Anthony Mahajan Obtains Dismissal of All Charges Involving Speaker Program Kickbacks and Violations of the Controlled Substances Act

In a dramatic and virtually unprecedented move, the U.S. Department of Justice has dismissed its entire criminal case against New Jersey urologist Dr. Mukaram Gazi, who had faced federal charges for allegedly accepting more than $130,000 in bribes from Insys Therapeutics for "sham" speaker program engagements and for unlawful drug distribution of fentanyl and Adderall, Schedule II controlled substances.

The four-count indictment—once part of a national crackdown on opioid-related misconduct—was dismissed by the court in full, with no plea deal, no fine, and no admission of guilt. All charges were dropped, including Anti-Kickback Statute violations, healthcare fraud, conspiracy to defraud the United States, and violations of the Controlled Substances Act.

With this sweeping dismissal, Dr. Gazi stands alone as the only individual in the Nation indicted over Insys-related charges to defeat the case entirely and emerge fully exonerated. Since 2014, thirty-five (35) individuals, including Insys’ founder John Kapoor, have been prosecuted for their roles in various Subsys-related schemes, with some receiving sentences of over 20 years. Even the Company itself was convicted for marketing Subsys "off label" for non-cancer pain.

The victory was secured by Anthony Mahajan, a former federal prosecutor and now founding partner of Health Law Alliance, a national healthcare law firm based in Short Hills, New Jersey.

“This is the type of outcome you almost never see,” said one legal observer familiar with federal healthcare prosecutions. “Once the DOJ indicts, especially in the District of New Jersey, dismissals just don’t happen.”

The case against Dr. Gazi had been announced with fanfare in November 2021, linking him to the now-defunct Insys Therapeutics—the pharmaceutical company whose executives were convicted in one of the most high-profile opioid prosecutions in U.S. history. Central to Dr. Gazi’s defense, however, was that the law permits, and even encourages, physicians to prescribe medication “off-label” for the advancement of medicine. Similarly, the law permits physicians to receive compensation from drug manufacturers to promote their products, typically referred to as “speaker program” fees.

Health Law Alliance has positioned itself at the forefront of defending healthcare professionals in high-stakes legal battles. The firm’s decisive handling of this case suggests that, despite the public condemnation of fentanyl, physicians should not be intimidated against prescribing the medication that they deem most suitable for their patients. Health Law Alliance will defend physicians' well-earned professional expertise and judgment against challenge by government regulators.

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Frequently Asked Questions

Q: What was the outcome of the federal indictment against Dr. Mukaram Gazi?

A: Dr. Mukaram Gazi, a New Jersey urologist, had all federal charges against him dismissed by the U.S. Department of Justice. The dismissal included allegations of Anti-Kickback Statute violations, healthcare fraud, conspiracy to defraud the U.S., and unlawful Adderall distribution. Health Law Alliance successfully secured a complete dismissal with no plea deal, no fine, and no admission of guilt.

Q: Why was Dr. Gazi facing federal charges related to Subsys?

A: Dr. Gazi was accused of accepting payments from Insys Therapeutics to prescribe Subsys, a fentanyl-based spray. The DOJ alleged that these payments were illegal kickbacks, but Health Law Alliance argued that such payments were permissible under speaker program arrangements commonly used in the pharmaceutical industry.

Q: What makes the dismissal of Dr. Gazi’s case significant?

A: The dismissal of Dr. Gazi’s case is highly unusual, particularly given the DOJ’s aggressive stance against opioid-related misconduct and fentanyl in particular. He is the only person out of 35 charged in Subsys-related cases to be acquitted.

Q: How does Health Law Alliance approach Medicare fraud and kickback defense?

A: Health Law Alliance employs a strategic, evidence-based defense, focusing on legal precedents and the proper interpretation of federal statutes like the Anti-Kickback Statute. In Dr. Gazi’s case, the firm emphasized that the law permits off-label prescribing and speaker program payments when conducted within legal boundaries.

Q: What was Insys Therapeutics accused of in relation to Subsys?

A: Insys Therapeutics was implicated in a nationwide opioid kickback scheme involving Subsys, a fentanyl-based spray approved for cancer pain. The company’s executives, including founder John Kapoor, were convicted of marketing the drug for off-label uses. However, Health Law Alliance successfully demonstrated that Dr. Gazi’s actions fell within legal boundaries for off-label prescribing and speaker fees.

Q: How can healthcare providers facing similar charges contact Health Law Alliance?

A: Healthcare professionals facing allegations of healthcare fraud, Medicare audits, or kickback violations can contact Health Law Alliance for a consultation. The firm specializes in defending physicians and healthcare organizations in complex federal cases. Visit [Website URL] or call [Phone Number] for more information.