subsist and 136 00:09:46,750 --> 00:09:48,550 that it will nearly destroy his life. 137 00:09:49,270 --> 00:09:53,249 He becomes just one of many caught up in a scheme cooked up at Incis 138 00:09:53,250 --> 00:09:57,650 Therapeutics and run by the VP of Sales, Alec Berlikoff. 139 00:09:58,190 --> 00:10:04,489 I want to preface, I am not proud of this. I'm not gloating that not a day 140 00:10:04,490 --> 00:10:08,869 by where I don't regret what I did. I'm simply telling the truth because people 141 00:10:08,870 --> 00:10:11,670 deserve the truth as to what took place. 142 00:10:12,010 --> 00:10:16,629 And according to Berlikoff, the truth is that when he goes to work at Insys, he 143 00:10:16,630 --> 00:10:20,250 believes John Kapoor holds his future in his hands. 144 00:10:20,890 --> 00:10:27,210 Unfortunately, I wanted to please him so badly, and I wanted to... 145 00:10:27,980 --> 00:10:32,839 I wanted to be successful so badly that I was willing to do anything and 146 00:10:32,840 --> 00:10:33,890 everything he asked. 147 00:10:35,340 --> 00:10:41,139 And what Kapoor wants is to have his fentanyl spray substance profitable 148 00:10:41,140 --> 00:10:42,500 he takes into his public. 149 00:10:43,380 --> 00:10:46,180 According to Berlikoff, the message is clear. 150 00:10:46,760 --> 00:10:48,780 All that matters is money. 151 00:10:49,440 --> 00:10:53,580 And so when Berlikoff hires his sales team, there is just one question. 152 00:10:54,360 --> 00:10:56,300 How important is money to you? 153 00:10:56,590 --> 00:10:57,910 was an interview question. 154 00:10:58,070 --> 00:11:01,970 And on a scale of 1 to 10, if they didn't answer 10, they didn't get the 155 00:11:03,030 --> 00:11:04,850 Where to find the best people? 156 00:11:05,150 --> 00:11:06,200 Where else? 157 00:11:06,470 --> 00:11:07,750 A strip club. 158 00:11:08,430 --> 00:11:14,249 That's where Berlikoff meets Sunrise Lee, an exotic dancer who knows how to 159 00:11:14,250 --> 00:11:19,669 close. After one sales meeting, she and the doctor head to a nightclub where she 160 00:11:19,670 --> 00:11:21,170 offers him something special. 161 00:11:21,610 --> 00:11:22,870 A lap dance. 162 00:11:22,871 --> 00:11:27,869 This was the kind of person that they wanted in the company, someone who would 163 00:11:27,870 --> 00:11:33,570 willingly use her sexuality to sell in a way that wasn't just being a beautiful, 164 00:11:33,690 --> 00:11:38,689 attractive thing to look at, but in a, I'm giving lap dances to someone kind of 165 00:11:38,690 --> 00:11:40,740 way. And they were comfortable with that. 166 00:11:41,150 --> 00:11:45,790 With the sales force coming on board, next, the search is on for doctors. 167 00:11:46,890 --> 00:11:50,989 Remember, Substance was originally created to alleviate the pain of cancer 168 00:11:50,990 --> 00:11:52,630 patients in their final days. 169 00:11:53,960 --> 00:11:58,699 But that's a limited market, and John Kapoor wants to move his drug out of 170 00:11:58,700 --> 00:12:01,180 hospice and into everyday lives. 171 00:12:02,240 --> 00:12:07,499 So the hunt is on for pain doctors who will help him expand the use of 172 00:12:07,500 --> 00:12:13,259 and who are willing to write prescription after prescription of a 173 00:12:13,260 --> 00:12:20,159 opioid. There were plenty of bad actors, people who essentially served as drug 174 00:12:20,160 --> 00:12:23,000 pushers, whose volumes of prescription... 175 00:12:23,580 --> 00:12:26,300 by any rational standard, made no sense. 176 00:12:27,900 --> 00:12:30,420 One likely candidate is in Chicago. 177 00:12:30,980 --> 00:12:36,179 When the incest rep pays a visit, she reports by email that he runs, quote, a 178 00:12:36,180 --> 00:12:39,300 very shady pill mill and only accepts cash. 179 00:12:41,000 --> 00:12:42,900 The response from incest? 180 00:12:43,380 --> 00:12:44,460 Stick with him. 181 00:12:44,780 --> 00:12:48,560 If they didn't run away from the pill mills, they ran to them. 182 00:12:48,960 --> 00:12:50,800 And they run with an offer. 183 00:12:51,370 --> 00:12:55,969 to pay the doctors to hold meetings with fellow doctors to discuss the benefits 184 00:12:55,970 --> 00:12:57,020 of substance. 185 00:12:57,310 --> 00:13:02,309 But educating doctors is not the real purpose of the money, and that is 186 00:13:02,310 --> 00:13:04,070 out in a candid conversation. 187 00:13:05,990 --> 00:13:12,909 The candid conversation was, Doctor, we are willing to pay you in the 188 00:13:12,910 --> 00:13:18,749 way of a speaker fee. We really don't care what you do or don't do. All we 189 00:13:18,750 --> 00:13:19,800 about is... 190 00:13:19,930 --> 00:13:24,470 The more substance you prescribe, the more we will pay you to speak. 191 00:13:25,370 --> 00:13:26,970 Are you okay with that? 192 00:13:27,250 --> 00:13:32,810 The question is understood to be, are you okay taking a bribe? 193 00:13:33,770 --> 00:13:38,230 And the person approving this sales strategy is John Kapoor. 