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In this episode of American Greed, a
billionaire CEO who preys on patients in
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pain. They're drug pushers and that's
basically what they are.
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Go inside the criminal scheme of John
Kapoor, whose drug company cashes in big
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time on the opioid crisis.
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People don't matter. Laws don't matter.
Morality doesn't matter. You care about
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money.
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Bribing doctors to prescribe high doses
of its addictive product.
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Kapoor's team adds fuel to the deadly
epidemic.
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To really throw that to the wind and to
say that profits matter more is what we
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have here.
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And trusting victims pay a horrible
price.
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Not one day goes by that there isn't
some time during the day that you're
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reminded she's gone. Kapoor becomes the
first big pharma chairman of the board
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to go to jail.
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And tonight his top salesman sits down
with American Breed.
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To share his secrets. I'm simply telling
the truth because people deserve the
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truth.
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At the height of America's deadly opioid
epidemic
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comes a stunning arrest.
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And it's not some no -name middle
manager at a huge company or an over
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-prescribing doctor.
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No, this arrest is at the very top.
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The founder and chairman of the board of
a major pharmaceutical company, Incest
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Therapeutics. John Kapoor is charged
with conspiring to bribe doctors to push
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his addictive and potentially deadly
drug, substance.
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It's a stunning turn for a man who seems
to embody the American dream.
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He was a guy who was looking to build
things and was willing to push very hard
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to do it. An immigrant from India who'd
come to the United States with almost
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nothing, Kapoor has built a fortune over
decades in the drug business.
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I mean, he succeeded in an industry that
has seen more than its fair share of
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failures.
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And with the help of photo ops like
this, he's also built a reputation as a
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philanthropist. After donating more than
$10 million to the University of
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Buffalo, his alma mater, Kapoor gets his
name on a building in return, a coveted
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symbol of success.
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It's really good to be back here today
to participate in what I consider a
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milestone day in the history of School
of Pharmacy.
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But in truth, John Kapoor's long career
has been shattered by controversy.
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In 1987, Kapoor is running an Illinois
-based company called Lifomed that
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markets its products as the best.
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One is an infection -fighting drug
called Pentamidine.
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At the time, the AIDS epidemic is
ravaging communities across the country.
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It's a deadly disease which has been
spreading unchecked. Tens of thousands
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infected Americans are dying.
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Many are suffering from a type of
pneumonia known as PCP.
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In the 80s, 75 % of people who were
diagnosed with HIV AIDS
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had PCP. And it was one way that people
with AIDS were dying.
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There is a desperate need for treatment.
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And the most effective drug available is
John Kapoor's pentamidine.
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And so in the crisis of the epidemic,
Kapoor sees dollar signs.
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Claiming unforeseen expenses, he jacked
up the price of the drug by 300%. We
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saw that as price gouging, which I can't
imagine any other term to use for it.
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And we were outraged.
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Chicago's AIDS activists are primed for
protest.
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And they take to the highway, straight
out to Life -O -Med's headquarters.
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We had a huge banner that said, Death -O
-Med.
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Get it? Life -O -Med?
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Death -O -Med.
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We set up a graveyard on the lawn of
Life -O -Med, laid
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down, and did a diet.
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The controversy puts Kapoor's name into
national news stories.
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But he is largely untouched by the
crisis.
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Later, he sells Life of Med and
reportedly clears $100 million in the
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And for Gene Crocker, Kapoor's price
hike of pentamidine will always be
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infuriating.
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Many, many people died.
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Many, many people struggled to get those
medications.
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I mean, if that's not greed, if that is
not an immoral act, I don't know what
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is.
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Over the next two decades, John Kapoor
invests in multiple drug companies, and
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the millions add up.
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At age 68, he is a wealthy man and
living in Arizona.
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But he is not here to retire.
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On the contrary, he has founded a
company, Insys Therapeutics.
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And in 2012, he is about to launch a new
product, just in time for a new
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epidemic.
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The opioid epidemic.
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Again, thousands of people are sick and
dying. But this time, the cause is not a
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virus. But the latest front in the war
on drugs turns out it's your medicine
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cabinet.
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Without a doubt, the start of the
epidemic rests with prescription drugs.
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It was the really appalling sales tactic
that pharmaceutical companies...
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used to widely promote their products.
And that really led to the massive
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overuse of opioids in the population.
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And into this epidemic of addiction
caused by prescription drugs, Kapoor
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introduces his own highly addictive
prescription drug.
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Made from fentanyl, a drug 50 to 100
times more powerful than morphine, it's
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called subsus.
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Kapoor's company promotes the drug in
videos like this as an under -the
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spray, approved by the FDA for cancer
patients.
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It's a rapid -onset opioid designed to
treat cancer patients who are already on
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an around -the -clock opioid.
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It's not rocket science. It's a
dangerous drug.
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Kapoor has paid for the development of
sepsis himself.
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Close to $60 million of his own money is
on the line.
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The drug hits the market in March 2012,
but the sales are not good enough for
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Kapoor. Kapoor is really unhappy. He
calls it the worst effing pharmaceutical
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launch in the history of
pharmaceuticals.
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Eager to make his drug quickly
profitable, Kapoor looks for a VP of
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for success, and he finds him in an
experienced drug salesman, Alec
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Berlikoff is laser -focused on making
money.
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And lots of it motivated, he says, by a
traumatic childhood experience.
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When we grew up in Long Island, New
York, and my dad came to us and said,
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out of money.
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We got to go. We got to move to Florida.
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I got to start all over again.
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That's what I'm afraid of. And I
promised myself I would never allow that
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happen.
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And so he signs on with the billionaire
entrepreneur, John Kapoor.
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I thought this was the opportunity of a
lifetime.
