Insys Founder Must Return $5.9 Million Paid For Criminal Defense

Insys Therapeutics Inc. founder John Kapoor, convicted in 2019 of racketeering conspiracy, has been ordered to return the nearly six million dollars the now-bankrupt company advanced to him for his criminal defense.

Judge Gregory B. Williams, for the US District Court for the District of Delaware, entered the final judgment favor of liquidating trustee William Heinrich Tuesday, rejecting Kapoor’s objections to the bankruptcy court’s opinion recommending that he be ordered repay the advances.

The company’s bylaws required Insys to advance expenses to a director or officer for legal proceedings to which the director or officer was a party due ...