194 00:13:38,990 --> 00:13:44,989 You say, okay, if this is what this man wants and he's a billionaire, he must 195 00:13:44,990 --> 00:13:47,590 know what he's doing, then I'm going to do it. 196 00:13:48,080 --> 00:13:53,239 In any corporate criminal organization, it's always going to come down to the 197 00:13:53,240 --> 00:13:57,179 leadership at the top, right? If the leadership has expectations for you to 198 00:13:57,180 --> 00:14:02,039 ethical, then you're going to find that the company is generally ethical. And 199 00:14:02,040 --> 00:14:07,279 here, the expectations were set and enforced by Kapoor on a daily basis, and 200 00:14:07,280 --> 00:14:10,999 they were not ethical. They were the opposite of that. They were make money, 201 00:14:11,000 --> 00:14:12,050 period. 202 00:14:13,560 --> 00:14:15,940 And doctors want to make money, too. 203 00:14:16,750 --> 00:14:21,369 Across the country, doctors sign up for the INSYS speaker program and start to 204 00:14:21,370 --> 00:14:22,420 cash in. 205 00:14:23,110 --> 00:14:24,310 Mobile, Alabama. 206 00:14:24,970 --> 00:14:26,020 Saginaw, Michigan. 207 00:14:26,650 --> 00:14:28,150 Summersworth, New Hampshire. 208 00:14:28,450 --> 00:14:29,570 Sherwood, Arkansas. 209 00:14:30,130 --> 00:14:31,180 Derby, Connecticut. 210 00:14:32,330 --> 00:14:34,490 And Corpus Christi, Texas. 211 00:14:35,290 --> 00:14:40,669 Their pain management doctor, Judson Somerville, has paid for 58 subsist 212 00:14:40,670 --> 00:14:43,470 speaking engagements in just over a year. 213 00:14:43,750 --> 00:14:45,190 So more than one a week. 214 00:14:45,191 --> 00:14:49,419 In, you know, Laredo, Texas and Corpus Christi, there really weren't even that 215 00:14:49,420 --> 00:14:52,700 many places or doctors they could speak to in those areas. 216 00:14:53,080 --> 00:14:54,540 But who needs doctors? 217 00:14:55,220 --> 00:14:59,899 Look through the records and see the so -called speaking engagements are 218 00:14:59,900 --> 00:15:05,420 expensive meals paid for by incest and attended most often by Dr. Somerville, 219 00:15:05,540 --> 00:15:07,880 his staff and the incest rep. 220 00:15:08,980 --> 00:15:10,420 No one really cared. 221 00:15:11,160 --> 00:15:16,280 At all. What the programs consisted of. We hardly cared if they even took place. 222 00:15:16,420 --> 00:15:21,899 The only thing that people cared about at instance was if a check was being cut 223 00:15:21,900 --> 00:15:26,520 to that position, was the physician prescribing more of the product? 224 00:15:27,000 --> 00:15:29,700 And Somerville is prescribing. 225 00:15:30,200 --> 00:15:37,139 In 2013, Intis pays him over $123 ,000, and he writes 527 226 00:15:37,140 --> 00:15:40,720 subsist prescriptions, a rate of 10 each week. 227 00:15:41,560 --> 00:15:43,580 Some of those go to Paul Lara. 228 00:15:44,220 --> 00:15:45,900 And when I went to Dr. 229 00:15:45,901 --> 00:15:49,499 Somerville, and he said, well, I've got just the medicine for you, you know. 230 00:15:49,500 --> 00:15:54,599 Right at the start, Lara is given the highest possible dose of subsist, 1 ,600 231 00:15:54,600 --> 00:16:00,180 micrograms. of a potentially deadly addictive narcotic to treat back pain. 232 00:16:01,140 --> 00:16:04,520 And then, slowly it started to work. 233 00:16:05,160 --> 00:16:07,980 Couldn't find a key, then I couldn't find my car. 234 00:16:08,740 --> 00:16:13,020 I even got lost on the way home to a place that I've lived my entire life. 235 00:16:13,820 --> 00:16:15,780 Then I started having hallucinations. 236 00:16:17,040 --> 00:16:20,590 I actually was thinking that I had like a tumor in my brain or something. 237 00:16:21,260 --> 00:16:25,440 Paul Lara loses his job and is never employed full -time again. 238 00:16:26,080 --> 00:16:30,579 And later, his daughter, Ashley, speculates on the real reason her father 239 00:16:30,580 --> 00:16:31,630 given subsist. 240 00:16:31,880 --> 00:16:37,039 The motives were never to heal him. The motives were to get a kickback from the 241 00:16:37,040 --> 00:16:42,899 company. And 1 ,200 miles away in Arizona, the company knows its strategy 242 00:16:42,900 --> 00:16:45,320 paying doctors is paying off. 243 00:16:46,240 --> 00:16:53,199 Subsist sales are up 1 ,000%. And so the budget for speaker fees moves 244 00:16:53,200 --> 00:16:54,380 higher and higher. 245 00:16:54,750 --> 00:16:56,790 And so does the number of prescriptions. 246 00:16:57,310 --> 00:16:58,990 They're drug pushers in suits. 247 00:16:58,991 --> 00:17:03,129 That's basically what they are. They're drug dealers who go to a business and 248 00:17:03,130 --> 00:17:07,108 wear suits and just disguise themselves like they're doing something different 249 00:17:07,109 --> 00:17:08,159 than what they are. 250 00:17:08,910 --> 00:17:12,770 Next, for one patient, it's substance or nothing. 251 00:17:13,030 --> 00:17:16,100 If you don't take that, you're not with our practice anymore. 252 00:17:27,880 --> 00:17:33,380 By the spring of 2013, the goal of making substance profitable has been 253 00:17:34,420 --> 00:17:37,000 Insys Therapeutics goes public. 254 00:17:37,860 --> 00:17:44,199 Biotech, cancer -type company here, Insys Therapeutics up 400%. In the next 255 00:17:44,200 --> 00:17:46,880 three years, Insys stock will soar. 256 00:17:47,260 --> 00:17:53,060 And John Kapoor, its largest shareholder, reaches a net worth of $2 257 00:17:53,560 --> 00:17:58,480 We had one sole investor in the company prior to the IPO, Dr. John Kapoor. 