Federal Indictment Against NJ Doctor Collapses in Stunning DOJ Reversal, as Obtained by Health Law Alliance

Prosecutors Dismiss All Charges in Nation's Last-Remaining Insys Prosecution

SHORT HILLS, N.J., May 20, 2025 /PRNewswire/ -- The U.S. Department of Justice has dismissed all federal criminal charges against prominent New Jersey urologist Dr. Mukaram Gazi, who had been charged with accepting more than $130,000 in bribes from Insys Therapeutics in exchange for prescribing Subsys, a fentanyl-based medication, and unlawful distribution of controlled substances, including Adderall.

The four-count indictment, which was part of a broader federal and state initiative targeting opioid-related misconduct, was dismissed in its entirety, with no plea agreement, no financial penalties, and no admission of guilt. All charges were dropped, including healthcare fraud, anti-kickback violations, and violations of the Controlled Substances Act. 

As a result of the dismissal, Dr. Gazi is the only individual among 35 individuals prosecuted for Insys-related offenses since 2014 to be exonerated. The victory was secured by Anthony Mahajan, a former federal prosecutor and now the founding partner of Health Law Alliance, a boutique law firm that specializes in defending healthcare professionals in complex civil, regulatory, and criminal matters.

"This type of outcome is uncommon in federal healthcare prosecutions," noted a legal observer familiar with criminal cases involving medical professionals.

The indictment, announced in November 2021, connected Dr. Gazi to Insys, whose executives, including founder John Kapoor, were convicted for unlawfully promoting Subsys for use in patients outside the FDA-approved label. However, the evidence in the case ultimately failed to support the accusations against Dr. Gazi, prompting federal prosecutors to dismiss the case shortly before trial.

Dr. Gazi's defense relied, in part, on the authority given physicians under the law to prescribe drugs "off label" for the advancement of medicine and patient care. The law also permits doctors to be compensated appropriately by pharmaceutical and medical device companies for participating in "speaker programs" and other educational activities.

The dismissal underscores the importance of prosecutorial restraint in complex medical cases, particularly where criminal prosecution may chill lawful behavior and inhibit patient care.

For more information, contact Health Law Alliance at (800) 345-4125 or [email protected].

SOURCE Health Law Alliance