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That anyone would want to be in my shoes
and be able to take orders from a man
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who made money.
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Next, meet the Incess sales team.
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This was the kind of person that they
wanted in the company. Someone who would
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willingly use her sexuality to sell.
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More than 10 years into America's opioid
epidemic, Ensis Therapeutics founder
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John Kapoor is looking to turbocharge
sales of the company's powerful new
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opioid, Subsys.
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And in 2013, that high -powered sales
effort makes its way to Corpus Christi,
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Texas. There, for 20 years, Paul Lara
builds a thriving business catching
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shrimp. I bought a big boat.
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Really big, beautiful boat.
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And then I was really catching shrimp.
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I thought I was going to do that the
rest of my life, without a doubt.
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His daughter, Ashley, loves sharing the
life with her dad.
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That was kind of my favorite Saturday
thing.
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You know, we'd have a fun day sailing
and just finding all kinds of creatures
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the box that came out of the waters.
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One day, however, Laura makes a misstep
getting off the boat.
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And I fell and I hit my neck and my
lower back.
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And my life changed completely.
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Seven years later, Lara is still in a
world of pain.
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Oh, my pain was excruciating. I had
already had the back surgery and I was
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in so much pain.
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What he does not know is that his search
for relief will lead him to subsist and
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that it will nearly destroy his life.
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He becomes just one of many caught up in
a scheme cooked up at Incis
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Therapeutics and run by the VP of Sales,
Alec Berlikoff.
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I want to preface, I am not proud of
this. I'm not gloating that not a day
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by where I don't regret what I did. I'm
simply telling the truth because people
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deserve the truth as to what took place.
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And according to Berlikoff, the truth is
that when he goes to work at Insys, he
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believes John Kapoor holds his future in
his hands.
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Unfortunately, I wanted to please him so
badly, and I wanted to...
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I wanted to be successful so badly that
I was willing to do anything and
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everything he asked.
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And what Kapoor wants is to have his
fentanyl spray substance profitable
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he takes into his public.
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According to Berlikoff, the message is
clear.
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All that matters is money.
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And so when Berlikoff hires his sales
team, there is just one question.
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How important is money to you?
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was an interview question.
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And on a scale of 1 to 10, if they
didn't answer 10, they didn't get the
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Where to find the best people?
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Where else?
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A strip club.
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That's where Berlikoff meets Sunrise
Lee, an exotic dancer who knows how to
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close. After one sales meeting, she and
the doctor head to a nightclub where she
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offers him something special.
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A lap dance.
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This was the kind of person that they
wanted in the company, someone who would
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willingly use her sexuality to sell in a
way that wasn't just being a beautiful,
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attractive thing to look at, but in a,
I'm giving lap dances to someone kind of
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way. And they were comfortable with
that.
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With the sales force coming on board,
next, the search is on for doctors.
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Remember, Substance was originally
created to alleviate the pain of cancer
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patients in their final days.
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But that's a limited market, and John
Kapoor wants to move his drug out of
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hospice and into everyday lives.
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So the hunt is on for pain doctors who
will help him expand the use of
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and who are willing to write
prescription after prescription of a
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opioid. There were plenty of bad actors,
people who essentially served as drug
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pushers, whose volumes of
prescription...
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by any rational standard, made no sense.
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One likely candidate is in Chicago.
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When the incest rep pays a visit, she
reports by email that he runs, quote, a
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very shady pill mill and only accepts
cash.
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The response from incest?
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Stick with him.
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If they didn't run away from the pill
mills, they ran to them.
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And they run with an offer.
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to pay the doctors to hold meetings with
fellow doctors to discuss the benefits
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of substance.
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But educating doctors is not the real
purpose of the money, and that is
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out in a candid conversation.
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The candid conversation was, Doctor, we
are willing to pay you in the
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way of a speaker fee. We really don't
care what you do or don't do. All we
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about is...
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The more substance you prescribe, the
more we will pay you to speak.
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Are you okay with that?
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The question is understood to be, are
you okay taking a bribe?
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And the person approving this sales
strategy is John Kapoor.
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You say, okay, if this is what this man
wants and he's a billionaire, he must
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know what he's doing, then I'm going to
do it.
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In any corporate criminal organization,
it's always going to come down to the
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leadership at the top, right? If the
leadership has expectations for you to
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ethical, then you're going to find that
the company is generally ethical. And
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here, the expectations were set and
enforced by Kapoor on a daily basis, and
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they were not ethical. They were the
opposite of that. They were make money,
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period.
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And doctors want to make money, too.
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Across the country, doctors sign up for
the INSYS speaker program and start to
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cash in.
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Mobile, Alabama.
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Saginaw, Michigan.
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Summersworth, New Hampshire.
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Sherwood, Arkansas.
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Derby, Connecticut.
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And Corpus Christi, Texas.
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Their pain management doctor, Judson
Somerville, has paid for 58 subsist
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speaking engagements in just over a
year.
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So more than one a week.
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In, you know, Laredo, Texas and Corpus
Christi, there really weren't even that
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many places or doctors they could speak
to in those areas.
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But who needs doctors?
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Look through the records and see the so
-called speaking engagements are
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expensive meals paid for by incest and
attended most often by Dr. Somerville,
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his staff and the incest rep.
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No one really cared.
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At all. What the programs consisted of.
We hardly cared if they even took place.
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The only thing that people cared about
at instance was if a check was being cut
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to that position, was the physician
prescribing more of the product?
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And Somerville is prescribing.
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In 2013, Intis pays him over $123 ,000,
and he writes 527
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subsist prescriptions, a rate of 10 each
week.
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Some of those go to Paul Lara.
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And when I went to Dr.
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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
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