258 00:17:58,680 --> 00:18:01,900 Kapoor had had a lot of successes. 259 00:18:02,400 --> 00:18:08,899 So when someone like that comes to Wall Street with a new idea that looks like 260 00:18:08,900 --> 00:18:12,359 it can generate sales, that's something that investors or some investors are 261 00:18:12,360 --> 00:18:14,429 likely to want to put some of their money in. 262 00:18:14,430 --> 00:18:19,749 But what investors don't know is how Kapoor is generating his profits and how 263 00:18:19,750 --> 00:18:23,830 runs his company with a ruthless micromanagerial style. 264 00:18:24,250 --> 00:18:26,930 He is very controlling, unlike other. 265 00:18:26,931 --> 00:18:31,339 executives who we see at that level. He is intimately involved in the details of 266 00:18:31,340 --> 00:18:34,739 Insys Therapeutics, and there is nothing that happened at that company that 267 00:18:34,740 --> 00:18:36,739 wasn't without his permission or direction. 268 00:18:36,740 --> 00:18:41,199 He is so deeply involved that he regularly checks the performance of 269 00:18:41,200 --> 00:18:47,059 doctors to make sure that the money he is investing in bribes is paying off in 270 00:18:47,060 --> 00:18:48,110 prescriptions. 271 00:18:48,740 --> 00:18:55,739 Jacopo had an obsession, an obsession with return 272 00:18:55,740 --> 00:18:56,790 on investment. 273 00:18:57,130 --> 00:19:02,710 everything and anything came down to, did we get a return on investment? 274 00:19:02,950 --> 00:19:04,010 Yes or no? 275 00:19:04,550 --> 00:19:08,989 According to federal prosecutors, Kapoor insists on a minimum return on 276 00:19:08,990 --> 00:19:10,710 investment of two to one. 277 00:19:11,390 --> 00:19:17,829 So if I spend $1 ,000 bribing you, I expect to make $2 ,000 in sales of the 278 00:19:17,830 --> 00:19:23,449 drug. And even as profits skyrocket, if one doctor's numbers are off, there is 279 00:19:23,450 --> 00:19:24,500 hell to pay. 280 00:19:25,630 --> 00:19:31,869 He would get heated, he would get loud, and he would berate the executives. And 281 00:19:31,870 --> 00:19:36,990 that sort of control and that intimidation filtered all the way down 282 00:19:40,330 --> 00:19:45,350 The person often in the line of fire is the VP of sales, Alec Berlikoff. 283 00:19:46,210 --> 00:19:49,390 I would take a beatdown, a shellacking. 284 00:19:49,770 --> 00:19:53,310 I mean, it would take me hours, sometimes days. 285 00:19:54,000 --> 00:19:56,480 to get over the beating that I would take. 286 00:19:56,960 --> 00:20:00,580 But it's not just the number of prescriptions that matter to Kapoor. 287 00:20:00,780 --> 00:20:06,400 He also wants prescriptions at ever -increasing dosages for obvious reasons. 288 00:20:07,940 --> 00:20:12,419 Essentially, the higher the dose, the more addicted the person is, the more 289 00:20:12,420 --> 00:20:15,140 going to need, and you've got a customer for life. 290 00:20:15,500 --> 00:20:19,780 And the way to motivate salespeople to push doctors to increase the dose? 291 00:20:20,860 --> 00:20:22,240 Money, of course. 292 00:20:23,180 --> 00:20:27,580 And into sales materials show the higher the dose, the bigger the commission. 293 00:20:28,320 --> 00:20:33,440 He lived, ate and breathed return on investment. 294 00:20:33,640 --> 00:20:39,459 And if the doctors don't deliver what Kapoor wants, then he would expect for 295 00:20:39,460 --> 00:20:46,179 to fire the speaker or perhaps on a good day, if he was feeling kind and 296 00:20:46,180 --> 00:20:47,230 forgiving. 297 00:20:47,420 --> 00:20:53,019 you would be asked to go to that speaker and say, hey, if we don't see a return 298 00:20:53,020 --> 00:20:57,919 on investment in the next week or two, you will not be speaking for the company 299 00:20:57,920 --> 00:21:03,739 anymore. There's no way that anyone within that company didn't know that 300 00:21:03,740 --> 00:21:07,900 were creating increased risks of people becoming addicted. 301 00:21:08,380 --> 00:21:14,320 And to really throw that to the wind and to say that profits matter more. 302 00:21:15,130 --> 00:21:17,070 is what we have here. 303 00:21:19,130 --> 00:21:24,289 And anyone who wants to see how all this plays out for people could head to 304 00:21:24,290 --> 00:21:25,690 Johnson County, Kansas. 305 00:21:26,930 --> 00:21:32,009 Here, the long reach of the INSYS scheme touches a number of unsuspecting 306 00:21:32,010 --> 00:21:33,060 patients. 307 00:21:33,370 --> 00:21:38,629 They were as vulnerable as you could get. They're individuals who are already 308 00:21:38,630 --> 00:21:43,770 pain, who are seeking help from a trusted source, their doctor. 309 00:21:44,680 --> 00:21:50,919 In Overland Park, Kansas, a doctor at a pain clinic is paid $220 ,000 over two 310 00:21:50,920 --> 00:21:52,140 years by incis. 311 00:21:53,180 --> 00:21:58,239 But that is something Mike Whitham does not know when he is prescribed substance 312 00:21:58,240 --> 00:22:01,020 for excruciating ulcer pain. 313 00:22:01,300 --> 00:22:03,590 He didn't describe it as for cancer patients. 314 00:22:03,700 --> 00:22:07,900 Didn't give me any warnings about it. 315 00:22:08,500 --> 00:22:11,000 It was just here, try this. 316 00:22:11,820 --> 00:22:17,060 And Whitam does not know INCSIS is incentivizing prescriptions of higher 317 00:22:17,460 --> 00:22:21,240 He just knows his dose soars in four months. 