While federal prosecutors had argued that John Kapoor's vast
wealth made him a flight risk, U.S. Magistrate Judge Jennifer
Boal in Boston said she had seen no evidence that he had any
intention to flee.
Boal said it appeared Kapoor had for years known he was under
investigation, yet never tried to flee the country. India-born
Kapoor, 74, is a naturalized U.S. citizen who has lived in the
United States for over five decades.
Boal said in her four-page ruling that "other than arguing that
Kapoor is wealthy and therefore has the means to flee, the
government has not provided any evidence that Kapoor has any
intent to flee."
Kapoor has pleaded not guilty to charges that he engaged in
conspiracies to commit racketeering, mail fraud and wire fraud.
He stepped down as Insys chief executive officer and chairman in
January but remains its majority shareholder. He had been
subject to the electronic monitoring condition after he was
released on a $1 million bond following his arrest in October.
Prosecutors had cited the Phoenix, Arizona-resident's $2 billion
in assets in arguing the bracelet was a necessary bail
"He's grateful for the ruling and looks forward to fighting the
charges against him," said Brian Kelly, a lawyer for Kapoor at
the law firm Nixon Peabody.
A spokeswoman for Acting U.S. Attorney William Weinreb declined
Kapoor was charged in an indictment that added him as a
defendant in a case initially filed in December 2016 against six
former Insys executives and managers, including ex-Chief
Executive Michael Babich.
The case followed investigations centered on Insys product
Subsys, an under-the-tongue spray that contains fentanyl, a
The indictment said that, beginning in 2012, Kapoor, Babich and
others devised a scheme to pay speaker fees and other bribes to
medical practitioners to prescribe Subsys and to defraud
insurers into approving payment for the product.
Insys said in October it had recorded $150 million as its best
estimate for the minimum amount it would pay to settle the U.S.
Department of Justice probe.
(Reporting by Nate Raymond in Boston, Editing by Rosalba
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