Three More Sentenced In Fake Drugs Conspiracy Trial, UK

Main Category: Litigation / Medical Malpractice
Article Date: 12 Jul 2009 - 1:00 PDT

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The seventh and final member of a multi-million pound international counterfeit gang was sentenced at Kingston Crown Court earlier this week, 6 July 2009.

The 12 month sentence, suspended for two years, concluded a series of trials carried out by the Medicines and Healthcare products Regulatory Agency (MHRA) under the London based investigation Operation Stormgrand.

Alpesh Patel, 42, was prosecuted for masterminding an industrial scale conspiracy of supplying counterfeit medicines between 2002 and 2005 involving millions of pounds worth of fake Viagra, Cialis and Propecia.

Operation Stormgrand has also led to convictions totalling 17.5 years imprisonment and confiscation orders to the sum of £3,074,242.

The 2005 MHRA investigation unravelled the largest ever scam of counterfeit medicines in the UK with more than £1.5 million of fake drugs seized during the operation.

The London Regional Assets Recovery Team (RART) carried out the financial investigation alongside the MHRA who traced a complex network of individuals, companies and bank accounts that facilitated the movements of these drugs.

The gang were part of the UK distribution arm of a global ring operating from China, India and Pakistan, extending to the Caribbean and the USA.

MHRA Head of Enforcement, Mick Deats, said the successful prosecutions send a clear signal to those contemplating supplying counterfeit medicines.

"We will continue to use every power at our disposal to prosecute those engaged in this illicit activity and confiscate the proceeds of their crimes.

"The public are strongly advised to avoid buying medicines online where the risk of being provided with a counterfeit is greatly increased."

London RART, DCI Nick Downing said, "This conviction concluded an extensive joint investigation that has seen more than £3 million worth of assets confiscated and members of the criminal network sentenced to more than 17 years imprisonment.

"This operation demonstrates the full power of the Proceeds of Crime Act and reinforces our commitment in combating this serious criminality."

Notes

1. In the autumn of 2002, counterfeit Viagra was seized by HM Revenue & Customs (HMRC) at Stansted airport. This was followed by a number of other seizures at Stansted and Heathrow airports where false descriptions for a variety of products e.g. 'Vitamins C & E', 'Calcium for Kids' and 'Samples of Mineral Supplements for Dogs' were used. The counterfeit medicines were filtered through licensed wholesalers to pharmacies in the UK and through internet sites operating both in the UK and overseas. In 2004, counterfeit Cialis made its way into the regulated supply chain reaching patient level, this lead to a recall of that product from the UK market.

2. The London Regional Asset Recovery Team (RART) is based within the Economic and Specialist Crime Command (SCD6). It comprises of detectives and staff from the Metropolitan Police Service (MPS), HMRC, the Serious Organised Crime Agency (SOCA) and the Crown Prosecution Service (CPS). The team's work involves recovering funds gained through criminal activity and putting it back into the community through policing activities and community projects.

3. Where compensation is to be paid from confiscations, compensation will always have priority. In normal confiscation cases, the first 50 per cent goes to the Home Office and is used for a variety of things including funding of the RARTs. Of the remaining 50 per cent:

- 37.5 per cent goes to the Local Enforcement Authority (LEA) conducting the investigation i.e. police, Local Authority (LA) etc.
- 37.5 per cent goes to the prosecution i.e. CPS, LA etc.
- 25 per cent goes to the enforcement agency i.e. HM Court Service (HMCS), SOCA, CPS etc.

4. Further information about Operation Stormgrand can be found at the following MHRA website links:
Press release: "King of Viagra" is sentenced to 3 years imprisonment for supplying counterfeit medicines
Press release: Counterfeit medicines gang convicted in Operation Stormgrand
Press release: Three more sentenced in fake drugs conspiracy trial

5. To report a counterfeit medicine or device, please contact the MHRA:

Dedicated 24 hour hotline: 020 7084 2701
E-mail: counterfeit@mhra.gsi.gov.uk
Write to: Counterfeits, The Intelligence Unit, MHRA, Market Towers,
1 Nine Elms Lane, London, SW8 5NQ.

6. Further information about how the MHRA tackles counterfeit medicines and devices can be found at the following MHRA website link:

Counterfeit medicines and devices

7. If an individual is convicted of offences under the Medicines Act 1968 they can be sentenced to a maximum of two years imprisonment and/or an unlimited fine. Where appropriate the MHRA will use the Proceeds of Crime Act 2002 to determine whether or not benefits were accrued through criminal activity, and will recoup illicit earnings if the individual is found guilty.

8. The MHRA is the government agency responsible for ensuring that medicines and medical devices work, and are acceptably safe. No product is risk-free. Underpinning all our work lie robust and fact-based judgements to ensure that the benefits to patients and the public justify the risks. We keep watch over medicines and devices, and take any necessary action to protect the public promptly if there is a problem. We encourage everyone - the public and healthcare professionals as well as the industry - to tell us about any problems with a medicine or medical device, so that we can investigate and take any necessary action.

Source
MHRA