318 00:22:21,720 --> 00:22:27,280 We went from 400 to 800, and then I think I went from 800 to 1 ,200, 319 00:22:27,480 --> 00:22:31,580 and then to 1 ,600. But it was all very quickly. 320 00:22:32,240 --> 00:22:37,419 Whitam says he gets to a point where he is so drugged out he spends entire days 321 00:22:37,420 --> 00:22:38,319 in bed. 322 00:22:38,320 --> 00:22:40,660 But the worst is how he feels. 323 00:22:41,230 --> 00:22:43,170 waiting for the next spray. 324 00:22:43,570 --> 00:22:46,450 I got extremely angry. 325 00:22:47,050 --> 00:22:53,349 My kids knew to not be around me when that happened. And they called me mean 326 00:22:53,350 --> 00:22:54,400 daddy. 327 00:22:54,890 --> 00:22:58,930 And when he asked to make a change, it's clear. 328 00:22:59,330 --> 00:23:01,310 It's substance or nothing. 329 00:23:01,710 --> 00:23:07,169 I remember one of the nurses came in and said, what you are prescribed is what 330 00:23:07,170 --> 00:23:08,570 you take, and that is it. 331 00:23:08,940 --> 00:23:12,010 If you don't take that, you're not with our practice anymore. 332 00:23:12,620 --> 00:23:15,100 Carrie Ballew has the same doctor. 333 00:23:15,400 --> 00:23:20,000 She suffers from back pain, and so the doctor prescribes the fentanyl spray. 334 00:23:21,180 --> 00:23:23,480 I believed everything that he said. 335 00:23:25,720 --> 00:23:26,770 Followed it to a T. 336 00:23:27,000 --> 00:23:31,960 But as her dose is increased, Carrie Ballew says she is becoming addicted. 337 00:23:32,480 --> 00:23:34,530 I was supposed to take it every six hours. 338 00:23:35,100 --> 00:23:40,439 And, you know, after just two or three hours, I could feel, you know, a little 339 00:23:40,440 --> 00:23:45,920 bit of shaking. Like it was time to take it, even though it wasn't proper time. 340 00:23:46,240 --> 00:23:51,160 More and more in her drug state, Carrie Ballew withdraws from family life. 341 00:23:51,480 --> 00:23:52,880 My sister, she... 342 00:23:53,310 --> 00:23:58,449 Called me an addict and I got very angry and we didn't talk for a good period of 343 00:23:58,450 --> 00:24:05,209 time because I was very defensive. And, you know, truly in my heart felt I have 344 00:24:05,210 --> 00:24:06,510 to have this to survive. 345 00:24:09,730 --> 00:24:14,569 But back in inches, the struggles of people like Terry Ballew are rarely, if 346 00:24:14,570 --> 00:24:15,620 ever, discussed. 347 00:24:16,630 --> 00:24:20,810 It's an abstraction to people like Kapoor. He never sees these. 348 00:24:21,280 --> 00:24:23,460 To him, they're just numbers. 349 00:24:23,760 --> 00:24:26,900 They're just prescriptions. They're just dollar signs. 350 00:24:27,260 --> 00:24:32,560 If anything puts the disconnect between Insys and its patients into perspective, 351 00:24:32,920 --> 00:24:37,819 it is this video made for a sales meeting. It is about increasing doses of 352 00:24:37,820 --> 00:24:40,740 medication, a process called titration. 353 00:24:47,820 --> 00:24:53,059 What that video shows is the state of mind of the people who are presenting 354 00:24:53,060 --> 00:24:56,259 to the sales staff at their national meeting. You're in the middle of an 355 00:24:56,260 --> 00:25:01,799 epidemic. You've got the highest possible dosage of this fentanyl spray 356 00:25:01,800 --> 00:25:05,439 around and rapping on the screen. It wasn't, you know, John Kapoor in a back 357 00:25:05,440 --> 00:25:09,899 room, you know, pushing this out. It was John Kapoor pushing it out. And then 358 00:25:09,900 --> 00:25:13,940 the whole culture is being swallowed by that, by that greed. 359 00:25:15,300 --> 00:25:19,680 Next for John Kapoor, it seems it's never enough. 360 00:25:19,880 --> 00:25:25,219 There's no more lines to cross for anybody who still has their brain 361 00:25:25,220 --> 00:25:27,680 intact. Yet he wants them. 362 00:25:38,920 --> 00:25:44,620 In 2012, when the FDA approves the sale of Insys Therapeutics' powerful opioid, 363 00:25:44,940 --> 00:25:49,079 Supsys, it is clear that the drug is to be used for the treatment of 364 00:25:49,080 --> 00:25:51,640 breakthrough pain in cancer patients. 365 00:25:52,200 --> 00:25:57,060 And founder, John Kapoor, says he deeply understands that pain. 366 00:25:57,980 --> 00:26:04,019 As he tells reporter Matthew Herper in an interview, he lost his wife, Aditha, 367 00:26:04,020 --> 00:26:05,070 to the disease. 368 00:26:05,710 --> 00:26:11,130 It was really a touching moment when he talked about how, for cancer patients, 369 00:26:11,490 --> 00:26:16,489 pain isn't just pain. The pain's a really terrible thing, and people don't 370 00:26:16,490 --> 00:26:18,450 appreciate the need for these drugs. 371 00:26:18,930 --> 00:26:24,249 But despite his personal experience, Kapoor markets his drug not just for 372 00:26:24,250 --> 00:26:29,010 patients, but for pain patients in what is called off -label use. 373 00:26:29,270 --> 00:26:32,630 And that presents a problem for insurance companies. 374 00:26:33,230 --> 00:26:34,450 Most companies... 