Opioid Executive John Kapoor Found Guilty In Landmark Bribery Case

A jury in Boston has found one-time billionaire and drug company executive John Kapoor and his four co-defendants guilty of a racketeering conspiracy. The verdict came Wednesday after 15 days of deliberation.

The federal government accused Kapoor, the founder of Insys Therapeutics, and his co-defendants of running a nationwide bribery scheme. Between 2012 and 2015, Insys allegedly paid doctors to prescribe their potent opioid medication and then lied to insurance companies to ensure the expensive fentanyl-based painkiller was covered.

Kapoor is among the highest-ranking pharmaceutical executives to face trial amid a national opioid epidemic. By pursuing this case, the federal government was seen as sending a message that it is holding drug companies accountable for their role in the epidemic. read more »

PG&E Says S.E.C. Is Investigating Its Wildfire Disclosures

The Securities and Exchange Commission has opened an investigation into Pacific Gas and Electric’s accounting for its losses related to three years of wildfires in Northern California, the utility reported to shareholders Thursday.

PG&E told investors that it learned in March that investigators from the S.E.C.’s San Francisco regional office had begun the review of public disclosures and accounting by the utility and its parent corporation for the 2015 Butte Fire as well as wildfires in 2017 and 2018. The fires killed scores of people, and the Camp Fire, which destroyed the town of Paradise last year, was the most destructive wildfire in California history. read more »

NASA Says Two of Its Rockets Failed Because of Metals Fraud

According to the agency, a contractor lied about the quality of its metals for years, causing two failed rocket launches.

Sapa Profiles was contracted to manufacture parts for the fairings on two NASA satellite launches—the one in 2009 and another failed launch in 2011. These parts needed to be made of a highly specific aluminum alloy that met rigorous standards for strength and durability, and according to a recent court plea, the company did not do that. Instead, employees at the company faked test results and lied to NASA and other clients.

The end result is that hundreds of parts sent to customers were defective, causing untold billions in damage. The cost of the two failed NASA launches alone was approximately $700 million, and other defrauded clients included the Department of Defense and hundreds of commercial clients. read more »