Eipg

In March and May 2003, UK Revenue & Customs
seized some shipments of vitamins C + E. The
shipments were in fact counterfeit Viagra.
A counterfeit medicine is one which is deliberatelyand fraudulently mislabeled with respect to identity Acting on intelligence received from Revenue & and/or source. Counterfeiting can apply to both Customs, MHRA officers conducted raids on two branded and generic products and counterfeit addresses where 150,000 counterfeit Viagra tablets were products may include products with correct seized along with information leaflets, a pot-sealing ingredients, wrong ingredients, without active machine and paperwork. Counterfeit Propecia, labels ingredients, with insufficient quantity of active ingredient or with fake packaging. A large number of the pots of Viagra were labelled as either Fish Protein and Mineral Supplements for Dogs or
Vitamin tablets (Figure 1).
The main individual, Gary Haywood, then fled the UK and went to Costa Rica; he claimed that the Triads were The WHO estimate that up to 1% of medicine is Counterfeit medicine is more commonly
available through the unregulated supply chain,usually the Internet.
From paperwork found at both addresses it wasestablished that invoices connected Haywood to a Less frequently, but more worryingly, it is
company in the UK, Stormgrand. This was an unlicensed sometimes available through the regulated pharmaceutical wholesaler operated by Ashish Halai supply chain via wholesalers, distributors and whose wife, Nena, ran a pharmacy called Nashi pharmacies to patients Figure 2.
Counterfeit medicines available in the developed
world include ‘lifestyle’ and ‘lifesaving’ medicines Hayward was also connected to companies in Sweden, from conditions such as erectile dysfunction and three companies in the Bahamas and wholesaling weight loss to cancer and heart medicines.
Visual examination alone often fails to identify
The paperwork also indicated a storage site not known to the investigators. This was searched and from dustpatterns on the floor it was established that two large There have been thousands of known fatalities
pallets had been recently moved. At this point the case exploded and become enormously complicated.
Counterfeits are dangerous and undermine
Further wholesalers were discovered and a company inNorway.
of the main suppliers of Viagra to three companies in The Norwegian company was contacted by investigators the Bahamas. Global Metz, JTR Associates (McCoy working for Pfizer and resulted in an under cover Borthers) and Betco Ltd (Robert Moffat).
meeting to buy 21,000 Viagra tables. The MHRA seizedthe tablets at the same scene.
It was then found that Halai also supplied MetroPharmacy, owned by Rajendra Shah, and LPC Haywood used a number of his own companies to Pharmaceuticals. He also supplied three companies in Sweden, Planet Pharma, EcoWest and Crosstrading.
Gary J Haywood Pharmaceuticals Supplies
Gary J Haywood Medical Supplies Pty
Haywood and Co Ltd
The Robert Moffat of Betco operated a bonded warehousein the Bahamas. He has since been arrested, indicted and Lancaster House Ltd
imprisoned by the US authorities. Moffat informed the In addition Stormgrand’s Ashish Halai was involved in a authorities in 2004 that a Nick Malis had put out a contract company called Farmacia del Mundo and was also one on the life of Halai. Nick Malis was subsequently arrested.
european INDUSTRIAL PHARMACY Issue 1 October 2008
OPERATION STORMGRAND (Cont.)
Manufacturer
Trader/broker
Regulated
Unregulated
Wholesaler
Website operator
Grey market
Lifestyle products
Pharmacy
Internet site
Figure 1. Pot containing counterfeit Viagra.
He was operating a company called One Source inDallas, Texas. Figure 2. How counterfeit medicines are distributed.
As a result of information passed to the US a total of 11individuals were arrested and prosecuted. Over 20 “Operation Ocean Crossing” resulted in raids in 5 websites have been closed down and assets involving locations in Tianjin City and Henan province. Huge several millions of dollars have been restrained and amounts of equipment were seized, in addition to 600,000 counterfeit Viagra, 440,000 counterfeit Cialisand 260kg of bulk raw material. Eleven Chinesenationals were arrested.
Further developmentsIn the summer of 2004, counterfeit Cialis and Reductil Cowley was charged with Misbranding and Counterfeiting, tablets were discovered in the UK supply chain. This was sentenced to two years imprisonment and a substantial initially investigated as a case on its own. However, by following the audit trail it quickly became apparent thatit was intricately linked to Stormgrand. Many of the same names were cropping up time and time again. The As a result of Operation Stormgrand in the UK, a total of investigation was therefore merged with Stormgrand nine defendants were charged with conspiracy, at Kingston Crown Court in Surrey. Ashish Halai, pleaded Following the arrests in the US some of the arrested guilty at start of trial and was sentenced to 41⁄2 years in individuals decided to co-operate with Immigration prison; Nena Halai, pleaded guilty and received 80 Customs Enforcement (ICE), which let to the main hours community service; Gary Haywood was sentenced defendant in the US, Richard Cowley, being charged with to 6 years after an 8-month trial; Ashwin Patel was the counterfeiting of Viagra, Cialis and Lipitor.
sentenced to 18 months imprisonment; Zahid Mirza fledthe UK after being found guilty – he was sentenced to 21⁄2 Whilst this was ongoing the UK suffered its 3rd counterfeit case within the space of 12 months, this timeit was Lipitor.
Thus, one chance detection by Customs in 2003 and thefollowing investigation by the MHRA, led to intelligencebeing passed to overseas counterparts that eventually reached 39 countries worldwide. Industry estimates Cowley’s home PC was seized and analysis revealed place the total number of individuals arrested as a result details of contacts in China. As a result, ICE field office agents assisted officials of the ministry of Public Security(MPS) and the Public Security Bureau in China to Based on information provided by the Operations, determine the source of counterfeits.
Enforcement and Intelligence Group of the MHRA european INDUSTRIAL PHARMACY Issue 1 October 2008

Source: http://eipg.eu/wp-content/uploads/2013/11/EIP1-Oct08-P16.pdf

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