375 00:26:34,940 --> 00:26:38,799 wanted it to be on label. A doctor can prescribe substance for whatever they 376 00:26:38,800 --> 00:26:41,639 want. They can write off -label prescriptions, but the insurance company 377 00:26:41,640 --> 00:26:42,690 have to approve it. 378 00:26:42,860 --> 00:26:48,079 And if insurance companies won't pay for it, patients can't afford it. The cost 379 00:26:48,080 --> 00:26:51,940 for one month's prescription can be as high as $19 ,000. 380 00:26:52,540 --> 00:26:57,020 And so one answer is to turn pain patients into cancer patients. 381 00:26:57,760 --> 00:27:02,820 At his doctor's office, Mike Whitham says he is asked a strange question. 382 00:27:04,110 --> 00:27:09,250 Would you feel comfortable saying you have cancer? And at that time I told 383 00:27:09,270 --> 00:27:11,930 cancer is probably the only thing I don't have. 384 00:27:12,890 --> 00:27:15,420 But I don't have that and I don't feel comfortable. 385 00:27:16,770 --> 00:27:19,600 That was the last day I got a prescription for substance. 386 00:27:19,850 --> 00:27:24,829 And with patients unwilling to lie and company profits dependent on insurance 387 00:27:24,830 --> 00:27:30,470 approvals, Insys creates a call center where its employees spin the truth. 388 00:27:30,870 --> 00:27:32,550 So they would call and... 389 00:27:33,210 --> 00:27:38,669 poses the doctor's office, and they would do everything in their power to 390 00:27:38,670 --> 00:27:41,740 argument in front of the insurance company to get them to pay. 391 00:27:42,090 --> 00:27:45,110 Am I speaking to a member or a provider? 392 00:27:45,890 --> 00:27:47,550 I'm calling with a provider. 393 00:27:48,270 --> 00:27:53,450 These recordings made by insurance companies illustrate how the center 394 00:27:54,430 --> 00:27:56,660 What is the medication you are requesting? 395 00:28:00,720 --> 00:28:02,760 This is one of the operators. 396 00:28:03,180 --> 00:28:08,119 She says in a video deposition taken for a civil case that she is trained to be 397 00:28:08,120 --> 00:28:09,900 very careful with her words. 398 00:28:10,340 --> 00:28:14,939 We were supposed to say we were with the doctor's office, not from the doctor's 399 00:28:14,940 --> 00:28:15,990 office. 400 00:28:16,040 --> 00:28:17,120 There's a difference. 401 00:28:17,420 --> 00:28:21,240 That is just one of the word games INSIS employees play. 402 00:28:21,440 --> 00:28:25,460 There are many. Using the word urgent gets a quick response. 403 00:28:26,220 --> 00:28:29,830 Patients in quite significant pain. Can you do it via phone, but urgent? 404 00:28:29,920 --> 00:28:32,380 Sure. Let me put this to urgent one second. 405 00:28:32,900 --> 00:28:38,599 And because sepsis is a spray, saying the patient has difficulty swallowing is 406 00:28:38,600 --> 00:28:39,650 very effective. 407 00:28:40,220 --> 00:28:44,219 The patient, they're freaking pain and, you know, they have the difficulty 408 00:28:44,220 --> 00:28:45,660 swallowing oral medication. 409 00:28:46,540 --> 00:28:51,739 Sometimes the incest operator's answers meander from one fake diagnosis to 410 00:28:51,740 --> 00:28:56,570 another. In this call, the patient first has one kind of cancer. 411 00:28:56,790 --> 00:29:03,149 The information, it looks like it is unspecified upper limb 412 00:29:03,150 --> 00:29:04,790 in that area. 413 00:29:05,070 --> 00:29:07,570 But minutes later, it has evolved. 414 00:29:08,130 --> 00:29:12,069 It looks like the cervical area, it looks like that's where the location of 415 00:29:12,070 --> 00:29:14,850 chronic pain syndrome is. So it's cervical cancer. 416 00:29:14,851 --> 00:29:18,769 Is that what you're saying, cervical cancer? It's the cervical area where the 417 00:29:18,770 --> 00:29:22,050 chronic pain, yes. Got it. The prescription is approved. 418 00:29:22,540 --> 00:29:24,590 which is good news for the INSA's caller. 419 00:29:24,680 --> 00:29:27,200 The pressure for success is tremendous. 420 00:29:28,420 --> 00:29:32,519 Their bosses were telling them, if you can't get it approved, I'll find 421 00:29:32,520 --> 00:29:33,359 who can. 422 00:29:33,360 --> 00:29:34,920 You've got to ride the gray line. 423 00:29:34,921 --> 00:29:38,299 You've got to get these insurance companies to pay. It's a game. You just 424 00:29:38,300 --> 00:29:39,980 to tell them what they want to hear. 425 00:29:40,260 --> 00:29:41,980 Overall, the system works well. 426 00:29:42,510 --> 00:29:46,649 In just over three years, the call operators fraudulently get approvals for 427 00:29:46,650 --> 00:29:52,389 estimated $300 million worth of prescriptions paid for by insurance 428 00:29:52,390 --> 00:29:53,510 and Medicare. 429 00:29:53,950 --> 00:29:56,850 But Kapoor wants even greater approval rates. 430 00:29:57,070 --> 00:30:00,630 And for Berlikoff, that is pushing the staff too far. 431 00:30:01,190 --> 00:30:06,289 They have crossed so many lines to get this drug approved and to get it in the 432 00:30:06,290 --> 00:30:11,050 hands of people that you can't fathom asking them. 433 00:30:11,530 --> 00:30:16,969 to cross another line. There's no more lines to cross for anybody who still has 434 00:30:16,970 --> 00:30:18,550 their brain halfway intact. 435 00:30:19,250 --> 00:30:20,710 Yet he wants more. 436 00:30:20,970 --> 00:30:25,210 And the costs paid by patients using subsist continue to grow. 437 00:30:25,970 --> 00:30:31,849 Seven years after the drug goes on sale, the FDA has 9 ,000 adverse event 438 00:30:31,850 --> 00:30:36,250 reports on subsist. And many of those include people who died. 439 00:30:37,040 --> 00:30:43,479 In January 2015, this call operator gets approval for a 31 -year -old patient 440 00:30:43,480 --> 00:30:49,179 named Sarah Fuller. Sarah suffers from fibromyalgia and back pain. What is the 441 00:30:49,180 --> 00:30:50,560 diagnosis for the patient? 442 00:30:50,700 --> 00:30:55,759 As instructed by ENSYS, she crafts her words carefully, leaving out the word 443 00:30:55,760 --> 00:30:58,500 cancer in describing the need for the drug. 444 00:30:58,900 --> 00:31:01,910 The doctor is treating the patient with breakthrough pain. 445 00:31:02,350 --> 00:31:07,749 Sarah's prescription is approved for 200 micrograms. It is later increased to 446 00:31:07,750 --> 00:31:08,800 600. 447 00:31:09,270 --> 00:31:14,970 After more than a year on substance, Sarah Fuller dies by a multidrug 448 00:31:15,650 --> 00:31:20,529 Every time you go through a holiday, her birthday, the day she was supposed to 449 00:31:20,530 --> 00:31:23,870 be married, you know, you do everything at a cemetery. 450 00:31:24,270 --> 00:31:28,729 Not one day goes by that there isn't some time during the day that you're 451 00:31:28,730 --> 00:31:29,810 reminded she's gone. 452 00:31:30,540 --> 00:31:35,799 And back at Inces, Alec Berlikoff is beginning to realize his dream job is 453 00:31:35,800 --> 00:31:36,920 becoming a nightmare. 454 00:31:37,340 --> 00:31:40,140 We know we've pushed this to the brink. 455 00:31:40,640 --> 00:31:45,919 None of us are feeling good about this anymore. None of us want the extra 456 00:31:45,920 --> 00:31:51,899 dollars that come along with seeing or hearing a very 457 00:31:51,900 --> 00:31:54,960 negative story. None of us want that. 458 00:31:56,300 --> 00:31:58,700 But John Kapoor presses on. 459 00:31:59,130 --> 00:32:02,290 asking for daily reports on the call center's approvals. 460 00:32:02,650 --> 00:32:07,530 He has one interest, which is money. Money. And everything else doesn't 461 00:32:07,690 --> 00:32:08,830 People don't matter. 462 00:32:09,210 --> 00:32:10,260 Laws don't matter. 463 00:32:10,870 --> 00:32:12,130 Morality doesn't matter. 464 00:32:12,270 --> 00:32:13,320 He cared about money. 465 00:32:14,370 --> 00:32:17,990 Next, who gets nabbed and who goes free? 466 00:32:18,330 --> 00:32:24,669 And I lived for at least a year waking up every day looking out my window for 467 00:32:24,670 --> 00:32:26,890 that black man or the FBI. 468 00:32:38,670 --> 00:32:45,229 In Corpus Christi in December 2013, Paul Lara hedged to Dr. Somerville to get 469 00:32:45,230 --> 00:32:46,670 his prescription renewed. 470 00:32:47,230 --> 00:32:50,810 The people were standing in the halls and they were angry. 471 00:32:51,050 --> 00:32:52,230 There is big news. 472 00:32:52,630 --> 00:32:55,730 The doctor's license has been temporarily suspended. 473 00:32:56,310 --> 00:32:59,030 Three of his patients overdosed and died. 474 00:32:59,370 --> 00:33:03,870 And now other doctors in the area refuse to see Somerville's patients. 475 00:33:04,650 --> 00:33:06,190 Lara has no choice. 476 00:33:06,780 --> 00:33:11,920 From the highest dose of a fentanyl painkiller, he goes off cold turkey. 477 00:33:13,020 --> 00:33:15,600 I thought I was dying when I was taking it. 478 00:33:16,020 --> 00:33:18,300 I was on death's door without it. 479 00:33:19,380 --> 00:33:23,100 It was like the worst flu you can imagine times 100. 480 00:33:23,620 --> 00:33:27,779 Lara has found himself in the center of a government crackdown on opioid 481 00:33:27,780 --> 00:33:31,480 prescribers, some of whom take money from ENSYS. 482 00:33:33,320 --> 00:33:37,739 Across the country, substance prescribing doctors are being indicted, 483 00:33:37,740 --> 00:33:39,840 with receiving kickbacks from incest. 484 00:33:40,200 --> 00:33:45,340 The house of cards has fallen. But Kapoor appears unfazed. 485 00:33:46,160 --> 00:33:49,480 To a guy like Kapoor, this was collateral damage. 486 00:33:49,980 --> 00:33:52,760 It was just, find me another doctor. 487 00:33:52,980 --> 00:33:56,420 Find me another doctor in that area who can... 488 00:33:57,100 --> 00:33:58,400 Prescribe my product. 489 00:33:58,700 --> 00:34:02,960 In fact, Kapoor appears so confident that he will not be indicted in the 490 00:34:03,080 --> 00:34:08,380 He sits down with Forbes magazine reporter Matthew Herper in October 2016. 491 00:34:10,060 --> 00:34:16,999 He was a very calm, cheerful man. He smiled a lot. He was very 492 00:34:17,000 --> 00:34:18,980 unperturbed by the allegations. 493 00:34:19,440 --> 00:34:24,959 Kapoor describes his surprise at doctors that over -prescribe and suggests 494 00:34:24,960 --> 00:34:28,730 that... Something happened in the field he didn't know about. 495 00:34:29,389 --> 00:34:31,250 He said it wasn't his responsibility. 496 00:34:32,389 --> 00:34:34,290 You know, he said, I'm an investor. 497 00:34:35,250 --> 00:34:37,469 I don't handle what goes on day to day. 498 00:34:38,110 --> 00:34:41,230 When there's a problem, I'm here to fix things. 499 00:34:42,010 --> 00:34:46,790 He spoke as if he wasn't really involved in the day to day decision making. 500 00:34:47,949 --> 00:34:52,769 What is surprising about this interview is that Kapoor knows that his company is 501 00:34:52,770 --> 00:34:54,270 under federal investigation. 502 00:34:54,860 --> 00:34:59,539 Three years before the interview, Insys is served subpoenas from the Department 503 00:34:59,540 --> 00:35:00,590 of Justice. 504 00:35:00,840 --> 00:35:04,260 But there is little real change in how the company operates. 505 00:35:04,960 --> 00:35:08,459 They continue to bribe doctors. They continue to lie to insurers. They 506 00:35:08,460 --> 00:35:10,690 to encourage doctors to write higher doses. 507 00:35:11,460 --> 00:35:16,639 The reason Kapoor is not worried may be that executives of pharmaceutical 508 00:35:16,640 --> 00:35:22,059 companies charged with illegal marketing are typically required to just pay a 509 00:35:22,060 --> 00:35:23,110 fine. 510 00:35:23,530 --> 00:35:29,970 It was just assumed as an acceptable cost of promoting sales. 511 00:35:30,290 --> 00:35:34,020 And while Kapoor apparently believes he is not in danger of prosecution, 512 00:35:34,890 --> 00:35:38,830 Alec Berlikoff makes a different assumption, that he's next. 513 00:35:40,170 --> 00:35:41,490 I mean, I was ahead of sales. 514 00:35:41,730 --> 00:35:44,070 I did everything they asked me to do. 515 00:35:44,590 --> 00:35:46,370 How could I not be arrested? 516 00:35:46,810 --> 00:35:50,570 And in December 2016, he gets the answer. 517 00:35:53,290 --> 00:36:00,149 For at least a year, waking up every day looking out my window to that 518 00:36:00,150 --> 00:36:04,050 black man or the FBI or whomever. 519 00:36:04,870 --> 00:36:09,890 And one day it came. I looked out the window, saw a lot of vehicles. 520 00:36:09,891 --> 00:36:12,609 Something didn't look right. Something didn't feel right. 521 00:36:12,610 --> 00:36:17,570 And, you know, within an hour, I was being taken away out of my house in 522 00:36:21,290 --> 00:36:22,340 He's not alone. 523 00:36:22,940 --> 00:36:27,639 On that day, five other incest executives are arrested and indicted on 524 00:36:27,640 --> 00:36:28,690 of fraud. 525 00:36:28,880 --> 00:36:30,580 But not John Kapoor. 526 00:36:31,520 --> 00:36:35,379 My take is he did throw me and everyone else to the wolves. He just kept 527 00:36:35,380 --> 00:36:36,259 throwing us. 528 00:36:36,260 --> 00:36:37,640 Feeding, feeding, feeding. 529 00:36:37,641 --> 00:36:41,319 Here, take this guy. Take this guy. Take this guy. What else do you need? What 530 00:36:41,320 --> 00:36:43,060 else do you want? Just don't take me. 531 00:36:43,580 --> 00:36:47,100 Next. Why does one crook rat on another? 532 00:36:47,760 --> 00:36:49,160 Because I had enough. 533 00:36:50,020 --> 00:36:51,960 Enough of the lies and the bull. 534 00:37:05,520 --> 00:37:11,039 Of all the distinctions that John Kapoor earned through his long career, there 535 00:37:11,040 --> 00:37:13,260 is one he likely never sees coming. 536 00:37:13,960 --> 00:37:18,119 Look, he's done nothing wrong. His charges are serious and we intend to 537 00:37:18,120 --> 00:37:18,999 them vigorously. 538 00:37:19,000 --> 00:37:25,179 In October 2017, he is arrested and charged with leading a conspiracy to 539 00:37:25,180 --> 00:37:30,039 doctors. He is now the first chairman of the board of a pharmaceutical company 540 00:37:30,040 --> 00:37:33,580 to be criminally charged for his role in the opioid epidemic. 541 00:37:34,510 --> 00:37:37,770 And why is John Kapoor the one who gets hit? 542 00:37:38,570 --> 00:37:44,289 One big reason is Alec Berlikoff, who steps up and gives the prosecutors just 543 00:37:44,290 --> 00:37:45,340 what they need. 544 00:37:46,270 --> 00:37:47,970 You need an insider. 545 00:37:48,230 --> 00:37:54,269 There is nothing like having somebody who's sitting there at the table with 546 00:37:54,270 --> 00:37:58,030 other bad guys talking about the crimes that they're about to commit. 547 00:37:58,270 --> 00:38:02,809 Berlikoff pleads guilty to charges of bribing doctors and defrauding health 548 00:38:02,810 --> 00:38:03,860 insurers. 549 00:38:04,110 --> 00:38:10,169 And I don't want to live with those secrets in my in my mind or my heart or 550 00:38:10,170 --> 00:38:12,150 soul any longer. 551 00:38:13,070 --> 00:38:14,120 That's my decision. 552 00:38:14,830 --> 00:38:16,210 That's why I pled guilty. 553 00:38:16,510 --> 00:38:19,040 That's why I gave up the opportunity to go to trial. 554 00:38:19,310 --> 00:38:24,210 I did all of that because I had enough, enough of the lies and the bull. 555 00:38:24,870 --> 00:38:29,630 The trial of the instance team begins in Boston in January 2019. 556 00:38:30,890 --> 00:38:35,529 Among those who testify for the government is one doctor who admits he 557 00:38:35,530 --> 00:38:37,770 his patient's safety for money. 558 00:38:38,690 --> 00:38:43,250 And I remember him testifying about having a patient who had a mental 559 00:38:43,430 --> 00:38:47,909 such they thought they were in pain, but they really weren't. But he gave that 560 00:38:47,910 --> 00:38:49,230 person substance anyway. 561 00:38:49,590 --> 00:38:54,989 And then there is also the testimony of victims, like Paul Lara, who watches 562 00:38:54,990 --> 00:38:58,590 John Kapoor while he tells his own story on the witness stand. 563 00:38:58,591 --> 00:39:03,239 Everybody thinks I'm crazy for saying this. I actually feel sorry for the man. 564 00:39:03,240 --> 00:39:07,699 And this man knew people were dying and just kept on putting that money in his 565 00:39:07,700 --> 00:39:12,200 pocket. Donating places, having his name and his wife's name put on buildings. 566 00:39:13,560 --> 00:39:20,320 The amount of greed that this man had is just unbelievable. 567 00:39:22,220 --> 00:39:26,520 Kapoor's defense attorney argues that the blame belongs to Alec Berlikoff, 568 00:39:26,560 --> 00:39:29,750 who... cut a lot of side deals on his own. 569 00:39:30,810 --> 00:39:36,049 Berlikoff says the deals he made with doctors were all approved and paid for 570 00:39:36,050 --> 00:39:37,810 Kapoor. I'm guilty. 571 00:39:38,030 --> 00:39:39,290 I did all this. 572 00:39:39,930 --> 00:39:46,629 But none of this happens without the approval, without the 573 00:39:46,630 --> 00:39:49,340 say -so, without the direction, without the dollars. 574 00:39:49,550 --> 00:39:53,810 We're talking about millions of dollars being paid to doctors. 575 00:39:54,690 --> 00:39:55,930 That's not my money. 576 00:39:56,880 --> 00:39:57,930 It's not my call. 577 00:39:57,940 --> 00:40:03,059 After a 10 -week trial, Kapoor is convicted of racketeering conspiracy and 578 00:40:03,060 --> 00:40:05,290 sentenced to five and a half years in prison. 579 00:40:05,560 --> 00:40:11,259 I hope that the message being sent here is that the government is going to go 580 00:40:11,260 --> 00:40:13,440 after the people in the boardroom. 581 00:40:13,820 --> 00:40:17,720 You know, it's not just going to be the bad doctors anymore. 582 00:40:18,320 --> 00:40:22,999 Following Kapoor's conviction, the University of Buffalo removes the name 583 00:40:23,000 --> 00:40:24,740 Kapoor on its pharmacy building. 584 00:40:26,060 --> 00:40:29,500 And his multiple billions, they're gone. 585 00:40:30,140 --> 00:40:32,840 Inches stock plummets at the news of his arrest. 586 00:40:33,140 --> 00:40:36,340 The company declares bankruptcy in 2019. 587 00:40:37,660 --> 00:40:42,939 He's still a wealthy man, but in terms of the money that he has, he's lost 588 00:40:42,940 --> 00:40:46,600 literally billions as a result of the greed and the arrogance. 589 00:40:47,100 --> 00:40:51,540 Through his attorney, Kapoor declines American Greed's request for comment. 590 00:40:52,700 --> 00:40:55,940 Alec Berlikoff is sentenced to two years and two months. 591 00:40:56,480 --> 00:41:01,539 And as he heads to prison, he looks back on his plan to avoid his father's 592 00:41:01,540 --> 00:41:02,590 experience. 593 00:41:02,760 --> 00:41:07,459 Work for a man like Kapoor, I would never have to tell my kids, we don't 594 00:41:07,460 --> 00:41:08,139 any money. 595 00:41:08,140 --> 00:41:09,190 Well, guess what? 596 00:41:09,480 --> 00:41:12,620 That's exactly what I tell my kids every day. 597 00:41:13,660 --> 00:41:14,940 We lost everything. 598 00:41:15,160 --> 00:41:16,280 We have nothing. 599 00:41:17,280 --> 00:41:19,260 But what we have is love. 600 00:41:20,280 --> 00:41:21,360 We have... 601 00:41:21,630 --> 00:41:26,829 our relationships, and we have an opportunity to move forward. And that's 602 00:41:26,830 --> 00:41:28,030 than a lot of people have. 603 00:41:28,750 --> 00:41:33,489 Of all the ways that the instance scheme hurt its victims, some say the most 604 00:41:33,490 --> 00:41:38,829 damaging is the way it destroyed their trust in people who pretended to care 605 00:41:38,830 --> 00:41:41,750 them. I didn't see a single doctor, no doctor. 606 00:41:41,751 --> 00:41:44,869 I didn't go back to the hospital. I didn't do anything for almost two years 607 00:41:44,870 --> 00:41:46,670 because I just didn't trust anybody. 608 00:41:47,510 --> 00:41:51,060 It certainly made things worse when I finally did go back to the doctor. 609 00:41:51,420 --> 00:41:54,240 Because all the things I did have are worse. 610 00:41:55,780 --> 00:42:00,439 Paul Lara is grateful he survived a high dose of a powerfully addictive 611 00:42:00,440 --> 00:42:05,859 medication. In examining what happened to them all, his daughter Ashley speaks 612 00:42:05,860 --> 00:42:11,540 for many victims who can't believe that the scheme got as far as it did. 613 00:42:11,940 --> 00:42:16,199 You know, there's so many lines that had to be crossed to get to that point to 614 00:42:16,200 --> 00:42:18,060 where that medication was dispensed. 615 00:42:20,089 --> 00:42:24,410 Somewhere, someone should have been looking out for the greater good, right? 616 00:42:24,470 --> 00:42:28,969 Somebody should have been morally sound enough to say, this isn't right and we 617 00:42:28,970 --> 00:42:30,020 need to make it stop. 618 00:42:30,021 --> 00:42:31,959 And there wasn't. 619 00:42:31,960 --> 00:42:36,510 Repair and Synchronization by Easy Subtitles Synchronizer 1.0.0.0 57163

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